PHILADELPHIA, May 8 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. , (the "Company") the holding company for Republic First Bank (PA), today reported a first quarter 2009 net loss of $3.8 million or $.35 per share, compared to a net loss of $2.8 million or $.27 per diluted share in first quarter 2008.
Chief Executive Officer's Statement
In commenting on the Company's financial results, Harry D. Madonna, Chief Executive Officer, noted that Republic First Bank is continuing to transition itself to become "America's Next Great Bank":
-- The shareholders of both Republic First Bancorp and Pennsylvania Commerce Bancorp have approved the merger of the companies subject to regulatory approval. -- Pennsylvania Commerce Bancorp will become Metro Bancorp (METR) on June 12, 2009 and Republic First Bancorp is well along in preparing for the rebranding to Metro Bank. -- Management has been enhanced with the addition of: Andrew Logue, EVP Operations Rhonda Costello, EVP Retail Jay Neilon, Chief Credit Officer Janet Roig, SVP Cash Management Steve McWilliams, SVP Commercial Lending All of whom were formerly with Commerce Bancorp. -- New branch location development is underway in New Jersey and Pennsylvania, with the first new locations in Cherry Hill, Haddonfield and Washington Township, NJ. -- Core deposits for the last twelve (12) months grew 18%. -- Reflecting the general credit conditions, the Company added $4.8 million to its allowance for loan losses and recorded $1.3 million in OREO writedowns. -- Net loss for the first quarter was $3.8 million, reflecting additional credit reserves. -- The Company remains well capitalized with tier 1 capital of 12.35% at March 31, 2009. Income Statement ---------------- (dollars in thousands, except per share data) Three months ended ------------------ % % 3/31/09 12/31/08 Change 3/31/08 Change ------- -------- ------- ------- ------- Total revenues* $7,510 $6,120 23% $7,887 -5% Total operating expenses $8,485 $5,370 58% $6,448 32% Net income (loss) $(3,760) $(416) 804% $(2,778) 35% Earnings (loss) per share $(0.35) $(0.04) 775% $(0.27) 30% * Net interest income plus noninterest income
Total revenues of $7.5 million for the first quarter represented a 23% increase over the linked quarter. The increase resulted primarily from the non-recurrence of an impairment charge of $1.4 million on a bank pooled trust preferred security in the linked quarter. The lower revenues in 2009 compared to the first quarter of 2008, reflected lower loan balances which contributed to a lower net interest margin. Operating expenses increased 58% to $8.5 million compared to the linked quarter primarily due to increased personnel costs and costs of carrying real estate owned. Operating expenses were higher in the first quarter of 2009 by 32% compared to the first quarter of the prior year.
Republic First Bancorp, Inc. Balance Sheet Highlights ------------------------ (dollars in thousands) % % 3/31/09 12/31/08 Change 3/31/08 Change ------- ------- ----- ------- ----- Total assets $911,380 $951,980 -4% $999,163 -9% Total loans (net) 741,822 774,673 -4% 787,345 -6% Total deposits 779,128 739,167 5% 749,532 4% Total core deposits* 379,398 345,501 10% 322,433 18% * Core deposits exclude all certificates of deposit. Lending
Gross loans at March 31, amounted to $750.3 million, a decrease of $32.8 million or 4.2% compared to December 31, 2008, reflecting management's decision to reduce the number of real estate construction and development loans. The following table sets forth the composition of the Company's loan portfolio at the dates indicated.
($ in thousands) % of % of $ % of 3/31/09 Total 12/31/08 Total Incr/(Decr) 3/31/08 Total ------- ----- -------- ----- ------- ------- ----- Commercial: Real estate secured $440,268 59% $455,776 58% $(15,508) $462,058 58% Construction & land development 207,921 28% 216,060 28% (8,139) 226,317 28% C & I 77,868 10% 81,734 10% (3,866) 81,827 10% ------ -- ------ -- ------ ------ -- Total commercial 726,057 97% 753,570 96% (27,513) 770,202 96% Residential real estate 4,918 1% 5,347 1% (429) 5,915 1% Consumer & other 19,281 2% 24,165 3% (4,884) 21,384 3% ------ - ------ - ------ ------ - Gross loans $750,256 100% $783,082 100% $(32,826) $797,501 100% ======== === ======== === ======== ======== === Asset Quality The Company's asset quality ratios are highlighted below: Quarter Ended 3/31/09 12/31/08 3/31/08 ------- -------- ------- Nonperforming assets/total assets 3.10% 2.72% 1.95% Net loan charge-offs/average total loans 2.51% 0.00% 2.05% Loan loss reserve/gross loans 1.12% 1.07% 1.27% Nonperforming loan coverage 46% 49% 331% Nonperforming assets/capital and reserves 33% 30% 22%
Non-performing assets at March 31, 2009 increased to $28.3 million, or 3.10% of total assets, an increase from $25.9 million or 2.72% of total assets at December 31, 2008 and an increase from $19.4 million or 1.95% of total assets a year earlier. The increase in non-performing assets in the first quarter was due to one property which subsequently became current at April 30, 2009.
Core Deposits Core deposits by type of account are as follows: ($ in thousands) 1st Qtr 2009 % % Cost of 3/31/09 12/31/08 Change 3/31/08 Change Funds ------- ------- --- ------- --- ----- Demand non- interest-bearing $87,849 $70,814 24% $80,440 9% 0.00% Demand interest- bearing 38,448 43,044 -11% 32,845 17% 0.63% Money market and savings 253,101 231,643 9% 209,148 21% 1.97% ------- ------- -- ------- --- ----- Total core deposits $379,398 $345,501 10% $322,433 18% 1.37% ======== ======== === ======== === =====
Core deposits, which exclude all certificates of deposit, increased to $379 million at March 31, 2009, an increase of $33.9 million or 10% from December 31, 2008 and an increase of $57.0 million or 18% from March 31, 2008.
Capital The Company's capital ratios at March 31, 2009 were: Leverage Ratio 10.88% 5.00% Tier I 12.35% 6.00% Total Capital 13.39% 10.00% Tangible Common Equity (TCE) 8.39% Three months ended ---------------------------- 3/31/09 12/31/08 3/31/08 ------- -------- ------- Return on equity -19.41% -2.09% -13.90%
Total shareholders' was $76.5 million at March 31, 2009 which represented a book value per share of $7.19, based on common shares of approximately 10.6 million.
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) 3/31/09 12/31/08 Change 3/31/08 Change ------- -------- ------ ------- ------ Income Statement Data: Net interest income $6,858 $7,051 -3% $7,222 -5% Provision for loan losses 4,800 1,601 200% 5,812 -17% Noninterest income (loss) 652 (931) -170% 665 -2% Total revenues 7,510 6,120 23% 7,887 -5% Noninterest operating expenses 8,485 5,370 58% 6,448 32% Provision (benefit) for income taxes (2,015) (435) 363% (1,595) 26% Net income (loss) (3,760) (416) 804% (2,778) 35% Per Common Share Data: Net income (loss): Basic $(0.35) $(0.04) 775% $(0.27) 30% Net income (loss): Diluted (0.35) (0.04) 775% (0.27) 30% Book Value $7.19 $7.46 $7.48 Weighted average shares outstanding: Basic 10,631 10,623 10,363 Diluted 10,631 10,623 10,363 Balance Sheet Data: Total assets $911,380 $951,980 -4% Loans (net) 741,822 774,673 -4% Allowance for loan losses 8,434 8,409 0% Investment securities - AFS 79,410 83,032 -4% Investment securities - HTM 198 198 0% Restricted stock 6,836 6,836 0% Federal funds sold 6,883 21,159 -67% Total deposits 779,128 739,167 5% Core deposits* 379,398 345,501 10% FHLB and overnight advances 25,000 102,309 -76% Trust preferred 22,476 22,476 0% Stockholders' equity 76,487 79,327 -4% Capital: Stockholders' equity to total assets 8.39% 8.33% Leverage ratio 10.88% 11.14% Risk based capital ratios: Tier 1 12.35% 12.26% Total Capital 13.39% 13.26% Performance Ratios: Cost of funds 2.09% 2.51% 3.51% Deposit cost of funds 2.01% 2.50% 3.51% Net interest margin 3.24% 3.25% 3.19% Return on average assets -1.66% -0.18% -1.16% Return on average total stockholders' equity -19.41% -2.09% -13.90% Asset Quality Net charge-offs to average loans outstanding 2.51% 0.00% Nonperforming assets to total period-end assets 3.10% 2.72% Allowance for loan losses to total period-end loans 1.12% 1.07% Allowance for loan losses to nonperforming loans 46% 49% Nonperforming assets to capital and reserves 33% 30% * Core deposits exclude certificates of deposit Republic First Bancorp, Inc. Average Balances and Net Interest Income (unaudited) For the three months For the three months ended ended March 31, 2009 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 $3,726 $3 0.33% $7,863 $19 0.96% Securities 90,966 1,190 5.23% 94,903 1,321 5.57% Loans receivable 770,562 9,990 5.26% 767,597 11,025 5.71% ------- ----- ---- ------- ------ ---- Total interest- earning assets 865,254 11,183 5.24% 870,363 12,365 5.65% Other assets 51,229 49,664 ------ ------ Total assets $916,483 $920,027 ======== ======== Interest-bearing liabilities: Demand-non interest bearing $77,527 $77,221 Demand interest- bearing 42,087 $65 0.63% 31,644 $44 0.55% Money market & savings 226,663 1,101 1.97% 230,668 1,487 2.56% Time deposits 394,742 2,501 2.57% 384,352 3,019 3.12% ------- ----- ---- ------- ----- ---- Total deposits 741,019 3,667 2.01% 723,885 4,550 2.50% Total interest-bearing deposits 663,492 3,667 2.24% 646,664 4,550 2.80% ------- ----- ---- ------- ----- ---- Other borrowings 87,726 603 2.79% 109,608 714 2.59% ------ --- ---- ------- --- ---- Total interest-bearing liabilities $751,218 $4,270 2.31% $756,272 $5,264 2.77% ======== ====== ==== ======== ====== ==== Total deposits and other borrowings 828,745 4,270 2.09% 833,493 5,264 2.51% ------- ----- ---- ------- ----- ---- Non interest-bearing liabilities 9,184 7,034 Shareholders' equity 78,554 79,500 ------ ------ Total liabilities and shareholders' equity $916,483 $920,027 ======== ======== Net interest income $6,913 $7,101 ====== ====== Net interest spread 2.93% 2.88% ==== ==== Net interest margin 3.24% 3.25% ==== ==== For the three months ended March 31, 2008 -------------- Interest-earning assets: Interest (Dollars in thousands) Average Income/ Yield/ Balance Expense Rate ------- ------- ---- Federal funds sold and other interest- earning assets $12,271 $96 3.15% Securities 87,545 1,313 6.00% Loans receivable 817,702 13,453 6.62% ------- ------ ---- Total interest- earning assets 917,518 14,862 6.51% Other assets 42,977 ------ Total assets $960,495 ======== Interest-bearing liabilities: Demand-non interest bearing $83,393 Demand interest- bearing 41,993 $146 1.40% Money market & savings 207,571 1,667 3.23% Time deposits 384,040 4,440 4.65% ------- ----- ---- Total deposits 716,997 6,253 3.51% Total interest-bearing deposits 633,604 6,253 3.97% ------- ----- ---- Other borrowings 151,552 1,326 3.52% ------- ----- ---- Total interest-bearing liabilities $785,156 $7,579 3.88% ======== ====== ==== Total deposits and other borrowings 868,549 7,579 3.51% ------- ----- ---- Non interest-bearing liabilities 11,558 Shareholders' equity 80,388 ------ Total liabilities and shareholders' equity $960,495 ======== Net interest income $7,283 ====== Net interest spread 2.63% ==== Net interest margin 3.19% ==== 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 ------------------ (dollar amounts in thousands) 3/31/09 12/31/08 3/31/08 ------- -------- ------- Balance at beginning of period $8,409 $6,807 $8,508 Provisions charged to operating expense 4,800 1,601 5,812 ----- ----- ----- 13,209 8,408 14,320 Recoveries on loans charged-off: Commercial - - 117 Tax refund loans - - 69 Consumer - 1 2 --- --- --- Total recoveries - 1 188 Loans charged-off: Commercial (4,772) - (4,344) Tax refund loans - - - Consumer (3) - (8) -- --- -- Total charged-off (4,775) - (4,352) ------ --- ------ Net charge-offs (4,775) 1 (4,164) ------ --- ------ Balance at end of period $8,434 $8,409 $10,156 ====== ====== ======= Net charge-offs as a percentage of average loans outstanding 2.51% 0.00% 2.05% Allowance for loan losses as a percentage of period-end loans 1.12% 1.07% 1.27% Republic First Bancorp, Inc. Summary of Non-Performing Loans and Assets (unaudited) March 31, December 31, September 30, June 30, March 31, 2009 2008 2008 2008 2008 ---- ---- ---- ---- ---- Nonaccrual loans: Commercial real estate $14,882 $16,424 $6,369 $2,366 $2,427 Consumer and other 607 909 918 780 640 --- --- --- --- --- Total nonaccrual loans 15,489 17,333 7,287 3,146 3,067 Loans past due 90 days or more and still accruing 2,759 - - - - Renegotiated loans - - - - - --- --- --- --- --- Total nonperforming loans 18,248 17,333 7,287 3,146 3,067 Other real estate owned 10,016 8,580 8,580 14,245 16,378 ------ ----- ----- ------ ------ Total nonperforming assets $28,264 $25,913 $15,867 $17,391 $19,445 ======= ======= ======= ======= ======= Nonperforming loans to total loans 2.43% 2.21% 0.95% 0.40% 0.38% Nonperforming assets to total assets 3.10% 2.72% 1.64% 1.84% 1.95% Nonperforming loan coverage 46% 49% 93% 215% 331% Allowance for loan losses as a percentage of total period-end loans 1.12% 1.07% 0.88% 0.85% 1.27% Nonperforming assets/ capital plus allowance for loan losses 33% 30% 18% 20% 22%
Republic First Bank
CONTACT: Harry D. Madonna, CEO of Republic First Bancorp, Inc.,
+1-215-735-9938
