Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for
Republic Bank, today announced its financial results for the period
ended March 31, 2018.
|
Three Months Ended |
($ in millions, except
per share data) |
03/31/18 |
03/31/17 |
% Change |
|
|
|
|
Assets |
$ |
2,471.5 |
$ |
1,968.6 |
26 |
% |
Loans |
|
1,250.9 |
|
1,026.1 |
22 |
% |
Deposits |
|
2,123.5 |
|
1,720.5 |
23 |
% |
Total Revenue |
$ |
25.4 |
$ |
20.5 |
24 |
% |
Income Before Tax |
|
2.1 |
|
1.8 |
23 |
% |
Net Income * |
|
1.8 |
|
1.8 |
(1 |
%) |
Net
Income per Share |
$ |
0.03 |
$ |
0.03 |
- |
% |
* Note: |
Net income for the period
ended 3/31/18 reflects a normalized provision for federal and state
income taxes which was excluded from 2017 results due to an
adjustment to the DTA valuation allowance recorded by the
Company. |
Vernon W. Hill, II, Chairman of Republic
First Bancorp said:
“2018 is off to a tremendous start which can be
seen in our first quarter financial results. Assets, loans
and deposits have all grown in excess of 20% year over year. And
our revenue growth (24%) outpaced non-interest expense growth (20%)
despite the ongoing investment required to execute our growth and
expansion strategy. Our relentless commitment to extraordinary
customer service and convenience through all delivery channels
continues to deliver positive results throughout our
footprint.”
Harry D. Madonna, President and Chief
Executive Officer of Republic First Bancorp said:
“Momentum continues to build as the ‘Power of
Red is Back’ expansion campaign rolls into 2018. We are
thrilled to begin our expansion into Bucks County with the opening
of our newest store in Fairless Hills, PA during the first quarter.
We are very excited to introduce our unmatched commitment to
customer service and convenience to the Fairless Hills community
and look forward to the opportunity to win over new FANS throughout
this new market. We’ve also broken ground on future store locations
in Gloucester Township and Lumberton, NJ which are expected to open
by mid-year.”
Highlights for the Period Ended March 31,
2018
- Total deposits increased by $403 million, or 23%, to $2.1
billion as of March 31, 2018 compared to $1.7 billion as of March
31, 2017. On a linked quarter basis deposits grew $60 million, or
3%, when compared to December 31, 2017.
- Non-interest bearing demand deposits grew by $100 million, or
27%, to $464 million over the last 12 months.
- 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, while the average deposit
growth for all stores over the last twelve months was approximately
$19 million per store.
- Income before tax increased by 23% to $2.1 million for the
three months ended March 31, 2018 compared to $1.8 million for the
three months ended March 31, 2017. Total revenue grew by 24% while
non-interest expense increased by 20%. The Company continues to
open new stores and increase profitability despite the additional
costs associated with the expansion strategy.
- Net income after tax was $1.8 million, or $0.03 per share, for
the three month periods ending March 31, 2018 and March 31, 2017.
The Company began recognizing a normalized provision for federal
and state income taxes during the first quarter of 2018 after
reversing its deferred tax asset valuation allowance during the
fourth quarter of 2017. Prior year results were not impacted by an
income tax provision.
- The Company converted $10.6 million of outstanding trust
preferred securities to 1.6 million shares of common stock during
the first quarter of 2018. This conversion will result in a
reduction of interest expense of approximately $0.9 million on an
annual basis going forward.
- There are twenty-three convenient store locations open today.
The Company began its expansion into Bucks County, PA by opening
its newest store in Fairless Hills during the first quarter. Ground
has been broken on sites in Gloucester Township and Lumberton, NJ
and are expected to be completed by mid-year. There are also
several additional sites in various stages of development for
future store locations.
- Total assets increased by $503 million, or 26%, to $2.5 billion
as of March 31, 2018 compared to $2.0 billion as of March 31,
2017.
- Total loans grew $225 million, or 22%, to $1.3 billion as of
March 31, 2018 compared to $1.0 billion at March 31,
2017.
- Asset quality continues to improve. The ratio of non-performing
assets to total assets declined to 0.85% as of March 31, 2018
compared to 1.45% as of March 31, 2017.
- The net interest margin increased to 3.23% for the three months
ended March 31, 2018 compared to 3.19% for the three months ended
March 31, 2017.
- The Company’s residential mortgage division, Oak Mortgage, is
serving the home financing needs of customers throughout its
footprint. Oak originated over $79 million in loans during the
three month period ended March 31, 2018.
- Meeting the needs of small business customers continued to be
an important part of the Company’s lending strategy. More
than $21 million in new SBA loans were originated during the three
month period ended March 31, 2018.
- The Company’s Total Risk-Based Capital ratio was 16.00% and
Tier I Leverage Ratio was 10.09% at March 31, 2018.
- Book value per common share increased to $3.99 as of March 31,
2018 compared to $3.84 as of March 31, 2017.
Income Statement
The major components of the income statement are
as follows (dollars in thousands, except per share data):
|
Three Months Ended |
|
03/31/18 |
|
03/31/17 |
|
% Change |
|
|
|
|
|
|
|
Total Revenue |
$ |
25,434 |
|
$ |
20,525 |
|
|
24 |
% |
Provision for Loan
Losses |
|
400 |
|
|
- |
|
|
100 |
% |
Non-interest
Expense |
|
20,102 |
|
|
16,804 |
|
|
20 |
% |
Income Before
Taxes |
|
2,149 |
|
|
1,753 |
|
|
23 |
% |
Provision (Benefit) for
Taxes |
|
372 |
|
|
(34 |
) |
|
n/m |
|
Net Income |
|
1,777 |
|
|
1,787 |
|
|
(1 |
%) |
Net
Income per Share |
$ |
0.03 |
|
$ |
0.03 |
|
|
- |
% |
The Company reported net income of $1.8 million,
or $0.03 per share, for the three month periods ended March 31,
2018 and March 31, 2017.
Total revenue increased by $4.9 million, or 24%,
to $25.4 million for the three month period ended March 31, 2018,
compared to $20.5 million for the three month period ended March
31, 2017. 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 $4.5 million
for the three month period ended March 31, 2018 compared to $4.3
million for the three month period ended March 31, 2017.
Non-interest expenses increased by $3.3 million,
or 20%, to $20.1 million during the three month period ended March
31, 2018 compared to $16.8 million during the three months ended
March 31, 2017. This increase was mainly caused by the increase in
salaries and employee benefits as a result of annual merit
increases along with increased staffing levels related to our
growth strategy of adding and relocating stores. Occupancy and
equipment expenses associated with the growth and relocation
strategy also contributed to the increase in non-interest
expenses.
The Company recorded a provision for income
taxes in the amount of $372 thousand for the three month period
ended March 31, 2018 compared to a benefit for income taxes in the
amount of $34 thousand for the three month period ended March 31,
2017. The amount recorded during the first quarter of 2018 is a
normalized provision reflective of the new corporate tax rate
included in the Tax Cuts and Jobs Act of 2017. The benefit for
income taxes recognized during the first quarter of 2017 was driven
by an adjustment to the deferred tax asset valuation allowance that
had been recorded by Company in previous years. This
valuation allowance was reversed during the fourth quarter of
2017.
Balance Sheet
The major components of the balance sheet are as
follows (dollars in thousands):
Description |
03/31/18 |
03/31/17 |
% Change |
|
12/31/17 |
% Change |
|
|
|
|
|
|
|
Total
assets |
$ |
2,471,464 |
$ |
1,968,588 |
26 |
% |
$ |
2,322,347 |
6 |
% |
Total
loans (net) |
|
1,244,262 |
|
1,016,962 |
22 |
% |
|
1,153,679 |
8 |
% |
Total deposits |
|
2,123,451 |
|
1,720,512 |
23 |
% |
|
2,063,295 |
3 |
% |
Total assets increased by $502.9 million, or
26%, as of March 31, 2018 when compared to March 31, 2017.
Deposits grew by $402.9 million to $2.1 billion as of March 31,
2018 compared to $1.7 billion as of March 31, 2017. The number of
deposit accounts has grown by 36% during the past twelve months.
The strong growth in assets, loans and deposits has been driven by
the addition of new stores and the successful execution of the
Company’s aggressive growth strategy referred to as “The Power of
Red is Back.”
Deposits
Deposits by type of account are as follows
(dollars in thousands):
Description |
03/31/18 |
03/31/17 |
%Change |
|
12/31/17 |
%Change |
|
1st Qtr 2018 Cost of Funds |
|
|
|
|
|
|
|
|
Demand noninterest-bearing |
$ |
464,383 |
$ |
364,278 |
27 |
% |
$ |
438,500 |
6 |
% |
0.00 |
% |
Demand interest-bearing |
|
826,726 |
|
629,583 |
31 |
% |
|
807,736 |
2 |
% |
0.57 |
% |
Money
market and savings |
|
703,263 |
|
620,218 |
13 |
% |
|
700,321 |
- |
% |
0.57 |
% |
Certificates of deposit |
|
129,079 |
|
106,433 |
21 |
% |
|
116,738 |
11 |
% |
1.15 |
% |
Total deposits |
$ |
2,123,451 |
$ |
1,720,512 |
23 |
% |
$ |
2,063,295 |
3 |
% |
0.49 |
% |
|
|
|
|
|
|
|
Deposits increased to $2.1 billion at March 31,
2018 compared to $1.7 billion at March 31, 2017 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, deposits. The Company recognized strongest growth in
demand deposit balances, on a year to year basis as a result of the
successful execution of its strategy.
Lending
Loans by type are as follows (dollars in
thousands):
Description |
03/31/18 |
% of Total |
|
03/31/17 |
% of Total |
|
12/31/17 |
% ofTotal |
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
467,585 |
37 |
% |
$ |
394,840 |
39 |
% |
$ |
433,304 |
37 |
% |
Construction and land
development |
|
118,607 |
10 |
% |
|
78,636 |
7 |
% |
|
104,617 |
9 |
% |
Commercial and industrial |
|
189,420 |
15 |
% |
|
188,873 |
18 |
% |
|
173,343 |
15 |
% |
Owner
occupied real estate |
|
315,418 |
25 |
% |
|
273,996 |
27 |
% |
|
309,838 |
27 |
% |
Consumer and other |
|
78,834 |
6 |
% |
|
67,146 |
7 |
% |
|
76,412 |
7 |
% |
Residential mortgage |
|
81,048 |
7 |
% |
|
22,652 |
2 |
% |
|
64,764 |
5 |
% |
Gross
loans |
$ |
1,250,912 |
100 |
% |
$ |
1,026,143 |
100 |
% |
$ |
1,162,278 |
100 |
% |
|
|
|
|
|
|
|
Gross loans increased by $224.8 million, or 22%,
to $1.3 billion at March 31, 2018 compared to $1.0 billion at March
31, 2017 as a result of the steady flow in quality loan demand over
the last twelve months and continued success with the relationship
banking model. The Company experienced strong growth across all
loan categories.
Asset Quality
The Company’s non-performing asset balances and
asset quality ratios are highlighted below:
|
Three Months Ended |
|
03/31/18 |
12/31/17 |
03/31/17 |
|
|
|
|
Non-performing assets / capital and reserves |
9 |
% |
9 |
% |
13 |
% |
Non-performing assets / total assets |
0.85 |
% |
0.94 |
% |
1.45 |
% |
Quarterly net loan charge-offs / average loans |
0.77 |
% |
0.02 |
% |
(0.01 |
%) |
Allowance for loan losses / gross loans |
0.53 |
% |
0.74 |
% |
0.89 |
% |
Allowance for loan losses / non-performing loans |
47 |
% |
58 |
% |
50 |
% |
The percentage of non-performing assets to total
assets decreased to 0.85% at March 31, 2018, compared to 1.45% at
March 31, 2017. The ratio of non-performing assets to capital
and reserves decreased to 9% at March 31, 2018 compared to 13% at
March 31, 2017 primarily as a result of decreases in non-performing
assets over the last 12 months.
Capital
The Company’s capital ratios at March 31, 2018
were as follows:
|
Actual03/31/18 |
Regulatory Guidelines“Well
Capitalized” |
|
|
|
Leverage Ratio |
10.09 |
% |
5.00 |
% |
Common Equity Ratio |
14.87 |
% |
6.50 |
% |
Tier
1 Risk Based Capital |
15.58 |
% |
8.00 |
% |
Total
Risk Based Capital |
16.00 |
% |
10.00 |
% |
Tangible Common Equity |
9.29 |
% |
n/a |
|
Total shareholders’ equity increased to $234.1
million at March 31, 2018 compared to $218.3 million at March 31,
2017. Book value per common share increased to $3.99 at March 31,
2018 compared to $3.84 per share at March 31, 2017.
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 stores
located 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, including those related to our Five Year
Strategic Goals, 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, 2017 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in
thousands, except per share amounts) |
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
|
$ |
21,927 |
|
|
$ |
36,073 |
|
|
$ |
25,119 |
|
|
|
Interest-bearing deposits and federal funds sold |
|
9,142 |
|
|
|
25,869 |
|
|
|
11,472 |
|
|
|
|
Total cash
and cash equivalents |
|
|
31,069 |
|
|
|
61,942 |
|
|
|
36,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
- Available for sale |
|
|
519,692 |
|
|
|
464,430 |
|
|
|
362,328 |
|
|
|
Securities
- Held to maturity |
|
|
519,295 |
|
|
|
472,213 |
|
|
|
421,850 |
|
|
|
Restricted
stock |
|
|
|
5,435 |
|
|
|
1,918 |
|
|
|
1,366 |
|
|
|
|
Total
investment securities |
|
|
1,044,422 |
|
|
|
938,561 |
|
|
|
785,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held
for sale |
|
|
|
25,653 |
|
|
|
45,700 |
|
|
|
25,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable |
|
|
|
1,250,912 |
|
|
|
1,162,278 |
|
|
|
1,026,143 |
|
|
|
Allowance
for loan losses |
|
|
(6,650 |
) |
|
|
(8,599 |
) |
|
|
(9,181 |
) |
|
|
|
Net loans |
|
|
|
|
1,244,262 |
|
|
|
1,153,679 |
|
|
|
1,016,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises
and equipment |
|
|
77,153 |
|
|
|
74,947 |
|
|
|
58,926 |
|
|
|
Other real
estate owned |
|
|
|
6,966 |
|
|
|
6,966 |
|
|
|
9,944 |
|
|
|
Other
assets |
|
|
|
|
41,939 |
|
|
|
40,552 |
|
|
|
35,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
|
$ |
2,471,464 |
|
|
$ |
2,322,347 |
|
|
$ |
1,968,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
464,383 |
|
|
$ |
438,500 |
|
|
$ |
364,278 |
|
|
|
Interest
bearing deposits |
|
|
|
1,659,068 |
|
|
|
1,624,795 |
|
|
|
1,356,234 |
|
|
|
|
Total
deposits |
|
|
|
2,123,451 |
|
|
|
2,063,295 |
|
|
|
1,720,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
|
|
93,915 |
|
|
|
- |
|
|
|
- |
|
|
|
Subordinated debt |
|
|
|
11,254 |
|
|
|
21,681 |
|
|
|
21,648 |
|
|
|
Other
liabilities |
|
|
|
8,770 |
|
|
|
10,911 |
|
|
|
8,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
|
|
2,237,390 |
|
|
|
2,095,887 |
|
|
|
1,750,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Common
stock - $0.01 par value |
|
|
592 |
|
|
|
575 |
|
|
|
574 |
|
|
|
Additional
paid-in capital |
|
|
|
267,313 |
|
|
|
256,285 |
|
|
|
254,403 |
|
|
|
Accumulated
deficit |
|
|
|
(15,566 |
) |
|
|
(18,983 |
) |
|
|
(26,101 |
) |
|
|
Treasury
stock at cost |
|
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
Stock held
by deferred compensation plan |
|
(183 |
) |
|
|
(183 |
) |
|
|
(183 |
) |
|
|
Accumulated
other comprehensive loss |
|
(14,357 |
) |
|
|
(7,509 |
) |
|
|
(6,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Shareholders' Equity |
|
|
234,074 |
|
|
|
226,460 |
|
|
|
218,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
$ |
2,471,464 |
|
|
$ |
2,322,347 |
|
|
$ |
1,968,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Republic First Bancorp, Inc. |
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
(in
thousands, except per share amounts) |
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
14,269 |
|
$ |
13,576 |
|
|
$ |
11,199 |
|
|
|
|
Interest
and dividends on investment securities |
|
6,458 |
|
|
5,568 |
|
|
|
4,927 |
|
|
|
|
Interest on
other interest earning assets |
|
172 |
|
|
265 |
|
|
|
61 |
|
|
|
|
|
Total
interest income |
|
|
|
20,899 |
|
|
19,409 |
|
|
|
16,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
|
|
2,598 |
|
|
2,222 |
|
|
|
1,602 |
|
|
|
|
Interest on
borrowed funds |
|
|
185 |
|
|
320 |
|
|
|
366 |
|
|
|
|
|
Total
interest expense |
|
|
2,783 |
|
|
2,542 |
|
|
|
1,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
|
18,116 |
|
|
16,867 |
|
|
|
14,219 |
|
|
|
|
Provision
for loan losses |
|
|
|
400 |
|
|
400 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income after provision for loan losses |
|
17,716 |
|
|
16,467 |
|
|
|
14,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Service
fees on deposit accounts |
|
|
1,175 |
|
|
1,084 |
|
|
|
846 |
|
|
|
|
Mortgage
banking income |
|
|
2,186 |
|
|
2,619 |
|
|
|
2,421 |
|
|
|
|
Gain on
sales of SBA loans |
|
|
992 |
|
|
1,063 |
|
|
|
688 |
|
|
|
|
Loss on
sale of investment securities |
|
- |
|
|
(85 |
) |
|
|
- |
|
|
|
|
Other
non-interest income |
|
|
182 |
|
|
331 |
|
|
|
383 |
|
|
|
|
|
Total
non-interest income |
|
|
4,535 |
|
|
5,012 |
|
|
|
4,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
10,645 |
|
|
10,159 |
|
|
|
8,582 |
|
|
|
|
Occupancy
and equipment |
|
|
3,470 |
|
|
2,947 |
|
|
|
2,890 |
|
|
|
|
Legal and
professional fees |
|
|
759 |
|
|
953 |
|
|
|
681 |
|
|
|
|
Foreclosed
real estate |
|
|
|
311 |
|
|
2,388 |
|
|
|
346 |
|
|
|
|
Regulatory
assessments and related fees |
|
467 |
|
|
359 |
|
|
|
329 |
|
|
|
|
Other
operating expenses |
|
|
4,450 |
|
|
4,816 |
|
|
|
3,976 |
|
|
|
|
|
Total
non-interest expense |
|
|
20,102 |
|
|
21,622 |
|
|
|
16,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before provision (benefit) for income taxes |
|
2,149 |
|
|
(143 |
) |
|
|
1,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
(benefit) for income taxes |
|
|
372 |
|
|
(2,881 |
) |
|
|
(34 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
|
$ |
1,777 |
|
$ |
2,738 |
|
|
$ |
1,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
per Common Share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.03 |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
|
|
Diluted |
|
|
|
$ |
0.03 |
|
$ |
0.05 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
57,100 |
|
|
56,988 |
|
|
|
56,824 |
|
|
|
|
Diluted |
|
|
|
|
58,370 |
|
|
58,360 |
|
|
|
58,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
March 31, 2018 |
|
December 31, 2017 |
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
40,425 |
|
$ |
172 |
|
1.73 |
% |
|
$ |
82,918 |
|
$ |
265 |
|
1.27 |
% |
|
$ |
23,929 |
|
$ |
61 |
|
1.03 |
% |
Securities |
|
|
1,015,605 |
|
|
6,487 |
|
2.55 |
% |
|
|
888,862 |
|
|
5,616 |
|
2.53 |
% |
|
|
808,029 |
|
|
5,032 |
|
2.49 |
% |
Loans receivable |
|
|
1,235,124 |
|
|
14,365 |
|
4.72 |
% |
|
|
1,171,771 |
|
|
13,743 |
|
4.65 |
% |
|
|
1,008,329 |
|
|
11,338 |
|
4.56 |
% |
Total interest-earning
assets |
|
|
2,291,154 |
|
|
21,024 |
|
3.72 |
% |
|
|
2,143,551 |
|
|
19,624 |
|
3.63 |
% |
|
|
1,840,287 |
|
|
16,431 |
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
127,001 |
|
|
|
|
|
|
126,904 |
|
|
|
|
|
|
101,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,418,155 |
|
|
|
|
|
$ |
2,270,455 |
|
|
|
|
|
$ |
1,942,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand non
interest-bearing |
|
$ |
431,234 |
|
|
|
|
|
$ |
421,841 |
|
|
|
|
|
$ |
329,015 |
|
|
|
|
Demand
interest-bearing |
|
|
893,530 |
|
|
1,257 |
|
0.57 |
% |
|
|
776,203 |
|
|
945 |
|
0.48 |
% |
|
|
620,090 |
|
|
608 |
|
0.40 |
% |
Money market &
savings |
|
|
687,818 |
|
|
972 |
|
0.57 |
% |
|
|
693,684 |
|
|
942 |
|
0.54 |
% |
|
|
607,181 |
|
|
698 |
|
0.47 |
% |
Time deposits |
|
|
129,897 |
|
|
369 |
|
1.15 |
% |
|
|
120,067 |
|
|
335 |
|
1.11 |
% |
|
|
107,923 |
|
|
296 |
|
1.11 |
% |
Total deposits |
|
|
2,142,479 |
|
|
2,598 |
|
0.49 |
% |
|
|
2,011,795 |
|
|
2,222 |
|
0.44 |
% |
|
|
1,664,209 |
|
|
1,602 |
|
0.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
deposits |
|
|
1,711,245 |
|
|
2,598 |
|
0.62 |
% |
|
|
1,589,954 |
|
|
2,222 |
|
0.55 |
% |
|
|
1,335,194 |
|
|
1,602 |
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other borrowings |
|
|
40,552 |
|
|
185 |
|
1.85 |
% |
|
|
23,621 |
|
|
320 |
|
5.37 |
% |
|
|
53,138 |
|
|
366 |
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities |
|
|
1,751,797 |
|
|
2,783 |
|
0.64 |
% |
|
|
1,613,575 |
|
|
2,542 |
|
0.63 |
% |
|
|
1,388,332 |
|
|
1,968 |
|
0.57 |
% |
Total deposits
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other
borrowings |
|
|
2,183,031 |
|
|
2,783 |
|
0.52 |
% |
|
|
2,035,416 |
|
|
2,542 |
|
0.50 |
% |
|
|
1,717,347 |
|
|
1,968 |
|
0.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest-bearing
liabilities |
|
|
9,540 |
|
|
|
|
|
|
9,560 |
|
|
|
|
|
|
8,295 |
|
|
|
|
Shareholders'
equity |
|
|
225,584 |
|
|
|
|
|
|
225,479 |
|
|
|
|
|
|
216,465 |
|
|
|
|
Total liabilities
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders'
equity |
|
$ |
2,418,155 |
|
|
|
|
|
$ |
2,270,455 |
|
|
|
|
|
$ |
1,942,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
18,241 |
|
|
|
|
|
$ |
17,082 |
|
|
|
|
|
$ |
14,463 |
|
|
Net interest
spread |
|
|
|
|
|
3.08 |
% |
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
3.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
3.23 |
% |
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in
thousands) |
2018 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period |
$ |
8,599 |
|
|
$ |
8,258 |
|
|
$ |
9,155 |
|
|
|
|
|
|
|
|
|
Provision charged to
operating expense |
|
400 |
|
|
|
400 |
|
|
|
- |
|
|
|
|
8,999 |
|
|
|
8,658 |
|
|
|
9,155 |
|
|
|
|
|
|
|
|
|
Recoveries on loans
charged-off: |
|
|
|
|
|
|
Commercial |
|
- |
|
|
|
1 |
|
|
|
36 |
|
|
Consumer |
|
- |
|
|
|
- |
|
|
|
- |
|
|
Total recoveries |
|
- |
|
|
|
1 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
Loans charged-off: |
|
|
|
|
|
|
Commercial |
|
(2,151 |
) |
|
|
(19 |
) |
|
|
(8 |
) |
|
Consumer |
|
(198 |
) |
|
|
(41 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
|
Total charged-off |
|
(2,349 |
) |
|
|
(60 |
) |
|
|
(10 |
) |
|
|
|
|
|
|
|
|
Net
(charge-offs)/recoveries |
|
(2,349 |
) |
|
|
(59 |
) |
|
|
26 |
|
|
|
|
|
|
|
|
|
Balance at end of
period |
$ |
6,650 |
|
|
$ |
8,599 |
|
|
$ |
9,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a
percentage of |
|
|
|
|
|
|
average loans
outstanding |
|
0.77% |
|
|
|
0.02% |
|
|
|
(0.01% |
) |
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage |
|
|
|
|
|
|
of period-end
loans |
|
0.53% |
|
|
|
0.74% |
|
|
|
0.89% |
|
|
Republic First
Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
Summary of Non-Performing Loans and Assets |
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(dollars in
thousands) |
2018 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial real
estate |
$ |
13,322 |
|
|
$ |
13,973 |
|
|
$ |
10,140 |
|
|
$ |
17,703 |
|
|
$ |
17,695 |
|
Consumer and
other |
|
810 |
|
|
|
872 |
|
|
|
880 |
|
|
|
817 |
|
|
|
834 |
|
Total non-accrual
loans |
|
14,132 |
|
|
|
14,845 |
|
|
|
11,020 |
|
|
|
18,520 |
|
|
|
18,529 |
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days
or more |
|
|
|
|
|
|
|
|
|
and still
accruing |
|
- |
|
|
|
- |
|
|
|
2,730 |
|
|
|
293 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans |
|
14,132 |
|
|
|
14,845 |
|
|
|
13,750 |
|
|
|
18,813 |
|
|
|
18,529 |
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
6,966 |
|
|
|
6,966 |
|
|
|
9,169 |
|
|
|
9,909 |
|
|
|
9,944 |
|
|
|
|
|
|
|
|
|
|
|
Total non-performing
assets |
$ |
21,098 |
|
|
$ |
21,811 |
|
|
$ |
22,919 |
|
|
$ |
28,722 |
|
|
$ |
28,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to
total loans |
|
1.13% |
|
|
|
1.28% |
|
|
|
1.26% |
|
|
|
1.76% |
|
|
|
1.81% |
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
to total assets |
|
0.85% |
|
|
|
0.94% |
|
|
|
1.07% |
|
|
|
1.41% |
|
|
|
1.45% |
|
|
|
|
|
|
|
|
|
|
|
Non-performing loan
coverage |
|
47.06% |
|
|
|
57.93% |
|
|
|
60.06% |
|
|
|
50.25% |
|
|
|
49.55% |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage |
|
|
|
|
|
|
|
|
|
of total
period-end loans |
|
0.53% |
|
|
|
0.74% |
|
|
|
0.75% |
|
|
|
0.89% |
|
|
|
0.89% |
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets /
capital plus |
|
|
|
|
|
|
|
|
|
allowance for
loan losses |
|
8.76% |
|
|
|
9.28% |
|
|
|
9.82% |
|
|
|
12.39% |
|
|
|
12.52% |
|
Republic First Bancorp (NASDAQ:FRBK)
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