Worries growing at Phila. area's small banks Most are in decent shape, but the weak economy and interest-rate dynamics are putting a squeeze on profits.

0 Comments | Philadelphia Inquirer, The, May, 2008 | by Harold Brubaker Inquirer Staff Writer

Could Republic First Bancorp Inc.'s $2.8 million quarterly loss be a harbinger of trouble for small banks across Philadelphia? The Philadelphia company was alone among many small, publicly traded local banks reporting earnings so far to post a first-quarter loss. Like many banks, Republic First is battling the consequences of real estate loans that went bad.

Most other small Philadelphia-area banks escaped the first quarter in decent shape, despite the weak economy and interest-rate dynamics that squeezed profits for some. "The quarter came out to be OK. It was definitely a lot better than you would have expected if you had been watching Hillary Clinton and Obama campaigning" in Pennsylvania, said Rick Weiss, who covers banks for Janney Montgomery Scott L.L.C. in Center...