- Prospectus filed pursuant to Rule 424(b)(3) (424B3)

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-156238

 

 

 

PROPOSED MERGER—YOUR VOTE IS VERY IMPORTANT

 

Dear Shareholders:

 

You recently received a joint proxy statement/prospectus dated February 4, 2009 relating to the special meetings of the shareholders of Republic First Bancorp, Inc. and Pennsylvania Commerce Bancorp, Inc. to consider and vote upon the proposed merger of Republic First with and into Pennsylvania Commerce.  The joint proxy statement/prospectus contained, among other important information regarding the companies, the meetings and the proposed merger, unaudited financial results for the quarter and year ended December 31, 2008.  This letter supplements the joint proxy statement/prospectus solely to reflect revised unaudited financial results for the quarter and year ended December 31, 2008 as reported by Republic First in a March 4, 2009 press release.  In the aggregate, the revisions reduce net income (loss) by $921,000.

 

These revisions have no impact on the merger agreement, any of its terms or the consideration to be received by Republic First shareholders as a result of the merger.  We continue to believe that the proposed merger of Pennsylvania Commerce and Republic First will create significant opportunities and value for our shareholders, customers, employees and communities, and is in the best interest of both of our companies.

 

This letter, together with the enclosed press release, constitute a supplement to the joint proxy statement/ prospectus.  The information set forth in the press release corrects and supersedes the information contained in the joint proxy statement/prospectus at page 12, under the caption “Recent Developments—Republic First,” and at pages 81 to 84, under the caption “—Republic First Earnings Release.”

 

You should rely only on the information contained in this supplement and, as corrected and superseded, in the joint proxy statement/prospectus.  If you have any questions about the shareholders’ meetings or the merger, or if you need additional copies of this supplement, the joint proxy statement/prospectus, or the proxy card, you should contact one of the following.

 

Pennsylvania Commerce shareholders :   Pennsylvania Commerce Bancorp, Inc. 3801 Paxton Street Harrisburg, Pennsylvania 17111 Attention:  Sherry Richart Telephone:  [phone]

Republic First shareholders :   Republic First Bancorp, Inc. 50 South 16th Street, Suite 2400 Philadelphia, Pennsylvania 19102 Attention: Linda Lewis Telephone: [phone], ext. 5332

Your vote is very important .  We continue to expect to complete the merger during the second quarter of 2009.   Whether or not you plan to attend your shareholders’ meeting, please take the time to vote by completing and mailing your proxy card in accordance with the instructions on the card.  You may also vote over the Internet or by telephone in accordance with the instructions on your proxy card.  If you hold your shares in “street name,” you should vote in accordance with the instructions provided by your broker.

 

March 5, 2009

Gary L. Nalbandian Chairman, President and CEO Pennsylvania Commerce Bancorp, Inc.

Harry D. Madonna Chairman, President and CEO Republic First Bancorp, Inc.

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		NEWS RELEASE
		FOR RELEASE IMMEDIATELY
		Contact: Harry D. Madonna, CEO
		[phone]

REPUBLIC FIRST BANCORP, INC.

REPORTS REVISED FOURTH QUARTER EARNINGS

Philadelphia, PA, March 4, 2009 – Republic First Bancorp, Inc. (NASDAQ:FRBK), (the “Company”) the holding company for Republic First Bank (PA), today reported revised fourth quarter earnings.  Due primarily to a net impairment charge of approximately $.09 per diluted share on a bank pooled trust preferred security, the Company reported a fourth quarter 2008 net loss of $416,000 or $.04 per diluted share, compared to previously reported fourth quarter 2008 net income of $505,000 or $.05 per diluted share.  The Company reported a net loss of $472,000 or $.04 per diluted share for 2008 compared to net income of $449,000 or $.04 per diluted share as previously reported.

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.

 

# # #

 

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Republic First Bancorp, Inc.
Selected Consolidated Financial Data
(Unaudited)
										At or for the																At or for the
										Three months ended																Twelve months ended
										%								%												%
(in thousands, except per share amounts)		12/31/08				9/30/08				Change				12/31/07				Change				12/31/08				12/31/07				Change
Income Statement Data:
Net interest income		$	7,051			$	7,618				-7	%		$	7,160				-2	%		$	28,895			$	30,039				-4	%
Provision for loan losses			1,601				43				3623	%			165				870	%			7,499				1,590				372	%
Noninterest income (loss)			(931	)			672				-239	%			918				-201	%			1,242				3,073				-60	%
Total revenues			6,120				8,290				-26	%			8,078				-24	%			30,137				33,112				-9	%
Noninterest operating expenses			5,370				6,008				-11	%			5,598				-4	%			23,887				21,364				12	%
Provision (benefit) for income taxes			(435	)			706				-162	%			738				-159	%			(777	)			3,273				-124	%
Net income (loss)			(416	)			1,533				-127	%			1,577				-126	%			(472	)			6,885				-107	%
Per Common Share Data:
Net income (loss): Basic		$	(0.04	)		$	0.14				-129	%		$	0.15				-127	%		$	(0.04	)		$	0.66				-106	%
Net income (loss): Diluted			(0.04	)			0.14				-129	%			0.15				-127	%			(0.04	)			0.65				-106	%
Book Value		$	7.46			$	7.47							$	7.80							$	7.46			$	7.80
Weighted average shares outstanding:
Basic			10,623				10,581								10,320								10,503				10,390
Diluted			10,623				12,310								10,556								10,503				10,662
Balance Sheet Data:
Total assets		$	951,980			$	964,732				-1	%										$	951,980			$	1,016,308				-6	%
Loans (net)			774,673				764,245				1	%											774,673				813,041				-5	%
Allowance for loan losses			8,409				6,807				24	%											8,409				8,508				-1	%
Investment securities - AFS			83,032				86,345				-4	%											83,032				83,659				-1	%
Investment securities - HTM			198				203				-2	%											198				282				-30	%
Restricted stock			6,836				6,401				7	%											6,836				6,358				8	%
Federal funds sold			21,159				38,382				-45	%											21,159				61,909				-66	%
Total deposits			739,167				729,487				1	%											739,167				780,855				-5	%
Core deposits*			345,501				350,215				-1	%											345,501				357,920				-3	%
FHLB and overnight advances			102,309				125,682				-19	%											102,309				133,433				-23	%
Trust preferred			22,476				22,476				0	%											22,476				11,341				98	%
Stockholders' equity			79,327				79,257				0	%											79,327				80,467				-1	%
Capital:
Stockholders' equity to total assets			8.33	%			8.22	%															8.33	%			7.92	%
Leverage ratio			11.14	%			11.02	%															11.14	%			9.44	%
Risk based capital ratios:
Tier 1			12.26	%			12.28	%															12.26	%			10.07	%
Total Capital			13.26	%			13.09	%															13.26	%			11.01	%
Performance Ratios:
Cost of funds			2.51	%			2.77	%							4.20	%							2.94	%			4.36	%
Deposit cost of funds			2.50	%			2.69	%							4.09	%							2.92	%			4.18	%
Net interest margin			3.25	%			3.48	%							3.11	%							3.28	%			3.26	%
Return on average assets			-0.18	%			0.65	%							0.65	%							-0.05	%			0.71	%
Return on average total stockholders' equity			-2.08	%			7.76	%							7.88	%							-0.60	%			8.86	%
Asset Quality
Net charge-offs to average loans outstanding			0.00	%			0.00	%															0.96	%			0.14	%
Nonperforming assets to total period-end assets			2.72	%			1.64	%															2.72	%			2.55	%
Allowance for loan losses to total period-end loans			1.07	%			0.88	%															1.07	%			1.04	%
Allowance for loan losses to nonperforming loans			49	%			93	%															49	%			38	%
Nonperforming assets to capital and reserves			30	%			18	%															30	%			29	%
* Core deposits exclude certificates of deposit

 

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Republic First Bancorp, Inc. Average Balances and Net Interest Income
(unaudited)
		For the three months ended												For the three months ended												For the three months ended												For the twelve months ended												For the twelve months ended
		December 31, 2008												September 30, 2008												December 31, 2007												December 31, 2008												December 31, 2007
Interest-earning assets:
						Interest												Interest												Interest												Interest												Interest
(Dollars in thousands)		Average				Income/				Yield/				Average				Income/				Yield/				Average				Income/				Yield/				Average				Income/				Yield/				Average				Income/				Yield/
		Balance				Expense				Rate				Balance				Expense				Rate				Balance				Expense				Rate				Balance				Expense				Rate				Balance				Expense				Rate
Federal funds sold
and other interest-
earning assets		$	7,863			$	19				0.96	%		$	8,568			$	45				2.09	%		$	12,439			$	139				4.56	%		$	9,821			$	218				2.22	%		$	13,923			$	686				4.93	%
Securities			94,903				1,321				5.57	%			92,525				1,334				5.77	%			87,240				1,316				5.98	%			89,365				5,135				5.75	%			95,715				5,752				6.01	%
Loans receivable			767,597				11,025				5.71	%			775,642				12,208				6.26	%			823,751				15,018				7.23	%			789,446				48,846				6.19	%			820,380				62,184				7.58	%
Total interest-earning assets			870,363				12,365				5.65	%			876,735				13,587				6.17	%			923,430				16,473				7.08	%			888,632				54,199				6.10	%			930,018				68,622				7.38	%
Other assets			49,664												57,371												42,437												51,349												39,889
Total assets		$	920,027											$	934,106											$	965,867											$	939,981											$	969,907
Interest-bearing liabilities:
Demand-non interest
bearing		$	77,221											$	71,990											$	79,052											$	76,671											$	78,641
Demand interest-bearing			31,644			$	44				0.55	%			31,090			$	68				0.87	%			36,132			$	101				1.11	%			33,976			$	327				0.96	%			38,850			$	428				1.10	%
Money market & savings			230,668				1,487				2.56	%			240,554				1,625				2.69	%			241,357				2,566				4.22	%			222,590				6,150				2.76	%			266,706				11,936				4.48	%
Time deposits			384,352				3,019				3.12	%			381,820				3,216				3.35	%			402,151				5,151				5.08	%			397,740				14,844				3.73	%			361,120				18,822				5.21	%
Total deposits			723,885				4,550				2.50	%			725,454				4,909				2.69	%			758,692				7,818				4.09	%			730,977				21,321				2.92	%			745,317				31,186				4.18	%
Total interest-bearing
deposits			646,664				4,550				2.80	%			653,464				4,909				2.99	%			679,640				7,818				4.56	%			654,306				21,321				3.26	%			666,676				31,186				4.68	%
Other borrowings			109,608				714				2.59	%			122,709				1,005				3.26	%			115,121				1,427				4.92	%			121,236				3,760				3.10	%			133,122				7,121				5.35	%
Total interest-bearing
liabilities		$	756,272			$	5,264				2.77	%		$	776,173			$	5,914				3.03	%		$	794,761			$	9,245				4.62	%		$	775,542			$	25,081				3.23	%		$	799,798			$	38,307				4.79	%
Total deposits and
other borrowings			833,493				5,264				2.51	%			848,163				5,914				2.77	%			873,813				9,245				4.20	%			852,213				25,081				2.94	%			878,439				38,307				4.36	%
Non interest-bearing
liabilities			7,034												7,393												12,628												8,459												13,734
Shareholders' equity			79,500												78,550												79,426												79,309												77,734
Total liabilities and
shareholders' equity		$	920,027											$	934,106											$	965,867											$	939,981											$	969,907
Net interest income						$	7,101											$	7,673											$	7,228											$	29,118											$	30,315
Net interest spread											2.88	%											3.14	%											2.46	%											2.87	%											2.59	%
Net interest margin											3.25	%											3.48	%											3.11	%											3.28	%											3.26	%
The above tables are presented on a tax equivalent basis.

 

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Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
		Three months ended												Twelve months ended
(dollar amounts in thousands)		12/31/08				9/30/08				12/31/07				12/31/08				12/31/07
Balance at beginning of period		$	6,807			$	6,760			$	8,791			$	8,508			$	8,058
Provisions charged to operating expense			1,601				43				165				7,499				1,590
			8,408				6,803				8,956				16,007				9,648
Recoveries on loans charged-off:
Commercial			-				2				-				119				81
Tax refund loans			-				8				27				77				283
Consumer			1				-				1				3				2
Total recoveries			1				10				28				199				366
Loans charged-off:
Commercial			-				-				(475	)			(7,778	)			(1,503	)
Tax refund loans			-				-				-				-				-
Consumer			-				(6	)			(1	)			(19	)			(3	)
Total charged-off			-				(6	)			(476	)			(7,797	)			(1,506	)
Net charge-offs			1				4				(448	)			(7,598	)			(1,140	)
Balance at end of period		$	8,409			$	6,807			$	8,508			$	8,409			$	8,508
Net charge-offs as a percentage of
average loans outstanding			0.00	%			0.00	%			0.22	%			0.96	%			0.14	%
Allowance for loan losses as a percentage of
period-end loans			1.07	%			0.88	%			1.04	%			1.07	%			1.04	%

 

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Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
		December 31,				September 30,				June 30,				March 31,				December 31,
		2008				2008				2008				2008				2007
Nonaccrual loans:
Commercial real estate		$	16,424			$	6,369			$	2,366			$	2,427			$	14,757
Construction			-				-				-				-				6,747
Consumer and other			909				918				780				640				776
Total nonaccrual loans			17,333				7,287				3,146				3,067				22,280
Loans past due 90 days or more
and still accruing			-				-				-				-				-
Renegotiated loans			-				-				-				-				-
Total nonperforming loans			17,333				7,287				3,146				3,067				22,280
Other real estate owned			8,580				8,580				14,245				16,378				3,681
Total nonperforming assets		$	25,913			$	15,867			$	17,391			$	19,445			$	25,961
Nonperforming loans to total loans			2.21	%			0.95	%			0.40	%			0.38	%			2.71	%
Nonperforming assets to total assets			2.72	%			1.64	%			1.84	%			1.95	%			2.55	%
Nonperforming loan coverage			49	%			93	%			215	%			331	%			38	%
Allowance for loan losses as a percentage
of total period-end loans			1.07	%			0.88	%			0.85	%			1.27	%			1.04	%
Nonperforming assets/capital plus allowance for loan losses			30	%			18	%			20	%			22	%			29	%

 

 

 

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