PHILADELPHIA, Aug. 7 /PRNewswire-FirstCall/ -- Republic First
Bancorp, Inc. (NASDAQ:FRBK), (the "Company") the holding company
for Republic First Bank (PA), today reported a second quarter 2009
net loss of $5,435,000 or $.51 per share, compared to net income of
$1.2 million or $.11 per diluted share in second quarter 2008.
Chief Executive Officer's Statement In commenting on the Company's
financial results, Harry D. Madonna, Chief Executive Officer, noted
that: -- The Agreement and Plan of Merger with Metro Bancorp Inc.
(formerly, Pennsylvania Bancorp, Inc.) ("Metro"), approved by the
Shareholders of both companies, has been submitted for regulatory
approval. The Company and Metro have extended the contractual
deadline for the merger to October 31, 2009 with extension to
December 31, 2009 if required. -- Republic First Bank's income from
operations, excluding additional provisions for loan losses and
impairment charges and special FDIC assessments improved from the
linked quarter by $.01 per diluted share. -- Core deposits
increased by 16% from the linked quarter. -- The Company remains
well capitalized with Tier 1 capital of 10.83% at June 30, 2009. --
The Company continued to focus on Asset Quality. -- Allowance for
Loan Losses increased to $16 million, 101% of non-performing loans
and 2.1% of total loans. Income Statement ---------------- (dollars
in thousands, except per share data) Three months ended Six months
ended ------------------------------------- ----------------------
% % % 6/30/09 3/31/09 Change 6/30/08 Change 6/30/09 6/30/08 Change
------- ------- ------ ------- ------ ------- ------- ------ Total
revenues* $7,174 $7,510 -4% $7,840 -8% $14,684 $15,727 -7% Total
operating expenses $7,219 $8,485 -15% $6,061 19% $15,704 $12,509
26% Net income (loss) $(5,435)$(3,760) 45% $1,189 -557%
$(9,195)$(1,589) 479% Earnings (loss) per share $(0.51) $(0.35) 46%
$0.11 -564% $(0.86) $(0.16) 438% * Interest income plus
non-interest income Total revenues of $7.2 million for the second
quarter represented a 4% decrease from the linked quarter. The
decrease resulted primarily from lower non-interest income in the
second quarter. The lower revenues in 2009 compared to the second
quarter of 2008, reflected lower loan balances which contributed to
a lower net interest margin, as well as lower non-interest income.
Operating expenses decreased 15% to $7.2 million compared to the
linked quarter primarily due to costs of carrying real estate owned
in the linked quarter. Operating expenses were higher in the second
quarter of 2009 by 19% compared to the second quarter of the prior
year. Republic First Bancorp, Inc. Balance Sheet Highlights
------------------------ (dollars in thousands) % % 6/30/09 3/31/09
Change 6/30/08 Change ------- ------- ------ ------- ------ Total
assets $937,116 $911,380 3% $947,589 -1% Total loans (net) 731,981
741,822 -1% 784,115 -7% Total deposits 808,636 779,128 4% 728,559
11% Total core deposits* 439,196 379,398 16% 346,885 27% * Core
deposits exclude all certificates of deposit. Lending Gross loans
at June 30, amounted to $748.0 million, a decrease of $2.2 million
or 0.3% compared to March 31, 2009. The following table sets forth
the composition of the Company's loan portfolio at the dates
indicated. ($in thousands) % of % of $ % of 6/30/09 Total 3/31/09
Total Incr/(Decr) 6/30/08 Total ------- ----- ------- -----
----------- ------- ----- Commercial: Real estate secured $439,007
59% $440,268 59% $(1,261) $466,328 59% Construction & land
development 206,109 28% 207,921 28% (1,812) 220,104 28% C & I
79,085 10% 77,868 10% 1,217 77,729 9% ------ -- ------ -- -----
------ - Total commercial 724,201 97% 726,057 97% (1,856) 764,161
96% Residential real estate 4,304 1% 4,918 1% (614) 5,870 1%
Consumer & other 19,513 2% 19,281 2% 232 20,844 3% ------ -
------ - --- ------ - Gross loans $748,018 100% $750,256 100%
$(2,238) $790,875 100% ======== === ======== === ======== ========
=== Asset Quality The Company's asset quality ratios are
highlighted below: Quarter Ended ------------- 6/30/09 3/31/09
6/30/08 ------- ------- ------- Nonperforming assets/total assets
2.76% 3.10% 1.84% Net loan charge-offs/average total loans 0.35%
2.51% 1.73% Loan loss reserve/gross loans 2.14% 1.12% 0.85%
Nonperforming loan coverage 101% 46% 215% Nonperforming
assets/capital and reserves 30% 33% 20% Non-performing assets at
June 30, 2009 decreased to $25.9 million, or 2.76% of total assets,
a decrease from $28.3 million or 3.10% of total assets at March 31,
2009 and an increase from $17.4 million or 1.84% of total assets a
year earlier. Core Deposits Core deposits by type of account are as
follows: ($in thousands) 2nd Qtr 2009 % % Cost of 6/30/09 3/31/09
Change 6/30/08 Change Funds ------- ------- ------ ------- ------
----- Demand non- interest-bearing $91,642 $87,849 4% $77,404 18%
0.00% Demand interest-bearing 42,675 38,448 11% 30,167 41% 0.68%
Money market and savings 304,879 253,101 20% 239,314 27% 1.96%
------- ------- -- ------- -- ---- Total core deposits $439,196
$379,398 16% $346,885 27% 1.43% ======== ======== == ======== ==
==== Core deposits, which exclude all certificates of deposit,
increased to $439 million at June 30, 2009, an increase of $59.8
million or 16% from March 31, 2009 and an increase of $92.3 million
or 27% from June 30, 2008. Capital The Company's capital ratios at
June 30, 2009 were: Republic Regulatory Guidelines First "Well
Capitalized" ----- --------------------- Leverage Ratio 9.75% 5.00%
Tier I 10.83% 6.00% Total Capital 12.09% 10.00% Tangible Common
Equity (TCE) 7.61% Total shareholders' equity was $71.3 million at
June 30, 2009 which represented a book value per share of $6.69,
based on common shares of approximately 10.7 million. 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 twelve offices located in Abington, Ardmore,
Bala Cynwyd, Plymouth Meeting, 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. Republic First Bancorp, Inc.
Selected Consolidated Financial Data (Unaudited) At or for the
Three months ended ------------------ (in thousands, except % % per
share amounts) 6/30/09 3/31/09 Change 6/30/08 Change -------
------- ------ ------- ------ Income Statement Data: Net interest
income $6,792 $6,858 -1% $7,004 -3% Provision for loan losses 8,250
4,800 72% 43 19086% Noninterest income (loss) 382 652 -41% 836 -54%
Total revenues 7,174 7,510 -4% 7,840 -8% Noninterest operating
expenses 7,219 8,485 -15% 6,061 19% Provision (benefit) for income
taxes (2,860) (2,015) 42% 547 -623% Net income (loss) (5,435)
(3,760) 45% 1,189 -557% Per Common Share Data: Net income (loss):
Basic $(0.51) $(0.35) 46% $0.11 -564% Net income (loss): Diluted
(0.51) (0.35) 46% 0.11 -564% Book Value $6.69 $7.19 $7.43 Weighted
average shares outstanding: Basic 10,656 10,631 10,445 Diluted
10,656 10,631 10,862 Balance Sheet Data: Total assets $937,116
$911,380 3% Loans (net) 731,981 741,822 -1% Allowance for loan
losses 16,037 8,434 90% Investment securities - AFS 73,932 79,410
-7% Investment securities - HTM 159 198 -20% Restricted stock 6,836
6,836 0% Federal funds sold 21,007 6,883 205% Total deposits
808,636 779,128 4% Core deposits* 439,196 379,398 16% FHLB and
overnight advances 25,000 25,000 0% Trust preferred 22,476 22,476
0% Stockholders' equity 71,307 76,487 -7% Capital: Stockholders'
equity to total assets 7.61% 8.39% Leverage ratio 9.75% 10.88% Risk
based capital ratios: Tier 1 10.83% 12.35% Total Capital 12.09%
13.39% Performance Ratios: Cost of funds 1.98% 2.09% 2.96% Deposit
cost of funds 1.84% 2.01% 2.98% Net interest margin 3.25% 3.24%
3.19% Return on average assets -2.36% -1.66% 0.51% Return on
average total stockholders' equity -28.88% -19.41% 6.12% Asset
Quality Net charge-offs to average loans outstanding 0.35% 2.51%
Nonperforming assets to total period-end assets 2.76% 3.10%
Allowance for loan losses to total period-end loans 2.14% 1.12%
Allowance for loan losses to nonperforming loans 101% 46%
Nonperforming assets to capital and reserves 30% 33% At or for the
Six months ended ---------------- (in thousands, except % per share
amounts) 6/30/09 6/30/08 Change ------- ------- ------ Income
Statement Data: Net interest income $13,650 $14,226 -4% Provision
for loan losses 13,050 5,855 123% Noninterest income (loss) 1,034
1,501 -31% Total revenues 14,684 15,727 -7% Noninterest operating
expenses 15,704 12,509 26% Provision (benefit) for income taxes
(4,875) (1,048) 365% Net income (loss) (9,195) (1,589) 479% Per
Common Share Data: Net income (loss): Basic $(0.86) $(0.16) 438%
Net income (loss): Diluted (0.86) (0.16) 438% Book Value $6.69
$7.43 Weighted average shares outstanding: Basic 10,644 10,404
Diluted 10,644 10,404 Balance Sheet Data: Total assets $937,116
$947,589 -1% Loans (net) 731,981 784,115 -7% Allowance for loan
losses 16,037 6,760 137% Investment securities - AFS 73,932 79,700
-7% Investment securities - HTM 159 257 -38% Restricted stock 6,836
4,615 48% Federal funds sold 21,007 8,867 137% Total deposits
808,636 728,559 11% Core deposits* 439,196 346,885 27% FHLB and
overnight advances 25,000 111,069 -77% Trust preferred 22,476
22,476 0% Stockholders' equity 71,307 78,399 -9% Capital:
Stockholders' equity to total assets 7.61% 8.27% Leverage ratio
9.75% 10.69% Risk based capital ratios: Tier 1 10.83% 11.63% Total
Capital 12.09% 12.41% Performance Ratios: Cost of funds 2.04% 3.24%
Deposit cost of funds 1.92% 3.24% Net interest margin 3.25% 3.19%
Return on average assets -2.02% -0.33% Return on average total
stockholders' equity -24.05% -4.02% Asset Quality Net charge-offs
to average loans outstanding 1.44% 1.89% Nonperforming assets to
total period-end assets 2.76% 1.84% Allowance for loan losses to
total period-end loans 2.14% 0.85% Allowance for loan losses to
nonperforming loans 101% 215% Nonperforming assets to capital and
reserves 30% 20% * Core deposits exclude certificates of deposit
Republic First Bancorp, Inc. Average Balances and Net Interest
Income (unaudited) For the three months For the three months ended
ended June 30, 2009 March 31, 2009 ------------- --------------
Interest-earning assets: Interest Interest (Dollars in thousands)
Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate
Balance Expense Rate ------- ------- ---- ------- ------- ----
Federal funds sold and other interest- earning assets $9,955 $19
0.77% $3,726 $3 0.33% Securities 86,230 1,109 5.14% 90,966 1,190
5.23% Loans receivable 747,725 9,863 5.29% 770,562 9,990 5.26%
------- ----- ---- ------- ----- ---- Total interest- earning
assets 843,910 10,991 5.22% 865,254 11,183 5.24% Other assets
79,454 51,229 ------ ------ Total assets $923,364 $916,483 ========
======== Interest-bearing liabilities: Demand-non interest bearing
$81,046 $77,527 Demand interest- bearing 44,487 $75 0.68% 42,087
$65 0.63% Money market & savings 281,368 1,374 1.96% 226,663
1,101 1.97% Time deposits 383,161 2,180 2.28% 394,742 2,501 2.57%
------- ----- ---- ------- ----- ---- Total deposits 790,062 3,629
1.84% 741,019 3,667 2.01% Total interest-bearing deposits 709,016
3,629 2.05% 663,492 3,667 2.24% ------- ----- ---- ------- -----
---- Other borrowings 47,690 514 4.32% 87,726 603 2.79% ------ ---
---- ------ --- ---- Total interest-bearing liabilities $756,706
$4,143 2.20% $751,218 $4,270 2.31% ======== ====== ==== ========
====== ==== Total deposits and other borrowings 837,752 4,143 1.98%
828,745 4,270 2.09% ------- ----- ---- ------- ----- ---- Non
interest-bearing liabilities 10,127 9,184 Shareholders' equity
75,485 78,554 ------ ------ Total liabilities and shareholders'
equity $923,364 $916,483 ======== ======== Net interest income
$6,848 $6,913 ====== ====== Net interest spread 3.02% 2.93% ====
==== Net interest margin 3.25% 3.24% ==== ==== For the three months
For the six months ended ended June 30, 2008 June 30, 2009
------------- ------------- Interest-earning assets: Interest
Interest (Dollars in thousands) Average Income/ Yield/ Average
Income/ Yield/ Balance Expense Rate Balance Expense Rate -------
------- ---- ------- ------- ---- Federal funds sold and other
interest- earning assets $10,618 $58 2.20% $6,858 $22 0.65%
Securities 82,392 1,167 5.67% 88,585 2,299 5.19% Loans receivable
797,233 12,160 6.13% 759,080 19,853 5.27% ------- ------ ----
------- ------ ---- Total interest- earning assets 890,243 13,385
6.05% 854,523 22,174 5.23% Other assets 55,336 65,419 ------ ------
Total assets $945,579 $919,942 ======== ======== Interest-bearing
liabilities: Demand-non interest bearing $74,126 $79,296 Demand
interest- bearing 31,236 $69 0.89% 43,294 $140 0.65% Money market
& savings 211,281 1,371 2.61% 254,167 2,475 1.96% Time deposits
441,069 4,169 3.80% 388,919 4,681 2.43% ------- ----- ---- -------
----- ---- Total deposits 757,712 5,609 2.98% 765,676 7,296 1.92%
Total interest-bearing deposits 683,586 5,609 3.30% 686,380 7,296
2.14% ------- ----- ---- ------- ----- ---- Other borrowings
101,186 715 2.84% 67,597 1,117 3.33% ------- --- ---- ------ -----
---- Total interest-bearing liabilities $784,772 $6,324 3.24%
$753,977 $8,413 2.25% ======== ====== ==== ======== ====== ====
Total deposits and other borrowings 858,898 6,324 2.96% 833,273
8,413 2.04% ------- ----- ---- ------- ----- ---- Non
interest-bearing liabilities 8,532 9,573 Shareholders' equity
78,149 77,096 ------ ------ Total liabilities and shareholders'
equity $945,579 $919,942 ======== ======== Net interest income
$7,061 $13,761 ====== ======= Net interest spread 2.81% 2.98% ====
==== Net interest margin 3.19% 3.25% ==== ==== For the six months
ended June 30, 2008 ------------- Interest-earning assets: Interest
(Dollars in thousands) Average Income/ Yield/ Balance Expense Rate
------- ------- ---- Federal funds sold and other interest- earning
assets $11,444 $154 2.71% Securities 84,969 2,480 5.84% Loans
receivable 807,468 25,613 6.38% ------- ------ ---- Total interest-
earning assets 903,881 28,247 6.28% Other assets 49,157 ------
Total assets $953,038 ======== Interest-bearing liabilities:
Demand-non interest bearing $78,760 Demand interest- bearing 36,615
$215 1.18% Money market & savings 209,426 3,038 2.92% Time
deposits 412,554 8,609 4.20% ------- ----- ---- Total deposits
737,355 11,862 3.24% Total interest-bearing deposits 658,595 11,862
3.62% ------- ------ ---- Other borrowings 126,369 2,041 3.25%
------- ----- ---- Total interest-bearing liabilities $784,964
$13,903 3.56% ======== ======= ==== Total deposits and other
borrowings 863,724 13,903 3.24% ------- ------ ---- Non
interest-bearing liabilities 9,818 Shareholders' equity 79,496
------ Total liabilities and shareholders' equity $953,038 ========
Net interest income $14,344 ======= Net interest spread 2.72% ====
Net interest margin 3.19% ==== The above tables are presented on a
tax equivalent basis. Republic First Bancorp, Inc. Summary of
Allowance for Loan Losses and Other Related Data (unaudited) Year
Three months ended ended Six months ended ------------------ -----
---------------- (dollar amounts in thousands) 6/30/09 3/31/09
6/30/08 12/31/08 6/30/09 6/30/08 ------- ------- ------- --------
------- ------- Balance at beginning of period $8,434 $8,409
$10,156 $8,508 $8,409 $8,508 Provisions charged to operating
expense 8,250 4,800 43 7,499 13,050 5,855 ----- ----- -- -----
------ ----- 16,684 13,209 10,199 16,007 21,459 14,363 Recoveries
on loans charged-off: Commercial - - - 119 - 117 Tax refund loans -
- - 77 - 69 Consumer 1 - - 3 1 2 --- --- --- --- --- --- Total
recoveries 1 - - 199 1 188 Loans charged-off: Commercial (645)
(4,772) (3,434) (7,778) (5,417) (7,778) Tax refund loans - - - - -
- Consumer (3) (3) (5) (19) (6) (13) -- -- -- --- -- --- Total
charged- off (648) (4,775) (3,439) (7,797) (5,423) (7,791) ----
------ ------ ------ ------ ------ Net charge-offs (647) (4,775)
(3,439) (7,598) (5,422) (7,603) ---- ------ ------ ------ ------
------ Balance at end of period $16,037 $8,434 $6,760 $8,409
$16,037 $6,760 ======= ====== ====== ====== ======= ====== Net
charge-offs as a percentage of average loans outstanding 0.35%
2.51% 1.73% 0.96% 1.44% 1.89% Allowance for loan losses as a
percentage of period-end loans 2.14% 1.12% 0.85% 1.07% 2.14% 0.85%
Republic First Bancorp, Inc. Summary of Non-Performing Loans and
Assets (unaudited) June March December September June 30, 31, 31,
30, 30, 2009 2009 2008 2008 2008 ---- ---- ---- ---- ----
Nonaccrual loans: Commercial real estate $15,262 $14,882 $16,424
$6,369 $2,366 Consumer and other 600 607 909 918 780 --- --- ---
--- --- Total nonaccrual loans 15,862 15,489 17,333 7,287 3,146
Loans past due 90 days or more and still accruing - 2,759 - - -
Renegotiated loans - - - - - --- --- --- --- --- Total
nonperforming loans 15,862 18,248 17,333 7,287 3,146 Other real
estate owned 10,016 10,016 8,580 8,580 14,245 ------ ------ -----
----- ------ Total nonperforming assets $25,878 $28,264 $25,913
$15,867 $17,391 ======= ======= ======= ======= =======
Nonperforming loans to total loans 2.12% 2.43% 2.21% 0.95% 0.40%
Nonperforming assets to total assets 2.76% 3.10% 2.72% 1.64% 1.84%
Nonperforming loan coverage 101% 46% 49% 93% 215% Allowance for
loan losses as a percentage of total period-end loans 2.14% 1.12%
1.07% 0.88% 0.85% Nonperforming assets/capital plus allowance for
loan losses 30% 33% 30% 18% 20% DATASOURCE: Republic First Bancorp,
Inc. CONTACT: Harry D. Madonna, CEO, +1-215-735-9938
Copyright