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, 2018.

Q4-2018 Highlights

• Income before tax increased by 70% to $10.2 million for the twelve months ended December 31, 2018 compared to $6.0 million for the twelve months ended December 31, 2017. We continue to open new stores and increase profitability despite the additional costs associated with the expansion strategy. 
• Total deposits increased by $330 million, or 16%, to $2.4 billion as of December 31, 2018 compared to $2.1 billion as of December 31, 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, while the average deposit growth for all stores over the last twelve months was approximately $14 million per store. 
• Total loans grew $274 million, or 24%, to $1.4 billion as of December 31, 2018 compared to $1.2 billion at December 31, 2017. 
• Total revenue grew by 24% during the year ended December 31, 2018 while non-interest expense increased by 11% when compared to the year ended December 31, 2017.

“The Power of Red is Back” expansion strategy continues to build momentum. As recently announced, Republic Bank is moving forward with plans to expand into New York City. Sites for several new stores have been identified in Manhattan with two to four stores projected to open during 2019.

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

“2018 was another exceptional year for ‘The Power of Red is Back’ growth campaign. Four new stores were opened during 2018 using our distinctive glass prototype building. Despite the significant investments required to execute our growth and expansion strategy, we were able to demonstrate significant improvement in profitability as net income before taxes increased by 70% year over year.  Loans increased by 24% and deposits grew by 16%. Customer accounts increased 29% as we continue to welcome new Fans every day.   With the momentum we have generated in the Metro Philadelphia market combined with our expansion in to New York City during 2019 we believe the best is yet to come.”

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

“To support our growth and expansion efforts, we continue to add top talent to our team.  We’ve recently announced the addition of Joe Tredinnick as the Market President of Pennsylvania. In addition, we continue to invest in technology and enhance our product offerings. It is our goal to deliver the best banking experience through every channel…..in-store, online, and mobile options.”

A summary of the financial results for the period ended December 31, 2018 can be found in the following table:

	Twelve Months Ended
($ in millions, except per share data)	12/31/18		12/31/17		% Change
Assets	$	2,753.3	$	2,322.3	19	%
Loans		1,436.6		1,162.3	24	%
Deposits		2,392.9		2,063.3	16	%
Total Revenue	$	112.4	$	90.9	24	%
Income Before Tax		10.2		6.0	70	%
Net Income *		8.6		8.9	(3	%)
Net Income per Share	$	0.15	$	0.15	-	%

* Note:

Net income for the period ended 12/31/18 reflects an increased provision for federal and state income taxes which did not have the same impact on 2017 results due to an adjustment to the deferred tax asset valuation allowance recorded by the Company.

Financial Highlights for the Period Ended December 31, 2018

• Total assets increased by $431 million, or 19%, to $2.8 billion as of December 31, 2018 compared to $2.3 billion as of December 31, 2017. 
• Demand deposits represent the fastest growing segment of the Company’s deposit base. These deposits grew by $315 million to $1.6 billion over the last 12 months, including growth of 18% in non-interest bearing demand deposit balances. 
• Net income before tax grew by 70% to $10.2 million for the twelve months ended December 31, 2018 compared to $6.0 million for the twelve months ended December 31, 2017. 
• We have twenty-five convenient store locations open today. During the fourth quarter of 2018 we opened new stores in Evesboro and Somers Point, NJ. Construction is underway on sites in Lumberton, NJ and Feasterville, PA. There are also multiple sites in various stages of development for future store locations. 
• Expansion into New York City is scheduled to begin in 2019. The Company is planning to open two to four new stores in Manhattan in the coming year. 
• Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.60% as of December 31, 2018 compared to 0.94% as of December 31, 2017. 
• 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. 
• The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak has originated more than $360 million in loans during the twelve month period ended December 31, 2018. 
• Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy.  More than $10 million in new SBA loans were originated during the three month period ended December 31, 2018. Republic Bank is currently ranked as the #1 SBA lender in New Jersey based on the dollar volume of loan originations. 
• The Company’s Total Risk-Based Capital ratio was 15.03% and Tier I Leverage Ratio was 9.35% at December 31, 2018. 
• Book value per common share increased to $4.17 as of December 31, 2018 compared to $3.97 as of December 31, 2017.

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
	12/31/18		12/31/17			% Change			12/31/18		12/31/17			% Change
Total Revenue	$	30,181	$	24,421		24	%		$	112,396	$	90,946		24	%
Provision for Loan Losses		600		400		50	%			2,300		900		156	%
Non-interest Expense		22,057		21,622		2	%			83,721		75,276		11	%
Income (Loss) Before Taxes		2,211		(143	)	n/m				10,205		5,986		70	%
Provision (Benefit) for Taxes		54		(2,881	)	n/m				1,578		(2,919	)	n/m
Net Income		2,157		2,738		(21	%)			8,627		8,905		(3	%)
Net Income per Share	$	0.04	$	0.05		(20	%)		$	0.15	$	0.15		-	%

The Company reported net income of $2.2 million, or $0.04 per share, for the three month period ended December 31, 2018, compared to $2.7 million, or $0.05 per share, for the three month period ended December 31, 2017.  Net income for the twelve month period ended December 31, 2018 was $8.6 million, or $0.15 per share, compared to net income of $8.9 million, or $0.15 per share, for the twelve months ended December 31, 2017.

During 2017, the Company recorded a benefit for federal and state income taxes due to the reversal of the deferred tax asset valuation allowance recorded on the balance sheet in the fourth quarter of last year. Income Before Taxes grew by 70% to $10.2 million during the year ended December 31, 2018, compared to $6.0 million for the year ended December 31, 2017. The significant improvement in pre-tax profitability has been achieved despite the ongoing investments and expenditures required for the growth and expansion strategy.

Total revenue increased by $5.8 million, or 24%, to $30.2 million for the three month period ended December 31, 2018, compared to $24.4 million for the three month period ended December 31, 2017.  Total revenue for the twelve month period ended December 31, 2018 increased by $21.5 million, or 24%, to $112.4 million. The increase in revenue 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.

The increase in total revenue for both the three month period (24%) and twelve month period (24%) ended December 31, 2018 exceeded the growth in non-interest expense for the three month period (2%) and the twelve month period (11%) ended December 31, 2018 which demonstrates the effect that our growth strategy will have on the profitability of the Bank.

Non-interest expenses increased by 2%, to $22.1 million during the quarter ended December 31, 2018 compared to $21.6 million during the quarter ended December 31, 2017. Non-interest expenses increased by 11%, to $83.7 million during the twelve month period ended December 31, 2018 compared to $75.3 million during the twelve months ended December 31, 2017. The growth in expenses were mainly caused by an increase in salaries and employee benefits driven by annual merit increases along with increased staffing levels related to our growth and expansion strategy. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses.

The provision for income taxes was $54 thousand for the three month period ended December 31, 2018 compared to a benefit for income taxes in the amount of $2.9 million for the three month period ended December 31, 2017. The Company began recognizing an increased provision for federal and state income taxes during 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017.

Balance Sheet

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

Description	12/31/18		12/31/17		% Change		09/30/18		% Change
Total assets	$	2,753,297	$	2,322,347	19	%	$	2,657,206	4	%
Total loans (net)		1,427,983		1,153,679	24	%		1,370,704	4	%
Total deposits		2,392,867		2,063,295	16	%		2,400,358	-	%

Total assets increased by $431.0 million, or 19%, as of December 31, 2018 when compared to December 31, 2017.  Deposits grew by $329.6 million to $2.4 billion as of December 31, 2018 compared to $2.1 billion as of December 31, 2017. The number of deposit accounts has grown by 29% 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	12/31/18		12/31/17		%Change		09/30/18		%Change		4th Qtr2018Cost ofFunds
Demand noninterest-bearing	$	519,056	$	438,500	18	%	$	509,188	2	%	0.00	%
Demand interest-bearing		1,042,561		807,736	29	%		1,058,670	(2	%)	1.18	%
Money market and savings		676,993		700,322	3	%		703,358	(4	%)	0.82	%
Certificates of deposit		154,257		116,737	32	%		129,142	19	%	1.39	%
Total deposits	$	2,392,867	$	2,063,295	16	%	$	2,400,358	-	%	0.83	%

Deposits increased to $2.4 billion at December 31, 2018 compared to $2.1 billion at December 31, 2017 as the Company moves forward with its growth strategy to increase the number of stores and expand the reach of its banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. The Company recognized strong growth in demand deposit balances, including an increase in non-interest bearing demand deposits of 18%, year over year as a result of the successful execution of its strategy.

Lending

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

Description	12/31/18		% ofTotal		12/31/17		% ofTotal		09/30/18		% ofTotal
Commercial real estate	$	515,738	36	%	$	433,304	37	%	$	495,529	36	%
Construction and land development		121,042	8	%		104,617	9	%		125,512	9	%
Commercial and industrial		200,423	14	%		173,343	15	%		195,493	14	%
Owner occupied real estate		367,895	26	%		309,838	27	%		358,956	26	%
Consumer and other		91,136	6	%		76,412	7	%		86,922	6	%
Residential mortgage		140,364	10	%		64,764	5	%		116,376	9	%
Gross loans	$	1,436,598	100	%	$	1,162,278	100	%	$	1,378,788	100	%

Gross loans increased by $274 million, or 24%, to $1.4 billion at December 31, 2018 compared to $1.2 billion at December 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 asset quality ratios are highlighted below:

	Three Months Ended
	12/31/18		09/30/18		12/31/17
Non-performing assets / capital and reserves	7	%	8	%	9	%
Non-performing assets / total assets	0.60	%	0.76	%	0.94	%
Quarterly net loan charge-offs / average loans	0.02	%	(0.01	%)	0.02	%
Allowance for loan losses / gross loans	0.60	%	0.59	%	0.74	%
Allowance for loan losses / non-performing loans	83	%	60	%	58	%

The percentage of non-performing assets to total assets decreased to 0.60% at December 31, 2018, compared to 0.94% at December 31, 2017.  The ratio of non-performing assets to capital and reserves decreased to 7% at December 31, 2018 compared to 9% at December 31, 2017 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at December 31, 2018 were as follows:

	Actual12/31/18Bancorp		Actual12/31/18Bank		RegulatoryGuidelines“Well Capitalized”
Leverage Ratio	9.35	%	8.21	%	5.00	%
Common Equity Ratio	13.90	%	12.77	%	6.50	%
Tier 1 Risk Based Capital	14.53	%	12.77	%	8.00	%
Total Risk Based Capital	15.03	%	13.26	%	10.00	%
Tangible Common Equity	8.74	%	7.88	%	n/a     


Total shareholders’ equity increased to $245 million at December 31, 2018 compared to $226 million at December 31, 2017. Book value per common share increased to $4.17 at December 31, 2018 compared to $3.97 per share at December 31, 2017.

Analyst and Investor Call

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

Date:	January 28, 2019
Time:	10:00am (EDT)
From the U.S. dial:	(866) 436-9172 [Toll Free] or (630) 691-2760
Participant Pin:	48161934#
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 twenty-five 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 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; 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)
			December 31,				September 30,				December 31,
(dollars in thousands, except per share amounts)			2018				2018				2017
ASSETS
	Cash and due from banks		$	35,685			$	37,303			$	36,073
	Interest-bearing deposits and federal funds sold			36,788				108,996				25,869
		Total cash and cash equivalents		72,473				146,299				61,942
	Securities - Available for sale			321,014				487,524				464,430
	Securities - Held to maturity			761,563				485,291				472,213
	Restricted stock			5,754				1,916				1,918
		Total investment securities		1,088,331				974,731				938,561
	Loans held for sale			26,291				32,839				45,700
	Loans receivable			1,436,598				1,378,788				1,162,278
	Allowance for loan losses			(8,615	)			(8,084	)			(8,599	)
		Net loans		1,427,983				1,370,704				1,153,679
	Premises and equipment			87,661				81,912				74,947
	Other real estate owned			6,223				6,768				6,966
	Other assets			44,335				43,953				40,552
	Total Assets		$	2,753,297			$	2,657,206			$	2,322,347
LIABILITIES
	Non-interest bearing deposits		$	519,056			$	509,188			$	438,500
	Interest bearing deposits			1,873,811				1,891,170				1,624,795
		Total deposits		2,392,867				2,400,358				2,063,295
	Short-term borrowings			91,422				-				-
	Subordinated debt			11,259				11,257				21,681
	Other liabilities			12,560				9,767				10,911
	Total Liabilities			2,508,108				2,421,382				2,095,887
SHAREHOLDERS' EQUITY
	Common stock - $0.01 par value			593				593				575
	Additional paid-in capital			269,147				268,613				256,285
	Accumulated deficit			(8,716	)			(10,873	)			(18,983	)
	Treasury stock at cost			(3,725	)			(3,725	)			(3,725	)
	Stock held by deferred compensation plan			(183	)			(183	)			(183	)
	Accumulated other comprehensive loss			(11,927	)			(18,601	)			(7,509	)
	Total Shareholders' Equity			245,189				235,824				226,460
	Total Liabilities and Shareholders' Equity		$	2,753,297			$	2,657,206			$	2,322,347

 

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)			2018				2018			2017				2018				2017
INTEREST INCOME
	Interest and fees on loans		$	17,555			$	16,764		$	13,576			$	64,045			$	50,094
	Interest and dividends on investment securities			7,279				6,641			5,568				27,182				20,178
	Interest on other interest earning assets			459				153			265				847				577
		Total interest income		25,293				23,558			19,409				92,074				70,849
INTEREST EXPENSE
	Interest on deposits			5,103				3,642			2,222				14,432				7,418
	Interest on borrowed funds			210				770			320				1,738				1,366
		Total interest expense		5,313				4,412			2,542				16,170				8,784
	Net interest income			19,980				19,146			16,867				75,904				62,065
	Provision for loan losses			600				500			400				2,300				900
										.
	Net interest income after provision for loan losses			19,380				18,646			16,467				73,604				61,165
NON-INTEREST INCOME
	Service fees on deposit accounts			1,589				1,386			1,084				5,476				3,904
	Mortgage banking income			2,285				2,580			2,619				10,233				11,170
	Gain on sale of SBA loans			451				816			1,063				3,105				3,378
	Loss on sale of investment securities			(66	)			-			(85	)			(67	)			(146	)
	Other non-interest income			629				349			331				1,575				1,791
		Total non-interest income		4,888				5,131			5,012				20,322				20,097
NON-INTEREST EXPENSE
	Salaries and employee benefits			11,351				11,203			10,159				44,082				37,959
	Occupancy and equipment			3,410				3,260			2,947				13,493				11,774
	Legal and professional fees			642				773			953				3,033				2,877
	Foreclosed real estate			707				378			2,388				1,588				4,092
	Regulatory assessments and related fees			417				396			359				1,675				1,367
	Other operating expenses			5,530				4,823			4,816				19,850				17,207
		Total non-interest expense		22,057				20,833			21,622				83,721				75,276
Income (loss) before benefit for income taxes				2,211				2,944			(143	)			10,205				5,986
Provision (benefit) for income taxes				54				622			(2,881	)			1,578				(2,919	)
Net income			$	2,157			$	2,322		$	2,738			$	8,627			$	8,905
Net Income per Common Share
	Basic		$	0.04			$	0.04		$	0.05			$	0.15			$	0.16
	Diluted		$	0.04			$	0.04		$	0.05			$	0.15			$	0.15
Average Common Shares Outstanding
	Basic			58,789				58,774			56,988				58,358				56,933
	Diluted			59,672				59,774			58,360				59,407				58,250

 

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, 2018									September 30, 2018									December 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	$	80,416		$	459		2.26	%		$	29,163		$	153		2.08	%		$	82,918		$	265		1.27	%
Securities		1,068,065			7,315		2.74	%			1,018,910			6,676		2.62	%			888,862			5,616		2.53	%
Loans receivable		1,427,260			17,660		4.91	%			1,390,894			16,873		4.81	%			1,171,771			13,743		4.65	%
Total interest-earning assets		2,575,741			25,434		3.92	%			2,438,967			23,702		3.86	%			2,143,551			19,624		3.63	%
Other assets		134,411									135,139									126,904
Total assets	$	2,710,152								$	2,574,106								$	2,270,455
Interest-bearing liabilities:
Demand non interest-bearing	$	528,568								$	513,292								$	421,841
Demand interest-bearing		1,073,140			3,192		1.18	%			861,607			1,948		0.90	%			776,203			945		0.48	%
Money market & savings		702,322			1,444		0.82	%			699,081			1,308		0.74	%			693,684			942		0.54	%
Time deposits		133,675			467		1.39	%			126,378			386		1.21	%			120,067			335		1.11	%
Total deposits		2,437,705			5,103		0.83	%			2,200,358			3,642		0.66	%			2,011,795			2,222		0.44	%
Total interest-bearing deposits		1,909,137			5,103		1.06	%			1,687,066			3,642		0.86	%			1,589,954			2,222		0.55	%
Other borrowings		24,354			210		3.42	%			127,150			770		2.40	%			23,621			320		5.37	%
Total interest-bearing liabilities		1,933,491			5,313		1.09	%			1,814,216			4,412		0.96	%			1,613,575			2,542		0.63	%
Total deposits and
other borrowings		2,462,059			5,313		0.86	%			2,327,508			4,412		0.75	%			2,035,416			2,542		0.50	%
Non interest-bearing liabilities		9,690									10,363									9,560
Shareholders' equity		238,403									236,235									225,479
Total liabilities and
shareholders' equity	$	2,710,152								$	2,574,106								$	2,270,455
Net interest income				$	20,121								$	19,290								$	17,082
Net interest spread							2.83	%								2.90	%								3.00	%
Net interest margin							3.10	%								3.14	%								3.16	%
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, 2018									December 31, 2017
				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	$	40,931		$	847		2.07	%		$	48,148		$	577		1.20	%
Securities		1,037,810			27,316		2.63	%			811,269			20,466		2.52	%
Loans receivable		1,340,117			64,455		4.81	%			1,090,851			50,687		4.65	%
Total interest-earning assets		2,418,858			92,618		3.83	%			1,950,268			71,730		3.68	%
Other assets		131,369									115,770
Total assets	$	2,550,227								$	2,066,038
Interest-bearing liabilities:
Demand non interest-bearing	$	488,995								$	372,171
Demand interest-bearing		918,508			7,946		0.87	%			687,586			3,020		0.44	%
Money market & savings		697,135			4,898		0.70	%			629,464			3,160		0.50	%
Time deposits		128,892			1,588		1.23	%			110,952			1,238		1.12	%
Total deposits		2,233,530			14,432		0.65	%			1,800,173			7,418		0.41	%
Total interest-bearing deposits		1,744,535			14,432		0.83	%			1,428,002			7,418		0.52	%
Other borrowings		73,573			1,738		2.36	%			35,429			1,366		3.86	%
Total interest-bearing liabilities		1,818,108			16,170		0.89	%			1,463,431			8,784		0.60	%
Total deposits and
other borrowings		2,307,103			16,170		0.70	%			1,835,602			8,784		0.48	%
Non interest-bearing liabilities		9,431									8,942
Shareholders' equity		233,693									221,494
Total liabilities and
shareholders' equity	$	2,550,227								$	2,066,038
Net interest income				$	76,448								$	62,946
Net interest spread							2.94	%								3.08	%
Net interest margin							3.16	%								3.23	%
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)	2018				2018				2017				2018				2017
Balance at beginning of period	$	8,084			$	7,566			$	8,258			$	8,599			$	9,155
Provision charged to operating expense		600				500				400				2,300				900
		8,684				8,066				8,658				10,899				10,055
Recoveries on loans charged-off:
Commercial		5				18				1				152				119
Consumer		-				1				-				2				1
Total recoveries		5				19				1				154				120
Loans charged-off:
Commercial		(68	)			-				(19	)			(2,219	)			(1,523	)
Consumer		(6	)			(1	)			(41	)			(219	)			(53	)
Total charged-off		(74	)			(1	)			(60	)			(2,438	)			(1,576	)
Net (charge-offs) recoveries		(69	)			18				(59	)			(2,284	)			(1,456	)
Balance at end of period	$	8,615			$	8,084			$	8,599			$	8,615			$	8,599
Net (charge-offs) recoveries as a percentage
of average loans outstanding		0.02	%			(0.01	%)			0.02	%			0.17	%			0.13	%
Allowance for loan losses as a percentage
of period-end loans		0.60	%			0.59	%			0.74	%			0.60	%			0.74	%

 

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)	2018				2018				2018				2018				2017
Non-accrual loans:
Commercial real estate	$	9,463			$	12,661			$	13,297			$	13,322			$	13,973
Consumer and other		878				818				809				810				872
Total non-accrual loans		10,341				13,479				14,106				14,132				14,845
Loans past due 90 days or more
and still accruing		-				-				-				-				-
Total non-performing loans		10,341				13,479				14,106				14,132				14,845
Other real estate owned		6,223				6,768				6,559				6,966				6,966
Total non-performing assets	$	16,564			$	20,247			$	20,665			$	21,098			$	21,811
Non-performing loans to total loans		0.72	%			0.98	%			1.07	%			1.13	%			1.28	%
Non-performing assets to total assets		0.60	%			0.76	%			0.81	%			0.85	%			0.94	%
Non-performing loan coverage		83.31	%			59.97	%			53.64	%			47.06	%			57.93	%
Allowance for loan losses as a percentage
of total period-end loans		0.60	%			0.59	%			0.57	%			0.53	%			0.74	%
Non-performing assets / capital plus
allowance for loan losses		6.53	%			8.30	%			8.51	%			8.76	%			9.28	%