Market Overview

Republic First Bancorp, Inc. Reports Second Quarter Financial Results; Announces New York City Expansion Plan

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PHILADELPHIA, July 26, 2018 (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, 2018.

Q2 Highlights

  • Total deposits increased by $402 million, or 23%, to $2.1 billion as of June 30, 2018 compared to $1.7 billion as of June 30, 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 $29 million per year, while the average deposit growth for all stores over the last twelve months was approximately $18 million per store.
     
  • Total loans grew $251 million, or 24%, to $1.3 billion as of June 30, 2018 compared to $1.1 billion at June 30, 2017.
     
  • Income before tax increased by 41% to $2.9 million for the three months ended June 30, 2018 compared to $2.1 million for the three months ended June 30, 2017.

"The Power of Red is Back" expansion strategy continues to deliver exceptional results. Assets, loans and deposits are growing more than 20% year over year and profitability continues to improve despite the significant investments being made to execute the growth plan. The momentum can be felt across the Bank's entire footprint.

The success achieved with "The Power of Red is Back" growth campaign in the Metro Philadelphia Market is moving to New York. Republic Bank is planning to expand into New York City beginning in 2019. Sites for several new stores have been identified in Manhattan with four stores expected to open next year.

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

"The Power of Red is Back growth campaign is coming to New York City.  I am excited to announce our intention to bring Republic Bank's unmatched commitment to extraordinary customer service and convenience to Manhattan. Our goal is to turn Customers into FANS. We achieve this goal not only through our unique store locations, but we combine that experience with our relentless pursuit of customer satisfaction through all delivery channels including mobile and internet options. We look forward to the opportunity to bring our exceptional model to the people of New York City."

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

"Our second quarter results continue to demonstrate the success our growth strategy is capable of producing. We are excited for the highly anticipated opening of our next store in Gloucester Township, NJ and we've recently broken ground on four new sites in the Metro Philadelphia market which we hope to have complete before year end. This activity combined with the planned expansion into New York City beginning in 2019 sets us up for an incredibly bright future."

A summary of the financial results for the period ended June 30, 2018 can be found in the following table:

    Three Months Ended
($ in millions, except per share data)   06/30/18 06/30/17 % Change
         
Assets   $ 2,552.9 $ 2,043.5 25 %
Loans     1,317.6   1,066.5 24 %
Deposits     2,134.1   1,732.4 23 %
Total Revenue   $ 28.1 $ 22.3 26 %
Income Before Tax     2.9   2.1 41 %
Net Income *     2.4   2.1 15 %
Net Income per Share   $ 0.04 $ 0.04 - %
 

* Note:  Net income for the period ended 6/30/18 reflects a provision for federal and state income taxes which did not impact 2017 results due to an adjustment to the DTA valuation allowance recorded by the Company.

Additional Highlights for the Period Ended June 30, 2018

  • Total assets increased by $509 million, or 25%, to $2.6 billion as of June 30, 2018 compared to $2.0 billion as of June 30, 2017.
     
  • Non-interest bearing demand deposits represent the fastest growing segment of the Company's deposit base. These deposits grew by $156 million, or 42%, to $527 million over the last 12 months.
     
  • Net income after tax was $2.4 million, or $0.04 per share, for the three months ended June 30, 2018 compared to $2.1 million for the three months ended June 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during the first quarter of 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017. The prior year income tax provision was largely offset by an adjustment to the valuation allowance.
     
  • Total revenue grew by 26% during the quarter ended June 30, 2018 while non-interest expense increased by 17% when compared to the second quarter of 2017. The Company continues to open new stores and increase profitability despite the additional costs associated with the expansion strategy.
     
  • There are twenty-three convenient store locations open today. The next store opening is scheduled for July 28, 2018 in Gloucester Township, NJ. Ground has been broken on sites in Evesboro, Lumberton, and Somers Point, NJ and Feasterville, PA. These stores are expected to be completed by year end.
     
  • Expansion into New York City is expected to begin during 2019. The Company is planning to open four new stores in Manhattan in the coming year.
     
  • Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.81% as of June 30, 2018 compared to 1.41% as of June 30, 2017.
     
  • The Company converted $10.6 million of outstanding trust preferred securities to 1.6 million shares of common stock during the first quarter of 2018. This conversion will result in a reduction of interest expense of approximately $0.9 million on an annual basis going forward.
     
  • The Company's residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $100 million in loans during the three month period ended June 30, 2018.
     
  • Meeting the needs of small business customers continued to be an important part of the Company's lending strategy.  More than $8 million in new SBA loans were originated during the three month period ended June 30, 2018. Republic Bank is currently ranked as the #2 SBA lender in New Jersey based on the dollar volume of loan originations.
     
  • The Company's Total Risk-Based Capital ratio was 15.62% and Tier I Leverage Ratio was 9.88% at June 30, 2018.
     
  • Book value per common share increased to $4.01 as of June 30, 2018 compared to $3.90 as of June 30, 2017.

Income Statement

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

  Three Months Ended   Six Months Ended
  06/30/18 06/30/17 % Change   06/30/18 06/30/17 % Change
Total Revenue $ 28,092 $ 22,300   26 %   $ 53,526 $ 42,825   25 %
Provision for Loan Losses   800   500   60 %     1,200   500   140 %
Non-interest Expense   20,729   17,685   17 %     40,831   34,489   18 %
Income Before Taxes   2,901   2,051   41 %     5,050   3,804   33 %
Provision (Benefit) for Taxes   530   (8 ) n/m       902   (42 ) n/m  
Net Income   2,371   2,059   15 %     4,148   3,846   8 %
Net Income per Share $ 0.04 $ 0.04   - %   $ 0.07 $ 0.07   - %
 

The Company reported net income of $2.4 million, or $0.04 per share, for the three month period ended June 30, 2018 compared to $2.1 million for the three month period ended June 30, 2017.  Net income for the six month period ended June 30, 2018 was $4.1 million, or $0.07 per share, compared to net income of $3.8 million, or $0.07 per share, for the six months ended June 30, 2017.

During 2017, the Company recorded a minimal provision for federal and state income taxes due to the deferred tax asset valuation allowance recorded on the balance sheet. Income Before Taxes grew 41% to $2.9 million during the second quarter of 2018 and grew 33% to $5.1 million on a year to date basis in 2018. The significant improvement in pre-tax profitability has been achieved despite the ongoing investments and expenditures required for the growth and expansion strategy.

Total revenue increased by $5.8 million, or 26%, to $28.1 million for the three month period ended June 30, 2018, compared to $22.3 million for the three month period ended June 30, 2017.  Total revenue for the six month period ended June 30, 2018 increased by $10.7 million, or 25%, to $53.5 million. The increase in revenue 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.

The increase in total revenue for both the three month period (26%) and six month period (25%) ended June 30, 2018 exceeded the growth in non-interest expense for the three month period (17%) and the six month period (18%) ended June 30, 2018 which demonstrates the effect that our growth strategy will have on the profitability of the Bank.

Non-interest income increased to $5.8 million for the three month period ended June 30, 2018 compared to $5.0 million for the three month period ended June 30, 2017 driven by growth in service fees on deposit accounts and residential mortgage banking income. 

Non-interest expenses increased by $3.0 million, or 17%, to $20.7 million during the three month period ended June 30, 2018 compared to $17.7 million during the three months ended June 30, 2017. This increase was mainly caused by the increase in salaries and employee benefits as a result of annual merit increases along with increased staffing levels related to our growth strategy of adding and relocating stores. Occupancy and equipment expenses associated with the growth and relocation strategy also contributed to the increase in non-interest expenses.

The provision for income taxes was $530 thousand for the three month period ended June 30, 2018 compared to a benefit for income taxes in the amount of $8 thousand for the three month period ended June 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during the first quarter of 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017.

Balance Sheet

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

Description 06/30/18 06/30/17 % Change 03/31/18 % Change
           
Total assets $ 2,552,920 $ 2,043,487 25 % $ 2,471,464 3 %
Total loans (net)   1,310,012   1,057,056 24 %   1,244,262 5 %
Total deposits   2,134,141   1,732,431 23 %   2,123,451 1 %
 

Total assets increased by $509.4 million, or 25%, as of June 30, 2018 when compared to June 30, 2017.  Deposits grew by $401.7 million to $2.1 billion as of June 30, 2018 compared to $1.7 billion as of June 30, 2017. The number of deposit accounts has 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."

Deposits

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

Description 06/30/18 06/30/17 % Change  
03/31/18

Change
2nd Qtr 2018
Cost of Funds
             
Demand noninterest-bearing $ 526,650 $ 370,270 42 % $ 464,383 13 % 0.00 %
Demand interest-bearing   785,513   647,501 21 %   826,726 (5 %) 0.74 %
Money market and savings   698,182   607,859 15 %   703,263 (1 %) 0.67 %
Certificates of deposit   123,796   106,801 16 %   129,079 (4 %) 1.17 %
Total deposits $ 2,134,141 $ 1,732,431 23 % $ 2,123,451 1 % 0.58 %
 
 

Deposits increased to $2.1 billion at June 30, 2018 compared to $1.7 billion at June 30, 2017 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. The Company recognized strongest growth in demand deposit balances, led by growth in non-interest bearing demand deposits of 42%, on a year to year basis as a result of the successful execution of its strategy.

Lending

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

Description  06/30/18 % of Total 06/30/17 % of Total 03/31/18 % of Total
             
Commercial real estate $ 489,574 37 % $ 412,695 39 % $ 467,585 37 %
Construction and land development   120,165 9 %   83,571 8 %   118,607 10 %
Commercial and industrial   188,254 14 %   176,949 16 %   189,420 15 %
Owner occupied real estate   335,871 26 %   285,479 27 %   315,418 25 %
Consumer and other   83,606 6 %   68,530 6 %   78,834 6 %
Residential mortgage   100,108 8 %   39,286 4 %   81,048 7 %
Gross loans $ 1,317,578 100 % $ 1,066,510 100 % $ 1,250,912 100 %
             
 

Gross loans increased by $251 million, or 24%, to $1.3 billion at June 30, 2018 compared to $1.1 billion at June 30, 2017 as a result of the steady flow in quality loan demand over the last twelve months and continued success with the relationship banking model. The Company experienced strong growth across all loan categories.

Asset Quality

The Company's asset quality ratios are highlighted below:

  Three Months Ended
  06/30/18 03/31/18 06/30/17
       
Non-performing assets / capital and reserves 9 % 9 % 12 %
Non-performing assets / total assets 0.81 % 0.85 % 1.41 %
Quarterly net loan charge-offs / average loans (0.04 %) 0.77 % 0.09 %
Allowance for loan losses / gross loans 0.57 % 0.53 % 0.89 %
Allowance for loan losses / non-performing loans 54 % 47 % 50 %
 

The percentage of non-performing assets to total assets decreased to 0.81% at June 30, 2018, compared to 1.41% at June 30, 2017.  The ratio of non-performing assets to capital and reserves decreased to 9% at June 30, 2018 compared to 12% at June 30, 2017 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company's capital ratios at June 30, 2018 were as follows:

  Actual
06/30/18
Regulatory Guidelines
"Well Capitalized"
     
Leverage Ratio 9.88 % 5.00 %
Common Equity Ratio 14.48 % 6.50 %
Tier 1 Risk Based Capital 15.16 % 8.00 %
Total Risk Based Capital 15.62 % 10.00 %
Tangible Common Equity 9.04 % n/a  
 

Total shareholders' equity increased to $235 million at June 30, 2018 compared to $222 million at June 30, 2017. Book value per common share increased to $4.01 at June 30, 2018 compared to $3.90 per share at June 30, 2017.

Analyst and Investor Call

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

 
  Date: July 26, 2018
  Time: 10:00am (EDT)
  From the U.S. dial: (888) 424-8151
  Participant Pin: 6954598
     
  An operator will assist you in joining the call.
 
 

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its twenty-three stores located 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 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, 2017 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)  2018     2018     2017   
                   
ASSETS              
  Cash and due from banks   $   29,363     $   21,927     $   28,247    
  Interest-bearing deposits and federal funds sold     29,991         9,142         59,750    
    Total cash and cash equivalents       59,354         31,069         87,997    
                   
  Securities - Available for sale       502,021         519,692         345,182    
  Securities - Held to maturity       503,742         519,295         409,373    
  Restricted stock       8,379         5,435         3,878    
    Total investment securities       1,014,142         1,044,422         758,433    
                   
  Loans held for sale       39,301         25,653         29,547    
                   
  Loans receivable       1,317,578         1,250,912         1,066,510    
  Allowance for loan losses       (7,566 )       (6,650 )       (9,454 )  
    Net loans       1,310,012         1,244,262         1,057,056    
                   
  Premises and equipment       80,069         77,153         65,471    
  Other real estate owned       6,559         6,966         9,909    
  Other assets       43,483         41,939         35,074    
                   
  Total Assets   $   2,552,920     $   2,471,464     $   2,043,487    
                   
                   
LIABILITIES              
  Non-interest bearing deposits   $   526,650     $   464,383     $   370,270    
  Interest bearing deposits       1,607,491         1,659,068         1,362,161    
    Total deposits       2,134,141         2,123,451         1,732,431    
                   
  Short-term borrowings       161,669         93,915         55,000    
  Subordinated debt       11,256         11,254         21,656    
  Other liabilities       10,520         8,770         12,079    
                   
  Total Liabilities       2,317,586         2,237,390         1,821,166    
                   
SHAREHOLDERS' EQUITY              
  Common stock - $0.01 par value       593         592         575    
  Additional paid-in capital       267,974         267,313         255,215    
  Accumulated deficit       (13,195 )       (15,566 )       (24,042 )  
  Treasury stock at cost       (3,725 )       (3,725 )       (3,725 )  
  Stock held by deferred compensation plan     (183 )       (183 )       (183 )  
  Accumulated other comprehensive loss     (16,130 )       (14,357 )       (5,519 )  
                   
  Total Shareholders' Equity       235,334         234,074         222,321    
                   
                   
  Total Liabilities and Shareholders' Equity $   2,552,920     $   2,471,464     $   2,043,487    
                   

 

Republic First Bancorp, Inc.                    
Consolidated Statements of Operations                    
(Unaudited)                    
                         
      Three Months Ended   Six Months Ended  
      June 30,   March 31,   June 30,   June 30,   June 30,  
(in thousands, except per share amounts)  2018     2018    2017     2018     2017   
                         
INTEREST INCOME                    
  Interest and fees on loans $   15,457     $   14,269   $   12,330     $   29,726     $   23,529    
  Interest and dividends on investment securities     6,804         6,458       4,931         13,262         9,858    
  Interest on other interest earning assets     63         172       70         235         131    
    Total interest income     22,324         20,899       17,331         43,223         33,518    
                         
INTEREST EXPENSE                    
  Interest on deposits     3,089         2,598       1,722         5,687         3,324    
  Interest on borrowed funds     573         185       342         758         708    
    Total interest expense     3,662         2,783       2,064         6,445         4,032    
                         
  Net interest income     18,662         18,116       15,267         36,778         29,486    
  Provision for loan losses     800         400       500         1,200         500    
                         
  Net interest income after provision for loan losses     17,862         17,716       14,767         35,578         28,986    
                         
NON-INTEREST INCOME                    
  Service fees on deposit accounts     1,326         1,175       907         2,501         1,753    
  Mortgage banking income     3,182         2,186       2,971         5,368         5,392    
  Gain on sale of SBA loans     846         992       796         1,838         1,484    
  Gain (loss) on sale of investment securities     (1 )       -        (61 )       (1 )       (61 )  
  Other non-interest income     415         182       356         597         739    
    Total non-interest income     5,768         4,535       4,969         10,303         9,307    
                         
NON-INTEREST EXPENSE                    
  Salaries and employee benefits     10,883         10,645       9,389         21,528         17,971    
  Occupancy and equipment     3,353         3,470       2,873         6,823         5,763    
  Legal and professional fees     859         759       633         1,618         1,314    
  Foreclosed real estate     192         311       612         503         958    
  Regulatory assessments and related fees     395         467       324         862         653    
  Other operating expenses     5,047         4,450       3,854         9,497         7,830    
    Total non-interest expense     20,729         20,102       17,685         40,831         34,489    
                         
Income before provision (benefit) for income taxes     2,901         2,149       2,051         5,050         3,804    
                         
Provision (benefit) for income taxes     530         372       (8 )       902         (42 )  
                         
Net income $   2,371     $   1,777   $   2,059     $   4,148     $   3,846    
                         
                         
Net Income per Common Share                    
  Basic $   0.04     $   0.03   $   0.04     $   0.07     $   0.07    
  Diluted $   0.04     $   0.03   $   0.04     $   0.07     $   0.07    
                         
Average Common Shares Outstanding                    
  Basic     58,746         57,100       56,945         57,927         56,885    
  Diluted     59,911         58,370       58,301         59,147         58,165    
                         

 

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, 2018   March 31, 2018   June 30, 2017
                                     
        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   $   13,412   $   63   1.88 %   $   40,425   $   172   1.73 %   $   28,691   $   70   0.98 %
Securities       1,048,291       6,838   2.61 %       1,015,605       6,487   2.55 %       782,121       5,013   2.56 %
Loans receivable       1,304,244       15,557   4.78 %       1,235,124       14,365   4.72 %       1,065,313       12,470   4.70 %
Total interest-earning assets       2,365,947       22,458   3.81 %       2,291,154       21,024   3.72 %       1,876,125       17,553   3.75 %
                                     
Other assets       129,077               127,001               111,493        
                                     
Total assets   $  2,495,024           $  2,418,155           $  1,987,618        
                                     
Interest-bearing liabilities:                                    
                                     
Demand non interest-bearing   $   481,548           $   431,234           $   355,325        
Demand interest-bearing       844,405       1,549   0.74 %       893,530       1,257   0.57 %       659,859       695   0.42 %
Money market & savings       699,136       1,174   0.67 %       687,818       972   0.57 %       602,710       732   0.49 %
Time deposits       125,607       366   1.17 %       129,897       369   1.15 %       105,820       295   1.12 %
Total deposits       2,150,696       3,089   0.58 %       2,142,479       2,598   0.49 %       1,723,714       1,722   0.40 %
                                     
Total interest-bearing deposits       1,669,148       3,089   0.74 %       1,711,245       2,598   0.62 %       1,368,389       1,722   0.50 %
                                     
Other borrowings       101,829       573   2.26 %       40,552       185   1.85 %       35,119       342   3.91 %
                                     
                                     
Total interest-bearing liabilities       1,770,977       3,662   0.83 %       1,751,797       2,783   0.64 %       1,403,508       2,064   0.59 %
Total deposits and                                     
other borrowings       2,252,525       3,662   0.65 %       2,183,031       2,783   0.52 %       1,758,833       2,064   0.47 %
                                     
                                     
Non interest-bearing liabilities       8,952               9,540               8,345        
Shareholders' equity       233,547               225,584               220,440        
Total liabilities and                                    
shareholders' equity   $  2,495,024           $  2,418,155           $  1,987,618        
                                     
Net interest income       $  18,796           $  18,241           $  15,489    
Net interest spread           2.98 %           3.08 %           3.16 %
                                     
Net interest margin           3.19 %           3.23 %           3.31 %
                                     
                                     
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, 2018   June 30, 2017  
                           
        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   $   26,844   $   235   1.77 %   $   26,323   $   131   1.00 %  
Securities       1,032,038       13,325   2.58 %       795,003       10,045   2.53 %  
Loans receivable       1,269,875       29,922   4.75 %       1,036,979       23,808   4.63 %  
Total interest-earning assets       2,328,757       43,482   3.77 %       1,858,305       33,984   3.69 %  
                           
Other assets       128,045               106,683          
                           
Total assets   $  2,456,802           $  1,964,988          
                           
Interest-bearing liabilities:                          
                           
Demand non interest-bearing   $   456,530           $   342,243          
Demand interest-bearing       868,832       2,806   0.65 %       640,084       1,303   0.41 %  
Money market & savings       693,508       2,146   0.62 %       604,933       1,430   0.48 %  
Time deposits       127,740       735   1.16 %       106,866       591   1.12 %  
Total deposits       2,146,610       5,687   0.53 %       1,694,126       3,324   0.40 %  
                           
Total interest-bearing deposits       1,690,080       5,687   0.68 %       1,351,883       3,324   0.50 %  
                           
Other borrowings       71,360       758   2.14 %       44,078       708   3.24 %  
                           
                           
Total interest-bearing liabilities       1,761,440       6,445   0.74 %       1,395,961       4,032   0.58 %  
Total deposits and                           
other borrowings       2,217,970       6,445   0.59 %       1,738,204       4,032   0.47 %  
                           
                           
Non interest-bearing liabilities       9,171               8,307          
Shareholders' equity       229,661               218,477          
Total liabilities and                          
shareholders' equity   $  2,456,802           $  1,964,988          
                           
Net interest income       $  37,037           $  29,952      
Net interest spread           3.03 %           3.11 %  
                           
Net interest margin           3.21 %           3.25 %  
                           
                           
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)  2018     2018     2017    2017    2018     2017 
                       
                       
Balance at beginning of period $   6,650     $   8,599     $   9,181     $   9,155     $   8,599     $   9,155  
                       
Provision charged to operating expense     800         400         500         900         1,200         500  
      7,450         8,999         9,681         10,055         9,799         9,655  
                       
Recoveries on loans charged-off:                      
Commercial     129         -          30         119         129         66  
Consumer     1         -          1         1         1         1  
Total recoveries     130         -          31         120         130         67  
                       
Loans charged-off:                      
Commercial     -          (2,151 )       (253 )       (1,523 )       (2,151 )       (261 )
Consumer     (14 )       (198 )       (5 )       (53 )       (212 )       (7 )
                       
Total charged-off     (14 )       (2,349 )       (258 )       (1,576 )       (2,363 )       (268 )
                       
Net charge-offs     116         (2,349 )       (227 )       (1,456 )       (2,233 )       (201 )
                       
Balance at end of period $   7,566     $   6,650     $   9,454     $   8,599     $   7,566     $   9,454  
                       
                       
Net charge-offs as a percentage of                      
average loans outstanding   (0.04 %)     0.77 %     0.09 %     0.13 %     0.35 %     0.04 %
                       
Allowance for loan losses as a percentage                      
of period-end loans   0.57 %     0.53 %     0.89 %     0.74 %     0.57 %     0.89 %
 

 

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)  2018     2018     2017     2017     2017 
                   
Non-accrual loans:                  
Commercial real estate $   13,297     $   13,322     $   13,973     $   10,140     $   17,703  
Consumer and other     809         810         872         880         817  
Total non-accrual loans     14,106         14,132         14,845         11,020         18,520  
                   
Loans past due 90 days or more                  
and still accruing     -          -          -          2,730         293  
                   
Total non-performing loans     14,106         14,132         14,845         13,750         18,813  
                   
Other real estate owned     6,559         6,966         6,966         9,169         9,909  
                   
Total non-performing assets $   20,665     $   21,098     $   21,811     $   22,919     $   28,722  
                   
                   
Non-performing loans to total loans   1.07 %     1.13 %     1.28 %     1.26 %     1.76 %
                   
Non-performing assets to total assets   0.81 %     0.85 %     0.94 %     1.07 %     1.41 %
                   
Non-performing loan coverage   53.64 %     47.06 %     57.93 %     60.06 %     50.25 %
                   
Allowance for loan losses as a percentage                  
of total period-end loans   0.57 %     0.53 %     0.74 %     0.75 %     0.89 %
                   
Non-performing assets / capital plus                  
allowance for loan losses   8.51 %     8.76 %     9.28 %     9.82 %     12.39 %
 


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