FRBK Republic First Bancorp Inc

Republic First Bancorp, Inc. Reports 156% Increase in Third Quarter Earnings PHILADELPHIA, Oct. 25 /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 third quarter 2004 earnings of $3.1 million. Total third quarter 2004 diluted earnings per share amounted to $0.41* compared to $0.16* for the prior year third quarter, a 156% increase from the prior year third quarter. Total year to date earnings increased to $6.3 million in 2004, compared to $3.7 million for the prior year. Total year to date diluted earnings per share increased to $0.83* compared to $.50* in the prior year. Average commercial and construction loans and core deposits grew in excess of 20% in third quarter 2004 compared to the comparable prior year period. Chairman Harry Madonna stated, "While the large one-time loan loss recovery during the period was a positive development, it should not overshadow the continued improvement in core earnings. The growth in commercial loans and core deposits, which exceeded 20%, also augurs well for the future. During the quarter, $125 million of the Bank's Federal Home Loan Bank borrowings, with a blended rate of over 6%, began to be paid off, and will continue to be paid off through February of 2005. These pay offs will significantly decrease our cost of funds in the current rate environment. We will continue to focus on our carefully selected lines of business, each of which continues to meet or exceed our expectations. We look forward to making continued progress, and further increasing shareholder value." Total shareholders' equity stood at $62.6 million with a book value per share of $8.65* at September 30, 2004, based on outstanding common shares of approximately 7.3 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 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. * All current and prior year per share amounts and total shares outstanding reflect the 10% stock dividend paid August 24, 2004. Republic First Bancorp, Inc. Condensed Income Statement (Dollar amounts in thousands except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Net Interest Income $5,514 $4,081 $15,443 $21,474 Provision for Loan Losses (611) 647 263 6,345 Other Income 3,817 2,826 9,393 4,218 Other Expenses 5,346 4,421 15,153 13,797 Income Taxes 1,513 606 3,168 1,873 Net Income $3,083 $1,233 $6,252 $3,677 Basic EPS $0.43 $0.17 $0.88 $0.52 Diluted EPS $0.41 $0.16 $0.83 $0.50 Republic First Bancorp, Inc. Condensed Balance Sheet (Dollar amounts in thousands) Assets September 30 September 30 2004 2003 Federal Funds Sold and Other Interest Bearing Cash $59,319 $71,122 Investment Securities 54,080 50,702 Commercial and Other Loans 553,263 471,775 Allowance for Loan Losses (8,338) (8,731) Other Assets 54,564 59,899 Total Assets $712,888 $644,767 Liabilities and Shareholders' Equity: Transaction Accounts $345,145 $266,845 Time Deposit Accounts 185,848 180,768 FHLB Advances and Trust Preferred Securities 106,186 131,000 Other Liabilities 13,063 11,188 Shareholders' Equity 62,646 54,966 Total Liabilities and Shareholders' Equity $712,888 $644,767 Republic First Bancorp, Inc. September 30, 2004 At or For the Three Months Ended September 30 September 30 Financial Data: 2004 2003 Return on average assets 1.79% 0.75% Return on average equity 20.52% 8.94% Share information: Book value per share $8.65 $7.62 Shares o/s at period end 7,242,991 7,141,000 Average diluted shares o/s 7,607,000 7,481,000 At or For the Nine Months Ended September 30 September 30 Financial Data: 2004 2003 Return on average assets 1.20% 0.75% Return on average equity 13.83% 9.26% Republic First Bancorp, Inc. Press release 9/30/04 (Dollars in thousands except per share data) Credit Quality Ratios: Sept. 30 Dec. 31, Sept. 30 2004 2003 2003 Non-accrual and loans accruing, but past due 90 days or more $7,640 $8,611 $6,983 Restructured loans - - - Total non-performing loans 7,640 8,611 6,983 OREO 207 207 1,015 Total non-performing assets $7,847 $8,818 $7,998 Non-performing loans as a percentage of total loans 1.38% 1.76% 1.48% Non-performing assets as a percentage of total assets 1.10% 1.35% 1.24% Allowance for loan losses to total loans 1.51% 1.78% 1.85% Allowance for loan losses to total non-performing loans 109.14% 101.00% 119% Republic First Bancorp, Inc. Press release 9/30/04 (Dollars in thousands) Quarter-to-Date Average Balance Sheet Three months ended Three months ended September 30, 2004 September 30, 2003 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $535,942 $8,714 6.45 % $458,719 $7,339 6.35 % Investment securities 58,723 502 3.42 54,552 586 4.29 Federal funds sold 43,913 161 1.45 76,927 243 1.25 Total interest-earning assets 638,578 9,377 5.82 590,198 8,168 5.50 Other assets 60,688 57,736 Total assets $699,266 $9,377 $647,934 $8,168 Interest-bearing liabilities: Interest-bearing deposits $408,421 $1,957 1.90 % $374,876 $2,007 2.12 % Borrowed funds 120,648 1,906 6.27 134,074 2,079 6.15 Other liabilities 529,069 3,863 3.06 508,950 4,086 3.19 Non-interest and interest-bearing funding 623,687 3,863 2.46 579,980 4,086 2.80 Other liabilities: 14,590 13,227 Total liabilities 638,277 593,207 Shareholders' equity 60,989 54,727 Total liabilities & shareholders' equity $699,266 $647,934 Net interest income $5,514 $4,082 Interest rate spread 3.36 % 2.70 % Net interest margin 3.42 % 2.75 % Republic First Bancorp, Inc. Press release 9/30/04 (Dollars in thousands) Year to Date Average Balance Sheet Nine months ended Nine months ended September 30, 2004 September 30, 2003 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and Other Loans $516,373 $25,057 6.47 % $468,853 $31,215 8.90 % Investment securities 64,664 1,629 3.36 68,877 2,331 4.51 Federal funds sold 60,352 524 1.16 76,684 735 1.28 Total interest- earning assets 641,389 27,210 5.65 614,414 34,281 7.46 Non-interest-earning assets 52,143 44,210 Total Assets $693,532 $27,210 $658,624 $34,281 Interest-bearing liabilities: Interest-bearing deposits $395,180 $5,785 1.96 % $390,114 $6,639 2.28 % Borrowed funds 128,091 5,982 6.24 133,316 6,168 6.19 Total interest- bearing liabilities 523,271 11,767 3.01 523,430 12,807 3.27 Cost of funds 618,930 11,767 2.54 596,546 12,807 2.87 Non-interest- bearing liabilities: 14,335 8,978 Total liabilities 633,265 605,524 Shareholders' Equity 60,267 53,100 Total liabilities & shareholders' equity $693,532 $658,624 Net interest income $15,443 $21,474 Interest rate spread 3.11 % 4.59 % Net interest margin 3.21 % 4.67 % DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO of Republic First Bancorp, +1-215-735-4422 ext. 255

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