PHILADELPHIA, April 23 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. , the holding company for Republic First Bank, today announced its financial results for the period ending March 31, 2010.
During the first quarter of 2010, the Company recorded a net loss of $3.9 million, or $0.37 per share, compared to a net loss of $2.4 million, or $0.23 per share, for the fourth quarter 2009.
"Our first quarter was negatively impacted by increases in reserves and charge-offs related to our loan portfolio to strengthen our balance sheet, along with increases in personnel cost required to execute our strategic plan," said Harry D. Madonna, the Company's Chairman and Chief Executive Officer. "We continue to be well capitalized."
During the first quarter of 2010, the Company announced that the merger agreement with Metro Bank had been terminated due to the uncertainty over regulatory approvals. "While we believe the merger would have accelerated our strategic plan for growth, rebranding and retail banking, we will continue our efforts to focus on positioning our organization to take advantage of the growth opportunities that will arise from the consolidation and disruption of service in the banking industry. With a strong management team in place, we have already made great strides toward the enhancement of retail banking focused relationships. We have renovated most of our existing stores and continue to seek out locations for future sites that will be customer centric to the needs of the Delaware Valley," said Madonna.
Highlights -- The first quarter results include a $5.5 million provision for loan losses which reflects reserve building to bolster our balance sheet and accelerate the remix of our loan portfolio. -- Allowance for loan losses to gross loans increased to 2.02% -- Total loans outstanding decreased by 10% to $665.7 million at March 31, 2010 compared to $741.8 million at March 31, 2009 as a result of the continuing effort to reduce exposure to commercial real estate and strengthen the loan portfolio. -- The Company continues to reposition its balance sheet and focus on low cost deposit growth. -- Core deposits increased by $155.5 million, or 29%, during the twelve month period ended March 31, 2010. -- The cost of funds decreased to 1.38% for the first quarter 2010 compared to 2.09% for the first quarter 2009. -- Capital levels remain strong with a Total Risk-Based Capital ratio of 12.49% and a Tier I Leverage Ratio of 8.94% at March 31, 2010. -- With the addition of new talent, products, and services the Company continues to strengthen itself for competitive growth and performance. Income Statement
The Company reported a net loss of $3.9 million, or $0.37 per share, for the three months ended March 31, 2010, compared to a net loss of $2.4 million, or $0.23 per share in the prior quarter and a net loss of $3.8 million, or $0.35 per share, for the three months ended March 31, 2009. The first quarter 2010 loss was attributable to a provision for loan losses in the amount of $5.5 million. In addition, the Company recorded expenditures of $1.0 million associated with the termination of the merger agreement with Metro Bancorp, Inc. related to legal fees, underwriting services and other costs.
Net interest income was $7.4 million for the first quarter 2010 compared to $6.9 million for the first quarter 2009. The net interest margin increased to 3.38% for the first quarter 2010 compared to 3.23% for the first quarter of 2009.
Balance Sheet ------------- (dollars in thousands) % % 3/31/10 3/31/09 Change 12/31/09 Change ------- ------- ------ -------- ------ Total assets $967,507 $911,380 6% $1,008,642 (4%) Total loans (net) 665,711 741,822 (10%) 680,977 (2%) Total deposits 846,232 779,128 9% 882,894 (4%) Total core deposits* 689,996 534,450 29% 719,319 (4%) * Core deposits equal total deposits less public and brokered certificates of deposit -------------------------------------------------------------
The Company's ongoing effort to remix and strengthen its balance sheet continues to show progress. Net loans decreased to $665.7 million as of March 31, 2010, as the Company continues to reduce concentrations in the commercial real estate portfolio. Core deposits grew by 29% to $690.0 million as of March 31, 2010 compared to $534.5 million at March 31, 2009. Liquidity remained strong as the Company decreased its dependence on outside borrowings, while increasing cash and investment securities balances by $109.6 million as of March 31, 2010 when compared to March 31, 2009. These changes are the direct result of the strong growth in core deposits over that period of time.
Core Deposits ------------- Core deposits by type of account are as follows: (dollars in 1st Qtr thousands) 2010 % % Cost of 3/31/10 3/31/09 Change 12/31/09 Change Funds ------- ------- ------ -------- ------ ----- Demand noninterest- bearing $138,842 $87,849 58% $125,618 11% 0.00% Demand interest- bearing 45,587 38,448 19% 52,919 -14% 0.67% Money market and savings 311,792 253,101 23% 327,103 -5% 1.38% Certificates of deposit 193,775 155,052 25% 213,679 -9% 2.11% Total core deposits $689,996 $534,450 29% $719,319 -4% 1.29% ======= ======= === ======= === ====
Core deposits, which exclude all public and brokered certificates of deposit, increased to $690.0 million at March 31, 2010, an increase of $155.5 million, or 29%, from March 31, 2009 and a decrease of $29.3 million, or 4%, compared to December 31, 2009. We believe core deposits are the appropriate measure of deposits gathered through our store network.
Lending ------- The following table sets forth the composition of the Company's loan portfolio at the dates indicated. (dollars in thousands) % of % of % of 3/31/10 Total 3/31/09 Total 12/31/09 Total ------- ----- ------- ----- -------- ----- Commercial $86,326 13% $93,268 12% $88,926 13% Owner Occupied 83,500 12% 71,708 10% 85,481 12% --- --- --- Total Commercial 169,826 25% 164,976 22% 174,407 25% Consumer & Residential 21,518 3% 22,572 3% 22,359 3% Commercial Real Estate 488,092 72% 562,708 75% 497,052 72% --- --- --- --- --- --- Gross loans $679,436 100% $750,256 100% $693,818 100% ======== === ======== === ======== === Asset Quality ------------- The Company's asset quality ratios are highlighted below: Quarter Ended ------------- 3/31/10 3/31/09 12/31/09 ------- ------- -------- Nonperforming assets / total assets 4.94% 3.10% 3.93% Net loan charge-offs /average total loans 2.74% 2.51% 0.46% Allowance for loan losses /gross loans 2.02% 1.12% 1.85% Allowance for loan losses /non- performing loans 37.37% 46.22% 49.32% Nonperforming assets /capital and reserves 60.54% 33.28% 47.70%
Non-performing assets were $47.8 million, or 4.94% of total assets, as of March 31, 2010 compared to $39.6 million, or 3.93%, of total assets at December 31, 2009 and $28.3 million, or 3.10%, of total assets at March 31, 2009. The Company recorded a provision for loan losses of $5.5 million during the three months ended March 31, 2010, compared to a provision of $4.8 million for the quarter ended March 31, 2009. The allowance for loan losses as a percentage of total loans was 2.02% as of March 31, 2010, compared to 1.12% one year ago.
Capital ------- The Company's capital regulatory ratios at March 31, 2010 were as follows: Republic Regulatory First Guidelines Bancorp, "Well Inc. Capitalized" -------- ------------ Leverage Ratio 8.94% 5.00% Tier I Risk Based Capital 11.21% 6.00% Total Risk Based Capital 12.49% 10.00%
Total shareholders' equity was $65.2 million at March 31, 2010 which represented a book value per share of $6.18, based on common shares outstanding of approximately 10.6 million.
About Republic First Bank
Republic First Bank 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 twelve offices located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Voorhees, New Jersey.
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. 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. These factors include competition, timing, credit risks of lending activities, changes in general economic conditions, price pressures on loan and deposit products, and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. 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, except as may be required by applicable law or regulations.
Republic First Bancorp, Inc. Selected Consolidated Financial Data (Unaudited) Three months ended ------------------ % (dollars in thousands, except per share amounts) 3/31/10 12/31/09 Change ------- -------- ------ Income Statement Data: Net interest income $7,409 $6,960 6% Provision for loan losses 5,500 1,000 450% Non-interest income (loss) 475 (1,205) (139%) Total revenues 7,884 5,755 37% Non-interest expenses 8,405 8,555 (2%) Provision (benefit) for income taxes (2,159) (1,368) 58% Net income (loss) (3,862) (2,432) 59% Per Common Share Data: Net income (loss): Basic $(0.37) $(0.23) 61% Net income (loss): Diluted (0.37) (0.23) 61% Book Value $6.18 $6.59 Weighted average shares outstanding: Basic 10,578 10,666 Diluted 10,578 10,666 Balance Sheet Data: Total assets $967,507 $1,008,642 (4%) Loans (net) 665,711 680,977 (2%) Allowance for loan losses 13,725 12,841 7% Investment securities 183,400 192,395 (5%) Total deposits 846,232 882,894 (4%) Core deposits* 689,996 719,319 (4%) Public and brokered certificates of deposit 156,236 163,575 (4%) Other borrowed money 25,000 25,000 - Subordinated debt 22,476 22,476 Stockholders' equity 65,182 70,264 (7%) Capital: Stockholders' equity to total assets 6.74% 6.97% Leverage ratio 8.94% 9.36% Risk based capital ratios: Tier 1 11.21% 11.89% Total Capital 12.49% 13.14% Performance Ratios: Cost of funds 1.38% 1.63% Deposit cost of funds 1.22% 1.49% Net interest margin 3.38% 3.01% Return on average assets (1.61%) (0.97%) Return on average total stockholders' equity (22.68%) (13.38%) Asset Quality Net charge-offs to average loans outstanding 2.74% 0.46% Nonperforming assets to total period-end assets 4.94% 3.93% Allowance for loan losses to total period-end loans 2.02% 1.85% Allowance for loan losses to nonperforming loans 37.37% 49.32% Nonperforming assets to capital and reserves 60.54% 47.70% Three months ended ------------------ % (dollars in thousands, except per share amounts) 3/31/09 Change ------- ------ Income Statement Data: Net interest income $6,858 8% Provision for loan losses 4,800 15% Non-interest income (loss) 652 27% Total revenues 7,510 5% Non-interest expenses 8,485 (1%) Provision (benefit) for income taxes (2,015) (7%) Net income (loss) (3,760) (3%) Per Common Share Data: Net income (loss): Basic $(0.35) (6%) Net income (loss): Diluted (0.35) (6%) Book Value $7.19 Weighted average shares outstanding: Basic 10,631 Diluted 10,631 Balance Sheet Data: Total assets $911,380 6% Loans (net) 741,822 (10%) Allowance for loan losses 8,434 63% Investment securities 86,444 112% Total deposits 779,128 9% Core deposits* 534,450 29% Public and brokered certificates of deposit 244,678 (36%) Other borrowed money 25,000 - Subordinated debt 22,476 Stockholders' equity 76,487 (15%) Capital: Stockholders' equity to total assets 8.39% Leverage ratio 9.53% Risk based capital ratios: Tier 1 12.35% Total Capital 13.39% Performance Ratios: Cost of funds 2.09% Deposit cost of funds 2.01% Net interest margin 3.23% Return on average assets (1.66%) Return on average total stockholders' equity (19.41%) Asset Quality Net charge-offs to average loans outstanding 2.51% Nonperforming assets to total period-end assets 3.10% Allowance for loan losses to total period-end loans 1.12% Allowance for loan losses to nonperforming loans 46.22% Nonperforming assets to capital and reserves 33.28% * Core deposits equal total deposits less public and brokered certificates of deposit Republic First Bancorp, Inc. Average Balances and Net Interest Income (unaudited) For the three months ended (dollars in thousands) March 31, 2010 -------------- Interest Average Income/ Yield/ Balance Expense Rate ------- ------- ---- Interest-earning assets: Federal funds sold and other interest-earning assets $22,840 $20 0.36% Securities 190,738 1,716 3.60% Loans receivable 683,846 8,759 5.19% --- - ---- Total interest-earning assets 897,424 10,495 4.74% Other assets 73,516 Total assets $970,940 ======== Interest-bearing liabilities: Demand non interest- bearing $125,400 Demand interest-bearing 49,506 $82 0.67% Money market & savings 307,862 1,050 1.38% Time deposits 360,796 1,405 1.58% --- - ---- Total deposits 843,564 2,537 1.22% Total interest-bearing deposits 718,164 2,537 1.43% ------- ----- ---- Other borrowings 48,586 489 4.08% ---- Total interest-bearing liabilities $766,750 $3,026 1.60% ======== ====== ==== Total deposits and other borrowings 892,150 3,026 1.38% --- - ---- Non interest-bearing liabilities 9,716 Shareholders' equity 69,074 Total liabilities and shareholders' equity $970,940 ======== Net interest income $7,469 ====== Net interest spread 3.14% ==== Net interest margin 3.38% ==== For the three months ended (dollars in thousands) December 31, 2009 ----------------- Interest Average Income/ Yield/ Balance Expense Rate ------- ------- ---- Interest-earning assets: Federal funds sold and other interest-earning assets $101,795 $68 0.27% Securities 127,672 1,298 4.07% Loans receivable 695,391 9,385 5.35% --- - ---- Total interest-earning assets 924,858 10,751 4.61% Other assets 66,143 Total assets $991,001 ======== Interest-bearing liabilities: Demand non interest- bearing $101,446 Demand interest-bearing 53,834 $92 0.68% Money market & savings 320,613 1,417 1.75% Time deposits 386,616 1,730 1.78% --- - ---- Total deposits 862,509 3,239 1.49% Total interest-bearing deposits 761,063 3,239 1.69% ------- ----- ---- Other borrowings 47,476 495 4.14% ---- Total interest-bearing liabilities $808,539 $3,734 1.83% ======== ====== ==== Total deposits and other borrowings 909,985 3,734 1.63% --- - ---- Non interest-bearing liabilities 8,893 Shareholders' equity 72,123 Total liabilities and shareholders' equity $991,001 ======== Net interest income $7,017 ====== Net interest spread 2.78% ==== Net interest margin 3.01% ==== For the three months ended (dollars in thousands) March 31, 2009 -------------- Interest Average Income/ Yield/ Balance Expense Rate ------- ------- ---- Interest-earning assets: Federal funds sold and other interest-earning assets $5,381 $3 0.23% Securities 90,966 1,190 5.23% Loans receivable 770,562 9,990 5.26% --- - ---- Total interest-earning assets 866,909 11,183 5.23% Other assets 49,574 Total assets $916,483 ======== Interest-bearing liabilities: Demand non interest- bearing $77,527 Demand interest-bearing 42,087 $65 0.63% Money market & savings 226,663 1,101 1.97% Time deposits 394,742 2,501 2.57% --- - ---- Total deposits 741,019 3,667 2.01% Total interest-bearing deposits 663,492 3,667 2.24% ------- ----- ---- Other borrowings 87,726 603 2.79% ---- Total interest-bearing liabilities $751,218 $4,270 2.31% ======== ====== ==== Total deposits and other borrowings 828,745 4,270 2.09% --- - ---- Non interest-bearing liabilities 9,184 Shareholders' equity 78,554 Total liabilities and shareholders' equity $916,483 ======== Net interest income $6,913 ====== Net interest spread 2.92% ==== Net interest margin 3.23% ==== 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 ------------------ (dollars in thousands) 3/31/10 12/31/09 3/31/09 ------- -------- ------- Balance at beginning of period $12,841 $12,644 $8,409 Provisions charged to operating expense 5,500 1,000 4,800 ----- ----- ----- 18,341 13,644 13,209 Recoveries on loans charged- off: Commercial 150 - - Tax refund loans Consumer - - - Total recoveries 150 - - Loans charged-off: Commercial (4,766) (803) (4,775) Tax refund loans Consumer - - - Total charged-off (4,766) (803) (4,775) ------ ---- ------ Net charge-offs (4,616) (803) (4,775) ------ ---- ------ Balance at end of period $13,725 $12,841 $8,434 ======= ======= ====== Net charge-offs as a percentage of average loans outstanding 2.74% 0.46% 2.51% Allowance for loan losses as a percentage of period-end loans 2.02% 1.85% 1.12% Republic First Bancorp, Inc. Summary of Non-Performing Loans and Assets (unaudited) March December September 31, 31, 30, (dollars in thousands) 2010 2009 2009 ---- ---- ---- Non-accrual loans: Commercial real estate $36,144 $25,449 $17,997 Consumer and other 582 585 588 Total non-accrual loans 36,726 26,034 18,585 Loans past due 90 days or more and still accruing - - - Renegotiated loans --- --- --- Total non-performing loans 36,726 26,034 18,585 Other real estate owned 11,044 13,611 10,847 -- Total non-performing assets $47,770 $39,645 $29,432 ======= ======= ======= Non-performing loans to total loans 5.41% 3.75% 2.62% Non-performing assets to total assets 4.94% 3.93% 3.09% Non-performing loan coverage 37.37% 49.32% 68.03% Allowance for loan losses as a percentage of total period-end loans 2.02% 1.85% 1.78% Non-performing assets/ capital plus allowance for loan losses 60.54% 47.70% 34.45% March June 30, 31, (dollars in thousands) 2009 2009 ---- ---- Non-accrual loans: Commercial real estate $15,262 $14,882 Consumer and other 600 607 Total non-accrual loans 15,862 15,489 Loans past due 90 days or more and still accruing - 2,759 Renegotiated loans --- --- Total non-performing loans 15,862 18,248 Other real estate owned 10,016 10,016 -- -- Total non-performing assets $25,878 $28,264 ======= ======= Non-performing loans to total loans 2.12% 2.43% Non-performing assets to total assets 2.76% 3.10% Non-performing loan coverage 101.10% 46.22% Allowance for loan losses as a percentage of total period-end loans 2.14% 1.12% Non-performing assets/ capital plus allowance for loan losses 29.63% 33.28%
Republic First Bancorp, Inc.
CONTACT: Frank A. Cavallaro, CFO, Republic First Bancorp, Inc.,
+1-215-735-4422
