First Republic Bank Opens New Leasing Division for Business Equipment Financing

Business Wire, Sept 19, 2000

Business Editors/Banking Writers

PHILADELPHIA--(BUSINESS WIRE)--Sept. 19, 2000

Commercial customers of First Republic Bank (NASDAQ:FRBK) can now finance up to $1 million in equipment through the bank's new leasing arm, First Republic Leasing.

Republic First Bancorp, Inc. today announced that its wholly-owned subsidiary, First Republic Bank, has established First Republic Leasing as a unit within the bank to deliver leasing products for business equipment financing from $5,000 to $1 million.

The small-ticket lease product broadens the scope of financial services offered to the bank's commercial and municipal customers, while providing additional growth and income to First Republic Bank. Equipment leasing becomes the bank's fourth new commercial lending product this year, joining construction financing, small business administration financing and asset-based lending.

"We constantly seek opportunities to provide our commercial customers with a full product array," said First Republic CEO Bob Davis. "Recognizing that more and more businesses today lease their essential business equipment, we felt our clients should have access to these leasing services."

Leasing offers a financing alternative that often keeps debt lines free for emergency cash flow and investment needs. Leasing may also present off-balance-sheet financing with tax advantages. Today, eight out of 10 U.S. companies lease some or all of their equipment. In 1999, it is estimated that leasing accounted for 30 percent of all business investment, or $226 billion.

First Republic Bank, Philadelphia and Republic First Bank of Delaware are full-service, state-chartered commercial banks and members of the Federal Reserve System, with deposits insured by the Federal Deposit Insurance Corporation (FDIC).

The banks provide diversified financial products through their eight offices located in Abington, Ardmore, Bala Cynwyd, East Norriton, Philadelphia and a sister bank, Republic First Bank of Delaware, in Wilmington.