Press Release

Republic First Bancorp, Inc. Reports Second Quarter Financial Results; Named America’s #1 Bank for Service by Forbes Magazine

Company Release - 7/27/2020 8:30 AM ET

PHILADELPHIA, July 27, 2020 (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, 2020.

Q2-2020 Financial Highlights

  • During the second quarter of 2020 Republic Bank was named as America’s # 1 Bank for Service in a recent national Forbes survey to identify which financial institutions have the most satisfied customers.
     
  • We originated $682 million in loans under the Paycheck Protection Program (PPP) administered by the SBA providing crucial funding for small business throughout our footprint. Gross origination fees of $22 million were earned through this program which will be recognized as income over the life of the loans.
     
  • Profitability improved as the Company reported net income of $2.5 million, or $0.04 per share, during the second quarter of 2020 compared to a net loss of $0.6 million, or ($0.01) per share during the first quarter of 2020.
     
  • Pre-tax pre-provision earnings (PTPP) increased to $4.2 million during the second quarter of 2020 compared to $27 thousand in the first quarter of 2020 and $0.5 million in the second quarter of 2019.
     
  • On a linked quarter basis, total revenue increased 13% during the second quarter of 2020 while non-interest expense decreased by 2% compared to the first quarter of 2020. Year over year total revenue increased 17% and non-interest expense increased 3% during the quarter ended June 30, 2020 compared to the quarter ended June 30, 2019.
     
  • Asset quality continues to improve as the ratio of non-performing assets to total assets declined to 0.31% as of June 30, 2020. Only 2% of our loan customers were deferring loan payments as of July 24, 2020. These deferrals relate to approximately 7% of outstanding loan balances excluding PPP loans.
     
  • Total loans grew $1.0 billion, or 69%, to $2.5 billion as of June 30, 2020 compared to $1.5 billion at June 30, 2019. Excluding the impact of the PPP loan program loans grew $380 million, or 25%, year over year.
     
  • Total deposits increased by $1.1 billion, or 44%, to $3.6 billion as of June 30, 2020 compared to $2.5 billion as of June 30, 2019. Excluding the impact of the PPP loan program deposits grew $716 million, or 28%, year over year.

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

“In the second quarter ‘The Power of Red is Back’ expansion campaign continued to deliver exceptional service during these unprecedented times. Our stores remained operational throughout the quarter serving customers in any way possible in a safe and efficient manner. Through our participation in the PPP loan program authorized by the CARES Act we were able assist thousands of small businesses by providing critical access to funding to support operations in the midst of an economic shutdown.”

“In recognition of our unwavering commitment to extraordinary customer service and convenience our FANS responded to a recent Forbes survey and Republic was ranked as America’s #1 Bank for Service. The goal of our model is to create FANS NOT CUSTOMERS, who join our brand, remain loyal and refer family and friends.  The results of the Forbes survey not only demonstrates the success of our model, but also shows that we deliver on our commitment to service better that every other bank in the country.”

Republic will launch its new brand campaign as America’s #1 Bank for Service during the third quarter of 2020.

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

“Net income during 2019 was negatively impacted by the challenging nature of the interest rate environment and costs required to initiate our expansion into New York City. During the second quarter of 2020 we returned to profitability through the dedication and commitment of every member of the Republic Bank Team to improve earnings. We have consistently stated that it is our goal to deliver best in class service across all delivery channels…..in-store, by phone, online and mobile options....as we strive to create new FANS each and every day. We are focused on meeting that goal in the most efficient manner possible.”

Paycheck Protection Program

During the second quarter the Republic Bank Team turned its attention to the needs of small businesses in our community. The Paycheck Protection Program included in the CARES Act authorized financial institutions to make loans to companies that have been impacted by the devastating economic effects of the coronavirus (COVID-19) pandemic. We responded by quickly developing a process to accept applications for the program not only from our valued small business customers, but from non-customers throughout the community as well.

PPP Loan Program Highlights

Republic Bank recognized the SBA PPP Loan Program as an opportunity to help existing and new small business customers actively participated in the program by accepting applications.

As of June 30, 2020 Republic has:

  • Originated $682 million in PPP loans
     
  • Related to more than 4,800 PPP loan applications
     
  • More than 50% of the applications received were from small businesses that were not existing customers of Republic Bank, many of which have already switched their primary banking relationship to Republic Bank
     
  • The average loan size of all PPP loans approved was $140 thousand
     
  • Gross origination fees of $22 million were earned by Republic which will be recognized as income over the life of the loans
     
  • Funding for this program was provided through the Federal Reserve PPP Lending Facility, which has resulted in exclusion of the PPP asset balances from the leverage ratio calculation.

As a percentage of existing loan balances outstanding as of March 31, 2020, the $682 million in PPP loans originated by Republic amounted to 36% making us one of the top PPP lenders in the entire country.

Loss Mitigation and Loan Portfolio Analysis

Management has taken a proactive approach to analyze and prepare for the potential challenges to be faced as the effects of the economic shutdown begin to unfold. A detailed analysis of loan concentrations and segments that may represent the areas of highest risk has been prepared. Our commercial lending team has initiated contact with many of our loan customers to discuss the impact that the pandemic has had on their businesses to date and the expected ramifications that may be felt in the future. We have granted payment deferrals for customers that made a request and had an immediate need for assistance.

Management believes exposure in the loan portfolio to the high risk industries most impacted by the current economic conditions is limited. Loans to customers in the accommodations and food services industry (i.e. hotels and restaurants) amount to 7% of the total loans outstanding as of June 30, 2020. Loans to customers involved in the oil and gas industry (refineries) are less than 1% of outstanding loans and credit card receivables are also less than 1% of total loans as of June 30, 2020.

We believe the combination of ongoing communication with our customers, loan payment deferrals, increased focus on risk management practices, and access to government programs such as the PPP Loan Program should help mitigate potential future period losses.

The following table summarizes the number of loan customers that have been granted payment deferrals along with the related loan outstanding balances through the period ended June 30, 2020:

($ in millions)# of Loan
Accounts
 % of
Total Accts
 Loan
Balances
 % of Total
Loan
Balances*
        
Deferral of Principal Only251 5% $270 14%
Deferral of Principal and Interest192 4%  145 8%
Total Deferrals443 9% $415 22%
        
Total Deferrals (as of July 24, 2020)103 2% $124   7%
         

*Note: PPP loans excluded from total loans when calculating % of total loan balances

As of the date of this release more than 75% of the customers that were granted approval for deferral of loan payments have resumed normal principal and interest payments on their outstanding loan balances in the early stages of the third quarter of 2020. During the month of July 2020, the number of customers that have continued with the deferral of loan payments has declined to 103, or 2% of the total loan customers and the related outstanding loan balances have reduced to $124 million, or 7% of the total loan balances outstanding.

Asset Quality

The Company’s asset quality ratios are highlighted below:

  Three Months Ended
 06/30/2003/31/2006/30/19
    
Non-performing assets / capital and reserves5%6%6%
Non-performing assets / total assets0.31%0.46%0.53%
Quarterly net loan charge-offs / average loans0.03%0.00%(0.04%)
Allowance for loan losses / gross loans0.43%0.54%0.53%
Allowance for loan losses / non-performing loans87%72%86%

The percentage of non-performing assets to total assets decreased to 0.31% at June 30, 2020, compared to 0.53% at June 30, 2019.  The ratio of non-performing assets to capital and reserves decreased to 5% at June 30, 2020 compared to 6% at June 30, 2019 primarily as a result of decreases in non-performing assets over the last 12 months.

Quarterly Trend

Profitability in previous quarters was impacted by the inversion of the yield curve and the Company’s strategic decision to enter a new market during 2019. The Company continues to focus on improvement of its operating leverage. The following table highlights changes to some of the key financial metrics that demonstrate this progress:

    
 QTD QTD QTD QTD QTD
 06/30/19 09/30/19 12/31/19 03/31/20 06/30/20
Pre-Tax Pre-Provision Earnings (PTPP)$0.5  $(1.9) $(2.4) $-  $4.2 
          
% Change in Revenue Qtr-Qtr 10%  (2%)  (3%)  9%  13%
% Change in Expense Qtr-Qtr 11%  7%  (1%)  (1%)  (2%)
          

Financial Summary for the Period Ended June 30, 2020

The changes in the balance sheet as of June 30, 2020 were significantly impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, demand deposits and short-term borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit applications for forgiveness to the SBA in the coming months. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended June 30, 2020 can be found in the following table:

            
    Excluding         
  Actual   PPP
Program 
  Actual   YOY Growth   YOY Growth 
($ amounts in millions)6/30/2020 6/30/2020 6/30/2019  (Including PPP)   (Excluding PPP) 
            
Cash and Cash  Equivalents$691 $506 $130 $561432% $376289%
Investment Securities942 942 1,062 (120)(11%) (120)(11%)
Loans Held for Sale26 26 23 313% 313%
Loans Receivable2,542 1,889 1,509 1,03369% 38025%
Allowance for Loan Losses(11) (11) (8) (3)38% (3)38%
Net Loans2,531 1,878 1,501 1,03069% 37725%
            
Premises and Equipment121 121 105 1615% 1615%
Other Assets123 123 120 33% 33%
Total Assets$  4,434   $  3,596 $2,941 $1,49351% $65522%
Non-interest Bearing Deposits$1,096 $696 $544 $552101% $15228%
Interest Bearing Deposits2,548 2,548 1,984 56428% 56428%
Total Deposits3,644 3,244 2,528 1,11644% 71628%
            
Short-term Borrowings438 - 69 369535% (69)(100%)
Subordinated Debt11 11 11 -0% -0%
Other Liabilities86 86 82 45% 45%
Total Liabilities4,179 3,341 2,690 1,48955% 65124%
            
Common Stock and APIC273 273 271 21% 21%
Accumulated Deficit(10) (10) (8) (2)25% (2)25%
Treasury Stock/Def Comp Plan(4) (4) (4) -0% -0%
Acc Comp Other Inc(4) (4) (8) 4(50%) 4(50%)
Total Shareholders' Equity255 255 251 42% 42%
Total Liabilities & Shareholders' Equity$4,434 $3,596 $2,941 $1,49351% $65522%
            
            

A summary of the income statement for the period ended June 30, 2020 can be found in the following table:

            
 Three Months Ended Six Months Ended
 06/30/20 06/30/19 Change 06/30/20 06/30/19 Change
Total Revenue$36.3  $33.3  9% $70.1  $63.7  10%
Net Income 2.5   0.4  559%  1.9   0.8  138%
Net Income per share$0.04  $0.01  300% $0.03  $0.01  200%
Net Interest Margin 2.55%  2.94%    2.64%  2.97%  
            
  • Total assets increased by $1.5 billion, or 51%, to $4.4 billion as of June 30, 2020 compared to $2.9 billion as of June 30, 2019. Excluding the impact of the PPP loan program total assets increased by $655 million, or 22%, as during the twelve month period ended June 30, 2020.
     
  • We have thirty convenient store locations open today. During the first quarter of 2020 we opened a new store in Northfield, NJ. Construction is ongoing on a site in Bensalem, PA. There are also multiple sites in various stages of development for future store locations.
     
  • Profitability improved quarter to quarter as we reported net income of $2.5 million, or $0.04 per share, for the three months ended June 30, 2020 compared to a net loss of $0.6 million, or $(0.01) per share for the three months ended March 31, 2020.  We reported net income of $0.4 million, or $0.01 per share, for the three months ended June 30, 2019.
     
  • The net interest margin decreased by 21 basis points to 2.55% for the three months ended June 30, 2020 compared to 2.76% for the three months ended March 31, 2020. The decline in the margin was driven by the impact of the PPP loan program that were added to the balance sheet during the second quarter, along with the lower interest rate environment as a result of rate reductions by the Federal Reserve Bank. Excluding the impact of the PPP loan program the net interest margin would have been 2.70% for the three months ended June 30, 2020.
     
  • During the first quarter we entered into a branding agreement with Visa to convert all ATM and debit cards to Visa cards which will provide a number of opportunities to enhance revenue growth in the coming years. In the second quarter we entered into another agreement with Visa to handle the processing of all ATM and debit card transactions. This agreement is expected to reduce the cost associated with the processing of these transactions.
     
  • The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Loan production during the first half of 2020 was strong despite the impact of the CODID-19 pandemic and the pipeline for the second half of the year looks equally as promising. The Oak Mortgage team has originated more than $500 million in mortgage loans over the last twelve months.
     
  • The Company’s Total Risk-Based Capital ratio was 12.00% and Tier I Leverage Ratio was 7.58% at June 30, 2020.
     
  • Book value per common share increased to $4.34 as of June 30, 2020 compared to $4.27 as of June 30, 2019.

Income Statement

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

 Three Months Ended
 06/30/20 03/31/20 % Change 06/30/19 % Change
Net Interest Income$22,427 $20,754  8% $19,371 16%
Non-interest Income 8,424  6,545  29%  7,026 20%
Total Revenue 30,851  27,299  13%  26,397 17%
Provision for Loan Losses 1,000  950  5%  - - 
Non-interest Expense 26,664  27,272  (2%)  25,911 3%
Income (Loss) Before Taxes 3,187  (923) 445%  486 556%
Provision (Benefit) for Taxes 675  (330) 305%  105 543%
Net Income (Loss) 2,512  (593) 524%  381 559%
          
Net Income (Loss) per Share$0.04 $(0.01) 500% $0.01 300%



 Six Months Ended 
 06/30/20 06/30/19 % Change
Net Interest Income$43,181 $38,511 12%
Non-interest Income 14,969  11,971 25%
Total Revenue 58,150  50,482 15%
Provision for Loan Losses 1,950  300 550%
Non-interest Expense 53,936  49,178 10%
Income Before Taxes 2,264  1,004 125%
Provision for Taxes 345  197 75%
Net Income 1,919  807 138%
Net Income per Share$0.03 $0.01 200%

The Company reported net income of $2.5 million, or $0.04 per share, for the three month period ended June 30, 2020, compared to net income of $381 thousand, or $0.01 per share, for the three month period ended June 30, 2019. 

Interest income increased by $1.6 million, or 6%, to $27.9 million for the quarter ended June 30, 2020 compared to $26.2 million for the quarter ended June 30, 2019. 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. We have also begun to amortize the fees associated with the origination of PPP loans during the second quarter which is reported as interest income. $1.5 million in PPP fees were recorded as income during the quarter ended June 30, 2020 with the remaining balance to be recognized over the life of the loans.

Interest expense decreased by $1.4 million, or 21%, to $5.4 million for the quarter ended June 30, 2020 compared to $6.9 million for the quarter ended June 30, 2019. The decrease in interest expense was primarily driven by a reduction in the cost of deposits as a result of the decrease in the Fed Funds rate during the latter part of the first quarter.

The net interest margin for the three month period ended June 30, 2020 decreased by 39 basis points to 2.55% compared to 2.94% for the three month period ended June 30, 2019. We experienced margin compression throughout 2019 as a result of the flattening of the yield curve. The interest rate on the loans originated under the PPP loan program is 1.00% which caused a decline in the yield on interest earning assets in the second quarter of 2020. In addition, the rate cuts enacted by the Federal Reserve Bank during the first quarter of 2020 has created a lower interest rate environment. The net interest margin excluding the impact of the PPP loan program would have been 2.70%.

Non-interest income increased by $1.4 million, or 20%, to $8.4 million for the three month period ended June 30, 2020, compared to $7.0 million for the three month period ended June 30, 2019. The increase is attributable to gains on the sale of investment securities, higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts, and mortgage banking income driven by mortgage loan originations, partially offset by a decrease in gains on the sale of SBA loans.

Non-interest expense increased by 3%, to $26.7 million during the quarter ended June 30, 2020 compared to $25.9 million during the quarter ended June 30, 2019. The growth in expenses were mainly caused by an increase in occupancy and equipment expenses associated with our growth strategy. Cost control initiatives identified by management have begun to take effect as non-interest expense declined for the third consecutive quarter.

On a linked quarter basis, total revenue increased by 13% during the second quarter of 2020 while non-interest expense declined by 2%. Year over year total revenue increased by 17% and non-interest expense increased by 3% during the second quarter of 2020 compared to the second quarter of 2019.

Deposits

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

 

 

Description
 

 

06/30/20
  

 

06/30/19
 

%
Change
  

 

03/31/20
 

%
Change
        
Demand noninterest-bearing$1,095,782 $544,406101% $676,48262%
Demand interest-bearing 1,435,198  1,072,41534%  1,276,81612%
Money market and savings 902,528  719,07526%  768,55017%
Certificates of deposit 210,446  192,08110%  222,631(5%)
Total deposits$3,643,954 $2,527,97744% $2,944,47924%
        

Deposits increased to $3.6 billion at June 30, 2020 compared to $2.5 billion at June 30, 2019. This increase is partially attributed to 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, including an increase in non-interest bearing demand deposits of 101%, year over year as a result of the successful execution of our strategy. The increase in demand deposits during the second quarter is also a result of our participation in the PPP loan program.  When these loans were closed the funds were deposited into Republic Bank checking accounts. These deposits are expected to decline as the borrowers spend the funds on qualified expenses under the program.

Lending

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

 

Description
 

06/30/20
%
of Total
 

06/30/19
% of Total 

03/31/20
% of
Total
       
Commercial and industrial$224,5049%$189,63213%$241,75413%
Owner occupied real estate 434,42217% 381,85225% 436,49923%
Commercial real estate 664,60526% 553,64437% 668,46236%
Construction and land develop 150,1576% 111,4747% 144,2158%
Residential mortgage 313,28712% 173,96312% 287,42515%
Paycheck protection program (net) 653,59326% --% --%
Consumer and other 101,6804% 98,1556% 103,6825%
Gross loans$2,542,248100%$1,508,720100%$1,882,037100%
       

Gross loans increased by $1.0 billion, or 69%, to $2.5 billion at June 30, 2020 compared to $1.5 billion at June 30, 2019 primarily related to PPP loan originations in the current quarter. In addition, we continue to see results from the continued success with the relationship banking model which has driven a steady flow in quality loan demand over the last twelve months. Excluding the addition of the PPP loans during the second quarter of 2020, loans still grew $380 million, or 25%, when compared to the balance as of June 30, 2019. We experienced strong growth across all loan categories.

Capital

The Company’s capital ratios at June 30, 2020 were as follows:

 Actual
06/30/20
Bancorp
Actual
06/30/20
Bank
Regulatory
Guidelines

“Well Capitalized”
    
Leverage Ratio7.58%7.29%5.00%
Common Equity Ratio11.01%11.08%6.50%
Tier 1 Risk Based Capital11.51%11.08%8.00%
Total Risk Based Capital12.00%11.57%10.00%
Tangible Common Equity5.65%5.58%n/a

Total shareholders’ equity increased to $255 million at June 30, 2020 compared to $251 million at June 30, 2019. Book value per common share increased to $4.34 at June 30, 2020 compared to $4.27 per share at June 30, 2019.

Analyst and Investor Call

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

  
Date:July 27, 2020
Time:11:00am (EST)
From the U.S. dial:(800) 774-6070 [US Toll Free] or
 (630) 691-2753 [US Toll]
Participant Pin:7859 277#
  
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 Greater Philadelphia, Southern New Jersey and New York City.  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; the effects of health emergencies, including the spread of infectious diseases and pandemics; 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, 2019, the Form 10-Q for the quarter ended March 31, 2020 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) 2020   2020   2019  
         
ASSETS      
 Cash and due from banks$36,786  $32,581  $38,770  
 Interest-bearing deposits and federal funds sold 654,458   23,936   90,744  
  Total cash and cash equivalents 691,244   56,517   129,514  
         
 Securities - Available for sale 382,221   497,511   338,286  
 Securities - Held to maturity 556,159   611,914   718,534  
 Restricted stock 3,789   2,746   5,130  
  Total investment securities 942,169   1,112,171   1,061,950  
         
 Loans held for sale 26,126   16,820   23,412  
         
 Loans receivable 2,542,248   1,882,037   1,508,720  
 Allowance for loan losses (11,040)  (10,217)  (8,056) 
  Net loans 2,531,208   1,871,820   1,500,664  
         
 Premises and equipment 121,149   119,893   105,311  
 Other real estate owned 1,144   1,144   6,406  
 Other assets 121,603   122,051   113,729  
         
 Total Assets$4,434,643  $3,300,416  $2,940,986  
         
         
         
LIABILITIES      
 Non-interest bearing deposits$1,095,782  $676,482  $544,406  
 Interest bearing deposits 2,548,172   2,267,997   1,983,571  
  Total deposits 3,643,954   2,944,479   2,527,977  
         
 Short-term borrowings 438,478   -   68,979  
 Subordinated debt 11,268   11,267   11,262  
 Other liabilities 85,765   92,554   81,410  
         
 Total Liabilities 4,179,465   3,048,300   2,689,628  
         
SHAREHOLDERS' EQUITY      
 Common stock - $0.01 par value 594   594   594  
 Additional paid-in capital 273,118   272,639   270,789  
 Accumulated deficit (10,297)  (12,809)  (7,909) 
 Treasury stock at cost (3,725)  (3,725)  (3,725) 
 Stock held by deferred compensation plan (183)  (183)  (183) 
 Accumulated other comprehensive loss (4,329)  (4,400)  (8,208) 
         
 Total Shareholders' Equity 255,178   252,116   251,358  
         
         
 Total Liabilities and Shareholders' Equity$4,434,643  $3,300,416  $2,940,986  
         


           
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) 2020  2020   2019  2020  2019 
             
INTEREST INCOME          
 Interest and fees on loans$22,737 $20,173  $18,569 $42,910 $36,369 
 Interest and dividends on investment securities 5,072  6,821   7,158  11,893  14,541 
 Interest on other interest earning assets 50  289   518  339  854 
 Total interest income 27,859  27,283   26,245  55,142  51,764 
             
INTEREST EXPENSE          
 Interest on deposits 5,320  6,425   6,695  11,745  12,709 
 Interest on borrowed funds 112  104   179  216  544 
 Total interest expense 5,432  6,529   6,874  11,961  13,253 
             
 Net interest income 22,427  20,754   19,371  43,181  38,511 
 Provision for loan losses 1,000  950   -  1,950  300 
             
 Net interest income after provision for loan losses 21,427  19,804   19,371  41,231  38,211 
             
NON-INTEREST INCOME          
 Service fees on deposit accounts 2,328  2,064   1,848  4,392  3,460 
 Mortgage banking income 3,389  2,458   3,031  5,847  5,251 
 Gain on sale of SBA loans 269  649   1,147  918  1,649 
 Gain on sale of investment securities 1,640  841   261  2,481  583 
 Other non-interest income 798  533   739  1,331  1,028 
 Total non-interest income 8,424  6,545   7,026  14,969  11,971 
             
NON-INTEREST EXPENSE          
 Salaries and employee benefits 13,177  13,381   13,705  26,558  26,064 
 Occupancy and equipment 5,554  5,297   4,221  10,851  8,236 
 Legal and professional fees 1,009  930   1,058  1,939  1,765 
 Foreclosed real estate 75  282   517  357  854 
 Regulatory assessments and related fees 675  630   421  1,305  842 
 Other operating expenses 6,174  6,752   5,989  12,926  11,417 
 Total non-interest expense 26,664  27,272   25,911  53,936  49,178 
             
Income (loss) before provision (benefit) for income taxes 3,187  (923)  486  2,264  1,004 
             
Provision (benefit) for income taxes 675  (330)  105  345  197 
             
Net income (loss)$2,512 $(593) $381 $1,919 $807 
             
             
Net Income (Loss) per Common Share          
 Basic$0.04 $(0.01) $0.01 $0.03 $0.01 
 Diluted$0.04 $(0.01) $0.01 $0.03 $0.01 
             
Average Common Shares Outstanding          
 Basic 58,851  58,848   58,841  58,849  58,823 
 Diluted 58,883  58,848   59,401  58,911  59,501 
             


                  
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, 2020 March 31, 2020 June 30, 2019
                   
    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 $198,345 $50 0.10% $81,339 $289 1.43% $85,920 $518 2.42%
Securities  1,033,560  5,077 1.96%  1,156,504  6,826 2.36%  1,067,185  7,184 2.69%
Loans receivable  2,335,500  22,884 3.94%  1,808,382  20,319 4.52%  1,509,177  18,681 4.96%
Total interest-earning assets 3,567,405  28,011 3.16%  3,046,225  27,434 3.62%  2,662,282  26,383 3.97%
                   
Other assets  266,178      260,829      217,685    
                   
Total assets $3,833,583     $3,307,054     $2,879,967    
                   
Interest-bearing liabilities:                  
                   
Demand non interest-bearing$984,771     $644,601     $525,336    
Demand interest-bearing  1,397,790  2,856 0.82%  1,337,646  3,421 1.03%  1,144,783  4,206 1.47%
Money market & savings  858,782  1,431 0.67%  752,510  1,783 0.95%  697,279  1,628 0.94%
Time deposits  208,838  1,033 1.99%  226,185  1,221 2.17%  176,750  861 1.95%
Total deposits  3,450,181  5,320 0.62%  2,960,942  6,425 0.87%  2,544,148  6,695 1.06%
                   
Total interest-bearing deposits 2,465,410  5,320 0.87%  2,316,341  6,425 1.12%  2,018,812  6,695 1.33%
                   
Other borrowings  45,474  112 0.99%  11,952  104 3.50%  19,864  179 3.61%
                   
                   
Total interest-bearing liabilities  2,510,884  5,432 0.87%  2,328,293  6,529 1.13%  2,038,676  6,874 1.35%
Total deposits and                  
other borrowings  3,495,655  5,432 0.62%  2,972,894  6,529 0.88%  2,564,012  6,874 1.08%
                   
                   
Non interest-bearing liabilities 83,884      84,211      66,780    
Shareholders' equity  254,044      249,949      249,175    
Total liabilities and                  
shareholders' equity $3,833,583     $3,307,054     $2,879,967    
                   
Net interest income   $22,579     $20,905     $19,509  
Net interest spread     2.29%     2.49%     2.62%
                   
Net interest margin     2.55%     2.76%     2.94%
                   
                   
                   
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, 2020 June 30, 2019 
             
   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$139,842 $339 0.49% $70,729 $854 2.43% 
Securities 1,095,032  11,903 2.17%  1,076,496  14,604 2.71% 
Loans receivable 2,071,941  43,203 4.19%  1,489,020  36,592 4.96% 
Total interest-earning assets 3,306,815  55,445 3.37%  2,636,245  52,050 3.98% 
             
Other assets 263,504      204,344     
             
Total assets$3,570,319     $2,840,589     
             
Interest-bearing liabilities:            
             
Demand non interest-bearing$814,686     $518,790     
Demand interest-bearing 1,367,718  6,277 0.92%  1,129,356  8,144 1.45% 
Money market & savings 805,646  3,214 0.80%  686,453  3,080 0.90% 
Time deposits 217,512  2,254 2.08%  165,354  1,485 1.81% 
Total deposits 3,205,562  11,745 0.74%  2,499,953  12,709 1.03% 
             
Total interest-bearing deposits 2,390,876  11,745 0.99%  1,981,163  12,709 1.29% 
             
Other borrowings 28,713  216 1.51%  33,341  544 3.29% 
             
             
Total interest-bearing liabilities 2,419,589  11,961 0.99%  2,014,504  13,253 1.33% 
Total deposits and            
other borrowings 3,234,275  11,961 0.74%  2,533,294  13,253 1.05% 
             
             
Non interest-bearing liabilities 84,050      59,505     
Shareholders' equity 251,994      247,790     
Total liabilities and            
shareholders' equity$3,570,319     $2,840,589     
             
Net interest income  $43,484     $38,797   
Net interest spread    2.38%     2.65% 
             
Net interest margin    2.64%     2.97% 
             
             
             
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) 2020   2020   2019   2019   2020   2019 
            
            
Balance at beginning of period$10,217  $9,266  $7,900  $8,615  $9,266  $8,615 
            
Provision charged to operating expense 1,000   950   -   1,905   1,950   300 
  11,217   10,216   7,900   10,520   11,216   8,915 
            
Recoveries on loans charged-off:           
Commercial 14   17   154   219   31   155 
Consumer 1   6   3   9   7   4 
Total recoveries 15   23   157   228   38   159 
            
Loans charged-off:           
Commercial (149)  -   (1)  (1,356)  (149)  (930)
Consumer (43)  (22)  -   (126)  (65)  (88)
            
Total charged-off (192)  (22)  (1)  (1,482)  (214)  (1,018)
            
Net (charge-offs) recoveries (177)  1   156   (1,254)  (176)  (859)
            
Balance at end of period$11,040  $10,217  $8,056  $9,266  $11,040  $8,056 
            
            
Net (charge-offs) recoveries as a percentage of          
average loans outstanding 0.03%  (0.00%)  (0.04%)  0.08%  0.02%  0.12%
            
Allowance for loan losses as a percentage           
of period-end loans 0.43%  0.54%  0.53%  0.53%  0.43%  0.53%


 
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) 2020   2020   2019   2019   2019 
          
Non-accrual loans:         
Commercial real estate$10,747  $12,060  $10,569  $10,180  $7,545 
Consumer and other 1,970   2,125   1,844   1,743   1,777 
Total non-accrual loans 12,717   14,185   12,413   11,923   9,322 
          
Loans past due 90 days or more         
and still accruing -   -   -   129   - 
          
Total non-performing loans 12,717   14,185   12,413   12,052   9,322 
          
Other real estate owned 1,144   1,144   1,730   6,653   6,406 
          
Total non-performing assets$13,861  $15,329  $14,143  $18,705  $15,728 
          
          
Non-performing loans to total loans 0.50%  0.75%  0.71%  0.77%  0.62%
          
Non-performing assets to total assets 0.31%  0.46%  0.42%  0.61%  0.53%
          
Non-performing loan coverage 86.81%  72.03%  74.65%  70.25%  86.42%
          
Allowance for loan losses as a percentage         
of total period-end loans 0.43%  0.54%  0.53%  0.54%  0.43%
          
Non-performing assets / capital plus         
allowance for loan losses 5.21%  5.84%  5.47%  7.21%  6.05%

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Source: Republic First Bancorp, Inc.