PHILADELPHIA, April 23, 2014 /PRNewswire/ -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the three month period ended March 31, 2014.  The Company has recorded net income of $0.8 million, or $0.03 per share, for the first quarter of 2014 compared to net income of $1.0 million, or $0.04 per share, for the first quarter of 2013.

"The grand opening of our new store in Cherry Hill, NJ during the first quarter has contributed to a wave of momentum that we look to build upon as we deliver the message that 'The Power of Red is Back'," said Harry D. Madonna, the Company's Chairman and Chief Executive Officer. "Our first quarter financial results are a positive contribution to this momentum that we hope to ride throughout the new year."

To support the planned growth strategy, the Company recently announced that it completed the sale of $45 million of common stock through a private placement offering.  The stock was sold at a price of $3.80 per share.

"The Power of Red is Back" is an aggressive expansion plan beginning in Southern New Jersey and continuing throughout Metro Philadelphia.  During the first quarter the Company opened a new store in Cherry Hill, NJ utilizing its new and distinctive glass building. The revolutionary design of this new location represents the Bank's commitment to world-class service and convenience for its customers. The grand opening for next location to utilize the new building will be on May 10, 2014 in Voorhees, NJ. There are plans for additional stores in Marlton, Moorestown, Mount Holly, Medford, Glassboro, Washington Township and a second store in Cherry Hill.

Highlights for the Period Ending March 31, 2014

• Core deposits increased by $60.4 million $869.6 million, or 7%, as of March 31, 2014 compared to $809.2 million as of March 31, 2013 while the cost of funds on core deposits decreased to 0.35% for the quarter ended March 31, 2014 compared to 0.43% for the quarter ended March 31, 2013.
• Total loans increased by $69.7 million, or 11%, to $696.8 million as of March 31, 2014 compared to $627.1 million at March 31, 2013.
• The net interest margin increased to 3.86% for the quarter ended March 31, 2014 compared to 3.61% for the quarter ended March 31, 2013 despite the challenging interest rate environment.
• SBA lending continued to be a focal point of the Company's lending strategy. More than $13 million in new SBA loans were originated during the quarter ended March 31, 2014. Our team is currently ranked as the #1 SBA lender in the tri-state footprint of Pennsylvania, New Jersey and Delaware.
• Asset quality improved as non-performing loans decreased by $4.7 million, or 31%, to $10.4 million, or 1.49% of total loans, at March 31, 2014 compared to $15.1 million, or 2.41% of total loans as of March 31, 2013.
• The percentage of non-performing assets to capital and reserves improved to 18% as of March 31, 2014 compared to 29% as of March 31, 2013. The non-performing loan coverage ratio increased to 115% as of March 31, 2014 compared to 62% as of March 31, 2013.
• The Company's Total Risk-Based Capital ratio was 11.29% and Tier I Leverage Ratio was 8.86% at March 31, 2014.
• Tangible book value per share as of March 31, 2014 was $2.50.
• After giving pro-forma effect to the recent stock offering the Company's Total Risk Based Capital Ratio increased to 16.64%, the Tier I Legerage Ratio is 13.59% and tangible book value is $2.91 per share at March 31, 2014.

The Company's capital ratios at March 31, 2014 and on a pro-forma basis after giving effect to the common stock offering were as follows:

Income Statement

The Company reported net income of $0.8 million, or $0.03 per share, for the three month period ended March 31, 2014, compared to net income of $1.0 million, or $0.04 per share, for the three month period ended March 31, 2013.

The Company continues to lower its cost of funds as evidenced by a decrease of 10 basis points to 0.48% for the three month period ended March 31, 2014, compared to 0.58% for the three month period ended March 31, 2013. The net interest margin increased to 3.86% for the three month period ended March 31, 2014 compared to 3.61% for the three month period ended March 31, 2013.

Non-interest income decreased to $1.9 million for the three month period ended March 31, 2014 compared to $2.2 million for the three month period ended March 31, 2013, primarily due to gains on the sale of investment securities of $0.7 million which were recognized during the three month period ended March 31, 2013.

Non-interest expenses increased by $0.7 million, or 8%, to $9.8 million for the three month period ended March 31, 2014 compared to $9.1 million in the prior year period. 

Balance Sheet

The major components of the balance sheet are as follows (dollars in thousands):

Net loans increased by $67.1 million, or 11%, as of March 31, 2014 compared to March 31, 2013.  Core deposits grew by $60.4 million to $869.6 million as of March 31, 2014 compared to $809.2 million as of March 31, 2013.

Core Deposits

Core deposits by type of account are as follows (dollars in thousands):

Core deposits increased to $869.6 million at March 31, 2014 compared to $809.2 million at March 31, 2013 as the Company continues to focus its effort on the gathering of low-cost core deposits. The Company recognized strong growth in demand account balances on a year to year basis, while at the same time reducing the overall deposit cost of funds to 0.37% for the three month period ending March 31, 2014 compared to 0.46% for the three month period ending March 31, 2013. The retail banking strategy has also enabled the Company to significantly reduce its dependence on wholesale funding sources such as brokered and internet-based certificates of deposit.

Lending

Loans by type are as follows (dollars in thousands):

Gross loans increased by $69.7 million to $696.8 million at March 31, 2014 compared to $627.1 million at March 31, 2013 as a result of an increase in quality loan demand over the last twelve months and continued success with our relationship banking model. 

Asset Quality

The Company's non-performing asset balances and asset quality ratios are highlighted below:

Non-performing assets decreased by $9.3 million to $14.1 million, or 1.44% of total assets, at March 31, 2014, compared to $23.4 million, or 2.52% of total assets, as of March 31, 2013.  The allowance for loan losses as a percentage of non-performing loans increased to 115% as of March 31, 2014, compared to 62%  as of March 31, 2013.  The ratio of non-performing assets to capital and reserves improved to 18% as of March 31, 2014 compared to 29% as of March 31, 2013.

Capital

On April 22, 2014, the Company announced the closing of a private placement offering of common stock in the amount of $45 million.  Total shareholders' equity was $65.1 million at March 31, 2014 which represented a book value per share of $2.50, based on common shares outstanding of approximately 26.0 million.  After giving pro-forma effect to the offering, total shareholders' equity would have increased to $110.1 million and book value per share would have been $2.91 per share at March 31, 2014.

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., 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 fourteen offices located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Haddonfield, Cherry Hill and Voorhees, New Jersey. For more information about Republic Bank, visit myrepublicbank.com.

Forward Looking Statements

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. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.  For example, risks and uncertainties can arise with changes in: general economic conditions, including turmoil in the financial markets and related efforts of government agencies to stabilize the financial system; the adequacy of our allowance for loan losses and our methodology for determining such allowance; adverse changes in our loan portfolio and credit risk-related losses and expenses; concentrations within our loan portfolio, including our exposure to commercial real estate loans, and to our primary service area; changes in interest rates; business conditions in the financial services industry, including competitive pressure among financial services companies, new service and product offerings by competitors, price pressures and similar items; deposit flows; loan demand; the regulatory environment, including evolving banking industry standards, changes in legislation or regulation; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; our securities portfolio and the valuation of our securities; accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements; rapidly changing technology; litigation liabilities, including costs, expenses, settlements and judgments; and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.  You should carefully review the risk factors described in the Form 10-K for the year ended December 31, 2013 and other documents the Company files from time to time with the Securities and Exchange Commission. The words "would be," "could be," "should be," "probability," "risk," "target," "objective," "may," "will," "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect" and similar expressions or variations on such 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 U.S. 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.

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SOURCE Republic First Bancorp, Inc.