Press Release

Republic First Bancorp, Inc. Reports Fourth Quarter Financial Results

Company Release - 1/28/2020 8:00 AM ET

Deposits Increase by 25% and Loans Grow 22%

PHILADELPHIA, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2019.

Q4-2019 Highlights

  • Total deposits increased by $606 million, or 25%, to $3.0 billion as of December 31, 2019 compared to $2.4 billion as of December 31, 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 $30 million per year, while the average deposit growth for all stores over the last twelve months was approximately $22 million per store.
     
  • Expansion into New York City continued with the opening of our second store located on the corner of 51st Street and 3rd Avenue during the fourth quarter.
     
  • Total loans grew $312 million, or 22%, to $1.7 billion as of December 31, 2019 compared to $1.4 billion at December 31, 2018.
     
  • Profitability declined to a net loss of $2.5 million, or ($0.04) per share, during the fourth quarter of 2019 compared to net income of $2.2 million, or $0.04 per share during the fourth quarter of 2018.                                                                     

“The Power of Red is Back” expansion campaign continues to produce impressive results from a balance sheet perspective. During 2019 total assets grew by $588 million or 21% driven by the success of our customer centric banking philosophy of turning customers into FANS. Deposit balances increased by 25% as our network of stores continues to drive new customer relationships. Loan production was also significant as outstanding balances increased by 22%.

Earnings during 2019 were negatively impacted by 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.

As we enter the new year a number of cost control measures have been implemented to offset the challenges faced in growing revenue as a result of compression in the net interest margin. These measures will begin to take effect during the first quarter of 2020.

We are pleased to announce the recent addition of Jack Allison to the Republic Bank management team. Jack will serve as the Company’s Chief Technology Information Officer. He has more than 30 years of technology experience in the financial services industry including time as the Head of the Commerce Bank Technology Group from 1991 – 2010.  The addition of Jack demonstrates the commitment to enhance the total Republic Bank experience not only through the store network, but the on-line and mobile options as well.

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

“The fourth quarter caps off another tremendous year in balance sheet growth for “The Power of Red is Back” expansion campaign. Since the launch of our first glass prototype store six years ago deposits have grown at an average rate of 23% each year as a result of our denovo expansion strategy. Loan growth has also been strong as balances grew in excess of 20% for the third consecutive year. However, profitability continues to be hampered due to compression in our net interest margin. We are taking the steps necessary to reduce expenses and improve earnings in this challenging interest rate environment.”

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

“During the fourth quarter we continued our expansion into New York City with the opening of our second store on the corner of 51st Street and 3rd Avenue. And in early January we celebrated the grand opening of another prototype store in Northfield, NJ. 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.”

A summary of the financial results for the period ended December 31, 2019 can be found in the following tables:

         
($ in millions, except per share data)        
  12/31/19 12/31/18 YOY
Change
 09/30/19 QTD
Change
           
Assets $  3,341 $  2,753 21% $   3,086   8%
Loans    1,748   1,437 22%    1,569 11%
Deposits    2,999   2,393 25%    2,740   9%
           


             
  Three Months Ended Twelve Months Ended
  12/31/19 12/31/18 Change 12/31/19 12/31/18 Change
Total Revenue $  32.1  $  30.2  6% $ 128.6  $  112.4  14%
Net Income (Loss)   (2.5)    2.2  (215%)   (3.5)    8.6  (141%)
Net Income (Loss)  per Share $(0.04) $  0.04  (200%) $(0.06) $  0.15  (140%)
Net Interest Margin  2.67%  3.10%    2.85%  3.16%  
             
             

Financial Highlights for the Period Ended December 31, 2019

  • Total assets increased by $588 million, or 21%, to $3.3 billion as of December 31, 2019 compared to $2.8 billion as of December 31, 2018.
     
  • We have thirty convenient store locations open today. During the fourth quarter of 2019 we celebrated the grand opening of our second store in New York City located at 51st Street and 3rd Avenue.  And just after the start of the new year we opened a new store in Northfield, NJ.
     
  • Construction on a new store in Bensalem, PA is ongoing and expected to be complete during the second quarter of 2020. There are also multiple sites in various stages of development for future store locations.
     
  • Profitability declined during the fourth quarter. The Company recorded a net loss of $2.5 million, or ($0.04) per share, for the three months ended December 31, 2019 compared to a net loss of $1.8 million, or ($0.03) per share for the three months ended September 30, 2019 and net income of $2.2 million, or $0.04 per share, for the three months ended December 31, 2018.
     
  • The net interest margin decreased by 43 basis points to 2.67% for the three months ended December 31, 2019 compared to 3.10% for the three months ended December 31, 2018. Margin compression was driven by a flat yield curve experienced during the fourth quarter of 2019.
     
  • The ratio of non-performing assets to total assets declined to 0.42% as of December 31, 2019 compared to 0.60% as of December 31, 2018. The Company was able to successfully liquidate the single largest non-performing asset on its books during the fourth quarter of 2019.
     
  • 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 $450 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 $55 million in new SBA loans were originated during the twelve month period ended December 31, 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 12.37% and Tier I Leverage Ratio was 7.83% at December 31, 2019.
     
  • Book value per common share increased to $4.23 as of December 31, 2019 compared to $4.17 as of December 31, 2018.

Income Statement

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

  
 Three Months Ended
 12/31/19 09/30/19 %
Change
 12/31/18 %
Change
Net Interest Income$  19,914  $  19,382  3% $  19,980 -%
Non-interest Income 5,213   6,554  (20%)  4,888 7%
Provision for Loan Losses 1,155   450  157%  600 93%
Non-interest Expense 27,488   27,824  (1%)  22,057 25%
Income (Loss) Before Taxes (3,516)  (2,338) (50%)  2,211 (259%)
Provision (Benefit) for Taxes   (1,031)  (516) (100%)  54 (2,009%)
Net Income (Loss) (2,485)  (1,822) (36%)  2,157 (215%)
          
Net Income (Loss) per Share$  (0.04) $  (0.03) (33%) $  0.04 (200%)


  
 Twelve Months Ended
  12/31/1912/31/18%
Change
Net Interest Income $  77,807 $  75,9043%
Non-interest Income  23,738  20,32217%
Provision for Loan Losses  1,905  2,300(17%)
Non-interest Expense  104,490  83,72125%
Income (Loss) Before Taxes  (4,850) 10,205(148%)
Provision (Benefit) for Taxes  (1,350) 1,578(186%)
Net Income (Loss)  (3,500) 8,627(141%)
Net Income (Loss) per Share $   (0.06)$  0.15(140%)
         

The Company reported a net loss of $2.5 million, or ($0.04) per share, for the three month period ended December 31, 2019, compared to a net loss of $1.8 million, or ($0.03) per share for the three month period ended September 30, 2019 and net income of $2.2 million, or $0.04 per share, for the three month period ended December 31, 2018.  The net loss for the twelve month period ended December 31, 2019 was $3.5 million, or ($0.06) per share, compared to net income of $8.6 million, or $0.15 per share, for the twelve months ended December 31, 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 $1.6 million, or 6%, to $26.9 million for the quarter ended December 31, 2019 compared to $25.3 million for the quarter ended December 31, 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 $1.7 million, or 31%, to $7.0 million for the quarter ended December 31, 2019 compared to $5.3 million for the quarter ended December 31, 2018. The increase in interest expense was driven by growth in short term interest rates 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 three reductions in the fed funds rate during the third and fourth quarters of 2019. The total cost of funds declined to 0.95% during the fourth quarter of 2019 compared to 1.02% during the third quarter of 2019. However, the net interest margin for the three month period ended December 31, 2019 decreased by 43 basis points to 2.67% compared to 3.10% for the three month period ended December 31, 2018.

Non-interest income increased by $325 thousand, or 7%, to $5.2 million for the three month period ended December 31, 2019, compared to $4.9 million for the three month period ended December 31, 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.

Non-interest expenses increased by 25%, to $27.5 million during the quarter ended December 31, 2019 compared to $22.1 million during the quarter ended December 31, 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. We opened our first two stores in New York City during 2019 and 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 $1.0 million for the three month period ended December 31, 2019 compared to a provision for income taxes in the amount of $54 thousand for the three month period ended December 31, 2018.

Balance Sheet

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

      
 

Description
 

12/31/19
 

12/31/18
% Change 

09/30/19
% Change
      
Total assets$3,341,290$2,753,297  21%$3,085,9218%
Total loans (net) 1,738,929 1,427,98322% 1,560,91311%
Total deposits 2,999,163 2,392,86725% 2,740,0329%
           

Total assets increased by $588 million, or 21%, as of December 31, 2019 when compared to December 31, 2018.  Deposits grew by $606 million to $3.0 billion as of December 31, 2019 compared to $2.4 billion as of December 31, 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 our 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
 

 

12/31/19
 

 

12/31/18
 

%
Change
 

 

09/30/19
 

%
Change
4th Qtr
2019
Cost of
Funds
       
Demand noninterest-bearing$661,431 $519,056   27%$595,869   11%0.00%
Demand interest-bearing 1,352,360 1,042,561 30% 1,227,969   10%1.13%
Money market and savings 761,793 676,993  13% 698,991   9%1.01%
Certificates of deposit 223,579 154,257 45% 217,203 3%2.22%
Total deposits$2,999,163$2,392,867 25%$2,740,032   9%0.94%
       
       

Deposits increased to $3.0 billion at December 31, 2019 compared to $2.4 billion at December 31, 2018 as the we move forward with our growth strategy to increase the number of stores and expand the reach of our banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. We recognized strong growth in demand deposit balances, money market and savings, and certificates of deposit, year over year as a result of the successful execution of our strategy.

Lending

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

       
 

Description
 

12/31/19
% of
Total
 

12/31/18
% of
Total
 

09/30/19
% of
Total
       
Commercial and industrial$ 223,90613%$ 200,42314%$ 187,837 12%
Owner occupied real estate 424,40024% 367,89526% 397,84326%
Commercial real estate 613,63135% 515,73836% 570,32736%
Construction and land development 121,3957% 121,0428% 109,5827%
Residential mortgage 263,44415% 140,36410% 205,49813%
Consumer and other 101,4196% 91,1366% 98,2936%
Gross loans$1,748,195100%$1,436,598100%$1,569,380100%
       
       

Gross loans increased by $312 million, or 22%, to $1.7 billion at December 31, 2019 compared to $1.4 billion at December 31, 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. We experienced strongest growth in commercial real estate, owner occupied real estate and residential mortgage loans year over year.

Asset Quality

Asset quality ratios are highlighted below:

  
  Three Months Ended
 12/31/1909/30/1912/31/18
    
Non-performing assets / capital and reserves5%7%7%
Non-performing assets / total assets0.42%0.61%0.60%
Quarterly net loan charge-offs / average loans0.09%0.01%0.02%
Allowance for loan losses / gross loans0.53%0.54%0.60%
Allowance for loan losses / non-performing loans75%70%  83%
       

The percentage of non-performing assets to total assets decreased to 0.42% at December 31, 2019, compared to 0.60% at December 31, 2018.  The ratio of non-performing assets to capital and reserves decreased to 5% at December 31, 2019 compared to 7% at December 31, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at December 31, 2019 were as follows:

    
 Actual
12/31/19
Bancorp
Actual
12/31/19
Bank
Regulatory
Guidelines

“Well Capitalized”
    
Leverage Ratio  7.83%  7.54%5.00%
Common Equity Ratio  11.41%  11.50%6.50%
Tier 1 Risk Based Capital  11.93%  11.50%8.00%
Total Risk Based Capital  12.37%  11.94%10.00%
Tangible Common Equity  7.32%  7.22%n/a 
      

Total shareholders’ equity increased to $249 million at December 31, 2019 compared to $245 million at December 31, 2018. Book value per common share increased to $4.23 at December 31, 2019 compared to $4.17 per share at December 31, 2018.

Analyst and Investor Call

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

  
  
Date: January 28, 2020
Time:10:00am (EDT)
From the U.S. dial:     (888) 517-2513 [Toll Free] or (847) 619-6533
Participant Pin: 6827559#
  
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 thirty 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 some of 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)        
           
      December 31, September 30,December 31,
(dollars in thousands, except per share amounts) 2019   2019   2018 
           
ASSETS        
 Cash and due from banks $41,928  $57,562  $35,685 
 Interest-bearing deposits and federal funds sold 126,391   143,915   36,788 
  Total cash and cash equivalents 168,319   201,477   72,473 
           
 Securities - Available for sale  539,042   379,962   321,014 
 Securities - Held to maturity  644,842   687,425   761,563 
 Restricted stock   2,746   2,371   5,754 
  Total investment securities  1,186,630   1,069,758   1,088,331 
           
 Loans held for sale   13,349   21,210   26,291 
           
 Loans receivable   1,748,195   1,569,380   1,436,598 
 Allowance for loan losses  (9,266)  (8,467)  (8,615)
  Net loans    1,738,929   1,560,913   1,427,983 
           
 Premises and equipment  116,956   111,573   87,661 
 Other real estate owned  1,730   6,653   6,223 
 Other assets   115,377   114,337   44,335 
           
 Total Assets  $3,341,290  $3,085,921  $2,753,297 
           
           
           
LIABILITIES        
 Non-interest bearing deposits $661,431  $595,869  $519,056 
 Interest bearing deposits  2,337,732   2,144,163   1,873,811 
  Total deposits   2,999,163   2,740,032   2,392,867 
           
 Short-term borrowings   -   -   91,422 
 Subordinated debt   11,265   11,263   11,259 
 Other liabilities   81,694   83,783   12,560 
           
 Total Liabilities   3,092,122   2,835,078   2,508,108 
           
SHAREHOLDERS' EQUITY      
 Common stock - $0.01 par value  594   594   593 
 Additional paid-in capital  272,039   271,412   269,147 
 Accumulated deficit   (12,216)  (9,731)  (8,716)
 Treasury stock at cost   (3,725)  (3,725)  (3,725)
 Stock held by deferred compensation plan (183)  (183)  (183)
 Accumulated other comprehensive loss (7,341)  (7,524)  (11,927)
           
 Total Shareholders' Equity  249,168   250,843   245,189 
           
           
 Total Liabilities and Shareholders' Equity$3,341,290  $3,085,921  $2,753,297 
           



Republic First Bancorp, Inc.          
Consolidated Statements of Income         
(Unaudited)            
               
      Three Months Ended Twelve Months Ended
      December 31, September 30,December 31, December 31, December 31,
(in thousands, except per share amounts) 2019   2019   2018   2019   2018 
               
INTEREST INCOME           
 Interest and fees on loans $19,421  $18,707  $17,555  $74,497  $64,045 
 Interest and dividends on investment securities 6,531   6,724   7,279   27,796   27,182 
 Interest on other interest earning assets 940   777   459   2,571   847 
 Total interest income   26,892   26,208   25,293   104,864   92,074 
               
INTEREST EXPENSE           
 Interest on deposits   6,869   6,689   5,103   26,267   14,432 
 Interest on borrowed funds  109   137   210   790   1,738 
 Total interest expense   6,978   6,826   5,313   27,057   16,170 
               
 Net interest income   19,914   19,382   19,980   77,807   75,904 
 Provision for loan losses  1,155   450   600   1,905   2,300 
               
 Net interest income after provision for loan losses 18,759   18,932   19,380   75,902   73,604 
               
NON-INTEREST INCOME          
 Service fees on deposit accounts  2,091   1,990   1,589   7,541   5,476 
 Mortgage banking income  2,077   2,797   2,285   10,125   10,233 
 Gain on sale of SBA loans  594   944   451   3,187   3,105 
 Gain (loss) on sale of investment securities -   520   (66)  1,103   (67)
 Other non-interest income  451   303   629   1,782   1,575 
 Total non-interest income   5,213   6,554   4,888   23,738   20,322 
               
NON-INTEREST EXPENSE          
 Salaries and employee benefits  13,510   14,314   11,351   53,888   44,082 
 Occupancy and equipment  5,077   4,734   3,410   18,047   13,493 
 Legal and professional fees  1,036   1,123   642   3,924   3,033 
 Foreclosed real estate   456   799   707   2,109   1,588 
 Regulatory assessments and related fees 324   62   417   1,228   1,675 
 Other operating expenses  7,085   6,792   5,530   25,294   19,850 
 Total non-interest expense   27,488   27,824   22,057   104,490   83,721 
               
Income (loss) before provision (benefit) for income taxes (3,516)  (2,338)  2,211   (4,850)  10,205 
               
Provision (benefit) for income taxes  (1,031)  (516)  54   (1,350)  1,578 
               
Net income (loss)  $(2,485) $(1,822) $2,157  $(3,500) $8,627 
               
               
Net Income (Loss) per Common Share         
 Basic   $(0.04) $(0.03) $0.04  $(0.06) $0.15 
 Diluted   $(0.04) $(0.03) $0.04  $(0.06) $0.15 
               
Average Common Shares Outstanding         
 Basic    58,843   58,843   58,789   58,833   58,358 
 Diluted    58,843   58,843   59,672   58,833   59,407 
               



Republic First Bancorp, Inc.                 
Average Balances and Net Interest Income              
(unaudited)                  
                   
                   
                   
  For the three months ended For the three months ended For the three months ended
(dollars in thousands) December 31, 2019 September 30, 2019 December 31, 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 $228,292 $940 1.63% $146,446 $777 2.10% $80,416 $459 2.26%
Securities  1,090,736  6,539 2.40%  1,055,154  6,743 2.56%  1,068,065  7,315 2.74%
Loans receivable  1,658,917  19,538 4.67%  1,540,834  18,816 4.84%  1,427,260  17,660 4.91%
Total interest-earning assets 2,977,945  27,017 3.60%  2,742,434  26,336 3.81%  2,575,741  25,434 3.92%
                   
Other assets  261,875      247,682      134,411    
                   
Total assets $3,239,820     $2,990,116     $2,710,152    
                   
Interest-bearing liabilities:                  
                   
Demand non interest-bearing$619,075     $563,691     $528,568    
Demand interest-bearing  1,309,205  3,725 1.13%  1,168,404  3,752 1.27%  1,073,140  3,192 1.18%
Money market & savings  745,707  1,902 1.01%  702,547  1,814 1.02%  702,322  1,444 0.82%
Time deposits  222,116  1,242 2.22%  208,624  1,123 2.14%  133,675  467 1.39%
Total deposits  2,896,103  6,869 0.94%  2,643,266  6,689 1.00%  2,437,705  5,103 0.83%
                   
Total interest-bearing deposits 2,277,028  6,869 1.20%  2,079,575  6,689 1.28%  1,909,137  5,103 1.06%
                   
Other borrowings  11,264  109 3.84%  14,037  137 3.87%  24,354  210 3.42%
                   
                   
Total interest-bearing liabilities  2,288,292  6,978 1.21%  2,093,612  6,826 1.29%  1,933,491  5,313 1.09%
Total deposits and                  
  other borrowings  2,907,367  6,978 0.95%  2,657,303  6,826 1.02%  2,462,059  5,313 0.86%
                   
                   
Non interest-bearing liabilities 82,515      81,872      9,690    
Shareholders' equity  249,938      250,941      238,403    
Total liabilities and                  
shareholders' equity $3,239,820     $2,990,116     $2,710,152    
                   
Net interest income   $20,039     $19,510     $20,121  
Net interest spread     2.39%     2.52%     2.83%
                   
Net interest margin     2.67%     2.82%     3.10%
                   
                   
                   
Note: The above tables are presented on a tax equivalent basis.            



            
Republic First Bancorp, Inc.           
Average Balances and Net Interest Income          
(unaudited)            
             
             
             
  For the twelve months ended For the twelve months ended
(dollars in thousands) December 31, 2019 December 31, 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 $129,528 $2,571 1.98% $40,931 $847 2.07%
Securities  1,074,706  27,886 2.59%  1,037,810  27,316 2.63%
Loans receivable  1,544,904  74,946 4.85%  1,340,117  64,455 4.81%
Total interest-earning assets 2,749,138  105,403 3.83%  2,418,858  92,618 3.83%
             
Other assets  229,767      131,369    
             
Total assets $2,978,905     $2,550,227    
             
Interest-bearing liabilities:            
             
Demand non interest-bearing$555,385     $488,995    
Demand interest-bearing  1,184,530  15,621 1.32%  918,508  7,946 0.87%
Money market & savings  705,445  6,796 0.96%  697,135  4,898 0.70%
Time deposits  190,567  3,850 2.02%  128,892  1,588 1.23%
Total deposits  2,635,927  26,267 1.00%  2,233,530  14,432 0.65%
             
Total interest-bearing deposits 2,080,542  26,267 1.26%  1,744,535  14,432 0.83%
             
Other borrowings  22,911  790 3.45%  73,573  1,738 2.36%
             
             
Total interest-bearing liabilities 2,103,453  27,057 1.29%  1,818,108  16,170 0.89%
Total deposits and            
  other borrowings  2,658,838  27,057 1.02%  2,307,103  16,170 0.70%
             
             
Non interest-bearing liabilities 71,131      9,431    
Shareholders' equity  248,936      233,693    
Total liabilities and            
shareholders' equity $2,978,905     $2,550,227    
             
Net interest income   $78,346     $76,448  
Net interest spread     2.54%     2.94%
             
Net interest margin     2.85%     3.16%
             
             
             
Note: The above tables are presented on a tax equivalent basis.        



          
Republic First Bancorp, Inc.         
Summary of Allowance for Loan Losses and Other Related Data      
(unaudited)         
          
          
  Three months ended  Twelve months ended
 December 31, September 30,December 31, December 31, December 31,
(dollars in thousands) 2019   2019   2018   2019   2018 
          
          
Balance at beginning of period$8,467  $8,056  $8,084  $8,615  $8,599 
          
Provision charged to operating expense 1,155   450   600   1,905   2,300 
  9,622   8,506   8,684   10,520   10,899 
          
Recoveries on loans charged-off:         
  Commercial 5   59   5   219   152 
  Consumer 2   3   -   9   2 
Total recoveries 7   62   5   228   154 
          
Loans charged-off:         
  Commercial (354)  (72)  (68)  (1,356)  (2,219)
  Consumer (9)  (29)  (6)  (126)  (219)
          
Total charged-off (363)  (101)  (74)  (1,482)  (2,438)
          
Net charge-offs (356)  (39)  (69)  (1,254)  (2,284)
          
Balance at end of period$9,266  $8,467  $8,615  $9,266  $8,615 
          
          
Net charge-offs as a percentage of         
  average loans outstanding 0.09%  0.01%  0.02%  0.08%  0.17%
          
Allowance for loan losses as a percentage         
  of period-end loans 0.53%  0.54%  0.60%  0.53%  0.60%



          
Republic First Bancorp, Inc.         
Summary of Non-Performing Loans and Assets        
(unaudited)         
          
 December 31,September 30,June 30, March 31, December 31,
(dollars in thousands) 2019   2019   2019   2019   2018 
          
Non-accrual loans:         
  Commercial real estate$10,569  $10,180  $7,545  $8,096  $9,463 
  Consumer and other 1,844   1,743   1,777   836   878 
Total non-accrual loans 12,413   11,923   9,322   8,932   10,341 
          
Loans past due 90 days or more         
  and still accruing -   129   -   1,744   - 
          
Total non-performing loans 12,413   12,052   9,322   10,676   10,341 
          
Other real estate owned 1,730   6,653   6,406   6,088   6,223 
          
Total non-performing assets$14,143  $18,705  $15,728  $16,764  $16,564 
          
          
Non-performing loans to total loans 0.71%  0.77%  0.62%  0.72%  0.72%
          
Non-performing assets to total assets 0.42%  0.61%  0.53%  0.60%  0.60%
          
Non-performing loan coverage 74.65%  70.25%  86.42%  74.00%  83.31%
          
Allowance for loan losses as a percentage         
  of total period-end loans 0.53%  0.54%  0.53%  0.53%  0.60%
          
Non-performing assets / capital plus         
  allowance for loan losses 5.47%  7.21%  6.06%  6.54%  6.53%

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Source: Republic First Bancorp, Inc.