Market Overview

Republic First Bancorp, Inc. Reports 80% Increase in Net Income and Deposit Growth of 23%

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PHILADELPHIA, Jan. 22, 2018 (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, 2017.

    Twelve Months Ended
($ in millions, except per share data)   12/31/17 12/31/16 % Change
         
Assets   $ 2,322.3 $   1,923.9   21 %
Loans        1,162.3      965.0           20 %
Deposits        2,063.3      1,677.7   23 %
Total Revenue   $   90.9 $    69.5             31 %
Net Income       8.9      4.9    80 %
Net Income per Diluted Share   $   0.15 $    0.12    25 %

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

"2017 was another tremendous year for ‘The Power of Red is Back' growth campaign. Deposits and loans continued to grow at exceptional rates. Our store network expanded to twenty-three convenient locations and we solidified our position as one of the top residential mortgage lenders in our market through the successful integration of the Oak Mortgage team. I am excited over the opportunities we see in 2018 and beyond to build on the success achieved to this point. We are clearly giving customers a reason to Love Their Bank Again."

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

"The momentum of our expansion strategy continues to build as we attract new FANS throughout our footprint. We believe we've put ourselves in perfect position to capitalize on opportunities that arise as our competition continues to alienate customers with declining levels of service, higher fees and fewer locations. In addition, the reduction in the corporate tax rate included in Tax Cuts and Jobs Act of 2017 will result in a significant benefit for us in the years to come. We intend on utilizing the savings generated by this Act to invest in our growth and expansion which will result in the creation of new jobs, improvements in technology and the ability to further contribute to the communities which we serve."

Highlights for the Period Ended December 31, 2017

  • Net income increased by 80% to $8.9 million, or $0.15 per share, for the twelve months ended December 31, 2017 compared to $4.9 million, or $0.12 per share, for the twelve months ended December 31, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy.
     
  • Net Income was $2.7 million, or $0.05 per share, in the fourth quarter of 2017 compared to $2.3 million, or $0.04 per share, in the third quarter of 2017 and $1.5 million, or $0.03 per share, in the fourth quarter of 2016. Earnings in the fourth quarter of 2017 were impacted by two significant and infrequent events, as described below.
     
  • The Company reversed its deferred tax asset valuation allowance during the fourth quarter of 2017 resulting in an increase in net income of $2.9 million, or $0.05 per share, during the period. This entry factors in the impact of the new corporate tax rate under the Tax Cuts and Jobs Act signed into law on December 22, 2017.
     
  • Earnings in the fourth quarter of 2017 were also impacted by a $2.2 million write-down related to the Company's largest non-performing asset included in OREO. Management's decision to aggressively pursue a resolution for this asset resulted in the execution of an agreement of sale a required reduction in the carrying value.
     
  • Total deposits increased by $386 million, or 23%, to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016.
     
  • The fastest growing segment of the Company's deposit base is non-interest bearing demand deposits. These balances grew by 35% to $439 million during 2017.
     
  • New stores opened since the beginning of the "Power of Red is Back" expansion campaign are currently growing deposits at an average rate of $27 million per year. The average deposit growth for all stores over the last twelve months was approximately $20 million per store.
     
  • A new store was recently opened in Fairless Hills, PA launching our expansion into Bucks County. Four new stores have been opened over the last twelve months, increasing the total store count to twenty-three locations. Six additional store openings are planned for 2018.
     
  • Total assets increased by $398 million, or 21%, to $2.3 billion as of December 31, 2017 compared to $1.9 billion as of December 31, 2016.
     
  • Total loans grew $197 million, or 20%, to $1.2 billion as of December 31, 2017 compared to $965 million at December 31, 2016.
     
  • Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.94% as of December 31, 2017 compared to 1.51% as of December 31, 2016.
     
  • The Company's residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $378 million in loans during 2017.

  • Meeting the needs of small business customers continued to be an important part of the Company's lending strategy. More than $51 million in new SBA loans were originated during 2017.
     
  • The Company's Total Risk-Based Capital ratio was 16.70% and Tier I Leverage Ratio was 10.64% at December 31, 2017.
     
  • Book value per common share increased to $3.97 as of December 31, 2017 compared to $3.79 as of December 31, 2016.

Income Statement

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

  Three Months Ended   Twelve Months Ended
  12/31/17 12/31/16 %
Change
  12/31/17 12/31/16 %
Change
               
Total Revenue $   24,421     $   19,363        26 %   $   90,946     $   69,539       31 %
Provision for Loan Losses     400          -        100 %       900         1,557        (42 %)
Non-interest Expense     21,622         15,970        35 %       75,276         56,293       34 %
Income (Loss) Before Taxes      (143 )        1,447        (110 %)       5,986          4,826       24 %
Provision (Benefit) for Taxes     (2,881 )        (50 )   n/m         (2,919 )        (119 )    n/m  
Net Income     2,738         1,497       83 %        8,905         4,945       80 %
Net Income per Diluted Share $   0.05     $   0.03       67 %   $   0.15     $   0.12       25 %

The Company reported net income of $2.7 million, or $0.05 per diluted share, for the three month period ended December 31, 2017, compared to net income of $1.5 million, or $0.03 per diluted share, for the three month period ended December 31, 2016. Net income for the twelve month period ended December 31, 2017 was $8.9 million, or $0.15 per diluted share, compared to net income of $4.9 million, or $0.12 per diluted share, for the twelve months ended December 31, 2016. Net income in the fourth quarter of 2017 was impacted by two significant and infrequent events described in the following paragraphs.

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law which included a reduction in the corporate tax rate from 35% to 21%. As a result of the change in the tax rate, the value of the Company's existing deferred tax assets will permanently decrease by $7.7 million. A charge for this impairment was recorded during the fourth quarter. However, the Company has carried a valuation allowance against its deferred tax assets for the last several years. During the fourth quarter, management determined that the valuation allowance was no longer required and recorded an entry to reverse the $10.6 million valuation allowance. The combination of these two entries resulted in the recognition of a net tax benefit and increase in earnings in the amount of $2.9 million during the fourth quarter.

Earnings in the fourth quarter were also impacted by a writedown of $2.2 million against the Company's largest non-performing asset. Management's decision to aggressively pursue a resolution for a property held in the other real estate owned portfolio resulted in the execution of an agreement of sale and a required reduction in the carrying value. Closing on the sale is expected to occur during the first quarter of 2018.

Total revenue increased by $5.1 million, or 26%, to $24.4 million for the three month period ended December 31, 2017, compared to $19.4 million for the three month period ended December 31, 2016. This increase is primarily attributable to higher interest income as a result of the strong growth in interest-earning assets over the last twelve months driven by the Company's "Power of Red is Back" expansion program.

Non-interest income increased to $5.0 million for the three month period ended December 31, 2017 compared to $4.7 million for the three month period ended December 31, 2016.

Non-interest expenses increased by $5.7 million, or 35%, to $21.6 million during the three month period ended December 31, 2017 compared to $16.0 million during the three months ended December 31, 2016. This increase was primarily driven by the addition of expenses related to the "Power of Red is Back" growth and expansion strategy. Salary and employee benefit costs were higher at the Bank as a result of annual merit increases along with increased staffing levels related to our growth strategy. Three new stores were opened during 2017. The Company now has twenty-three store locations. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses. In addition, the writedown of $2.2 million related to an OREO property described earlier also contributed to the increase in non-interest expenses.

Balance Sheet

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

 

Description
 

12/31/17
 

12/31/16
%
Change
 

09/30/17
%
Change
           
Total assets $ 2,322,347 $ 1,923,931 21 % $ 2,141,563 8 %
Total loans (net)   1,153,679   955,817 21 %   1,087,147 6 %
Total deposits   2,063,295   1,677,670 23 %   1,885,405 9 %
Total core deposits   2,043,816   1,677,403 22 %   1,876,840 9 %

Total assets increased by $398 million, or 21%, as of December 31, 2017 when compared to December 31, 2016.  Deposits grew by $386 million to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016. Non-interest bearing demand deposit balances increased by 35% during 2017. The number of deposit accounts has also grown by 35% during the past twelve months. The strong growth in assets, loans and deposits has been driven by the addition of new stores and the successful execution of the Company's aggressive growth strategy referred to as "The Power of Red is Back."

Core Deposits

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

 

 

Description
 

 

12/31/17
 

 

12/31/16
 

%
Change
 

 

09/30/17
 

%
Change
4th Qtr
2017
Cost of
Funds
             
Demand noninterest-bearing $ 438,500  $ 324,912    35 % $ 398,794   10 % 0.00 %
Demand interest-bearing   807,736   605,950  33 %   745,878    8 % 0.48 %
Money market and savings   700,321   635,644   10 %   619,265  13 % 0.54 %
Certificates of deposit   97,259   110,897   (12 %)   112,903  (14 %) 1.04 %
Total core deposits $ 2,043,816 $ 1,677,403   22 % $ 1,876,840    9 % 0.43 %
             

Core deposits increased by 22% to $2.0 billion at December 31, 2017 compared to $1.7 billion at December 31, 2016 as the Company moves forward with its growth strategy to increase the number of stores and expand its banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. On a percentage basis, the Company recognized strongest growth in non-interest bearing demand deposit balances year over year as a result of the successful execution of its strategy.

Lending

Loan balances by type are as follows (dollars in thousands):

 

Description
 

12/31/17
% of
Total
 

12/31/16
% of
Total
 

09/30/17
% of
Total
             
Commercial real estate $ 433,304 37 % $ 378,519 40 % $ 415,532  38 %
Construction and land development   104,617 9 %   61,453 5 %   93,657 8 %
Commercial and industrial   173,343 15 %   174,744 20 %   163,085 15 %
Owner occupied real estate   309,838 27 %   276,986 28 %   297,880 27 %
Consumer and other   76,412 7 %   63,588 6 %   71,867 7 %
Residential mortgage   64,764 5 %   9,682 1 %   53,384 5 %
Gross loans $ 1,162,278 100 % $ 964,972 100 % $ 1,095,405 100 %
             

Gross loans increased by $197 million, or 20%, to $1.2 billion at December 31, 2017 compared to $965 million at December 31, 2016 as a result of the steady growth 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, residential mortgages and the owner occupied categories.

Asset Quality

The Company's non-performing asset balances and asset quality ratios are highlighted below:

  Three Months Ended
  12/31/17 09/30/17 12/31/16
       
Non-performing assets / capital and reserves 9 % 10 % 13 %
Non-performing assets / total assets 0.94 % 1.07 % 1.51 %
Quarterly net loan charge-offs / average loans 0.02 % 0.43 % 0.12 %
Allowance for loan losses / gross loans 0.74 % 0.75 % 0.95 %
Allowance for loan losses / non-performing loans 58 % 60 % 48 %

The percentage of non-performing assets to total assets decreased to 0.94% at December 31, 2017, compared to 1.51% at December 31, 2016. One of the Company's largest non-performing loan relationships has been restructured and returned to performing status during 2017. In addition, the Company's largest asset held in other real estate owned was written down during the fourth quarter of 2017 as a result of the Company's decision to aggressively pursue the sale of this asset.  The ratio of non-performing assets to capital and reserves decreased to 9% at December 31, 2017 compared to 13% at December 31, 2016.

Capital

The Company's capital ratios at December 31, 2017 were as follows:

  Actual
12/31/17
Regulatory Guidelines
"Well Capitalized"
     
Leverage Ratio   10.64% 5.00%
Common Equity Ratio   14.75% 6.50%
Tier 1 Risk Based Capital   16.13% 8.00%
Total Risk Based Capital   16.70% 10.00%
Tangible Common Equity    9.56% n/a

Total shareholders' equity increased to $226 million at December 31, 2017 compared to $215 million at December 31, 2016. Book value per common share increased to $3.97 at December 31, 2017 compared to $3.79 per share at December 31, 2016.  The Company completed a common stock offering in the amount of $100 million during the fourth quarter of 2016.

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its twenty-three store locations in the Greater Philadelphia and Southern New Jersey market place.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with the most convenient hours compared to any bank in its market.  The Bank offers free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint Network. The Bank also offers a wide range of residential mortgage products through its wholly owned subsidiary, 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, 2016 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) 2017   2017   2016  
                       
ASSETS                  
  Cash and due from banks   $   36,073     $   27,181     $   19,830    
  Interest-bearing deposits and federal funds sold     25,869         71,601         14,724    
    Total cash and cash equivalents       61,942         98,782         34,554    
                       
  Securities - Available for sale       464,430         377,757         369,739    
  Securities - Held to maturity       472,213         416,987         432,499    
  Restricted stock         1,918         1,678         1,366    
    Total investment securities       938,561         796,422         803,604    
                       
  Loans held for sale         45,700         41,711         28,065    
                       
  Loans receivable         1,162,278         1,095,405         964,972    
  Allowance for loan losses       (8,599 )       (8,258 )       (9,155 )  
    Net loans           1,153,679         1,087,147         955,817    
                       
  Premises and equipment       74,947         71,715         57,040    
  Other real estate owned         6,966         9,169         10,174    
  Other assets           40,552         36,617         34,677    
                       
  Total Assets       $   2,322,347     $   2,141,563     $   1,923,931    
                       
                       
                       
LIABILITIES                  
  Non-interest bearing deposits   $   438,500     $   398,794     $   324,912    
  Interest bearing deposits         1,624,795         1,486,611         1,352,758    
    Total deposits         2,063,295         1,885,405         1,677,670    
                       
  Subordinated debt         21,681         21,663         21,881    
  Other liabilities         10,911         9,293         9,327    
                       
  Total Liabilities         2,095,887         1,916,361         1,708,878    
                       
SHAREHOLDERS' EQUITY                
  Common stock - $0.01 par value       575         575         573    
  Additional paid-in capital         256,285         255,752         253,570    
  Accumulated deficit         (18,983 )       (21,721 )       (27,888 )  
  Treasury stock at cost         (3,725 )       (3,725 )       (3,725 )  
  Stock held by deferred compensation plan     (183 )       (183 )       (183 )  
  Accumulated other comprehensive loss     (7,509 )       (5,496 )       (7,294 )  
                       
  Total Shareholders' Equity       226,460         225,202         215,053    
                       
                       
  Total Liabilities and Shareholders' Equity $   2,322,347     $   2,141,563     $   1,923,931    
                       

 

                       
Republic First Bancorp, Inc.                      
Consolidated Statements of Operations                    
(Unaudited)                          
                               
            Three Months Ended   Twelve Months Ended  
            December 31,   September 30,   December 31,   December 31,   December 31,  
(in thousands, except per share amounts) 2017   2017   2016   2017   2016  
                               
INTEREST INCOME                        
  Interest and fees on loans   $   13,576     $   12,989   $   10,826     $   50,094     $   41,787    
  Interest and dividends on investment securities     5,568         4,752       3,636         20,178         11,967    
  Interest on other interest earning assets     265         181       174         577         473    
    Total interest income         19,409         17,922       14,636         70,849         54,227    
                               
INTEREST EXPENSE                        
  Interest on deposits         2,222         1,872       1,650         7,418         5,669    
  Interest on borrowed funds       320         338       296         1,366         1,194    
    Total interest expense       2,542         2,210       1,946         8,784         6,863    
                               
  Net interest income         16,867         15,712       12,690         62,065         47,364    
  Provision for loan losses         400       -     -         900         1,557    
                               
  Net interest income after provision for loan losses     16,467         15,712       12,690         61,165         45,807    
                               
NON-INTEREST INCOME                        
  Service fees on deposit accounts       1,084         1,067       748         3,904         2,658    
  Mortgage banking income       2,619         3,159       2,657         11,170         5,062    
  Gain on sale of SBA loans       1,063         831       769         3,378         4,981    
  Gain (loss) on sale of investment securities     (85 )     -     -         (146 )       656    
  Other non-interest income       331         721       553         1,791         1,955    
    Total non-interest income       5,012         5,778       4,727         20,097         15,312    
                               
NON-INTEREST EXPENSE                        
  Salaries and employee benefits       10,159         9,829       8,268         37,959         28,602    
  Occupancy and equipment       2,947         3,064       2,424         11,774         9,627    
  Legal and professional fees       953         610       560         2,877         2,039    
  Foreclosed real estate         2,388         746       572         4,092         2,182    
  Regulatory assessments and related fees     359         355       402         1,367         1,413    
  Other operating expenses       4,816         4,561       3,744         17,207         12,430    
    Total non-interest expense       21,622         19,165       15,970         75,276         56,293    
                               
Income (loss) before benefit for income taxes     (143 )       2,325       1,447         5,986         4,826    
                               
Provision (benefit) for income taxes       (2,881 )       4       (50 )       (2,919 )       (119 )  
                               
Net income       $   2,738     $   2,321   $   1,497     $   8,905     $   4,945    
                               
                               
Net Income per Common Share                      
  Basic       $   0.05     $   0.04   $   0.03     $   0.16     $   0.13    
  Diluted       $   0.05     $   0.04   $   0.03     $   0.15     $   0.12    
                               
Average Common Shares Outstanding                      
  Basic           56,988         56,974       43,456         56,933         39,281    
  Diluted           58,360         58,314       44,317         58,250         39,865    
                               

 

                                     
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, 2017   September 30, 2017   December 31, 2016
                                     
        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   $   82,918   $   265   1.27 %   $   56,316   $   181   1.28 %   $   135,214   $   174   0.51 %
Securities       888,862       5,616   2.53 %       765,678       4,805   2.51 %       649,649       3,731   2.30 %
Loans receivable       1,171,771       13,743   4.65 %       1,115,920       13,136   4.67 %       970,391       10,965   4.50 %
Total interest-earning assets       2,143,551       19,624   3.63 %       1,937,914       18,122   3.71 %       1,755,254       14,870   3.37 %
                                     
Other assets       126,904               122,513               104,225        
                                     
Total assets   $  2,270,455           $  2,060,427           $  1,859,479        
                                     
Interest-bearing liabilities:                                    
                                     
Demand non interest-bearing   $   421,841           $   381,380           $   325,495        
Demand interest-bearing       776,203       945   0.48 %       692,423       772   0.44 %       613,828       617   0.40 %
Money market & savings       693,684       942   0.54 %       613,506       788   0.51 %       629,646       716   0.45 %
Time deposits       120,067       335   1.11 %       109,878       312   1.13 %       110,488       317   1.14 %
Total deposits       2,011,795       2,222   0.44 %       1,797,187       1,872   0.41 %       1,679,457       1,650   0.39 %
                                     
Total interest-bearing deposits       1,589,954       2,222   0.55 %       1,415,807       1,872   0.52 %       1,353,962       1,650   0.48 %
                                     
Other borrowings       23,621       320   5.37 %       30,220       338   4.44 %       21,913       296   5.37 %
                                     
                                     
Total interest-bearing liabilities       1,613,575       2,542   0.63 %       1,446,027       2,210   0.61 %       1,375,875       1,946   0.56 %
Total deposits and                                     
  other borrowings       2,035,416       2,542   0.50 %       1,827,407       2,210   0.48 %       1,701,370       1,946   0.46 %
                                     
                                     
Non interest-bearing liabilities       9,560               9,179               10,965        
Shareholders' equity       225,479               223,841               147,144        
Total liabilities and                                    
shareholders' equity   $  2,270,455           $  2,060,427           $  1,859,479        
                                     
Net interest income       $  17,082           $  15,912           $  12,924    
Net interest spread           3.00 %           3.10 %           2.81 %
                                     
Net interest margin           3.16 %           3.26 %           2.93 %
                                     
                                     
                                     
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, 2017   December 31, 2016  
                           
        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   $   48,148   $   577   1.20 %   $   92,452   $   473   0.51 %  
Securities       811,269       20,466   2.52 %       506,545       12,346   2.44 %  
Loans receivable       1,090,851       50,687   4.65 %       936,492       42,304   4.52 %  
Total interest-earning assets       1,950,268       71,730   3.68 %       1,535,489       55,123   3.59 %  
                           
Other assets       115,770               96,902          
                           
Total assets   $  2,066,038           $  1,632,391          
                           
Interest-bearing liabilities:                          
                           
Demand non interest-bearing   $   372,171           $   284,326          
Demand interest-bearing       687,586       3,020   0.44 %       510,745       2,088   0.41 %  
Money market & savings       629,464       3,160   0.50 %       586,750       2,639   0.45 %  
Time deposits       110,952       1,238   1.12 %       89,713       942   1.05 %  
Total deposits       1,800,173       7,418   0.41 %       1,471,534       5,669   0.39 %  
                           
Total interest-bearing deposits       1,428,002       7,418   0.52 %       1,187,208       5,669   0.48 %  
                           
Other borrowings       35,429       1,366   3.86 %       27,471       1,194   4.35 %  
                           
                           
Total interest-bearing liabilities       1,463,431       8,784   0.60 %       1,214,679       6,863   0.57 %  
Total deposits and                           
  other borrowings       1,835,602       8,784   0.48 %       1,499,005       6,863   0.46 %  
                           
                           
Non interest-bearing liabilities       8,942               8,867          
Shareholders' equity       221,494               124,519          
Total liabilities and                          
shareholders' equity   $  2,066,038           $  1,632,391          
                           
Net interest income       $  62,946           $  48,260      
Net interest spread           3.08 %           3.02 %  
                           
Net interest margin           3.23 %           3.14 %  
                           
                           
                           
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) 2017   2017   2016   2017   2016
                   
                   
Balance at beginning of period $   8,258     $   9,454     $   9,453     $   9,155     $   8,703  
                   
Provision charged to operating expense     400       -       -         900         1,557  
      8,658         9,454         9,453         10,055         10,260  
                   
Recoveries on loans charged-off:                  
  Commercial     1         52         1         119         169  
  Consumer   -       -         2         1         2  
Total recoveries     1         52         3         120         171  
                   
Loans charged-off:                  
  Commercial     (19 )       (1,243 )       (290 )       (1,523 )       (1,265 )
  Consumer     (41 )       (5 )       (11 )       (53 )       (11 )
                   
Total charged-off     (60 )       (1,248 )       (301 )       (1,576 )       (1,276 )
                   
Net charge-offs     (59 )       (1,196 )       (298 )       (1,456 )       (1,105 )
                   
Balance at end of period $   8,599     $   8,258     $   9,155     $   8,599     $   9,155  
                   
                   
Net charge-offs as a percentage of                  
  average loans outstanding   0.02 %     0.43 %     0.12 %     0.13 %     0.12 %
                   
Allowance for loan losses as a percentage                  
  of period-end loans   0.74 %     0.75 %     0.95 %     0.74 %     0.95 %

 

                   
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) 2017   2017   2017   2017   2016
                   
Non-accrual loans:                  
  Commercial real estate $   13,973     $   10,140     $   17,703     $   17,695     $   17,758  
  Consumer and other     872         880         817         834         836  
Total non-accrual loans     14,845         11,020         18,520         18,529         18,594  
                   
Loans past due 90 days or more                  
  and still accruing   -         2,730         293       -         302  
                   
Total non-performing loans     14,845         13,750         18,813         18,529         18,896  
                   
Other real estate owned     6,966         9,169         9,909         9,944         10,174  
                   
Total non-performing assets $   21,811     $   22,919     $   28,722     $   28,473     $   29,070  
                   
                   
Non-performing loans to total loans   1.28 %     1.26 %     1.76 %     1.81 %     1.96 %
                   
Non-performing assets to total assets   0.94 %     1.07 %     1.41 %     1.45 %     1.51 %
                   
Non-performing loan coverage   57.93 %     60.06 %     50.25 %     49.55 %     48.45 %
                   
Allowance for loan losses as a percentage                  
  of total period-end loans   0.74 %     0.75 %     0.89 %     0.89 %     0.95 %
                   
Non-performing assets / capital plus                  
  allowance for loan losses   9.28 %     9.82 %     12.39 %     12.52 %     12.97 %

 

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