Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company
for Republic Bank, today announced its financial results for the
period ended September 30, 2020.
Q3-2020
Financial Highlights
- Republic Bank was named as
America’s # 1
Bank for
Service in a recent national
Forbes survey.
- Total deposits increased by $1.2
billion, or 43%, to $3.9 billion as of September 30, 2020 compared
to $2.7 billion as of September 30, 2019. Excluding the impact of
the PPP loan program deposits grew $1.0 billion, or 38%, year over
year.
- Total loans grew $1.1 billion, or
68%, to $2.6 billion as of September 30, 2020 compared to $1.6
billion at September 30, 2019. Excluding the impact of the PPP loan
program loans grew $393 million, or 25%, year over year.
- Earnings were impacted by a
goodwill impairment charge of $5.0 million resulting in a net loss
of $1.0 million, or $(0.02) per share, during the third quarter of
2020. This impairment charge is a non-cash accounting transaction
which had no impact on liquidity and minimally increased regulatory
capital ratios as of September 30, 2020. This is a complete
write-off of all goodwill on the balance sheet.
- The non-recurring goodwill
impairment charge overshadows the improvement in operating results
despite the effect that the COVID-19 pandemic has had on the
economy. Excluding the goodwill impairment, earnings for the nine
month period ended September 30, 2020 were $4.7 million, or $0.08
per share, compared to a net loss of $1.0 million, or $(0.02) per
share, during the nine month period ended September 30, 2019.
- The improvement in operating
results was driven by the Company’s focus on cost control
initiatives while driving revenue growth. During the third quarter
of 2020 total revenue increased 27% and non-interest expense,
excluding goodwill impairment, increased 3% compared to the third
quarter of 2019. During the nine month period ended September 20,
2020 total revenue increased 19% and non-interest expense,
excluding goodwill impairment, increased by 7% compared to the nine
month period ended September 30, 2019.
- Asset quality continues to improve
as the ratio of non-performing assets to total assets declined to
0.27% as of September 30, 2020. Only 2% of our loan customers were
deferring loan payments at the end of the third quarter. These
deferrals relate to approximately 6% of outstanding loan balances
excluding PPP loans.
- We originated $684 million in loans
under the Paycheck Protection Program (PPP) providing crucial
funding for small businesses throughout our footprint. Origination
fees were earned through this program which will be recognized as
interest income over the life of the loans. Approximately $16
million in origination fees will be recognized in the future as the
PPP loans are repaid or forgiven. During the third quarter we began
processing forgiveness applications for our customers which will be
submitted to the SBA for approval.
|
Vernon W. Hill, II, Chairman of Republic
First Bancorp said:
“America’s #1 Bank for Service
continues to deliver exceptional growth results even in a
challenging economic environment caused by the effects of the
COVID-19 pandemic.”
|
09/30/20* |
09/30/19 |
Increase |
% |
Assets |
$ 4.2B |
$ 3.1B |
+ $ 1.1B |
36 |
% |
Loans |
$ 2.0B |
$ 1.6B |
+ $ 0.4B |
25 |
% |
Deposits |
$ 3.8B |
$ 2.7B |
+ $ 1.0B |
38 |
% |
“These organic growth results demonstrate the
success we are capable of achieving through our unwavering
commitment to extraordinary customer service and convenience. The
goal of our model is to create FANS NOT CUSTOMERS, who join our
brand, remain loyal and refer family and friends. We are clearly
achieving this goal across all delivery channels.”
“During the third quarter we were also pleased
to announce the successful completion of the sale of $50 million of
convertible preferred stock. This offering provides the capital
resources necessary to support our continued growth and expansion
strategy.”
Harry D. Madonna, President and Chief
Executive Officer of Republic First Bancorp
added:
“Our ongoing focus on cost control measures
continues to drive positive operating leverage. Total revenue
increased by 27% while non-interest expense increased by just 3%
excluding goodwill impairment during the third quarter of 2020
compared to the third quarter of 2019. We recorded a goodwill
impairment charge during the third quarter primarily as a result of
a prolonged decline in our stock price which unfortunately obscures
the improvement in core earnings. We have consistently stated that
it is our goal to deliver best in class service across all delivery
channels…..in-store, by phone, online and mobile options....as we
strive to create new FANS each and every day. We are focused on
meeting that goal in the most efficient manner possible.”
*Balances as of 9/30/20 exclude the temporary
impact of the PPP loan program
Financial Results
A summary of the income statement, excluding the
charge for goodwill impairment, for the period ended September 30,
2020 can be found in the following table:
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
09/30/20 |
|
09/30/19 |
|
Change |
|
09/30/20 |
|
09/30/19 |
|
Change |
Total Revenue |
|
$ |
33.0 |
|
|
$ |
25.9 |
|
|
27 |
% |
|
$ |
91.1 |
|
|
$ |
76.4 |
|
|
19 |
% |
Non-Interest Expense* |
|
|
28.6 |
|
|
|
27.8 |
|
|
3 |
% |
|
|
82.6 |
|
|
|
77.0 |
|
|
7 |
% |
Net Income (Loss)* |
|
|
2.8 |
|
|
|
(1.8 |
) |
|
252 |
% |
|
|
4.7 |
|
|
|
(1.0 |
) |
|
562 |
% |
Net Income (Loss) per
share* |
|
$ |
0.04 |
|
|
$ |
(0.03 |
) |
|
233 |
% |
|
$ |
0.08 |
|
|
$ |
(0.02 |
) |
|
500 |
% |
Net Interest Margin |
|
|
2.35 |
% |
|
|
2.82 |
% |
|
|
|
|
2.53 |
% |
|
|
2.92 |
% |
|
|
Net
Interest Margin (excl PPP impact) |
|
|
2.41 |
% |
|
|
|
|
|
|
2.62 |
% |
|
|
|
|
*Note: See disclosure related to non-GAAP
financial measures at the end of this release.
Loss Mitigation and Loan Portfolio
Analysis
Management has continued to analyze and assess
the key performance indicators related to the loan portfolio. 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
September 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 periods ended
September 30, 2020 and June 30, 2020:
|
|
09/30/20 |
|
06/30/20 |
($ in millions) |
|
Deferred Balances |
|
% of Total Loans* |
|
Deferred Balances |
|
% of Total Loans* |
|
|
|
|
|
|
|
|
|
Deferral of Principal Only |
|
$ |
65 |
|
3 |
% |
|
$ |
176 |
|
9 |
% |
Deferral of Principal and
Interest |
|
|
50 |
|
3 |
% |
|
|
268 |
|
14 |
% |
|
|
|
|
|
|
|
|
|
Total Deferral Balances |
|
$ |
115 |
|
6 |
% |
|
$ |
444 |
|
24 |
% |
|
|
|
|
|
|
|
|
|
# of Loan Accounts on
Deferral |
|
|
95 |
|
2 |
% |
|
|
491 |
|
9 |
% |
*Note: PPP loans excluded from total loans when
calculating % of total loan balances.
Loan balances with deferred payments have
declined to $115 million, or 6% of total loans, as of September 30,
2020 compared to $444 million, or 24% of total loans as of June 30,
2020. The most significant decrease occurred in the deferral of
principal and interest payments. Those deferrals declined to $50
million as of September 30, 2020 compared to $268 million as of
June 30, 2020.
Financial Summary for the Period Ended
September 30, 2020
The changes in the balance sheet as of September
30, 2020 were significantly impacted by the effect of the PPP loan
program. A portion of the increase in cash balances, outstanding
loans, demand deposits and short-term borrowings will be short-term
in nature and will change as the borrowers that received PPP loans
submit applications for forgiveness to the SBA in the coming
months. A summary of the balance sheet presented with and without
the impact of the PPP loan program for the period ended September
30, 2020 can be found in the following table:
|
|
|
Excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPP |
|
|
|
YOY Growth |
|
YOY Growth |
|
Actual |
|
Program |
|
Actual |
|
(Including PPP) |
|
(Excluding PPP) |
($ in millions) |
09/30/20 |
|
09/30/20 |
|
09/30/19 |
|
($) |
|
(%) |
|
($) |
|
(%) |
Assets |
$ |
4,959 |
|
$ |
4,188 |
|
$ |
3,086 |
|
$ |
1,873 |
|
61 |
% |
|
$ |
1,102 |
|
36 |
% |
Loans |
|
2,629 |
|
|
1,962 |
|
|
1,569 |
|
|
1,060 |
|
68 |
% |
|
|
393 |
|
25 |
% |
Deposits |
|
3,905 |
|
|
3,780 |
|
|
2,740 |
|
|
1,165 |
|
43 |
% |
|
|
1,040 |
|
38 |
% |
Short-Term Borrowings |
|
646 |
|
- |
|
- |
|
|
646 |
|
100 |
% |
|
- |
|
- |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Financial
Highlights
- A $50 million capital raise was
completed during the third quarter through a registered direct
offering of the Company’s convertible preferred stock.
- Total assets increased by $1.9
billion, or 61%, to $5.0 billion as of September 30, 2020 compared
to $3.1 billion as of September 30, 2019. Excluding the impact of
the PPP loan program total assets increased by $1.1 billion, or
36%, year over year.
- We have thirty-one convenient store
locations open today. During the third quarter of 2020 we opened a
new store in Bensalem, PA. There are also multiple sites in various
stages of development for future store locations.
- Excluding the impact of goodwill
impairment, profitability improved quarter to quarter as we
recognized net income of $2.8 million, or $0.04 per share, for the
three months ended September 30, 2020 compared to net income of
$2.5 million, or $0.04 per share for the three months ended June
30, 2020. We reported a net loss of $1.8 million, or $(0.03) per
share, for the three months ended September 30, 2019.
- Excluding the impact of goodwill
impairment, profitability also improved year over year. Net income
for the nine month period ended September 30, 2020 was $4.7
million, or $0.08 per share, compared to a net loss of $1.0
million, or $(0.02) per share for the nine months ended September
30, 2019.
- The net interest margin decreased
by 47 basis points to 2.35% for the three months ended September
30, 2020 compared to 2.82% for the three months ended September 30,
2019. The decline in the margin was driven by the impact of the PPP
loans that were added to the balance sheet during the second
quarter of 2020, along with the lower interest rate environment as
a result of rate reductions by the Federal Reserve Bank during the
first quarter. Excluding the impact of the PPP loan program the net
interest margin would have been 2.41% for the three months ended
September 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. Conversion to the Visa platform is currently in
process.
- The Company’s residential mortgage
division, Oak Mortgage, is serving the home financing needs of
customers throughout its footprint. Loan production during the
first nine months of 2020 was strong despite the impact of the
COVID-19 pandemic and the pipeline for the remainder of the year
looks equally as promising. The Oak Mortgage team has originated
more than $600 million in mortgage loans over the last twelve
months.
- The Company’s Total Risk-Based
Capital ratio was 13.98% and Tier I Leverage Ratio was 8.81% at
September 30, 2020.
- Book value per common share
increased to $4.33 as of September 30, 2020 compared to $4.26 as of
September 30, 2019.
Income Statement
The major components of the income statement are
as follows (dollars in thousands, except per share data):
|
Three Months Ended |
|
09/30/20 |
|
06/30/20 |
|
%Change |
|
09/30/19 |
|
%Change |
Net Interest Income |
$ |
22,930 |
|
|
$ |
22,427 |
|
2 |
% |
|
$ |
19,382 |
|
|
18 |
% |
Non-interest Income |
|
10,031 |
|
|
|
8,424 |
|
19 |
% |
|
|
6,554 |
|
|
53 |
% |
Total Revenue |
|
32,961 |
|
|
|
30,851 |
|
7 |
% |
|
|
25,936 |
|
|
27 |
% |
Provision for Loan Losses |
|
850 |
|
|
|
1,000 |
|
(15 |
%) |
|
|
450 |
|
|
89 |
% |
Other Non-interest
Expense |
|
28,569 |
|
|
|
26,664 |
|
7 |
% |
|
|
27,824 |
|
|
3 |
% |
Income (Loss) Before Goodwill
Impairment |
|
3,542 |
|
|
|
3,187 |
|
11 |
% |
|
|
(2,338 |
) |
|
251 |
% |
Goodwill Impairment |
|
5,011 |
|
|
- |
|
100 |
% |
|
|
- |
|
|
100 |
% |
Income (Loss) Before
Taxes |
|
(1,469 |
) |
|
|
3,187 |
|
(146 |
%) |
|
|
(2,338 |
) |
|
37 |
% |
Provision (Benefit) for
Taxes |
|
(503 |
) |
|
|
675 |
|
(175 |
%) |
|
|
(516 |
) |
|
3 |
% |
Net Income (Loss) |
|
(966 |
) |
|
|
2,512 |
|
(138 |
%) |
|
|
(1,822 |
) |
|
47 |
% |
Net
Income (Loss) per share |
$ |
(0.02 |
) |
|
$ |
0.04 |
|
(150 |
%) |
|
$ |
(0.03 |
) |
|
33 |
% |
|
|
|
|
Nine Months Ended |
|
|
09/30/20 |
|
09/30/19 |
|
% Change |
Net Interest
Income |
|
$ |
66,111 |
|
|
$ |
57,893 |
|
|
14 |
% |
Non-Interest
Income |
|
|
25,000 |
|
|
|
18,525 |
|
|
35 |
% |
Total Revenue |
|
|
91,111 |
|
|
|
76,418 |
|
|
19 |
% |
Provision for Loan
Losses |
|
|
2,800 |
|
|
|
750 |
|
|
273 |
% |
Other Non-interest
Expense |
|
|
82,505 |
|
|
|
77,002 |
|
|
7 |
% |
Income (Loss)
Before Goodwill Impairment |
|
|
5,806 |
|
|
|
(1,334 |
) |
|
535 |
% |
Goodwill
Impairment |
|
|
5,011 |
|
|
|
- |
|
|
100 |
% |
Income (Loss)
Before Taxes |
|
|
795 |
|
|
|
(1,334 |
) |
|
160 |
% |
Provision
(Benefit) for Taxes |
|
|
(158 |
) |
|
|
(319 |
) |
|
50 |
% |
Net Income
(Loss) |
|
|
953 |
|
|
|
(1,015 |
) |
|
194 |
% |
Net
Income (Loss) per Share |
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
200 |
% |
The Company reported a net loss of $1.0 million,
or $(0.02) per share, for the three month period ended September
30, 2020, compared to net income of $2.5 million, or $0.04 per
share for the three month period ended June 30, 2020 and a net loss
of $1.8 million, or $(0.03) per share, for the three month period
ended September 30, 2019.
Earnings in the third quarter of 2020 were
impacted by a goodwill impairment charge of $5.0 million. This
impairment charge represents a non-cash accounting transaction
which had no impact on liquidity and minimally increased regulatory
capital ratios. A prolonged decline in the Company’s stock price,
exacerbated by the COVID-19 pandemic and related economic impact
led to recognition of the impairment pursuant to management’s
completion of a goodwill impairment analysis as of September 30,
2020. This is a complete write-off of all goodwill on the balance
sheet at the present time.
The Company continues to demonstrate progress
with operating leverage. Total revenue increased by 27% while
non-interest expense increased by 3%, excluding goodwill
impairment, during the third quarter of 2020 compared to the third
quarter of 2019. For the nine month period ended September 30, 2020
total revenue increased by 19% while non-interest expense increased
by 7%, excluding goodwill impairment, compared to the nine months
ended September 30, 2019.
Interest income increased by $2.4 million, or
9%, to $28.6 million for the quarter ended September 30, 2020
compared to $26.2 million for the quarter ended September 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 also began
to amortize the fees associated with the origination of PPP loans
during the second quarter which is reported as interest income.
$2.3 million in PPP fees were recorded as income during the quarter
ended September 30, 2020 with the remaining balance to be
recognized over the life of the loans.
Interest expense decreased by $1.2 million, or
18%, to $5.6 million for the quarter ended September 30, 2020
compared to $6.8 million for the quarter ended September 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 first quarter of 2020.
The net interest margin for the three month
period ended September 30, 2020 decreased by 47 basis points to
2.35% compared to 2.82% for the three month period ended September
30, 2019. 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 third 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 2.41%.
Non-interest income increased by $3.5 million,
or 53%, to $10.0 million for the three month period ended September
30, 2020, compared to $6.6 million for the three month period ended
September 30, 2019. The increase is attributable to higher mortgage
banking income driven by mortgage loan originations, and higher
service fees on deposit accounts which is driven by growth in
deposit balances and an increase in the number of deposit accounts
in addition to the impact of the branding and processing agreements
with VISA.
Excluding the goodwill charge, non-interest
expense increased by 3%, to $28.6 million during the quarter ended
September 30, 2020, compared to $27.8 million during the quarter
ended September 30, 2019. The growth in expenses were mainly caused
by an increase in occupancy and equipment expenses associated with
our growth strategy.
Deposits
Deposits by type of account are as follows
(dollars in thousands):
Description |
09/30/20 |
|
09/30/19 |
% Change |
|
06/30/20 |
% Change |
|
|
|
|
|
|
|
|
Demand noninterest-bearing |
$ |
1,049,169 |
|
$ |
595,869 |
76 |
% |
|
$ |
1,095,782 |
(4 |
%) |
Demand interest-bearing |
|
1,618,342 |
|
|
1,227,969 |
32 |
% |
|
|
1,435,198 |
13 |
% |
Money market and savings |
|
1,034,799 |
|
|
698,991 |
48 |
% |
|
|
902,528 |
15 |
% |
Certificates of deposit |
|
203,296 |
|
|
217,203 |
(6 |
%) |
|
|
210,446 |
(3 |
%) |
Total deposits |
$ |
3,905,606 |
|
$ |
2,740,032 |
43 |
% |
|
$ |
3,643,954 |
7 |
% |
|
|
|
|
|
|
|
|
Deposits increased to $3.9 billion at September
30, 2020 compared to $2.7 billion at September 30, 2019. This
increase can be 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 76%, year over year as a
result of the successful execution of our strategy. The increase in
demand deposits during the third quarter is also a result of our
participation in the PPP loan program. Many of the PPP loans
originated were for small businesses that were previously not
customers. Many of these small businesses have chosen to move their
entire banking relationship to Republic as a result of the
outstanding level of service and cooperation they experienced
during the PPP loan process. Commercial deposits were 47% of total
deposits as of September 30, 2020.
Lending
Loans by type are as follows (dollars in
thousands):
Description |
09/30/20 |
% ofTotal |
09/30/19 |
% ofTotal |
06/30/20 |
% ofTotal |
|
|
|
|
|
|
|
Commercial and industrial |
$ |
228,145 |
9 |
% |
$ |
187,837 |
12 |
% |
$ |
224,504 |
9 |
% |
Owner occupied real estate |
|
427,026 |
16 |
% |
|
397,843 |
26 |
% |
|
434,422 |
17 |
% |
Commercial real estate |
|
676,460 |
26 |
% |
|
570,327 |
36 |
% |
|
664,605 |
26 |
% |
Construction and land
development |
|
164,671 |
6 |
% |
|
109,582 |
7 |
% |
|
150,157 |
6 |
% |
Residential mortgage |
|
365,279 |
14 |
% |
|
205,498 |
13 |
% |
|
313,287 |
12 |
% |
Paycheck protection program (net) |
|
667,842 |
25 |
% |
|
- |
- |
% |
|
653,593 |
26 |
% |
Consumer and other |
|
99,975 |
4 |
% |
|
98,293 |
6 |
% |
|
101,680 |
4 |
% |
Gross loans |
$ |
2,629,398 |
100 |
% |
$ |
1,569,380 |
100 |
% |
$ |
2,542,248 |
100 |
% |
|
|
|
|
|
|
|
Gross loans increased by $1.1 billion, or 68%,
to $2.6 billion at September 30, 2020 compared to $1.6 billion at
September 30, 2019. The most significant increase was driven by the
loans originated through the PPP loan program during the second
quarter of 2020. 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 in 2020, loans
still grew $393 million, or 25%, when compared to the balance as of
September 30, 2019. We experienced strong growth across all loan
categories.
Asset Quality
The Company’s asset quality ratios are
highlighted below:
|
Three Months Ended |
|
09/30/20 |
06/30/20 |
09/30/19 |
|
|
|
|
Non-performing assets / capital and reserves |
4 |
% |
5 |
% |
7 |
% |
Non-performing assets / total assets |
0.27 |
% |
0.31 |
% |
0.61 |
% |
Quarterly net loan charge-offs / average loans |
0.01 |
% |
0.03 |
% |
0.01 |
% |
Allowance for loan losses / gross loans |
0.45 |
% |
0.43 |
% |
0.54 |
% |
Allowance for loan losses / non-performing loans |
95 |
% |
87 |
% |
70 |
% |
The percentage of non-performing assets to total
assets decreased to 0.27% at September 30, 2020, compared to 0.61%
at September 30, 2019. The ratio of non-performing assets to
capital and reserves decreased to 4% at September 30, 2020 compared
to 7% at September 30, 2019 primarily as a result of decreases in
non-performing assets and increases in capital and reserves over
the last 12 months.
Capital
The Company’s capital ratios at September 30,
2020 were as follows:
|
Actual09/30/20Bancorp |
Actual09/30/20Bank |
Regulatory Guidelines“Well
Capitalized” |
|
|
|
|
Leverage Ratio |
8.81 |
% |
7.98 |
% |
5.00 |
% |
Common Equity Ratio |
10.89 |
% |
12.21 |
% |
6.50 |
% |
Tier 1 Risk Based Capital |
13.46 |
% |
12.21 |
% |
8.00 |
% |
Total Risk Based Capital |
13.98 |
% |
12.72 |
% |
10.00 |
% |
Tangible Common Equity |
5.13 |
% |
5.68 |
% |
n/a |
|
Total shareholders’ equity increased to $303
million at September 30, 2020 compared to $251 million at September
30, 2019. The increase was primarily driven by a capital raise
during the third quarter of 2020. The Company issued $50 million of
noncumulative perpetual preferred stock in August 2020. The
preferred stock has a dividend of 7.00% payable on a quarterly
basis and is convertible into shares of common stock at a price of
$3.00 per share. Book value per common share increased to $4.33 at
September 30, 2020 compared to $4.26 per share at September 30,
2019.
Non-GAAP Financial Measures
In addition to evaluating the Company’s
financial results of operations in accordance with accounting
principles generally accepted in the U.S. (“GAAP”), management
periodically supplements its evaluation with an analysis of certain
non-GAAP financial measures that are intended to provide the reader
with additional perspectives on operating results, financial
conditions, and performance trends, while facilitating comparisons
with the performance of other financial institutions. Non-GAAP
financial measures are not a substitute for GAAP measures, rather,
they should be read and used in conjunction with the Company’s GAAP
financial information.
The Company believes that disclosing non-GAAP
financial measures is both useful internally and is expected by our
investors and analysts in order to better understand the overall
performance of the Company. Other companies may calculate and
define their non-GAAP financial measures and supplemental data
differently. A reconciliation of GAAP financial measures to
non-GAAP measures and other performance ratios, as adjusted, are
included in a table following the financial schedules included with
this press release.
Analyst and Investor Call
An analyst and investor call will be held on the
following date and time:
|
|
Date: |
October 29, 2020 |
Time: |
12:15pm
(EDT) |
From the U.S. dial: |
(888) 466-9845 [US Toll
Free] or |
|
(847) 619-6751 [US
Toll] |
Participant Pin: |
5572
934# |
|
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-one 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 June 30, 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
(dollars in thousands, except per share amounts) |
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
43,689 |
|
|
$ |
36,786 |
|
|
$ |
57,562 |
|
|
|
|
Interest-bearing deposits and federal funds sold |
|
874,472 |
|
|
|
654,458 |
|
|
|
143,915 |
|
|
|
|
|
Total cash
and cash equivalents |
|
918,161 |
|
|
|
691,244 |
|
|
|
201,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities - Available for sale |
|
440,655 |
|
|
|
382,221 |
|
|
|
379,962 |
|
|
|
|
Securities - Held to maturity |
|
688,939 |
|
|
|
556,159 |
|
|
|
687,425 |
|
|
|
|
Restricted stock |
|
3,789 |
|
|
|
3,789 |
|
|
|
2,371 |
|
|
|
|
|
Total
investment securities |
|
1,133,383 |
|
|
|
942,169 |
|
|
|
1,069,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
42,549 |
|
|
|
26,126 |
|
|
|
21,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
|
2,629,398 |
|
|
|
2,542,248 |
|
|
|
1,569,380 |
|
|
|
|
Allowance for loan losses |
|
(11,851 |
) |
|
|
(11,040 |
) |
|
|
(8,467 |
) |
|
|
|
|
Net
loans |
|
2,617,547 |
|
|
|
2,531,208 |
|
|
|
1,560,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
124,034 |
|
|
|
121,149 |
|
|
|
111,573 |
|
|
|
|
Other real estate owned |
|
1,113 |
|
|
|
1,144 |
|
|
|
6,653 |
|
|
|
|
Other assets |
|
121,969 |
|
|
|
121,603 |
|
|
|
114,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
4,958,756 |
|
|
$ |
4,434,643 |
|
|
$ |
3,085,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
$ |
1,049,169 |
|
|
$ |
1,095,782 |
|
|
$ |
595,869 |
|
|
|
|
Interest bearing deposits |
|
2,856,437 |
|
|
|
2,548,172 |
|
|
|
2,144,163 |
|
|
|
|
|
Total
deposits |
|
3,905,606 |
|
|
|
3,643,954 |
|
|
|
2,740,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
646,267 |
|
|
|
438,478 |
|
|
|
- |
|
|
|
|
Subordinated debt |
|
11,270 |
|
|
|
11,268 |
|
|
|
11,263 |
|
|
|
|
Other liabilities |
|
92,675 |
|
|
|
85,765 |
|
|
|
83,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
4,655,818 |
|
|
|
4,179,465 |
|
|
|
2,835,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Preferred stock - $0.01 par value |
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
|
Common stock - $0.01 par value |
|
594 |
|
|
|
594 |
|
|
|
594 |
|
|
|
|
Additional paid-in capital |
|
321,915 |
|
|
|
273,118 |
|
|
|
271,412 |
|
|
|
|
Accumulated deficit |
|
(11,263 |
) |
|
|
(10,297 |
) |
|
|
(9,731 |
) |
|
|
|
Treasury stock at cost |
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
|
Stock held by deferred compensation plan |
|
(183 |
) |
|
|
(183 |
) |
|
|
(183 |
) |
|
|
|
Accumulated other comprehensive loss |
|
(4,420 |
) |
|
|
(4,329 |
) |
|
|
(7,524 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
302,938 |
|
|
|
255,178 |
|
|
|
250,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
4,958,756 |
|
|
$ |
4,434,643 |
|
|
$ |
3,085,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Republic First
Bancorp,
Inc. |
Consolidated
Statements of Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
June 30, |
|
June 30, |
|
September 30, |
|
September 30, |
(in thousands, except per share amounts) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
24,683 |
|
|
$ |
22,737 |
|
$ |
18,707 |
|
|
$ |
67,593 |
|
|
$ |
55,076 |
|
|
Interest and dividends on investment securities |
|
3,778 |
|
|
|
5,072 |
|
|
6,724 |
|
|
|
15,671 |
|
|
|
21,265 |
|
|
Interest on other interest earning assets |
|
99 |
|
|
|
50 |
|
|
777 |
|
|
|
438 |
|
|
|
1,631 |
|
|
|
Total interest income |
|
|
28,560 |
|
|
|
27,859 |
|
|
26,208 |
|
|
|
83,702 |
|
|
|
77,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
5,553 |
|
|
|
5,320 |
|
|
6,689 |
|
|
|
17,298 |
|
|
|
19,398 |
|
|
Interest on borrowed funds |
|
|
77 |
|
|
|
112 |
|
|
137 |
|
|
|
293 |
|
|
|
681 |
|
|
|
Total
interest expense |
|
|
5,630 |
|
|
|
5,432 |
|
|
6,826 |
|
|
|
17,591 |
|
|
|
20,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
22,930 |
|
|
|
22,427 |
|
|
19,382 |
|
|
|
66,111 |
|
|
|
57,893 |
|
|
Provision for loan losses |
|
|
850 |
|
|
|
1,000 |
|
|
450 |
|
|
|
2,800 |
|
|
|
750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
22,080 |
|
|
|
21,427 |
|
|
18,932 |
|
|
|
63,311 |
|
|
|
57,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
Service fees on deposit accounts |
|
|
2,134 |
|
|
|
2,328 |
|
|
1,990 |
|
|
|
6,166 |
|
|
|
5,450 |
|
|
Mortgage banking income |
|
|
4,962 |
|
|
|
3,389 |
|
|
2,797 |
|
|
|
10,809 |
|
|
|
8,048 |
|
|
Gain on sale of SBA loans |
|
|
649 |
|
|
|
269 |
|
|
944 |
|
|
|
1,567 |
|
|
|
2,593 |
|
|
Gain on sale of investment securities |
|
279 |
|
|
|
1,640 |
|
|
520 |
|
|
|
2,760 |
|
|
|
1,103 |
|
|
Other non-interest income |
|
|
2,007 |
|
|
|
798 |
|
|
303 |
|
|
|
3,698 |
|
|
|
1,331 |
|
|
|
Total
non-interest income |
|
|
10,031 |
|
|
|
8,424 |
|
|
6,554 |
|
|
|
25,000 |
|
|
|
18,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
14,596 |
|
|
|
13,177 |
|
|
14,314 |
|
|
|
41,154 |
|
|
|
40,378 |
|
|
Occupancy and equipment |
|
|
5,524 |
|
|
|
5,554 |
|
|
4,734 |
|
|
|
16,375 |
|
|
|
12,970 |
|
|
Legal and professional fees |
|
|
940 |
|
|
|
1,009 |
|
|
1,123 |
|
|
|
2,879 |
|
|
|
2,888 |
|
|
Foreclosed real estate |
|
|
80 |
|
|
|
75 |
|
|
799 |
|
|
|
437 |
|
|
|
1,653 |
|
|
Regulatory assessments and related fees |
|
625 |
|
|
|
675 |
|
|
62 |
|
|
|
1,930 |
|
|
|
904 |
|
|
Goodwill impairment |
|
|
5,011 |
|
|
|
- |
|
|
- |
|
|
|
5,011 |
|
|
|
- |
|
|
Other operating expenses |
|
|
6,804 |
|
|
|
6,174 |
|
|
6,792 |
|
|
|
19,730 |
|
|
|
18,209 |
|
|
|
Total
non-interest expense |
|
|
33,580 |
|
|
|
26,664 |
|
|
27,824 |
|
|
|
87,516 |
|
|
|
77,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision (benefit) for income taxes |
|
(1,469 |
) |
|
|
3,187 |
|
|
(2,338 |
) |
|
|
795 |
|
|
|
(1,334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
(503 |
) |
|
|
675 |
|
|
(516 |
) |
|
|
(158 |
) |
|
|
(319 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(966 |
) |
|
$ |
2,512 |
|
$ |
(1,822 |
) |
|
$ |
953 |
|
|
$ |
(1,015 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Common Share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.02 |
) |
|
$ |
0.04 |
|
$ |
(0.03 |
) |
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
Diluted |
|
$ |
(0.02 |
) |
|
$ |
0.04 |
|
$ |
(0.03 |
) |
|
$ |
0.02 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
58,853 |
|
|
|
58,851 |
|
|
58,843 |
|
|
|
58,851 |
|
|
|
58,830 |
|
|
Diluted |
|
|
64,432 |
|
|
|
58,883 |
|
|
59,207 |
|
|
|
60,751 |
|
|
|
59,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2020 |
|
June 30, 2020 |
|
September 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 |
|
$ |
383,632 |
|
$ |
99 |
|
0.10 |
% |
|
$ |
198,345 |
|
$ |
50 |
|
0.10 |
% |
|
$ |
146,446 |
|
$ |
777 |
|
2.10 |
% |
Securities |
|
|
908,166 |
|
|
3,784 |
|
1.67 |
% |
|
|
1,033,560 |
|
|
5,077 |
|
1.96 |
% |
|
|
1,055,154 |
|
|
6,743 |
|
2.56 |
% |
Loans
receivable |
|
|
2,617,981 |
|
|
24,829 |
|
3.77 |
% |
|
|
2,335,500 |
|
|
22,884 |
|
3.94 |
% |
|
|
1,540,834 |
|
|
18,816 |
|
4.84 |
% |
Total interest-earning assets |
|
3,909,779 |
|
|
28,712 |
|
2.92 |
% |
|
|
3,567,405 |
|
|
28,011 |
|
3.16 |
% |
|
|
2,742,434 |
|
|
26,336 |
|
3.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets |
|
|
269,071 |
|
|
|
|
|
|
266,178 |
|
|
|
|
|
|
247,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
4,178,850 |
|
|
|
|
|
$ |
3,833,583 |
|
|
|
|
|
$ |
2,990,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand non interest-bearing |
$ |
1,043,116 |
|
|
|
|
|
$ |
984,771 |
|
|
|
|
|
$ |
563,691 |
|
|
|
|
Demand
interest-bearing |
|
|
1,541,837 |
|
|
3,056 |
|
0.79 |
% |
|
|
1,397,790 |
|
|
2,856 |
|
0.82 |
% |
|
|
1,168,404 |
|
|
3,752 |
|
1.27 |
% |
Money market
& savings |
|
|
980,979 |
|
|
1,613 |
|
0.65 |
% |
|
|
858,782 |
|
|
1,431 |
|
0.67 |
% |
|
|
702,547 |
|
|
1,814 |
|
1.02 |
% |
Time
deposits |
|
|
217,554 |
|
|
884 |
|
1.62 |
% |
|
|
208,838 |
|
|
1,033 |
|
1.99 |
% |
|
|
208,624 |
|
|
1,123 |
|
2.14 |
% |
Total
deposits |
|
|
3,783,486 |
|
|
5,553 |
|
0.58 |
% |
|
|
3,450,181 |
|
|
5,320 |
|
0.62 |
% |
|
|
2,643,266 |
|
|
6,689 |
|
1.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
2,740,370 |
|
|
5,553 |
|
0.81 |
% |
|
|
2,465,410 |
|
|
5,320 |
|
0.87 |
% |
|
|
2,079,575 |
|
|
6,689 |
|
1.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
borrowings |
|
|
32,343 |
|
|
77 |
|
0.95 |
% |
|
|
45,474 |
|
|
112 |
|
0.99 |
% |
|
|
14,037 |
|
|
137 |
|
3.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities |
|
|
2,772,713 |
|
|
5,630 |
|
0.81 |
% |
|
|
2,510,884 |
|
|
5,432 |
|
0.87 |
% |
|
|
2,093,612 |
|
|
6,826 |
|
1.29 |
% |
Total
deposits and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other borrowings |
|
|
3,815,829 |
|
|
5,630 |
|
0.59 |
% |
|
|
3,495,655 |
|
|
5,432 |
|
0.62 |
% |
|
|
2,657,303 |
|
|
6,826 |
|
1.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest-bearing liabilities |
|
88,773 |
|
|
|
|
|
|
83,884 |
|
|
|
|
|
|
81,872 |
|
|
|
|
Shareholders' equity |
|
|
274,248 |
|
|
|
|
|
|
254,044 |
|
|
|
|
|
|
250,941 |
|
|
|
|
Total
liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity |
|
$ |
4,178,850 |
|
|
|
|
|
$ |
3,833,583 |
|
|
|
|
|
$ |
2,990,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
23,082 |
|
|
|
|
|
$ |
22,579 |
|
|
|
|
|
$ |
19,510 |
|
|
Net interest
spread |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
2.29 |
% |
|
|
|
|
|
2.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
2.35 |
% |
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
2.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2020 |
|
September 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 |
|
$ |
221,698 |
|
$ |
438 |
|
0.26 |
% |
|
$ |
96,245 |
|
$ |
1,631 |
|
2.27 |
% |
|
Securities |
|
|
1,032,289 |
|
|
15,687 |
|
2.03 |
% |
|
|
1,069,304 |
|
|
21,347 |
|
2.66 |
% |
|
Loans
receivable |
|
|
2,255,283 |
|
|
68,032 |
|
4.03 |
% |
|
|
1,506,482 |
|
|
55,408 |
|
4.92 |
% |
|
Total interest-earning assets |
|
3,509,270 |
|
|
84,157 |
|
3.20 |
% |
|
|
2,672,031 |
|
|
78,386 |
|
3.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets |
|
|
265,484 |
|
|
|
|
|
|
218,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
3,774,754 |
|
|
|
|
|
$ |
2,890,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand non interest-bearing |
$ |
891,385 |
|
|
|
|
|
$ |
533,922 |
|
|
|
|
|
Demand
interest-bearing |
|
|
1,426,181 |
|
|
9,333 |
|
0.87 |
% |
|
|
1,142,515 |
|
|
11,896 |
|
1.39 |
% |
|
Money market
& savings |
|
|
864,517 |
|
|
4,827 |
|
0.75 |
% |
|
|
691,876 |
|
|
4,894 |
|
0.95 |
% |
|
Time
deposits |
|
|
217,526 |
|
|
3,138 |
|
1.93 |
% |
|
|
179,936 |
|
|
2,608 |
|
1.94 |
% |
|
Total
deposits |
|
|
3,399,609 |
|
|
17,298 |
|
0.68 |
% |
|
|
2,548,249 |
|
|
19,398 |
|
1.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
2,508,224 |
|
|
17,298 |
|
0.92 |
% |
|
|
2,014,327 |
|
|
19,398 |
|
1.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
borrowings |
|
|
29,932 |
|
|
293 |
|
1.31 |
% |
|
|
26,836 |
|
|
681 |
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
2,538,156 |
|
|
17,591 |
|
0.93 |
% |
|
|
2,041,163 |
|
|
20,079 |
|
1.32 |
% |
|
Total
deposits and |
|
|
|
|
|
|
|
|
|
|
|
|
|
other borrowings |
|
|
3,429,541 |
|
|
17,591 |
|
0.69 |
% |
|
|
2,575,085 |
|
|
20,079 |
|
1.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest-bearing liabilities |
|
85,841 |
|
|
|
|
|
|
67,182 |
|
|
|
|
|
Shareholders' equity |
|
|
259,372 |
|
|
|
|
|
|
248,711 |
|
|
|
|
|
Total
liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity |
|
$ |
3,774,754 |
|
|
|
|
|
$ |
2,890,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
66,566 |
|
|
|
|
|
$ |
58,307 |
|
|
|
Net interest
spread |
|
|
|
|
|
2.27 |
% |
|
|
|
|
|
2.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
2.53 |
% |
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
11,040 |
|
|
$ |
10,217 |
|
|
$ |
8,056 |
|
|
$ |
8,615 |
|
|
$ |
9,266 |
|
|
$ |
8,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
charged to operating expense |
|
850 |
|
|
|
1,000 |
|
|
|
450 |
|
|
|
1,905 |
|
|
|
2,800 |
|
|
|
750 |
|
|
|
11,890 |
|
|
|
11,217 |
|
|
|
8,506 |
|
|
|
10,520 |
|
|
|
12,066 |
|
|
|
9,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries
on loans charged-off: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
10 |
|
|
|
14 |
|
|
|
59 |
|
|
|
219 |
|
|
|
41 |
|
|
|
214 |
|
Consumer |
|
3 |
|
|
|
1 |
|
|
|
3 |
|
|
|
9 |
|
|
|
10 |
|
|
|
7 |
|
Total
recoveries |
|
13 |
|
|
|
15 |
|
|
|
62 |
|
|
|
228 |
|
|
|
51 |
|
|
|
221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
charged-off: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
(50 |
) |
|
|
(149 |
) |
|
|
(72 |
) |
|
|
(1,356 |
) |
|
|
(199 |
) |
|
|
(1,002 |
) |
Consumer |
|
(2 |
) |
|
|
(43 |
) |
|
|
(29 |
) |
|
|
(126 |
) |
|
|
(67 |
) |
|
|
(117 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total
charged-off |
|
(52 |
) |
|
|
(192 |
) |
|
|
(101 |
) |
|
|
(1,482 |
) |
|
|
(266 |
) |
|
|
(1,119 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
(charge-offs) recoveries |
|
(39 |
) |
|
|
(177 |
) |
|
|
(39 |
) |
|
|
(1,254 |
) |
|
|
(215 |
) |
|
|
(898 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
end of period |
$ |
11,851 |
|
|
$ |
11,040 |
|
|
$ |
8,467 |
|
|
$ |
9,266 |
|
|
$ |
11,851 |
|
|
$ |
8,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (charge-offs) recoveries as a percentage of |
|
|
|
|
|
|
|
|
|
|
average loans outstanding |
|
0.01 |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
|
|
0.08 |
% |
|
|
0.01 |
% |
|
|
0.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percentage |
|
|
|
|
|
|
|
|
|
|
|
of period-end loans |
|
0.45 |
% |
|
|
0.43 |
% |
|
|
0.54 |
% |
|
|
0.53 |
% |
|
|
0.45 |
% |
|
|
0.54 |
% |
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) |
2020 |
|
2020 |
|
2020 |
|
2019 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
10,641 |
|
|
$ |
10,747 |
|
|
$ |
12,060 |
|
|
$ |
10,569 |
|
|
$ |
10,180 |
|
Consumer and other |
|
1,808 |
|
|
|
1,970 |
|
|
|
2,125 |
|
|
|
1,844 |
|
|
|
1,743 |
|
Total
non-accrual loans |
|
12,449 |
|
|
|
12,717 |
|
|
|
14,185 |
|
|
|
12,413 |
|
|
|
11,923 |
|
|
|
|
|
|
|
|
|
|
|
Loans past
due 90 days or more |
|
|
|
|
|
|
|
|
|
and still accruing |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
129 |
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans |
|
12,449 |
|
|
|
12,717 |
|
|
|
14,185 |
|
|
|
12,413 |
|
|
|
12,052 |
|
|
|
|
|
|
|
|
|
|
|
Other real
estate owned |
|
1,113 |
|
|
|
1,144 |
|
|
|
1,144 |
|
|
|
1,730 |
|
|
|
6,653 |
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
$ |
13,562 |
|
|
$ |
13,861 |
|
|
$ |
15,329 |
|
|
$ |
14,143 |
|
|
$ |
18,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
0.47 |
% |
|
|
0.50 |
% |
|
|
0.75 |
% |
|
|
0.71 |
% |
|
|
0.77 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
0.27 |
% |
|
|
0.31 |
% |
|
|
0.46 |
% |
|
|
0.42 |
% |
|
|
0.61 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing loan coverage |
|
95.20 |
% |
|
|
86.81 |
% |
|
|
72.03 |
% |
|
|
74.65 |
% |
|
|
70.25 |
% |
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percentage |
|
|
|
|
|
|
|
|
|
of total period-end loans |
|
0.45 |
% |
|
|
0.43 |
% |
|
|
0.54 |
% |
|
|
0.53 |
% |
|
|
0.54 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing assets / capital plus |
|
|
|
|
|
|
|
|
|
allowance for loan losses |
|
4.31 |
% |
|
|
5.21 |
% |
|
|
5.84 |
% |
|
|
5.47 |
% |
|
|
7.21 |
% |
Republic First
Bancorp,
Inc. |
Non-GAAP to
GAAP Reconciliation and Calculation of Non-GAAP Performance
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
June 30, |
|
September 30, |
|
September 30, |
(in thousands, except per share amounts) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense |
$ |
33,580 |
|
|
$ |
26,664 |
|
$ |
27,824 |
|
|
$ |
87,516 |
|
|
$ |
77,002 |
|
|
Less:
Goodwill Impairment |
|
(5,011 |
) |
|
|
- |
|
|
- |
|
|
|
(5,011 |
) |
|
|
- |
|
|
Adjusted
Non-interest Expense |
|
28,569 |
|
|
|
26,664 |
|
|
27,824 |
|
|
|
82,505 |
|
|
|
77,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
(966 |
) |
|
|
2,512 |
|
|
(1,822 |
) |
|
|
953 |
|
|
|
(1,015 |
) |
|
Plus:
Goodwill Impairment |
|
5,011 |
|
|
|
- |
|
|
- |
|
|
|
5,011 |
|
|
|
- |
|
|
Less: Tax
Effect of Goodwill Impairment |
|
(1,271 |
) |
|
|
- |
|
|
- |
|
|
|
(1,271 |
) |
|
|
- |
|
|
Adjusted Net
Income |
|
2,774 |
|
|
|
2,512 |
|
|
(1,822 |
) |
|
|
4,693 |
|
|
|
(1,015 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
58,853 |
|
|
|
58,851 |
|
|
58,843 |
|
|
|
58,851 |
|
|
|
58,830 |
|
|
Diluted |
|
64,432 |
|
|
|
58,883 |
|
|
59,207 |
|
|
|
60,751 |
|
|
|
59,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Common Share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.04 |
|
$ |
(0.03 |
) |
|
$ |
0.08 |
|
|
$ |
(0.02 |
) |
|
Diluted |
$ |
0.04 |
|
|
$ |
0.04 |
|
$ |
(0.03 |
) |
|
$ |
0.08 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
Republic First Bancorp (NASDAQ:FRBK)
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From Mar 2024 to Apr 2024
Republic First Bancorp (NASDAQ:FRBK)
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From Apr 2023 to Apr 2024