FRBK Republic First Bancorp Inc

Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2017.

		Twelve Months Ended
($ in millions, except per share data)		12/31/17		12/31/16		% Change
Assets		$	2,322.3	$	1,923.9	21	%
Loans			1,162.3		965.0	20	%
Deposits			2,063.3		1,677.7	23	%
Total Revenue		$	90.9	$	69.5	31	%
Net Income			8.9		4.9	80	%
Net Income per Diluted Share		$	0.15	$	0.12	25	%

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

“2017 was another tremendous year for ‘The Power of Red is Back’ growth campaign. Deposits and loans continued to grow at exceptional rates. Our store network expanded to twenty-three convenient locations and we solidified our position as one of the top residential mortgage lenders in our market through the successful integration of the Oak Mortgage team. I am excited over the opportunities we see in 2018 and beyond to build on the success achieved to this point. We are clearly giving customers a reason to Love Their Bank Again.”

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

“The momentum of our expansion strategy continues to build as we attract new FANS throughout our footprint. We believe we’ve put ourselves in perfect position to capitalize on opportunities that arise as our competition continues to alienate customers with declining levels of service, higher fees and fewer locations. In addition, the reduction in the corporate tax rate included in Tax Cuts and Jobs Act of 2017 will result in a significant benefit for us in the years to come. We intend on utilizing the savings generated by this Act to invest in our growth and expansion which will result in the creation of new jobs, improvements in technology and the ability to further contribute to the communities which we serve.” Highlights for the Period Ended December 31, 2017

• Net income increased by 80% to $8.9 million, or $0.15 per share, for the twelve months ended December 31, 2017 compared to $4.9 million, or $0.12 per share, for the twelve months ended December 31, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy. 
• Net Income was $2.7 million, or $0.05 per share, in the fourth quarter of 2017 compared to $2.3 million, or $0.04 per share, in the third quarter of 2017 and $1.5 million, or $0.03 per share, in the fourth quarter of 2016. Earnings in the fourth quarter of 2017 were impacted by two significant and infrequent events, as described below. 
• The Company reversed its deferred tax asset valuation allowance during the fourth quarter of 2017 resulting in an increase in net income of $2.9 million, or $0.05 per share, during the period. This entry factors in the impact of the new corporate tax rate under the Tax Cuts and Jobs Act signed into law on December 22, 2017. 
• Earnings in the fourth quarter of 2017 were also impacted by a $2.2 million write-down related to the Company’s largest non-performing asset included in OREO. Management’s decision to aggressively pursue a resolution for this asset resulted in the execution of an agreement of sale a required reduction in the carrying value. 
• Total deposits increased by $386 million, or 23%, to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016. 
• The fastest growing segment of the Company’s deposit base is non-interest bearing demand deposits. These balances grew by 35% to $439 million during 2017.  
• New stores opened since the beginning of the “Power of Red is Back” expansion campaign are currently growing deposits at an average rate of $27 million per year. The average deposit growth for all stores over the last twelve months was approximately $20 million per store. 
• A new store was recently opened in Fairless Hills, PA launching our expansion into Bucks County. Four new stores have been opened over the last twelve months, increasing the total store count to twenty-three locations. Six additional store openings are planned for 2018.  
• Total assets increased by $398 million, or 21%, to $2.3 billion as of December 31, 2017 compared to $1.9 billion as of December 31, 2016. 
• Total loans grew $197 million, or 20%, to $1.2 billion as of December 31, 2017 compared to $965 million at December 31, 2016. 
• Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.94% as of December 31, 2017 compared to 1.51% as of December 31, 2016. 
• The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $378 million in loans during 2017.
• Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy. More than $51 million in new SBA loans were originated during 2017. 
• The Company’s Total Risk-Based Capital ratio was 16.70% and Tier I Leverage Ratio was 10.64% at December 31, 2017. 
• Book value per common share increased to $3.97 as of December 31, 2017 compared to $3.79 as of December 31, 2016.

Income Statement

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

	Three Months Ended											Twelve Months Ended
	12/31/17			12/31/16				%Change				12/31/17			12/31/16				%Change
Total Revenue	$	24,421			$	19,363			26	%		$	90,946			$	69,539			31	%
Provision for Loan Losses		400				-			100	%			900				1,557			(42	%)
Non-interest Expense		21,622				15,970			35	%			75,276				56,293			34	%
Income (Loss) Before Taxes		(143	)			1,447			(110	%)			5,986				4,826			24	%
Provision (Benefit) for Taxes		(2,881	)			(50	)		n/m				(2,919	)			(119	)		n/m
Net Income		2,738				1,497			83	%			8,905				4,945			80	%
Net Income per Diluted Share	$	0.05			$	0.03			67	%		$	0.15			$	0.12			25	%

The Company reported net income of $2.7 million, or $0.05 per diluted share, for the three month period ended December 31, 2017, compared to net income of $1.5 million, or $0.03 per diluted share, for the three month period ended December 31, 2016. Net income for the twelve month period ended December 31, 2017 was $8.9 million, or $0.15 per diluted share, compared to net income of $4.9 million, or $0.12 per diluted share, for the twelve months ended December 31, 2016. Net income in the fourth quarter of 2017 was impacted by two significant and infrequent events described in the following paragraphs.

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law which included a reduction in the corporate tax rate from 35% to 21%. As a result of the change in the tax rate, the value of the Company’s existing deferred tax assets will permanently decrease by $7.7 million. A charge for this impairment was recorded during the fourth quarter. However, the Company has carried a valuation allowance against its deferred tax assets for the last several years. During the fourth quarter, management determined that the valuation allowance was no longer required and recorded an entry to reverse the $10.6 million valuation allowance. The combination of these two entries resulted in the recognition of a net tax benefit and increase in earnings in the amount of $2.9 million during the fourth quarter.

Earnings in the fourth quarter were also impacted by a writedown of $2.2 million against the Company’s largest non-performing asset. Management’s decision to aggressively pursue a resolution for a property held in the other real estate owned portfolio resulted in the execution of an agreement of sale and a required reduction in the carrying value. Closing on the sale is expected to occur during the first quarter of 2018.

Total revenue increased by $5.1 million, or 26%, to $24.4 million for the three month period ended December 31, 2017, compared to $19.4 million for the three month period ended December 31, 2016. This increase is primarily attributable to higher interest income as a result of the strong growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion program.

Non-interest income increased to $5.0 million for the three month period ended December 31, 2017 compared to $4.7 million for the three month period ended December 31, 2016.

Non-interest expenses increased by $5.7 million, or 35%, to $21.6 million during the three month period ended December 31, 2017 compared to $16.0 million during the three months ended December 31, 2016. This increase was primarily driven by the addition of expenses related to the “Power of Red is Back” growth and expansion strategy. Salary and employee benefit costs were higher at the Bank as a result of annual merit increases along with increased staffing levels related to our growth strategy. Three new stores were opened during 2017. The Company now has twenty-three store locations. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses. In addition, the writedown of $2.2 million related to an OREO property described earlier also contributed to the increase in non-interest expenses.

Balance Sheet

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

Description	12/31/17		12/31/16		%Change		09/30/17		%Change
Total assets	$	2,322,347	$	1,923,931	21	%	$	2,141,563	8	%
Total loans (net)		1,153,679		955,817	21	%		1,087,147	6	%
Total deposits		2,063,295		1,677,670	23	%		1,885,405	9	%
Total core deposits		2,043,816		1,677,403	22	%		1,876,840	9	%

Total assets increased by $398 million, or 21%, as of December 31, 2017 when compared to December 31, 2016.  Deposits grew by $386 million to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016. Non-interest bearing demand deposit balances increased by 35% during 2017. The number of deposit accounts has also grown by 35% during the past twelve months. The strong growth in assets, loans and deposits has been driven by the addition of new stores and the successful execution of the Company’s aggressive growth strategy referred to as “The Power of Red is Back.”

Core Deposits

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

Description	12/31/17		12/31/16		%Change		09/30/17		%Change		4th Qtr2017Cost ofFunds
Demand noninterest-bearing	$	438,500	$	324,912	35	%	$	398,794	10	%	0.00	%
Demand interest-bearing		807,736		605,950	33	%		745,878	8	%	0.48	%
Money market and savings		700,321		635,644	10	%		619,265	13	%	0.54	%
Certificates of deposit		97,259		110,897	(12	%)		112,903	(14	%)	1.04	%
Total core deposits	$	2,043,816	$	1,677,403	22	%	$	1,876,840	9	%	0.43	%

Core deposits increased by 22% to $2.0 billion at December 31, 2017 compared to $1.7 billion at December 31, 2016 as the Company moves forward with its growth strategy to increase the number of stores and expand its banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. On a percentage basis, the Company recognized strongest growth in non-interest bearing demand deposit balances year over year as a result of the successful execution of its strategy.

Lending

Loan balances by type are as follows (dollars in thousands):

Description	12/31/17		% ofTotal		12/31/16		% ofTotal		09/30/17		% ofTotal
Commercial real estate	$	433,304	37	%	$	378,519	40	%	$	415,532	38	%
Construction and land development		104,617	9	%		61,453	5	%		93,657	8	%
Commercial and industrial		173,343	15	%		174,744	20	%		163,085	15	%
Owner occupied real estate		309,838	27	%		276,986	28	%		297,880	27	%
Consumer and other		76,412	7	%		63,588	6	%		71,867	7	%
Residential mortgage		64,764	5	%		9,682	1	%		53,384	5	%
Gross loans	$	1,162,278	100	%	$	964,972	100	%	$	1,095,405	100	%

Gross loans increased by $197 million, or 20%, to $1.2 billion at December 31, 2017 compared to $965 million at December 31, 2016 as a result of the steady growth in quality loan demand over the last twelve months and continued success with the relationship banking model. The Company experienced strongest growth in commercial real estate, residential mortgages and the owner occupied categories.

Asset Quality

The Company’s non-performing asset balances and asset quality ratios are highlighted below:

	Three Months Ended
	12/31/17		09/30/17		12/31/16
Non-performing assets / capital and reserves	9	%	10	%	13	%
Non-performing assets / total assets	0.94	%	1.07	%	1.51	%
Quarterly net loan charge-offs / average loans	0.02	%	0.43	%	0.12	%
Allowance for loan losses / gross loans	0.74	%	0.75	%	0.95	%
Allowance for loan losses / non-performing loans	58	%	60	%	48	%

The percentage of non-performing assets to total assets decreased to 0.94% at December 31, 2017, compared to 1.51% at December 31, 2016. One of the Company’s largest non-performing loan relationships has been restructured and returned to performing status during 2017. In addition, the Company’s largest asset held in other real estate owned was written down during the fourth quarter of 2017 as a result of the Company’s decision to aggressively pursue the sale of this asset.  The ratio of non-performing assets to capital and reserves decreased to 9% at December 31, 2017 compared to 13% at December 31, 2016.

Capital

The Company’s capital ratios at December 31, 2017 were as follows:

	Actual12/31/17		Regulatory Guidelines“Well Capitalized”
Leverage Ratio	10.64%		5.00%
Common Equity Ratio	14.75%		6.50%
Tier 1 Risk Based Capital	16.13%		8.00%
Total Risk Based Capital	16.70%		10.00%
Tangible Common Equity	9.56%		n/a

Total shareholders’ equity increased to $226 million at December 31, 2017 compared to $215 million at December 31, 2016. Book value per common share increased to $3.97 at December 31, 2017 compared to $3.79 per share at December 31, 2016.  The Company completed a common stock offering in the amount of $100 million during the fourth quarter of 2016.

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its twenty-three store locations in the Greater Philadelphia and Southern New Jersey market place.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with the most convenient hours compared to any bank in its market.  The Bank offers free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint Network. The Bank also offers a wide range of residential mortgage products through its wholly owned subsidiary, Oak Mortgage Company. For more information about Republic Bank, visit www.myrepublicbank.com.

Forward Looking Statements

The Company may from time to time make written or oral “forward-looking statements”, including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.  For example, risks and uncertainties can arise with changes in: general economic conditions, including turmoil in the financial markets and related efforts of government agencies to stabilize the financial system; the adequacy of our allowance for loan losses and our methodology for determining such allowance; adverse changes in our loan portfolio and credit risk-related losses and expenses; concentrations within our loan portfolio, including our exposure to commercial real estate loans, and to our primary service area; changes in interest rates; business conditions in the financial services industry, including competitive pressure among financial services companies, new service and product offerings by competitors, price pressures and similar items; deposit flows; loan demand; the regulatory environment, including evolving banking industry standards, changes in legislation or regulation; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; our securities portfolio and the valuation of our securities; accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements; rapidly changing technology; litigation liabilities, including costs, expenses, settlements and judgments; and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.  You should carefully review the risk factors described in the Form 10-K for the year ended December 31, 2016 and other documents the Company files from time to time with the Securities and Exchange Commission. The words “would be,” “could be,” “should be,” “probability,” “risk,” “target,” “objective,” “may,” “will,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and similar expressions or variations on such expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as may be required by applicable law or regulations.

Source:			Republic First Bancorp, Inc.
Contact:			Frank A. Cavallaro, CFO
			(215) 735-4422

Republic First Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)
						December 31,				September 30,				December 31,
(dollars in thousands, except per share amounts)						2017				2017				2016
ASSETS
	Cash and due from banks					$	36,073			$	27,181			$	19,830
	Interest-bearing deposits and federal funds sold						25,869				71,601				14,724
		Total cash and cash equivalents					61,942				98,782				34,554
	Securities - Available for sale						464,430				377,757				369,739
	Securities - Held to maturity						472,213				416,987				432,499
	Restricted stock						1,918				1,678				1,366
		Total investment securities					938,561				796,422				803,604
	Loans held for sale						45,700				41,711				28,065
	Loans receivable						1,162,278				1,095,405				964,972
	Allowance for loan losses						(8,599	)			(8,258	)			(9,155	)
		Net loans					1,153,679				1,087,147				955,817
	Premises and equipment						74,947				71,715				57,040
	Other real estate owned						6,966				9,169				10,174
	Other assets						40,552				36,617				34,677
	Total Assets					$	2,322,347			$	2,141,563			$	1,923,931
LIABILITIES
	Non-interest bearing deposits					$	438,500			$	398,794			$	324,912
	Interest bearing deposits						1,624,795				1,486,611				1,352,758
		Total deposits					2,063,295				1,885,405				1,677,670
	Subordinated debt						21,681				21,663				21,881
	Other liabilities						10,911				9,293				9,327
	Total Liabilities						2,095,887				1,916,361				1,708,878
SHAREHOLDERS' EQUITY
	Common stock - $0.01 par value						575				575				573
	Additional paid-in capital						256,285				255,752				253,570
	Accumulated deficit						(18,983	)			(21,721	)			(27,888	)
	Treasury stock at cost						(3,725	)			(3,725	)			(3,725	)
	Stock held by deferred compensation plan						(183	)			(183	)			(183	)
	Accumulated other comprehensive loss						(7,509	)			(5,496	)			(7,294	)
	Total Shareholders' Equity						226,460				225,202				215,053
	Total Liabilities and Shareholders' Equity					$	2,322,347			$	2,141,563			$	1,923,931

 

Republic First Bancorp, Inc.
Consolidated Statements of Operations
(Unaudited)
						Three Months Ended											Twelve Months Ended
						December 31,				September 30,			December 31,				December 31,				December 31,
(in thousands, except per share amounts)						2017				2017			2016				2017				2016
INTEREST INCOME
	Interest and fees on loans					$	13,576			$	12,989		$	10,826			$	50,094			$	41,787
	Interest and dividends on investment securities						5,568				4,752			3,636				20,178				11,967
	Interest on other interest earning assets						265				181			174				577				473
		Total interest income					19,409				17,922			14,636				70,849				54,227
INTEREST EXPENSE
	Interest on deposits						2,222				1,872			1,650				7,418				5,669
	Interest on borrowed funds						320				338			296				1,366				1,194
		Total interest expense					2,542				2,210			1,946				8,784				6,863
	Net interest income						16,867				15,712			12,690				62,065				47,364
	Provision for loan losses						400				-			-				900				1,557
	Net interest income after provision for loan losses						16,467				15,712			12,690				61,165				45,807
NON-INTEREST INCOME
	Service fees on deposit accounts						1,084				1,067			748				3,904				2,658
	Mortgage banking income						2,619				3,159			2,657				11,170				5,062
	Gain on sale of SBA loans						1,063				831			769				3,378				4,981
	Gain (loss) on sale of investment securities						(85	)			-			-				(146	)			656
	Other non-interest income						331				721			553				1,791				1,955
		Total non-interest income					5,012				5,778			4,727				20,097				15,312
NON-INTEREST EXPENSE
	Salaries and employee benefits						10,159				9,829			8,268				37,959				28,602
	Occupancy and equipment						2,947				3,064			2,424				11,774				9,627
	Legal and professional fees						953				610			560				2,877				2,039
	Foreclosed real estate						2,388				746			572				4,092				2,182
	Regulatory assessments and related fees						359				355			402				1,367				1,413
	Other operating expenses						4,816				4,561			3,744				17,207				12,430
		Total non-interest expense					21,622				19,165			15,970				75,276				56,293
Income (loss) before benefit for income taxes							(143	)			2,325			1,447				5,986				4,826
Provision (benefit) for income taxes							(2,881	)			4			(50	)			(2,919	)			(119	)
Net income						$	2,738			$	2,321		$	1,497			$	8,905			$	4,945
Net Income per Common Share
	Basic					$	0.05			$	0.04		$	0.03			$	0.16			$	0.13
	Diluted					$	0.05			$	0.04		$	0.03			$	0.15			$	0.12
Average Common Shares Outstanding
	Basic						56,988				56,974			43,456				56,933				39,281
	Diluted						58,360				58,314			44,317				58,250				39,865

 

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)		December 31, 2017									September 30, 2017									December 31, 2016
					Interest									Interest									Interest
		Average			Income/			Yield/			Average			Income/			Yield/			Average			Income/			Yield/
		Balance			Expense			Rate			Balance			Expense			Rate			Balance			Expense			Rate
Interest-earning assets:
Federal funds sold and other
interest-earning assets		$	82,918		$	265		1.27	%		$	56,316		$	181		1.28	%		$	135,214		$	174		0.51	%
Securities			888,862			5,616		2.53	%			765,678			4,805		2.51	%			649,649			3,731		2.30	%
Loans receivable			1,171,771			13,743		4.65	%			1,115,920			13,136		4.67	%			970,391			10,965		4.50	%
Total interest-earning assets			2,143,551			19,624		3.63	%			1,937,914			18,122		3.71	%			1,755,254			14,870		3.37	%
Other assets			126,904									122,513									104,225
Total assets		$	2,270,455								$	2,060,427								$	1,859,479
Interest-bearing liabilities:
Demand non interest-bearing		$	421,841								$	381,380								$	325,495
Demand interest-bearing			776,203			945		0.48	%			692,423			772		0.44	%			613,828			617		0.40	%
Money market & savings			693,684			942		0.54	%			613,506			788		0.51	%			629,646			716		0.45	%
Time deposits			120,067			335		1.11	%			109,878			312		1.13	%			110,488			317		1.14	%
Total deposits			2,011,795			2,222		0.44	%			1,797,187			1,872		0.41	%			1,679,457			1,650		0.39	%
Total interest-bearing deposits			1,589,954			2,222		0.55	%			1,415,807			1,872		0.52	%			1,353,962			1,650		0.48	%
Other borrowings			23,621			320		5.37	%			30,220			338		4.44	%			21,913			296		5.37	%
Total interest-bearing liabilities			1,613,575			2,542		0.63	%			1,446,027			2,210		0.61	%			1,375,875			1,946		0.56	%
Total deposits and
other borrowings			2,035,416			2,542		0.50	%			1,827,407			2,210		0.48	%			1,701,370			1,946		0.46	%
Non interest-bearing liabilities			9,560									9,179									10,965
Shareholders' equity			225,479									223,841									147,144
Total liabilities and
shareholders' equity		$	2,270,455								$	2,060,427								$	1,859,479
Net interest income					$	17,082								$	15,912								$	12,924
Net interest spread								3.00	%								3.10	%								2.81	%
Net interest margin								3.16	%								3.26	%								2.93	%
Note: The above tables are presented on a tax equivalent basis.

 

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
		For the twelve months ended									For the twelve months ended
(dollars in thousands)		December 31, 2017									December 31, 2016
					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		$	48,148		$	577		1.20	%		$	92,452		$	473		0.51	%
Securities			811,269			20,466		2.52	%			506,545			12,346		2.44	%
Loans receivable			1,090,851			50,687		4.65	%			936,492			42,304		4.52	%
Total interest-earning assets			1,950,268			71,730		3.68	%			1,535,489			55,123		3.59	%
Other assets			115,770									96,902
Total assets		$	2,066,038								$	1,632,391
Interest-bearing liabilities:
Demand non interest-bearing		$	372,171								$	284,326
Demand interest-bearing			687,586			3,020		0.44	%			510,745			2,088		0.41	%
Money market & savings			629,464			3,160		0.50	%			586,750			2,639		0.45	%
Time deposits			110,952			1,238		1.12	%			89,713			942		1.05	%
Total deposits			1,800,173			7,418		0.41	%			1,471,534			5,669		0.39	%
Total interest-bearing deposits			1,428,002			7,418		0.52	%			1,187,208			5,669		0.48	%
Other borrowings			35,429			1,366		3.86	%			27,471			1,194		4.35	%
Total interest-bearing liabilities			1,463,431			8,784		0.60	%			1,214,679			6,863		0.57	%
Total deposits and
other borrowings			1,835,602			8,784		0.48	%			1,499,005			6,863		0.46	%
Non interest-bearing liabilities			8,942									8,867
Shareholders' equity			221,494									124,519
Total liabilities and
shareholders' equity		$	2,066,038								$	1,632,391
Net interest income					$	62,946								$	48,260
Net interest spread								3.08	%								3.02	%
Net interest margin								3.23	%								3.14	%
Note: The above tables are presented on a tax equivalent basis.

 

Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
					Three months ended								Twelve months ended
	December 31,				September 30,				December 31,				December 31,				December 31,
(dollars in thousands)	2017				2017				2016				2017				2016
Balance at beginning of period	$	8,258			$	9,454			$	9,453			$	9,155			$	8,703
Provision charged to operating expense		400				-				-				900				1,557
		8,658				9,454				9,453				10,055				10,260
Recoveries on loans charged-off:
Commercial		1				52				1				119				169
Consumer		-				-				2				1				2
Total recoveries		1				52				3				120				171
Loans charged-off:
Commercial		(19	)			(1,243	)			(290	)			(1,523	)			(1,265	)
Consumer		(41	)			(5	)			(11	)			(53	)			(11	)
Total charged-off		(60	)			(1,248	)			(301	)			(1,576	)			(1,276	)
Net charge-offs		(59	)			(1,196	)			(298	)			(1,456	)			(1,105	)
Balance at end of period	$	8,599			$	8,258			$	9,155			$	8,599			$	9,155
Net charge-offs as a percentage of
average loans outstanding		0.02	%			0.43	%			0.12	%			0.13	%			0.12	%
Allowance for loan losses as a percentage
of period-end loans		0.74	%			0.75	%			0.95	%			0.74	%			0.95	%

 

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)	2017				2017				2017				2017				2016
Non-accrual loans:
Commercial real estate	$	13,973			$	10,140			$	17,703			$	17,695			$	17,758
Consumer and other		872				880				817				834				836
Total non-accrual loans		14,845				11,020				18,520				18,529				18,594
Loans past due 90 days or more
and still accruing		-				2,730				293				-				302
Total non-performing loans		14,845				13,750				18,813				18,529				18,896
Other real estate owned		6,966				9,169				9,909				9,944				10,174
Total non-performing assets	$	21,811			$	22,919			$	28,722			$	28,473			$	29,070
Non-performing loans to total loans		1.28	%			1.26	%			1.76	%			1.81	%			1.96	%
Non-performing assets to total assets		0.94	%			1.07	%			1.41	%			1.45	%			1.51	%
Non-performing loan coverage		57.93	%			60.06	%			50.25	%			49.55	%			48.45	%
Allowance for loan losses as a percentage
of total period-end loans		0.74	%			0.75	%			0.89	%			0.89	%			0.95	%
Non-performing assets / capital plus
allowance for loan losses		9.28	%			9.82	%			12.39	%			12.52	%			12.97	%