Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2020.

Q2-2020 Financial Highlights

  • During the second quarter of 2020 Republic Bank was named as America’s # 1 Bank for Service in a recent national Forbes survey to identify which financial institutions have the most satisfied customers. 
  • We originated $682 million in loans under the Paycheck Protection Program (PPP) administered by the SBA providing crucial funding for small business throughout our footprint. Gross origination fees of $22 million were earned through this program which will be recognized as income over the life of the loans. 
  • Profitability improved as the Company reported net income of $2.5 million, or $0.04 per share, during the second quarter of 2020 compared to a net loss of $0.6 million, or ($0.01) per share during the first quarter of 2020. 
  • Pre-tax pre-provision earnings (PTPP) increased to $4.2 million during the second quarter of 2020 compared to $27 thousand in the first quarter of 2020 and $0.5 million in the second quarter of 2019. 
  • On a linked quarter basis, total revenue increased 13% during the second quarter of 2020 while non-interest expense decreased by 2% compared to the first quarter of 2020. Year over year total revenue increased 17% and non-interest expense increased 3% during the quarter ended June 30, 2020 compared to the quarter ended June 30, 2019. 
  • Asset quality continues to improve as the ratio of non-performing assets to total assets declined to 0.31% as of June 30, 2020. Only 2% of our loan customers were deferring loan payments as of July 24, 2020. These deferrals relate to approximately 7% of outstanding loan balances excluding PPP loans. 
  • Total loans grew $1.0 billion, or 69%, to $2.5 billion as of June 30, 2020 compared to $1.5 billion at June 30, 2019. Excluding the impact of the PPP loan program loans grew $380 million, or 25%, year over year. 
  • Total deposits increased by $1.1 billion, or 44%, to $3.6 billion as of June 30, 2020 compared to $2.5 billion as of June 30, 2019. Excluding the impact of the PPP loan program deposits grew $716 million, or 28%, year over year.

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

“In the second quarter ‘The Power of Red is Back’ expansion campaign continued to deliver exceptional service during these unprecedented times. Our stores remained operational throughout the quarter serving customers in any way possible in a safe and efficient manner. Through our participation in the PPP loan program authorized by the CARES Act we were able assist thousands of small businesses by providing critical access to funding to support operations in the midst of an economic shutdown.”

“In recognition of our unwavering commitment to extraordinary customer service and convenience our FANS responded to a recent Forbes survey and Republic was ranked as America’s #1 Bank for Service. The goal of our model is to create FANS NOT CUSTOMERS, who join our brand, remain loyal and refer family and friends.  The results of the Forbes survey not only demonstrates the success of our model, but also shows that we deliver on our commitment to service better that every other bank in the country.”

Republic will launch its new brand campaign as America’s #1 Bank for Service during the third quarter of 2020.

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

“Net income during 2019 was negatively impacted by the challenging nature of the interest rate environment and costs required to initiate our expansion into New York City. During the second quarter of 2020 we returned to profitability through the dedication and commitment of every member of the Republic Bank Team to improve earnings. We have consistently stated that it is our goal 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. We are focused on meeting that goal in the most efficient manner possible.”

Paycheck Protection Program

During the second quarter the Republic Bank Team turned its attention to the needs of small businesses in our community. The Paycheck Protection Program included in the CARES Act authorized financial institutions to make loans to companies that have been impacted by the devastating economic effects of the coronavirus (COVID-19) pandemic. We responded by quickly developing a process to accept applications for the program not only from our valued small business customers, but from non-customers throughout the community as well.

PPP Loan Program Highlights

Republic Bank recognized the SBA PPP Loan Program as an opportunity to help existing and new small business customers actively participated in the program by accepting applications.

As of June 30, 2020 Republic has:

  • Originated $682 million in PPP loans 
  • Related to more than 4,800 PPP loan applications 
  • More than 50% of the applications received were from small businesses that were not existing customers of Republic Bank, many of which have already switched their primary banking relationship to Republic Bank 
  • The average loan size of all PPP loans approved was $140 thousand 
  • Gross origination fees of $22 million were earned by Republic which will be recognized as income over the life of the loans 
  • Funding for this program was provided through the Federal Reserve PPP Lending Facility, which has resulted in exclusion of the PPP asset balances from the leverage ratio calculation.

As a percentage of existing loan balances outstanding as of March 31, 2020, the $682 million in PPP loans originated by Republic amounted to 36% making us one of the top PPP lenders in the entire country.

Loss Mitigation and Loan Portfolio Analysis

Management has taken a proactive approach to analyze and prepare for the potential challenges to be faced as the effects of the economic shutdown begin to unfold. A detailed analysis of loan concentrations and segments that may represent the areas of highest risk has been prepared. Our commercial lending team has initiated contact with many of our loan customers to discuss the impact that the pandemic has had on their businesses to date and the expected ramifications that may be felt in the future. We have granted payment deferrals for customers that made a request and had an immediate need for assistance.

Management believes exposure in the loan portfolio to the high risk industries most impacted by the current economic conditions is limited. Loans to customers in the accommodations and food services industry (i.e. hotels and restaurants) amount to 7% of the total loans outstanding as of June 30, 2020. Loans to customers involved in the oil and gas industry (refineries) are less than 1% of outstanding loans and credit card receivables are also less than 1% of total loans as of June 30, 2020.

We believe the combination of ongoing communication with our customers, loan payment deferrals, increased focus on risk management practices, and access to government programs such as the PPP Loan Program should help mitigate potential future period losses.

The following table summarizes the number of loan customers that have been granted payment deferrals along with the related loan outstanding balances through the period ended June 30, 2020:

($ in millions) # of LoanAccounts   % of Total Accts   LoanBalances   % of TotalLoan Balances*
               
Deferral of Principal Only 251   5%   $ 270   14%
Deferral of Principal and Interest 192   4%     145   8%
Total Deferrals 443   9%   $ 415   22%
               
Total Deferrals (as of July 24, 2020) 103   2%   $ 124     7%
                 

*Note: PPP loans excluded from total loans when calculating % of total loan balances

As of the date of this release more than 75% of the customers that were granted approval for deferral of loan payments have resumed normal principal and interest payments on their outstanding loan balances in the early stages of the third quarter of 2020. During the month of July 2020, the number of customers that have continued with the deferral of loan payments has declined to 103, or 2% of the total loan customers and the related outstanding loan balances have reduced to $124 million, or 7% of the total loan balances outstanding.

Asset Quality

The Company’s asset quality ratios are highlighted below:

  Three Months Ended
  06/30/20 03/31/20 06/30/19
       
Non-performing assets / capital and reserves 5 % 6 % 6 %
Non-performing assets / total assets 0.31 % 0.46 % 0.53 %
Quarterly net loan charge-offs / average loans 0.03 % 0.00 % (0.04 %)
Allowance for loan losses / gross loans 0.43 % 0.54 % 0.53 %
Allowance for loan losses / non-performing loans 87 % 72 % 86 %

The percentage of non-performing assets to total assets decreased to 0.31% at June 30, 2020, compared to 0.53% at June 30, 2019.  The ratio of non-performing assets to capital and reserves decreased to 5% at June 30, 2020 compared to 6% at June 30, 2019 primarily as a result of decreases in non-performing assets over the last 12 months.

Quarterly Trend

Profitability in previous quarters was impacted by the inversion of the yield curve and the Company’s strategic decision to enter a new market during 2019. The Company continues to focus on improvement of its operating leverage. The following table highlights changes to some of the key financial metrics that demonstrate this progress:

       
  QTD   QTD   QTD   QTD   QTD
  06/30/19   09/30/19   12/31/19   03/31/20   06/30/20
Pre-Tax Pre-Provision Earnings (PTPP) $ 0.5     $ (1.9 )   $ (2.4 )   $ -     $ 4.2  
                   
% Change in Revenue Qtr-Qtr   10 %     (2 %)     (3 %)     9 %     13 %
% Change in Expense Qtr-Qtr   11 %     7 %     (1 %)     (1 %)     (2 %)
                   

Financial Summary for the Period Ended June 30, 2020

The changes in the balance sheet as of June 30, 2020 were significantly impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, demand deposits and short-term borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit applications for forgiveness to the SBA in the coming months. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended June 30, 2020 can be found in the following table:

                       
       Excluding                 
   Actual     PPPProgram     Actual     YOY Growth     YOY Growth 
($ amounts in millions) 6/30/2020   6/30/2020   6/30/2019    (Including PPP)     (Excluding PPP) 
                       
Cash and Cash  Equivalents $ 691   $ 506   $ 130   $ 561 432%   $ 376 289%
Investment Securities 942   942   1,062   (120) (11%)   (120) (11%)
Loans Held for Sale 26   26   23   3 13%   3 13%
Loans Receivable 2,542   1,889   1,509   1,033 69%   380 25%
Allowance for Loan Losses (11)   (11)   (8)   (3) 38%   (3) 38%
Net Loans 2,531   1,878   1,501   1,030 69%   377 25%
                       
Premises and Equipment 121   121   105   16 15%   16 15%
Other Assets 123   123   120   3 3%   3 3%
Total Assets $  4,434     $  3,596   $ 2,941   $ 1,493 51%   $ 655 22%
Non-interest Bearing Deposits $ 1,096   $ 696   $ 544   $ 552 101%   $ 152 28%
Interest Bearing Deposits 2,548   2,548   1,984   564 28%   564 28%
Total Deposits 3,644   3,244   2,528   1,116 44%   716 28%
                       
Short-term Borrowings 438   -   69   369 535%   (69) (100%)
Subordinated Debt 11   11   11   - 0%   - 0%
Other Liabilities 86   86   82   4 5%   4 5%
Total Liabilities 4,179   3,341   2,690   1,489 55%   651 24%
                       
Common Stock and APIC 273   273   271   2 1%   2 1%
Accumulated Deficit (10)   (10)   (8)   (2) 25%   (2) 25%
Treasury Stock/Def Comp Plan (4)   (4)   (4)   - 0%   - 0%
Acc Comp Other Inc (4)   (4)   (8)   4 (50%)   4 (50%)
Total Shareholders' Equity 255   255   251   4 2%   4 2%
Total Liabilities & Shareholders' Equity $ 4,434   $ 3,596   $ 2,941   $ 1,493 51%   $ 655 22%
                       
                       

A summary of the income statement for the period ended June 30, 2020 can be found in the following table:

                       
  Three Months Ended   Six Months Ended
  06/30/20   06/30/19   Change   06/30/20   06/30/19   Change
Total Revenue $ 36.3     $ 33.3     9 %   $ 70.1     $ 63.7     10 %
Net Income   2.5       0.4     559 %     1.9       0.8     138 %
Net Income per share $ 0.04     $ 0.01     300 %   $ 0.03     $ 0.01     200 %
Net Interest Margin   2.55 %     2.94 %         2.64 %     2.97 %    
                       
  • Total assets increased by $1.5 billion, or 51%, to $4.4 billion as of June 30, 2020 compared to $2.9 billion as of June 30, 2019. Excluding the impact of the PPP loan program total assets increased by $655 million, or 22%, as during the twelve month period ended June 30, 2020. 
  • We have thirty convenient store locations open today. During the first quarter of 2020 we opened a new store in Northfield, NJ. Construction is ongoing on a site in Bensalem, PA. There are also multiple sites in various stages of development for future store locations. 
  • Profitability improved quarter to quarter as we reported net income of $2.5 million, or $0.04 per share, for the three months ended June 30, 2020 compared to a net loss of $0.6 million, or $(0.01) per share for the three months ended March 31, 2020.  We reported net income of $0.4 million, or $0.01 per share, for the three months ended June 30, 2019.  
  • The net interest margin decreased by 21 basis points to 2.55% for the three months ended June 30, 2020 compared to 2.76% for the three months ended March 31, 2020. The decline in the margin was driven by the impact of the PPP loan program that were added to the balance sheet during the second quarter, along with the lower interest rate environment as a result of rate reductions by the Federal Reserve Bank. Excluding the impact of the PPP loan program the net interest margin would have been 2.70% for the three months ended June 30, 2020. 
  • During the first quarter we entered into a branding agreement with Visa to convert all ATM and debit cards to Visa cards which will provide a number of opportunities to enhance revenue growth in the coming years. In the second quarter we entered into another agreement with Visa to handle the processing of all ATM and debit card transactions. This agreement is expected to reduce the cost associated with the processing of these transactions. 
  • The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Loan production during the first half of 2020 was strong despite the impact of the CODID-19 pandemic and the pipeline for the second half of the year looks equally as promising. The Oak Mortgage team has originated more than $500 million in mortgage loans over the last twelve months. 
  • The Company’s Total Risk-Based Capital ratio was 12.00% and Tier I Leverage Ratio was 7.58% at June 30, 2020. 
  • Book value per common share increased to $4.34 as of June 30, 2020 compared to $4.27 as of June 30, 2019.

Income Statement

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

  Three Months Ended
  06/30/20   03/31/20   % Change   06/30/19   % Change
Net Interest Income $ 22,427   $ 20,754     8 %   $ 19,371   16 %
Non-interest Income   8,424     6,545     29 %     7,026   20 %
Total Revenue   30,851     27,299     13 %     26,397   17 %
Provision for Loan Losses   1,000     950     5 %     -   -  
Non-interest Expense   26,664     27,272     (2 %)     25,911   3 %
Income (Loss) Before Taxes   3,187     (923 )   445 %     486   556 %
Provision (Benefit) for Taxes   675     (330 )   305 %     105   543 %
Net Income (Loss)   2,512     (593 )   524 %     381   559 %
                   
Net Income (Loss) per Share $ 0.04   $ (0.01 )   500 %   $ 0.01   300 %
  Six Months Ended 
  06/30/20   06/30/19   % Change
Net Interest Income $ 43,181   $ 38,511   12 %
Non-interest Income   14,969     11,971   25 %
Total Revenue   58,150     50,482   15 %
Provision for Loan Losses   1,950     300   550 %
Non-interest Expense   53,936     49,178   10 %
Income Before Taxes   2,264     1,004   125 %
Provision for Taxes   345     197   75 %
Net Income   1,919     807   138 %
Net Income per Share $ 0.03   $ 0.01   200 %

The Company reported net income of $2.5 million, or $0.04 per share, for the three month period ended June 30, 2020, compared to net income of $381 thousand, or $0.01 per share, for the three month period ended June 30, 2019. 

Interest income increased by $1.6 million, or 6%, to $27.9 million for the quarter ended June 30, 2020 compared to $26.2 million for the quarter ended June 30, 2019. 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. We have also begun to amortize the fees associated with the origination of PPP loans during the second quarter which is reported as interest income. $1.5 million in PPP fees were recorded as income during the quarter ended June 30, 2020 with the remaining balance to be recognized over the life of the loans.

Interest expense decreased by $1.4 million, or 21%, to $5.4 million for the quarter ended June 30, 2020 compared to $6.9 million for the quarter ended June 30, 2019. The decrease in interest expense was primarily driven by a reduction in the cost of deposits as a result of the decrease in the Fed Funds rate during the latter part of the first quarter.

The net interest margin for the three month period ended June 30, 2020 decreased by 39 basis points to 2.55% compared to 2.94% for the three month period ended June 30, 2019. We experienced margin compression throughout 2019 as a result of the flattening of the yield curve. The interest rate on the loans originated under the PPP loan program is 1.00% which caused a decline in the yield on interest earning assets in the second quarter of 2020. In addition, the rate cuts enacted by the Federal Reserve Bank during the first quarter of 2020 has created a lower interest rate environment. The net interest margin excluding the impact of the PPP loan program would have been 2.70%.

Non-interest income increased by $1.4 million, or 20%, to $8.4 million for the three month period ended June 30, 2020, compared to $7.0 million for the three month period ended June 30, 2019. The increase is attributable to gains on the sale of investment securities, higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts, and mortgage banking income driven by mortgage loan originations, partially offset by a decrease in gains on the sale of SBA loans.

Non-interest expense increased by 3%, to $26.7 million during the quarter ended June 30, 2020 compared to $25.9 million during the quarter ended June 30, 2019. The growth in expenses were mainly caused by an increase in occupancy and equipment expenses associated with our growth strategy. Cost control initiatives identified by management have begun to take effect as non-interest expense declined for the third consecutive quarter.

On a linked quarter basis, total revenue increased by 13% during the second quarter of 2020 while non-interest expense declined by 2%. Year over year total revenue increased by 17% and non-interest expense increased by 3% during the second quarter of 2020 compared to the second quarter of 2019.

Deposits

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

    Description     06/30/20       06/30/19   %Change       03/31/20   %Change
               
Demand noninterest-bearing $ 1,095,782   $ 544,406 101 %   $ 676,482 62 %
Demand interest-bearing   1,435,198     1,072,415 34 %     1,276,816 12 %
Money market and savings   902,528     719,075 26 %     768,550 17 %
Certificates of deposit   210,446     192,081 10 %     222,631 (5 %)
Total deposits $ 3,643,954   $ 2,527,977 44 %   $ 2,944,479 24 %
               

Deposits increased to $3.6 billion at June 30, 2020 compared to $2.5 billion at June 30, 2019. This increase is partially attributed to our growth strategy to increase the number of stores and expand the reach of our banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. We recognized strong growth in demand deposit balances, including an increase in non-interest bearing demand deposits of 101%, year over year as a result of the successful execution of our strategy. The increase in demand deposits during the second quarter is also a result of our participation in the PPP loan program.  When these loans were closed the funds were deposited into Republic Bank checking accounts. These deposits are expected to decline as the borrowers spend the funds on qualified expenses under the program.

Lending

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

  Description   06/30/20 %of Total   06/30/19 % of Total   03/31/20 % ofTotal
             
Commercial and industrial $ 224,504 9 % $ 189,632 13 % $ 241,754 13 %
Owner occupied real estate   434,422 17 %   381,852 25 %   436,499 23 %
Commercial real estate   664,605 26 %   553,644 37 %   668,462 36 %
Construction and land develop   150,157 6 %   111,474 7 %   144,215 8 %
Residential mortgage   313,287 12 %   173,963 12 %   287,425 15 %
Paycheck protection program (net)   653,593 26 %   - - %   - - %
Consumer and other   101,680 4 %   98,155 6 %   103,682 5 %
Gross loans $ 2,542,248 100 % $ 1,508,720 100 % $ 1,882,037 100 %
             

Gross loans increased by $1.0 billion, or 69%, to $2.5 billion at June 30, 2020 compared to $1.5 billion at June 30, 2019 primarily related to PPP loan originations in the current quarter. In addition, we continue to see results from the continued success with the relationship banking model which has driven a steady flow in quality loan demand over the last twelve months. Excluding the addition of the PPP loans during the second quarter of 2020, loans still grew $380 million, or 25%, when compared to the balance as of June 30, 2019. We experienced strong growth across all loan categories.

Capital

The Company’s capital ratios at June 30, 2020 were as follows:

  Actual06/30/20Bancorp Actual06/30/20Bank RegulatoryGuidelines“Well Capitalized”
       
Leverage Ratio 7.58% 7.29% 5.00%
Common Equity Ratio 11.01% 11.08% 6.50%
Tier 1 Risk Based Capital 11.51% 11.08% 8.00%
Total Risk Based Capital 12.00% 11.57% 10.00%
Tangible Common Equity 5.65% 5.58% n/a

Total shareholders’ equity increased to $255 million at June 30, 2020 compared to $251 million at June 30, 2019. Book value per common share increased to $4.34 at June 30, 2020 compared to $4.27 per share at June 30, 2019.

Analyst and Investor Call

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

   
Date: July 27, 2020
Time: 11:00am (EST)
From the U.S. dial: (800) 774-6070 [US Toll Free] or
  (630) 691-2753 [US Toll]
Participant Pin: 7859 277#
   
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 thirty stores located in Greater Philadelphia, Southern New Jersey and New York City.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with some of 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; the effects of health emergencies, including the spread of infectious diseases and pandemics; 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, 2019, the Form 10-Q for the quarter ended March 31, 2020 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)   2020       2020       2019    
                 
ASSETS            
  Cash and due from banks $ 36,786     $ 32,581     $ 38,770    
  Interest-bearing deposits and federal funds sold   654,458       23,936       90,744    
    Total cash and cash equivalents   691,244       56,517       129,514    
                 
  Securities - Available for sale   382,221       497,511       338,286    
  Securities - Held to maturity   556,159       611,914       718,534    
  Restricted stock   3,789       2,746       5,130    
    Total investment securities   942,169       1,112,171       1,061,950    
                 
  Loans held for sale   26,126       16,820       23,412    
                 
  Loans receivable   2,542,248       1,882,037       1,508,720    
  Allowance for loan losses   (11,040 )     (10,217 )     (8,056 )  
    Net loans   2,531,208       1,871,820       1,500,664    
                 
  Premises and equipment   121,149       119,893       105,311    
  Other real estate owned   1,144       1,144       6,406    
  Other assets   121,603       122,051       113,729    
                 
  Total Assets $ 4,434,643     $ 3,300,416     $ 2,940,986    
                 
                 
                 
LIABILITIES            
  Non-interest bearing deposits $ 1,095,782     $ 676,482     $ 544,406    
  Interest bearing deposits   2,548,172       2,267,997       1,983,571    
    Total deposits   3,643,954       2,944,479       2,527,977    
                 
  Short-term borrowings   438,478       -       68,979    
  Subordinated debt   11,268       11,267       11,262    
  Other liabilities   85,765       92,554       81,410    
                 
  Total Liabilities   4,179,465       3,048,300       2,689,628    
                 
SHAREHOLDERS' EQUITY            
  Common stock - $0.01 par value   594       594       594    
  Additional paid-in capital   273,118       272,639       270,789    
  Accumulated deficit   (10,297 )     (12,809 )     (7,909 )  
  Treasury stock at cost   (3,725 )     (3,725 )     (3,725 )  
  Stock held by deferred compensation plan   (183 )     (183 )     (183 )  
  Accumulated other comprehensive loss   (4,329 )     (4,400 )     (8,208 )  
                 
  Total Shareholders' Equity   255,178       252,116       251,358    
                 
                 
  Total Liabilities and Shareholders' Equity $ 4,434,643     $ 3,300,416     $ 2,940,986    
                 

                     
Republic First Bancorp, Inc.                    
Consolidated Statements of Income                    
(Unaudited)                    
                         
      Three Months Ended   Six Months Ended  
      June 30,   March 31,   June 30,   June 30,   June 30,  
(in thousands, except per share amounts)   2020     2020       2019     2020     2019  
                         
INTEREST INCOME                    
  Interest and fees on loans $ 22,737   $ 20,173     $ 18,569   $ 42,910   $ 36,369  
  Interest and dividends on investment securities   5,072     6,821       7,158     11,893     14,541  
  Interest on other interest earning assets   50     289       518     339     854  
  Total interest income   27,859     27,283       26,245     55,142     51,764  
                         
INTEREST EXPENSE                    
  Interest on deposits   5,320     6,425       6,695     11,745     12,709  
  Interest on borrowed funds   112     104       179     216     544  
  Total interest expense   5,432     6,529       6,874     11,961     13,253  
                         
  Net interest income   22,427     20,754       19,371     43,181     38,511  
  Provision for loan losses   1,000     950       -     1,950     300  
                         
  Net interest income after provision for loan losses   21,427     19,804       19,371     41,231     38,211  
                         
NON-INTEREST INCOME                    
  Service fees on deposit accounts   2,328     2,064       1,848     4,392     3,460  
  Mortgage banking income   3,389     2,458       3,031     5,847     5,251  
  Gain on sale of SBA loans   269     649       1,147     918     1,649  
  Gain on sale of investment securities   1,640     841       261     2,481     583  
  Other non-interest income   798     533       739     1,331     1,028  
  Total non-interest income   8,424     6,545       7,026     14,969     11,971  
                         
NON-INTEREST EXPENSE                    
  Salaries and employee benefits   13,177     13,381       13,705     26,558     26,064  
  Occupancy and equipment   5,554     5,297       4,221     10,851     8,236  
  Legal and professional fees   1,009     930       1,058     1,939     1,765  
  Foreclosed real estate   75     282       517     357     854  
  Regulatory assessments and related fees   675     630       421     1,305     842  
  Other operating expenses   6,174     6,752       5,989     12,926     11,417  
  Total non-interest expense   26,664     27,272       25,911     53,936     49,178  
                         
Income (loss) before provision (benefit) for income taxes   3,187     (923 )     486     2,264     1,004  
                         
Provision (benefit) for income taxes   675     (330 )     105     345     197  
                         
Net income (loss) $ 2,512   $ (593 )   $ 381   $ 1,919   $ 807  
                         
                         
Net Income (Loss) per Common Share                    
  Basic $ 0.04   $ (0.01 )   $ 0.01   $ 0.03   $ 0.01  
  Diluted $ 0.04   $ (0.01 )   $ 0.01   $ 0.03   $ 0.01  
                         
Average Common Shares Outstanding                    
  Basic   58,851     58,848       58,841     58,849     58,823  
  Diluted   58,883     58,848       59,401     58,911     59,501  
                         

                                   
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, 2020   March 31, 2020   June 30, 2019
                                     
        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   $ 198,345   $ 50   0.10 %   $ 81,339   $ 289   1.43 %   $ 85,920   $ 518   2.42 %
Securities     1,033,560     5,077   1.96 %     1,156,504     6,826   2.36 %     1,067,185     7,184   2.69 %
Loans receivable     2,335,500     22,884   3.94 %     1,808,382     20,319   4.52 %     1,509,177     18,681   4.96 %
Total interest-earning assets   3,567,405     28,011   3.16 %     3,046,225     27,434   3.62 %     2,662,282     26,383   3.97 %
                                     
Other assets     266,178             260,829             217,685        
                                     
Total assets   $ 3,833,583           $ 3,307,054           $ 2,879,967        
                                     
Interest-bearing liabilities:                                    
                                     
Demand non interest-bearing $ 984,771           $ 644,601           $ 525,336        
Demand interest-bearing     1,397,790     2,856   0.82 %     1,337,646     3,421   1.03 %     1,144,783     4,206   1.47 %
Money market & savings     858,782     1,431   0.67 %     752,510     1,783   0.95 %     697,279     1,628   0.94 %
Time deposits     208,838     1,033   1.99 %     226,185     1,221   2.17 %     176,750     861   1.95 %
Total deposits     3,450,181     5,320   0.62 %     2,960,942     6,425   0.87 %     2,544,148     6,695   1.06 %
                                     
Total interest-bearing deposits   2,465,410     5,320   0.87 %     2,316,341     6,425   1.12 %     2,018,812     6,695   1.33 %
                                     
Other borrowings     45,474     112   0.99 %     11,952     104   3.50 %     19,864     179   3.61 %
                                     
                                     
Total interest-bearing liabilities     2,510,884     5,432   0.87 %     2,328,293     6,529   1.13 %     2,038,676     6,874   1.35 %
Total deposits and                                    
other borrowings     3,495,655     5,432   0.62 %     2,972,894     6,529   0.88 %     2,564,012     6,874   1.08 %
                                     
                                     
Non interest-bearing liabilities   83,884             84,211             66,780        
Shareholders' equity     254,044             249,949             249,175        
Total liabilities and                                    
shareholders' equity   $ 3,833,583           $ 3,307,054           $ 2,879,967        
                                     
Net interest income       $ 22,579           $ 20,905           $ 19,509    
Net interest spread           2.29 %           2.49 %           2.62 %
                                     
Net interest margin           2.55 %           2.76 %           2.94 %
                                     
                                     
                                     
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, 2020   June 30, 2019  
                         
      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 $ 139,842   $ 339   0.49 %   $ 70,729   $ 854   2.43 %  
Securities   1,095,032     11,903   2.17 %     1,076,496     14,604   2.71 %  
Loans receivable   2,071,941     43,203   4.19 %     1,489,020     36,592   4.96 %  
Total interest-earning assets   3,306,815     55,445   3.37 %     2,636,245     52,050   3.98 %  
                         
Other assets   263,504             204,344          
                         
Total assets $ 3,570,319           $ 2,840,589          
                         
Interest-bearing liabilities:                        
                         
Demand non interest-bearing $ 814,686           $ 518,790          
Demand interest-bearing   1,367,718     6,277   0.92 %     1,129,356     8,144   1.45 %  
Money market & savings   805,646     3,214   0.80 %     686,453     3,080   0.90 %  
Time deposits   217,512     2,254   2.08 %     165,354     1,485   1.81 %  
Total deposits   3,205,562     11,745   0.74 %     2,499,953     12,709   1.03 %  
                         
Total interest-bearing deposits   2,390,876     11,745   0.99 %     1,981,163     12,709   1.29 %  
                         
Other borrowings   28,713     216   1.51 %     33,341     544   3.29 %  
                         
                         
Total interest-bearing liabilities   2,419,589     11,961   0.99 %     2,014,504     13,253   1.33 %  
Total deposits and                        
other borrowings   3,234,275     11,961   0.74 %     2,533,294     13,253   1.05 %  
                         
                         
Non interest-bearing liabilities   84,050             59,505          
Shareholders' equity   251,994             247,790          
Total liabilities and                        
shareholders' equity $ 3,570,319           $ 2,840,589          
                         
Net interest income     $ 43,484           $ 38,797      
Net interest spread         2.38 %           2.65 %  
                         
Net interest margin         2.64 %           2.97 %  
                         
                         
                         
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)   2020       2020       2019       2019       2020       2019  
                       
                       
Balance at beginning of period $ 10,217     $ 9,266     $ 7,900     $ 8,615     $ 9,266     $ 8,615  
                       
Provision charged to operating expense   1,000       950       -       1,905       1,950       300  
    11,217       10,216       7,900       10,520       11,216       8,915  
                       
Recoveries on loans charged-off:                      
Commercial   14       17       154       219       31       155  
Consumer   1       6       3       9       7       4  
Total recoveries   15       23       157       228       38       159  
                       
Loans charged-off:                      
Commercial   (149 )     -       (1 )     (1,356 )     (149 )     (930 )
Consumer   (43 )     (22 )     -       (126 )     (65 )     (88 )
                       
Total charged-off   (192 )     (22 )     (1 )     (1,482 )     (214 )     (1,018 )
                       
Net (charge-offs) recoveries   (177 )     1       156       (1,254 )     (176 )     (859 )
                       
Balance at end of period $ 11,040     $ 10,217     $ 8,056     $ 9,266     $ 11,040     $ 8,056  
                       
                       
Net (charge-offs) recoveries as a percentage of                    
average loans outstanding   0.03 %     (0.00 %)     (0.04 %)     0.08 %     0.02 %     0.12 %
                       
Allowance for loan losses as a percentage                      
of period-end loans   0.43 %     0.54 %     0.53 %     0.53 %     0.43 %     0.53 %

 
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)   2020       2020       2019       2019       2019  
                   
Non-accrual loans:                  
Commercial real estate $ 10,747     $ 12,060     $ 10,569     $ 10,180     $ 7,545  
Consumer and other   1,970       2,125       1,844       1,743       1,777  
Total non-accrual loans   12,717       14,185       12,413       11,923       9,322  
                   
Loans past due 90 days or more                  
and still accruing   -       -       -       129       -  
                   
Total non-performing loans   12,717       14,185       12,413       12,052       9,322  
                   
Other real estate owned   1,144       1,144       1,730       6,653       6,406  
                   
Total non-performing assets $ 13,861     $ 15,329     $ 14,143     $ 18,705     $ 15,728  
                   
                   
Non-performing loans to total loans   0.50 %     0.75 %     0.71 %     0.77 %     0.62 %
                   
Non-performing assets to total assets   0.31 %     0.46 %     0.42 %     0.61 %     0.53 %
                   
Non-performing loan coverage   86.81 %     72.03 %     74.65 %     70.25 %     86.42 %
                   
Allowance for loan losses as a percentage                  
of total period-end loans   0.43 %     0.54 %     0.53 %     0.54 %     0.43 %
                   
Non-performing assets / capital plus                  
allowance for loan losses   5.21 %     5.84 %     5.47 %     7.21 %     6.05 %