FRBK Republic First Bancorp Inc

PHILADELPHIA, April 25 /PRNewswire-FirstCall/ -- 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 results 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 Interest-Earning Average Average 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 % DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO of Republic First Bancorp, Inc., +1-215-735-4422, Ext. 5255

Copyright