PHILADELPHIA, Oct. 29 /PRNewswire-FirstCall/ -- Republic First
Bancorp, Inc. (NASDAQ:FRBK), (the "Company") the holding company
for Republic First Bank (PA), today reported net income of
$185,000, or $.02 per share, for the quarter ended September 30,
2009. Chief Executive Officer's Statement In commenting on the
Company's financial results, Harry D. Madonna, Chief Executive
Officer, noted the following highlights: -- The Agreement and Plan
of Merger with Metro Bancorp Inc. (formerly, Pennsylvania Commerce
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
December 31, 2009. -- The Company continues to strengthen the
balance sheet and focus on asset quality. -- Core deposits
increased by $119.1 million, or 22%, over the past 12 months as we
make strong progress in building for the future. -- Liquidity
continues to improve resulting in the reduction of outside
borrowings by $100.7 million compared to September 30, 2008. --
Total loans have decreased by $61.3 million over the previous 12
months as a result of the ongoing effort to reduce exposure to
commercial real estate and reposition our portfolio. -- The
allowance for loan losses increased by 86% to $12.6 million at
September 30, 2009 compared to $6.8 million one year ago. --
Capital remains very strong with a Total Capital ratio of 12.45%
and a Leverage Ratio of 9.72% at September 30, 2009. -- We continue
to reposition for the pending merger with the addition of new
talent, products and services. Income Statement (dollars in
thousands, except per share data) Three months ended
------------------ % % 9/30/09 6/30/09 Change 9/30/08 Change
------- ------- ------ ------- ------ Total revenues* $7,055 $7,174
-2% $8,290 -15% Non-interest expenses 6,700 7,219 -7% 6,008 12% Net
income (loss) 185 (5,435) 103% 1,533 -88% Earnings (loss) per share
$0.02 $(0.51) 104% $0.14 -86% Nine months ended ----------------- %
9/30/09 9/30/08 Change ------- ------- ------ Total revenues*
$21,739 $24,017 -9% Non-interest expenses 22,404 18,517 21% Net
income (loss) (9,010) (56) -15989% Earnings (loss) per share
$(0.85) $(0.01) -8400% * Net interest income plus non-interest
income The Company reported net income of $185,000, or $0.02 per
diluted share, for the three months ended September 30, 2009,
compared to a net loss of $5.4 million, or $0.51 per share, for the
three months ended June 30, 2009. Non-interest expenses decreased
by 7% in the third quarter of 2009 compared to the prior quarter.
Balance Sheet (dollars in thousands) % % 9/30/09 9/30/08 Change
6/30/09 Change ------- ------- ------ ------- ------ Total assets
$952,451 $964,732 -1% $937,116 2% Total loans (net) 697,073 764,245
-9% 731,981 -5% Total deposits 823,638 729,487 13% 808,636 2% Total
core deposits* 650,823 531,755 22% 627,350 4% * Core deposits equal
total deposits less public and brokered certificates of deposit The
Company's ongoing effort to remix and strengthen the balance sheet
continues to show progress. Net loans decreased to $697.1 million
as of September 30, 2009, as the Company continues to reduce
concentrations in the commercial real estate portfolio. Core
deposits grew by 22% to $650.8 million as of September 30, 2009
compared to $531.8 million one year ago. Liquidity continues to
improve as the Company reduced outside borrowings by $100.7 million
over the past 12 months while increasing cash and cash equivalent
balances by $19.3 million over the same period. Core Deposits Core
deposits by type of account are as follows: (dollars in thousands)
3rd Qtr 2009 % % Cost of 9/30/09 9/30/08 Change 6/30/09 Change
Funds ------- ------- ------ ------- ------ -------- Demand non-
interest-bearing $92,017 $77,728 18% $91,642 0% 0.00% Demand
interest- bearing 47,418 32,432 46% 42,675 11% 0.64% Money market
and savings 303,111 240,055 26% 304,879 -1% 1.83% Certificates of
deposit 208,277 181,540 15% 188,154 11% 2.95% ------- ------- --
------- -- ---- Total core deposits $650,823 $531,755 22% $627,350
4% 1.84% ======== ======== == ======== == ==== Core deposits, which
exclude all public and brokered certificates of deposit, increased
to $650.8 million at September 30, 2009, an increase of $23.5
million, or 4%, from June 30, 2009 and an increase of $119.1
million, or 22%, compared to September 30, 2008. Lending The
following table sets forth the composition of the Company's loan
portfolio at the dates indicated. (dollars in thousands) % of % of
% of 9/30/09 Total 9/30/08 Total 6/30/09 Total ------- -----
------- ----- ------- ----- Commercial $85,881 12% $86,221 11%
$94,989 13% Owner Occupied 78,527 11% 78,450 10% 64,887 8% ------
-- ------ -- ------ -- Total Commercial 164,408 23% 164,671 21%
159,876 21% Consumer & Residential 20,586 3% 25,121 3% 22,184
3% Commercial Real Estate 524,723 74% 581,260 76% 565,958 76%
------- -- ------- -- ------- -- Gross loans $709,717 100% $771,052
100% $748,018 100% ======== === ======== === ======== === Asset
Quality The Company's asset quality ratios are highlighted below:
Quarter Ended ------------- 9/30/09 9/30/08 6/30/09 ------- -------
------- Nonperforming assets / total assets 3.09% 1.64% 2.76% Net
loan charge-offs / average total loans 1.92% 0.00% 0.35% Loan loss
reserve / gross loans 1.78% 0.88% 2.14% Nonperforming loan coverage
68% 93% 101% Nonperforming assets / capital and reserves 34% 20%
30% Non-performing assets were $29.4 million, or 3.09% of total
assets, as of September 30, 2009 compared to $25.9 million, or
2.76%, of total assets at June 30, 2009 and $15.9 million, or
1.64%, of total assets a year earlier. Capital The Company's
capital ratios at September 30, 2009 were: Republic Regulatory
First Guidelines Bancorp, "Well Inc. Capitalized" --------
------------- Leverage Ratio 9.72% 5.00% Tier I 11.20% 6.00% Total
Capital 12.45% 10.00% Total shareholders' equity was $72.8 million
at September 30, 2009 which represented a book value per share of
$6.82, 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 up to the applicable
limits 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. These factors include the success
of our planned merger with Metro, credit risks of lending
activities, changes in general economic conditions, price pressures
on loan and deposit products, and other factors detailed from time
to time in the Company's filings with the Securities and Exchange
Commission. 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,
except as may be required by applicable law or regulations.
Republic First Bancorp, Inc. Selected Consolidated Financial Data
(Unaudited) Three months ended ------------------ (dollars in
thousands, % % except per share amounts) 9/30/09 6/30/09 Change
9/30/08 Change ------- ------- ------ ------- ------ Income
Statement Data: Net interest income $6,805 $6,792 0% $7,618 -11%
Provision for loan losses 150 8,250 -98% 43 249% Non-interest
income 250 382 -35% 672 -63% Total revenues 7,055 7,174 -2% 8,290
-15% Non-interest expenses 6,700 7,219 -7% 6,008 12% Provision
(benefit) for income taxes 20 (2,860) -101% 706 -97% Net income
(loss) 185 (5,435) -103% 1,533 -88% Per Common Share Data: Net
income (loss): Basic $0.02 $(0.51) -104% $0.14 -86% Net income
(loss): Diluted 0.02 (0.51) -104% 0.14 -86% Book Value $6.82 $6.69
$7.47 Weighted average shares outstanding: Basic 10,666 10,656
10,581 Diluted 10,666 10,656 12,310 Balance Sheet Data: Total
assets $952,451 $937,116 2% Loans (net) 697,073 731,981 -5%
Allowance for loan losses 12,644 16,037 -21% Investment securities
109,104 80,927 35% Total deposits 823,638 808,636 2% Core deposits*
650,823 627,350 4% Other borrowed money 25,000 25,000 0%
Subordinated debt 22,476 22,476 0% Stockholders' equity 72,783
71,307 2% Capital: Stockholders' equity to total assets 7.64% 7.61%
Leverage ratio 9.72% 9.75% Risk based capital ratios: Tier 1 11.20%
10.83% Total Capital 12.45% 12.09% Performance Ratios: Cost of
funds 1.83% 1.98% 2.77% Deposit cost of funds 1.69% 1.84% 2.69% Net
interest margin 3.23% 3.25% 3.48% Return on average assets 0.08%
-2.36% 0.65% Return on average total stockholders' equity 1.02%
-28.88% 7.76% Asset Quality Net charge-offs to average loans
outstanding 1.92% 0.35% Nonperforming assets to total period-end
assets 3.09% 2.76% Allowance for loan losses to total period-end
loans 1.78% 2.14% Allowance for loan losses to nonperforming loans
68% 101% Nonperforming assets to capital and reserves 34% 30% Nine
months ended ----------------- (dollars in thousands, except per
share % amounts) 9/30/09 9/30/08 Change ------- ------- ------
Income Statement Data: Net interest income $20,455 $21,844 -6%
Provision for loan losses 13,200 5,898 124% Non-interest income
1,284 2,173 -41% Total revenues 21,739 24,017 -9% Non-interest
expenses 22,404 18,517 21% Provision (benefit) for income taxes
(4,855) (342) 1320% Net income (loss) (9,010) (56) 15989% Per
Common Share Data: Net income (loss): Basic $(0.85) $(0.01) 8400%
Net income (loss): Diluted (0.85) (0.01) 8400% Book Value $6.82
$7.47 Weighted average shares outstanding: Basic 10,651 10,463
Diluted 10,651 10,463 Balance Sheet Data: Total assets $952,451
$964,732 -1% Loans (net) 697,073 764,245 -9% Allowance for loan
losses 12,644 6,807 86% Investment securities 109,104 92,949 17%
Total deposits 823,638 729,487 13% Core deposits* 650,823 531,755
22% Other borrowed money 25,000 125,682 -80% Subordinated debt
22,476 22,476 0% Stockholders' equity 72,783 79,257 -8% Capital:
Stockholders' equity to total assets 7.64% 8.22% Leverage ratio
9.72% 11.02% Risk based capital ratios: Tier 1 11.20% 12.28% Total
Capital 12.45% 13.09% Performance Ratios: Cost of funds 1.96% 3.08%
Deposit cost of funds 1.84% 3.05% Net interest margin 3.24% 3.29%
Return on average assets -1.31% -0.01% Return on average total
stockholders' equity -15.95% -0.09% Asset Quality Net charge-offs
to average loans outstanding 1.60% 1.27% Nonperforming assets to
total period-end assets 3.09% 1.64% Allowance for loan losses to
total period-end loans 1.78% 0.88% Allowance for loan losses to
nonperforming loans 68% 93% Nonperforming assets to capital and
reserves 34% 18% * Core deposits equal total deposits less public
and brokered certificates of deposit Republic First Bancorp, Inc.
Average Balances and Net Interest Income (unaudited) For the three
months ended (dollars in thousands) September 30, 2009
------------------ Interest Average Income/ Yield/ Balance Expense
Rate ------- ------- ---- Interest-earning assets: Federal funds
sold and other interest- earning assets $26,250 $28 0.42%
Securities 82,039 1,036 5.05% Loans receivable 733,767 9,705 5.25%
------- ----- ---- Total interest-earning assets 842,056 10,769
5.07% Other assets 86,881 ------ Total assets $928,937 ========
Interest-bearing liabilities: Demand non interest-bearing $86,206
Demand interest-bearing 48,148 $78 0.64% Money market & savings
296,642 1,366 1.83% Time deposits 369,863 1,963 2.11% ------- -----
---- Total deposits 800,859 3,407 1.69% Total interest-bearing
deposits 714,653 3,407 1.89% ------- ----- ---- Other borrowings
47,476 501 4.19% ------ --- ---- Total interest-bearing liabilities
$762,129 $3,908 2.03% ======== ====== ==== Total deposits and other
borrowings 848,335 3,908 1.83% ------- ----- ---- Non
interest-bearing liabilities 8,897 Shareholders' equity 71,705
------ Total liabilities and shareholders' equity $928,937 ========
Net interest income $6,861 ====== Net interest spread 3.04% ====
Net interest margin 3.23% ==== For the three months ended (dollars
in thousands) June 30, 2009 ------------- Interest Average Income/
Yield/ Balance Expense Rate ------- ------- ---- Interest-earning
assets: Federal funds sold and other interest- earning assets
$9,955 $19 0.77% Securities 86,230 1,109 5.14% Loans receivable
747,725 9,863 5.29% ------- ----- ---- Total interest-earning
assets 843,910 10,991 5.22% Other assets 79,454 ------ Total assets
$923,364 ======== Interest-bearing liabilities: Demand non
interest-bearing $81,046 Demand interest-bearing 44,487 $75 0.68%
Money market & savings 281,368 1,374 1.96% Time deposits
383,161 2,180 2.28% ------- ----- ---- Total deposits 790,062 3,629
1.84% Total interest-bearing deposits 709,016 3,629 2.05% -------
----- ---- Other borrowings 47,690 514 4.32% ------ --- ---- Total
interest-bearing liabilities $756,706 $4,143 2.20% ======== ======
==== Total deposits and other borrowings 837,752 4,143 1.98%
------- ----- ---- Non interest-bearing liabilities 10,127
Shareholders' equity 75,485 ------ Total liabilities and
shareholders' equity $923,364 ======== Net interest income $6,848
====== Net interest spread 3.02% ==== Net interest margin 3.25%
==== For the three months ended (dollars in thousands) September
30, 2008 ------------------ Interest Average Income/ Yield/ Balance
Expense Rate ------- ------- ---- Interest-earning assets: Federal
funds sold and other interest- earning assets $8,568 $45 2.09%
Securities 92,525 1,334 5.77% Loans receivable 775,642 12,208 6.26%
------- ------ ---- Total interest-earning assets 876,735 13,587
6.17% Other assets 57,371 ------ Total assets $934,106 ========
Interest-bearing liabilities: Demand non interest-bearing $71,990
Demand interest-bearing 31,090 $68 0.87% Money market & savings
240,554 1,625 2.69% Time deposits 381,820 3,216 3.35% ------- -----
---- Total deposits 725,454 4,909 2.69% Total interest-bearing
deposits 653,464 4,909 2.99% ------- ----- ---- Other borrowings
122,709 1,005 3.26% ------- ----- ---- Total interest-bearing
liabilities $776,173 $5,914 3.03% ======== ====== ==== Total
deposits and other borrowings 848,163 5,914 2.77% ------- -----
---- Non interest-bearing liabilities 7,393 Shareholders' equity
78,550 ------ Total liabilities and shareholders' equity $934,106
======== Net interest income $7,673 ====== Net interest spread
3.14% ==== Net interest margin 3.48% ==== The above tables are
presented on a tax equivalent basis. Republic First Bancorp, Inc.
Average Balances and Net Interest Income (unaudited) (dollars in
For the nine months ended For the nine months ended thousands)
September 30, 2009 September 30, 2008 ------------------
------------------ Interest Interest Average Income/ Yield/ Average
Income/ Yield/ Balance Expense Rate Balance Expense Rate -------
------- ---- ------- ------- ---- Interest-earning assets: Federal
funds sold and other interest- earning assets $13,393 $50 0.50%
$10,478 $199 2.54% Securities 86,379 3,335 5.15% 87,506 3,814 5.81%
Loans receivable 750,550 29,558 5.27% 796,782 37,821 6.34% -------
------ ---- ------- ------ ---- Total interest- earning assets
850,322 32,943 5.18% 894,766 41,834 6.25% Other assets 72,651
51,915 ------ ------ Total assets $922,973 $946,681 ========
======== Interest-bearing liabilities: Demand non interest-bearing
$81,625 $76,487 Demand interest- bearing 44,930 $218 0.65% 34,760
$283 1.09% Money market & savings 268,481 3,841 1.91% 219,877
4,663 2.83% Time deposits 382,497 6,644 2.32% 402,235 11,825 3.93%
------- ----- ---- ------- ------ ---- Total deposits 777,533
10,703 1.84% 733,359 16,771 3.05% Total interest- bearing deposits
695,908 10,703 2.06% 656,872 16,771 3.41% ------- ------ ----
------- ------ ---- Other borrowings 60,816 1,618 3.56% 125,140
3,046 3.25% ------ ----- ---- ------- ----- ---- Total interest-
bearing liabilities $756,724 $12,321 2.18% $782,012 $19,817 3.38%
======== ======= ==== ======== ======= ==== Total deposits and
other borrowings 838,349 12,321 1.96% 858,499 19,817 3.08% -------
------ ---- ------- ------ ---- Non interest-bearing liabilities
9,106 8,955 Shareholders' equity 75,518 79,227 ------ ------ Total
liabilities and shareholders' equity $922,973 $946,681 ========
======== Net interest income $20,622 $22,017 ======= ======= Net
interest spread 3.00% 2.87% ==== ==== Net interest margin 3.24%
3.29% ==== ==== 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 Nine months ended ------------------ ----- -----------------
(dollars in thousands) 9/30/09 6/30/09 9/30/08 12/31/08 9/30/09
9/30/08 ------- ------- ------- -------- ------- ------- Balance at
beginning of period $16,037 $8,434 $6,760 $8,508 $8,409 $8,508
Provisions charged to operating expense 150 8,250 43 7,499 13,200
5,898 --- ----- -- ----- ------ ----- 16,187 16,684 6,803 16,007
21,609 14,406 Recoveries on loans charged-off: Commercial - - 2 119
- 119 Tax refund loans - - 8 77 - 77 Consumer 1 1 - 3 2 2 -- -- --
-- -- -- Total recoveries 1 1 10 199 2 198 Loans charged-off:
Commercial (3,544) (645) - (7,778) (8,961) (7,778) Tax refund loans
- - - - - - Consumer - (3) (6) (19) (6) (19) -- -- -- --- -- ---
Total charged-off (3,544) (648) (6) (7,797) (8,967) (7,797) ------
---- -- ------ ------ ------ Net charge-offs (3,543) (647) 4
(7,598) (8,965) (7,599) ------ ---- -- ------ ------ ------ Balance
at end of period $12,644 $16,037 $6,807 $8,409 $12,644 $6,807
======= ======= ====== ====== ======= ====== Net charge-offs as a
percentage of average loans outstanding 1.92% 0.35% 0.00% 0.96%
1.60% 1.27% Allowance for loan losses as a percentage of period-end
loans 1.78% 2.14% 0.88% 1.07% 1.78% 0.88% Republic First Bancorp,
Inc. Summary of Non-Performing Loans and Assets (unaudited)
(dollars in Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Thousands) 2009 2009 2009 2008 2008 ---- ---- ---- ---- ----
Non-accrual loans: Commercial real estate $17,997 $15,262 $14,882
$16,424 $6,369 Consumer and other 588 600 607 909 918 --- --- ---
--- --- Total non-accrual loans 18,585 15,862 15,489 17,333 7,287
Loans past due 90 days or more and still accruing - - 2,759 - -
Renegotiated loans - - - - - - - - - - Total non- performing loans
18,585 15,862 18,248 17,333 7,287 Other real estate owned 10,847
10,016 10,016 8,580 8,580 ------ ------ ------ ----- ----- Total
non-performing assets $29,432 $25,878 $28,264 $25,913 $15,867
======= ======= ======= ======= ======= Non-performing loans to
total loans 2.62% 2.12% 2.43% 2.21% 0.95% Non-performing assets to
total assets 3.09% 2.76% 3.10% 2.72% 1.64% Non-performing loan
coverage 68% 101% 46% 49% 93% Allowance for loan losses as a
percentage of total period- end loans 1.78% 2.14% 1.12% 1.07% 0.88%
Non-performing assets/capital plus allowance for loan losses 34%
30% 33% 30% 18% DATASOURCE: Republic First Bank CONTACT: Frank A.
Cavallaro, CFO, of Republic First Bancorp, Inc., +1-215-735-4422
Copyright