PHILADELPHIA, Oct. 21 /PRNewswire-FirstCall/ -- Republic First Bancorp,
Inc. (Nasdaq: FRBK), (the 'Company') the holding company for Republic First
Bank (PA), today reported an increase in third quarter 2008 earnings to $1.5
million or $.14 per diluted share, from $1.2 million or $.12 per share in
third quarter 2007. It also represented an increase when compared to the
linked quarter's net income of $1.2 million or $.11 per diluted share.
Income Statement
(dollars in thousands, except per share data)
Three months ended
% %
9/30/08 6/30/08 Change 9/30/07 Change
Total revenues $8,290 $7,840 6% $8,564 -3%
Net income $1,533 $1,189 29% $1,236 24%
Diluted net income per share $0.14 $0.11 27% $0.12 17%
Balance Sheet
(dollars in millions)
% %
9/30/08 6/30/08 Change 9/30/07 Change
Total assets $965 $948 2% $1,040 -7%
Total deposits $729 $729 0% $770 -5%
Total loans (net) $764 $784 -2.5% $833 -8%
Chief Executive Officer's Statement
In commenting on the Company's financial results, Harry D. Madonna, Chief
Executive Officer noted the following highlights:
-- Credit quality improved as nonperforming assets were reduced to $15.9
million at September 30, 2008, down from $26.0 million at December 31,
2007.
-- The net interest margin increased to 3.48% in the quarter compared to
3.19% in the linked quarter.
-- Net income of $1.5 million and earnings per share of $.14 for the
quarter represented increases from linked and prior year quarters.
-- Tier one leverage capital amounted to 11.02% at September 30, 2008.
Harry D. Madonna, Chief Executive Officer, stated, 'The third quarter
showed continuing improvements in performance in several areas. First , non
performing assets declined to $15.9 million from $26.0 million at December
31, 2007 and $17.4 million at June 30, 2008. And, we continue to emphasize
credit quality in our lending decisions. So, while loans decreased modestly
during the quarter, we have begun developing loan programs which should
increase volume in the future. Notwithstanding charges related to other real
estate owned sold during the quarter, net income increased to $1.5 million and
$.14 per share. Reflected in that increase was an increase in the interest
margin to 3.48%. Further, we are implementing strategies to increase core
deposits, which will have a positive impact on future margins.
We continue to gather momentum in the creation of a new 'killer brand'
with new stores, new products, new excitement and new people including
several long time Commerce Bank team members including Rhonda Costello, Chief
Retail Officer; Andrew Logue, Chief Operating Officer; Janet Roig, Cash
Management and Government Banking and several others.'
Income Statement
(dollars in thousands, except per share data)
Three months ended
% %
9/30/08 6/30/08 Change 9/30/07 Change
Total revenues* $8,290 $7,840 6% $8,564 -3%
Total operating expenses $6,008 $6,061 -1% $5,488 9%
Net income $1,533 $1,189 29% $1,236 24%
Diluted earnings per share $0.14 $0.11 27% $0.12 17%
Nine months ended
%
9/30/08 9/30/07 Change
Total revenues* $24,017 $25,034 -4%
Total operating expenses $18,517 $15,766 17%
Net income $(56) $5,308 -101%
Diluted earnings per share $(0.01) $0.50 -102%
* Net interest income plus
noninterest income
Total revenues of $8.3 million for the third quarter represented a 6%
increase over the linked quarter. The increase resulted primarily from
increased net interest income, which reflected the maturity of higher rate
retail certificates of deposit. The lower revenues in 2008 compared to the
prior year, reflected lower loan balances which contributed to a lower net
interest margin. Operating expenses were reduced 1% to $6.1 million compared
to the linked quarter. Expenses were higher in 2008 compared to the prior
year, primarily as a result of other real estate owned expense for properties
sold during the quarter.
Balance Sheet Highlights
(dollars in thousands)
% %
9/30/08 6/30/08 Change 9/30/07 Change
Total assets $964,732 $947,589 2% $1,040,119 -7%
Total loans (net) 764,245 784,115 -2.5% 832,983 -8%
Total deposits 729,487 728,559 0% 769,889 -5%
Total core deposits* 350,215 346,885 1% 359,310 -3%
* Core deposits exclude
all certificates of
deposit.
Our primary focus is to build core deposits to fund our local lenders
making local loans. We are additionally developing loan programs which should
increase loan growth in a safe and sound manner in the future. Core deposits,
which exclude all certificates of deposit, increased to $350 million at
September 30, 2008, an increase of $3.3 million, or 1% from June 30, 2008. A
decrease compared to the prior year reflected intentional reductions of
higher cost deposits.
Lending
Gross loans at September 30, amounted to $771 million, a decrease of
$19.8 million or 2.5% compared to June 30, 2008. The composition of the
Company's loan portfolio is as follows:
% of % of $ % of
9/30/08 Total 6/30/08 Total Incr/(Decr) 9/30/07 Total
Commercial:
Real estate
secured $457,440 59% $466,328 59% $(8,888) $482,242 57%
Construction
& land
development 218,018 28% 220,104 28% (2,086) 245,905 29%
C & I 68,853 9% 77,729 9% (8,876) 87,425 11%
Total
commercial 744,311 96% 764,161 96% (19,850) 815,572 97%
Residential
real estate 5,722 1% 5,870 1% (148) 6,006 1%
Consumer &
other 21,019 3% 20,844 3% 175 20,196 2%
Gross loans $771,052 100% $790,875 100% $(19,823) $841,774 100%
Asset Quality
The Company's asset quality ratios are highlighted below:
Quarter Ended
9/30/08 6/30/08 9/30/07
Nonperforming assets/total assets 1.65% 1.84% 2.45%
Net loan charge-offs/average total loans 0.00% 1.73% 0.07%
Loan loss reserve/gross loans 0.88% 0.85% 1.04%
Nonperforming loan coverage 93% 215% 35%
Nonperforming assets/capital and reserves 19% 20% 29%
Non-performing assets at September 30, 2008 dropped to $15.9 million, or
1.65% of total assets, a reduction from $17.4 million or 1.84% of total assets
at June 30, 2008 and $25.5 million or 2.45% of total assets a year ago.
