Press Release

Republic First Bancorp, Inc. Reports Third Quarter Financial Results Deposits Increase by 14% and Loans Grow 14%

Company Release - 10/28/2019 8:00 AM ET

PHILADELPHIA, Oct. 28, 2019 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2019.

Q3-2019 Highlights

  • Total deposits increased by $340 million, or 14%, to $2.7 billion as of September 30, 2019 compared to $2.4 billion as of September 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 $24 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 during the third quarter.
     
  • Total loans grew $191 million, or 14%, to $1.6 billion as of September 30, 2019 compared to $1.4 billion at September 30, 2018.
     
  • Profitability declined as the Company reported a net loss of $1.8 million, or ($0.03) per share, during the third quarter of 2019 compared to net income of $2.3 million, or $0.04 per share during the third quarter of 2018.

“The Power of Red is Back” in New York City. During the third quarter we launched our expansion into New York City with the opening of our newest store on the corner of 14th Street and 5th Avenue. We immediately began converting customers into FANS by treating them with the legendary customer service and convenience that Republic Bank is known for.  We anxiously await the opening of our second New York store at 51st Street and 3rd Avenue, which we expect to complete in early November, to share our FANatical approach to banking with an ever growing FAN base.

Third quarter results were negatively impacted by continued compression of our net interest margin caused by a flat and, at times, an inverted yield curve. The shape of the yield curve is driving lower yields on interest earning assets and higher rates on interest bearing liabilities. In the midst of this challenging interest rate environment we have also incurred costs required to expand into New York City. In addition to new hires, training, advertising, and occupancy expenses for the opening of our first two stores in New York this year, we have also established a management and lending team for this new market.

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

“We are thrilled to bring The Power of Red Back to New York City. At a time when most banks are closing 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. We are extremely excited to have the opportunity to create new FANS in the City of New York. Today we face a difficult challenge as the shape of the yield curve limits our ability to increase net interest income proportionate to the growth in our balance sheet. We are evaluating all opportunities to improve profitability in this challenging rate environment.”

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

“Since the inception of The Power of Red is Back growth campaign we have demonstrated consistent growth in the balance sheet through organic growth in loans and deposits. The results have been a testament to the strength of our model and the unmatched commitment to customer service by every member of the Republic Bank Team. The current interest rate environment has put a significant strain on profitability in recent quarters. We will assess every opportunity within our control to enhance earnings.”

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

($ in millions, except per share data)        
  09/30/19 09/30/18 YOY
Change
 12/31/18 YTD
Change
           
Assets $  3,086 $  2,657 16% $   2,753 12%
Loans    1,569   1,379 14%    1,437 9%
Deposits    2,740   2,400 14%    2,393 15%
           

 

             
  Three Months Ended Nine Months Ended
  09/30/19 09/30/18 Change 09/30/19 09/30/18 Change
Total Revenue $  32.8  $  28.7  14% $ 96.5  $  82.2  17%
Net Income (Loss)   (1.8)    2.3  (178%)   (1.0)    6.5  (116%)
Net Income (Loss) per Share $(0.03) $  0.04  (175%) $(0.02) $  0.11  (118%)
Net Interest Margin  2.82%  3.14%    2.92%  3.18%  
             

Financial Highlights for the Period Ended September 30, 2019

  • Total assets increased by $429 million, or 16%, to $3.1 billion as of September 30, 2019 compared to $2.7 billion as of September 30, 2018.
     
  • We have twenty-eight convenient store locations open today. During the third quarter of 2019 we celebrated the grand opening of our first store in New York City located at 14th Street and 5th Avenue.
     
  • Construction on our next site in New York located at 51st Street & 3rd Avenue is ongoing and expected to be complete during the fourth quarter. We’ve also broken ground on sites in Northfield, NJ and Bensalem, PA. There are multiple sites in various stages of development for future store locations.
     
  • Profitability declined during the third quarter. The Company recorded a net loss of $1.8 million, or ($0.03) per share, for the three months ended September 30, 2019 compared to net income of $0.4 million, or $0.01 per share for the three months ended June 30, 2019 and net income of $2.3 million, or $0.04 per share, for the three months ended September 30, 2018.
     
  • The net interest margin decreased by 32 basis points to 2.82% for the three months ended September 30, 2019 compared to 3.14% for the three months ended September 30, 2018. Margin compression was driven by the flat and inverted yield curve experienced during the third quarter of 2019.
     
  • The ratio of non-performing assets to total assets declined to 0.61% as of September 30, 2019 compared to 0.76% as of September 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 $390 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 $43 million in new SBA loans were originated during the nine month period ended September 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 13.53% and Tier I Leverage Ratio was 8.60% at September 30, 2019.
     
  • Book value per common share increased to $4.26 as of September 30, 2019 compared to $4.01 as of September 30, 2018.

Income Statement

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

 Three Months Ended
 09/30/19 06/30/19 % Change 09/30/18 % Change
Net Interest Income$  19,382  $  19,371 -% $  19,146 1%
Non-interest Income 6,554   7,026 (7%)  5,131 28%
Provision for Loan Losses 450   - n/m  500 (10%)
Non-interest Expense 27,824   25,911 7%  20,833 34%
Income (Loss) Before Taxes (2,338)  486 (581%)  2,944 (179%)
Provision (Benefit) for Taxes   (516)  105 (591%)  622 (183%)
Net Income (Loss) (1,822)  381 (578%)  2,322 (178%)
          
Net Income (Loss) per Share$  (0.03) $  0.01 (400%) $  0.04 (175%)

 

 Nine Months Ended
  09/30/1909/30/18% Change
Net Interest Income $  57,893 $  55,9244%
Non-interest Income  18,525  15,43420%
Provision for Loan Losses  750  1,700(56%)
Non-interest Expense  77,002  61,66425%
Income (Loss) Before Taxes  (1,334) 7,994(117%)
Provision (Benefit) for Taxes  (319) 1,524(121%)
Net Income (Loss)  (1,015) 6,470(116%)
Net Income (Loss) per Share $   (0.02)$  0.11(118%)

The Company reported a net loss of $1.8 million, or ($0.03) per share, for the three month period ended September 30, 2019, compared to net income of $381 thousand, or $0.01 per share for the three month period ended June 30, 2019 and net income of $2.3 million, or $0.04 per share, for the three month period ended September 30, 2018.  The net loss for the nine month period ended September 30, 2019 was $1.0 million, or ($0.02) per share, compared to net income of $6.5 million, or $0.11 per share, for the nine months ended September 30, 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 $2.7 million, or 11%, to $26.2 million for the quarter ended September 30, 2019 compared to $23.6 million for the quarter ended September 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 $2.4 million, or 55%, to $6.8 million for the quarter ended September 30, 2019 compared to $4.4 million for the quarter ended September 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. On a linked quarter basis, the deposit cost of funds has begun to decline as a result of two reductions in the fed funds rate during the third quarter of 2019. The net interest margin for the three month period ended September 30, 2019 decreased by 32 basis points to 2.82% compared to 3.14% for the three month period ended September 30, 2018.

Non-interest income increased by $1.4 million, or 28%, to $6.6 million for the three month period ended September 30, 2019, compared to $5.1 million for the three month period ended September 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 investment securities also contributed to the increase in non-interest income during the third quarter of 2019.

Non-interest expenses increased by 34%, to $27.8 million during the quarter ended September 30, 2019 compared to $20.8 million during the quarter ended September 30, 2018. The growth in expenses was driven by an increase in salaries and employee benefits as a result of 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. Throughout 2019, we’ve incurred costs related to our expansion into the New York market. Our first store in New York opened during the third quarter of 2019 and our second location is now under construction. In addition, we’ve hired a management and lending team to operate in this new market. Rent payments have commenced for our store locations and we’ve initiated a marketing and advertising campaign to announce our expansion.

The benefit for income taxes was $516 thousand for the three month period ended September 30, 2019 compared to a provision for income taxes in the amount of $622 thousand for the three month period ended September 30, 2018.

Balance Sheet

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

 

Description
 

09/30/19
 

09/30/18
% Change 

06/30/19
% Change
      
Total assets$3,085,921$2,657,206  16%$2,940,9865%
Total loans (net) 1,560,913 1,370,70414% 1,500,6644%
Total deposits 2,740,032 2,400,35814% 2,527,9778%

Total assets increased by $428.7 million, or 16%, as of September 30, 2019 when compared to September 30, 2018.  Deposits grew by $339.7 million to $2.7 billion as of September 30, 2019 compared to $2.4 billion as of September 30, 2018. The number of deposit accounts has grown by 28% 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
 

 

09/30/19
 

 

09/30/18
 

% Change
 

 

06/30/19
 

%
Change
3rd Qtr 2019 Cost of Funds
       
Demand noninterest-bearing$595,869 $509,188   17%$544,406   9%0.00%
Demand interest-bearing 1,227,969 1,058,670 16% 1,072,415   15%1.27%
Money market and savings 698,991 703,358  (1%) 719,075   (3%)1.02%
Certificates of deposit 217,203 129,142 68% 192,081 13%2.14%
Total deposits$2,740,032$2,400,358 14%$2,527,977   8%1.00%
       

Deposits increased to $2.7 billion at September 30, 2019 compared to $2.4 billion at September 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
 
09/30/19
% of Total
09/30/18
% of Total 
06/30/19
% of Total
       
Commercial real estate$ 570,32736%$ 495,52936%$ 553,644 37%
Construction and land development 109,5827% 125,5129% 111,4747%
Commercial and industrial 187,83712% 195,49314% 189,63213%
Owner occupied real estate 397,84326% 358,95626% 381,85225%
Consumer and other 98,2936% 86,9226% 98,1556%
Residential mortgage 205,49813% 116,3769% 173,96312%
Gross loans$1,569,380100%$1,378,788100%$1,508,720100%
       

Gross loans increased by $191 million, or 14%, to $1.6 billion at September 30, 2019 compared to $1.4 billion at September 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
 09/30/1906/30/1909/30/18
    
Non-performing assets / capital and reserves7%6%8%
Non-performing assets / total assets0.61%0.53%0.76%
Quarterly net loan charge-offs / average loans0.01%(0.04%)(0.01%)
Allowance for loan losses / gross loans0.54%0.53%0.59%
Allowance for loan losses / non-performing loans70%86%  60%

The percentage of non-performing assets to total assets decreased to 0.61% at September 30, 2019, compared to 0.76% at September 30, 2018.  The ratio of non-performing assets to capital and reserves decreased to 7% at September 30, 2019 compared to 8% at September 30, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

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

 Actual
09/30/19
Bancorp
Actual
09/30/19
Bank
Regulatory Guidelines
“Well Capitalized”
    
Leverage Ratio  8.60%  8.23%5.00%
Common Equity Ratio  12.53%  12.55%6.50%
Tier 1 Risk Based Capital  13.10%  12.55%8.00%
Total Risk Based Capital  13.53%  12.98%10.00%
Tangible Common Equity  7.98%  7.87%n/a 

Total shareholders’ equity increased to $251 million at September 30, 2019 compared to $236 million at September 30, 2018. Book value per common share increased to $4.26 at September 30, 2019 compared to $4.01 per share at September 30, 2018.

Analyst and Investor Call

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

Date:October 28, 2019
Time:11:00am (EDT)
From the U.S. dial:(800) 774-6070 [Toll Free] or (630) 691-2753
Participant Pin:5866531#
  
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)       
          
    September 30,June 30, September 30,
(dollars in thousands, except per share amounts) 2019   2019   2018  
          
ASSETS       
 Cash and due from banks $57,562  $38,770  $37,303  
 Interest-bearing deposits and federal funds sold 143,915   90,744   108,996  
  Total cash and cash equivalents 201,477   129,514   146,299  
          
 Securities - Available for sale  379,962   338,286   487,524  
 Securities - Held to maturity  687,425   718,534   485,291  
 Restricted stock  2,371   5,130   1,916  
  Total investment securities  1,069,758   1,061,950   974,731  
          
 Loans held for sale  21,210   23,412   32,839  
          
 Loans receivable  1,569,380   1,508,720   1,378,788  
 Allowance for loan losses  (8,467)  (8,056)  (8,084) 
  Net loans  1,560,913   1,500,664   1,370,704  
          
 Premises and equipment  111,573   105,311   81,912  
 Other real estate owned  6,653   6,406   6,768  
 Other assets  114,337   113,729   43,953  
          
 Total Assets $3,085,921  $2,940,986  $2,657,206  
          
          
          
LIABILITIES       
 Non-interest bearing deposits $595,869  $544,406  $509,188  
 Interest bearing deposits  2,144,163   1,983,571   1,891,170  
  Total deposits  2,740,032   2,527,977   2,400,358  
          
 Short-term borrowings  -   68,979   -  
 Subordinated debt  11,263   11,262   11,257  
 Other liabilities  83,783   81,410   9,767  
          
 Total Liabilities  2,835,078   2,689,628   2,421,382  
          
SHAREHOLDERS' EQUITY       
 Common stock - $0.01 par value  594   594   593  
 Additional paid-in capital  271,412   270,789   268,613  
 Accumulated deficit  (9,731)  (7,909)  (10,873) 
 Treasury stock at cost  (3,725)  (3,725)  (3,725) 
 Stock held by deferred compensation plan (183)  (183)  (183) 
 Accumulated other comprehensive loss (7,524)  (8,208)  (18,601) 
          
 Total Shareholders' Equity  250,843   251,358   235,824  
          
          
 Total Liabilities and Shareholders' Equity$3,085,921  $2,940,986  $2,657,206  

 

Republic First Bancorp, Inc.          
Consolidated Statements of Income          
(Unaudited)          
             
   Three Months Ended Nine Months Ended 
       
   September 30,June 30, September 30,September 30,September 30,
(in thousands, except per share amounts) 2019   2019  2018  2019   2018  
             
INTEREST INCOME          
 Interest and fees on loans$18,707  $18,569 $16,764 $55,076  $46,490  
 Interest and dividends on investment securities 6,724   7,158  6,641  21,265   19,903  
 Interest on other interest earning assets 777   518  153  1,631   388  
  Total interest income 26,208   26,245  23,558  77,972   66,781  
             
INTEREST EXPENSE          
 Interest on deposits 6,689   6,695  3,642  19,398   9,329  
 Interest on borrowed funds 137   179  770  681   1,528  
  Total interest expense 6,826   6,874  4,412  20,079   10,857  
             
 Net interest income 19,382   19,371  19,146  57,893   55,924  
 Provision for loan losses 450   -  500  750   1,700  
             
 Net interest income after provision for loan losses 18,932   19,371  18,646  57,143   54,224  
             
NON-INTEREST INCOME          
 Service fees on deposit accounts 1,990   1,848  1,386  5,450   3,887  
 Mortgage banking income 2,797   3,031  2,580  8,048   7,948  
 Gain on sale of SBA loans 944   1,147  816  2,593   2,654  
 Gain (loss) on sale of investment securities 520   261  -  1,103   (1) 
 Other non-interest income 303   739  349  1,331   946  
  Total non-interest income 6,554   7,026  5,131  18,525   15,434  
             
NON-INTEREST EXPENSE          
 Salaries and employee benefits 14,314   13,705  11,203  40,378   32,731  
 Occupancy and equipment 4,734   4,221  3,260  12,970   10,083  
 Legal and professional fees 1,123   1,058  773  2,888   2,391  
 Foreclosed real estate 799   517  378  1,653   881  
 Regulatory assessments and related fees 62   421  396  904   1,258  
 Other operating expenses 6,792   5,989  4,823  18,209   14,320  
  Total non-interest expense 27,824   25,911  20,833  77,002   61,664  
             
Income (loss) before provision (benefit) for income taxes (2,338)  486  2,944  (1,334)  7,994  
             
Provision (benefit) for income taxes (516)  105  622  (319)  1,524  
             
Net income (loss)$(1,822) $381 $2,322 $(1,015) $6,470  
             
             
Net Income (Loss) per Common Share          
 Basic$(0.03) $0.01 $0.04 $(0.02) $0.11  
 Diluted$(0.03) $0.01 $0.04 $(0.02) $0.11  
             
Average Common Shares Outstanding          
 Basic 58,843   58,841  58,774  58,830   58,213  
 Diluted 59,207   59,401  59,774  59,416   59,338  


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) September 30, 2019 June 30, 2019 September 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 $146,446 $777 2.10% $85,920 $518 2.42% $29,163 $153 2.08%
Securities  1,055,154  6,743 2.56%  1,067,185  7,184 2.69%  1,018,910  6,676 2.62%
Loans receivable  1,540,834  18,816 4.84%  1,509,177  18,681 4.96%  1,390,894  16,873 4.81%
Total interest-earning assets 2,742,434  26,336 3.81%  2,662,282  26,383 3.97%  2,438,967  23,702 3.86%
                   
Other assets  247,682      217,685      135,139    
                   
Total assets $2,990,116     $2,879,967     $2,574,106    
                   
Interest-bearing liabilities:                  
                   
Demand non interest-bearing$563,691     $525,336     $513,292    
Demand interest-bearing  1,168,404  3,752 1.27%  1,144,783  4,206 1.47%  861,607  1,948 0.90%
Money market & savings  702,547  1,814 1.02%  697,279  1,628 0.94%  699,081  1,308 0.74%
Time deposits  208,624  1,123 2.14%  176,750  861 1.95%  126,378  386 1.21%
Total deposits  2,643,266  6,689 1.00%  2,544,148  6,695 1.06%  2,200,358  3,642 0.66%
                   
Total interest-bearing deposits 2,079,575  6,689 1.28%  2,018,812  6,695 1.33%  1,687,066  3,642 0.86%
                   
Other borrowings  14,037  137 3.87%  19,864  179 3.61%  127,150  770 2.40%
                   
                   
Total interest-bearing liabilities  2,093,612  6,826 1.29%  2,038,676  6,874 1.35%  1,814,216  4,412 0.96%
Total deposits and other borrowings  2,657,303  6,826 1.02%  2,564,012  6,874 1.08%  2,327,508  4,412 0.75%
                   
                   
Non interest-bearing liabilities 81,872      66,780      10,363    
Shareholders' equity  250,941      249,175      236,235    
Total liabilities and                  
shareholders' equity $2,990,116     $2,879,967     $2,574,106    
                   
Net interest income   $19,510     $19,509     $19,290  
Net interest spread     2.52%     2.62%     2.90%
                   
Net interest margin     2.82%     2.94%     3.14%
                   
                   
Note: The above tables are presented on a tax equivalent basis.            


Republic First Bancorp, Inc.            
Average Balances and Net Interest Income           
(unaudited)             
              
              
              
  For the nine months ended For the nine months ended 
(dollars in thousands) September 30, 2019 September 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 $96,245 $1,631 2.27% $27,625 $388 1.88% 
Securities  1,069,304  21,347 2.66%  1,027,614  20,001 2.60% 
Loans receivable  1,506,482  55,408 4.92%  1,310,750  46,795 4.77% 
Total interest-earning assets 2,672,031  78,386 3.92%  2,365,989  67,184 3.80% 
              
Other assets  218,947      130,344     
              
Total assets $2,890,978     $2,496,333     
              
Interest-bearing liabilities:             
              
Demand non interest-bearing$533,922     $475,659     
Demand interest-bearing  1,142,515  11,896 1.39%  866,397  4,754 0.73% 
Money market & savings  691,876  4,894 0.95%  695,386  3,454 0.66% 
Time deposits  179,936  2,608 1.94%  127,281  1,121 1.18% 
Total deposits  2,548,249  19,398 1.02%  2,164,723  9,329 0.58% 
              
Total interest-bearing deposits 2,014,327  19,398 1.29%  1,689,064  9,329 0.74% 
              
Other borrowings  26,836  681 3.39%  90,160  1,528 2.27% 
              
              
Total interest-bearing liabilities 2,041,163  20,079 1.32%  1,779,224  10,857 0.82% 
Total deposits and other borrowings  2,575,085  20,079 1.04%  2,254,883  10,857 0.64% 
              
              
Non interest-bearing liabilities 67,182      9,534     
Shareholders' equity  248,711      231,916     
Total liabilities and shareholders' equity $2,890,978     $2,496,333     
              
Net interest income   $58,307     $56,327   
Net interest spread     2.60%     2.98% 
              
Net interest margin     2.92%     3.18% 
              
              
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  Nine months ended
      
 September 30, June 30, September 30, Dec 31 September 30, September 30,
(dollars in thousands) 2019   2019   2018   2018   2019   2018 
            
            
Balance at beginning of period$8,056  $7,900  $7,566  $8,599  $8,615  $8,599 
            
Provision charged to operating expense 450   -   500   2,300   750   1,700 
  8,506   7,900   8,066   10,899   9,365   10,299 
            
Recoveries on loans charged-off:           
Commercial 59   154   18   152   214   147 
Consumer 3   3   1   2   7   2 
Total recoveries 62   157   19   154   221   149 
            
Loans charged-off:           
Commercial (72)  (1)  -   (2,219)  (1,002)  (2,151)
Consumer (29)  -   (1)  (219)  (117)  (213)
            
Total charged-off (101)  (1)  (1)  (2,438)  (1,119)  (2,364)
            
Net charge-offs (39)  156   18   (2,284)  (898)  (2,215)
            
Balance at end of period$8,467  $8,056  $8,084  $8,615  $8,467  $8,084 
            
            
Net charge-offs as a percentage of average loans outstanding 0.01%  (0.04%)  (0.01%)  0.17%  0.08%  0.23%
            
Allowance for loan losses as a percentage of period-end loans 0.54%  0.53%  0.59%  0.60%  0.54%  0.59%


Republic First Bancorp, Inc.          
Summary of Non-Performing Loans and Assets        
(unaudited)         
          
 September 30, June 30, March 31, December 31, September 30,
(dollars in thousands)2019   2019   2019   2018   2018 
          
Non-accrual loans:         
Commercial real estate$10,180  $7,545  $8,096  $9,463  $12,661 
Consumer and other 1,743   1,777   836   878   818 
Total non-accrual loans 11,923   9,322   8,932   10,341   13,479 
          
Loans past due 90 days or more and still accruing 129   -   1,744   -   - 
          
Total non-performing loans 12,052   9,322   10,676   10,341   13,479 
          
Other real estate owned 6,653   6,406   6,088   6,223   6,768 
          
Total non-performing assets$18,705  $15,728  $16,764  $16,564  $20,247 
          
          
Non-performing loans to total loans 0.77%  0.62%  0.72%  0.72%  0.98%
          
Non-performing assets to total assets 0.61%  0.53%  0.60%  0.60%  0.76%
          
Non-performing loan coverage 70.25%  86.42%  74.00%  83.31%  59.97%
          
Allowance for loan losses as a percentage of total period-end loans 0.54%  0.53%  0.53%  0.60%  0.59%
          
Non-performing assets / capital plus allowance for loan losses 7.21%  6.06%  6.54%  6.53%  8.30%

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Source: Republic First Bancorp, Inc.