Press Release

Republic First Bancorp, Inc. Reports Second Quarter Financial Results; Announces New York City Expansion Plan

Company Release - 7/26/2018 8:14 AM ET

PHILADELPHIA, July 26, 2018 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2018.

Q2 Highlights

  • Total deposits increased by $402 million, or 23%, to $2.1 billion as of June 30, 2018 compared to $1.7 billion as of June 30, 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 $29 million per year, while the average deposit growth for all stores over the last twelve months was approximately $18 million per store.
     
  • Total loans grew $251 million, or 24%, to $1.3 billion as of June 30, 2018 compared to $1.1 billion at June 30, 2017.
     
  • Income before tax increased by 41% to $2.9 million for the three months ended June 30, 2018 compared to $2.1 million for the three months ended June 30, 2017.

“The Power of Red is Back” expansion strategy continues to deliver exceptional results. Assets, loans and deposits are growing more than 20% year over year and profitability continues to improve despite the significant investments being made to execute the growth plan. The momentum can be felt across the Bank’s entire footprint.

The success achieved with “The Power of Red is Back” growth campaign in the Metro Philadelphia Market is moving to New York. Republic Bank is planning to expand into New York City beginning in 2019. Sites for several new stores have been identified in Manhattan with four stores expected to open next year.

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

“The Power of Red is Back growth campaign is coming to New York City.  I am excited to announce our intention to bring Republic Bank’s unmatched commitment to extraordinary customer service and convenience to Manhattan. Our goal is to turn Customers into FANS. We achieve this goal not only through our unique store locations, but we combine that experience with our relentless pursuit of customer satisfaction through all delivery channels including mobile and internet options. We look forward to the opportunity to bring our exceptional model to the people of New York City.”

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

“Our second quarter results continue to demonstrate the success our growth strategy is capable of producing. We are excited for the highly anticipated opening of our next store in Gloucester Township, NJ and we’ve recently broken ground on four new sites in the Metro Philadelphia market which we hope to have complete before year end. This activity combined with the planned expansion into New York City beginning in 2019 sets us up for an incredibly bright future.”

A summary of the financial results for the period ended June 30, 2018 can be found in the following table:

  Three Months Ended
($ in millions, except per share data) 06/30/1806/30/17% Change
     
Assets $2,552.9$2,043.525%
Loans  1,317.6 1,066.524%
Deposits  2,134.1 1,732.423%
Total Revenue $28.1$22.326%
Income Before Tax  2.9 2.141%
Net Income *  2.4 2.115%
Net Income per Share $0.04$0.04-%
 

* Note:  Net income for the period ended 6/30/18 reflects a provision for federal and state income taxes which did not impact 2017 results due to an adjustment to the DTA valuation allowance recorded by the Company.

Additional Highlights for the Period Ended June 30, 2018

  • Total assets increased by $509 million, or 25%, to $2.6 billion as of June 30, 2018 compared to $2.0 billion as of June 30, 2017.
     
  • Non-interest bearing demand deposits represent the fastest growing segment of the Company’s deposit base. These deposits grew by $156 million, or 42%, to $527 million over the last 12 months.
     
  • Net income after tax was $2.4 million, or $0.04 per share, for the three months ended June 30, 2018 compared to $2.1 million for the three months ended June 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during the first quarter of 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017. The prior year income tax provision was largely offset by an adjustment to the valuation allowance.
     
  • Total revenue grew by 26% during the quarter ended June 30, 2018 while non-interest expense increased by 17% when compared to the second quarter of 2017. The Company continues to open new stores and increase profitability despite the additional costs associated with the expansion strategy.
     
  • There are twenty-three convenient store locations open today. The next store opening is scheduled for July 28, 2018 in Gloucester Township, NJ. Ground has been broken on sites in Evesboro, Lumberton, and Somers Point, NJ and Feasterville, PA. These stores are expected to be completed by year end.
     
  • Expansion into New York City is expected to begin during 2019. The Company is planning to open four new stores in Manhattan in the coming year.
     
  • Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.81% as of June 30, 2018 compared to 1.41% as of June 30, 2017.
     
  • The Company converted $10.6 million of outstanding trust preferred securities to 1.6 million shares of common stock during the first quarter of 2018. This conversion will result in a reduction of interest expense of approximately $0.9 million on an annual basis going forward.
     
  • The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $100 million in loans during the three month period ended June 30, 2018.
     
  • Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy.  More than $8 million in new SBA loans were originated during the three month period ended June 30, 2018. Republic Bank is currently ranked as the #2 SBA lender in New Jersey based on the dollar volume of loan originations.
     
  • The Company’s Total Risk-Based Capital ratio was 15.62% and Tier I Leverage Ratio was 9.88% at June 30, 2018.
     
  • Book value per common share increased to $4.01 as of June 30, 2018 compared to $3.90 as of June 30, 2017.

Income Statement

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

 Three Months Ended Six Months Ended
 06/30/1806/30/17% Change 06/30/1806/30/17% Change
Total Revenue$28,092$22,300 26% $53,526$42,825 25%
Provision for Loan Losses 800 500 60%  1,200 500 140%
Non-interest Expense 20,729 17,685 17%  40,831 34,489 18%
Income Before Taxes 2,901 2,051 41%  5,050 3,804 33%
Provision (Benefit) for Taxes 530 (8)n/m   902 (42)n/m 
Net Income 2,371 2,059 15%  4,148 3,846 8%
Net Income per Share$0.04$0.04 -% $0.07$0.07 -%
 

The Company reported net income of $2.4 million, or $0.04 per share, for the three month period ended June 30, 2018 compared to $2.1 million for the three month period ended June 30, 2017.  Net income for the six month period ended June 30, 2018 was $4.1 million, or $0.07 per share, compared to net income of $3.8 million, or $0.07 per share, for the six months ended June 30, 2017.

During 2017, the Company recorded a minimal provision for federal and state income taxes due to the deferred tax asset valuation allowance recorded on the balance sheet. Income Before Taxes grew 41% to $2.9 million during the second quarter of 2018 and grew 33% to $5.1 million on a year to date basis in 2018. The significant improvement in pre-tax profitability has been achieved despite the ongoing investments and expenditures required for the growth and expansion strategy.

Total revenue increased by $5.8 million, or 26%, to $28.1 million for the three month period ended June 30, 2018, compared to $22.3 million for the three month period ended June 30, 2017.  Total revenue for the six month period ended June 30, 2018 increased by $10.7 million, or 25%, to $53.5 million. The increase in revenue 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.

The increase in total revenue for both the three month period (26%) and six month period (25%) ended June 30, 2018 exceeded the growth in non-interest expense for the three month period (17%) and the six month period (18%) ended June 30, 2018 which demonstrates the effect that our growth strategy will have on the profitability of the Bank.

Non-interest income increased to $5.8 million for the three month period ended June 30, 2018 compared to $5.0 million for the three month period ended June 30, 2017 driven by growth in service fees on deposit accounts and residential mortgage banking income. 

Non-interest expenses increased by $3.0 million, or 17%, to $20.7 million during the three month period ended June 30, 2018 compared to $17.7 million during the three months ended June 30, 2017. This increase was mainly caused by the increase in salaries and employee benefits as a result of annual merit increases along with increased staffing levels related to our growth strategy of adding and relocating stores. Occupancy and equipment expenses associated with the growth and relocation strategy also contributed to the increase in non-interest expenses.

The provision for income taxes was $530 thousand for the three month period ended June 30, 2018 compared to a benefit for income taxes in the amount of $8 thousand for the three month period ended June 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during the first quarter of 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017.

Balance Sheet

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

Description06/30/1806/30/17% Change03/31/18% Change
      
Total assets$2,552,920$2,043,48725%$2,471,4643%
Total loans (net) 1,310,012 1,057,05624% 1,244,2625%
Total deposits 2,134,141 1,732,43123% 2,123,4511%
 

Total assets increased by $509.4 million, or 25%, as of June 30, 2018 when compared to June 30, 2017.  Deposits grew by $401.7 million to $2.1 billion as of June 30, 2018 compared to $1.7 billion as of June 30, 2017. The number of deposit accounts has 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.”

Deposits

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

Description06/30/1806/30/17% Change 
03/31/18

Change
2nd Qtr 2018
Cost of Funds
       
Demand noninterest-bearing$526,650$370,27042%$464,38313%0.00%
Demand interest-bearing 785,513 647,50121% 826,726(5%)0.74%
Money market and savings 698,182 607,85915% 703,263(1%)0.67%
Certificates of deposit 123,796 106,80116% 129,079(4%)1.17%
Total deposits$2,134,141$1,732,43123%$2,123,4511%0.58%
 
 

Deposits increased to $2.1 billion at June 30, 2018 compared to $1.7 billion at June 30, 2017 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. The Company recognized strongest growth in demand deposit balances, led by growth in non-interest bearing demand deposits of 42%, on a year to year basis as a result of the successful execution of its strategy.

Lending

Loans by type are as follows (dollars in thousands):

Description 06/30/18% of Total06/30/17% of Total03/31/18% of Total
       
Commercial real estate$489,57437%$412,69539%$467,58537%
Construction and land development 120,1659% 83,5718% 118,60710%
Commercial and industrial 188,25414% 176,94916% 189,42015%
Owner occupied real estate 335,87126% 285,47927% 315,41825%
Consumer and other 83,6066% 68,5306% 78,8346%
Residential mortgage 100,1088% 39,2864% 81,0487%
Gross loans$1,317,578100%$1,066,510100%$1,250,912100%
       
 

Gross loans increased by $251 million, or 24%, to $1.3 billion at June 30, 2018 compared to $1.1 billion at June 30, 2017 as a result of the steady flow in quality loan demand over the last twelve months and continued success with the relationship banking model. The Company experienced strong growth across all loan categories.

Asset Quality

The Company’s asset quality ratios are highlighted below:

  Three Months Ended
 06/30/1803/31/1806/30/17
    
Non-performing assets / capital and reserves9%9%12%
Non-performing assets / total assets0.81%0.85%1.41%
Quarterly net loan charge-offs / average loans(0.04%)0.77%0.09%
Allowance for loan losses / gross loans0.57%0.53%0.89%
Allowance for loan losses / non-performing loans54%47%50%
 

The percentage of non-performing assets to total assets decreased to 0.81% at June 30, 2018, compared to 1.41% at June 30, 2017.  The ratio of non-performing assets to capital and reserves decreased to 9% at June 30, 2018 compared to 12% at June 30, 2017 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at June 30, 2018 were as follows:

 Actual
06/30/18
Regulatory Guidelines
“Well Capitalized”
   
Leverage Ratio9.88%5.00%
Common Equity Ratio14.48%6.50%
Tier 1 Risk Based Capital15.16%8.00%
Total Risk Based Capital15.62%10.00%
Tangible Common Equity9.04%n/a 
 

Total shareholders’ equity increased to $235 million at June 30, 2018 compared to $222 million at June 30, 2017. Book value per common share increased to $4.01 at June 30, 2018 compared to $3.90 per share at June 30, 2017.

Analyst and Investor Call

An analyst and investor call will be held on the following date and time:

 
 Date:July 26, 2018
 Time:10:00am (EDT)
 From the U.S. dial:(888) 424-8151
 Participant Pin:6954598
   
 An operator will assist you in joining the call.
 
 

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 stores located 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 mortgage division which does business under the name of 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, 2017 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)       
          
    June 30, March 31, June 30, 
(dollars in thousands, except per share amounts) 2018   2018   2017  
          
ASSETS       
 Cash and due from banks $  29,363  $  21,927  $  28,247  
 Interest-bearing deposits and federal funds sold   29,991     9,142     59,750  
  Total cash and cash equivalents    59,354     31,069     87,997  
          
 Securities - Available for sale    502,021     519,692     345,182  
 Securities - Held to maturity    503,742     519,295     409,373  
 Restricted stock    8,379     5,435     3,878  
  Total investment securities    1,014,142     1,044,422     758,433  
          
 Loans held for sale    39,301     25,653     29,547  
          
 Loans receivable    1,317,578     1,250,912     1,066,510  
 Allowance for loan losses    (7,566)    (6,650)    (9,454) 
  Net loans    1,310,012     1,244,262     1,057,056  
          
 Premises and equipment    80,069     77,153     65,471  
 Other real estate owned    6,559     6,966     9,909  
 Other assets    43,483     41,939     35,074  
          
 Total Assets $  2,552,920  $  2,471,464  $  2,043,487  
          
          
LIABILITIES       
 Non-interest bearing deposits $  526,650  $  464,383  $  370,270  
 Interest bearing deposits    1,607,491     1,659,068     1,362,161  
  Total deposits    2,134,141     2,123,451     1,732,431  
          
 Short-term borrowings    161,669     93,915     55,000  
 Subordinated debt    11,256     11,254     21,656  
 Other liabilities    10,520     8,770     12,079  
          
 Total Liabilities    2,317,586     2,237,390     1,821,166  
          
SHAREHOLDERS' EQUITY       
 Common stock - $0.01 par value    593     592     575  
 Additional paid-in capital    267,974     267,313     255,215  
 Accumulated deficit    (13,195)    (15,566)    (24,042) 
 Treasury stock at cost    (3,725)    (3,725)    (3,725) 
 Stock held by deferred compensation plan   (183)    (183)    (183) 
 Accumulated other comprehensive loss   (16,130)    (14,357)    (5,519) 
          
 Total Shareholders' Equity    235,334     234,074     222,321  
          
          
 Total Liabilities and Shareholders' Equity$  2,552,920  $  2,471,464  $  2,043,487  
          

 

Republic First Bancorp, Inc.          
Consolidated Statements of Operations          
(Unaudited)          
             
   Three Months Ended Six Months Ended 
   June 30, March 31, June 30, June 30, June 30, 
(in thousands, except per share amounts) 2018   2018  2017   2018   2017  
             
INTEREST INCOME          
 Interest and fees on loans$  15,457  $  14,269 $  12,330  $  29,726  $  23,529  
 Interest and dividends on investment securities   6,804     6,458    4,931     13,262     9,858  
 Interest on other interest earning assets   63     172    70     235     131  
  Total interest income   22,324     20,899    17,331     43,223     33,518  
             
INTEREST EXPENSE          
 Interest on deposits   3,089     2,598    1,722     5,687     3,324  
 Interest on borrowed funds   573     185    342     758     708  
  Total interest expense   3,662     2,783    2,064     6,445     4,032  
             
 Net interest income   18,662     18,116    15,267     36,778     29,486  
 Provision for loan losses   800     400    500     1,200     500  
             
 Net interest income after provision for loan losses   17,862     17,716    14,767     35,578     28,986  
             
NON-INTEREST INCOME          
 Service fees on deposit accounts   1,326     1,175    907     2,501     1,753  
 Mortgage banking income   3,182     2,186    2,971     5,368     5,392  
 Gain on sale of SBA loans   846     992    796     1,838     1,484  
 Gain (loss) on sale of investment securities   (1)    -     (61)    (1)    (61) 
 Other non-interest income   415     182    356     597     739  
  Total non-interest income   5,768     4,535    4,969     10,303     9,307  
             
NON-INTEREST EXPENSE          
 Salaries and employee benefits   10,883     10,645    9,389     21,528     17,971  
 Occupancy and equipment   3,353     3,470    2,873     6,823     5,763  
 Legal and professional fees   859     759    633     1,618     1,314  
 Foreclosed real estate   192     311    612     503     958  
 Regulatory assessments and related fees   395     467    324     862     653  
 Other operating expenses   5,047     4,450    3,854     9,497     7,830  
  Total non-interest expense   20,729     20,102    17,685     40,831     34,489  
             
Income before provision (benefit) for income taxes   2,901     2,149    2,051     5,050     3,804  
             
Provision (benefit) for income taxes   530     372    (8)    902     (42) 
             
Net income$  2,371  $  1,777 $  2,059  $  4,148  $  3,846  
             
             
Net Income per Common Share          
 Basic$  0.04  $  0.03 $  0.04  $  0.07  $  0.07  
 Diluted$  0.04  $  0.03 $  0.04  $  0.07  $  0.07  
             
Average Common Shares Outstanding          
 Basic   58,746     57,100    56,945     57,927     56,885  
 Diluted   59,911     58,370    58,301     59,147     58,165  
             

 

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) June 30, 2018 March 31, 2018 June 30, 2017
                   
    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 $  13,412 $  63 1.88% $  40,425 $  172 1.73% $  28,691 $  70 0.98%
Securities    1,048,291    6,838 2.61%    1,015,605    6,487 2.55%    782,121    5,013 2.56%
Loans receivable    1,304,244    15,557 4.78%    1,235,124    14,365 4.72%    1,065,313    12,470 4.70%
Total interest-earning assets    2,365,947    22,458 3.81%    2,291,154    21,024 3.72%    1,876,125    17,553 3.75%
                   
Other assets    129,077        127,001        111,493    
                   
Total assets $ 2,495,024     $ 2,418,155     $ 1,987,618    
                   
Interest-bearing liabilities:                  
                   
Demand non interest-bearing $  481,548     $  431,234     $  355,325    
Demand interest-bearing    844,405    1,549 0.74%    893,530    1,257 0.57%    659,859    695 0.42%
Money market & savings    699,136    1,174 0.67%    687,818    972 0.57%    602,710    732 0.49%
Time deposits    125,607    366 1.17%    129,897    369 1.15%    105,820    295 1.12%
Total deposits    2,150,696    3,089 0.58%    2,142,479    2,598 0.49%    1,723,714    1,722 0.40%
                   
Total interest-bearing deposits    1,669,148    3,089 0.74%    1,711,245    2,598 0.62%    1,368,389    1,722 0.50%
                   
Other borrowings    101,829    573 2.26%    40,552    185 1.85%    35,119    342 3.91%
                   
                   
Total interest-bearing liabilities    1,770,977    3,662 0.83%    1,751,797    2,783 0.64%    1,403,508    2,064 0.59%
Total deposits and                   
other borrowings    2,252,525    3,662 0.65%    2,183,031    2,783 0.52%    1,758,833    2,064 0.47%
                   
                   
Non interest-bearing liabilities    8,952        9,540        8,345    
Shareholders' equity    233,547        225,584        220,440    
Total liabilities and                  
shareholders' equity $ 2,495,024     $ 2,418,155     $ 1,987,618    
                   
Net interest income   $ 18,796     $ 18,241     $ 15,489  
Net interest spread     2.98%     3.08%     3.16%
                   
Net interest margin     3.19%     3.23%     3.31%
                   
                   
Note: The above tables are presented on a tax equivalent basis.
 

 

Republic First Bancorp, Inc.             
Average Balances and Net Interest Income           
(unaudited)             
              
  For the six months ended For the six months ended 
(dollars in thousands) June 30, 2018 June 30, 2017 
              
    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 $  26,844 $  235 1.77% $  26,323 $  131 1.00% 
Securities    1,032,038    13,325 2.58%    795,003    10,045 2.53% 
Loans receivable    1,269,875    29,922 4.75%    1,036,979    23,808 4.63% 
Total interest-earning assets    2,328,757    43,482 3.77%    1,858,305    33,984 3.69% 
              
Other assets    128,045        106,683     
              
Total assets $ 2,456,802     $ 1,964,988     
              
Interest-bearing liabilities:             
              
Demand non interest-bearing $  456,530     $  342,243     
Demand interest-bearing    868,832    2,806 0.65%    640,084    1,303 0.41% 
Money market & savings    693,508    2,146 0.62%    604,933    1,430 0.48% 
Time deposits    127,740    735 1.16%    106,866    591 1.12% 
Total deposits    2,146,610    5,687 0.53%    1,694,126    3,324 0.40% 
              
Total interest-bearing deposits    1,690,080    5,687 0.68%    1,351,883    3,324 0.50% 
              
Other borrowings    71,360    758 2.14%    44,078    708 3.24% 
              
              
Total interest-bearing liabilities    1,761,440    6,445 0.74%    1,395,961    4,032 0.58% 
Total deposits and              
other borrowings    2,217,970    6,445 0.59%    1,738,204    4,032 0.47% 
              
              
Non interest-bearing liabilities    9,171        8,307     
Shareholders' equity    229,661        218,477     
Total liabilities and             
shareholders' equity $ 2,456,802     $ 1,964,988     
              
Net interest income   $ 37,037     $ 29,952   
Net interest spread     3.03%     3.11% 
              
Net interest margin     3.21%     3.25% 
              
              
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)           
       Year    
  Three months ended  ended  Six months ended 
 June 30, March 31, June 30, Dec 31 June 30, June 30,
(dollars in thousands) 2018   2018   2017  2017  2018   2017 
            
            
Balance at beginning of period$  6,650  $  8,599  $  9,181  $  9,155  $  8,599  $  9,155 
            
Provision charged to operating expense   800     400     500     900     1,200     500 
    7,450     8,999     9,681     10,055     9,799     9,655 
            
Recoveries on loans charged-off:           
Commercial   129     -      30     119     129     66 
Consumer   1     -      1     1     1     1 
Total recoveries   130     -      31     120     130     67 
            
Loans charged-off:           
Commercial   -      (2,151)    (253)    (1,523)    (2,151)    (261)
Consumer   (14)    (198)    (5)    (53)    (212)    (7)
            
Total charged-off   (14)    (2,349)    (258)    (1,576)    (2,363)    (268)
            
Net charge-offs   116     (2,349)    (227)    (1,456)    (2,233)    (201)
            
Balance at end of period$  7,566  $  6,650  $  9,454  $  8,599  $  7,566  $  9,454 
            
            
Net charge-offs as a percentage of           
average loans outstanding (0.04%)  0.77%  0.09%  0.13%  0.35%  0.04%
            
Allowance for loan losses as a percentage           
of period-end loans 0.57%  0.53%  0.89%  0.74%  0.57%  0.89%
 

 

Republic First Bancorp, Inc.          
Summary of Non-Performing Loans and Assets        
(unaudited)         
          
 June 30, March 31, December 31, September 30, June 30,
(dollars in thousands) 2018   2018   2017   2017   2017 
          
Non-accrual loans:         
Commercial real estate$  13,297  $  13,322  $  13,973  $  10,140  $  17,703 
Consumer and other   809     810     872     880     817 
Total non-accrual loans   14,106     14,132     14,845     11,020     18,520 
          
Loans past due 90 days or more         
and still accruing   -      -      -      2,730     293 
          
Total non-performing loans   14,106     14,132     14,845     13,750     18,813 
          
Other real estate owned   6,559     6,966     6,966     9,169     9,909 
          
Total non-performing assets$  20,665  $  21,098  $  21,811  $  22,919  $  28,722 
          
          
Non-performing loans to total loans 1.07%  1.13%  1.28%  1.26%  1.76%
          
Non-performing assets to total assets 0.81%  0.85%  0.94%  1.07%  1.41%
          
Non-performing loan coverage 53.64%  47.06%  57.93%  60.06%  50.25%
          
Allowance for loan losses as a percentage         
of total period-end loans 0.57%  0.53%  0.74%  0.75%  0.89%
          
Non-performing assets / capital plus         
allowance for loan losses 8.51%  8.76%  9.28%  9.82%  12.39%
 


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Source: Republic First Bancorp, Inc.