FRBK Republic First Bancorp Inc

Republic First Bancorp, Inc. Reports 46% Increase in Second Quarter Earnings and Announces 10% Stock Dividend PHILADELPHIA, July 20 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. (NASDAQ:FRBK), (the "Company") the holding company for Republic First Bank (PA) and First Bank of Delaware (DE), today reported second quarter 2004 earnings of $1.7 million compared to $1.2 million for the prior year period, an increase of 46%. Year to date earnings increased to $3.2 million in 2004, compared to $2.4 million, an increase of 31%. Diluted earnings per share for second quarter 2004 increased to $0.24, from $0.17 in the prior year, an increase of 41%. Year to date diluted earnings per share increased to $0.46 compared to $0.37 in the prior year, an increase of 24%. The improvement in 2004 earnings reflected commercial loan and core deposit growth, increases in non-interest income and lower loan loss provisions. Average commercial and construction loans grew 20% in second quarter 2004 compared to the comparable prior year period. Average core deposits in those periods grew by approximately 11%. The Company also announced a 10% stock dividend to shareholders of record as of August 5, 2004 payable as of August 24, 2004. Share and per share information has not been restated for this dividend. Chairman Harry Madonna stated, "This stock dividend reflects continuing improvements in earnings and other measures of financial performance, and the sustained double-digit growth in core businesses. We will continue to focus on our carefully selected niche lines of business, each of which continues to meet or exceed our current year's budget projections. We look forward to making continued progress, and further increasing shareholder value." Total shareholders' equity stood at $59.5 million with a book value per share of $9.02 at June 30, 2004, based on outstanding common shares of approximately 6.6 million. As of that date, the Company continued to be well capitalized. Republic First Bank (PA) and First Bank of Delaware (DE) are full-service, state-chartered commercial banks, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The Banks provide diversified financial products through their twelve offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, and Philadelphia, Pennsylvania and Wilmington, Delaware. 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. Republic First Bancorp, Inc. Condensed Income Statement (Dollar amounts in thousands except per share data) Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Net Interest Income $4,607 $8,293 $9,928 $17,393 Provision for Loan Losses 62 2,286 873 5,698 Other Income 2,830 497 5,577 1,392 Other Expenses 4,827 4,770 9,807 9,376 Income Taxes 865 583 $1,631 $1,267 Net Income $1,683 $1,151 $3,194 $2,444 Basic EPS $0.26 $0.18 $0.49 $0.38 Diluted EPS $0.24 $0.17 $0.46 $0.37 Republic First Bancorp, Inc. Condensed Balance Sheet (Dollar amounts in thousands) Assets June 30 June 30 2004 2003 Federal Funds Sold and Other Interest Bearing Cash $52,398 $73,014 Investment Securities 64,112 62,589 Commercial and Other Loans 527,052 466,196 Allowance for Loan Losses (8,327) (7,876) Other Assets 52,824 64,963 Total Assets $688,059 $658,886 Liabilities and Shareholders' Equity: Transaction Accounts $304,613 $276,553 Time Deposit Accounts 180,268 186,364 FHLB Advances and Trust Preferred Securities 131,186 131,000 Other Liabilities 12,522 11,008 Shareholders' Equity 59,470 53,961 Total Liabilities and Shareholders' Equity $688,059 $658,886 At or For the Three Months Ended June 30, June 30, Financial Data: 2004 2003 Return on average assets 0.98 % 0.69 % Return on average equity 11.47 % 8.58 % Share information: Book value per share $9.02 $8.31 Shares o/s at period end 6,583,238 6,492,000 Average diluted shares o/s 6,874,585 6,771,000 At or For the Six Months Ended June 30 June 30 Financial Data: 2004 2003 Return on average assets 0.92 % 0.74 % Return on average equity 11.03 % 9.26 % (Dollars in thousands except per share data) Credit Quality Ratios: June 30 Dec. 31 June 30 2004 2003 2003 Non-accrual and loans accruing, but past due 90 days or more $7,263 $8,611 $8,268 Restructured loans - - - Total non-performing loans 7,263 8,611 8,268 OREO 207 207 1,015 Total non-performing assets $7,470 $8,818 $9,283 Non-performing loans as a percentage of total loans 1.38% 1.76% 1.77% Non-performing assets as a percentage of total assets 1.08% 1.35% 1.41% Allowance for loan losses to total loans 1.58% 1.78% 1.68% Allowance for loan losses to total non-performing loans 114.65% 101.00% 94.96% (Dollars in thousands ) Quarter to Date Average Balance Sheet Three months ended Three months ended June 30, 2004 June 30, 2003 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and Other Loans $516,087 $7,861 6.09 % $463,733 $11,543 9.98 % Investment Securities 65,764 526 3.20 67,323 746 4.44 Federal Funds Sold 56,344 148 1.05 84,876 264 1.25 Total Interest- earning Assets 638,195 8,535 5.35 615,932 12,553 8.17 Other Assets 48,352 46,782 Total Assets $686,547 $8,535 $662,714 $12,553 Interest-bearing Liabilities: Interest-bearing Deposits $381,758 $1,893 2.00 % $393,198 $2,212 2.26 % Borrowed Funds 131,000 2,035 6.21 131,033 2,048 6.27 Other Liabilities 512,758 3,928 3.06 524,231 4,260 3.26 Non-interest and Interest-bearing Funding 608,984 3,928 2.60 596,167 4,260 2.87 Other Liabilities: 18,869 12,876 Total Liabilities 627,853 609,043 Shareholders' Equity 58,694 53,671 Total Liabilities & Shareholders' Equity $686,547 $662,714 Net Interest Income $4,607 $8,293 Interest Rate Spread 2.75 % 5.31 % Net Interest Margin 2.89 % 5.40 % (Dollars in thousands) Year to Date Average Balance Sheet Six months ended June 30, 2004 Average Interest-Earning Assets: Average Yield/ Balance Interest Cost Commercial and Other Loans $507,254 $16,343 6.44 % Investment Securities 67,682 1,127 3.33 Federal Funds Sold 68,668 363 1.06 Total Interest-earning Assets 643,604 17,833 5.54 Non-Interest-earning Assets 48,462 Total Assets $692,066 $17,833 Interest-bearing Liabilities: Interest-bearing Deposits $392,949 $3,828 1.95 % Borrowed Funds 132,041 4,077 6.18 Total Interest-bearing Liabilities 524,990 7,905 3.01 Cost of Funds 622,181 7,905 2.54 Non-Interest-bearing liabilities: 12,156 Total Liabilities 634,337 Shareholders' Equity 57,729 Total Liabilities & Shareholders' Equity $692,066 Net Interest Income $9,928 Interest Rate Spread 3.00 % Net Interest Margin 3.09 % Year to Date Average Balance Sheet Six months ended June 30, 2003 Average Interest-Earning Assets: Average Yield/ Balance Interest Cost Commercial and Other Loans $474,606 $23,876 10.14 % Investment Securities 76,158 1,745 4.58 Federal Funds Sold 76,512 492 1.30 Total Interest-earning Assets 627,276 26,113 8.39 Non-Interest-earning Assets 40,469 Total Assets $667,745 $26,113 Interest-bearing Liabilities: Interest-bearing Deposits $395,898 $4,631 2.36 % Borrowed Funds 132,959 4,089 6.20 Total Interest-bearing Liabilities 528,857 8,720 3.33 Cost of Funds 603,412 8,720 2.91 Non-Interest-bearing Liabilities: 11,105 Total Liabilities 614,517 Shareholders' Equity 53,228 Total Liabilities & Shareholders' Equity $667,745 Net Interest Income $17,393 Interest Rate Spread 5.47 % Net Interest Margin 5.58 % DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO, Republic First Bancorp, +1-215-735-4422 ext. 255

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