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 that first quarter 2008 earnings were impacted by an increased loan loss provision and OREO charges which amounted to $4.4 million or $.41 per share on an after-tax basis. Without those provisions and charges, earnings would have been $1.6 million or $.15 per diluted share compared to $2.1 million or $.20 per diluted share for the same quarter in 2007. The referenced loan loss provision and OREO charges reduced net income to a negative $2.8 million or a loss of $.26 per share. Harry D. Madonna, Chairman and Chief Executive Officer, stated, "As we advised in past press releases and in regulatory filings, the Bank experienced a significant increase in non-performing loans during the second half of 2007. The non-performing loan numbers were exacerbated by the problems in the general economy and the deterioration of real estate values which represent a substantial portion of the collateral for the non-performing loans. Management has been working to take control of all collateral securing the non-performing loans. This process includes working through bankruptcy and foreclosure proceedings, as well as obtaining "deeds in lieu" from borrowers. We also have been carefully reviewing our entire loan portfolio for potential problems. "The first quarter numbers reflect the Bank's progress in selling a number of the properties collateralizing non-performing loans, moving collateral into real estate owned, taking appropriate charge offs to reflect present market value of all real estate owned, and making significant additions to our allowance for loan losses, which should mitigate further losses from such loans. We will continue the process of selling the real estate owned and the assets which collateralize the remaining non-performing loans." Total shareholders' equity stood at $77.7 million with a book value per share of $7.48 at March 31, 2008, 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, 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. Attachment #1 Republic First Bancorp, Inc. Condensed Income Statement (Dollar amounts in thousands except per share data) (unaudited) Three Months Ended March 31, 2008 2007 Net Interest Income $7,222 $7,565 Provision for Loan Losses 5,812 80 Non-interest Income 665 640 Non-interest Expenses 6,448 4,995 Provision for income taxes (1,595) 1,026 Net Income $(2,778) $2,104 Diluted EPS $(0.26) $0.20 Republic First Bancorp, Inc. Condensed Balance Sheet (Dollar amounts in thousands) (unaudited) Assets March 31, December 31, March 31, 2008 2007 2007 Federal Funds Sold and Other Interest Bearing Cash $55,734 $62,229 $27,138 Investment Securities 86,360 90,299 109,518 Commercial and Other Loans 797,501 821,549 832,442 Allowance for Loan Losses (10,156) (8,508) (8,355) Other Assets 69,724 50,739 46,277 Total Assets $999,163 $1,016,308 $1,007,020 Liabilities and Shareholders' Equity: Transaction Accounts $322,433 $357,920 $457,903 Time Deposit Accounts 427,099 422,935 356,225 FHLB Advances and Trust Preferred Securities 164,008 144,774 102,982 Other Liabilities 7,946 10,212 12,984 Shareholders' Equity 77,677 80,467 76,926 Total Liabilities and Shareholders' Equity $999,163 $1,016,308 $1,007,020 Attachment #2 Republic First Bancorp, Inc. March 31, 2008 (unaudited) At or For the Three Months Ended March 31, March 31, Financial Data: 2008 2007 Return on average assets -1.16 % 0.88 % Return on average equity -13.90 % 11.26 % Share information: Book value per share $7.48 $7.36 Actual shares outstanding at period end, net of treasury shares (416,303) 10,384,000 10,446,000 Average diluted shares outstanding 10,504,000 10,758,000 Attachment #3 Republic First Bancorp, Inc. March 31, 2008 (Dollars in thousands) (unaudited) Credit Quality Ratios: March 31, December 31, March 31, 2008 2007 2007 Non-accrual and loans accruing, but past due 90 days or more $3,067 $22,280 $9,089 Restructured loans - - - Total non-performing loans 3,067 22,280 9,089 Other real estate owned 16,378 3,681 572 Total non-performing assets $19,445 $25,961 $9,661 Three Twelve Three Months Months Months Ended Ended Ended March 31, December 31, March 31, 2008 2007 2007 Allowance for Loan Losses Balance at beginning of period $8,508 $8,058 $8,058 Charge-offs: Commercial and construction 4,344 1,503 - Tax refund loans - - - Consumer 8 3 - Total charge-offs 4,352 1,506 - Recoveries: Commercial and construction 117 81 9 Tax refund loans 69 283 207 Consumer 2 2 1 Total recoveries 188 366 217 Net charge-offs (recoveries) 4,164 1,140 (217) Provision for loan losses 5,812 1,590 80 Balance at end of period $10,156 $8,508 $8,355 Non-performing loans as a percentage of total loans 0.38% 2.71% 1.09% Nonperforming assets as a percentage of total assets 1.95% 2.55% 0.96% Allowance for loan losses to total loans 1.27% 1.04% 1.00% Allowance for loan losses to total non-performing loans 331.14% 38.19% 91.92% Attachment #4 Republic First Bancorp, Inc. March 31, 2008 (Dollars in thousands) (unaudited) Quarter-to-Date Average Balance Sheet Three months ended Three months ended March 31, 2008 March 31, 2007 Interest-Earning Average Average Assets: Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Commercial and other loans $817,702 $13,453 6.62 % $798,716 $15,300 7.77 % Investment securities 87,545 1,252 5.72 109,568 1,542 5.63 Federal funds sold 12,271 96 3.15 19,767 235 4.82 Total interest- earning assets 917,518 14,801 6.49 928,051 17,077 7.46 Other assets 42,977 37,416 Total assets $960,495 $14,801 $965,467 $17,077 Interest-Bearing Liabilities: Interest-bearing deposits $633,604 $6,253 3.97 % $642,386 $7,393 4.67 % Borrowed funds 151,552 1,326 3.52 155,348 2,119 5.53 Interest-bearing liabilities 785,156 7,579 3.88 797,734 9,512 4.84 Non-interest and interest-bearing funding 868,549 7,579 3.51 875,553 9,512 4.41 Other liabilities: 11,558 14,118 Total liabilities 880,107 889,671 Shareholders' equity 80,388 75,796 Total liabilities & shareholders' equity $960,495 $965,467 Net interest income $7,222 $7,565 Net interest margin 3.17 % 3.31 % DATASOURCE: Republic First Bancorp, Inc. CONTACT: Paul Frenkiel, CFO of Republic First Bancorp, Inc., +1-215-735-4422, ext. 5255

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