Press Release

Republic First Bancorp, Inc. Reports 80% Increase in Net Income and Deposit Growth of 23%

Company Release - 1/22/2018 4:37 PM ET

PHILADELPHIA, Jan. 22, 2018 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2017.

  Twelve Months Ended
($ in millions, except per share data) 12/31/1712/31/16% Change
     
Assets $ 2,322.3$  1,923.9  21%
Loans     1,162.3    965.0          20%
Deposits     2,063.3    1,677.7  23%
Total Revenue $  90.9$   69.5            31%
Net Income    8.9    4.9   80%
Net Income per Diluted Share $  0.15$   0.12   25%

Vernon W. Hill, II, Chairman of Republic First Bancorp said:

“2017 was another tremendous year for ‘The Power of Red is Back’ growth campaign. Deposits and loans continued to grow at exceptional rates. Our store network expanded to twenty-three convenient locations and we solidified our position as one of the top residential mortgage lenders in our market through the successful integration of the Oak Mortgage team. I am excited over the opportunities we see in 2018 and beyond to build on the success achieved to this point. We are clearly giving customers a reason to Love Their Bank Again.”

Harry D. Madonna, President and Chief Executive Officer of Republic First Bancorp added:

“The momentum of our expansion strategy continues to build as we attract new FANS throughout our footprint. We believe we’ve put ourselves in perfect position to capitalize on opportunities that arise as our competition continues to alienate customers with declining levels of service, higher fees and fewer locations. In addition, the reduction in the corporate tax rate included in Tax Cuts and Jobs Act of 2017 will result in a significant benefit for us in the years to come. We intend on utilizing the savings generated by this Act to invest in our growth and expansion which will result in the creation of new jobs, improvements in technology and the ability to further contribute to the communities which we serve.”

Highlights for the Period Ended December 31, 2017

  • Net income increased by 80% to $8.9 million, or $0.15 per share, for the twelve months ended December 31, 2017 compared to $4.9 million, or $0.12 per share, for the twelve months ended December 31, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy.
     
  • Net Income was $2.7 million, or $0.05 per share, in the fourth quarter of 2017 compared to $2.3 million, or $0.04 per share, in the third quarter of 2017 and $1.5 million, or $0.03 per share, in the fourth quarter of 2016. Earnings in the fourth quarter of 2017 were impacted by two significant and infrequent events, as described below.
     
  • The Company reversed its deferred tax asset valuation allowance during the fourth quarter of 2017 resulting in an increase in net income of $2.9 million, or $0.05 per share, during the period. This entry factors in the impact of the new corporate tax rate under the Tax Cuts and Jobs Act signed into law on December 22, 2017.
     
  • Earnings in the fourth quarter of 2017 were also impacted by a $2.2 million write-down related to the Company’s largest non-performing asset included in OREO. Management’s decision to aggressively pursue a resolution for this asset resulted in the execution of an agreement of sale a required reduction in the carrying value.
     
  • Total deposits increased by $386 million, or 23%, to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016.
     
  • The fastest growing segment of the Company’s deposit base is non-interest bearing demand deposits. These balances grew by 35% to $439 million during 2017.
     
  • New stores opened since the beginning of the “Power of Red is Back” expansion campaign are currently growing deposits at an average rate of $27 million per year. The average deposit growth for all stores over the last twelve months was approximately $20 million per store.
     
  • A new store was recently opened in Fairless Hills, PA launching our expansion into Bucks County. Four new stores have been opened over the last twelve months, increasing the total store count to twenty-three locations. Six additional store openings are planned for 2018.
     
  • Total assets increased by $398 million, or 21%, to $2.3 billion as of December 31, 2017 compared to $1.9 billion as of December 31, 2016.
     
  • Total loans grew $197 million, or 20%, to $1.2 billion as of December 31, 2017 compared to $965 million at December 31, 2016.
     
  • Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.94% as of December 31, 2017 compared to 1.51% as of December 31, 2016.
     
  • The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $378 million in loans during 2017.

  • Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy. More than $51 million in new SBA loans were originated during 2017.
     
  • The Company’s Total Risk-Based Capital ratio was 16.70% and Tier I Leverage Ratio was 10.64% at December 31, 2017.
     
  • Book value per common share increased to $3.97 as of December 31, 2017 compared to $3.79 as of December 31, 2016.

Income Statement

The major components of the income statement are as follows (dollars in thousands, except per share data):

 Three Months Ended Twelve Months Ended
 12/31/1712/31/16%
Change
 12/31/1712/31/16%
Change
        
Total Revenue$  24,421  $  19,363     26% $  90,946  $  69,539    31%
Provision for Loan Losses   400      -     100%    900     1,557     (42%)
Non-interest Expense   21,622     15,970     35%    75,276     56,293    34%
Income (Loss) Before Taxes    (143)     1,447     (110%)    5,986      4,826    24%
Provision (Benefit) for Taxes   (2,881)     (50) n/m     (2,919)     (119)  n/m 
Net Income   2,738      1,497    83%     8,905     4,945    80%
Net Income per Diluted Share$  0.05  $  0.03    67% $  0.15  $  0.12    25%

The Company reported net income of $2.7 million, or $0.05 per diluted share, for the three month period ended December 31, 2017, compared to net income of $1.5 million, or $0.03 per diluted share, for the three month period ended December 31, 2016. Net income for the twelve month period ended December 31, 2017 was $8.9 million, or $0.15 per diluted share, compared to net income of $4.9 million, or $0.12 per diluted share, for the twelve months ended December 31, 2016. Net income in the fourth quarter of 2017 was impacted by two significant and infrequent events described in the following paragraphs.

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law which included a reduction in the corporate tax rate from 35% to 21%. As a result of the change in the tax rate, the value of the Company’s existing deferred tax assets will permanently decrease by $7.7 million. A charge for this impairment was recorded during the fourth quarter. However, the Company has carried a valuation allowance against its deferred tax assets for the last several years. During the fourth quarter, management determined that the valuation allowance was no longer required and recorded an entry to reverse the $10.6 million valuation allowance. The combination of these two entries resulted in the recognition of a net tax benefit and increase in earnings in the amount of $2.9 million during the fourth quarter.

Earnings in the fourth quarter were also impacted by a writedown of $2.2 million against the Company’s largest non-performing asset. Management’s decision to aggressively pursue a resolution for a property held in the other real estate owned portfolio resulted in the execution of an agreement of sale and a required reduction in the carrying value. Closing on the sale is expected to occur during the first quarter of 2018.

Total revenue increased by $5.1 million, or 26%, to $24.4 million for the three month period ended December 31, 2017, compared to $19.4 million for the three month period ended December 31, 2016. This increase is primarily attributable to higher interest income as a result of the strong growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion program.

Non-interest income increased to $5.0 million for the three month period ended December 31, 2017 compared to $4.7 million for the three month period ended December 31, 2016.

Non-interest expenses increased by $5.7 million, or 35%, to $21.6 million during the three month period ended December 31, 2017 compared to $16.0 million during the three months ended December 31, 2016. This increase was primarily driven by the addition of expenses related to the “Power of Red is Back” growth and expansion strategy. Salary and employee benefit costs were higher at the Bank as a result of annual merit increases along with increased staffing levels related to our growth strategy. Three new stores were opened during 2017. The Company now has twenty-three store locations. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses. In addition, the writedown of $2.2 million related to an OREO property described earlier also contributed to the increase in non-interest expenses.

Balance Sheet

The major components of the balance sheet are as follows (dollars in thousands):

 

Description
 

12/31/17
 

12/31/16
%
Change
 

09/30/17
%
Change
      
Total assets$ 2,322,347$ 1,923,931 21%$ 2,141,563 8%
Total loans (net) 1,153,679 955,81721% 1,087,1476%
Total deposits 2,063,295 1,677,67023% 1,885,4059%
Total core deposits 2,043,816 1,677,40322% 1,876,8409%

Total assets increased by $398 million, or 21%, as of December 31, 2017 when compared to December 31, 2016.  Deposits grew by $386 million to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016. Non-interest bearing demand deposit balances increased by 35% during 2017. The number of deposit accounts has also grown by 35% during the past twelve months. The strong growth in assets, loans and deposits has been driven by the addition of new stores and the successful execution of the Company’s aggressive growth strategy referred to as “The Power of Red is Back.”

Core Deposits

Core deposits by type of account are as follows (dollars in thousands):

 

 

Description
 

 

12/31/17
 

 

12/31/16
 

%
Change
 

 

09/30/17
 

%
Change
4th Qtr
2017
Cost of
Funds
       
Demand noninterest-bearing$ 438,500  $ 324,912    35%$ 398,794  10%0.00%
Demand interest-bearing 807,736 605,950 33% 745,878   8%0.48%
Money market and savings 700,321 635,644  10% 619,265 13%0.54%
Certificates of deposit 97,259 110,897  (12%) 112,903 (14%)1.04%
Total core deposits$ 2,043,816 $1,677,403  22%$ 1,876,840    9%0.43%
       

Core deposits increased by 22% to $2.0 billion at December 31, 2017 compared to $1.7 billion at December 31, 2016 as the Company moves forward with its growth strategy to increase the number of stores and expand its banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. On a percentage basis, the Company recognized strongest growth in non-interest bearing demand deposit balances year over year as a result of the successful execution of its strategy.

Lending

Loan balances by type are as follows (dollars in thousands):

 

Description
 

12/31/17
% of
Total
 

12/31/16
% of
Total
 

09/30/17
% of
Total
       
Commercial real estate$ 433,30437%$ 378,51940%$415,532  38%
Construction and land development 104,6179% 61,4535% 93,6578%
Commercial and industrial 173,34315% 174,74420% 163,08515%
Owner occupied real estate 309,83827% 276,98628% 297,88027%
Consumer and other 76,4127% 63,5886% 71,8677%
Residential mortgage 64,7645% 9,6821% 53,3845%
Gross loans$1,162,278100%$964,972100%$1,095,405100%
       

Gross loans increased by $197 million, or 20%, to $1.2 billion at December 31, 2017 compared to $965 million at December 31, 2016 as a result of the steady growth in quality loan demand over the last twelve months and continued success with the relationship banking model. The Company experienced strongest growth in commercial real estate, residential mortgages and the owner occupied categories.

Asset Quality

The Company’s non-performing asset balances and asset quality ratios are highlighted below:

  Three Months Ended
 12/31/1709/30/1712/31/16
    
Non-performing assets / capital and reserves9%10%13%
Non-performing assets / total assets0.94%1.07%1.51%
Quarterly net loan charge-offs / average loans0.02%0.43%0.12%
Allowance for loan losses / gross loans0.74%0.75%0.95%
Allowance for loan losses / non-performing loans58%60%48%

The percentage of non-performing assets to total assets decreased to 0.94% at December 31, 2017, compared to 1.51% at December 31, 2016. One of the Company’s largest non-performing loan relationships has been restructured and returned to performing status during 2017. In addition, the Company’s largest asset held in other real estate owned was written down during the fourth quarter of 2017 as a result of the Company’s decision to aggressively pursue the sale of this asset.  The ratio of non-performing assets to capital and reserves decreased to 9% at December 31, 2017 compared to 13% at December 31, 2016.

Capital

The Company’s capital ratios at December 31, 2017 were as follows:

 Actual
12/31/17
Regulatory Guidelines
“Well Capitalized”
   
Leverage Ratio  10.64%5.00%
Common Equity Ratio  14.75%6.50%
Tier 1 Risk Based Capital  16.13%8.00%
Total Risk Based Capital  16.70%10.00%
Tangible Common Equity   9.56%n/a

Total shareholders’ equity increased to $226 million at December 31, 2017 compared to $215 million at December 31, 2016. Book value per common share increased to $3.97 at December 31, 2017 compared to $3.79 per share at December 31, 2016.  The Company completed a common stock offering in the amount of $100 million during the fourth quarter of 2016.

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its twenty-three store locations in the Greater Philadelphia and Southern New Jersey market place.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with the most convenient hours compared to any bank in its market.  The Bank offers free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint Network. The Bank also offers a wide range of residential mortgage products through its wholly owned subsidiary, Oak Mortgage Company. For more information about Republic Bank, visit www.myrepublicbank.com.

Forward Looking Statements

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. The forward-looking statements contained herein, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.  For example, risks and uncertainties can arise with changes in: general economic conditions, including turmoil in the financial markets and related efforts of government agencies to stabilize the financial system; the adequacy of our allowance for loan losses and our methodology for determining such allowance; adverse changes in our loan portfolio and credit risk-related losses and expenses; concentrations within our loan portfolio, including our exposure to commercial real estate loans, and to our primary service area; changes in interest rates; business conditions in the financial services industry, including competitive pressure among financial services companies, new service and product offerings by competitors, price pressures and similar items; deposit flows; loan demand; the regulatory environment, including evolving banking industry standards, changes in legislation or regulation; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; our securities portfolio and the valuation of our securities; accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements; rapidly changing technology; litigation liabilities, including costs, expenses, settlements and judgments; and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.  You should carefully review the risk factors described in the Form 10-K for the year ended December 31, 2016 and other documents the Company files from time to time with the Securities and Exchange Commission. The words “would be,” “could be,” “should be,” “probability,” “risk,” “target,” “objective,” “may,” “will,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and similar expressions or variations on such 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 U.S. 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, except as may be required by applicable law or regulations.

Source:  Republic First Bancorp, Inc.
    
Contact:  Frank A. Cavallaro, CFO
   (215) 735-4422


        
Republic First Bancorp, Inc.       
Consolidated Balance Sheets       
(Unaudited)         
            
      December 31, September 30, December 31, 
(dollars in thousands, except per share amounts)2017 2017 2016 
            
ASSETS         
 Cash and due from banks $  36,073  $  27,181  $  19,830  
 Interest-bearing deposits and federal funds sold   25,869     71,601     14,724  
  Total cash and cash equivalents    61,942     98,782     34,554  
            
 Securities - Available for sale    464,430     377,757     369,739  
 Securities - Held to maturity    472,213     416,987     432,499  
 Restricted stock     1,918     1,678     1,366  
  Total investment securities    938,561     796,422     803,604  
            
 Loans held for sale     45,700     41,711     28,065  
            
 Loans receivable     1,162,278     1,095,405     964,972  
 Allowance for loan losses    (8,599)    (8,258)    (9,155) 
  Net loans      1,153,679     1,087,147     955,817  
            
 Premises and equipment    74,947     71,715     57,040  
 Other real estate owned     6,966     9,169     10,174  
 Other assets      40,552     36,617     34,677  
            
 Total Assets   $  2,322,347  $  2,141,563  $  1,923,931  
            
            
            
LIABILITIES         
 Non-interest bearing deposits $  438,500  $  398,794  $  324,912  
 Interest bearing deposits     1,624,795     1,486,611     1,352,758  
  Total deposits     2,063,295     1,885,405     1,677,670  
            
 Subordinated debt     21,681     21,663     21,881  
 Other liabilities     10,911     9,293     9,327  
            
 Total Liabilities     2,095,887     1,916,361     1,708,878  
            
SHAREHOLDERS' EQUITY        
 Common stock - $0.01 par value    575     575     573  
 Additional paid-in capital     256,285     255,752     253,570  
 Accumulated deficit     (18,983)    (21,721)    (27,888) 
 Treasury stock at cost     (3,725)    (3,725)    (3,725) 
 Stock held by deferred compensation plan   (183)    (183)    (183) 
 Accumulated other comprehensive loss   (7,509)    (5,496)    (7,294) 
            
 Total Shareholders' Equity    226,460     225,202     215,053  
            
            
 Total Liabilities and Shareholders' Equity$  2,322,347  $  2,141,563  $  1,923,931  
            

 

            
Republic First Bancorp, Inc.           
Consolidated Statements of Operations          
(Unaudited)             
                
      Three Months Ended Twelve Months Ended 
      December 31, September 30, December 31, December 31, December 31, 
(in thousands, except per share amounts)2017 2017 2016 2017 2016 
                
INTEREST INCOME            
 Interest and fees on loans $  13,576  $  12,989 $  10,826  $  50,094  $  41,787  
 Interest and dividends on investment securities   5,568     4,752    3,636     20,178     11,967  
 Interest on other interest earning assets   265     181    174     577     473  
  Total interest income     19,409     17,922    14,636     70,849     54,227  
                
INTEREST EXPENSE            
 Interest on deposits     2,222     1,872    1,650     7,418     5,669  
 Interest on borrowed funds    320     338    296     1,366     1,194  
  Total interest expense    2,542     2,210    1,946     8,784     6,863  
                
 Net interest income     16,867     15,712    12,690     62,065     47,364  
 Provision for loan losses     400   -  -     900     1,557  
                
 Net interest income after provision for loan losses   16,467     15,712    12,690     61,165     45,807  
                
NON-INTEREST INCOME            
 Service fees on deposit accounts    1,084     1,067    748     3,904     2,658  
 Mortgage banking income    2,619     3,159    2,657     11,170     5,062  
 Gain on sale of SBA loans    1,063     831    769     3,378     4,981  
 Gain (loss) on sale of investment securities   (85)  -  -     (146)    656  
 Other non-interest income    331     721    553     1,791     1,955  
  Total non-interest income    5,012     5,778    4,727     20,097     15,312  
                
NON-INTEREST EXPENSE            
 Salaries and employee benefits    10,159     9,829    8,268     37,959     28,602  
 Occupancy and equipment    2,947     3,064    2,424     11,774     9,627  
 Legal and professional fees    953     610    560     2,877     2,039  
 Foreclosed real estate     2,388     746    572     4,092     2,182  
 Regulatory assessments and related fees   359     355    402     1,367     1,413  
 Other operating expenses    4,816     4,561    3,744     17,207     12,430  
  Total non-interest expense    21,622     19,165    15,970     75,276     56,293  
                
Income (loss) before benefit for income taxes   (143)    2,325    1,447     5,986     4,826  
                
Provision (benefit) for income taxes    (2,881)    4    (50)    (2,919)    (119) 
                
Net income   $  2,738  $  2,321 $  1,497  $  8,905  $  4,945  
                
                
Net Income per Common Share           
 Basic   $  0.05  $  0.04 $  0.03  $  0.16  $  0.13  
 Diluted   $  0.05  $  0.04 $  0.03  $  0.15  $  0.12  
                
Average Common Shares Outstanding           
 Basic      56,988     56,974    43,456     56,933     39,281  
 Diluted      58,360     58,314    44,317     58,250     39,865  
                

 

                   
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
(dollars in thousands) December 31, 2017 September 30, 2017 December 31, 2016
                   
    Interest     Interest     Interest  
  Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
  Balance Expense Rate Balance Expense Rate Balance Expense Rate
Interest-earning assets:                  
                   
Federal funds sold and other                  
  interest-earning assets $  82,918 $  265 1.27% $  56,316 $  181 1.28% $  135,214 $  174 0.51%
Securities    888,862    5,616 2.53%    765,678    4,805 2.51%    649,649    3,731 2.30%
Loans receivable    1,171,771    13,743 4.65%    1,115,920    13,136 4.67%    970,391    10,965 4.50%
Total interest-earning assets    2,143,551    19,624 3.63%    1,937,914    18,122 3.71%    1,755,254    14,870 3.37%
                   
Other assets    126,904        122,513        104,225    
                   
Total assets $ 2,270,455     $ 2,060,427     $ 1,859,479    
                   
Interest-bearing liabilities:                  
                   
Demand non interest-bearing $  421,841     $  381,380     $  325,495    
Demand interest-bearing    776,203    945 0.48%    692,423    772 0.44%    613,828    617 0.40%
Money market & savings    693,684    942 0.54%    613,506    788 0.51%    629,646    716 0.45%
Time deposits    120,067    335 1.11%    109,878    312 1.13%    110,488    317 1.14%
Total deposits    2,011,795    2,222 0.44%    1,797,187    1,872 0.41%    1,679,457    1,650 0.39%
                   
Total interest-bearing deposits    1,589,954    2,222 0.55%    1,415,807    1,872 0.52%    1,353,962    1,650 0.48%
                   
Other borrowings    23,621    320 5.37%    30,220    338 4.44%    21,913    296 5.37%
                   
                   
Total interest-bearing liabilities    1,613,575    2,542 0.63%    1,446,027    2,210 0.61%    1,375,875    1,946 0.56%
Total deposits and                   
  other borrowings    2,035,416    2,542 0.50%    1,827,407    2,210 0.48%    1,701,370    1,946 0.46%
                   
                   
Non interest-bearing liabilities    9,560        9,179        10,965    
Shareholders' equity    225,479        223,841        147,144    
Total liabilities and                  
shareholders' equity $ 2,270,455     $ 2,060,427     $ 1,859,479    
                   
Net interest income   $ 17,082     $ 15,912     $ 12,924  
Net interest spread     3.00%     3.10%     2.81%
                   
Net interest margin     3.16%     3.26%     2.93%
                   
                   
                   
Note: The above tables are presented on a tax equivalent basis.             

 

              
Republic First Bancorp, Inc.             
Average Balances and Net Interest Income           
(unaudited)             
              
              
              
  For the twelve months ended For the twelve months ended 
(dollars in thousands) December 31, 2017 December 31, 2016 
              
    Interest     Interest   
  Average Income/ Yield/ Average Income/ Yield/ 
  Balance Expense Rate Balance Expense Rate 
Interest-earning assets:             
              
Federal funds sold and other             
  interest-earning assets $  48,148 $  577 1.20% $  92,452 $  473 0.51% 
Securities    811,269    20,466 2.52%    506,545    12,346 2.44% 
Loans receivable    1,090,851    50,687 4.65%    936,492    42,304 4.52% 
Total interest-earning assets    1,950,268    71,730 3.68%    1,535,489    55,123 3.59% 
              
Other assets    115,770        96,902     
              
Total assets $ 2,066,038     $ 1,632,391     
              
Interest-bearing liabilities:             
              
Demand non interest-bearing $  372,171     $  284,326     
Demand interest-bearing    687,586    3,020 0.44%    510,745    2,088 0.41% 
Money market & savings    629,464    3,160 0.50%    586,750    2,639 0.45% 
Time deposits    110,952    1,238 1.12%    89,713    942 1.05% 
Total deposits    1,800,173    7,418 0.41%    1,471,534    5,669 0.39% 
              
Total interest-bearing deposits    1,428,002    7,418 0.52%    1,187,208    5,669 0.48% 
              
Other borrowings    35,429    1,366 3.86%    27,471    1,194 4.35% 
              
              
Total interest-bearing liabilities    1,463,431    8,784 0.60%    1,214,679    6,863 0.57% 
Total deposits and              
  other borrowings    1,835,602    8,784 0.48%    1,499,005    6,863 0.46% 
              
              
Non interest-bearing liabilities    8,942        8,867     
Shareholders' equity    221,494        124,519     
Total liabilities and             
shareholders' equity $ 2,066,038     $ 1,632,391     
              
Net interest income   $ 62,946     $ 48,260   
Net interest spread     3.08%     3.02% 
              
Net interest margin     3.23%     3.14% 
              
              
              
Note: The above tables are presented on a tax equivalent basis.         

 

          
Republic First Bancorp, Inc.         
Summary of Allowance for Loan Losses and Other Related Data      
(unaudited)         
          
          
   Three months ended   Twelve months ended
 December 31, September 30, December 31, December 31, December 31,
(dollars in thousands)2017 2017 2016 2017 2016
          
          
Balance at beginning of period$  8,258  $  9,454  $  9,453  $  9,155  $  8,703 
          
Provision charged to operating expense   400   -   -     900     1,557 
    8,658     9,454     9,453     10,055     10,260 
          
Recoveries on loans charged-off:         
  Commercial   1     52     1     119     169 
  Consumer -   -     2     1     2 
Total recoveries   1     52     3     120     171 
          
Loans charged-off:         
  Commercial   (19)    (1,243)    (290)    (1,523)    (1,265)
  Consumer   (41)    (5)    (11)    (53)    (11)
          
Total charged-off   (60)    (1,248)    (301)    (1,576)    (1,276)
          
Net charge-offs   (59)    (1,196)    (298)    (1,456)    (1,105)
          
Balance at end of period$  8,599  $  8,258  $  9,155  $  8,599  $  9,155 
          
          
Net charge-offs as a percentage of         
  average loans outstanding 0.02%  0.43%  0.12%  0.13%  0.12%
          
Allowance for loan losses as a percentage         
  of period-end loans 0.74%  0.75%  0.95%  0.74%  0.95%

 

          
Republic First Bancorp, Inc.          
Summary of Non-Performing Loans and Assets        
(unaudited)         
          
 December 31, September 30, June 30, March 31, December 31,
(dollars in thousands)2017 2017 2017 2017 2016
          
Non-accrual loans:         
  Commercial real estate$  13,973  $  10,140  $  17,703  $  17,695  $  17,758 
  Consumer and other   872     880     817     834     836 
Total non-accrual loans   14,845     11,020     18,520     18,529     18,594 
          
Loans past due 90 days or more         
  and still accruing -     2,730     293   -     302 
          
Total non-performing loans   14,845     13,750     18,813     18,529     18,896 
          
Other real estate owned   6,966     9,169     9,909     9,944     10,174 
          
Total non-performing assets$  21,811  $  22,919  $  28,722  $  28,473  $  29,070 
          
          
Non-performing loans to total loans 1.28%  1.26%  1.76%  1.81%  1.96%
          
Non-performing assets to total assets 0.94%  1.07%  1.41%  1.45%  1.51%
          
Non-performing loan coverage 57.93%  60.06%  50.25%  49.55%  48.45%
          
Allowance for loan losses as a percentage         
  of total period-end loans 0.74%  0.75%  0.89%  0.89%  0.95%
          
Non-performing assets / capital plus         
  allowance for loan losses 9.28%  9.82%  12.39%  12.52%  12.97%

 

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Source: Republic First Bancorp, Inc.