UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 28, 2015
REPUBLIC FIRST BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania
|
000-17007
|
23-2486815
|
|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
50 South 16th Street, Suite 2400, Philadelphia, PA 19102
(Address of principal executive offices) (Zip Code)
|
Registrant’s telephone number, including area code: (215) 735-4422
N/A
Former name, former address, and former fiscal year, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02 Results of Operations and Financial Condition.
On July 28, 2015, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended June 30, 2015. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this report, including the exhibit attached hereto, is furnished solely pursuant to Item 2.02 of this Form 8-K. Consequently, it is not deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section. It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.
Item 9.01
|
Financial Statements and Exhibits.
|
|
|
|
(d) |
|
|
99.1
|
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
REPUBLIC FIRST BANCORP, INC.
|
|
|
|
|
|
|
|
|
|
Date: July 28, 2015
|
By:
|
/s/ Frank A. Cavallaro
|
|
|
Frank A. Cavallaro
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
EXHIBIT INDEX
Exhibit No.
|
Description
|
|
|
99.1
|
|
![](rfblogo.jpg) |
|
|
News Release
|
Republic First Bancorp, Inc.
|
|
July 28, 2015
|
|
|
REPUBLIC FIRST BANCORP, INC. REPORTS ASSET GROWTH OF 19%
DEPOSITS INCREASE BY 22%
Philadelphia, PA, July 28, 2015 (PR Newswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the three month period ended June 30, 2015.
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions, except per share data)
|
|
06/30/15
|
|
|
06/30/14
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$ |
1,272.4 |
|
|
$ |
1,065.1 |
|
|
|
19 |
% |
Loans
|
|
|
822.9 |
|
|
|
718.9 |
|
|
|
14 |
% |
Deposits
|
|
|
1,129.8 |
|
|
|
924.7 |
|
|
|
22 |
% |
Total Revenue
|
|
$ |
11.6 |
|
|
$ |
10.8 |
|
|
|
8 |
% |
Net Income
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
(1 |
%) |
Net Income per Share
|
|
$ |
0.014 |
|
|
$ |
0.015 |
|
|
|
(7 |
%) |
“Our balance sheet growth continues to be extraordinarily positive, which underscores the strength of our expansion strategy,” said Harry D. Madonna, the Company’s Chairman and Chief Executive Officer. “With the recent openings of our newest stores in Marlton and Berlin, NJ, we continue to find that our strong commitment to outstanding service is resonating with a growing Customer base that desires a personal touch when it comes to banking.”
The Company is in the midst of an aggressive expansion plan referred to as “The Power of Red is Back” with the goal of increasing its store footprint while providing legendary customer service. “We are seeing a tremendous response to the unrivaled convenience and service that each and every one of our stores has to offer,” added Madonna. “As evidenced by the significant increase in total assets, loans and deposits, Republic Bank is poised for continued success in the Philadelphia and South Jersey regions.”
Highlights for the Period Ended June 30, 2015
|
·
|
Republic opened its 16th and 17th stores in Marlton and Berlin, NJ which were received with great acceptance by the many Fans that have come to open new accounts. The Company currently has six additional sites in various stages of construction and development for future store locations.
|
|
·
|
New stores opened within the last 2 years are currently growing deposits at an average rate of $46 million per year. While the average deposit growth for all stores over the last twelve months was $14 million per store.
|
|
·
|
Total deposits increased by $205 million, or 22%, to $1.1 billion as of June 30, 2015 compared to $925 million as of June 30, 2014.
|
|
·
|
Non-interest bearing demand deposits increased by 21% to $242 million as of June 30, 2015 compared to $200 million as of June 30, 2014.
|
|
·
|
Total assets increased by $207 million, or 19%, to $1.3 billion as of June 30, 2015 compared to $1.1 billion as of June 30, 2014.
|
|
·
|
Total loans grew $104 million, or 14%, to $823 million as of June 30, 2015 compared to $719 million at June 30, 2014.
|
|
·
|
SBA lending continued to be a focal point of the Company’s lending strategy. More than $12 million in new SBA loans were originated during the three month period ended June 30, 2015. Our team is currently ranked as the #1 SBA lender in the tri-state market of New Jersey, Pennsylvania and Delaware based on the dollar volume of loan originations.
|
|
·
|
Shareholders’ equity increased by 2% to $113 million as of June 30, 2015 compared to $111 million as of June 30, 2014.
|
|
·
|
The Company’s Total Risk-Based Capital ratio was 13.88% and Tier I Leverage Ratio was 10.62% at June 30, 2015.
|
|
·
|
Tangible book value per share was $3.00 as of June 30, 2015. This amount excludes approximately $0.38 per share attributable to the deferred tax asset valuation allowance.
|
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
06/30/15
|
|
|
06/30/14
|
|
|
% Change
|
|
|
06/30/15
|
|
|
06/30/14
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
|
$ |
11,631 |
|
|
$ |
10,773 |
|
|
|
8 |
% |
|
$ |
22,675 |
|
|
$ |
21,302 |
|
|
|
6 |
% |
Provision for Loan Losses
|
|
|
- |
|
|
|
300 |
|
|
|
(100 |
%) |
|
|
- |
|
|
|
300 |
|
|
|
(100 |
%) |
Non-interest Expenses
|
|
|
11,103 |
|
|
|
9,957 |
|
|
|
12 |
% |
|
|
21,621 |
|
|
|
19,772 |
|
|
|
9 |
% |
Net Income
|
|
|
533 |
|
|
|
537 |
|
|
|
(1 |
%) |
|
|
1,061 |
|
|
|
1,292 |
|
|
|
(18 |
%) |
Net Income per Share
|
|
$ |
0.014 |
|
|
$ |
0.015 |
|
|
|
(7 |
%) |
|
$ |
0.028 |
|
|
$ |
0.042 |
|
|
|
(33 |
%) |
The Company reported net income of $533 thousand, or $0.01 per share, for the three month period ended June 30, 2015, compared to net income of $537 thousand, or $0.02 per share, for the three month period ended June 30, 2014. Net income for the six month period ended June 30, 2015 was $1.1 million, or $0.03 per share, compared to net income of $1.3 million, or $0.04 per share, for the six months ended June 30, 2014.
Net interest income increased by $1.1 million, or 13%, to $9.6 million for the three month period ended June 30, 2015 compared to $8.5 million for the three month period ended June 30, 2014. This increase was driven by strong growth in interest-earning assets over the last twelve months.
Non-interest expenses increased by $1.1 million to $11.1 million during the three month period ended June 30, 2015 compared to $10.0 million during the three months ended June 30, 2014. This increase was primarily driven by higher salaries, employee benefits, occupancy and equipment expenses associated with the addition of new stores related to the Company’s expansion strategy over the last twelve months.
Balance Sheet
The major components of the balance sheet are as follows (dollars in thousands):
Description
|
|
06/30/15
|
|
|
06/30/14
|
|
|
% Change
|
|
|
03/31/15
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
1,272,418 |
|
|
$ |
1,065,134 |
|
|
|
19 |
% |
|
$ |
1,263,983 |
|
|
|
1 |
% |
Total loans (net)
|
|
|
814,477 |
|
|
|
706,806 |
|
|
|
15 |
% |
|
|
777,857 |
|
|
|
5 |
% |
Total deposits
|
|
|
1,129,797 |
|
|
|
924,684 |
|
|
|
22 |
% |
|
|
1,121,397 |
|
|
|
1 |
% |
Total core deposits
|
|
|
1,119,809 |
|
|
|
914,451 |
|
|
|
22 |
% |
|
|
1,111,409 |
|
|
|
1 |
% |
Total assets increased by $207.3 million, or 19%, as of June 30, 2015 when compared to June 30, 2014. Deposits grew by $205.1 million to $1.1 billion as of June 30, 2015 compared to $924.7 million as of June 30, 2014. The number of deposit accounts has grown by 30% during the past twelve months. The strong growth in assets, loans and deposits has been driven by the Company’s successful execution of its 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
|
|
06/30/15
|
|
|
06/30/14
|
|
|
%
Change
|
|
|
03/31/15
|
|
|
%
Change
|
|
|
2nd Qtr
2015 Cost of Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand noninterest-bearing
|
|
$ |
241,550 |
|
|
$ |
199,553 |
|
|
|
21 |
% |
|
$ |
237,307 |
|
|
|
2 |
% |
|
|
0.00 |
% |
Demand interest-bearing
|
|
|
327,342 |
|
|
|
212,710 |
|
|
|
54 |
% |
|
|
310,595 |
|
|
|
5 |
% |
|
|
0.41 |
% |
Money market and savings
|
|
|
488,873 |
|
|
|
431,612 |
|
|
|
13 |
% |
|
|
498,862 |
|
|
|
(2 |
%) |
|
|
0.41 |
% |
Certificates of deposit
|
|
|
62,044 |
|
|
|
70,576 |
|
|
|
(12 |
%) |
|
|
64,645 |
|
|
|
(4 |
%) |
|
|
0.79 |
% |
Total core deposits
|
|
$ |
1,119,809 |
|
|
$ |
914,451 |
|
|
|
22 |
% |
|
$ |
1,111,409 |
|
|
|
1 |
% |
|
|
0.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core deposits increased to $1.1 billion at June 30, 2015 compared to $914.5 million at June 30, 2014 as the Company moves forward with its expansion strategy to increase the number of brick and mortar stores which drives the gathering of low-cost core deposits. The Company recognized strong growth in demand, money market and savings account balances on a year to year basis.
Lending
Loans by type are as follows (dollars in thousands):
Description
|
|
06/30/15
|
|
|
%
of Total
|
|
|
06/30/14
|
|
|
%
of Total
|
|
|
03/31/15
|
|
|
% of
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
$ |
371,051 |
|
|
|
45 |
% |
|
$ |
353,458 |
|
|
|
49 |
% |
|
$ |
364,397 |
|
|
|
46 |
% |
Construction and land development
|
|
|
34,947 |
|
|
|
4 |
% |
|
|
31,224 |
|
|
|
5 |
% |
|
|
35,238 |
|
|
|
5 |
% |
Commercial and industrial
|
|
|
166,912 |
|
|
|
20 |
% |
|
|
127,818 |
|
|
|
18 |
% |
|
|
159,819 |
|
|
|
20 |
% |
Owner occupied real estate
|
|
|
202,467 |
|
|
|
25 |
% |
|
|
167,130 |
|
|
|
23 |
% |
|
|
188,783 |
|
|
|
24 |
% |
Consumer and other
|
|
|
47,475 |
|
|
|
6 |
% |
|
|
37,255 |
|
|
|
5 |
% |
|
|
40,468 |
|
|
|
5 |
% |
Residential mortgage
|
|
|
401 |
|
|
|
0 |
% |
|
|
2,330 |
|
|
|
0 |
% |
|
|
405 |
|
|
|
0 |
% |
Deferred fees
|
|
|
(378 |
) |
|
|
|
|
|
|
(346 |
) |
|
|
|
|
|
|
(309 |
) |
|
|
|
|
Gross loans
|
|
$ |
822,875 |
|
|
|
100 |
% |
|
$ |
718,869 |
|
|
|
100 |
% |
|
$ |
788,801 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans increased by $104.0 million, or 14%, to $822.9 million at June 30, 2015 compared to $718.9 million at June 30, 2014 as a result of an increase in quality loan demand over the last twelve months and continued success with its relationship banking model. The Company experienced strong growth in almost every loan category.
Asset Quality
The Company’s non-performing asset balances and asset quality ratios are highlighted below:
|
Three Months Ended
|
|
06/30/15
|
03/31/15
|
06/30/14
|
|
|
|
|
Non-performing assets / total assets
|
2.31%
|
2.28%
|
2.87%
|
Quarterly net loan charge-offs / average loans
|
1.26%
|
0.31%
|
0.11%
|
Allowance for loan losses / gross loans
|
1.02%
|
1.39%
|
1.68%
|
Allowance for loan losses / non-performing loans
|
52%
|
44%
|
45%
|
Non-performing assets / capital and reserves
|
24%
|
23%
|
25%
|
Non-performing assets decreased by $1.2 million to $29.4 million, or 2.31% of total assets, at June 30, 2015, compared to $30.6 million, or 2.87% of total assets, as of June 30, 2014. Loan charge-offs in the second quarter of 2015 were $2.5 million, or 1.26% of average loans outstanding compared to $0.2 million or 0.11% of average loans during the second quarter of 2014. This increase was driven by a charge-off associated with one commercial loan which was transferred to other real estate owned during the second quarter of 2015. A loan loss provision for this loan had been recorded in a prior period.
Capital
The Company’s capital ratios at June 30, 2015 were as follows:
|
Actual
June 30, 2015
|
Regulatory Guidelines
“Well Capitalized”
|
|
|
|
Leverage Ratio
|
10.62%
|
5.00%
|
Common Equity Ratio
|
10.95%
|
6.50%
|
Tier 1 Risk Based Capital
|
13.06%
|
8.00%
|
Total Risk Based Capital
|
13.88%
|
10.00%
|
Tangible Common Equity
|
8.92%
|
n/a
|
Total shareholders’ equity increased to $113.4 million at June 30, 2015 compared to $111.4 million at June 30, 2014. Tangible book value per share increased to $3.00 at June 30, 2015 compared to $2.95 per share at June 30, 2014.
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 seventeen stores located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Haddonfield, Cherry Hill, Voorhees, Glassboro, Marlton and Berlin, New Jersey. 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 also 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. 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, 2014 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