For
the Quarterly Period Ended: September 30,
2007
|
Commission
File Number:
000-17007
|
Republic
First Bancorp, Inc.
|
(Exact
name of business issuer as specified in its
charter)
|
Pennsylvania
|
23-2486815
|
(State
or other jurisdiction of
|
IRS
Employer Identification
|
incorporation
or organization)
|
Number
|
50
South 16th Street, Philadelphia, Pennsylvania
19102
|
|
(Address
of principal executive offices)
(Zip
code)
|
|
215-735-4422
|
(Registrant's
telephone number, including area
code)
|
N/A
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
Indicate
by check mark whether the registrant (1) has filed all reports required
to
be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934
during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject
to
filing requirements for the past 90
days.
|
YES X
|
NO____
|
Indicate
by check mark whether the registrant is a large accelerated filer,
an
accelerated filer, or a non-accelerated filer. See definition
of “accelerated filer and large accelerated filer” in Rule 12b-2 of the
Exchange Act. (Check one):
|
Large
accelerated filer ____
|
Accelerated
Filer X
|
Non-accelerated
filer ____
|
Indicate
by check mark whether the registrant is a shell company (as defined
in
Rule 12b-2 of the Exchange Act):
|
YES____
|
NO
X
|
APPLICABLE
ONLY TO CORPORATE ISSUERS:
|
Indicate
the number of shares outstanding of each of the Issuer's classes
of common
stock, as of the latestpracticable
date.
|
10,320,908 shares
of Issuer's Common Stock, par value
|
$0.01
per share, issued and outstanding as of November 7,
2007
|
Page
1
|
TABLE
OF CONTENTS
|
|
Part
I: Financial
Information
|
Page
|
Item
1: Financial Statements (unaudited)
|
|
Item
2: Management’s Discussion and Analysis of Financial Condition
and
|
|
Results
of Operations
|
|
Item
3: Quantitative and Qualitative Information about Market
Risk
|
|
Item
4: Controls and Procedures
|
|
Part
II: Other Information
|
|
Item
1: Legal Proceedings
|
|
Item
1A: Risk Factors
|
|
Item
2: Unregistered Sales of Equity and Use of Proceeds
|
|
Item
3: Defaults Upon Senior Securities
|
|
Item
4: Submission of Matters to a Vote of Security Holders
|
|
Item
5: Other Information
|
|
Item
6: Exhibits
|
Page
|
|
Consolidated
Balance Sheets as of September 30, 2007 and December 31, 2006
(unaudited)
|
|
Consolidated
Statements of Income for the three and nine months ended
|
|
September
30, 2007 and 2006 (unaudited)
|
|
Consolidated
Statements of Cash Flows for the nine months ended
|
|
September
30, 2007 and 2006 (unaudited)
|
|
Consolidated
Statements of Changes in Shareholders’ Equity for the nine months
ended
|
|
September
30, 2007 and 2006 (unaudited)
|
|
Notes
to Consolidated Financial Statements (unaudited)
|
|
ASSETS:
|
September
30, 2007
|
December
31, 2006
|
||||||
Cash
and due from banks
|
$ |
10,958
|
$ |
19,454
|
||||
Interest
bearing deposits with banks
|
990
|
426
|
||||||
Federal
funds sold
|
64,986
|
63,247
|
||||||
Total
cash and cash equivalents
|
76,934
|
83,127
|
||||||
Investment
securities available for sale, at fair value
|
80,539
|
102,039
|
||||||
Investment
securities held to maturity, at amortized cost
|
||||||||
(Fair
value of $284 and $338, respectively)
|
281
|
333
|
||||||
Restricted
stock, at cost
|
10,471
|
6,804
|
||||||
Loans
receivable (net of allowance for loan losses of
|
||||||||
$8,791
and $8,058, respectively)
|
832,983
|
784,002
|
||||||
Premises
and equipment, net
|
10,946
|
5,648
|
||||||
Other
real estate owned, net
|
42
|
572
|
||||||
Accrued
interest receivable
|
5,429
|
5,370
|
||||||
Bank
owned life insurance
|
11,604
|
11,294
|
||||||
Other
assets
|
10,890
|
9,635
|
||||||
Total
Assets
|
$ |
1,040,119
|
$ |
1,008,824
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY:
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Demand
– non-interest-bearing
|
$ |
80,451
|
$ |
78,131
|
||||
Demand
– interest-bearing
|
32,548
|
47,573
|
||||||
Money
market and savings
|
246,311
|
260,246
|
||||||
Time
less than $100,000
|
118,927
|
138,566
|
||||||
Time
over $100,000
|
291,652
|
230,257
|
||||||
Total
Deposits
|
769,889
|
754,773
|
||||||
Short-term
borrowings
|
168,435
|
159,723
|
||||||
Accrued
interest payable
|
4,302
|
5,224
|
||||||
Other
liabilities
|
7,780
|
8,184
|
||||||
Subordinated
debt
|
11,341
|
6,186
|
||||||
Total
Liabilities
|
961,747
|
934,090
|
||||||
Shareholders’
Equity:
|
||||||||
Preferred
stock, par value $0.01 per share: 10,000,000 shares
authorized;
|
||||||||
no
shares issued
|
-
|
-
|
||||||
Common
stock par value $0.01 per share, 20,000,000 shares
authorized;
|
||||||||
shares
issued 10,735,720 as of September 30, 2007
|
||||||||
and
9,746,312 as of December 31, 2006
|
107
|
97
|
||||||
Additional
paid in capital
|
74,930
|
63,342
|
||||||
Retained
earnings
|
7,350
|
13,511
|
||||||
Treasury
stock at cost (416,303 and 250,555 shares, respectively)
|
(2,993 | ) | (1,688 | ) | ||||
Stock
held by deferred compensation plan
|
(810 | ) | (810 | ) | ||||
Accumulated
other comprehensive income (loss)
|
(212 | ) |
282
|
|||||
Total
Shareholders’ Equity
|
78,372
|
74,734
|
||||||
Total
Liabilities and Shareholders’ Equity
|
$ |
1,040,119
|
$ |
1,008,824
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Interest
income:
|
||||||||||||||||
Interest
and fees on loans
|
$ |
16,209
|
$ |
14,868
|
$ |
47,166
|
$ |
42,773
|
||||||||
Interest
and dividends on taxable investment securities
|
1,198
|
884
|
3,852
|
1,960
|
||||||||||||
Interest
and dividends on tax-exempt investment securities
|
131
|
31
|
380
|
31
|
||||||||||||
Interest
on federal funds sold and other interest-earning assets
|
139
|
248
|
543
|
900
|
||||||||||||
Total
interest income
|
17,677
|
16,031
|
51,941
|
45,664
|
||||||||||||
Interest
expense:
|
||||||||||||||||
Demand
interest-bearing
|
109
|
165
|
327
|
379
|
||||||||||||
Money
market and savings
|
2,816
|
2,437
|
9,370
|
6,381
|
||||||||||||
Time
less than $100,000
|
1,829
|
1,625
|
5,510
|
4,096
|
||||||||||||
Time
over $100,000
|
2,921
|
1,851
|
8,161
|
5,425
|
||||||||||||
Other
borrowings
|
2,198
|
1,626
|
5,694
|
3,561
|
||||||||||||
Total
interest expense
|
9,873
|
7,704
|
29,062
|
19,842
|
||||||||||||
Net
interest income
|
7,804
|
8,327
|
22,879
|
25,822
|
||||||||||||
Provision
for loan losses
|
1,282
|
-
|
1,425
|
1,374
|
||||||||||||
Net
interest income after provision
|
||||||||||||||||
for
loan losses
|
6,522
|
8,327
|
21,454
|
24,448
|
||||||||||||
Non-interest
income:
|
||||||||||||||||
Loan
advisory and servicing fees
|
156
|
194
|
715
|
1,022
|
||||||||||||
Service
fees on deposit accounts
|
289
|
309
|
871
|
1,167
|
||||||||||||
Gain
on sale of other real estate owned
|
183
|
130
|
185
|
130
|
||||||||||||
Bank
owned life insurance
|
106
|
93
|
309
|
270
|
||||||||||||
Other
income
|
26
|
148
|
75
|
244
|
||||||||||||
760
|
874
|
2,155
|
2,833
|
|||||||||||||
Non-interest
expenses:
|
||||||||||||||||
Salaries
and employee benefits
|
2,713
|
3,083
|
7,874
|
8,938
|
||||||||||||
Occupancy
|
688
|
482
|
1,829
|
1,347
|
||||||||||||
Depreciation
and amortization
|
347
|
253
|
1,036
|
661
|
||||||||||||
Legal
|
166
|
145
|
438
|
450
|
||||||||||||
Other
real estate
|
3
|
-
|
23
|
3
|
||||||||||||
Advertising
|
141
|
173
|
385
|
361
|
||||||||||||
Data
processing
|
172
|
113
|
486
|
351
|
||||||||||||
Insurance
|
106
|
96
|
293
|
261
|
||||||||||||
Professional
fees
|
129
|
144
|
379
|
410
|
||||||||||||
Taxes,
other
|
204
|
176
|
618
|
567
|
||||||||||||
Other
expenses
|
819
|
838
|
2,405
|
2,317
|
||||||||||||
5,488
|
5,503
|
15,766
|
15,666
|
|||||||||||||
Income
before provision for income taxes
|
1,794
|
3,698
|
7,843
|
11,615
|
||||||||||||
Provision
for income taxes
|
558
|
1,263
|
2,535
|
3,982
|
||||||||||||
Net
income
|
$ |
1,236
|
$ |
2,435
|
$ |
5,308
|
$ |
7,633
|
||||||||
Net
income per share (1):
|
||||||||||||||||
Basic
|
$ |
0.12
|
$ |
0.23
|
$ |
0.51
|
$ |
0.73
|
||||||||
Diluted
|
$ |
0.12
|
$ |
0.23
|
$ |
0.50
|
$ |
0.72
|
Republic
First Bancorp, Inc. and
Subsidiary
|
||||||||
Consolidated
Statements of Cash Flows
|
||||||||
For
the Nine Months Ended September 30, 2007 and 2006
|
||||||||
Dollars
in thousands
|
||||||||
(unaudited)
|
||||||||
Nine
months ended
|
||||||||
September
30,
|
||||||||
2007
|
2006
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ |
5,308
|
$ |
7,633
|
||||
Adjustments
to reconcile net income to net
|
||||||||
cash
provided by operating activities:
|
||||||||
Provision
for loan losses
|
1,425
|
1,374
|
||||||
Gain
on sale of other real estate owned
|
(185 | ) | (130 | ) | ||||
Depreciation and
amortization
|
1,036
|
661
|
||||||
Stock
based compensation
|
92
|
10
|
||||||
Amortization
of (discounts) premiums on investment securities
|
(127 | ) |
116
|
|||||
Increase
in value of bank owned life insurance
|
(309 | ) | (270 | ) | ||||
Increase
in accrued interest receivable
|
||||||||
and
other assets
|
(1,061 | ) | (600 | ) | ||||
Increase
(decrease) in accrued interest payable
|
||||||||
and
other liabilities
|
(1,326 | ) |
4,024
|
|||||
Net
cash provided by operating activities
|
4,853
|
12,818
|
||||||
Cash
flows from investing activities:
|
||||||||
Purchase
of securities:
|
||||||||
Available
for sale
|
(4,644 | ) | (41,066 | ) | ||||
Proceeds
from maturities and calls of securities:
|
||||||||
Held
to maturity
|
52
|
54
|
||||||
Available
for sale
|
25,523
|
1,662
|
||||||
Purchase
of restricted stock
|
(3,667 | ) |
-
|
|||||
Proceeds
from sale of restricted stock
|
-
|
225
|
||||||
Net
increase in loans
|
(50,406 | ) | (84,774 | ) | ||||
Net
proceeds from sale of other real estate owned
|
715
|
267
|
||||||
Premises
and equipment expenditures
|
(6,334 | ) | (2,841 | ) | ||||
Net
cash used in investing activities
|
(38,761 | ) | (126,473 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
proceeds from exercise of stock options
|
37
|
680
|
||||||
Purchase
of treasury shares
|
(1,305 | ) |
-
|
|||||
Net
decrease in demand, money market and savings deposits
|
(26,640 | ) | (13,810 | ) | ||||
Increase
of short term borrowings
|
8,712
|
21,927
|
||||||
Issuance
of subordinated debt
|
5,155
|
-
|
||||||
Net
increase in time deposits
|
41,756
|
108,958
|
||||||
Net
cash provided by financing activities
|
27,715
|
117,755
|
||||||
(Decrease)
increase in cash and cash equivalents
|
(6,193 | ) |
4,100
|
|||||
Cash
and cash equivalents, beginning of period
|
83,127
|
106,974
|
||||||
Cash
and cash equivalents, end of period
|
$ |
76,934
|
$ |
111,074
|
||||
Supplemental
disclosure:
|
||||||||
Interest
paid
|
$ |
29,984
|
$ |
16,274
|
||||
Taxes
paid
|
$ |
2,625
|
$ |
3,700
|
Comprehensive
Income
|
Common
Stock
|
Additional
Paid
in
Capital
|
Retained
Earnings
|
Treasury
Stock, at Cost
|
Stock
Held by
Deferred
Compensation
Plan
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||||||||
Balance
January 1, 2007
|
$ |
97
|
$ |
63,342
|
$ |
13,511
|
$ | (1,688 | ) | $ | (810 | ) | $ |
282
|
$ |
74,734
|
||||||||||||||||
Total
other comprehensive loss, net of taxes of $(254)
|
(494 | ) |
–
|
–
|
–
|
–
|
–
|
(494 | ) | (494 | ) | |||||||||||||||||||||
Net
income
|
5,308
|
–
|
–
|
5,308
|
–
|
–
|
–
|
5,308
|
||||||||||||||||||||||||
Total
comprehensive income
|
$ |
4,814
|
||||||||||||||||||||||||||||||
Stock
based compensation
|
–
|
92
|
–
|
–
|
–
|
–
|
92
|
|||||||||||||||||||||||||
Stock
dividend
(974,441
shares)
|
10
|
11,459
|
(11,469 | ) |
–
|
–
|
–
|
–
|
||||||||||||||||||||||||
Options
exercised
(15,067
shares)
|
–
|
37
|
–
|
–
|
–
|
–
|
37
|
|||||||||||||||||||||||||
Purchase
of treasury shares
(140,700
shares)
|
–
|
–
|
–
|
(1,305 | ) |
–
|
–
|
(1,305 | ) | |||||||||||||||||||||||
Balance
September 30, 2007
|
$ |
107
|
$ |
74,930
|
$ |
7,350
|
$ | (2,993 | ) | $ | (810 | ) | $ | (212 | ) | $ |
78,372
|
|||||||||||||||
Comprehensive
Income
|
Common
Stock
|
Additional
Paid
in
Capital
|
Retained
Earnings
|
Treasury
Stock, at Cost
|
Stock
Held by
Deferred
Compensation
Plan
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||||||||
Balance
January 1, 2006
|
$ |
88
|
$ |
50,203
|
$ |
15,566
|
$ | (1,688 | ) | $ | (573 | ) | $ |
81
|
$ |
63,677
|
||||||||||||||||
Total
other comprehensive loss, net of taxes of $35
|
67
|
–
|
–
|
–
|
–
|
–
|
67
|
67
|
||||||||||||||||||||||||
Net
income
|
7,633
|
–
|
–
|
7,633
|
–
|
–
|
–
|
7,633
|
||||||||||||||||||||||||
Total
comprehensive income
|
$ |
7,700
|
||||||||||||||||||||||||||||||
Stock
based compensation
|
–
|
10
|
–
|
–
|
–
|
–
|
10
|
|||||||||||||||||||||||||
Stock
dividend declared
(885,279
shares)
|
8
|
12,165
|
(12,173 | ) |
–
|
|||||||||||||||||||||||||||
Options
exercised
(114,140
shares)
|
1
|
679
|
–
|
–
|
–
|
–
|
680
|
|||||||||||||||||||||||||
Balance
September 30, 2006
|
$ |
97
|
$ |
63,057
|
$ |
11,026
|
$ | (1,688 | ) | $ | (573 | ) | $ |
148
|
$ |
72,067
|
||||||||||||||||
For
the Nine Months Ended September 30,
|
||||||||||||||||
2007
|
2006
|
|||||||||||||||
Shares
|
Weighted
Average
Exercise
Price
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||
Outstanding,
beginning of year
|
661,449
|
$ |
5.55
|
780,309
|
$ |
5.43
|
||||||||||
Granted
|
99,000
|
11.77
|
12,100
|
12.14
|
||||||||||||
Exercised
|
(15,067 | ) | (2.42 | ) | (125,554 | ) | (5.42 | ) | ||||||||
Forfeited
|
(6,050 | ) | (12.14 | ) | (1,988 | ) | (6.74 | ) | ||||||||
Outstanding,
end of period
|
739,332
|
6.39
|
664,867
|
5.55
|
||||||||||||
Options
exercisable at period-end
|
634,282
|
5.50
|
652,767
|
5.43
|
||||||||||||
Weighted
average fair value of options granted during the period
|
$ |
4.61
|
$ |
5.10
|
For
the Nine Months Ended
September
30,
|
||||||||
2007
|
2006
|
|||||||
Number
of options exercised
|
15,067
|
125,554
|
||||||
Cash
received
|
$ |
36,413
|
$ |
680,253
|
||||
Intrinsic
value
|
115,589
|
858,634
|
||||||
Tax
benefit
|
40,456
|
300,522
|
Options
outstanding
|
Options
exercisable
|
|||||||||||
Range
of Exercise Prices
|
Shares
|
Weighted
Average
remaining
contractual
life
(years)
|
Weighted
Average
exercise
price
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||
$1.81
|
106,586
|
3.3
|
$
1.81
|
106,586
|
$
1.81
|
|||||||
$2.72
to $3.55
|
170,687
|
4.5
|
2.94
|
170,687
|
2.94
|
|||||||
$3.76 to
$4.62
|
27,275
|
4.0
|
4.00
|
27,275
|
4.00
|
|||||||
$6.03 to
$6.74
|
169,942
|
6.3
|
6.23
|
169,942
|
6.23
|
|||||||
$9.94
to $12.14
|
264,842
|
8.3
|
10.81
|
159,792
|
10.16
|
|||||||
739,332
|
$
6.39
|
634,282
|
$5.50
|
For
the Nine Months Ended,
|
|||
September
30, 2007
|
|||
Number
of shares
|
Weighted
average grant date fair value
|
||
Nonvested
at beginning of year
|
12,100
|
$ 5.10
|
|
Granted
|
99,000
|
4.61
|
|
Vested
|
-
|
-
|
|
Forfeited
|
(6,050)
|
(5.10)
|
|
Nonvested
at end of period
|
105,050
|
$
4.64
|
Three
months ended September 30,
|
2007
|
2006
|
||||||||||||||
Net
Income
|
$ |
1,236,000
|
$ |
2,435,000
|
||||||||||||
Per
|
Per
|
|||||||||||||||
Shares
|
Share
|
Shares
|
Share
|
|||||||||||||
Weighted
average shares
|
||||||||||||||||
for
period
|
10,344,662
|
10,441,591
|
||||||||||||||
Basic
EPS
|
$ |
0.12
|
$ |
0.23
|
||||||||||||
Add
common stock equivalents
representing
dilutive stock options
|
253,557
|
281,921
|
||||||||||||||
Effect
on basic EPS of dilutive CSE
|
$ |
-
|
$ |
-
|
||||||||||||
Equals
total weighted average
|
||||||||||||||||
shares
and CSE (diluted)
|
10,598,219
|
10,723,517
|
||||||||||||||
Diluted
EPS
|
$ |
0.12
|
$ |
0.23
|
Nine
months ended September 30,
|
2007
|
2006
|
||||||||||||||
Net
Income
|
$ |
5,308,000
|
$ |
7,633,000
|
||||||||||||
Per
|
Per
|
|||||||||||||||
Shares
|
Share
|
Shares
|
Share
|
|||||||||||||
Weighted
average shares
|
||||||||||||||||
for
period
|
10,413,044
|
10,404,066
|
||||||||||||||
Basic
EPS
|
$ |
0.51
|
$ |
0.73
|
||||||||||||
Add
common stock equivalents
representing
dilutive stock options
|
284,577
|
280,547
|
||||||||||||||
Effect
on basic EPS of dilutive CSE
|
$ | (0.01 | ) | $ | (0.01 | ) | ||||||||||
Equals
total weighted average
|
||||||||||||||||
shares
and CSE (diluted)
|
10,697,621
|
10,684,613
|
||||||||||||||
Diluted
EPS
|
$ |
0.50
|
$ |
0.72
|
For
the three months ended
|
For
the three months ended
|
|||||||||||||||||||||||
September
30, 2007
|
September
30, 2006
|
|||||||||||||||||||||||
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
|
$ |
10,817
|
$ |
139
|
5.10 | % | $ |
18,524
|
$ |
248
|
5.31 | % | ||||||||||||
Securities
|
89,042
|
1,399
|
6.28 | % |
59,736
|
931
|
6.23 | % | ||||||||||||||||
Loans
receivable
|
837,417
|
16,209
|
4.68 | % |
742,420
|
14,868
|
7.95 | % | ||||||||||||||||
Total
interest-earning assets
|
937,276
|
17,747
|
7.51 | % |
820,680
|
16,047
|
7.76 | % | ||||||||||||||||
Other
assets
|
40,513
|
36,593
|
||||||||||||||||||||||
Total
assets
|
$ |
977,789
|
$ |
857,273
|
||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand-non
interest
|
||||||||||||||||||||||||
bearing
|
$ |
80,646
|
$ |
78,942
|
||||||||||||||||||||
Demand
interest-bearing
|
35,009
|
$ |
109
|
1.24 | % |
54,003
|
$ |
165
|
1.21 | % | ||||||||||||||
Money
market & savings
|
249,450
|
2,816
|
4.48 | % |
242,621
|
2,437
|
3.99 | % | ||||||||||||||||
Time
deposits
|
358,192
|
4,750
|
5.26 | % |
285,448
|
3,476
|
4.83 | % | ||||||||||||||||
Total
deposits
|
723,297
|
7,675
|
4.21 | % |
661,014
|
6,078
|
3.65 | % | ||||||||||||||||
Total
interest-bearing
|
||||||||||||||||||||||||
deposits
|
642,651
|
7,675
|
4.74 | % |
582,072
|
6,078
|
4.19 | % | ||||||||||||||||
Other
borrowings (1)
|
162,268
|
2,198
|
5.37 | % |
114,227
|
1,626
|
5.65 | % | ||||||||||||||||
Total
interest-bearing
|
||||||||||||||||||||||||
liabilities
|
$ |
804,919
|
$ |
9,873
|
4.87 | % | $ |
696,299
|
$ |
7,704
|
4.39 | % | ||||||||||||
Total
deposits and
|
||||||||||||||||||||||||
other
borrowings
|
885,565
|
9,873
|
4.42 | % |
775,241
|
7,704
|
3.94 | % | ||||||||||||||||
Non
interest-bearing
|
||||||||||||||||||||||||
liabilites
|
14,266
|
11,309
|
||||||||||||||||||||||
Shareholders'
equity
|
77,958
|
70,723
|
||||||||||||||||||||||
Total
liabilities and
|
||||||||||||||||||||||||
shareholders'
equity
|
$ |
977,789
|
$ |
857,273
|
||||||||||||||||||||
Net
interest income
|
$ |
7,874
|
$ |
8,343
|
||||||||||||||||||||
Net
interest spread
|
2.64 | % | 3.37 | % | ||||||||||||||||||||
Net
interest margin
|
3.33 | % | 4.03 | % | ||||||||||||||||||||
(1)
Includes $11.3 million of trust preferred securities
|
Three
months ended September 30, 2007
|
||||||||||||
versus
September 30, 2006
|
||||||||||||
(dollars
in thousands)
|
||||||||||||
Due
to change in:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Interest
earned on:
|
||||||||||||
Federal
funds sold
|
$ | (98 | ) | $ | (11 | ) | $ | (109 | ) | |||
Securities
(1)
|
464
|
4
|
468
|
|||||||||
Loans
|
1,839
|
(498 | ) |
1,341
|
||||||||
Total
interest-earning assets (1)
|
2,205
|
(505 | ) |
1,700
|
||||||||
Interest
expense of deposits
|
||||||||||||
Interest-bearing
demand deposits
|
59
|
(3 | ) |
56
|
||||||||
Money
market and savings
|
(77 | ) | (303 | ) | (380 | ) | ||||||
Time
deposits
|
(964 | ) | (309 | ) | (1,273 | ) | ||||||
Total
deposit interest expense
|
(982 | ) | (615 | ) | (1,597 | ) | ||||||
Other
borrowings
|
(651 | ) |
79
|
(572 | ) | |||||||
Total
interest expense
|
(1,633 | ) | (536 | ) | (2,169 | ) | ||||||
Net
interest income (1)
|
$ |
572
|
$ | (1,041 | ) | $ | (469 | ) | ||||
(1)
As adjusted for tax equivalency for tax exempt municipal securities
income
|
For
the nine months ended
|
For
the nine months ended
|
|||||||||||||||||||||||
September
30, 2007
|
September
30, 2006
|
|||||||||||||||||||||||
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
|
$ |
14,424
|
$ |
543
|
5.03 | % | $ |
25,039
|
$ |
900
|
4.81 | % | ||||||||||||
Securities
|
98,571
|
4,436
|
6.00 | % |
48,300
|
2,007
|
5.54 | % | ||||||||||||||||
Loans
receivable
|
819,243
|
47,166
|
7.70 | % |
714,695
|
42,773
|
8.00 | % | ||||||||||||||||
Total
interest-earning assets
|
932,238
|
52,145
|
7.48 | % |
788,034
|
45,680
|
7.75 | % | ||||||||||||||||
Other
assets
|
39,029
|
36,940
|
||||||||||||||||||||||
Total
assets
|
$ |
971,267
|
$ |
824,974
|
||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Demand-non
interest
|
||||||||||||||||||||||||
bearing
|
$ |
78,502
|
$ |
83,231
|
||||||||||||||||||||
Demand
interest-bearing
|
39,766
|
$ |
327
|
1.10 | % |
54,270
|
$ |
379
|
0.93 | % | ||||||||||||||
Money
market & savings
|
275,249
|
9,370
|
4.55 | % |
236,160
|
6,381
|
3.61 | % | ||||||||||||||||
Time
deposits
|
347,292
|
13,671
|
5.26 | % |
286,542
|
9,521
|
4.44 | % | ||||||||||||||||
Total
deposits
|
740,809
|
23,368
|
4.22 | % |
660,203
|
16,281
|
3.30 | % | ||||||||||||||||
Total
interest-bearing
|
||||||||||||||||||||||||
deposits
|
662,307
|
23,368
|
4.72 | % |
576,972
|
16,281
|
3.77 | % | ||||||||||||||||
Other
borrowings (1)
|
139,188
|
5,694
|
5.47 | % |
86,603
|
3,561
|
5.50 | % | ||||||||||||||||
Total
interest-bearing
|
||||||||||||||||||||||||
liabilities
|
$ |
801,495
|
$ |
29,062
|
4.85 | % | $ |
663,575
|
$ |
19,842
|
4.00 | % | ||||||||||||
Total
deposits and
|
||||||||||||||||||||||||
other
borrowings
|
879,997
|
29,062
|
4.42 | % |
746,806
|
19,842
|
3.55 | % | ||||||||||||||||
Non
interest-bearing
|
||||||||||||||||||||||||
liabilites
|
14,184
|
10,194
|
||||||||||||||||||||||
Shareholders'
equity
|
77,086
|
67,974
|
||||||||||||||||||||||
Total
liabilities and
|
||||||||||||||||||||||||
shareholders'
equity
|
$ |
971,267
|
$ |
824,974
|
||||||||||||||||||||
Net
interest income
|
$ |
23,083
|
$ |
25,838
|
||||||||||||||||||||
Net
interest spread
|
2.63 | % | 3.75 | % | ||||||||||||||||||||
Net
interest margin
|
3.31 | % | 4.38 | % | ||||||||||||||||||||
(1)
Includes $8.0 million of average trust preferred
securities
|
Nine
months ended September 30, 2007
|
||||||||||||
versus
September 30, 2006
|
||||||||||||
(dollars
in thousands)
|
||||||||||||
Due
to change in:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Interest
earned on:
|
||||||||||||
Federal
funds sold
|
$ | (401 | ) | $ |
44
|
$ | (357 | ) | ||||
Securities
(1)
|
2,256
|
173
|
2,429
|
|||||||||
Loans
|
6,019
|
(1,626 | ) |
4,393
|
||||||||
Total
interest-earning assets (1)
|
7,874
|
(1,409 | ) |
6,465
|
||||||||
Interest
expense of deposits
|
||||||||||||
Interest-bearing
demand deposits
|
119
|
(67 | ) |
52
|
||||||||
Money
market and savings
|
(1,331 | ) | (1,658 | ) | (2,989 | ) | ||||||
Time
deposits
|
(2,391 | ) | (1,759 | ) | (4,150 | ) | ||||||
Total
deposit interest expense
|
(3,603 | ) | (3,484 | ) | (7,087 | ) | ||||||
Other
borrowings
|
(2,151 | ) |
18
|
(2,133 | ) | |||||||
Total
interest expense
|
(5,754 | ) | (3,466 | ) | (9,220 | ) | ||||||
Net
interest income (1)
|
$ |
2,120
|
$ | (4,875 | ) | $ | (2,755 | ) | ||||
(1)
As adjusted for tax equivalency for tax exempt municipal securities
income
|
Actual
|
For
Capital
Adequacy
purposes
|
To
be well
capitalized
under FRB
capital
guidelines
|
||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||
Dollars
in thousands
|
||||||||||||||
At
September 30, 2007
|
||||||||||||||
Total
risk based capital
|
||||||||||||||
Republic
|
$97,993
|
10.84%
|
$72,290
|
8.00%
|
$90,362
|
10.00%
|
||||||||
Company
|
98,374
|
10.87%
|
72,393
|
8.00%
|
-
|
N/A
|
||||||||
Tier
one risk based capital
|
||||||||||||||
Republic
|
89,202
|
9.87%
|
36,145
|
4.00%
|
54,217
|
6.00%
|
||||||||
Company
|
89,583
|
9.90%
|
36,197
|
4.00%
|
-
|
N/A
|
||||||||
Tier
one leveraged capital
|
||||||||||||||
Republic
|
89,202
|
9.12%
|
48,886
|
5.00%
|
48,886
|
5.00%
|
||||||||
Company
|
89,583
|
9.16%
|
48,889
|
5.00%
|
-
|
N/A
|
||||||||
Actual
|
For
Capital
Adequacy
purposes
|
To
be well
capitalized
under FRB
capital
guidelines
|
||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||
At
December 31, 2006
|
||||||||||||||
Total
risk based capital
|
||||||||||||||
Republic
|
$88,256
|
10.28%
|
$61,009
|
8.00%
|
$76,261
|
10.00%
|
||||||||
Company
|
88,510
|
10.30%
|
61,098
|
8.00%
|
-
|
N/A
|
||||||||
Tier
one risk based capital
|
||||||||||||||
Republic
|
80,198
|
9.34%
|
30,505
|
4.00%
|
45,757
|
6.00%
|
||||||||
Company
|
80,452
|
9.36%
|
30,549
|
4.00%
|
-
|
N/A
|
||||||||
Tier
one leveraged capital
|
||||||||||||||
Republic
|
80,198
|
8.72%
|
45,989
|
5.00%
|
45,989
|
5.00%
|
||||||||
Company
|
80,452
|
8.75%
|
45,990
|
5.00%
|
-
|
N/A
|
(Dollars
in thousands)
|
As
of September 30, 2007
|
|
As
of December 31, 2006
|
|||||||||||||
Balance
|
%
of Total
|
Balance
|
%
of Total
|
|||||||||||||
Commercial:
|
||||||||||||||||
Real
estate secured
|
$ |
482,242
|
57.3 | % | $ |
465,506
|
58.8 | % | ||||||||
Construction
and land development
|
245,905
|
29.2
|
218,671
|
27.6
|
||||||||||||
Non
real estate secured
|
80,109
|
9.5
|
71,816
|
9.1
|
||||||||||||
Non
real estate unsecured
|
7,316
|
0.9
|
8,598
|
1.1
|
||||||||||||
815,572
|
96.9
|
764,591
|
96.6
|
|||||||||||||
Residential
real estate
|
6,006
|
0.7
|
6,517
|
0.8
|
||||||||||||
Consumer
& other
|
20,196
|
2.4
|
20,952
|
2.6
|
||||||||||||
Total
loans, net of unearned income
|
841,774
|
100.0 | % |
792,060
|
100.0 | % | ||||||||||
Less:
allowance for loan losses
|
(8,791 | ) | (8,058 | ) | ||||||||||||
Net
loans
|
$ |
832,983
|
$ |
784,002
|
September
30,
2007
|
December
31,
2006
|
|||||||
(Dollars
in thousands)
|
||||||||
Loans
accruing, but past due 90 days or more
|
$ |
-
|
$ |
-
|
||||
Non-accrual
loans
|
25,435
|
6,916
|
||||||
Total
non-performing loans (1)
|
25,435
|
6,916
|
||||||
Other
real estate owned
|
42
|
572
|
||||||
Total
non-performing assets (2)
|
$ |
25,477
|
$ |
7,488
|
||||
Non-performing
loans as a percentage of total loans net of unearned
|
||||||||
income
|
3.02 | % | 0.87 | % | ||||
Non-performing
assets as a percentage of total assets
|
2.45 | % | 0.74 | % |
(1)
|
Non-performing
loans are comprised of (i) loans that are on a nonaccrual basis;
(ii) accruing loans that are 90 days or more past due and
(iii) restructured loans.
|
(2)
|
Non-performing
assets are composed of non-performing loans and other real estate
owned
(assets acquired in foreclosure).
|
For
the
nine months
ended
|
For
the
twelve
months
ended
|
For
the
nine months
ended
|
||||||||||
(dollars
in thousands)
|
September
30, 2007
|
December
31, 2006
|
September
30, 2006
|
|||||||||
Balance
at beginning of period
|
$ |
8,058
|
$ |
7,617
|
$ |
7,617
|
||||||
Charge-offs:
|
||||||||||||
Commercial
and construction
|
1,028
|
601
|
445
|
|||||||||
Tax
refund loans
|
-
|
1,286
|
1,286
|
|||||||||
Consumer
|
2
|
-
|
-
|
|||||||||
Total
charge-offs
|
1,030
|
1,887
|
1,731
|
|||||||||
Recoveries:
|
||||||||||||
Commercial
and construction
|
81
|
37
|
35
|
|||||||||
Tax
refund loans
|
256
|
927
|
639
|
|||||||||
Consumer
|
1
|
-
|
-
|
|||||||||
Total
recoveries
|
338
|
964
|
674
|
|||||||||
Net
charge-offs
|
692
|
923
|
1,057
|
|||||||||
Provision
for loan losses
|
1,425
|
1,364
|
1,374
|
|||||||||
Balance
at end of
period
|
$ |
8,791
|
$ |
8,058
|
$ |
7,934
|
||||||
Average
loans outstanding
(1)
|
$ |
819,243
|
$ |
728,754
|
$ |
714,695
|
||||||
As
a percent of average loans (1):
|
||||||||||||
Net
charge-offs
(annualized)
|
0.11 | % | 0.13 | % | 0.20 | % | ||||||
Provision
for loan losses
(annualized)
|
0.23 | % | 0.19 | % | 0.26 | % | ||||||
Allowance
for loan
losses
|
1.07 | % | 1.11 | % | 1.11 | % | ||||||
Allowance
for loan losses to:
|
||||||||||||
Total
loans, net of unearned
income at period end
|
1.04 | % | 1.02 | % | 1.04 | % | ||||||
Total
non-performing loans at
period end
|
34.56 | % | 116.51 | % | 79.56 | % |
Issuer
Purchases of Equity Securities
|
||||||||||
Total
|
Maximum
|
|||||||||
Number
of
|
Number
|
|||||||||
Shares
|
of
Shares
|
|||||||||
Purchased
as
|
that
|
|||||||||
Total
|
Part
of
|
May
Yet Be
|
||||||||
Number
of
|
Average
|
Publically
|
Purchased
|
|||||||
Shares
|
Price
Paid per
|
Announced
|
Under
the
|
|||||||
Period
|
Purchased
|
Share
|
Program
|
Program
(a) (b) (c)
|
||||||
June
20 through
|
||||||||||
June
29, 2007
|
44,500
|
$ 9.79
|
44,500
|
455,500
|
||||||
July
3 through
|
||||||||||
July
31, 2007
|
60,800
|
$ 9.51
|
60,800
|
394,700
|
||||||
August
1 through
|
||||||||||
August
22, 2007
|
35,400
|
$ 8.21
|
35,400
|
359,300
|
||||||
(a)
The implementation of the Stock Repurchase Program was announced
on June
13, 2007.
|
||||||||||
(b)
The amount of shares to be repurchased will not exceed 5%, or
approximately 500,000 shares.
|
||||||||||
(c)
The repurchase program is in effect from June 14, 2007 through
June 30,
2008.
|
Republic
First Bancorp, Inc.
|
|
/s/Harry
D. Madonna
|
|
Chairman,
President and Chief Executive Officer
|
|
/s/Paul
Frenkiel
|
|
Executive
Vice President and Chief Financial Officer
|
|