Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company
for Republic Bank, today announced its financial results for the
period ended March 31, 2019.
Q1-2019 Highlights
- Total deposits increased by $356 million, or 17%, to $2.5
billion as of March 31, 2019 compared to $2.1 billion as of March
31, 2018.
- New stores opened since the beginning of the “Power of Red is
Back” expansion campaign are currently growing deposits at an
average rate of $27 million per year, while the average deposit
growth for all stores over the last twelve months was approximately
$14 million per store.
- Total loans grew $226 million, or 18%, to $1.5 billion as of
March 31, 2019 compared to $1.3 billion at March 31,
2018.
- Expansion into New York City is moving forward. Construction
began on our first store located on the corner of 14th & 5th in
Manhattan and is expected to open early this summer.
- Net income declined to $0.4 million, or $0.01 per share, for
the quarter ended March 31, 2019 compared to $1.8 million, or $0.03
per share for the quarter ended March 31, 2018.
“The Power of Red is Back”
expansion strategy continues to build momentum throughout our
footprint. Our newest store in Lumberton, NJ, which opened during
the first quarter, has welcomed hundreds of new FANS since its
grand opening weekend. As recently announced, Republic Bank is also
moving forward with plans to expand into New York City. Sites for
several new stores have been identified in Manhattan with two or
more stores projected to open during 2019.
Net income before tax has consistently improved
over the past five years despite the significant investments
required to execute our growth and expansion strategy. However, net
income in the first quarter of 2019 was impacted by a combination
of factors including compression in the net interest margin as a
result of a flattening yield curve and the opening of three new
stores within a three month period. In addition, we’ve begun to
incur costs related to the expansion into New York City for new
store locations, along with the hiring of a management and lending
team for this new market. Regardless of the challenges effecting
profitability, deposits and loans continue to grow at levels
significantly above industry standards.
Vernon W. Hill, II, Chairman of Republic
First Bancorp said:
“The Power of Red is Back growth campaign
continues to deliver strong growth in assets, loans and deposits as
we move into 2019. Our highly anticipated expansion into New York
City is set to begin by mid-year with the opening of our first
store location at 14th & 5th. Net income declined during the
first quarter as we struggle with the impact of a challenging
interest rate environment and a flattening yield curve. In
addition, we’re now absorbing the up-front costs necessary to
initiate our expansion into New York City. However, this will
not affect our commitment to deliver best in class service across
all delivery channels…..in-store, by phone, online and mobile
options....as we strive to create new FANS each and every day.”
Harry D. Madonna, President and Chief
Executive Officer of Republic First Bancorp added:
“We continue to add top talent to successfully
execute our growth and expansion strategy. Building a strong team
is a vital factor in delivering on our commitment to outstanding
customer service. We’ve had tremendous success attracting strong
leaders in our Metro Philadelphia footprint. We are extremely
pleased with the team we’ve been able to recruit as we embark on
our expansion effort in New York City.”
A summary of the financial results for the
period ended March 31, 2019 can be found in the following
table:
|
|
|
|
|
Three Months Ended |
($ in millions, except
per share data) |
|
03/31/19 |
03/31/18 |
% Change |
|
|
|
|
|
Assets |
|
$ |
2,805.1 |
$ |
2,471.5 |
13 |
% |
Loans |
|
|
1,477.1 |
|
1,250.9 |
18 |
% |
Deposits |
|
|
2,479.0 |
|
2,123.5 |
17 |
% |
Total Revenue |
|
$ |
24.2 |
$ |
22.7 |
7 |
% |
Income Before Tax |
|
|
0.5 |
|
2.1 |
(76 |
%) |
Net Income |
|
|
0.4 |
|
1.8 |
(76 |
%) |
Net Income per Share |
|
$ |
0.01 |
$ |
0.03 |
(67 |
%) |
|
|
|
|
|
|
|
|
Financial Highlights for the Period Ended March 31,
2019
- Total assets increased by $334 million, or 13%, to $2.8 billion
as of March 31, 2019 compared to $2.5 billion as of March 31,
2018.
- Demand deposits represent the fastest growing segment of the
Company’s deposit base. These deposits grew by $336 million to $1.6
billion over the last 12 months, including growth of 13% in
non-interest bearing demand deposit balances.
- We have twenty-six convenient store locations open today.
During the first quarter of 2019 we opened a new store in
Lumberton, NJ. Construction is ongoing on a site in Feasterville,
PA. There are also multiple sites in various stages of development
for future store locations.
- Expansion into New York City is set to begin in 2019.
Construction has begun on the first store location at 14th &
5th in Manhattan. We plan to open two or more new stores in
Manhattan during 2019.
- Net income declined to $0.4 million, or $0.01 per share, for
the three months ended March 31, 2019 compared to $2.2 million, or
$0.04 per share for the three months ended December 31, 2018 and
$1.8 million, or $0.03 per share, for the three months ended March
31, 2018.
- The net interest margin decreased by 23 basis points to 3.00%
for the three months ended March 31, 2019 compared to 3.23% for the
three months ended March 31, 2018.
- Asset quality continues to improve. The ratio of non-performing
assets to total assets declined to 0.60% as of March 31, 2019
compared to 0.85% as of March 31, 2018.
- The Company’s residential mortgage division, Oak Mortgage, is
serving the home financing needs of customers throughout its
footprint. The Oak Mortgage team has originated more than $350
million in mortgage loans over the last twelve months.
- Meeting the needs of small business customers continued to be
an important part of the Company’s lending strategy. More
than $7 million in new SBA loans were originated during the three
month period ended March 31, 2019. Republic Bank continues to be a
top SBA lender in our market area based on the dollar volume of
loan originations.
- The Company’s Total Risk-Based Capital ratio was 14.40% and
Tier I Leverage Ratio was 9.18% at March 31, 2019.
- Book value per common share increased to $4.22 as of March 31,
2019 compared to $3.99 as of March 31, 2018.
Income Statement
The major components of the income statement are
as follows (dollars in thousands, except per share data):
|
|
|
|
|
Three Months Ended |
|
|
03/31/19 |
03/31/18 |
% Change |
Total Revenue |
|
$ |
24,166 |
$ |
22,651 |
7 |
% |
Provision for Loan
Losses |
|
|
300 |
|
400 |
(25 |
%) |
Non-interest
Expense |
|
|
23,348 |
|
20,102 |
16 |
% |
Income Before
Taxes |
|
|
518 |
|
2,149 |
(76 |
%) |
Provision for
Taxes |
|
|
92 |
|
372 |
(75 |
%) |
Net Income |
|
|
426 |
|
1,777 |
(76 |
%) |
Net
Income per Share |
|
$ |
0.01 |
$ |
0.03 |
(67 |
%) |
|
|
|
|
|
|
|
|
The Company reported net income of $426
thousand, or $0.01 per share, for the three month period ended
March 31, 2019, compared to $1.8 million, or $0.03 per share, for
the three month period ended March 31, 2018.
Interest income increased by $4.6 million, or
22%, to $25.5 million for the quarter ended March 31, 2019 compared
to $20.9 million for the quarter ended March 31, 2018. The increase
in interest income is attributable to the growth in
interest-earning assets over the last twelve months driven by the
Company’s “Power of Red is Back” expansion strategy. However,
interest expense increased by $3.6 million, or 129%, to $6.4
million for the quarter ended March 31, 2019 compared to $2.8
million for the quarter ended March 31, 2018. The increase in
interest expense was driven by increases in the fed funds rate
during 2018 which resulted in a higher cost of funds on deposit
balances and led to compression in the net interest margin. The net
interest margin for the three month period ended March 31, 2019
decreased by 23 basis points to 3.00% compared to 3.23% for the
three month period ended March 31, 2018.
Non-interest income increased by $0.5 million,
or 11%, to $5.0 million for the three month period ended March 31,
2019, compared to $4.5 million for the three month period ended
March 31, 2018. The increase is primarily attributable to higher
service fees on deposit accounts which is driven by growth in
deposit balances and an increase in the number of deposit
accounts.
Non-interest expenses increased by 16%, to $23.3
million during the quarter ended March 31, 2019 compared to $20.1
million during the quarter ended March 31, 2018. The growth in
expenses were mainly caused by an increase in salaries and employee
benefits driven by annual merit increases along with increased
staffing levels related to our growth and expansion strategy.
Occupancy and equipment expenses associated with the growth
strategy also contributed to the increase in non-interest expenses.
The Company has started to incur costs related to the expansion
into the New York market as we begin to hire a management and
lending team and commence rent payments for the build out of our
store locations.
The provision for income taxes was $92 thousand
for the three month period ended March 31, 2019 compared to a
provision for income taxes in the amount of $372 thousand for the
three month period ended March 31, 2018.
Balance Sheet
The major components of the balance sheet are as
follows (dollars in thousands):
|
|
|
|
|
|
Description |
03/31/19 |
03/31/18 |
% Change |
12/31/18 |
% Change |
|
|
|
|
|
|
Total
assets |
$ |
2,805,060 |
$ |
2,471,464 |
13 |
% |
$ |
2,753,279 |
2 |
% |
Total
loans (net) |
|
1,469,186 |
|
1,244,262 |
18 |
% |
|
1,427,983 |
3 |
% |
Total deposits |
|
2,478,953 |
|
2,123,451 |
17 |
% |
|
2,392,867 |
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total assets increased by $333.6 million, or
13%, as of March 31, 2019 when compared to March 31, 2018.
Deposits grew by $355.5 million to $2.5 billion as of March 31,
2019 compared to $2.1 billion as of March 31, 2018. The number of
deposit accounts has grown by 27% during the past twelve months.
The strong growth in assets, loans and deposits has been driven by
the addition of new stores and the successful execution of 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 |
03/31/19 |
03/31/18 |
% Change |
12/31/18 |
%Change |
1st Qtr 2019 Cost of Funds |
|
|
|
|
|
|
|
Demand
noninterest-bearing |
$ |
525,645 |
$ |
464,383 |
13 |
% |
$ |
519,056 |
1 |
% |
0.00 |
% |
Demand
interest-bearing |
|
1,101,129 |
|
826,726 |
33 |
% |
|
1,042,561 |
6 |
% |
1.43 |
% |
Money
market and savings |
|
691,351 |
|
703,263 |
(2 |
%) |
|
676,993 |
2 |
% |
0.87 |
% |
Certificates of deposit |
|
160,828 |
|
129,079 |
25 |
% |
|
154,257 |
4 |
% |
1.65 |
% |
Total deposits |
$ |
2,478,953 |
$ |
2,123,451 |
17 |
% |
$ |
2,392,867 |
4 |
% |
0.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits increased to $2.5 billion at March 31,
2019 compared to $2.1 billion at March 31, 2018 as the Company
moves forward with its growth strategy to increase the number of
stores and expand the reach of 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 strong
growth in demand deposit balances, including an increase in
non-interest bearing demand deposits of 13%, year over year as a
result of the successful execution of its strategy.
Lending
Loans by type are as follows (dollars in
thousands):
|
|
|
|
|
|
|
Description |
03/31/19 |
% of Total |
03/31/18 |
% of Total |
12/31/18 |
% ofTotal |
|
|
|
|
|
|
|
Commercial real estate |
$ |
527,004 |
36 |
% |
$ |
467,585 |
37 |
% |
$ |
515,738 |
36 |
% |
Construction and land
development |
|
124,124 |
8 |
% |
|
118,607 |
10 |
% |
|
121,042 |
8 |
% |
Commercial and industrial |
|
204,637 |
14 |
% |
|
189,420 |
15 |
% |
|
200,423 |
14 |
% |
Owner
occupied real estate |
|
376,845 |
26 |
% |
|
315,418 |
25 |
% |
|
367,895 |
26 |
% |
Consumer
and other |
|
92,728 |
6 |
% |
|
78,834 |
6 |
% |
|
91,136 |
6 |
% |
Residential mortgage |
|
151,748 |
10 |
% |
|
81,048 |
7 |
% |
|
140,364 |
10 |
% |
Gross
loans |
$ |
1,477,086 |
100 |
% |
$ |
1,250,912 |
100 |
% |
$ |
1,436,958 |
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans increased by $226 million, or 18%,
to $1.5 billion at March 31, 2019 compared to $1.3 billion at March
31, 2018 as a result of the steady flow in quality loan demand over
the last twelve months and continued success with the relationship
banking model. The Company experienced strong growth across all
loan categories.
Asset Quality
The Company’s asset quality ratios are
highlighted below:
|
|
|
Three Months Ended |
|
03/31/19 |
12/31/18 |
03/31/18 |
|
|
|
|
Non-performing assets / capital and reserves |
7 |
% |
7 |
% |
9 |
% |
Non-performing assets / total assets |
0.60 |
% |
0.60 |
% |
0.85 |
% |
Quarterly net loan charge-offs / average loans |
0.28 |
% |
0.02 |
% |
0.77 |
% |
Allowance for loan losses / gross loans |
0.53 |
% |
0.60 |
% |
0.53 |
% |
Allowance for loan losses / non-performing loans |
74 |
% |
83 |
% |
47 |
% |
|
|
|
|
|
|
|
The percentage of non-performing assets to total
assets decreased to 0.60% at March 31, 2019, compared to 0.85% at
March 31, 2018. The ratio of non-performing assets to capital
and reserves decreased to 7% at March 31, 2019 compared to 9% at
March 31, 2018 primarily as a result of decreases in non-performing
assets over the last 12 months.
Capital
The Company’s capital ratios at March 31, 2019
were as follows:
|
|
|
|
|
Actual03/31/19Bancorp |
Actual03/31/19Bank |
Regulatory Guidelines“Well
Capitalized” |
|
|
|
|
Leverage Ratio |
9.18 |
% |
8.05 |
% |
5.00 |
% |
Common
Equity Ratio |
13.37 |
% |
12.25 |
% |
6.50 |
% |
Tier 1
Risk Based Capital |
13.97 |
% |
12.25 |
% |
8.00 |
% |
Total
Risk Based Capital |
14.40 |
% |
12.69 |
% |
10.00 |
% |
Tangible Common Equity |
8.69 |
% |
7.84 |
% |
n/a |
|
|
|
|
|
|
|
|
Total shareholders’ equity increased to $248
million at March 31, 2019 compared to $234 million at March 31,
2018. Book value per common share increased to $4.22 at March 31,
2019 compared to $3.99 per share at March 31, 2018.
Analyst and Investor Call
An analyst and investor call will be held on the
following date and time:
|
|
|
Date: |
|
April 25, 2019 |
Time: |
|
10:00am (EDT) |
From the U.S. dial: |
|
(888) 771-4371 [Toll Free]
or (847) 585-4405 |
Participant Pin: |
|
48571782# |
|
|
|
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-six 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, 2018 and
other documents the Company files from time to time with the
Securities and Exchange Commission. The words “would be,” “could
be,” “should be,” “probability,” “risk,” “target,” “objective,”
“may,” “will,” “estimate,” “project,” “believe,” “intend,”
“anticipate,” “plan,” “seek,” “expect” and similar expressions or
variations on such expressions are intended to identify
forward-looking statements. All such statements are made in good
faith by the Company pursuant to the “safe harbor” provisions of
the U.S. Private Securities Litigation Reform Act of 1995. The
Company does not undertake to update any forward-looking statement,
whether written or oral, that may be made from time to time by or
on behalf of the Company, except as may be required by applicable
law or regulations.
Source:
Republic First Bancorp, Inc.
Contact:
Frank A. Cavallaro, CFO(215) 735-4422
Republic First Bancorp, Inc. |
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in
thousands, except per share amounts) |
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
31,511 |
|
|
$ |
35,685 |
|
|
$ |
21,927 |
|
|
|
Interest-bearing deposits and federal funds sold |
|
54,394 |
|
|
|
36,788 |
|
|
|
9,142 |
|
|
|
|
Total cash
and cash equivalents |
|
|
85,905 |
|
|
|
72,473 |
|
|
|
31,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
- Available for sale |
|
|
287,694 |
|
|
|
321,014 |
|
|
|
519,692 |
|
|
|
Securities
- Held to maturity |
|
|
742,435 |
|
|
|
761,563 |
|
|
|
519,295 |
|
|
|
Restricted
stock |
|
|
|
2,097 |
|
|
|
5,754 |
|
|
|
5,435 |
|
|
|
|
Total
investment securities |
|
|
1,032,226 |
|
|
|
1,088,331 |
|
|
|
1,044,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held
for sale |
|
|
|
15,742 |
|
|
|
26,291 |
|
|
|
25,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable |
|
|
|
1,477,086 |
|
|
|
1,436,598 |
|
|
|
1,250,912 |
|
|
|
Allowance
for loan losses |
|
|
(7,900 |
) |
|
|
(8,615 |
) |
|
|
(6,650 |
) |
|
|
|
Net loans |
|
|
|
|
1,469,186 |
|
|
|
1,427,983 |
|
|
|
1,244,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment |
|
|
94,390 |
|
|
|
87,661 |
|
|
|
77,153 |
|
|
|
Other real
estate owned |
|
|
|
6,088 |
|
|
|
6,223 |
|
|
|
6,966 |
|
|
|
Other
assets |
|
|
|
|
101,523 |
|
|
|
44,335 |
|
|
|
41,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
$ |
2,805,060 |
|
|
$ |
2,753,297 |
|
|
$ |
2,471,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
525,645 |
|
|
$ |
519,056 |
|
|
$ |
464,383 |
|
|
|
Interest
bearing deposits |
|
|
|
1,953,308 |
|
|
|
1,873,811 |
|
|
|
1,659,068 |
|
|
|
|
Total
deposits |
|
|
|
2,478,953 |
|
|
|
2,392,867 |
|
|
|
2,123,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
|
- |
|
|
|
91,422 |
|
|
|
93,915 |
|
|
|
Subordinated debt |
|
|
|
11,260 |
|
|
|
11,259 |
|
|
|
11,254 |
|
|
|
Other
liabilities |
|
|
|
66,462 |
|
|
|
12,560 |
|
|
|
8,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
|
2,556,675 |
|
|
|
2,508,108 |
|
|
|
2,237,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common
stock - $0.01 par value |
|
|
593 |
|
|
|
593 |
|
|
|
592 |
|
|
|
Additional
paid-in capital |
|
|
|
270,155 |
|
|
|
269,147 |
|
|
|
267,313 |
|
|
|
Accumulated
deficit |
|
|
|
(8,290 |
) |
|
|
(8,716 |
) |
|
|
(15,566 |
) |
|
|
Treasury
stock at cost |
|
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
Stock held
by deferred compensation plan |
|
(183 |
) |
|
|
(183 |
) |
|
|
(183 |
) |
|
|
Accumulated
other comprehensive loss |
|
(10,165 |
) |
|
|
(11,927 |
) |
|
|
(14,357 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Shareholders' Equity |
|
|
248,385 |
|
|
|
245,189 |
|
|
|
234,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
$ |
2,805,060 |
|
|
$ |
2,753,297 |
|
|
$ |
2,471,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Republic First Bancorp, Inc. |
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
(in
thousands, except per share amounts) |
|
2019 |
|
|
2018 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
17,800 |
|
$ |
17,555 |
|
|
$ |
14,269 |
|
|
|
Interest
and dividends on investment securities |
|
7,383 |
|
|
7,279 |
|
|
|
6,458 |
|
|
|
Interest on
other interest earning assets |
|
336 |
|
|
459 |
|
|
|
172 |
|
|
|
|
Total
interest income |
|
|
|
25,519 |
|
|
25,293 |
|
|
|
20,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
|
|
6,014 |
|
|
5,103 |
|
|
|
2,598 |
|
|
|
Interest on
borrowed funds |
|
|
365 |
|
|
210 |
|
|
|
185 |
|
|
|
|
Total
interest expense |
|
|
6,379 |
|
|
5,313 |
|
|
|
2,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
|
19,140 |
|
|
19,980 |
|
|
|
18,116 |
|
|
|
Provision
for loan losses |
|
|
|
300 |
|
|
600 |
|
|
|
400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income after provision for loan losses |
|
18,840 |
|
|
19,380 |
|
|
|
17,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Service
fees on deposit accounts |
|
|
1,612 |
|
|
1,589 |
|
|
|
1,175 |
|
|
|
Mortgage
banking income |
|
|
2,220 |
|
|
2,285 |
|
|
|
2,186 |
|
|
|
Gain on
sale of SBA loans |
|
|
502 |
|
|
451 |
|
|
|
992 |
|
|
|
Gain (loss)
on sale of investment securities |
|
322 |
|
|
(66 |
) |
|
|
- |
|
|
|
Other
non-interest income |
|
|
370 |
|
|
629 |
|
|
|
182 |
|
|
|
|
Total
non-interest income |
|
|
5,026 |
|
|
4,888 |
|
|
|
4,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
12,359 |
|
|
11,351 |
|
|
|
10,645 |
|
|
|
Occupancy
and equipment |
|
|
4,096 |
|
|
3,410 |
|
|
|
3,470 |
|
|
|
Legal and
professional fees |
|
|
707 |
|
|
642 |
|
|
|
759 |
|
|
|
Foreclosed
real estate |
|
|
|
337 |
|
|
707 |
|
|
|
311 |
|
|
|
Regulatory
assessments and related fees |
|
421 |
|
|
417 |
|
|
|
467 |
|
|
|
Other
operating expenses |
|
|
5,428 |
|
|
5,530 |
|
|
|
4,450 |
|
|
|
|
Total
non-interest expense |
|
|
23,348 |
|
|
22,057 |
|
|
|
20,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before benefit for income taxes |
|
|
518 |
|
|
2,211 |
|
|
|
2,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
|
|
92 |
|
|
54 |
|
|
|
372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
$ |
426 |
|
$ |
2,157 |
|
|
$ |
1,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
per Common Share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.01 |
|
$ |
0.04 |
|
|
$ |
0.03 |
|
|
|
Diluted |
|
|
|
$ |
0.01 |
|
$ |
0.04 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
58,805 |
|
|
58,789 |
|
|
|
57,100 |
|
|
|
Diluted |
|
|
|
|
59,587 |
|
|
59,672 |
|
|
|
58,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2019 |
|
December 31, 2018 |
|
March 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
|
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-earning assets |
|
$ |
55,369 |
|
$ |
336 |
|
2.46 |
% |
|
$ |
80,416 |
|
$ |
459 |
|
2.26 |
% |
|
$ |
40,425 |
|
$ |
172 |
|
1.73 |
% |
Securities |
|
|
1,085,910 |
|
|
7,420 |
|
2.73 |
% |
|
|
1,068,065 |
|
|
7,315 |
|
2.74 |
% |
|
|
1,015,605 |
|
|
6,487 |
|
2.55 |
% |
Loans receivable |
|
|
1,468,640 |
|
|
17,911 |
|
4.95 |
% |
|
|
1,427,260 |
|
|
17,660 |
|
4.91 |
% |
|
|
1,235,124 |
|
|
14,365 |
|
4.72 |
% |
Total interest-earning
assets |
|
|
2,609,919 |
|
|
25,667 |
|
3.99 |
% |
|
|
2,575,741 |
|
|
25,434 |
|
3.92 |
% |
|
|
2,291,154 |
|
|
21,024 |
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
190,855 |
|
|
|
|
|
|
134,411 |
|
|
|
|
|
|
127,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,800,774 |
|
|
|
|
|
$ |
2,710,152 |
|
|
|
|
|
$ |
2,418,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand non
interest-bearing |
|
$ |
512,172 |
|
|
|
|
|
$ |
528,568 |
|
|
|
|
|
$ |
431,234 |
|
|
|
|
Demand
interest-bearing |
|
|
1,113,758 |
|
|
3,938 |
|
1.43 |
% |
|
|
1,073,140 |
|
|
3,192 |
|
1.18 |
% |
|
|
893,530 |
|
|
1,257 |
|
0.57 |
% |
Money market &
savings |
|
|
675,506 |
|
|
1,452 |
|
0.87 |
% |
|
|
702,322 |
|
|
1,444 |
|
0.82 |
% |
|
|
687,818 |
|
|
972 |
|
0.57 |
% |
Time deposits |
|
|
153,832 |
|
|
624 |
|
1.65 |
% |
|
|
133,675 |
|
|
467 |
|
1.39 |
% |
|
|
129,897 |
|
|
369 |
|
1.15 |
% |
Total deposits |
|
|
2,455,268 |
|
|
6,014 |
|
0.99 |
% |
|
|
2,437,705 |
|
|
5,103 |
|
0.83 |
% |
|
|
2,142,479 |
|
|
2,598 |
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
deposits |
|
|
1,943,096 |
|
|
6,014 |
|
1.26 |
% |
|
|
1,909,137 |
|
|
5,103 |
|
1.06 |
% |
|
|
1,711,245 |
|
|
2,598 |
|
0.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other borrowings |
|
|
46,969 |
|
|
365 |
|
3.15 |
% |
|
|
24,354 |
|
|
210 |
|
3.42 |
% |
|
|
40,552 |
|
|
185 |
|
1.85 |
% |
|
|
|
|
|
|
. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities |
|
|
1,990,065 |
|
|
6,379 |
|
1.30 |
% |
|
|
1,933,491 |
|
|
5,313 |
|
1.09 |
% |
|
|
1,751,797 |
|
|
2,783 |
|
0.64 |
% |
Total deposits
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other borrowings |
|
|
2,502,237 |
|
|
6,379 |
|
1.03 |
% |
|
|
2,462,059 |
|
|
5,313 |
|
0.86 |
% |
|
|
2,183,031 |
|
|
2,783 |
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest-bearing
liabilities |
|
|
52,037 |
|
|
|
|
|
|
9,690 |
|
|
|
|
|
|
9,540 |
|
|
|
|
Shareholders'
equity |
|
|
246,500 |
|
|
|
|
|
|
238,403 |
|
|
|
|
|
|
225,584 |
|
|
|
|
Total liabilities
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders'
equity |
|
$ |
2,800,774 |
|
|
|
|
|
$ |
2,710,152 |
|
|
|
|
|
$ |
2,418,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
19,288 |
|
|
|
|
|
$ |
20,121 |
|
|
|
|
|
$ |
18,241 |
|
|
Net interest
spread |
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
2.83 |
% |
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
3.10 |
% |
|
|
|
|
|
3.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
8,615 |
|
|
$ |
8,084 |
|
|
$ |
8,599 |
|
|
|
|
|
|
|
|
|
Provision charged to
operating expense |
|
300 |
|
|
|
600 |
|
|
|
400 |
|
|
|
|
8,915 |
|
|
|
8,684 |
|
|
|
8,999 |
|
|
|
|
|
|
|
|
|
Recoveries on loans
charged-off: |
|
|
|
|
|
|
Commercial |
|
1 |
|
|
|
5 |
|
|
|
- |
|
|
Consumer |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
Total recoveries |
|
2 |
|
|
|
5 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Loans charged-off: |
|
|
|
|
|
|
Commercial |
|
(929 |
) |
|
|
(68 |
) |
|
|
(2,151 |
) |
|
Consumer |
|
(88 |
) |
|
|
(6 |
) |
|
|
(198 |
) |
|
|
|
|
|
|
|
|
Total charged-off |
|
(1,017 |
) |
|
|
(74 |
) |
|
|
(2,349 |
) |
|
|
|
|
|
|
|
|
Net charge-offs |
|
(1,015 |
) |
|
|
(69 |
) |
|
|
(2,349 |
) |
|
|
|
|
|
|
|
|
Balance at end of
period |
$ |
7,900 |
|
|
$ |
8,615 |
|
|
$ |
6,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a
percentage |
|
|
|
|
|
|
of average loans outstanding |
|
0.28 |
% |
|
|
0.02 |
% |
|
|
0.77 |
% |
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage |
|
|
|
|
|
|
of period-end loans |
|
0.53 |
% |
|
|
0.60 |
% |
|
|
0.53 |
% |
|
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) |
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
8,096 |
|
|
$ |
9,463 |
|
|
$ |
12,661 |
|
|
$ |
13,297 |
|
|
$ |
13,322 |
|
Consumer and other |
|
836 |
|
|
|
878 |
|
|
|
818 |
|
|
|
809 |
|
|
|
810 |
|
Total non-accrual
loans |
|
8,932 |
|
|
|
10,341 |
|
|
|
13,479 |
|
|
|
14,106 |
|
|
|
14,132 |
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days
or more |
|
|
|
|
|
|
|
|
|
and still
accruing |
|
1,744 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans |
|
10,676 |
|
|
|
10,341 |
|
|
|
13,479 |
|
|
|
14,106 |
|
|
|
14,132 |
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
6,088 |
|
|
|
6,223 |
|
|
|
6,768 |
|
|
|
6,559 |
|
|
|
6,966 |
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
assets |
$ |
16,764 |
|
|
$ |
16,564 |
|
|
$ |
20,247 |
|
|
$ |
20,665 |
|
|
$ |
21,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to
total loans |
|
0.72 |
% |
|
|
0.72 |
% |
|
|
0.98 |
% |
|
|
1.07 |
% |
|
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets |
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.76 |
% |
|
|
0.81 |
% |
|
|
0.85 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing loan
coverage |
|
74.00 |
% |
|
|
83.31 |
% |
|
|
59.97 |
% |
|
|
53.64 |
% |
|
|
47.06 |
% |
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage |
|
|
|
|
|
|
|
|
|
of total period-end loans |
|
0.53 |
% |
|
|
0.60 |
% |
|
|
0.59 |
% |
|
|
0.57 |
% |
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing assets /
capital plus |
|
|
|
|
|
|
|
|
|
allowance for loan losses |
|
6.54 |
% |
|
|
6.53 |
% |
|
|
8.30 |
% |
|
|
8.51 |
% |
|
|
8.76 |
% |
Republic First Bancorp (NASDAQ:FRBK)
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