FRBK Republic First Bancorp Inc

PHILADELPHIA, Oct. 18 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. (NASDAQ:FRBK), (the "Company") the holding company for Republic First Bank (PA), today reported third quarter 2006 earnings of $2.4 million or $.25 per diluted share, a 14% increase over the same quarter in 2005. Earnings for the nine month period ending September 30, 2006 were $7.6 million or $.79 per diluted share, compared to $6.3 million or $.65* per diluted share, a 21% increase over the comparable prior year period. The improvement in 2006 earnings reflected commercial loan and deposit growth. Average loans grew in excess of 22% in third quarter 2006 compared to the third 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. 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 $72.1 million with a book value per share of $7.59 at September 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 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. * Per share and book value amounts were restated to reflect 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 Nine Months Ended September 30 September 30 2006 2005(1) 2006 2005(1) Net Interest Income $8,327 $7,257 $25,822 $21,386 Provision for Loan Losses - 315 1,374 1,137 Non-interest Income 874 904 2,833 2,806 Non-interest Expenses 5,503 4,603 15,666 13,614 Provision for income taxes 1,263 1,102 3,982 3,144 Net Income $2,435 $2,141 $7,633 $6,297 Diluted EPS $0.25 $0.22 $0.79 $0.65 Republic First Bancorp, Inc. Condensed Balance Sheet (Dollar amounts in thousands) (unaudited) Assets September 30, September 30, 2006 2005 Federal Funds Sold and Other Interest Bearing Cash $98,322 $66,413 Investment Securities 83,237 66,097 Commercial and Other Loans 761,803 645,614 Allowance for Loan Losses (7,934) (7,401) Other Assets 44,916 48,777 Total Assets $980,344 $819,500 Liabilities and Shareholders' Equity: Transaction Accounts $368,121 $356,820 Time Deposit Accounts 374,870 228,162 FHLB Advances and Trust Preferred Securities 151,980 166,999 Other Liabilities 13,306 6,686 Shareholders' Equity 72,067 60,833 Total Liabilities and Shareholders' Equity $980,344 $819,500 (1) EPS has been restated for the 10% stock dividend paid May 17, 2006. Republic First Bancorp, Inc. September 30, 2006 (unaudited) At or For the At or For the Three Months Ended Nine Months Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, Financial Data: 2006 2005 2006 2005 Return on average assets 1.13 % 1.19 % 1.24 % 1.18 % Return on average equity 13.66 % 14.24 % 15.01 % 14.71 % Share information: Book value per share $7.59 $6.54 (1) $7.59 $6.54 (1) Actual shares outstanding at period end, net of treasury shares (250,555) 9,493,000 9,301,000 (1) 9,493,000 9,301,000 (1) Average diluted shares outstanding 9,749,000 9,647,000 (1) 9,713,000 9,577,000 (1) (1) EPS has been restated for the 10% stock dividend paid May 17, 2006. Republic First Bancorp, Inc. September 30, 2006 (Dollars in thousands) (unaudited) Credit Quality Ratios: September 30, September 30, 2006 2005 Non-accrual and loans accruing, but past due 90 days or more $9,972 $2,872 Restructured loans - - Total non-performing loans 9,972 2,872 Other real estate owned 499 137 Total non-performing assets $10,471 $3,009 Non-performing loans as a percentage of total loans 1.31% 0.44% Nonperforming assets as a percentage of total assets 1.07% 0.37% Allowance for loan losses to total loans 1.04% 1.15% Allowance for loan losses to total non-performing loans 79.56% 257.69% Republic First Bancorp, Inc. September 30, 2006 (Dollars in thousands) (unaudited) Quarter-to-Date Average Balance Sheet Three months ended Three months ended September 30, 2006 September 30, 2005 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $742,420 $14,868 7.95 % $604,531 $10,576 6.94 % Investment securities 59,736 915 6.13 48,752 465 3.82 Federal funds sold 18,524 248 5.31 20,952 192 3.64 Total interest- earning assets 820,680 16,031 7.75 674,235 11,233 6.61 Other assets 36,593 39,460 Total assets $857,273 $16,031 $713,695 $11,233 Interest-bearing liabilities: Interest-bearing deposits $582,072 $6,078 4.14 % $485,511 $3,219 2.63 % Borrowed funds 114,227 1,626 5.65 74,441 757 4.03 Interest-bearing liabilities 696,299 7,704 4.39 559,952 3,976 2.82 Non-interest and interest-bearing funding 775,241 7,704 3.94 645,967 3,976 2.44 Other liabilities: 11,309 8,022 Total liabilities 786,550 653,989 Shareholders' equity 70,723 59,706 Total liabilities & shareholders' equity $857,273 $713,695 Net interest income $8,327 $7,257 Net interest margin 4.03 % 4.27 % Republic First Bancorp, Inc. September 30, 2006 (Dollars in thousands) (unaudited) Year-to-Date Average Balance Sheet Nine months ended Nine months ended September 30, 2006 September 30, 2005 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $714,695 $42,773 8.00 % $583,033 $30,347 6.96 % Investment securities 48,300 1,991 5.50 47,526 1,350 3.79 Federal funds sold 25,039 900 4.81 41,885 863 2.75 Total interest- earning assets 788,034 45,664 7.75 672,444 32,560 6.47 Other assets 36,940 41,205 Total assets $824,974 $45,664 $713,649 $32,560 Interest-bearing liabilities: Interest-bearing deposits $576,972 $16,281 3.77 % $492,752 $9,235 2.51 % Borrowed funds 86,603 3,561 5.50 67,353 1,939 3.85 Interest-bearing liabilities 663,575 19,842 4.00 560,105 11,174 2.67 Non-interest and interest-bearing funding 746,806 19,842 3.55 648,151 11,174 2.30 Other liabilities: 10,194 8,211 Total liabilities 757,000 656,362 Shareholders' equity 67,974 57,287 Total liabilities & shareholders' equity $824,974 $713,649 Net interest income $25,822 $21,386 Net interest margin 4.38 % 4.25 % DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO, Republic First Bancorp, Inc., +1-215-735-4422, ext. 5255

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