PHILADELPHIA, April 20, 2017 /PRNewswire/ -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended March 31, 2017.



Three Months Ended

($ in millions, except per share data)


03/31/17

03/31/16

% Change






Assets


$ 1,968.6

$    1,482.1

33%

Loans


1,026.1

899.1

14%

Deposits


1,720.5

1,337.6

29%

Total Revenue


$     20.5

$        15.2

35%

Net Income


1.8

1.1

65%

Net Income per Share


$     0.03

$        0.03

-%

 

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

"The momentum from The Power of Red is Back expansion program continues to build as we enter into 2017. Our primary goal at Republic is to create an emotional and legendary brand. Achieving this goal turns Customers into FANS, who not only remain loyal to our brand, but share their Republic experience with family, friends and neighbors. I am extremely pleased with our progress to date, but truly believe the best is yet to come."

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

"I am pleased to report another quarter of strong financial results to kick off 2017. Progress with our growth and expansion plan has clearly carried into the new year. Total assets have grown by 33% and net income improved by 65% year over year. We currently have three new stores under construction and are hard at work developing sites for future openings. We are not only investing in our store network, but continue to make improvements in technology and infrastructure to provide world class service and convenience across all delivery channels."

Highlights for the Period Ended March 31, 2017

  • The Company completed a $100 million common stock offering during the fourth quarter of 2016. As a result, Shareholders' Equity increased to $218.3 million as of March 31, 2017 compared to $116.6 million as of March 31, 2016. This capital raise will allow the Company to execute its aggressive expansion plan over the next several years.
  • Total deposits increased by $383 million, or 29%, to $1.7 billion as of March 31, 2017 compared to $1.3 billion as of March 31, 2016. On a linked quarter basis deposits grew $43 million, or 3%, when compared to December 31, 2016.
  • New stores opened since the beginning of the "Power of Red is Back" expansion campaign in 2014 are currently growing deposits at an average rate of $32 million per year, while the average deposit growth for all stores over the last twelve months was approximately $20 million per store.
  • Net income increased by 65% to $1.8 million, or $0.03 per share, for the three months ended March 31, 2017 compared to $1.1 million, or $0.03 per share, for the three months ended March 31, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy. The acquisition of Oak Mortgage has also contributed to improved earnings.
  • There are nineteen stores open today. A new location now under construction in Cherry Hill, NJ is scheduled to be completed in the second quarter of 2017. Ground has been broken on sites in Medford and Sicklerville, NJ. There are also several additional sites in various stages of development for future store locations.
  • Total assets increased by $487 million, or 33%, to $2.0 billion as of March 31, 2017 compared to $1.5 billion as of March 31, 2016.
  • Total loans grew $127 million, or 14%, to $1.0 billion as of March 31, 2017 compared to $899 million at March 31, 2016.
  • SBA lending continued to be an important part of the Company's lending strategy. More than $11 million in new SBA loans were originated during the three month period ended March 31, 2017. Our team is currently ranked as the #1 SBA lender in the New Jersey and southeastern Pennsylvania market based on the dollar volume of loan originations.
  • The Company's Total Risk-Based Capital ratio was 18.27% and Tier I Leverage Ratio was 12.21% at March 31, 2017.
  • Book value per common share increased to $3.84 as of March 31, 2017 compared to $3.08  as of March 31, 2016.

Income Statement

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


Three Months Ended


03/31/17

03/31/16

% Change





Total Revenue

$  20,525

$   15,174

35%

Provision for Loan Losses

-

300

(100%)

Non-interest Expenses

16,804

12,343

36%

Net Income

1,787

1,085

65%

Net Income per Share

$       0.03

$       0.03

-%

 

The Company reported net income of $1.8 million, or $0.03 per share, for the three month period ended March 31, 2017, compared to net income of $1.1 million, or $0.03 per share, for the three month period ended March 31, 2016.

Total revenue increased by $5.4 million, or 35%, to $20.5 million for the three month period ended March 31, 2017, compared to $15.2 million for the three month period ended March 31, 2016.  This increase is primarily attributable to revenue from the residential mortgage division which was acquired in July 2016. Revenue also in increased due 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 $4.3 million for the three month period ended March 31, 2017 compared to $2.4 million for the three month period ended March 31, 2016.  This increase was due to $2.4 million in mortgage banking income, driven primarily by loan sales. 

Non-interest expenses increased by $4.5 million, or 36%, to $16.8 million during the three month period ended March 31, 2017 compared to $12.3 million during the three months ended March 31, 2016. This increase was mainly caused by the addition of expenses related to the residential mortgage division. Salaries and employee benefits were also higher at the Bank 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.

Balance Sheet

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

 

Description

 

03/31/17

 

03/31/16

%
Change

 

12/31/16

%
Change







Total assets

$ 1,968,588

$ 1,482,061

33%

$ 1,923,931

2%

Total loans (net)

1,016,962

890,088

15%

955,817

7%

Total deposits

1,720,512

1,337,607

29%

1,677,670

3%

Total core deposits

1,720,245

1,333,085

29%

1,677,403

3%

 

Total assets increased by $486.5 million, or 33%, as of March 31, 2017 when compared to March 31, 2016.  Deposits grew by $382.9 million to $1.7 billion as of March 31, 2017 compared to $1.3 billion as of March 31, 2016. The number of deposit accounts has grown by 40% 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

 

03/31/17

 

03/31/16

 

%
Change

 

12/31/16

 

%

Change

1st Qtr
2017
Cost of
Funds








Demand noninterest-bearing

$ 364,278

$ 263,990

38%

$ 324,912

12%

0.00%

Demand interest-bearing

629,583

426,346

48%

605,950

4%

0.40%

Money market and savings

620,218

586,863

6%

635,644

(2%)

0.47%

Certificates of deposit

106,166

55,886

90%

110,897

(4%)

1.11%

Total core deposits

$ 1,720,245

$1,333,085

29%

$ 1,677,403

3%

0.39%








 

Core deposits increased to $1.7 billion at March 31, 2017 compared to $1.3 billion at March 31, 2016 as the Company moves forward with its growth strategy to increase the number of stores and expand its customer-centric banking model which drives the gathering of low-cost, core deposits. The Company recognized strongest growth in demand accounts and certificates of deposit on a year to year basis as a result of the successful execution of its strategy. On a linked quarter basis, a reduction in certificates of deposit, money market and savings balances in the first quarter of 2017 offset growth in the demand categroies.

Lending

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

 

Description

 

03/31/17

% of
Total

 

03/31/16

% of
Total

 

12/31/16

% of

Total








Commercial real estate

$ 394,840

39%

$ 358,740

40%

$378,519

39%

Construction and land development

78,636

7%

45,815

5%

61,453

6%

Commercial and industrial

188,873

18%

181,828

20%

174,744

18%

Owner occupied real estate

273,996

27%

261,215

29%

276,986

29%

Consumer and other

67,146

7%

49,166

6%

63,588

7%

Residential mortgage

22,652

2%

2,353

0%

9,682

1%

Gross loans

$1,026,143

100%

$899,117

100%

$964,972

100%








 

Gross loans increased by $127.0 million, or 14%, to $1.0 billion at March 31, 2017 compared to $899.1 million at March 31, 2016 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 non-performing asset balances and asset quality ratios are highlighted below:


Three Months Ended


03/31/17

12/31/16

03/31/16





Non-performing assets / capital and reserves

13%

13%

25%

Non-performing assets / total assets

1.45%

1.51%

2.11%

Quarterly net loan charge-offs / average loans

(0.01%)

0.12%

(0.01%)

Allowance for loan losses / gross loans

0.89%

0.95%

1.00%

Allowance for loan losses / non-performing loans

50%

48%

45%

 

The percentage of non-performing assets to total assets decreased to 1.45% at March 31, 2017, compared to 2.11% at March 31, 2016.  The ratio of non-performing assets to capital and reserves decreased to 13% at March 31, 2017 compared to 25% at March 31, 2016 primarily as a result of the completion of the common stock offering during the fourth quarter of 2016.

Capital

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


Actual

03/31/17

Regulatory Guidelines

"Well Capitalized"




Leverage Ratio

12.21%

5.00%

Common Equity Ratio

15.99%

6.50%

Tier 1 Risk Based Capital

17.59%

8.00%

Total Risk Based Capital

18.27%

10.00%

Tangible Common Equity

10.83%

n/a

 

Total shareholders' equity increased to $218.3 million at March 31, 2017 compared to $116.6 million at March 31, 2016. Book value per common share increased to $3.84 at March 31, 2017 compared to $3.08 per share at March 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 nineteen 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 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, including those related to our Five Year Strategic Goals, 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.

 

Republic First Bancorp, Inc.







Consolidated Balance Sheets







(Unaudited)


























March 31,


December 31,


March 31,

(dollars in thousands, except per share amounts)

2017


2016


2016












ASSETS










Cash and due from banks


$         25,119


$         19,830


$         18,000


Interest-bearing deposits and federal funds sold

11,472


14,724


47,198



Total cash and cash equivalents


36,591


34,554


65,198













Securities - Available for sale


362,328


369,739


260,269


Securities - Held to maturity


421,850


432,499


178,628


Restricted stock



1,366


1,366


1,179



Total investment securities


785,544


803,604


440,076













Loans held for sale



25,098


28,065


1,983













Loans receivable



1,026,143


964,972


899,117


Allowance for loan losses


(9,181)


(9,155)


(9,029)



Net loans




1,016,962


955,817


890,088













Premises and equipment


58,926


57,040


49,586


Other real estate owned



9,944


10,174


11,393


Other assets




35,523


34,677


23,737













Total Assets




$    1,968,588


$    1,923,931


$    1,482,061


































LIABILITIES










Non-interest bearing deposits


$       364,278


$       324,912


$       263,990


Interest bearing deposits



1,356,234


1,352,758


1,073,617



Total deposits



1,720,512


1,677,670


1,337,607













Subordinated debt



21,648


21,881


21,864


Other liabilities



8,104


9,327


5,988













Total Liabilities



1,750,264


1,708,878


1,365,459












SHAREHOLDERS' EQUITY









Common stock - $0.01 par value


574


573


384


Additional paid-in capital



254,403


253,570


153,069


Accumulated deficit



(26,101)


(27,888)


(31,748)


Treasury stock at cost



(3,725)


(3,725)


(3,725)


Stock held by deferred compensation plan

(183)


(183)


(183)


Accumulated other comprehensive loss

(6,644)


(7,294)


(1,195)













Total Shareholders' Equity


218,324


215,053


116,602
























Total Liabilities and Shareholders' Equity

$    1,968,588


$    1,923,931


$    1,482,061












 

 

Republic First Bancorp, Inc.







Consolidated Statements of Income







(Unaudited)


























Three Months Ended







March 31,


December 31,


March 31,

(in thousands, except per share amounts)

2017


2016


2016












INTEREST INCOME









Interest and fees on loans


$        11,199


$        10,826


$          9,931


Interest and dividends on investment securities

4,927


3,636


2,768


Interest on other interest earning assets

61


174


63



Total interest income



16,187


14,636


12,762












INTEREST EXPENSE









Interest on deposits



1,602


1,650


1,165


Interest on borrowed funds


366


296


306



Total interest expense


1,968


1,946


1,471













Net interest income



14,219


12,690


11,291


Provision for loan losses



-


-


300













Net interest income after provision for loan losses

14,219


12,690


10,991












NON-INTEREST INCOME









Service fees on deposit accounts


741


748


570


Mortgage banking income


2,421


2,657


-


Gain on sales of SBA loans


688


769


833


Gain on sale of investment securities

-


-


296


Other non-interest income


488


553


713



Total non-interest income


4,338


4,727


2,412












NON-INTEREST EXPENSE









Salaries and employee benefits


8,582


8,268


6,052


Occupancy and equipment


2,890


2,424


2,374


Legal and professional fees


681


560


449


Foreclosed real estate



346


572


585


Regulatory assessments and related fees

329


402


342


Other operating expenses


3,976


3,744


2,541



Total non-interest expense


16,804


15,970


12,343












Income before benefit for income taxes


1,753


1,447


1,060












Benefit for income taxes



(34)


(50)


(25)












Net income




$          1,787


$          1,497


$          1,085























Net Income per Common Share








Basic




$            0.03


$            0.03


$            0.03


Diluted




$            0.03


$            0.03


$            0.03












Average Common Shares Outstanding








Basic




56,824


43,456


37,837


Diluted




58,049


44,317


38,269












 

 

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)


March 31, 2017


December 31, 2016


March 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


$     23,929


$      61


1.03%


$   135,214


$     174


0.51%


$     47,109


$      63


0.54%

Securities


808,029


5,032


2.49%


649,649


3,731


2.30%


437,514


2,862


2.62%

Loans receivable


1,008,329


11,338


4.56%


970,391


10,965


4.50%


887,499


10,046


4.55%

Total interest-earning assets


1,840,287


16,431


3.62%


1,755,254


14,870


3.37%


1,372,122


12,971


3.80%




















Other assets


101,820






104,825






87,685
























Total assets


$1,942,107






$1,860,079






$1,459,807
























Interest-bearing liabilities:






































Demand non interest-bearing


$   329,015






$   325,495






$   261,810





Demand interest-bearing


620,090


608


0.40%


613,828


617


0.40%


412,558


415


0.40%

Money market & savings


607,181


698


0.47%


629,646


716


0.45%


559,458


609


0.44%

Time deposits


107,923


296


1.11%


110,488


317


1.14%


65,414


141


0.87%

Total deposits


1,664,209


1,602


0.39%


1,679,457


1,650


0.39%


1,299,240


1,165


0.36%




















Total interest-bearing deposits


1,335,194


1,602


0.49%


1,353,962


1,650


0.48%


1,037,430


1,165


0.45%




















Other borrowings


53,138


366


2.79%


22,513


296


5.23%


37,428


306


3.29%







































Total interest-bearing liabilities


1,388,332


1,968


0.57%


1,376,475


1,946


0.56%


1,074,858


1,471


0.55%

Total deposits and 



















  other borrowings


1,717,347


1,968


0.46%


1,701,970


1,946


0.45%


1,336,668


1,471


0.44%







































Non interest-bearing liabilities


8,295






10,965






7,478





Shareholders' equity


216,465






147,144






115,661





Total liabilities and



















shareholders' equity


$1,942,107






$1,860,079






$1,459,807
























Net interest income




$14,463






$12,924






$11,500



Net interest spread






3.05%






2.81%






3.25%




















Net interest margin






3.19%






2.93%






3.37%


























































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


March 31,


December 31,


March 31,

(dollars in thousands)

2017


2016


2016













Balance at beginning of period

$         9,155


$         9,453


$         8,703







Provision charged to operating expense

-


-


300


9,155


9,453


9,003







Recoveries on loans charged-off:






  Commercial

36


1


72

  Consumer

-


2


-

Total recoveries

36


3


72







Loans charged-off:






  Commercial

(8)


(290)


(46)

  Consumer

(2)


(11)


-







Total charged-off

(10)


(301)


(46)







Net (charge-offs)/recoveries

26


(298)


26







Balance at end of period

$         9,181


$         9,155


$         9,029













Net charge-offs as a percentage of






  average loans outstanding

(0.01%)


0.12%


(0.01%)







Allowance for loan losses as a percentage






  of period-end loans

0.89%


0.95%


1.00%







 

 

Republic First Bancorp, Inc. 










Summary of Non-Performing Loans and Assets










(unaudited)





















March 31,


December 31,


September 30,


June 30,


March 31,

(dollars in thousands)

2017


2016


2016


2016


2016











Non-accrual loans:










  Commercial real estate

$        17,695


$        17,758


$        18,331


$        18,070


$        11,057

  Consumer and other

834


836


1,007


772


762

Total non-accrual loans

18,529


18,594


19,338


18,842


11,819











Loans past due 90 days or more










  and still accruing

-


302


153


-


8,037











Total non-performing loans

18,529


18,896


19,491


18,842


19,856











Other real estate owned

9,944


10,174


10,271


11,974


11,393











Total non-performing assets

$        28,473


$        29,070


$        29,762


$        30,816


$        31,249





















Non-performing loans to total loans

1.81%


1.96%


2.06%


2.03%


2.21%











Non-performing assets to total assets

1.45%


1.51%


1.72%


1.95%


2.11%











Non-performing loan coverage

49.55%


48.45%


48.50%


46.50%


45.47%











Allowance for loan losses as a percentage










  of total period-end loans

0.89%


0.95%


1.00%


0.94%


1.00%











Non-performing assets / capital plus










   allowance for loan losses

12.52%


12.97%


23.05%


24.20%


24.87%











 

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/republic-first-bancorp-inc-reports-first-quarter-financial-results-300443105.html

SOURCE Republic First Bancorp, Inc.

Copyright 2017 PR Newswire

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