EX-99.1 2 ex99-1.htm EXHIBIT 99.1 Exhibit 99.1
 
NEWS RELEASE
 
FOR RELEASE IMMEDIATELY
 
Contact: Paul Frenkiel, CFO
 
(215) 735-4422 ext. 5255

REPUBLIC FIRST BANCORP, INC.
REPORTS 62% INCREASE IN FOURTH QUARTER EARNINGS;
59% INCREASE IN 2005 EARNINGS

Philadelphia, PA, January 18, 2006 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported fourth quarter 2005 earnings of $2.6 million, a 62% increase over the prior year fourth quarter. Total fourth quarter 2005 diluted earnings per share amounted to $.30 compared to $.19* per share for the prior year fourth quarter, a 58% increase. Total year to date earnings increased to $8.9 million in 2005, compared to $5.6 million for the prior year, an increase of 59%. Total year to date diluted earnings per share increased to $1.02 compared to $.66 in the prior year, a 55% increase. Average commercial and construction loans grew in excess of 26% and core deposits grew in excess of 17% in fourth quarter 2005 compared to the comparable prior year period.

President Harry Madonna stated, “We are very pleased with the improved earnings of the Company and look forward to continued growth. Earnings growth was due to the significant increase in commercial loans outstanding, and the increase in the spread between the interest income and the cost of funds. We anticipate continued improvement in all areas of the Company. We look forward to making continued earnings progress, and further increasing shareholder value.”

Total shareholders’ equity stood at $63.4 million with a book value per share of $7.44 at December 31, 2005, based on outstanding common shares of approximately 8.5 million. As of that date, the Company continued 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 nine offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, Media and Philadelphia, Pennsylvania.

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.
 
# # #

* Per share value amounts were restated to reflect the 12% stock dividend paid June 7, 2005.
 
 
 
Republic First Bancorp, Inc.
                 
Condensed Income Statement
                 
(Dollar amounts in thousands
                 
except per share data)
                 
(unaudited)
                 
 
 
Three Months Ended
 
Twelve Months Ended
 
   
 December 31
 
 December 31
 
   
2005
2004 (2)
 
2005
2004 (2)
  
                   
Net Interest Income
 
$
7,772
  
$
5,991
  
$
29,158
  
$
18,851
  
Provision for Loan Losses
   
49
   
549
   
1,186
   
(314
) (1)
Other Income
   
808
   
1,042
   
3,614
   
4,466
  (1)
Other Expenses
   
4,593
   
4,104
   
18,207
   
15,346
 
Income Taxes
   
1,342
   
773
   
4,486
   
2,694
 
Income From Continuing Operations
   
2,596
   
1,607
   
8,893
   
5,591
 
Income From Discontinued Operations, Net of Tax
   
-
   
1,083
   
-
   
3,349
 
Net Income
 
$
2,596
  
$
2,690
  
$
8,893
  
$
8,940
  
                           
Diluted EPS From Continuing Operations
 
$
0.30
  
$
0.19
  (3)
$
1.02
  
$
0.66
   (3)(1)
Diluted EPS From Discontinued Operations, Net of Tax
   
-
   
0.12
   
-
   
0.39
 
Diluted EPS
 
$
0.30
  
$
0.31
  (3)
$
1.02
  
$
1.05
   (3)(1)
                           
Republic First Bancorp, Inc.
                         
Condensed Balance Sheet
                         
(Dollar amounts in thousands)
                         
(unaudited)
                         
                           
Assets
   
December 31,
 
 
December 31,
 
 
 
 
 
 
 
 
 
 
2005
 
 
2004 (2)
              
                           
Federal Funds Sold and Other Interest Bearing Cash
 
$
86,989
  
$
23,726
              
Investment Securities
   
44,161
   
49,160
             
Commercial and Other Loans
   
678,086
   
549,689
             
Allowance for Loan Losses
   
(7,617
)
  
(6,684
)
            
Other Assets
   
48,917
   
48,913
             
                           
Total Assets
 
$
850,536
  
$
664,804
              
                           
Liabilities and Shareholders' Equity:
                         
Transaction Accounts
 
$
381,931
  
$
323,532
              
Time Deposit Accounts
   
265,912
   
187,152
             
FHLB Advances and Trust Preferred Securities
   
130,053
   
92,276
             
Other Liabilities
   
9,242
   
8,016
             
Shareholders' Equity
   
63,398
   
53,828
             
Total Liabilities and Shareholders' Equity
 
$
850,536
  
$
664,804
              
 
(1)
 Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery. 
                           
(2)
 Prior year has been adjusted to exclude the First Bank of Delaware,reflecting the spin off of that bank effective January 1, 2005. 
                         
                           
(3)
 Prior year earnings per share has been restated for the 12% stock dividend paid June 7, 2005. 
 
 
Republic First Bancorp, Inc.
                    
December 31, 2005
                    
(unaudited)
                    
                     
   
At or For the
 
 
At or For the
 
 
 
Three Months Ended
 
 
Twelve Months Ended
 
 
 
December 31,
 
December 31,
 
 
December 31,
 
December 31,
 
Financial Data:
 
2005
 
2004 (1)
 
 
2005
 
2004 (1)
  
                     
Return on average assets on continuing operations
  
1.32
%
1.02
%
  
1.22
%
0.87
%   (2)
                     
Return on average equity on continuing operations
  
16.60
%
12.14
%
  
15.22
%
10.93
%   (2)
                     
Share information:
                    
                     
Book value per share
  
$7.44
 
$6.64
   
$7.44
 
$6.64
 
                     
Shares o/s at period end, net of Treasury shares
  
8,526,000
 
8,104,000
   
8,526,000
 
8,104,000
 
                     
Average diluted shares o/s
  
8,739,000
 
8,566,000
   
8,711,000
 
8,501,000
 
                     
                     
(1) Prior year amounts have been adjusted for the spin off of First Bank of Delaware effective Janaury 1, 2005.
                     
(2) Prior year reflects impact of a $1.3 million one time award arising from a legal settlement in connection with a loan recovery.

 
 
Republic First Bancorp, Inc.
          
Press release 12/31/2005
          
(Dollars in thousands)
          
(unaudited)
          
           
Credit Quality Ratios:
          
   
December 31
  
December 31
  
 
  
2005
  
2004 (1)
  
           
Non-accrual and loans accruing,
              
but past due 90 days or more
  
$
3,423
  
$
4,854
  
               
Restructured loans
    
-
   
-
 
               
Total non-performing loans
    
3,423
   
4,854
 
               
OREO
    
137
   
137
 
               
Total non-performing assets
  
$
3,560
  
$
4,991
  
               
Non-performing loans as
              
a percentage of total loans
    
0.50
%
  
0.88
%
               
Nonperforming assets as
              
a percentage of total assets
    
0.42
%
  
0.75
%
               
Allowance for loan losses
              
to total loans
    
1.12
%
  
1.22
%
               
Allowance for loan losses
              
to total non-performing loans
    
222.52
%
  
137.70
%
 
(1) Prior year has been adjusted to exclude the First Bank of Delaware loans, reflecting the spin off of that bank effective January 1, 2005.
 
 
Republic First Bancorp, Inc.
                          
Press release 12/31/2005
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Quarter-to-Date
          
       
Average Balance Sheet
          
                           
   
Three months ended
 
Three months ended
 
 
 
December 31, 2005
 
December 31, 2004 (1)
  
                           
           
Average
          
Average
  
Interest-Earning Assets:
  
Average
      
Yield/
  
Average
      
Yield/
  
   
Balance
  
Interest
  
Cost
  
Balance
  
Interest
  
Cost
  
                           
                           
Commercial and other loans
 
$
658,405
  
$
11,984
    
7.22
%
$
521,606
  
$
8,675
    
6.60
%
                                       
Investment securities
    
62,441
   
622
   
3.98
    
49,924
   
472
   
3.78
  
                                       
Federal funds sold
    
20,864
   
215
   
4.09
    
9,439
   
63
   
2.65
  
                                       
Total interest-earning assets
    
741,710
   
12,821
   
6.86
    
580,969
   
9,210
   
6.29
  
                                       
Other assets
    
41,329
               
43,730
             
                                       
Total assets
  
$
783,039
  
$
12,821
        
$
624,699
  
$
9,210
        
                                       
Interest-bearing liabilities:
                                      
                                       
Interest-bearing deposits
  
$
521,017
  
$
3,912
    
2.98
%
$
382,157
  
$
2,001
    
2.08
%
                                       
Borrowed funds
    
101,163
   
1,137
   
4.46
    
87,995
   
1,218
   
5.49
  
                                       
                                       
Interest-bearing liabilities
    
622,180
   
5,049
   
3.22
    
470,152
   
3,219
   
2.72
  
                                       
Non-interest and
                                     
interest-bearing funding
    
712,829
   
5,049
   
2.81
    
563,660
   
3,219
   
2.27
  
                                       
                                       
Other liabilities:
    
8,183
               
8,523
             
                                       
Total liabilities
    
721,012
               
572,183
             
                                       
Shareholders' equity
    
62,027
               
52,516
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
783,039
              
$
624,699
              
                                       
Net interest income
        
$
7,772
              
$
5,991
        
                                       
Net interest margin
                
4.16
%
              
4.09
%
                                       
(1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin off of that bank effective January 1, 2005.
 
Republic First Bancorp, Inc.
                          
Press release 12/31/2005
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Year-to-Date
          
       
Average Balance Sheet
          
                           
   
Twelve months ended
  
Twelve months ended
  
   
December 31, 2005
  
December 31, 2004 (1)
  
                           
           
Average
          
Average
  
Interest-Earning Assets:
  
Average
      
Yield/
  
Average
      
Yield/
  
   
Balance
  
Interest
  
Cost
  
Balance
  
Interest
  
Cost
  
                           
                           
Commercial and other loans
 
$
602,031
  
$
42,331
    
7.03
%
$
493,635
  
$
31,006
    
6.28
%
                                       
Investment securities
    
51,285
   
1,972
   
3.85
    
59,764
   
2,030
   
3.40
  
                                       
Federal funds sold
    
36,587
   
1,078
   
2.95
    
45,430
   
563
   
1.24
  
                                       
Total interest-earning assets
    
689,903
   
45,381
   
6.58
    
598,829
   
33,599
   
5.61
  
                                       
Other assets
    
41,238
               
42,433
             
                                       
Total assets
  
$
731,141
  
$
45,381
        
$
641,262
  
$
33,599
        
                                       
Interest-bearing liabilities:
                                      
                                       
                                       
Interest-bearing deposits
  
$
499,876
  
$
13,147
    
2.63
%
$
370,750
  
$
7,487
    
2.02
%
                                       
Borrowed funds
    
75,875
   
3,076
   
4.05
    
124,303
   
7,261
   
5.84
  
                                       
                                       
Interest-bearing liabilities
    
575,751
   
16,223
   
2.82
    
495,053
   
14,748
   
2.98
  
                                       
Non-interest and
                                     
interest-bearing funding
    
664,453
   
16,223
   
2.44
    
580,211
   
14,748
   
2.54
  
                                       
                                       
Other liabilities:
    
8,263
               
9,875
             
                                       
Total liabilities
    
672,716
               
590,086
             
                                       
Shareholders' equity
    
58,425
               
51,176
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
731,141
              
$
641,262
              
                                       
Net interest income
        
$
29,158
              
$
18,851
        
                                       
Net interest margin
                
4.23
%
              
3.15
%
                                       
(1) Prior year has been adjusted to exclude the First Bank of Delaware, reflecting the spin off of that bank effective January 1, 2005.