Press Release

Republic First Bancorp, Inc. Reports Second Quarter Financial Results

Deposits Increase by 18% and Loans Grow 15% with New York Expansion Officially Underway

Company Release - 7/29/2019 8:00 AM ET

PHILADELPHIA, July 29, 2019 (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, 2019.

Q2-2019 Highlights

  • Total deposits increased by $394 million, or 18%, to $2.5 billion as of June 30, 2019 compared to $2.1 billion as of June 30, 2018.
     
  • New stores opened since the beginning of the “Power of Red is Back” expansion campaign are currently growing deposits at an average rate of $25 million per year, while the average deposit growth for all stores over the last twelve months was approximately $14 million per store.
     
  • Expansion into New York City began with the opening of our first store located on the corner of 14th Street and 5th Avenue.
     
  • Total loans grew $191 million, or 15%, to $1.5 billion as of June 30, 2019 compared to $1.3 billion at June 30, 2018.
     
  • Net income declined to $0.8 million, or $0.01 per share, for the six month period ended June 30, 2019 compared to $4.1 million, or $0.07 per share for the six month period ended June 30, 2018.

“The Power of Red is Back” expansion strategy launched in New York City with the opening of our newest store on the corner of 14th Street and 5th Avenue. On July 12th we celebrated the grand opening of our first store in New York by welcoming Customers – and their pets – with a fun-filled day that included live entertainment, music and gifts. We also continued our expansion in Bucks County with the opening of our store in Feasterville, PA during the second quarter.

Profitability in 2019 continues to be hampered by a number of factors. Similar to the first quarter, net income in the second quarter was impacted by the costs necessary to initiate our expansion into New York City which includes the hiring of a management and lending team for this new market, along with the training and development costs for the new store openings. We also continue to feel the effect of a flat or inverted yield curve which has resulted in compression of the net interest margin.

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

“The Power of Red is Back in New York City. The recent opening of our first store at 14th & 5th was a tremendous success. We are thrilled to bring back the legendary banking experience that our FANS in New York have been missing for the last several years. At a time when most banks are shuttering branches and retreating from the communities they serve, Republic Bank continues in its relentless pursuit to deliver an unmatched banking experience across every delivery channel. This not only includes the in-store experience, but online and mobile options as well.”

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

“Our strong growth since the inception of our expansion campaign demonstrates the success of the Republic model. Assets, loans and deposits have consistently grown at levels significantly above industry standards. We see significant opportunities to expand our footprint and create new FANS as our competitors continue to alienate customers with declining levels of service and fewer branch locations.”

A summary of the financial results for the period ended June 30, 2019 can be found in the following table:

 Six Months Ended
($ in millions, except per share data)06/30/19 06/30/18 % Change 
       
Assets$2,941.0 $2,552.9   15%
Loans   1,508.7    1,317.6   15%
Deposits 2,528.0    2,134.1   18%
Total Revenue$50.5 $47.1    7%
Income Before Tax   1.0   5.1   (80%)
Net Income   0.8    4.1    (81%)
Net Income per Share$0.01 $0.07    (86%)

Financial Highlights for the Period Ended June 30, 2019

  • Total assets increased by $388 million, or 15%, to $2.9 billion as of June 30, 2019 compared to $2.6 billion as of June 30, 2018.
     
  • We have twenty-eight convenient store locations open today. During the second quarter of 2019 we continued our expansion into Buck County with the opening of our new store in Feasterville, PA.  There are also multiple sites in various stages of development for future store locations.
     
  • Expansion into New York City began in July 2019 with the grand opening of our first store location at 14th Street & 5th Avenue in Manhattan. We’ve also started construction on our next site in New York located at 51st Street & 3rd Avenue which is expected to open during the fourth quarter.

  • Net income remained at $0.4 million, or $0.01 per share, for the three months ended June 30, 2019 compared to $0.4 million, or $0.01 per share for the three months ended March 31, 2019 and declined from $2.4 million, or $0.04 per share, for the three months ended June 30, 2018.
     
  • The net interest margin decreased by 25 basis points to 2.94% for the three months ended June 30, 2019 compared to 3.19% for the three months ended June 30, 2018. Margin compression was driven by the flat and inverted yield curve experienced during the second quarter of 2019.
     
  • Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.53% as of June 30, 2019 compared to 0.81% as of June 30, 2018.
     
  • The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. The Oak Mortgage team has originated more than $370 million in mortgage loans over the last twelve months.
     
  • Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy.  More than $27 million in new SBA loans were originated during the six month period ended June 30, 2019. Republic Bank continues to be a top SBA lender in our market area based on the dollar volume of loan originations.
     
  • The Company’s Total Risk-Based Capital ratio was 14.02% and Tier I Leverage Ratio was 8.97% at June 30, 2019.
     
  • Book value per common share increased to $4.27 as of June 30, 2019 compared to $4.01 as of June 30, 2018.

Income Statement

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

 Three Months Ended 
Three Months Ended
 06/30/1903/31/19%
Change
 06/30/1906/30/18%
Change
 
Net Interest Income$  19,371$  19,1401% $  19,371$  18,6624%
Non-interest Income 7,026 4,94542%  7,026 5,76822%
Provision for Loan Losses - 300n/m   - 800n/m 
Non-interest Expense 25,911 23,62710%  25,911 20,72925%
Income Before Taxes 486 518(6%)  486 2,901(83%)
Provision (Benefit) for Taxes 105 9214%  105 530(80%)
Net Income 381 426(11%)  381 2,371(84%)
Net Income per Share$  0.01$  0.01(0%) $  0.01$  0.04(75%)


 Six Months Ended 
 06/30/1906/30/18%
Change
 
Net Interest Income$  38,511$  36,7785%
Non-interest Income 11,971 10,30316%
Provision for Loan Losses 300 1,200(75%)
Non-interest Expense 49,178 40,83120%
Income Before Taxes 1,004 5,050(80%)
Provision (Benefit) for Taxes 197 902(78%)
Net Income 807 4,148(81%)
Net Income per Share$  0.01$  0.07(86%)
       

The Company reported net income of $381 thousand, or $0.01 per share, for the three month period ended June 30, 2019, compared to $426 thousand, or $0.01 per share for the three month period ended March 31, 2019 and $2.4 million, or $0.04 per share, for the three month period ended June 30, 2018.  Net income for the six month period ended June 30, 2019 was $807 thousand, or $0.01 per share, compared to net income of $4.1 million, or $0.07 per share, for the six months ended June 30, 2018.

On a linked quarter basis net income was consistent at $0.4 million for the first and second quarter of 2019. Year over year net income declined to $0.4 million in the second quarter of 2019 from $2.4 in the second quarter of 2018. Current year profitability has been impacted by the expenses incurred to expand into the New York market and continued compression of the net interest margin.

Interest income increased by $3.9 million, or 18%, to $26.2 million for the quarter ended June 30, 2019 compared to $22.3 million for the quarter ended June 30, 2018. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion strategy. However, interest expense increased by $3.2 million, or 88%, to $6.9 million for the quarter ended June 30, 2019 compared to $3.7 million for the quarter ended June 30, 2018. The increase in interest expense was driven by multiple increases in the fed funds rate during 2018 which resulted in a higher cost of funds on deposit balances and led to compression in the net interest margin. The net interest margin for the three month period ended June 30, 2019 decreased by 25 basis points to 2.94% compared to 3.19% for the three month period ended June 30, 2018.

Non-interest income increased by $1.3 million, or 22%, to $7.0 million for the three month period ended June 30, 2019, compared to $5.8 million for the three month period ended June 30, 2018. The increase is primarily attributable to higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts. An increase in gains on sales of SBA loans and investment securities also contributed to the increase in non-interest income during the second quarter of 2019.

Non-interest expenses increased by 25%, to $25.9 million during the quarter ended June 30, 2019 compared to $20.7 million during the quarter ended June 30, 2018. The growth in expenses was mainly caused by an increase in salaries and employee benefits driven by annual merit increases along with increased staffing levels related to our growth and expansion strategy. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses. We’ve also begun to incur costs related to the expansion into the New York market as we hire a management and lending team and commence rent payments for the build out of our store locations.

The provision for income taxes was $105 thousand for the three month period ended June 30, 2019 compared to a provision for income taxes in the amount of $530 thousand for the three month period ended June 30, 2018.

Balance Sheet

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

 

Description
 

06/30/19
 

06/30/18
%
Change
 

03/31/19
%
Change
      
Total assets$2,940,986$2,552,920  15%$2,805,0605%
Total loans (net) 1,500,664 1,310,01215% 1,469,1862%
Total deposits 2,527,977 2,134,14118% 2,478,9532%

Total assets increased by $388.1 million, or 15%, as of June 30, 2019 when compared to June 30, 2018.  Deposits grew by $393.8 million to $2.5 billion as of June 30, 2019 compared to $2.1 billion as of June 30, 2018. The number of deposit accounts has grown by 27% 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):

 

 

Description
 

 

06/30/19
 

 

06/30/18
 

%
Change
 

 

03/31/19
 

%
Change
2nd Qtr
2019
Cost of
Funds
       
Demand noninterest-bearing$544,406 $526,650   3%$525,645   4%0.00%
Demand interest-bearing 1,072,415 785,513 37% 1,101,129   (3%)1.47%
Money market and savings 719,075 698,182  3% 691,351   4%0.94%
Certificates of deposit 192,081 123,796 55% 160,828 19%1.95%
Total deposits$2,527,977$2,134,141 18%$2,478,953   2%1.06%
       

Deposits increased to $2.5 billion at June 30, 2019 compared to $2.1 billion at June 30, 2018 as the Company moves forward with its growth strategy to increase the number of stores and expand the reach of 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 strong growth in demand deposit balances and certificates of deposit, year over year as a result of the successful execution of its strategy.

Lending

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

 

Description
 

06/30/19
% of
Total
 

06/30/18
% of
Total
 

03/31/19
% of
Total
       
Commercial real estate$553,64437%$489,57437%$527,004 36%
Construction and land development 111,4747% 120,1659% 124,1248%
Commercial and industrial 189,63213% 188,25414% 204,63714%
Owner occupied real estate 381,85225% 335,87126% 376,84526%
Consumer and other 98,1556% 83,6066% 92,7286%
Residential mortgage 173,96312% 100,1088% 151,74810%
Gross loans$1,508,720100%$1,317,578100%$1,477,086100%
       

Gross loans increased by $191 million, or 15%, to $1.5 billion at June 30, 2019 compared to $1.3 billion at June 30, 2018 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 strongest growth in commercial real estate, owner occupied real estate and residential mortgage loans year over year.

Asset Quality

The Company’s asset quality ratios are highlighted below:

  Three Months Ended
 06/30/1903/31/1906/30/18
    
Non-performing assets / capital and reserves6%7%9%
Non-performing assets / total assets0.53%0.60%0.81%
Quarterly net loan charge-offs / average loans(0.04%)0.28%(0.04%)
Allowance for loan losses / gross loans0.53%0.53%0.57%
Allowance for loan losses / non-performing loans86%74%54%

The percentage of non-performing assets to total assets decreased to 0.53% at June 30, 2019, compared to 0.81% at June 30, 2018.  The ratio of non-performing assets to capital and reserves decreased to 6% at June 30, 2019 compared to 9% at June 30, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at June 30, 2019 were as follows:

 Actual
06/30/19
Bancorp
Actual
06/30/19
Bank
Regulatory
Guidelines

“Well Capitalized”
    
Leverage Ratio  8.97%  8.57%5.00%
Common Equity Ratio  13.01%  12.99%6.50%
Tier 1 Risk Based Capital  13.59%  12.99%8.00%
Total Risk Based Capital  14.02%  13.42%10.00%
Tangible Common Equity  8.39%  8.27%n/a 

Total shareholders’ equity increased to $251 million at June 30, 2019 compared to $235 million at June 30, 2018. Book value per common share increased to $4.27 at June 30, 2019 compared to $4.01 per share at June 30, 2018.

Analyst and Investor Call

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

  
Date:July 29, 2019
Time:10:00am (EDT)
From the U.S. dial:(888) 771-4371 [Toll Free] or (847) 585-4405
Participant Pin:48871378#
 
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-eight stores located in the Greater Philadelphia, Southern New Jersey and New York City markets.  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, 2018 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) 2019   2019   2018 
        
ASSETS     
 Cash and due from banks$  38,770  $  31,511  $  29,363 
 Interest-bearing deposits and federal funds sold   90,744     54,394     29,991 
  Total cash and cash equivalents   129,514     85,905     59,354 
        
 Securities - Available for sale   338,286     287,694     502,021 
 Securities - Held to maturity   718,534     742,435     503,742 
 Restricted stock   5,130     2,097     8,379 
  Total investment securities   1,061,950     1,032,226     1,014,142 
        
 Loans held for sale   23,412     15,742     39,301 
        
 Loans receivable   1,508,720     1,477,086     1,317,578 
 Allowance for loan losses   (8,056)    (7,900)    (7,566)
  Net loans   1,500,664     1,469,186     1,310,012 
        
 Premises and equipment   105,311     94,390     80,069 
 Other real estate owned   6,406     6,088     6,559 
 Other assets   113,729     101,523     43,483 
        
 Total Assets$  2,940,986  $  2,805,060  $  2,552,920 
        
        
        
LIABILITIES     
 Non-interest bearing deposits$  544,406  $  525,645  $  526,650 
 Interest bearing deposits   1,983,571     1,953,308     1,607,491 
  Total deposits   2,527,977     2,478,953     2,134,141 
        
 Short-term borrowings   68,979     -      161,669 
 Subordinated debt   11,262     11,260     11,256 
 Other liabilities   81,410     66,462     10,520 
        
 Total Liabilities   2,689,628     2,556,675     2,317,586 
        
SHAREHOLDERS' EQUITY     
 Common stock - $0.01 par value   594     593     593 
 Additional paid-in capital   270,789     270,155     267,974 
 Accumulated deficit   (7,909)    (8,290)    (13,195)
 Treasury stock at cost   (3,725)    (3,725)    (3,725)
 Stock held by deferred compensation plan   (183)    (183)    (183)
 Accumulated other comprehensive loss   (8,208)    (10,165)    (16,130)
        
 Total Shareholders' Equity   251,358     248,385     235,334 
        
        
 Total Liabilities and Shareholders' Equity$  2,940,986  $  2,805,060  $  2,552,920 
        


          
Republic First Bancorp, Inc.         
Consolidated Statements of Income         
(Unaudited)         
            
   Three Months Ended Six Months Ended
    June 30,  March 31,  June 30,   June 30,  June 30, 
(in thousands, except per share amounts) 2019  2019  2018   2019  2018 
            
INTEREST INCOME         
 Interest and fees on loans$  18,569 $  17,800 $  15,457  $  36,369 $  29,726 
 Interest and dividends on investment securities   7,158    7,383    6,804     14,541    13,262 
 Interest on other interest earning assets   518    336    63     854    235 
  Total interest income   26,245    25,519    22,324     51,764    43,223 
            
INTEREST EXPENSE         
 Interest on deposits   6,695    6,014    3,089     12,709    5,687 
 Interest on borrowed funds   179    365    573     544    758 
  Total interest expense   6,874    6,379    3,662     13,253    6,445 
            
 Net interest income   19,371    19,140    18,662     38,511    36,778 
 Provision for loan losses   -     300    800     300    1,200 
            
 Net interest income after provision for loan losses   19,371    18,840    17,862     38,211    35,578 
            
NON-INTEREST INCOME         
 Service fees on deposit accounts   1,848    1,612    1,326     3,460    2,501 
 Mortgage banking income   3,031    2,220    3,182     5,251    5,368 
 Gain on sale of SBA loans   1,147    502    846     1,649    1,838 
 Gain (loss) on sale of investment securities   261    322    (1)    583    (1)
 Other non-interest income   739    289    415     1,028    597 
  Total non-interest income   7,026    4,945    5,768     11,971    10,303 
            
NON-INTEREST EXPENSE         
 Salaries and employee benefits   13,705    12,359    10,883     26,064    21,528 
 Occupancy and equipment   4,221    4,015    3,353     8,236    6,823 
 Legal and professional fees   1,058    707    859     1,765    1,618 
 Foreclosed real estate   517    337    192     854    503 
 Regulatory assessments and related fees   421    421    395     842    862 
 Other operating expenses   5,989    5,428    5,047     11,417    9,497 
  Total non-interest expense   25,911    23,267    20,729     49,178    40,831 
            
Income before provision for income taxes   486    518    2,901     1,004    5,050 
            
Provision for income taxes   105    92    530     197    902 
            
Net income$  381 $  426 $  2,371  $  807 $  4,148 
            
            
Net Income per Common Share         
 Basic$  0.01 $  0.01 $  0.04  $  0.01 $  0.07 
 Diluted$  0.01 $  0.01 $  0.04  $  0.01 $  0.07 
            
Average Common Shares Outstanding         
 Basic   58,841    58,805    58,746     58,823    57,927 
 Diluted   59,401    59,587    59,911     59,501    59,147 
            


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, 2019 March 31, 2019 June 30, 2018
                  
   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$  85,920 $  518 2.42% $  55,369 $  336 2.46% $  13,412 $  63 1.88%
Securities   1,067,185    7,184 2.69%    1,085,910    7,420 2.73%    1,048,291    6,838 2.61%
Loans receivable   1,509,177    18,681 4.96%    1,468,640    17,911 4.95%    1,304,244    15,557 4.78%
Total interest-earning assets   2,662,282    26,383 3.97%    2,609,919    25,667 3.99%    2,365,947    22,458 3.81%
                  
Other assets   217,685        190,855        129,077    
                  
Total assets$ 2,879,967     $ 2,800,774     $ 2,495,024    
                  
Interest-bearing liabilities:                 
                  
Demand non interest-bearing$  525,336     $  512,172     $  481,548    
Demand interest-bearing   1,144,783    4,206 1.47%    1,113,758    3,938 1.43%    844,405    1,549 0.74%
Money market & savings   697,279    1,628 0.94%    675,506    1,452 0.87%    699,136    1,174 0.67%
Time deposits   176,750    861 1.95%    153,832    624 1.65%    125,607    366 1.17%
Total deposits   2,544,148    6,695 1.06%    2,455,268    6,014 0.99%    2,150,696    3,089 0.58%
                  
Total interest-bearing deposits   2,018,812    6,695 1.33%    1,943,096    6,014 1.26%    1,669,148    3,089 0.74%
                  
Other borrowings   19,864    179 3.61%    46,969    365 3.15%    101,829    573 2.26%
                  
                  
Total interest-bearing liabilities   2,038,676    6,874 1.35%    1,990,065    6,379 1.30%    1,770,977    3,662 0.83%
Total deposits and                  
  other borrowings   2,564,012    6,874 1.08%    2,502,237    6,379 1.03%    2,252,525    3,662 0.65%
                  
                  
Non interest-bearing liabilities   66,780        52,037        8,952    
Shareholders' equity   249,175        246,500        233,547    
Total liabilities and                 
shareholders' equity$ 2,879,967     $ 2,800,774     $ 2,495,024    
                  
Net interest income  $ 19,509     $ 19,288     $ 18,796  
Net interest spread    2.62%     2.69%     2.98%
                  
Net interest margin    2.94%     3.00%     3.19%
                  
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, 2019 June 30, 2018
            
   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$  70,729 $  854 2.43% $  26,844 $  235 1.77%
Securities   1,076,496    14,604 2.71%    1,032,038    13,325 2.58%
Loans receivable   1,489,020    36,592 4.96%    1,269,875    29,922 4.75%
Total interest-earning assets   2,636,245    52,050 3.98%    2,328,757    43,482 3.77%
            
Other assets   204,344        128,045    
            
Total assets$ 2,840,589     $ 2,456,802    
            
Interest-bearing liabilities:           
            
Demand non interest-bearing$  518,790     $  456,530    
Demand interest-bearing   1,129,356    8,144 1.45%    868,832    2,806 0.65%
Money market & savings   686,453    3,080 0.90%    693,508    2,146 0.62%
Time deposits   165,354    1,485 1.81%    127,740    735 1.16%
Total deposits   2,499,953    12,709 1.03%    2,146,610    5,687 0.53%
            
Total interest-bearing deposits   1,981,163    12,709 1.29%    1,690,080    5,687 0.68%
            
Other borrowings   33,341    544 3.29%    71,360    758 2.14%
            
            
Total interest-bearing liabilities   2,014,504    13,253 1.33%    1,761,440    6,445 0.74%
Total deposits and            
  other borrowings   2,533,294    13,253 1.05%    2,217,970    6,445 0.59%
            
            
Non interest-bearing liabilities   59,505        9,171    
Shareholders' equity   247,790        229,661    
Total liabilities and           
shareholders' equity$ 2,840,589     $ 2,456,802    
            
Net interest income  $ 38,797     $ 37,037  
Net interest spread    2.65%     3.03%
            
Net interest margin    2.97%     3.21%
            
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) 2019   2018   2018   2018   2019   2018 
            
            
Balance at beginning of period$  7,900  $  8,615  $  6,650  $  8,599  $  8,615  $  8,599 
            
Provision charged to operating expense   -      300     800     2,300     300     1,200 
    7,900     8,915     7,450     10,899     8,915     9,799 
            
Recoveries on loans charged-off:           
  Commercial   154     1     129     152     155     129 
  Consumer   3     1     1     2     4     1 
Total recoveries   157     2     130     154     159     130 
            
Loans charged-off:           
  Commercial   (1)    (929)    -      (2,219)    (930)    (2,151)
  Consumer   -      (88)    (14)    (219)    (88)    (212)
            
Total charged-off   (1)    (1,017)    (14)    (2,438)    (1,018)    (2,363)
            
Net charge-offs   156     (1,015)    116     (2,284)    (859)    (2,233)
            
Balance at end of period$  8,056  $  7,900  $  7,566  $  8,615  $  8,056  $  7,566 
            
            
Net charge-offs as a percentage of           
  average loans outstanding (0.04%)  0.28%  (0.04%)  0.17%  0.12%  0.35%
            
Allowance for loan losses as a percentage           
  of period-end loans 0.53%  0.53%  0.57%  0.60%  0.53%  0.57%
                        


          
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) 2019   2019   2018   2018   2018 
          
Non-accrual loans:         
  Commercial real estate$  7,545  $  8,096  $  9,463  $  12,661  $  13,297 
  Consumer and other   1,777     836     878     818     809 
Total non-accrual loans   9,322     8,932     10,341     13,479     14,106 
          
Loans past due 90 days or more         
  and still accruing   -      1,744     -      -      -  
          
Total non-performing loans   9,322     10,676     10,341     13,479     14,106 
          
Other real estate owned   6,406     6,088     6,223     6,768     6,559 
          
Total non-performing assets$  15,728  $  16,764  $  16,564  $  20,247  $  20,665 
          
          
Non-performing loans to total loans 0.62%  0.72%  0.72%  0.98%  1.07%
          
Non-performing assets to total assets 0.53%  0.60%  0.60%  0.76%  0.81%
          
Non-performing loan coverage 86.42%  74.00%  83.31%  59.97%  53.64%
          
Allowance for loan losses as a percentage         
  of total period-end loans 0.53%  0.53%  0.60%  0.59%  0.57%
          
Non-performing assets / capital plus         
  allowance for loan losses 6.06%  6.54%  6.53%  8.30%  8.51%
                    

Logo.JPG

Source: Republic First Bancorp, Inc.