PHILADELPHIA, Aug. 7 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. , (the "Company") the holding company for Republic First Bank (PA), today reported a second quarter 2009 net loss of $5,435,000 or $.51 per share, compared to net income of $1.2 million or $.11 per diluted share in second quarter 2008.
Chief Executive Officer's Statement
In commenting on the Company's financial results, Harry D. Madonna, Chief Executive Officer, noted that:
-- The Agreement and Plan of Merger with Metro Bancorp Inc. (formerly, Pennsylvania Bancorp, Inc.) ("Metro"), approved by the Shareholders of both companies, has been submitted for regulatory approval. The Company and Metro have extended the contractual deadline for the merger to October 31, 2009 with extension to December 31, 2009 if required. -- Republic First Bank's income from operations, excluding additional provisions for loan losses and impairment charges and special FDIC assessments improved from the linked quarter by $.01 per diluted share. -- Core deposits increased by 16% from the linked quarter. -- The Company remains well capitalized with Tier 1 capital of 10.83% at June 30, 2009. -- The Company continued to focus on Asset Quality. -- Allowance for Loan Losses increased to $16 million, 101% of non-performing loans and 2.1% of total loans. Income Statement ---------------- (dollars in thousands, except per share data) Three months ended Six months ended ------------------------------------- ---------------------- % % % 6/30/09 3/31/09 Change 6/30/08 Change 6/30/09 6/30/08 Change ------- ------- ------ ------- ------ ------- ------- ------ Total revenues* $7,174 $7,510 -4% $7,840 -8% $14,684 $15,727 -7% Total operating expenses $7,219 $8,485 -15% $6,061 19% $15,704 $12,509 26% Net income (loss) $(5,435)$(3,760) 45% $1,189 -557% $(9,195)$(1,589) 479% Earnings (loss) per share $(0.51) $(0.35) 46% $0.11 -564% $(0.86) $(0.16) 438% * Interest income plus non-interest income
Total revenues of $7.2 million for the second quarter represented a 4% decrease from the linked quarter. The decrease resulted primarily from lower non-interest income in the second quarter. The lower revenues in 2009 compared to the second quarter of 2008, reflected lower loan balances which contributed to a lower net interest margin, as well as lower non-interest income. Operating expenses decreased 15% to $7.2 million compared to the linked quarter primarily due to costs of carrying real estate owned in the linked quarter. Operating expenses were higher in the second quarter of 2009 by 19% compared to the second quarter of the prior year.
Republic First Bancorp, Inc. Balance Sheet Highlights ------------------------ (dollars in thousands) % % 6/30/09 3/31/09 Change 6/30/08 Change ------- ------- ------ ------- ------ Total assets $937,116 $911,380 3% $947,589 -1% Total loans (net) 731,981 741,822 -1% 784,115 -7% Total deposits 808,636 779,128 4% 728,559 11% Total core deposits* 439,196 379,398 16% 346,885 27% * Core deposits exclude all certificates of deposit. Lending
Gross loans at June 30, amounted to $748.0 million, a decrease of $2.2 million or 0.3% compared to March 31, 2009. The following table sets forth the composition of the Company's loan portfolio at the dates indicated.
($in thousands) % of % of $ % of 6/30/09 Total 3/31/09 Total Incr/(Decr) 6/30/08 Total ------- ----- ------- ----- ----------- ------- ----- Commercial: Real estate secured $439,007 59% $440,268 59% $(1,261) $466,328 59% Construction & land development 206,109 28% 207,921 28% (1,812) 220,104 28% C & I 79,085 10% 77,868 10% 1,217 77,729 9% ------ -- ------ -- ----- ------ - Total commercial 724,201 97% 726,057 97% (1,856) 764,161 96% Residential real estate 4,304 1% 4,918 1% (614) 5,870 1% Consumer & other 19,513 2% 19,281 2% 232 20,844 3% ------ - ------ - --- ------ - Gross loans $748,018 100% $750,256 100% $(2,238) $790,875 100% ======== === ======== === ======== ======== === Asset Quality The Company's asset quality ratios are highlighted below: Quarter Ended ------------- 6/30/09 3/31/09 6/30/08 ------- ------- ------- Nonperforming assets/total assets 2.76% 3.10% 1.84% Net loan charge-offs/average total loans 0.35% 2.51% 1.73% Loan loss reserve/gross loans 2.14% 1.12% 0.85% Nonperforming loan coverage 101% 46% 215% Nonperforming assets/capital and reserves 30% 33% 20%
Non-performing assets at June 30, 2009 decreased to $25.9 million, or 2.76% of total assets, a decrease from $28.3 million or 3.10% of total assets at March 31, 2009 and an increase from $17.4 million or 1.84% of total assets a year earlier.
Core Deposits Core deposits by type of account are as follows: ($in thousands) 2nd Qtr 2009 % % Cost of 6/30/09 3/31/09 Change 6/30/08 Change Funds ------- ------- ------ ------- ------ ----- Demand non- interest-bearing $91,642 $87,849 4% $77,404 18% 0.00% Demand interest-bearing 42,675 38,448 11% 30,167 41% 0.68% Money market and savings 304,879 253,101 20% 239,314 27% 1.96% ------- ------- -- ------- -- ---- Total core deposits $439,196 $379,398 16% $346,885 27% 1.43% ======== ======== == ======== == ====
Core deposits, which exclude all certificates of deposit, increased to $439 million at June 30, 2009, an increase of $59.8 million or 16% from March 31, 2009 and an increase of $92.3 million or 27% from June 30, 2008.
Capital The Company's capital ratios at June 30, 2009 were: Republic Regulatory Guidelines First "Well Capitalized" ----- --------------------- Leverage Ratio 9.75% 5.00% Tier I 10.83% 6.00% Total Capital 12.09% 10.00% Tangible Common Equity (TCE) 7.61%
Total shareholders' equity was $71.3 million at June 30, 2009 which represented a book value per share of $6.69, based on common shares of approximately 10.7 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) 6/30/09 3/31/09 Change 6/30/08 Change ------- ------- ------ ------- ------ Income Statement Data: Net interest income $6,792 $6,858 -1% $7,004 -3% Provision for loan losses 8,250 4,800 72% 43 19086% Noninterest income (loss) 382 652 -41% 836 -54% Total revenues 7,174 7,510 -4% 7,840 -8% Noninterest operating expenses 7,219 8,485 -15% 6,061 19% Provision (benefit) for income taxes (2,860) (2,015) 42% 547 -623% Net income (loss) (5,435) (3,760) 45% 1,189 -557% Per Common Share Data: Net income (loss): Basic $(0.51) $(0.35) 46% $0.11 -564% Net income (loss): Diluted (0.51) (0.35) 46% 0.11 -564% Book Value $6.69 $7.19 $7.43 Weighted average shares outstanding: Basic 10,656 10,631 10,445 Diluted 10,656 10,631 10,862 Balance Sheet Data: Total assets $937,116 $911,380 3% Loans (net) 731,981 741,822 -1% Allowance for loan losses 16,037 8,434 90% Investment securities - AFS 73,932 79,410 -7% Investment securities - HTM 159 198 -20% Restricted stock 6,836 6,836 0% Federal funds sold 21,007 6,883 205% Total deposits 808,636 779,128 4% Core deposits* 439,196 379,398 16% FHLB and overnight advances 25,000 25,000 0% Trust preferred 22,476 22,476 0% Stockholders' equity 71,307 76,487 -7% Capital: Stockholders' equity to total assets 7.61% 8.39% Leverage ratio 9.75% 10.88% Risk based capital ratios: Tier 1 10.83% 12.35% Total Capital 12.09% 13.39% Performance Ratios: Cost of funds 1.98% 2.09% 2.96% Deposit cost of funds 1.84% 2.01% 2.98% Net interest margin 3.25% 3.24% 3.19% Return on average assets -2.36% -1.66% 0.51% Return on average total stockholders' equity -28.88% -19.41% 6.12% Asset Quality Net charge-offs to average loans outstanding 0.35% 2.51% Nonperforming assets to total period-end assets 2.76% 3.10% Allowance for loan losses to total period-end loans 2.14% 1.12% Allowance for loan losses to nonperforming loans 101% 46% Nonperforming assets to capital and reserves 30% 33% At or for the Six months ended ---------------- (in thousands, except % per share amounts) 6/30/09 6/30/08 Change ------- ------- ------ Income Statement Data: Net interest income $13,650 $14,226 -4% Provision for loan losses 13,050 5,855 123% Noninterest income (loss) 1,034 1,501 -31% Total revenues 14,684 15,727 -7% Noninterest operating expenses 15,704 12,509 26% Provision (benefit) for income taxes (4,875) (1,048) 365% Net income (loss) (9,195) (1,589) 479% Per Common Share Data: Net income (loss): Basic $(0.86) $(0.16) 438% Net income (loss): Diluted (0.86) (0.16) 438% Book Value $6.69 $7.43 Weighted average shares outstanding: Basic 10,644 10,404 Diluted 10,644 10,404 Balance Sheet Data: Total assets $937,116 $947,589 -1% Loans (net) 731,981 784,115 -7% Allowance for loan losses 16,037 6,760 137% Investment securities - AFS 73,932 79,700 -7% Investment securities - HTM 159 257 -38% Restricted stock 6,836 4,615 48% Federal funds sold 21,007 8,867 137% Total deposits 808,636 728,559 11% Core deposits* 439,196 346,885 27% FHLB and overnight advances 25,000 111,069 -77% Trust preferred 22,476 22,476 0% Stockholders' equity 71,307 78,399 -9% Capital: Stockholders' equity to total assets 7.61% 8.27% Leverage ratio 9.75% 10.69% Risk based capital ratios: Tier 1 10.83% 11.63% Total Capital 12.09% 12.41% Performance Ratios: Cost of funds 2.04% 3.24% Deposit cost of funds 1.92% 3.24% Net interest margin 3.25% 3.19% Return on average assets -2.02% -0.33% Return on average total stockholders' equity -24.05% -4.02% Asset Quality Net charge-offs to average loans outstanding 1.44% 1.89% Nonperforming assets to total period-end assets 2.76% 1.84% Allowance for loan losses to total period-end loans 2.14% 0.85% Allowance for loan losses to nonperforming loans 101% 215% Nonperforming assets to capital and reserves 30% 20% * 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 June 30, 2009 March 31, 2009 ------------- -------------- 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 $9,955 $19 0.77% $3,726 $3 0.33% Securities 86,230 1,109 5.14% 90,966 1,190 5.23% Loans receivable 747,725 9,863 5.29% 770,562 9,990 5.26% ------- ----- ---- ------- ----- ---- Total interest- earning assets 843,910 10,991 5.22% 865,254 11,183 5.24% Other assets 79,454 51,229 ------ ------ Total assets $923,364 $916,483 ======== ======== Interest-bearing liabilities: Demand-non interest bearing $81,046 $77,527 Demand interest- bearing 44,487 $75 0.68% 42,087 $65 0.63% Money market & savings 281,368 1,374 1.96% 226,663 1,101 1.97% Time deposits 383,161 2,180 2.28% 394,742 2,501 2.57% ------- ----- ---- ------- ----- ---- Total deposits 790,062 3,629 1.84% 741,019 3,667 2.01% Total interest-bearing deposits 709,016 3,629 2.05% 663,492 3,667 2.24% ------- ----- ---- ------- ----- ---- Other borrowings 47,690 514 4.32% 87,726 603 2.79% ------ --- ---- ------ --- ---- Total interest-bearing liabilities $756,706 $4,143 2.20% $751,218 $4,270 2.31% ======== ====== ==== ======== ====== ==== Total deposits and other borrowings 837,752 4,143 1.98% 828,745 4,270 2.09% ------- ----- ---- ------- ----- ---- Non interest-bearing liabilities 10,127 9,184 Shareholders' equity 75,485 78,554 ------ ------ Total liabilities and shareholders' equity $923,364 $916,483 ======== ======== Net interest income $6,848 $6,913 ====== ====== Net interest spread 3.02% 2.93% ==== ==== Net interest margin 3.25% 3.24% ==== ==== For the three months For the six months ended ended June 30, 2008 June 30, 2009 ------------- ------------- 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 $10,618 $58 2.20% $6,858 $22 0.65% Securities 82,392 1,167 5.67% 88,585 2,299 5.19% Loans receivable 797,233 12,160 6.13% 759,080 19,853 5.27% ------- ------ ---- ------- ------ ---- Total interest- earning assets 890,243 13,385 6.05% 854,523 22,174 5.23% Other assets 55,336 65,419 ------ ------ Total assets $945,579 $919,942 ======== ======== Interest-bearing liabilities: Demand-non interest bearing $74,126 $79,296 Demand interest- bearing 31,236 $69 0.89% 43,294 $140 0.65% Money market & savings 211,281 1,371 2.61% 254,167 2,475 1.96% Time deposits 441,069 4,169 3.80% 388,919 4,681 2.43% ------- ----- ---- ------- ----- ---- Total deposits 757,712 5,609 2.98% 765,676 7,296 1.92% Total interest-bearing deposits 683,586 5,609 3.30% 686,380 7,296 2.14% ------- ----- ---- ------- ----- ---- Other borrowings 101,186 715 2.84% 67,597 1,117 3.33% ------- --- ---- ------ ----- ---- Total interest-bearing liabilities $784,772 $6,324 3.24% $753,977 $8,413 2.25% ======== ====== ==== ======== ====== ==== Total deposits and other borrowings 858,898 6,324 2.96% 833,273 8,413 2.04% ------- ----- ---- ------- ----- ---- Non interest-bearing liabilities 8,532 9,573 Shareholders' equity 78,149 77,096 ------ ------ Total liabilities and shareholders' equity $945,579 $919,942 ======== ======== Net interest income $7,061 $13,761 ====== ======= Net interest spread 2.81% 2.98% ==== ==== Net interest margin 3.19% 3.25% ==== ==== For the six months ended June 30, 2008 ------------- Interest-earning assets: Interest (Dollars in thousands) Average Income/ Yield/ Balance Expense Rate ------- ------- ---- Federal funds sold and other interest- earning assets $11,444 $154 2.71% Securities 84,969 2,480 5.84% Loans receivable 807,468 25,613 6.38% ------- ------ ---- Total interest- earning assets 903,881 28,247 6.28% Other assets 49,157 ------ Total assets $953,038 ======== Interest-bearing liabilities: Demand-non interest bearing $78,760 Demand interest- bearing 36,615 $215 1.18% Money market & savings 209,426 3,038 2.92% Time deposits 412,554 8,609 4.20% ------- ----- ---- Total deposits 737,355 11,862 3.24% Total interest-bearing deposits 658,595 11,862 3.62% ------- ------ ---- Other borrowings 126,369 2,041 3.25% ------- ----- ---- Total interest-bearing liabilities $784,964 $13,903 3.56% ======== ======= ==== Total deposits and other borrowings 863,724 13,903 3.24% ------- ------ ---- Non interest-bearing liabilities 9,818 Shareholders' equity 79,496 ------ Total liabilities and shareholders' equity $953,038 ======== Net interest income $14,344 ======= Net interest spread 2.72% ==== 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) Year Three months ended ended Six months ended ------------------ ----- ---------------- (dollar amounts in thousands) 6/30/09 3/31/09 6/30/08 12/31/08 6/30/09 6/30/08 ------- ------- ------- -------- ------- ------- Balance at beginning of period $8,434 $8,409 $10,156 $8,508 $8,409 $8,508 Provisions charged to operating expense 8,250 4,800 43 7,499 13,050 5,855 ----- ----- -- ----- ------ ----- 16,684 13,209 10,199 16,007 21,459 14,363 Recoveries on loans charged-off: Commercial - - - 119 - 117 Tax refund loans - - - 77 - 69 Consumer 1 - - 3 1 2 --- --- --- --- --- --- Total recoveries 1 - - 199 1 188 Loans charged-off: Commercial (645) (4,772) (3,434) (7,778) (5,417) (7,778) Tax refund loans - - - - - - Consumer (3) (3) (5) (19) (6) (13) -- -- -- --- -- --- Total charged- off (648) (4,775) (3,439) (7,797) (5,423) (7,791) ---- ------ ------ ------ ------ ------ Net charge-offs (647) (4,775) (3,439) (7,598) (5,422) (7,603) ---- ------ ------ ------ ------ ------ Balance at end of period $16,037 $8,434 $6,760 $8,409 $16,037 $6,760 ======= ====== ====== ====== ======= ====== Net charge-offs as a percentage of average loans outstanding 0.35% 2.51% 1.73% 0.96% 1.44% 1.89% Allowance for loan losses as a percentage of period-end loans 2.14% 1.12% 0.85% 1.07% 2.14% 0.85% Republic First Bancorp, Inc. Summary of Non-Performing Loans and Assets (unaudited) June March December September June 30, 31, 31, 30, 30, 2009 2009 2008 2008 2008 ---- ---- ---- ---- ---- Nonaccrual loans: Commercial real estate $15,262 $14,882 $16,424 $6,369 $2,366 Consumer and other 600 607 909 918 780 --- --- --- --- --- Total nonaccrual loans 15,862 15,489 17,333 7,287 3,146 Loans past due 90 days or more and still accruing - 2,759 - - - Renegotiated loans - - - - - --- --- --- --- --- Total nonperforming loans 15,862 18,248 17,333 7,287 3,146 Other real estate owned 10,016 10,016 8,580 8,580 14,245 ------ ------ ----- ----- ------ Total nonperforming assets $25,878 $28,264 $25,913 $15,867 $17,391 ======= ======= ======= ======= ======= Nonperforming loans to total loans 2.12% 2.43% 2.21% 0.95% 0.40% Nonperforming assets to total assets 2.76% 3.10% 2.72% 1.64% 1.84% Nonperforming loan coverage 101% 46% 49% 93% 215% Allowance for loan losses as a percentage of total period-end loans 2.14% 1.12% 1.07% 0.88% 0.85% Nonperforming assets/capital plus allowance for loan losses 30% 33% 30% 18% 20%
Republic First Bancorp, Inc.
CONTACT: Harry D. Madonna, CEO, +1-215-735-9938
