FRBK Republic First Bancorp Inc

PHILADELPHIA, Oct. 20 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for Republic First Bank (PA), today reported third quarter 2005 earnings from continuing operations of $2,143,000 or $0.24 per diluted share. That compares with $2,555,000 or $0.30* for the same period last year which included $1.3 million of one-time income. Earnings from continuing operations for the nine-month period ended September 30, 2005 were $6,299,000 or $0.72 per diluted share, compared to $3,984,000 or $.47 per diluted share for the comparable prior year period. The improvement in 2005 earnings reflects significant growth in commercial loans and core deposits and the payoff of the high priced Federal Home Loan Bank borrowings. Average loans grew in excess of 20% for the third quarter 2005 compared to the comparable prior year period. Total assets at September 30, 2005 were $820,517,000 compared to $662,710,000 as of September 30, 2004. Total shareholders' equity stood at $60,834,000 with a book value per share of $7.17 at September 30, 2005. The Company remains well capitalized. Chairman Madonna stated: "Management and the Board are very pleased with the improvement in earnings and we believe the Bank is well situated to continue to increase profitability." 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. The Company may from time to time make written or oral "forward-looking statements," including statements contained 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. * Per share value amounts were restated to reflect the 12% stock dividend paid June 7, 2005. Republic First Bancorp, Inc. Condensed Income Statement (Dollar amounts in thousands except per share data) (unaudited) Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 Net Interest Income $7,256 $4,516 $21,385 $12,866 Provision for Loan Losses 314 (1,363)(1) 1,136 (863)(1) Other Income 903 1,984 (1) 2,805 3,418 (1) Other Expenses 4,602 4,047 13,613 11,243 Income Taxes 1,100 1,261 3,142 1,920 Net Income From Continuing Operations 2,143 2,555 6,299 3,984 Net Income From Discontinued Operations, Net of Tax - 503 - 2,266 Net Income $2,143 $3,058 $6,299 $6,250 Diluted EPS From Continuing Operations $0.24 $0.30 (3)(1) $0.72 $0.47 (3)(1) Diluted EPS From Discontinued Operations, Net of Tax - 0.06 - 0.27 Diluted EPS $0.24 $0.36 (3)(1) $0.72 $0.74 (3)(1) Republic First Bancorp, Inc. Condensed Balance Sheet (Dollar amounts in thousands) (unaudited) Assets September 30, September 30, 2005 2004 (2) Federal Funds Sold and Other Interest Bearing Cash $66,413 $50,508 Investment Securities 66,097 52,752 Commercial and Other Loans 645,613 517,532 Allowance for Loan Losses (7,401) (7,048) Other Assets 49,795 48,966 Total Assets $820,517 $662,710 Liabilities and Shareholders' Equity: Transaction Accounts $357,081 $313,750 Time Deposit Accounts 228,162 181,765 FHLB Advances and Trust Preferred Securities 166,999 106,186 Other Liabilities 7,441 8,688 Shareholders' Equity 60,834 52,321 Total Liabilities and Shareholders' Equity 820,517 $662,710 (1) Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery. (2) Prior year has been adjusted to exclude the First Bank of Delaware balance sheet, reflecting the spin-off of that bank effective January 1, 2005. (3) Prior year earnings per share has been restated for the 12% stock dividend paid June 7, 2005. Republic First Bancorp, Inc. September 30, 2005 (unaudited) At or For the At or For the Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, Financial Data: 2005 2004 (1) 2005 2004 (1) Return on average assets on continuing operations 1.19% 1.57%(2) 1.18% 0.82%(2) Return on average equity on continuing operations 14.24% 19.88%(2) 14.71% 10.59%(2) Share information: Book value per share $7.17 $6.45 $7.17 $6.45 Shares o/s at period end, net of Treasury shares 8,479,000 8,112,150 8,479,000 8,112,150 Average diluted shares o/s 8,770,000 8,519,000 8,706,000 8,455,000 (1) Prior year amounts have been adjusted for the spin-off of First Bank of Delaware effective January 1, 2005. (2) Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery. Republic First Bancorp, Inc. Press release 09/30/2005 (Dollars in thousands) (unaudited) Credit Quality Ratios: September 30 September 30 2005 2004 (1) Non-accrual and loans accruing, but past due 90 days or more $2,872 $7,167 Restructured loans - - Total non-performing loans 2,872 7,167 OREO 137 207 Total non-performing assets $3,009 $7,374 Non-performing loans as a percentage of total loans 0.44% 1.38% Nonperforming assets as a percentage of total assets 0.37% 1.11% Allowance for loan losses to total loans 1.15% 1.36% Allowance for loan losses to total non-performing loans 257.69% 98.34% (1) Prior year has been adjusted to exclude the First Bank of Delaware loans, reflecting the spin-off of that bank effective January 1, 2005. Republic First Bancorp, Inc. Press release 09/30/2005 (Dollars in thousands ) (unaudited) Quarter-to-Date Average Balance Sheet Three months ended Three months ended September 30, 2005 September 30, 2004 (1) Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $604,531 $10,576 6.94 % $501,189 $7,621 6.03 % Investment securities 48,752 464 3.81 57,479 482 3.35 Federal funds sold 20,952 192 3.64 37,604 139 1.47 Total interest- earning assets 674,235 11,232 6.61 596,272 8,242 5.48 Other assets 39,460 50,569 Total assets $713,695 $11,232 $646,841 $8,242 Interest-bearing liabilities: Interest-bearing deposits $485,512 $3,219 2.63 % $380,038 $1,824 1.90 % Borrowed funds 74,441 757 4.03 120,648 1,902 6.25 Interest-bearing liabilities 559,953 3,976 2.82 500,686 3,726 2.95 Non-interest and interest-bearing funding 645,967 3,976 2.44 588,997 3,726 2.51 Other liabilities: 8,022 6,854 Total liabilities 653,989 595,851 Shareholders' equity 59,706 50,990 Total liabilities & shareholders' equity $713,695 $646,841 Net interest income $7,256 $4,516 Net interest margin 4.32 % 3.04 % (1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin-off of that bank effective January 1, 2005. Republic First Bancorp, Inc. Press release 09/30/2005 (Dollars in thousands ) (unaudited) Year-to-Date Average Balance Sheet Nine months ended Nine months ended September 30, 2005 September 30, 2004 (1) Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $583,033 $30,347 6.96 % $484,338 $22,332 6.16 % Investment securities 47,526 1,350 3.79 63,254 1,558 3.28 Federal funds sold 41,885 863 2.75 57,524 501 1.16 Total interest- earning assets 672,444 32,560 6.47 605,116 24,391 5.39 Other assets 41,205 41,427 Total assets $713,649 $32,560 $646,543 $24,391 Interest-bearing liabilities: Interest-bearing deposits $492,758 $9,236 2.51 % $367,299 $5,486 2.00 % Borrowed funds 67,167 1,939 3.86 136,545 6,039 5.91 Interest-bearing liabilities 559,925 11,175 2.67 503,844 11,525 3.06 Non-interest and interest-bearing funding 648,151 11,175 2.31 587,505 11,525 2.62 Other liabilities: 8,229 8,729 Total liabilities 656,380 596,234 Shareholders' equity 57,269 50,309 Total liabilities & shareholders' equity $713,649 $646,543 Net interest income $21,385 $12,866 Net interest margin 4.25 % 2.84 % (1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin-off of that bank effective January 1, 2005. DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO, Republic First Bancorp, +1-215-735-4422 ext. 5255

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