FRBK Republic First Bancorp Inc

PHILADELPHIA, July 17 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. (NASDAQ:FRBK) (the "Company"), the holding company for Republic First Bank (PA), today reported second quarter 2006 earnings of $2.5 million or $.26 per diluted share, a 24% increase over the same quarter in 2005. Earnings for the six month period ending June 30, 2006 were $5.2 million or $.54* per diluted share, compared to $4.2 million or $.43* per diluted share, a 25% increase over the comparable prior year period. The improvement in 2006 earnings reflected commercial loan and deposit growth. Average loans grew in excess of 21% in second quarter 2006 compared to the second quarter of 2005. President Harry Madonna stated, "We are very pleased with the continuing improvement in earnings of the Company and look forward to continued growth. Earnings growth was due to the significant increase in commercial loans outstanding, and the increase in the spread between the interest income and the cost of funds. We anticipate continued improvement in all areas of the Company. We look forward to future earnings in excess of our peer group, and further increasing shareholder value." Total shareholders' equity stood at $69.4 million with a book value per share of $7.31* at June 30, 2006, based on outstanding common shares of approximately 9.5 million. As of that date, the Company continued 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 ten 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 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. * Per share and book value amounts were restated to reflect the 12% stock dividend paid June 7, 2005 and the 10% stock dividend paid May 17, 2006. Republic First Bancorp, Inc. Condensed Income Statement (Dollar amounts in thousands except per share data) (unaudited) Three Months Ended Six Months Ended June 30 June 30 2006 2005 (1) 2006 (1) 2005 (1) Net Interest Income $8,186 $6,931 $17,495 $14,129 Provision for Loan Losses 61 119 1,374 822 Non-interest Income 844 759 1,959 1,902 Non-interest Expenses 5,122 4,540 10,163 9,011 Provision for income taxes 1,320 997 2,719 2,042 Net Income $2,527 $2,034 $5,198 $4,156 Diluted EPS $0.26 $0.21 $0.54 $0.43 Republic First Bancorp, Inc. Condensed Balance Sheet (Dollar amounts in thousands) (unaudited) Assets June 30, June 30, 2006 2005 Federal Funds Sold and Other Interest Bearing Cash $37,776 $81,978 Investment Securities 45,305 47,843 Commercial and Other Loans 740,577 600,813 Allowance for Loan Losses (7,756) (6,996) Other Assets 45,846 57,887 Total Assets $861,748 $781,525 Liabilities and Shareholders' Equity: Transaction Accounts $380,357 $424,340 Time Deposit Accounts 264,384 151,036 FHLB Advances and Trust Preferred Securities 138,443 140,842 Other Liabilities 9,195 6,671 Shareholders' Equity 69,369 58,636 Total Liabilities and Shareholders' Equity $861,748 $781,525 (1) EPS has been restated for the 12% stock dividend paid June 7, 2005 and the 10% stock dividend paid May 17, 2006. Republic First Bancorp, Inc. June 30, 2006 (unaudited) At or For the At or For the Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Financial Data: 2006 2005 2006 2005 Return on average assets 1.27 % 1.18 % 1.30 % 1.17 % Return on average equity 14.87 % 14.26 % 15.74 % 14.96 % Share information: Book value per share $7.31 $6.33 (1) $7.31 (1) $6.33 (1) Actual shares outstanding at period end, net of treasury shares (250,555) 9,492,000 9,266,000 (1) 9,492,000 (1) 9,266,000 (1) Average diluted shares outstanding 9,750,000 9,600,000 (1) 9,696,000 (1) 9,554,000 (1) (1) EPS has been restated for the 12% stock dividend paid June 7, 2005 and the 10% stock dividend paid May 17, 2006. Republic First Bancorp, Inc. June 30, 2006 (Dollars in thousands) (unaudited) Credit Quality Ratios: June 30 June 30 2006 2005 Non-accrual and loans accruing, but past due 90 days or more $2,877 $3,138 Restructured loans - - Total non-performing loans 2,877 3,138 Other real estate owned 594 137 Total non-performing assets $3,471 $3,275 Non-performing loans as a percentage of total loans 0.39% 0.52% Nonperforming assets as a percentage of total assets 0.40% 0.42% Allowance for loan losses to total loans 1.05% 1.16% Allowance for loan losses to total non-performing loans 269.59% 222.94% Republic First Bancorp, Inc. June 30, 2006 (Dollars in thousands) (unaudited) Quarter-to-Date Average Balance Sheet Three months ended Three months ended June 30, 2006 June 30, 2005 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $700,313 $13,751 7.88 % $577,421 $9,859 6.85 % Investment securities 43,131 566 5.25 45,046 441 3.92 Federal funds sold 20,656 252 4.89 27,900 195 2.80 Total interest- earning assets 764,100 14,569 7.65 650,367 10,495 6.47 Other assets 36,253 39,793 Total assets $800,353 $14,569 $690,160 $10,495 Interest-bearing liabilities: Interest-bearing deposits $530,721 $4,939 3.73 % $480,710 $3,020 2.52 % Borrowed funds 107,800 1,444 5.37 59,214 544 3.68 Interest-bearing liabilities 638,521 6,383 4.01 539,924 3,564 2.65 Non-interest and interest-bearing funding 722,804 6,383 3.54 626,892 3,564 2.28 Other liabilities: 9,408 6,030 Total liabilities 732,212 632,922 Shareholders' equity 68,141 57,238 Total liabilities & shareholders' equity $800,353 $690,160 Net interest income $8,186 $6,931 Net interest margin 4.30 % 4.27 % Republic First Bancorp, Inc. June 30, 2006 (Dollars in thousands ) (unaudited) Year-to-Date Average Balance Sheet Six months ended Six months ended June 30, 2006 June 30, 2005 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $700,603 $27,905 8.03 % $572,106 $19,771 6.93 % Investment securities 42,488 1,076 5.06 46,902 885 3.77 Federal funds sold 28,350 652 4.64 52,526 671 2.56 Total interest- earning assets 771,441 29,633 7.75 671,534 21,327 6.37 Other assets 36,880 42,171 Total assets $808,321 $29,633 $713,705 $21,327 Interest-bearing liabilities: Interest-bearing deposits $574,380 $10,203 3.58 % $496,439 $6,016 2.43 % Borrowed funds 72,562 1,935 5.38 63,750 1,182 3.72 Interest-bearing liabilities 646,942 12,138 3.78 560,189 7,198 2.58 Non-interest and interest-bearing funding 732,117 12,138 3.34 650,434 7,198 2.22 Other liabilities: 9,602 7,235 Total liabilities 741,719 657,669 Shareholders' equity 66,602 56,036 Total liabilities & shareholders' equity $808,321 $713,705 Net interest income $17,495 $14,129 Net interest margin 4.57 % 4.22 % DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO of Republic First Bancorp, +1-215-735-4422 ext. 5255

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