Republic First Bancorp, Inc. Reports $761,000 in Earnings for the First Quarter of 2001

Apr 18, 2001, 01:00 ET from Republic First Bancorp, Inc.

    PHILADELPHIA, April 18 /PRNewswire/ --
 Republic First Bancorp, Inc. (Nasdaq:   FRBK), parent Company of First Republic
 Bank of Philadelphia, PA and First Bank of Delaware (formerly Republic First
 Bank of Delaware), today reported $761,000 in earnings or $0.12 per diluted
 share for the quarter ended March 31, 2001 compared to $1.0 million or $0.16
 for the same period in 2000. The decrease reflected an estimated $.03 per
 share margin contraction resulting from the impact of prime rate loans and
 other immediately repricing assets.  Management estimates that two quarters
 are required for repricing certificates of deposit to regain those earnings,
 all other factors being equal.  An increased expense base also contributed to
 the decrease and reflected an expansion of the commercial banking group, which
 should continue to result in significant commercial loan and fee generation.
 Commercial and construction loan growth exceeded 21% in a year-to-year
 comparison.  "The Company continues to make tremendous progress in fashioning
 a balance sheet which is consistent with the Company's strategic plan", said
 Jere A. Young, President and Chief Executive Officer.  "We have been
 successful emphasizing core deposit and loan growth, while reducing the
 Company's dependence on other borrowings and investment securities", said
 Young.  Core deposits have increased $54.2 million or 46%, while commercial
 and construction loans have increased $59.7 million or 21% since March 31,
 2000.  Other borrowings have decreased $51.1 million or 26% from a year ago,
 reflecting lower cost core deposit growth, while gross investment securities
 have decreased $38.3 million or 20%, reflecting reinvestment in higher
 yielding commercial loans.
     "Although net interest income has increased from this time last year the
 Company continues to face net interest margin challenges within the declining
 interest rate environment, which certainly had an impact on the first quarter
 earnings," said Young.  "However, as successful business development efforts
 continue to allow us to reposition the balance sheet, with more variable rate
 loans, the margin should show a corresponding benefit when rates rise.  Net
 interest income for the quarter ended March 31, 2001 increased $365,000 or 9%
 from March 31, 2000, while fee income and service charge income increased
 $225,000 or 67%.
     Total non-interest expenses increased $1.0 million, approximately half of
 which resulted from increases in salary expense, when compared with the first
 quarter of 2000.  "The Company increased its experienced business development
 staff to include a construction lending team and a residential construction
 group, which have already added significant levels of loans to the Company's
 portfolio." said Young.  "We are very proud to have these teams of
 professionals on board and they are a natural compliment to our Business
 Banking focus," Young added.  "We expect these departments to continue
 contributing with significant incremental loan growth, to leverage their
 current expense base." Other non-interest expenses increased as a result of
 the Company's advertising campaign and technology upgrades, as well as
 infrastructure to support new products, which are anticipated to come "on-
 line" this summer.
     The Company's Delaware banking subsidiary, which commenced operations in
 June of 1999 and was recently renamed First Bank of Delaware, was profitable
 in the first quarter of 2001 as a result of the company's loan and core
 deposit growth and re-entry into the tax refund bank product program.  In
 addition, the Delaware Bank plans to introduce a consumer short-term loan
 product in the second quarter of the current year, according to Young.
      The Company remains well capitalized, as Tier I leverage capital and
 total risk-based capital at March 31, 2001 stood at 6.89% and 13.40%,
 respectively.  Total shareholders' equity stood at approximately $45.3 million
 with a book value per share of $7.32 at March 31, 2001, based on outstanding
 common shares of approximately 6.2 million.
     First Republic Bank, Philadelphia and First Bank of Delaware are full-
 service, state-chartered commercial banks, and members of the Federal Reserve
 System and their deposits are insured by the Federal Deposit Insurance
 Corporation (FDIC).  The Banks provide diversified financial products through
 their eight offices located in Abington, Ardmore, Bala Cynwyd, East Norriton
 and Philadelphia, Pennsylvania and two offices located in Delaware.
 
     The Company may from time to time make written or oral "forward-looking
 statements," including statements contained 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.
      Abbreviated Income Statement
      (Dollar amounts in thousands
          except per share data)
                                                Three Months Ended
                                                    March 31,
                                             2001              2000
 
      Net Interest Income                   $4,374            $4,009
      Provision for Loan Losses                157               200
      Other Income                             758               514
      Other Expenses                         3,839             2,825
      Income Taxes                             375               494
      Net Income                              $761            $1,004
 
      Basic EPS                              $0.12             $0.16
      Diluted EPS                            $0.12             $0.16
 
 
      Republic First Bancorp, Inc.
      Abbreviated Balance Sheet
      (Dollar amounts in thousands)
 
      Assets                                March 31  December 31   March 31
                                              2001        2000        2000
 
      Federal Funds Sold and other
       interest bearing cash                  $49,759     $29,667      $1,509
      Investments                             153,130     169,842     181,667
      Loans, net                              423,476     418,313     366,020
      Other Assets                             29,906      37,815      36,867
 
      Total Assets                           $656,271    $655,637    $586,063
 
      Liabilities and Stockholders'
       Equity:
      Core Deposits                          $173,357    $150,575    $119,127
      Time Deposits                           279,077     274,976     224,427
      Other Borrowings                        147,500     176,442     198,605
      Other Liabilities                        11,082      10,614       8,232
      Shareholders' Equity                     45,255      43,030      35,672
      Total Liabilities and Shareholders'
       Equity                                $656,271    $655,637    $586,063
 
 
     Republic First Bancorp, Inc.
 
                                                  At or For  the
                                                Three Months Ended
                                              Mar. 31        Mar. 31
     Financial Data:                            2001           2000
 
     Return on average assets                   0.47 %           0.70 %
 
     Return on average equity                   6.86 %           9.58 %
 
     Equity to Assets                           6.90 %           6.09 %
 
     Share information:
 
     Book Value per share                      $7.32            $5.78
 
     Shares o/s at period end              6,182,000        6,169,000
 
     Average diluted shares o/s            6,337,000        6,304,000
 
     Leverage capital ratio                     6.89 %           7.29 %
 
     Total risk based capital ratio            13.40 %          13.52 %
 
 
     Republic First Bancorp, Inc.
     Dollars in thousands
 
                                    Average Balance Sheet
 
                          Three months ended         Three months ended
                            March 31, 2001             March 31, 2000
     Interest-
      Earning                             Average                    Average
      Assets:       Average               Yield/  Average             Yield/
                    Balance   Interest    Cost    Balance   Interest   Cost
 
     Loans
      Receivable    $429,967   $9,151     8.61 %  $358,275   $7,501   8.39 %
 
     Investment
      Securities     163,143    2,599     6.37     195,069    3,204   6.57
 
     Federal Funds
      Sold            46,474      652     5.69         674        8   4.83
 
     Total
      interest-
      earning
      Assets         639,584   12,402     7.83     554,018   10,713   7.75
 
     Non-interest-
     earning assets   21,220                        21,182
 
     Total Assets   $660,804  $12,402             $575,200  $10,713
 
     Interest-bearing
      liabilities:
 
     Interest-bearing
      deposits      $392,530   $5,487     5.67 %  $271,702   $3,486    5.15 %
 
     Borrowed funds  169,088    2,541     6.09     226,905    3,218    5.69
 
     Total interest-
      bearing
      liabilities    561,618    8,028     5.80     498,607    6,704    5.39
 
     Cost of Funds   607,173    8,028     5.36     532,776    6,704    5.05
 
     Non-interest-
      bearing
      liabilities:     9,902                         7,719
 
     Total
      liabilities    617,075                       540,495
 
     Shareholder's
      Equity          43,729                        34,705
 
     Total
      liabilities &
      Shareholder's
      Equity        $660,804                      $575,200
 
     Net interest
      income                   $4,374                        $4,009
 
     Interest rate
      spread
                                          2.47 %                       2.70 %
 
     Net interest
      margin                              2.74 %                       2.89 %
 
 
     Republic First Bancorp, Inc.
     Dollars in thousands except per share data
 
     Credit Quality Ratios:              A t    o r    F o r    t h e
                                         Three mos. Twelve mos.  Three mos.
                                          ended       ended        ended
                                         Mar. 31,     Dec 31,     Mar. 31,
                                           2001        2000        2000
 
     Non-accrual and loans accruing,
      but past due 90 days or more        $3,480      $1,441      $3,668
 
     Restructured loans                        -       1,982           -
 
     Total non-performing loans            3,480       3,423       3,668
 
     OREO                                      -           -         643
 
     Total non-performing assets          $3,480      $3,423       4,311
 
     Non-performing loans as
      a percentage of total loans           0.81 %      0.81 %      0.99 %
 
     Nonperforming assets as
      a percentage of total assets          0.53 %      0.52 %      0.74 %
 
     Net charge offs-as a                   0.00 %     (0.05)%      0.00 %
      percentage of average loans YTD
 
     Allowance for loan losses
      as a % of average loans               0.98 %      1.05 %      0.95 %
 
     Allowance for loan losses
      to total loans                        0.98 %      0.96 %      0.92 %
 
     Allowance for loan losses
      to total non-performing loans       120.54 %    118.96 %     92.61 %
 
 

SOURCE Republic First Bancorp, Inc.
    PHILADELPHIA, April 18 /PRNewswire/ --
 Republic First Bancorp, Inc. (Nasdaq:   FRBK), parent Company of First Republic
 Bank of Philadelphia, PA and First Bank of Delaware (formerly Republic First
 Bank of Delaware), today reported $761,000 in earnings or $0.12 per diluted
 share for the quarter ended March 31, 2001 compared to $1.0 million or $0.16
 for the same period in 2000. The decrease reflected an estimated $.03 per
 share margin contraction resulting from the impact of prime rate loans and
 other immediately repricing assets.  Management estimates that two quarters
 are required for repricing certificates of deposit to regain those earnings,
 all other factors being equal.  An increased expense base also contributed to
 the decrease and reflected an expansion of the commercial banking group, which
 should continue to result in significant commercial loan and fee generation.
 Commercial and construction loan growth exceeded 21% in a year-to-year
 comparison.  "The Company continues to make tremendous progress in fashioning
 a balance sheet which is consistent with the Company's strategic plan", said
 Jere A. Young, President and Chief Executive Officer.  "We have been
 successful emphasizing core deposit and loan growth, while reducing the
 Company's dependence on other borrowings and investment securities", said
 Young.  Core deposits have increased $54.2 million or 46%, while commercial
 and construction loans have increased $59.7 million or 21% since March 31,
 2000.  Other borrowings have decreased $51.1 million or 26% from a year ago,
 reflecting lower cost core deposit growth, while gross investment securities
 have decreased $38.3 million or 20%, reflecting reinvestment in higher
 yielding commercial loans.
     "Although net interest income has increased from this time last year the
 Company continues to face net interest margin challenges within the declining
 interest rate environment, which certainly had an impact on the first quarter
 earnings," said Young.  "However, as successful business development efforts
 continue to allow us to reposition the balance sheet, with more variable rate
 loans, the margin should show a corresponding benefit when rates rise.  Net
 interest income for the quarter ended March 31, 2001 increased $365,000 or 9%
 from March 31, 2000, while fee income and service charge income increased
 $225,000 or 67%.
     Total non-interest expenses increased $1.0 million, approximately half of
 which resulted from increases in salary expense, when compared with the first
 quarter of 2000.  "The Company increased its experienced business development
 staff to include a construction lending team and a residential construction
 group, which have already added significant levels of loans to the Company's
 portfolio." said Young.  "We are very proud to have these teams of
 professionals on board and they are a natural compliment to our Business
 Banking focus," Young added.  "We expect these departments to continue
 contributing with significant incremental loan growth, to leverage their
 current expense base." Other non-interest expenses increased as a result of
 the Company's advertising campaign and technology upgrades, as well as
 infrastructure to support new products, which are anticipated to come "on-
 line" this summer.
     The Company's Delaware banking subsidiary, which commenced operations in
 June of 1999 and was recently renamed First Bank of Delaware, was profitable
 in the first quarter of 2001 as a result of the company's loan and core
 deposit growth and re-entry into the tax refund bank product program.  In
 addition, the Delaware Bank plans to introduce a consumer short-term loan
 product in the second quarter of the current year, according to Young.
      The Company remains well capitalized, as Tier I leverage capital and
 total risk-based capital at March 31, 2001 stood at 6.89% and 13.40%,
 respectively.  Total shareholders' equity stood at approximately $45.3 million
 with a book value per share of $7.32 at March 31, 2001, based on outstanding
 common shares of approximately 6.2 million.
     First Republic Bank, Philadelphia and First Bank of Delaware are full-
 service, state-chartered commercial banks, and members of the Federal Reserve
 System and their deposits are insured by the Federal Deposit Insurance
 Corporation (FDIC).  The Banks provide diversified financial products through
 their eight offices located in Abington, Ardmore, Bala Cynwyd, East Norriton
 and Philadelphia, Pennsylvania and two offices located in Delaware.
 
     The Company may from time to time make written or oral "forward-looking
 statements," including statements contained 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.
      Abbreviated Income Statement
      (Dollar amounts in thousands
          except per share data)
                                                Three Months Ended
                                                    March 31,
                                             2001              2000
 
      Net Interest Income                   $4,374            $4,009
      Provision for Loan Losses                157               200
      Other Income                             758               514
      Other Expenses                         3,839             2,825
      Income Taxes                             375               494
      Net Income                              $761            $1,004
 
      Basic EPS                              $0.12             $0.16
      Diluted EPS                            $0.12             $0.16
 
 
      Republic First Bancorp, Inc.
      Abbreviated Balance Sheet
      (Dollar amounts in thousands)
 
      Assets                                March 31  December 31   March 31
                                              2001        2000        2000
 
      Federal Funds Sold and other
       interest bearing cash                  $49,759     $29,667      $1,509
      Investments                             153,130     169,842     181,667
      Loans, net                              423,476     418,313     366,020
      Other Assets                             29,906      37,815      36,867
 
      Total Assets                           $656,271    $655,637    $586,063
 
      Liabilities and Stockholders'
       Equity:
      Core Deposits                          $173,357    $150,575    $119,127
      Time Deposits                           279,077     274,976     224,427
      Other Borrowings                        147,500     176,442     198,605
      Other Liabilities                        11,082      10,614       8,232
      Shareholders' Equity                     45,255      43,030      35,672
      Total Liabilities and Shareholders'
       Equity                                $656,271    $655,637    $586,063
 
 
     Republic First Bancorp, Inc.
 
                                                  At or For  the
                                                Three Months Ended
                                              Mar. 31        Mar. 31
     Financial Data:                            2001           2000
 
     Return on average assets                   0.47 %           0.70 %
 
     Return on average equity                   6.86 %           9.58 %
 
     Equity to Assets                           6.90 %           6.09 %
 
     Share information:
 
     Book Value per share                      $7.32            $5.78
 
     Shares o/s at period end              6,182,000        6,169,000
 
     Average diluted shares o/s            6,337,000        6,304,000
 
     Leverage capital ratio                     6.89 %           7.29 %
 
     Total risk based capital ratio            13.40 %          13.52 %
 
 
     Republic First Bancorp, Inc.
     Dollars in thousands
 
                                    Average Balance Sheet
 
                          Three months ended         Three months ended
                            March 31, 2001             March 31, 2000
     Interest-
      Earning                             Average                    Average
      Assets:       Average               Yield/  Average             Yield/
                    Balance   Interest    Cost    Balance   Interest   Cost
 
     Loans
      Receivable    $429,967   $9,151     8.61 %  $358,275   $7,501   8.39 %
 
     Investment
      Securities     163,143    2,599     6.37     195,069    3,204   6.57
 
     Federal Funds
      Sold            46,474      652     5.69         674        8   4.83
 
     Total
      interest-
      earning
      Assets         639,584   12,402     7.83     554,018   10,713   7.75
 
     Non-interest-
     earning assets   21,220                        21,182
 
     Total Assets   $660,804  $12,402             $575,200  $10,713
 
     Interest-bearing
      liabilities:
 
     Interest-bearing
      deposits      $392,530   $5,487     5.67 %  $271,702   $3,486    5.15 %
 
     Borrowed funds  169,088    2,541     6.09     226,905    3,218    5.69
 
     Total interest-
      bearing
      liabilities    561,618    8,028     5.80     498,607    6,704    5.39
 
     Cost of Funds   607,173    8,028     5.36     532,776    6,704    5.05
 
     Non-interest-
      bearing
      liabilities:     9,902                         7,719
 
     Total
      liabilities    617,075                       540,495
 
     Shareholder's
      Equity          43,729                        34,705
 
     Total
      liabilities &
      Shareholder's
      Equity        $660,804                      $575,200
 
     Net interest
      income                   $4,374                        $4,009
 
     Interest rate
      spread
                                          2.47 %                       2.70 %
 
     Net interest
      margin                              2.74 %                       2.89 %
 
 
     Republic First Bancorp, Inc.
     Dollars in thousands except per share data
 
     Credit Quality Ratios:              A t    o r    F o r    t h e
                                         Three mos. Twelve mos.  Three mos.
                                          ended       ended        ended
                                         Mar. 31,     Dec 31,     Mar. 31,
                                           2001        2000        2000
 
     Non-accrual and loans accruing,
      but past due 90 days or more        $3,480      $1,441      $3,668
 
     Restructured loans                        -       1,982           -
 
     Total non-performing loans            3,480       3,423       3,668
 
     OREO                                      -           -         643
 
     Total non-performing assets          $3,480      $3,423       4,311
 
     Non-performing loans as
      a percentage of total loans           0.81 %      0.81 %      0.99 %
 
     Nonperforming assets as
      a percentage of total assets          0.53 %      0.52 %      0.74 %
 
     Net charge offs-as a                   0.00 %     (0.05)%      0.00 %
      percentage of average loans YTD
 
     Allowance for loan losses
      as a % of average loans               0.98 %      1.05 %      0.95 %
 
     Allowance for loan losses
      to total loans                        0.98 %      0.96 %      0.92 %
 
     Allowance for loan losses
      to total non-performing loans       120.54 %    118.96 %     92.61 %
 
 SOURCE  Republic First Bancorp, Inc.