PHILADELPHIA, March 4 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. , (the "Company") the holding company for Republic First Bank (PA), today reported revised fourth quarter earnings. Due primarily to a net impairment charge of approximately $.09 per diluted share on a bank pooled trust preferred security, the Company reported a fourth quarter 2008 net loss of $416,000 or $.04 per diluted share, compared to previously reported fourth quarter 2008 net income of $505,000 or $.05 per diluted share. The Company reported a net loss of $472,000 or $.04 per diluted share for 2008 compared to net income of $449,000 or $.04 per diluted share as previously reported.
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 twelve 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.
Republic First Bancorp, Inc. Selected Consolidated Financial Data (Unaudited) At or for the Three months ended (in thousands, except ------------------ per share % % amounts) 12/31/08 9/30/08 Change 12/31/07 Change -------- ------- ------ -------- ------ Income Statement Data: Net interest income $7,051 $7,618 -7% $7,160 -2% Provision for loan losses 1,601 43 3623% 165 870% Noninterest income (loss) (931) 672 -239% 918 -201% Total revenues 6,120 8,290 -26% 8,078 -24% Noninterest operating expenses 5,370 6,008 -11% 5,598 -4% Provision (benefit) for income taxes (435) 706 -162% 738 -159% Net income (loss) (416) 1,533 -127% 1,577 -126% Per Common Share Data: Net income (loss): Basic $(0.04) $0.14 -129% $0.15 -127% Net income (loss): Diluted (0.04) 0.14 -129% 0.15 -127% Book Value $7.46 $7.47 $7.80 Weighted average shares outstanding: Basic 10,623 10,581 10,320 Diluted 10,623 12,310 10,556 Balance Sheet Data: Total assets $951,980 $964,732 -1% Loans (net) 774,673 764,245 1% Allowance for loan losses 8,409 6,807 24% Investment securities - AFS 83,032 86,345 -4% Investment securities - HTM 198 203 -2% Restricted stock 6,836 6,401 7% Federal funds sold 21,159 38,382 -45% Total deposits 739,167 729,487 1% Core deposits* 345,501 350,215 -1% FHLB and overnight advances 102,309 125,682 -19% Trust preferred 22,476 22,476 0% Stockholders' equity 79,327 79,257 0% Capital: Stockholders' equity to total assets 8.33% 8.22% Leverage ratio 11.14% 11.02% Risk based capital ratios: Tier 1 12.26% 12.28% Total Capital 13.26% 13.09% Performance Ratios: Cost of funds 2.51% 2.77% 4.20% Deposit cost of funds 2.50% 2.69% 4.09% Net interest margin 3.25% 3.48% 3.11% Return on average assets -0.18% 0.65% 0.65% Return on average total stockholders' equity -2.08% 7.76% 7.88% Asset Quality Net charge-offs to average loans outstanding 0.00% 0.00% Nonperforming assets to total period-end assets 2.72% 1.64% Allowance for loan losses to total period- end loans 1.07% 0.88% Allowance for loan losses to nonperforming loans 49% 93% Nonperforming assets to capital and reserves 30% 18% At or for the Twelve months ended (in thousands, except ------------------- per share % amounts) 12/31/08 12/31/07 Change -------- -------- ------ Income Statement Data: Net interest income $28,895 $30,039 -4% Provision for loan losses 7,499 1,590 372% Noninterest income (loss) 1,242 3,073 -60% Total revenues 30,137 33,112 -9% Noninterest operating expenses 23,887 21,364 12% Provision (benefit) for income taxes (777) 3,273 -124% Net income (loss) (472) 6,885 -107% Per Common Share Data: Net income (loss): Basic $(0.04) $0.66 -106% Net income (loss): Diluted (0.04) 0.65 -106% Book Value $7.46 $7.80 Weighted average shares outstanding: Basic 10,503 10,390 Diluted 10,503 10,662 Balance Sheet Data: Total assets $951,980 $1,016,308 -6% Loans (net) 774,673 813,041 -5% Allowance for loan losses 8,409 8,508 -1% Investment securities - AFS 83,032 83,659 -1% Investment securities - HTM 198 282 -30% Restricted stock 6,836 6,358 8% Federal funds sold 21,159 61,909 -66% Total deposits 739,167 780,855 -5% Core deposits* 345,501 357,920 -3% FHLB and overnight advances 102,309 133,433 -23% Trust preferred 22,476 11,341 98% Stockholders' equity 79,327 80,467 -1% Capital: Stockholders' equity to total assets 8.33% 7.92% Leverage ratio 11.14% 9.44% Risk based capital ratios: Tier 1 12.26% 10.07% Total Capital 13.26% 11.01% Performance Ratios: Cost of funds 2.94% 4.36% Deposit cost of funds 2.92% 4.18% Net interest margin 3.28% 3.26% Return on average assets -0.05% 0.71% Return on average total stockholders' equity -0.60% 8.86% Asset Quality Net charge-offs to average loans outstanding 0.96% 0.14% Nonperforming assets to total period-end assets 2.72% 2.55% Allowance for loan losses to total period- end loans 1.07% 1.04% Allowance for loan losses to nonperforming loans 49% 38% Nonperforming assets to capital and reserves 30% 29% * Core deposits exclude certificates of deposit Republic First Bancorp, Inc. Average Balances and Net Interest Income (unaudited) For the three For the three months ended months ended December 31, 2008 September 30, 2008 ----------------- ------------------ Interest-earning assets: Interest Interest (Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ------- ------- ---- ------- ------- ---- Federal funds sold and other interest- earning assets $7,863 $19 0.96% $8,568 $45 2.09% Securities 94,903 1,321 5.57% 92,525 1,334 5.77% Loans receivable 767,597 11,025 5.71% 775,642 12,208 6.26% ------- ------ ---- ------- ------ ---- Total interest- earning assets 870,363 12,365 5.65% 876,735 13,587 6.17% Other assets 49,664 57,371 ------ ------ Total assets $920,027 $934,106 ======== ======== Interest-bearing liabilities: Demand-non interest bearing $77,221 $71,990 Demand interest- bearing 31,644 $44 0.55% 31,090 $68 0.87% Money market & savings 230,668 1,487 2.56% 240,554 1,625 2.69% Time deposits 384,352 3,019 3.12% 381,820 3,216 3.35% ------- ----- ---- ------- ----- ---- Total deposits 723,885 4,550 2.50% 725,454 4,909 2.69% Total interest-bearing deposits 646,664 4,550 2.80% 653,464 4,909 2.99% ------- ----- ---- ------- ----- ---- Other borrowings 109,608 714 2.59% 122,709 1,005 3.26% ------- --- ---- ------- ----- ---- Total interest-bearing liabilities $756,272 $5,264 2.77% $776,173 $5,914 3.03% ======== ====== ==== ======== ====== ==== Total deposits and other borrowings 833,493 5,264 2.51% 848,163 5,914 2.77% ------- ----- ---- ------- ----- ---- Non interest-bearing liabilities 7,034 7,393 Shareholders' equity 79,500 78,550 ------ ------ Total liabilities and shareholders' equity $920,027 $934,106 ======== ======== Net interest income $7,101 $7,673 ====== ====== Net interest spread 2.88% 3.14% ==== ==== Net interest margin 3.25% 3.48% ==== ==== For the three For the twelve months ended months ended December 31, 2007 December 31, 2008 ----------------- ----------------- Interest-earning assets: Interest Interest (Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate ------- ------- ---- ------- ------- ---- Federal funds sold and other interest- earning assets $12,439 $139 4.56% $9,821 $218 2.22% Securities 87,240 1,316 5.98% 89,365 5,135 5.75% Loans receivable 823,751 15,018 7.23% 789,446 48,846 6.19% ------- ------ ---- ------- ------ ---- Total interest- earning assets 923,430 16,473 7.08% 888,632 54,199 6.10% Other assets 42,437 51,349 ------ ------ Total assets $965,867 $939,981 ======== ======== Interest-bearing liabilities: Demand-non interest bearing $79,052 $76,671 Demand interest- bearing 36,132 $101 1.11% 33,976 $327 0.96% Money market & savings 241,357 2,566 4.22% 222,590 6,150 2.76% Time deposits 402,151 5,151 5.08% 397,740 14,844 3.73% ------- ----- ---- ------- ------ ---- Total deposits 758,692 7,818 4.09% 730,977 21,321 2.92% Total interest-bearing deposits 679,640 7,818 4.56% 654,306 21,321 3.26% ------- ----- ---- ------- ------ ---- Other borrowings 115,121 1,427 4.92% 121,236 3,760 3.10% ------- ----- ---- ------- ----- ---- Total interest-bearing liabilities $794,761 $9,245 4.62% $775,542 $25,081 3.23% ======== ====== ==== ======== ======= ==== Total deposits and other borrowings 873,813 9,245 4.20% 852,213 25,081 2.94% ------- ----- ---- ------- ------ ---- Non interest-bearing liabilities 12,628 8,459 Shareholders' equity 79,426 79,309 ------ ------ Total liabilities and shareholders' equity $965,867 $939,981 ======== ======== Net interest income $7,228 $29,118 ====== ======= Net interest spread 2.46% 2.87% ==== ==== Net interest margin 3.11% 3.28% ==== ==== For the twelve months ended December 31, 2007 ----------------- Interest-earning assets: Interest (Dollars in thousands) Average Income/ Yield/ Balance Expense Rate ------- ------- ---- Federal funds sold and other interest- earning assets $13,923 $686 4.93% Securities 95,715 5,752 6.01% Loans receivable 820,380 62,184 7.58% ------- ------ ---- Total interest- earning assets 930,018 68,622 7.38% Other assets 39,889 ------ Total assets $969,907 ======== Interest-bearing liabilities: Demand-non interest bearing $78,641 Demand interest- bearing 38,850 $428 1.10% Money market & savings 266,706 11,936 4.48% Time deposits 361,120 18,822 5.21% ------- ------ ---- Total deposits 745,317 31,186 4.18% Total interest-bearing deposits 666,676 31,186 4.68% ------- ------ ---- Other borrowings 133,122 7,121 5.35% ------- ----- ---- Total interest-bearing liabilities $799,798 $38,307 4.79% ======== ======= ==== Total deposits and other borrowings 878,439 38,307 4.36% ------- ------ ---- Non interest-bearing liabilities 13,734 Shareholders' equity 77,734 ------ Total liabilities and shareholders' equity $969,907 ======== Net interest income $30,315 ======= Net interest spread 2.59% ==== Net interest margin 3.26% ==== The above tables are presented on a tax equivalent basis. Republic First Bancorp, Inc. Summary of Allowance for Loan Losses and Other Related Data (unaudited) Three months ended Twelve months ended ------------------ ------------------- (dollar amounts in thousands) 12/31/08 9/30/08 12/31/07 12/31/08 12/31/07 -------- ------- -------- -------- -------- Balance at beginning of period $6,807 $6,760 $8,791 $8,508 $8,058 Provisions charged to operating expense 1,601 43 165 7,499 1,590 ----- -- --- ----- ----- 8,408 6,803 8,956 16,007 9,648 Recoveries on loans charged-off: Commercial - 2 - 119 81 Tax refund loans - 8 27 77 283 Consumer 1 - 1 3 2 -- -- -- -- -- Total recoveries 1 10 28 199 366 Loans charged-off: Commercial - - (475) (7,778) (1,503) Tax refund loans - - - - - Consumer - (6) (1) (19) (3) -- -- -- --- -- Total charged-off - (6) (476) (7,797) (1,506) -- -- ---- ------ ------ Net charge-offs 1 4 (448) (7,598) (1,140) - - ---- ------ ------ Balance at end of period $8,409 $6,807 $8,508 $8,409 $8,508 ====== ====== ====== ====== ====== Net charge-offs as a percentage of average loans outstanding 0.00% 0.00% 0.22% 0.96% 0.14% Allowance for loan losses as a percentage of period-end loans 1.07% 0.88% 1.04% 1.07% 1.04% Republic First Bancorp, Inc. Summary of Non-Performing Loans and Assets (unaudited) Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2008 2008 2008 2008 2007 ---- ---- ---- ---- ---- Nonaccrual loans: Commercial real estate $16,424 $6,369 $2,366 $2,427 $14,757 Construction - - - - 6,747 Consumer and other 909 918 780 640 776 --- --- --- --- --- Total nonaccrual loans 17,333 7,287 3,146 3,067 22,280 Loans past due 90 days or more and still accruing - - - - - Renegotiated loans - - - - - -- -- -- -- -- Total nonperforming loans 17,333 7,287 3,146 3,067 22,280 Other real estate owned 8,580 8,580 14,245 16,378 3,681 ----- ----- ------ ------ ----- Total nonperforming assets $25,913 $15,867 $17,391 $19,445 $25,961 ======= ======= ======= ======= ======= Nonperforming loans to total loans 2.21% 0.95% 0.40% 0.38% 2.71% Nonperforming assets to total assets 2.72% 1.64% 1.84% 1.95% 2.55% Nonperforming loan coverage 49% 93% 215% 331% 38% Allowance for loan losses as a percentage of total period-end loans 1.07% 0.88% 0.85% 1.27% 1.04% Nonperforming assets/capital plus allowance for loan losses 30% 18% 20% 22% 29%
