FRBK Republic First Bancorp Inc

Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2019.

Q3-2019 Highlights

• Total deposits increased by $340 million, or 14%, to $2.7 billion as of September 30, 2019 compared to $2.4 billion as of September 30, 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 $24 million per year, while the average deposit growth for all stores over the last twelve months was approximately $14 million per store. 
• Expansion into New York City began with the opening of our first store located on the corner of 14th Street and 5th Avenue during the third quarter. 
• Total loans grew $191 million, or 14%, to $1.6 billion as of September 30, 2019 compared to $1.4 billion at September 30, 2018. 
• Profitability declined as the Company reported a net loss of $1.8 million, or ($0.03) per share, during the third quarter of 2019 compared to net income of $2.3 million, or $0.04 per share during the third quarter of 2018.

“The Power of Red is Back” in New York City. During the third quarter we launched our expansion into New York City with the opening of our newest store on the corner of 14th Street and 5th Avenue. We immediately began converting customers into FANS by treating them with the legendary customer service and convenience that Republic Bank is known for.  We anxiously await the opening of our second New York store at 51st Street and 3rd Avenue, which we expect to complete in early November, to share our FANatical approach to banking with an ever growing FAN base.

Third quarter results were negatively impacted by continued compression of our net interest margin caused by a flat and, at times, an inverted yield curve. The shape of the yield curve is driving lower yields on interest earning assets and higher rates on interest bearing liabilities. In the midst of this challenging interest rate environment we have also incurred costs required to expand into New York City. In addition to new hires, training, advertising, and occupancy expenses for the opening of our first two stores in New York this year, we have also established a management and lending team for this new market.

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

“We are thrilled to bring The Power of Red Back to New York City. At a time when most banks are closing branches and retreating from the communities they serve, Republic Bank continues in its relentless pursuit to deliver an unmatched banking experience across every delivery channel. We are extremely excited to have the opportunity to create new FANS in the City of New York. Today we face a difficult challenge as the shape of the yield curve limits our ability to increase net interest income proportionate to the growth in our balance sheet. We are evaluating all opportunities to improve profitability in this challenging rate environment.”

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

“Since the inception of The Power of Red is Back growth campaign we have demonstrated consistent growth in the balance sheet through organic growth in loans and deposits. The results have been a testament to the strength of our model and the unmatched commitment to customer service by every member of the Republic Bank Team. The current interest rate environment has put a significant strain on profitability in recent quarters. We will assess every opportunity within our control to enhance earnings.”

A summary of the financial results for the period ended September 30, 2019 can be found in the following tables:

($ in millions, except per share data)
		09/30/19			09/30/18			YOY Change			12/31/18			YTD Change
Assets		$	3,086		$	2,657		16	%		$	2,753		12	%
Loans			1,569			1,379		14	%			1,437		9	%
Deposits			2,740			2,400		14	%			2,393		15	%

 

		Three Months Ended											Nine Months Ended
		09/30/19				09/30/18				Change			09/30/19				09/30/18				Change
Total Revenue		$	32.8			$	28.7			14	%		$	96.5			$	82.2			17	%
Net Income (Loss)			(1.8	)			2.3			(178	%)			(1.0	)			6.5			(116	%)
Net Income (Loss) per Share		$	(0.03	)		$	0.04			(175	%)		$	(0.02	)		$	0.11			(118	%)
Net Interest Margin			2.82	%			3.14	%						2.92	%			3.18	%

Financial Highlights for the Period Ended September 30, 2019

• Total assets increased by $429 million, or 16%, to $3.1 billion as of September 30, 2019 compared to $2.7 billion as of September 30, 2018. 
• We have twenty-eight convenient store locations open today. During the third quarter of 2019 we celebrated the grand opening of our first store in New York City located at 14th Street and 5th Avenue.  
• Construction on our next site in New York located at 51st Street & 3rd Avenue is ongoing and expected to be complete during the fourth quarter. We’ve also broken ground on sites in Northfield, NJ and Bensalem, PA. There are multiple sites in various stages of development for future store locations. 
• Profitability declined during the third quarter. The Company recorded a net loss of $1.8 million, or ($0.03) per share, for the three months ended September 30, 2019 compared to net income of $0.4 million, or $0.01 per share for the three months ended June 30, 2019 and net income of $2.3 million, or $0.04 per share, for the three months ended September 30, 2018.  
• The net interest margin decreased by 32 basis points to 2.82% for the three months ended September 30, 2019 compared to 3.14% for the three months ended September 30, 2018. Margin compression was driven by the flat and inverted yield curve experienced during the third quarter of 2019. 
• The ratio of non-performing assets to total assets declined to 0.61% as of September 30, 2019 compared to 0.76% as of September 30, 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 $390 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 $43 million in new SBA loans were originated during the nine month period ended September 30, 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 13.53% and Tier I Leverage Ratio was 8.60% at September 30, 2019. 
• Book value per common share increased to $4.26 as of September 30, 2019 compared to $4.01 as of September 30, 2018.

Income Statement

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

	Three Months Ended
	09/30/19				06/30/19			% Change			09/30/18			% Change
Net Interest Income	$	19,382			$	19,371		-	%		$	19,146		1	%
Non-interest Income		6,554				7,026		(7	%)			5,131		28	%
Provision for Loan Losses		450				-		n/	m			500		(10	%)
Non-interest Expense		27,824				25,911		7	%			20,833		34	%
Income (Loss) Before Taxes		(2,338	)			486		(581	%)			2,944		(179	%)
Provision (Benefit) for Taxes		(516	)			105		(591	%)			622		(183	%)
Net Income (Loss)		(1,822	)			381		(578	%)			2,322		(178	%)
Net Income (Loss) per Share	$	(0.03	)		$	0.01		(400	%)		$	0.04		(175	%)

 

	Nine Months Ended
		09/30/19			09/30/18		% Change
Net Interest Income		$	57,893		$	55,924	4	%
Non-interest Income			18,525			15,434	20	%
Provision for Loan Losses			750			1,700	(56	%)
Non-interest Expense			77,002			61,664	25	%
Income (Loss) Before Taxes			(1,334	)		7,994	(117	%)
Provision (Benefit) for Taxes			(319	)		1,524	(121	%)
Net Income (Loss)			(1,015	)		6,470	(116	%)
Net Income (Loss) per Share		$	(0.02	)	$	0.11	(118	%)

The Company reported a net loss of $1.8 million, or ($0.03) per share, for the three month period ended September 30, 2019, compared to net income of $381 thousand, or $0.01 per share for the three month period ended June 30, 2019 and net income of $2.3 million, or $0.04 per share, for the three month period ended September 30, 2018.  The net loss for the nine month period ended September 30, 2019 was $1.0 million, or ($0.02) per share, compared to net income of $6.5 million, or $0.11 per share, for the nine months ended September 30, 2018.

Current year profitability has been impacted by the expenses incurred to expand into the New York market and continued compression of the net interest margin.

Interest income increased by $2.7 million, or 11%, to $26.2 million for the quarter ended September 30, 2019 compared to $23.6 million for the quarter ended September 30, 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 $2.4 million, or 55%, to $6.8 million for the quarter ended September 30, 2019 compared to $4.4 million for the quarter ended September 30, 2018. The increase in interest expense was driven by multiple 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. On a linked quarter basis, the deposit cost of funds has begun to decline as a result of two reductions in the fed funds rate during the third quarter of 2019. The net interest margin for the three month period ended September 30, 2019 decreased by 32 basis points to 2.82% compared to 3.14% for the three month period ended September 30, 2018.

Non-interest income increased by $1.4 million, or 28%, to $6.6 million for the three month period ended September 30, 2019, compared to $5.1 million for the three month period ended September 30, 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. An increase in gains on sales of investment securities also contributed to the increase in non-interest income during the third quarter of 2019.

Non-interest expenses increased by 34%, to $27.8 million during the quarter ended September 30, 2019 compared to $20.8 million during the quarter ended September 30, 2018. The growth in expenses was driven by an increase in salaries and employee benefits as a result of 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. Throughout 2019, we’ve incurred costs related to our expansion into the New York market. Our first store in New York opened during the third quarter of 2019 and our second location is now under construction. In addition, we’ve hired a management and lending team to operate in this new market. Rent payments have commenced for our store locations and we’ve initiated a marketing and advertising campaign to announce our expansion.

The benefit for income taxes was $516 thousand for the three month period ended September 30, 2019 compared to a provision for income taxes in the amount of $622 thousand for the three month period ended September 30, 2018.

Balance Sheet

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

Description	09/30/19		09/30/18		% Change		06/30/19		% Change
Total assets	$	3,085,921	$	2,657,206	16	%	$	2,940,986	5	%
Total loans (net)		1,560,913		1,370,704	14	%		1,500,664	4	%
Total deposits		2,740,032		2,400,358	14	%		2,527,977	8	%

Total assets increased by $428.7 million, or 16%, as of September 30, 2019 when compared to September 30, 2018.  Deposits grew by $339.7 million to $2.7 billion as of September 30, 2019 compared to $2.4 billion as of September 30, 2018. The number of deposit accounts has grown by 28% 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	09/30/19		09/30/18		% Change		06/30/19		%Change		3rd Qtr 2019 Cost of Funds
Demand noninterest-bearing	$	595,869	$	509,188	17	%	$	544,406	9	%	0.00	%
Demand interest-bearing		1,227,969		1,058,670	16	%		1,072,415	15	%	1.27	%
Money market and savings		698,991		703,358	(1	%)		719,075	(3	%)	1.02	%
Certificates of deposit		217,203		129,142	68	%		192,081	13	%	2.14	%
Total deposits	$	2,740,032	$	2,400,358	14	%	$	2,527,977	8	%	1.00	%

Deposits increased to $2.7 billion at September 30, 2019 compared to $2.4 billion at September 30, 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 and certificates of deposit, year over year as a result of the successful execution of its strategy.

Lending

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

Description	09/30/19		% of Total		09/30/18		% of Total		06/30/19		% of Total
Commercial real estate	$	570,327	36	%	$	495,529	36	%	$	553,644	37	%
Construction and land development		109,582	7	%		125,512	9	%		111,474	7	%
Commercial and industrial		187,837	12	%		195,493	14	%		189,632	13	%
Owner occupied real estate		397,843	26	%		358,956	26	%		381,852	25	%
Consumer and other		98,293	6	%		86,922	6	%		98,155	6	%
Residential mortgage		205,498	13	%		116,376	9	%		173,963	12	%
Gross loans	$	1,569,380	100	%	$	1,378,788	100	%	$	1,508,720	100	%

Gross loans increased by $191 million, or 14%, to $1.6 billion at September 30, 2019 compared to $1.4 billion at September 30, 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 strongest growth in commercial real estate, owner occupied real estate and residential mortgage loans year over year.

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Three Months Ended
	09/30/19		06/30/19		09/30/18
Non-performing assets / capital and reserves	7	%	6	%	8	%
Non-performing assets / total assets	0.61	%	0.53	%	0.76	%
Quarterly net loan charge-offs / average loans	0.01	%	(0.04	%)	(0.01	%)
Allowance for loan losses / gross loans	0.54	%	0.53	%	0.59	%
Allowance for loan losses / non-performing loans	70	%	86	%	60	%

The percentage of non-performing assets to total assets decreased to 0.61% at September 30, 2019, compared to 0.76% at September 30, 2018.  The ratio of non-performing assets to capital and reserves decreased to 7% at September 30, 2019 compared to 8% at September 30, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at September 30, 2019 were as follows:

	Actual09/30/19Bancorp		Actual09/30/19Bank		Regulatory Guidelines“Well Capitalized”
Leverage Ratio	8.60	%	8.23	%	5.00	%
Common Equity Ratio	12.53	%	12.55	%	6.50	%
Tier 1 Risk Based Capital	13.10	%	12.55	%	8.00	%
Total Risk Based Capital	13.53	%	12.98	%	10.00	%
Tangible Common Equity	7.98	%	7.87	%	n/a

Total shareholders’ equity increased to $251 million at September 30, 2019 compared to $236 million at September 30, 2018. Book value per common share increased to $4.26 at September 30, 2019 compared to $4.01 per share at September 30, 2018.

Analyst and Investor Call

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

Date:	October 28, 2019
Time:	11:00am (EDT)
From the U.S. dial:	(800) 774-6070 [Toll Free] or (630) 691-2753
Participant Pin:	5866531#
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-eight stores located in the Greater Philadelphia, Southern New Jersey and New York City markets.  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)
				September 30,				June 30,				September 30,
(dollars in thousands, except per share amounts)					2019				2019				2018
ASSETS
	Cash and due from banks			$	57,562			$	38,770			$	37,303
	Interest-bearing deposits and federal funds sold				143,915				90,744				108,996
		Total cash and cash equivalents			201,477				129,514				146,299
	Securities - Available for sale				379,962				338,286				487,524
	Securities - Held to maturity				687,425				718,534				485,291
	Restricted stock				2,371				5,130				1,916
		Total investment securities			1,069,758				1,061,950				974,731
	Loans held for sale				21,210				23,412				32,839
	Loans receivable				1,569,380				1,508,720				1,378,788
	Allowance for loan losses				(8,467	)			(8,056	)			(8,084	)
		Net loans			1,560,913				1,500,664				1,370,704
	Premises and equipment				111,573				105,311				81,912
	Other real estate owned				6,653				6,406				6,768
	Other assets				114,337				113,729				43,953
	Total Assets			$	3,085,921			$	2,940,986			$	2,657,206
LIABILITIES
	Non-interest bearing deposits			$	595,869			$	544,406			$	509,188
	Interest bearing deposits				2,144,163				1,983,571				1,891,170
		Total deposits			2,740,032				2,527,977				2,400,358
	Short-term borrowings				-				68,979				-
	Subordinated debt				11,263				11,262				11,257
	Other liabilities				83,783				81,410				9,767
	Total Liabilities				2,835,078				2,689,628				2,421,382
SHAREHOLDERS' EQUITY
	Common stock - $0.01 par value				594				594				593
	Additional paid-in capital				271,412				270,789				268,613
	Accumulated deficit				(9,731	)			(7,909	)			(10,873	)
	Treasury stock at cost				(3,725	)			(3,725	)			(3,725	)
	Stock held by deferred compensation plan				(183	)			(183	)			(183	)
	Accumulated other comprehensive loss				(7,524	)			(8,208	)			(18,601	)
	Total Shareholders' Equity				250,843				251,358				235,824
	Total Liabilities and Shareholders' Equity			$	3,085,921			$	2,940,986			$	2,657,206

 

Republic First Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
			Three Months Ended										Nine Months Ended
			September 30,				June 30,			September 30,			September 30,				September 30,
(in thousands, except per share amounts)				2019				2019			2018			2019				2018
INTEREST INCOME
	Interest and fees on loans		$	18,707			$	18,569		$	16,764		$	55,076			$	46,490
	Interest and dividends on investment securities			6,724				7,158			6,641			21,265				19,903
	Interest on other interest earning assets			777				518			153			1,631				388
		Total interest income		26,208				26,245			23,558			77,972				66,781
INTEREST EXPENSE
	Interest on deposits			6,689				6,695			3,642			19,398				9,329
	Interest on borrowed funds			137				179			770			681				1,528
		Total interest expense		6,826				6,874			4,412			20,079				10,857
	Net interest income			19,382				19,371			19,146			57,893				55,924
	Provision for loan losses			450				-			500			750				1,700
	Net interest income after provision for loan losses			18,932				19,371			18,646			57,143				54,224
NON-INTEREST INCOME
	Service fees on deposit accounts			1,990				1,848			1,386			5,450				3,887
	Mortgage banking income			2,797				3,031			2,580			8,048				7,948
	Gain on sale of SBA loans			944				1,147			816			2,593				2,654
	Gain (loss) on sale of investment securities			520				261			-			1,103				(1	)
	Other non-interest income			303				739			349			1,331				946
		Total non-interest income		6,554				7,026			5,131			18,525				15,434
NON-INTEREST EXPENSE
	Salaries and employee benefits			14,314				13,705			11,203			40,378				32,731
	Occupancy and equipment			4,734				4,221			3,260			12,970				10,083
	Legal and professional fees			1,123				1,058			773			2,888				2,391
	Foreclosed real estate			799				517			378			1,653				881
	Regulatory assessments and related fees			62				421			396			904				1,258
	Other operating expenses			6,792				5,989			4,823			18,209				14,320
		Total non-interest expense		27,824				25,911			20,833			77,002				61,664
Income (loss) before provision (benefit) for income taxes				(2,338	)			486			2,944			(1,334	)			7,994
Provision (benefit) for income taxes				(516	)			105			622			(319	)			1,524
Net income (loss)			$	(1,822	)		$	381		$	2,322		$	(1,015	)		$	6,470
Net Income (Loss) per Common Share
	Basic		$	(0.03	)		$	0.01		$	0.04		$	(0.02	)		$	0.11
	Diluted		$	(0.03	)		$	0.01		$	0.04		$	(0.02	)		$	0.11
Average Common Shares Outstanding
	Basic			58,843				58,841			58,774			58,830				58,213
	Diluted			59,207				59,401			59,774			59,416				59,338

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)		September 30, 2019									June 30, 2019									September 30, 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		$	146,446		$	777		2.10	%		$	85,920		$	518		2.42	%		$	29,163		$	153		2.08	%
Securities			1,055,154			6,743		2.56	%			1,067,185			7,184		2.69	%			1,018,910			6,676		2.62	%
Loans receivable			1,540,834			18,816		4.84	%			1,509,177			18,681		4.96	%			1,390,894			16,873		4.81	%
Total interest-earning assets			2,742,434			26,336		3.81	%			2,662,282			26,383		3.97	%			2,438,967			23,702		3.86	%
Other assets			247,682									217,685									135,139
Total assets		$	2,990,116								$	2,879,967								$	2,574,106
Interest-bearing liabilities:
Demand non interest-bearing		$	563,691								$	525,336								$	513,292
Demand interest-bearing			1,168,404			3,752		1.27	%			1,144,783			4,206		1.47	%			861,607			1,948		0.90	%
Money market & savings			702,547			1,814		1.02	%			697,279			1,628		0.94	%			699,081			1,308		0.74	%
Time deposits			208,624			1,123		2.14	%			176,750			861		1.95	%			126,378			386		1.21	%
Total deposits			2,643,266			6,689		1.00	%			2,544,148			6,695		1.06	%			2,200,358			3,642		0.66	%
Total interest-bearing deposits			2,079,575			6,689		1.28	%			2,018,812			6,695		1.33	%			1,687,066			3,642		0.86	%
Other borrowings			14,037			137		3.87	%			19,864			179		3.61	%			127,150			770		2.40	%
Total interest-bearing liabilities			2,093,612			6,826		1.29	%			2,038,676			6,874		1.35	%			1,814,216			4,412		0.96	%
Total deposits and other borrowings			2,657,303			6,826		1.02	%			2,564,012			6,874		1.08	%			2,327,508			4,412		0.75	%
Non interest-bearing liabilities			81,872									66,780									10,363
Shareholders' equity			250,941									249,175									236,235
Total liabilities and
shareholders' equity		$	2,990,116								$	2,879,967								$	2,574,106
Net interest income					$	19,510								$	19,509								$	19,290
Net interest spread								2.52	%								2.62	%								2.90	%
Net interest margin								2.82	%								2.94	%								3.14	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
		For the nine months ended									For the nine months ended
(dollars in thousands)		September 30, 2019									September 30, 2018
					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		$	96,245		$	1,631		2.27	%		$	27,625		$	388		1.88	%
Securities			1,069,304			21,347		2.66	%			1,027,614			20,001		2.60	%
Loans receivable			1,506,482			55,408		4.92	%			1,310,750			46,795		4.77	%
Total interest-earning assets			2,672,031			78,386		3.92	%			2,365,989			67,184		3.80	%
Other assets			218,947									130,344
Total assets		$	2,890,978								$	2,496,333
Interest-bearing liabilities:
Demand non interest-bearing		$	533,922								$	475,659
Demand interest-bearing			1,142,515			11,896		1.39	%			866,397			4,754		0.73	%
Money market & savings			691,876			4,894		0.95	%			695,386			3,454		0.66	%
Time deposits			179,936			2,608		1.94	%			127,281			1,121		1.18	%
Total deposits			2,548,249			19,398		1.02	%			2,164,723			9,329		0.58	%
Total interest-bearing deposits			2,014,327			19,398		1.29	%			1,689,064			9,329		0.74	%
Other borrowings			26,836			681		3.39	%			90,160			1,528		2.27	%
Total interest-bearing liabilities			2,041,163			20,079		1.32	%			1,779,224			10,857		0.82	%
Total deposits and other borrowings			2,575,085			20,079		1.04	%			2,254,883			10,857		0.64	%
Non interest-bearing liabilities			67,182									9,534
Shareholders' equity			248,711									231,916
Total liabilities and shareholders' equity		$	2,890,978								$	2,496,333
Net interest income					$	58,307								$	56,327
Net interest spread								2.60	%								2.98	%
Net interest margin								2.92	%								3.18	%
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				Nine months ended
	September 30,				June 30,				September 30,				Dec 31				September 30,				September 30,
(dollars in thousands)	2019				2019				2018				2018				2019				2018
Balance at beginning of period	$	8,056			$	7,900			$	7,566			$	8,599			$	8,615			$	8,599
Provision charged to operating expense		450				-				500				2,300				750				1,700
		8,506				7,900				8,066				10,899				9,365				10,299
Recoveries on loans charged-off:
Commercial		59				154				18				152				214				147
Consumer		3				3				1				2				7				2
Total recoveries		62				157				19				154				221				149
Loans charged-off:
Commercial		(72	)			(1	)			-				(2,219	)			(1,002	)			(2,151	)
Consumer		(29	)			-				(1	)			(219	)			(117	)			(213	)
Total charged-off		(101	)			(1	)			(1	)			(2,438	)			(1,119	)			(2,364	)
Net charge-offs		(39	)			156				18				(2,284	)			(898	)			(2,215	)
Balance at end of period	$	8,467			$	8,056			$	8,084			$	8,615			$	8,467			$	8,084
Net charge-offs as a percentage of average loans outstanding		0.01	%			(0.04	%)			(0.01	%)			0.17	%			0.08	%			0.23	%
Allowance for loan losses as a percentage of period-end loans		0.54	%			0.53	%			0.59	%			0.60	%			0.54	%			0.59	%

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)	2019				2019				2019				2018				2018
Non-accrual loans:
Commercial real estate	$	10,180			$	7,545			$	8,096			$	9,463			$	12,661
Consumer and other		1,743				1,777				836				878				818
Total non-accrual loans		11,923				9,322				8,932				10,341				13,479
Loans past due 90 days or more and still accruing		129				-				1,744				-				-
Total non-performing loans		12,052				9,322				10,676				10,341				13,479
Other real estate owned		6,653				6,406				6,088				6,223				6,768
Total non-performing assets	$	18,705			$	15,728			$	16,764			$	16,564			$	20,247
Non-performing loans to total loans		0.77	%			0.62	%			0.72	%			0.72	%			0.98	%
Non-performing assets to total assets		0.61	%			0.53	%			0.60	%			0.60	%			0.76	%
Non-performing loan coverage		70.25	%			86.42	%			74.00	%			83.31	%			59.97	%
Allowance for loan losses as a percentage of total period-end loans		0.54	%			0.53	%			0.53	%			0.60	%			0.59	%
Non-performing assets / capital plus allowance for loan losses		7.21	%			6.06	%			6.54	%			6.53	%			8.30	%