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 14% INCREASE IN ANNUAL 2006 EARNINGS

Philadelphia, PA, January 18, 2007 - Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported that earnings for 2006 were $10.1 million or $1.04 per diluted share, compared to $8.9 million or $.93* per diluted share, a 14% increase in earnings over the comparable prior year period. Fourth quarter 2006 earnings amounted to $2.5 million compared to $2.6 million in the prior year or $.25 per diluted share, compared to $.27 in the same quarter in 2005. Average loans increased 17% in fourth quarter 2006, offsetting the impact of a reduction in net interest margin to 3.71% in that quarter compared to 4.16% in the prior year. Loan demand continues to be strong, and core deposit growth will be emphasized in 2007, as the primary drivers to increasing income in 2007. The improvement in 2006 earnings reflected the growth in loan volume. Average loans grew in excess of 21% for full year 2006 compared to 2005.

Management believes that overall credit quality continues to be strong. Total non-performing loans were $6.9 million at December 31, 2006, a reduction of $3.1 million or 30.6%, from the balance at September 30, 2006. The reduction was due to a combination of payoffs and a return of loans to full accrual status in the fourth quarter of 2006.

Harry Madonna, Chairman and Chief Executive Officer, stated, “We are very pleased with the continuing improvement in earnings of the Company and at the same time successfully opening two new branches. Earnings growth was due to the significant increase in commercial loans outstanding. We anticipate continued growth in earnings with the addition of at least two new branches each year. We look forward to future earnings in excess of our peer group, and further increasing shareholder value.”

Total shareholders’ equity stood at $74.7 million with a book value per share of $7.87 at December 31, 2006, based on outstanding common shares of approximately 9.5 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, East Norriton, 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.
 
 
 
 
# # #

* Per share and book value amounts were restated to reflect the 10% stock dividend paid May 17, 2006.
 
 

 
                   
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
  
 
  
2006
  
2005 (1)
  
2006
  
2005 (1)
  
 
                  
Net Interest Income
 
$
8,244
  
$
7,772
  
$
34,066
  
$
29,158
  
Provision for Loan Losses
   
(10
)
  
49
   
1,364
   
1,186
 
Non-interest Income
   
807
   
808
   
3,640
   
3,614
 
Non-interest Expenses
   
5,351
   
4,593
   
21,017
   
18,207
 
Provision for income taxes
   
1,225
   
1,342
   
5,207
   
4,486
 
Net Income
 
$
2,485
  
$
2,596
  
$
10,118
  
$
8,893
  
 
                          
Diluted EPS
 
$
0.25
  
$
0.27
  
$
1.04
  
$
0.93
  
 
                          
Republic First Bancorp, Inc.
                         
Condensed Balance Sheet
                         
(Dollar amounts in thousands)
                         
(unaudited)
                         
 
                          
 
    
December 31,
 
 
December 31,
 
 
 
 
 
 
 
 
 
 
2006
 
 
2005
             
Assets
                         
Federal Funds Sold and Other Interest Bearing Cash
 
$
63,673
  
$
86,989
              
Investment Securities
   
109,176
   
44,161
             
Commercial and Other Loans
   
799,335
   
678,086
             
Allowance for Loan Losses
   
(8,058
)
  
(7,617
)
            
Other Assets
   
44,437
   
49,236
             
 
                          
Total Assets
 
$
1,008,563
  
$
850,855
              
 
                          
Liabilities and Shareholders' Equity:
                         
Transaction Accounts
 
$
385,950
  
$
381,931
              
Time Deposit Accounts
   
368,823
   
265,912
             
FHLB Advances and Trust Preferred Securities
   
165,909
   
130,053
             
Other Liabilities
   
13,170
   
9,282
             
Shareholders' Equity
   
74,711
   
63,677
             
Total Liabilities and Shareholders' Equity
 
$
1,008,563
  
$
850,855
              
 
                          
 
                          
(1) EPS has been restated for the 10% stock dividend paid May 17, 2006.
            
                           
                           
 
 
 
 
 

                            
Republic First Bancorp, Inc.
                           
December 31, 2006
                           
(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:
  
2006
  
2005
      
 2006
  
2005
      
                            
Return on average assets
    
1.07
% 
  
1.32
%
        
1.19
% 
  
1.22
%
      
                                       
Return on average equity
    
13.43
% 
  
16.60
%
        
14.59
% 
  
15.22
%
      
                                       
Share information:
                                      
                                       
Book value per share
  
$
7.87
  
$
6.79
    
(1)
 
$
7.87
  
$
6.79
    
(1)
 
                                       
Actual shares outstanding at period end, net of
                                      
     treasury shares (250,555)
    
9,496,000
   
9,379,000
   
(1)
 
  
9,496,000
   
9,379,000
   
(1)
 
                                       
Average diluted shares outstanding
    
9,744,000
   
9,588,000
   
(1)
 
  
9,721,000
   
9,577,000
   
(1)
 
                                       
                                       
(1) EPS has been restated for the 10% stock dividend paid May 17, 2006.
          
                                       
                                       
                                       
 
 
 
 

 
          
           
Republic First Bancorp, Inc.
          
December 31, 2006
          
(Dollars in thousands)
          
(unaudited)
          
           
Credit Quality Ratios:
  
 
 
 
 
 
 
December 31
 
December 31
 
 
 
2006
 
2005
  
           
Non-accrual and loans accruing,
          
but past due 90 days or more
  
$
6,916
  
$
3,423
  
               
Restructured loans
    
-
   
-
 
               
Total non-performing loans
    
6,916
   
3,423
 
               
Other real estate owned
    
572
   
137
 
               
Total non-performing assets
  
$
7,488
  
$
3,560
  
               
Non-performing loans as
              
a percentage of total loans
    
0.87
%
  
0.50
%
               
Nonperforming assets as
              
a percentage of total assets
    
0.74
%
  
0.42
%
               
Allowance for loan losses
              
to total loans
    
1.01
%
  
1.12
%
               
Allowance for loan losses
              
to total non-performing loans
    
116.51
%
  
222.52
%
               
               
               
 
 
 
 
 

                           
Republic First Bancorp, Inc.
                          
December 31, 2006
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Quarter-to-Date
      
       
Average Balance Sheet
      
                           
   
Three months ended
  
Three months ended
  
   
December 31, 2006
 
December 31, 2005
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
Average
 
 
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest
 
Cost
 
Balance
 
Interest
 
Cost
  
Interest-Earning Assets:
                          
                           
Commercial and other loans
 
$
770,473
  
$
15,481
    
7.97
%    
$
658,405
  
$
11,984
    
7.22
%
                                       
Investment securities
    
83,524
   
1,209
   
5.79
    
62,441
   
622
   
3.98
  
                                       
Federal funds sold
    
28,390
   
391
   
5.46
    
20,864
   
215
   
4.09
  
                                       
Total interest-earning assets
    
882,387
   
17,081
   
7.68
    
741,710
   
12,821
   
6.86
  
                                       
Other assets
    
37,410
               
41,329
             
                                       
Total assets
  
$
919,797
  
$
17,081
        
$
783,039
  
$
12,821
        
                                       
Interest-bearing liabilities:
                                      
                                       
                                       
Interest-bearing deposits
  
$
658,955
  
$
7,502
    
4.52
%
$
521,017
  
$
3,912
    
2.98
%
                                       
Borrowed funds
    
94,561
   
1,335
   
5.60
    
101,163
   
1,137
   
4.46
  
                                       
                                       
Interest-bearing liabilities
    
753,516
   
8,837
   
4.65
    
622,180
   
5,049
   
3.22
  
                                       
Non-interest and
                                     
interest-bearing funding
    
833,141
   
8,837
   
4.21
    
712,829
   
5,049
   
2.81
  
                                       
                                       
Other liabilities:
    
13,263
               
8,183
             
                                       
Total liabilities
    
846,404
               
721,012
             
                                       
Shareholders' equity
    
73,393
               
62,027
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
919,797
              
$
783,039
              
                                       
Net interest income
        
$
8,244
              
$
7,772
        
                                       
Net interest margin
                
3.71
%
              
4.16
%
                                       
                                       
                                       
 
 
 
 
 

Republic First Bancorp, Inc.
                          
December 31, 2006
                          
(Dollars in thousands )
                          
(unaudited)
                          
       
Year-to-Date
    
       
Average Balance Sheet
    
                           
   
Twelve months ended
 
Twelve months ended
 
 
 
December 31, 2006
 
December 31, 2005
  
                           
           
Average
 
 
 
 
 
Average
 
 
 
Average
 
 
 
Yield/
 
Average
 
 
 
Yield/
 
 
 
Balance
 
Interest
 
Cost
 
Balance
 
Interest
  
Cost
  
Interest-Earning Assets:
                          
                           
Commercial and other loans
 
$
728,754
  
$
58,254
    
7.99
%   
$
602,031
  
$
42,331
    
7.03
%
                                       
Investment securities
    
57,163
   
3,200
   
5.60
    
51,285
   
1,972
   
3.85
  
                                       
Federal funds sold
    
25,884
   
1,291
   
4.99
    
36,587
   
1,078
   
2.95
  
                                       
Total interest-earning assets
    
811,801
   
62,745
   
7.73
    
689,903
   
45,381
   
6.58
  
                                       
Other assets
    
36,985
               
41,239
             
                                       
Total assets
  
$
848,786
  
$
62,745
        
$
731,142
  
$
45,381
        
                                       
Interest-bearing liabilities:
                                      
                                       
                                       
Interest-bearing deposits
  
$
597,637
  
$
23,783
    
3.98
%
$
499,876
  
$
13,147
    
2.63
%
                                       
Borrowed funds
    
88,609
   
4,896
   
5.53
    
75,875
   
3,076
   
4.05
  
                                       
                                       
Interest-bearing liabilities
    
686,246
   
28,679
   
4.18
    
575,751
   
16,223
   
2.82
  
                                       
Non-interest and
                                     
interest-bearing funding
    
768,479
   
28,679
   
3.73
    
664,453
   
16,223
   
2.44
  
                                       
                                       
Other liabilities:
    
10,981
               
8,242
             
                                       
Total liabilities
    
779,460
               
672,695
             
                                       
Shareholders' equity
    
69,326
               
58,447
             
                                       
Total liabilities &
                                     
shareholders' equity
  
$
848,786
              
$
731,142
              
                                       
Net interest income
        
$
34,066
              
$
29,158
        
                                       
Net interest margin
                
4.20
%
              
4.23
%