EX-99.1 2 ex99-1.htm EXHIBIT 99.1 Exhibit 99.1
NEWS RELEASE
FOR RELEASE IMMEDIATELY
Contact: Paul Frenkiel, CFO
(215) 735-4422 ext. 5255

REPUBLIC FIRST BANCORP, INC.
REPORTS FIRST QUARTER EARNINGS

Philadelphia, PA, April 25, 2007 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported first quarter 2007 earnings of $2.1 million or $.20 per diluted share, compared to $2.7 million or $.25* per diluted share for the same quarter in 2006.

The $.05 per diluted share reduction in first quarter 2007 earnings reflected a $.03 reduction from lower non-interest income, a $.02 reduction from lower net interest income (excluding the tax refund program) and a $.01 reduction from the tax refund program. These items were partially offset by the $.01 impact of reduced non-interest expenses, which was achieved despite the addition of two new branches in 2006. The $.03 non interest income reduction reflected $.02 for lower loan advisory fees, the timing of which is irregular, and a $.01 reduction in service fees on deposit accounts.
 
Average loans outstanding increased 14% in first quarter 2007 compared to first quarter 2006. Consistent with the Bank’s strategic plan, we will continue our business development efforts to increase lower cost core deposits, and generate other sources of non interest income. Loan demand continues to be strong, and as noted, core deposit growth will be emphasized in 2007, as the primary drivers to increasing income. Transaction accounts at March 31, 2007 increased 19% from the balance at March 31, 2006.

Included in first quarter 2007 were non-interest expenses of approximately $258,000, or $.02 per share, which were applicable to the Northeast Philadelphia and Voorhees branches opened in the second and third quarters of 2006, respectively.

Total non-performing loans were $9.1 million at March 31, 2007, an increase of $2.2 million or 31%, from the balance at December 31, 2006. The increase was due primarily to the transfer of one loan to non- accrual status in the first quarter of 2007. The impact on first quarter 2007 earnings due to this transfer was minimal. Management believes the Bank has sufficient collateral to cover the non-performing assets so that the Bank should not experience any significant losses from such loans. In addition, we believe the allowance for loan losses is adequate to absorb any potential losses in these loans and the balance of the portfolio. Accordingly, no additional provisions were made in first quarter 2007.

Harry Madonna, Chairman and Chief Executive Officer, stated, “Core deposit growth represents a significant challenge to community banks, and our efforts are focused on returning to previous years’ growth rates in this area.”

Total shareholders’ equity stood at $76.9 million with a book value per share of $7.36 at March 31, 2007, based on outstanding common shares of approximately 10.4 million. The Company continues to be well capitalized.

Republic First Bank (PA) is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its eleven offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, Media and Philadelphia, Pennsylvania and Voorhees, New Jersey.

The Company may from time to time make written or oral “forward-looking statements”, including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. The words “may”, “could”, “should”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, and similar expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
 
# # #

* Prior year earnings per share amounts were restated to reflect the 10% stock dividend paid April 17, 2007.
 
 
 

           
Republic First Bancorp, Inc.
Condensed Income Statement
(Dollar amounts in thousands
except per share data)
(unaudited)
           
   
Three Months Ended
March 31
  
   
2007
  
2006
  
           
Net Interest Income
 
$
7,565
  
$
9,309
  
Provision for Loan Losses
   
80
   
1,313
 
Non-interest Income
   
640
   
1,115
 
Non-interest Expenses
   
4,995
   
5,041
 
Provision for income taxes
   
1,026
   
1,399
 
Net Income
 
$
2,104
  
$
2,671
  
               
Diluted EPS
 
$
0.20
  
$
0.25
  (1)
               
Republic First Bancorp, Inc.
             
Condensed Balance Sheet
             
(Dollar amounts in thousands)
             
(unaudited)
             
     
 
 
 
 
 
Assets
 
 
March 31,
 
 
March 31,
 
 
 
 
2007
 
 
2006
 
               
Federal Funds Sold and Other Interest Bearing Cash
 
$
27,138
  
$
79,612
  
Investment Securities
   
109,518
   
42,076
 
Commercial and Other Loans
   
832,442
   
701,910
 
Allowance for Loan Losses
   
(8,355
)
  
(7,803
)
Other Assets
   
46,277
   
48,374
 
 
              
Total Assets
 
$
1,007,020
  
$
864,169
  
 
              
Liabilities and Shareholders' Equity:
             
Transaction Accounts
 
$
457,903
  
$
384,103
  
Time Deposit Accounts
   
356,225
   
290,761
 
FHLB Advances and Trust Preferred Securities
   
102,982
   
111,186
 
Other Liabilities
   
12,984
   
11,191
 
Shareholders' Equity
   
76,926
   
66,928
 
Total Liabilities and Shareholders' Equity
 
$
1,007,020
  
$
864,169
  
 
              
(1) Prior year earnings per share has been restated for the 10% stock dividend paid April 17, 2007.
 
 
 
 
 

Republic First Bancorp, Inc.
              
March 31, 2007
              
(unaudited)
              
 
              
 
  
At or For the
      
   
Three Months Ended
      
 
  
March 31,
  
March 31,
      
Financial Data:
  
2007
  
2006
      
 
              
Return on average assets
    
0.88
%
  
1.33
%
      
 
                    
Return on average equity
    
11.26
%
  
16.63
%
      
 
                    
Share information:
                    
 
                    
Book value per share
  
$
7.36
  
$
6.41
  (1)
 
                    
Actual shares outstanding at period end, net of
                    
   treasury shares (275,611)
    
10,446,000
   
10,439,000
 (1)
 
                    
Average diluted shares outstanding
    
10,758,000
   
10,605,000
 (1)
 
                    
 
                    
(1) Prior year share information has been restated for the 10% stock dividend paid April 17, 2007.
                     
 
 
 
 
 

Republic First Bancorp, Inc.
          
March 31, 2007
          
(Dollars in thousands)
          
(unaudited)
          
           
Credit Quality Ratios:
          
   
March 31,
 
March 31,
 
 
 
2007
 
2006
  
           
Non-accrual and loans accruing,
          
but past due 90 days or more
  
$
9,089
  
$
3,556
  
               
Restructured loans
    
-
   
-
 
               
Total non-performing loans
    
9,089
   
3,556
 
               
Other real estate owned
    
572
   
137
 
               
Total non-performing assets
  
$
9,661
  
$
3,693
  
               
Non-performing loans as
              
a percentage of total loans
    
1.09
%
  
0.51
%
               
Nonperforming assets as
              
a percentage of total assets
    
0.96
%
  
0.43
%
               
Allowance for loan losses
              
to total loans
    
1.00
%
  
1.11
%
               
Allowance for loan losses
              
to total non-performing loans
    
91.92
%
  
219.43
%
               
 
 
 

Republic First Bancorp, Inc.
                          
March 31, 2007
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Quarter-to-Date
 
 
 
 
 
 
 
Average Balance Sheet
      
                           
   
Three months ended
 
Three months ended
 
 
 
March 31, 2007
 
March 31, 2006
  
                           
   
 
 
 
 
Average
 
 
 
 
 
Average
 
Interest-Earning Assets:
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest
 
Cost
 
Balance
 
Interest
 
Cost
  
                           
                           
Commercial and other loans
 
$
798,716
  
$
15,300
    
7.77
%    
$
700,896
  
$
14,154
    
8.19
%
                                       
Investment securities
    
109,568
   
1,542
   
5.63
    
41,663
   
509
   
4.89
  
                                       
Federal funds sold
    
19,767
   
235
   
4.82
    
36,130
   
400
   
4.49
  
                                       
Total interest-earning assets
    
928,051
   
17,077
   
7.46
    
778,689
   
15,063
   
7.85
  
                                       
Other assets
    
37,416
               
37,689
             
                                       
Total assets
  
$
965,467
  
$
17,077
        
$
816,378
  
$
15,063
        
                                       
Interest-Bearing Liabilities:
                                      
                                       
                                       
Interest-bearing deposits
  
$
642,386
  
$
7,393
    
4.67
%
$
618,525
  
$
5,264
    
3.45
%
                                       
Borrowed funds
    
155,348
   
2,119
   
5.53
    
36,932
   
490
   
5.38
  
                                       
                                       
Interest-bearing liabilities
    
797,734
   
9,512
   
4.84
    
655,457
   
5,754
   
3.56
  
                                       
Non-interest and
                                     
interest-bearing funding
    
875,553
   
9,512
   
4.41
    
741,533
   
5,754
   
3.15
  
                                       
                                       
Other liabilities:
    
14,118
               
9,701
             
                                       
Total liabilities
    
889,671
               
751,234
             
                                       
Shareholders' equity
    
75,796
               
65,144
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
965,467
              
$
816,378
              
                                       
Net interest income
        
$
7,565
              
$
9,309
        
                                       
Net interest margin
                
3.31
%
              
4.85
%