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 June 30, 2019.

Q2-2019 Highlights

• Total deposits increased by $394 million, or 18%, to $2.5 billion as of June 30, 2019 compared to $2.1 billion as of June 30, 2018. 
• New stores opened since the beginning of the “Power of Red is Back” expansion campaign are currently growing deposits at an average rate of $25 million per year, while the average deposit growth for all stores over the last twelve months was approximately $14 million per store. 
• Expansion into New York City began with the opening of our first store located on the corner of 14th Street and 5th Avenue. 
• Total loans grew $191 million, or 15%, to $1.5 billion as of June 30, 2019 compared to $1.3 billion at June 30, 2018. 
• Net income declined to $0.8 million, or $0.01 per share, for the six month period ended June 30, 2019 compared to $4.1 million, or $0.07 per share for the six month period ended June 30, 2018.

“The Power of Red is Back” expansion strategy launched in New York City with the opening of our newest store on the corner of 14th Street and 5th Avenue. On July 12th we celebrated the grand opening of our first store in New York by welcoming Customers – and their pets – with a fun-filled day that included live entertainment, music and gifts. We also continued our expansion in Bucks County with the opening of our store in Feasterville, PA during the second quarter.

Profitability in 2019 continues to be hampered by a number of factors. Similar to the first quarter, net income in the second quarter was impacted by the costs necessary to initiate our expansion into New York City which includes the hiring of a management and lending team for this new market, along with the training and development costs for the new store openings. We also continue to feel the effect of a flat or inverted yield curve which has resulted in compression of the net interest margin.

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

“The Power of Red is Back in New York City. The recent opening of our first store at 14th & 5th was a tremendous success. We are thrilled to bring back the legendary banking experience that our FANS in New York have been missing for the last several years. At a time when most banks are shuttering branches and retreating from the communities they serve, Republic Bank continues in its relentless pursuit to deliver an unmatched banking experience across every delivery channel. This not only includes the in-store experience, but online and mobile options as well.”

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

“Our strong growth since the inception of our expansion campaign demonstrates the success of the Republic model. Assets, loans and deposits have consistently grown at levels significantly above industry standards. We see significant opportunities to expand our footprint and create new FANS as our competitors continue to alienate customers with declining levels of service and fewer branch locations.”

A summary of the financial results for the period ended June 30, 2019 can be found in the following table:

	Six Months Ended
($ in millions, except per share data)	06/30/19			06/30/18			% Change
Assets	$	2,941.0		$	2,552.9		15	%
Loans	1,508.7			1,317.6			15	%
Deposits	2,528.0			2,134.1			18	%
Total Revenue	$	50.5		$	47.1		7	%
Income Before Tax	1.0			5.1			(80	%)
Net Income	0.8			4.1			(81	%)
Net Income per Share	$	0.01		$	0.07		(86	%)

Financial Highlights for the Period Ended June 30, 2019

• Total assets increased by $388 million, or 15%, to $2.9 billion as of June 30, 2019 compared to $2.6 billion as of June 30, 2018. 
• We have twenty-eight convenient store locations open today. During the second quarter of 2019 we continued our expansion into Buck County with the opening of our new store in Feasterville, PA.  There are also multiple sites in various stages of development for future store locations. 
• Expansion into New York City began in July 2019 with the grand opening of our first store location at 14th Street & 5th Avenue in Manhattan. We’ve also started construction on our next site in New York located at 51st Street & 3rd Avenue which is expected to open during the fourth quarter.
• Net income remained at $0.4 million, or $0.01 per share, for the three months ended June 30, 2019 compared to $0.4 million, or $0.01 per share for the three months ended March 31, 2019 and declined from $2.4 million, or $0.04 per share, for the three months ended June 30, 2018.  
• The net interest margin decreased by 25 basis points to 2.94% for the three months ended June 30, 2019 compared to 3.19% for the three months ended June 30, 2018. Margin compression was driven by the flat and inverted yield curve experienced during the second quarter of 2019. 
• Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.53% as of June 30, 2019 compared to 0.81% as of June 30, 2018. 
• The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. The Oak Mortgage team has originated more than $370 million in mortgage loans over the last twelve months. 
• Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy.  More than $27 million in new SBA loans were originated during the six month period ended June 30, 2019. Republic Bank continues to be a top SBA lender in our market area based on the dollar volume of loan originations. 
• The Company’s Total Risk-Based Capital ratio was 14.02% and Tier I Leverage Ratio was 8.97% at June 30, 2019. 
• Book value per common share increased to $4.27 as of June 30, 2019 compared to $4.01 as of June 30, 2018.

Income Statement

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

	Three Months Ended							Three Months Ended
	06/30/19		03/31/19		% Change					06/30/19		06/30/18		% Change
Net Interest Income	$	19,371	$	19,140	1		%			$	19,371	$	18,662	4	%
Non-interest Income		7,026		4,945	42		%				7,026		5,768	22	%
Provision for Loan Losses		-		300	n/m						-		800	n/m
Non-interest Expense		25,911		23,627	10		%				25,911		20,729	25	%
Income Before Taxes		486		518	(6		%)				486		2,901	(83	%)
Provision (Benefit) for Taxes		105		92	14		%				105		530	(80	%)
Net Income		381		426	(11		%)				381		2,371	(84	%)
Net Income per Share	$	0.01	$	0.01	(0		%)			$	0.01	$	0.04	(75	%)

	Six Months Ended
	06/30/19		06/30/18		% Change
Net Interest Income	$	38,511	$	36,778	5		%
Non-interest Income		11,971		10,303	16		%
Provision for Loan Losses		300		1,200	(75		%)
Non-interest Expense		49,178		40,831	20		%
Income Before Taxes		1,004		5,050	(80		%)
Provision (Benefit) for Taxes		197		902	(78		%)
Net Income		807		4,148	(81		%)
Net Income per Share	$	0.01	$	0.07	(86		%)

The Company reported net income of $381 thousand, or $0.01 per share, for the three month period ended June 30, 2019, compared to $426 thousand, or $0.01 per share for the three month period ended March 31, 2019 and $2.4 million, or $0.04 per share, for the three month period ended June 30, 2018.  Net income for the six month period ended June 30, 2019 was $807 thousand, or $0.01 per share, compared to net income of $4.1 million, or $0.07 per share, for the six months ended June 30, 2018.

On a linked quarter basis net income was consistent at $0.4 million for the first and second quarter of 2019. Year over year net income declined to $0.4 million in the second quarter of 2019 from $2.4 in the second quarter of 2018. Current year profitability has been impacted by the expenses incurred to expand into the New York market and continued compression of the net interest margin.

Interest income increased by $3.9 million, or 18%, to $26.2 million for the quarter ended June 30, 2019 compared to $22.3 million for the quarter ended June 30, 2018. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion strategy. However, interest expense increased by $3.2 million, or 88%, to $6.9 million for the quarter ended June 30, 2019 compared to $3.7 million for the quarter ended June 30, 2018. The increase in interest expense was driven by multiple increases in the fed funds rate during 2018 which resulted in a higher cost of funds on deposit balances and led to compression in the net interest margin. The net interest margin for the three month period ended June 30, 2019 decreased by 25 basis points to 2.94% compared to 3.19% for the three month period ended June 30, 2018.

Non-interest income increased by $1.3 million, or 22%, to $7.0 million for the three month period ended June 30, 2019, compared to $5.8 million for the three month period ended June 30, 2018. The increase is primarily attributable to higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts. An increase in gains on sales of SBA loans and investment securities also contributed to the increase in non-interest income during the second quarter of 2019.

Non-interest expenses increased by 25%, to $25.9 million during the quarter ended June 30, 2019 compared to $20.7 million during the quarter ended June 30, 2018. The growth in expenses was 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. We’ve also begun to incur costs related to the expansion into the New York market as we hire a management and lending team and commence rent payments for the build out of our store locations.

The provision for income taxes was $105 thousand for the three month period ended June 30, 2019 compared to a provision for income taxes in the amount of $530 thousand for the three month period ended June 30, 2018.

Balance Sheet

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

Description	06/30/19		06/30/18		% Change		03/31/19		% Change
Total assets	$	2,940,986	$	2,552,920	15	%	$	2,805,060	5	%
Total loans (net)		1,500,664		1,310,012	15	%		1,469,186	2	%
Total deposits		2,527,977		2,134,141	18	%		2,478,953	2	%

Total assets increased by $388.1 million, or 15%, as of June 30, 2019 when compared to June 30, 2018.  Deposits grew by $393.8 million to $2.5 billion as of June 30, 2019 compared to $2.1 billion as of June 30, 2018. The number of deposit accounts has grown by 27% 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	06/30/19		06/30/18		% Change		03/31/19		%Change		2nd Qtr 2019 Cost of Funds
Demand noninterest-bearing	$	544,406	$	526,650	3	%	$	525,645	4	%	0.00	%
Demand interest-bearing		1,072,415		785,513	37	%		1,101,129	(3	%)	1.47	%
Money market and savings		719,075		698,182	3	%		691,351	4	%	0.94	%
Certificates of deposit		192,081		123,796	55	%		160,828	19	%	1.95	%
Total deposits	$	2,527,977	$	2,134,141	18	%	$	2,478,953	2	%	1.06	%

Deposits increased to $2.5 billion at June 30, 2019 compared to $2.1 billion at June 30, 2018 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 and certificates of deposit, year over year as a result of the successful execution of its strategy.

Lending

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

Description	06/30/19		% of Total		06/30/18		% of Total		03/31/19		% ofTotal
Commercial real estate	$	553,644	37	%	$	489,574	37	%	$	527,004	36	%
Construction and land development		111,474	7	%		120,165	9	%		124,124	8	%
Commercial and industrial		189,632	13	%		188,254	14	%		204,637	14	%
Owner occupied real estate		381,852	25	%		335,871	26	%		376,845	26	%
Consumer and other		98,155	6	%		83,606	6	%		92,728	6	%
Residential mortgage		173,963	12	%		100,108	8	%		151,748	10	%
Gross loans	$	1,508,720	100	%	$	1,317,578	100	%	$	1,477,086	100	%

Gross loans increased by $191 million, or 15%, to $1.5 billion at June 30, 2019 compared to $1.3 billion at June 30, 2018 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 strongest growth in commercial real estate, owner occupied real estate and residential mortgage loans year over year.

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Three Months Ended
	06/30/19		03/31/19		06/30/18
Non-performing assets / capital and reserves	6	%	7	%	9	%
Non-performing assets / total assets	0.53	%	0.60	%	0.81	%
Quarterly net loan charge-offs / average loans	(0.04	%)	0.28	%	(0.04	%)
Allowance for loan losses / gross loans	0.53	%	0.53	%	0.57	%
Allowance for loan losses / non-performing loans	86	%	74	%	54	%

The percentage of non-performing assets to total assets decreased to 0.53% at June 30, 2019, compared to 0.81% at June 30, 2018.  The ratio of non-performing assets to capital and reserves decreased to 6% at June 30, 2019 compared to 9% at June 30, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at June 30, 2019 were as follows:

	Actual06/30/19Bancorp		Actual06/30/19Bank		Regulatory Guidelines“Well Capitalized”
Leverage Ratio	8.97	%	8.57	%	5.00	%
Common Equity Ratio	13.01	%	12.99	%	6.50	%
Tier 1 Risk Based Capital	13.59	%	12.99	%	8.00	%
Total Risk Based Capital	14.02	%	13.42	%	10.00	%
Tangible Common Equity	8.39	%	8.27	%	n/a

Total shareholders’ equity increased to $251 million at June 30, 2019 compared to $235 million at June 30, 2018. Book value per common share increased to $4.27 at June 30, 2019 compared to $4.01 per share at June 30, 2018.

Analyst and Investor Call

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

Date:	July 29, 2019
Time:	10:00am (EDT)
From the U.S. dial:	(888) 771-4371 [Toll Free] or (847) 585-4405
Participant Pin:	48871378#
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-eight stores located in the Greater Philadelphia, Southern New Jersey and New York City markets.  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, 2018 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)
				June 30,				March 31,				June 30,
(dollars in thousands, except per share amounts)				2019				2019				2018
ASSETS
	Cash and due from banks		$	38,770			$	31,511			$	29,363
	Interest-bearing deposits and federal funds sold			90,744				54,394				29,991
		Total cash and cash equivalents		129,514				85,905				59,354
	Securities - Available for sale			338,286				287,694				502,021
	Securities - Held to maturity			718,534				742,435				503,742
	Restricted stock			5,130				2,097				8,379
		Total investment securities		1,061,950				1,032,226				1,014,142
	Loans held for sale			23,412				15,742				39,301
	Loans receivable			1,508,720				1,477,086				1,317,578
	Allowance for loan losses			(8,056	)			(7,900	)			(7,566	)
		Net loans		1,500,664				1,469,186				1,310,012
	Premises and equipment			105,311				94,390				80,069
	Other real estate owned			6,406				6,088				6,559
	Other assets			113,729				101,523				43,483
	Total Assets		$	2,940,986			$	2,805,060			$	2,552,920
LIABILITIES
	Non-interest bearing deposits		$	544,406			$	525,645			$	526,650
	Interest bearing deposits			1,983,571				1,953,308				1,607,491
		Total deposits		2,527,977				2,478,953				2,134,141
	Short-term borrowings			68,979				-				161,669
	Subordinated debt			11,262				11,260				11,256
	Other liabilities			81,410				66,462				10,520
	Total Liabilities			2,689,628				2,556,675				2,317,586
SHAREHOLDERS' EQUITY
	Common stock - $0.01 par value			594				593				593
	Additional paid-in capital			270,789				270,155				267,974
	Accumulated deficit			(7,909	)			(8,290	)			(13,195	)
	Treasury stock at cost			(3,725	)			(3,725	)			(3,725	)
	Stock held by deferred compensation plan			(183	)			(183	)			(183	)
	Accumulated other comprehensive loss			(8,208	)			(10,165	)			(16,130	)
	Total Shareholders' Equity			251,358				248,385				235,334
	Total Liabilities and Shareholders' Equity		$	2,940,986			$	2,805,060			$	2,552,920

Republic First Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
			Three Months Ended										Six Months Ended
				June 30,			March 31,			June 30,				June 30,			June 30,
(in thousands, except per share amounts)				2019			2019			2018				2019			2018
INTEREST INCOME
	Interest and fees on loans		$	18,569		$	17,800		$	15,457			$	36,369		$	29,726
	Interest and dividends on investment securities			7,158			7,383			6,804				14,541			13,262
	Interest on other interest earning assets			518			336			63				854			235
		Total interest income		26,245			25,519			22,324				51,764			43,223
INTEREST EXPENSE
	Interest on deposits			6,695			6,014			3,089				12,709			5,687
	Interest on borrowed funds			179			365			573				544			758
		Total interest expense		6,874			6,379			3,662				13,253			6,445
	Net interest income			19,371			19,140			18,662				38,511			36,778
	Provision for loan losses			-			300			800				300			1,200
	Net interest income after provision for loan losses			19,371			18,840			17,862				38,211			35,578
NON-INTEREST INCOME
	Service fees on deposit accounts			1,848			1,612			1,326				3,460			2,501
	Mortgage banking income			3,031			2,220			3,182				5,251			5,368
	Gain on sale of SBA loans			1,147			502			846				1,649			1,838
	Gain (loss) on sale of investment securities			261			322			(1	)			583			(1	)
	Other non-interest income			739			289			415				1,028			597
		Total non-interest income		7,026			4,945			5,768				11,971			10,303
NON-INTEREST EXPENSE
	Salaries and employee benefits			13,705			12,359			10,883				26,064			21,528
	Occupancy and equipment			4,221			4,015			3,353				8,236			6,823
	Legal and professional fees			1,058			707			859				1,765			1,618
	Foreclosed real estate			517			337			192				854			503
	Regulatory assessments and related fees			421			421			395				842			862
	Other operating expenses			5,989			5,428			5,047				11,417			9,497
		Total non-interest expense		25,911			23,267			20,729				49,178			40,831
Income before provision for income taxes				486			518			2,901				1,004			5,050
Provision for income taxes				105			92			530				197			902
Net income			$	381		$	426		$	2,371			$	807		$	4,148
Net Income per Common Share
	Basic		$	0.01		$	0.01		$	0.04			$	0.01		$	0.07
	Diluted		$	0.01		$	0.01		$	0.04			$	0.01		$	0.07
Average Common Shares Outstanding
	Basic			58,841			58,805			58,746				58,823			57,927
	Diluted			59,401			59,587			59,911				59,501			59,147

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)	June 30, 2019									March 31, 2019									June 30, 2018
				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	$	85,920		$	518		2.42	%		$	55,369		$	336		2.46	%		$	13,412		$	63		1.88	%
Securities		1,067,185			7,184		2.69	%			1,085,910			7,420		2.73	%			1,048,291			6,838		2.61	%
Loans receivable		1,509,177			18,681		4.96	%			1,468,640			17,911		4.95	%			1,304,244			15,557		4.78	%
Total interest-earning assets		2,662,282			26,383		3.97	%			2,609,919			25,667		3.99	%			2,365,947			22,458		3.81	%
Other assets		217,685									190,855									129,077
Total assets	$	2,879,967								$	2,800,774								$	2,495,024
Interest-bearing liabilities:
Demand non interest-bearing	$	525,336								$	512,172								$	481,548
Demand interest-bearing		1,144,783			4,206		1.47	%			1,113,758			3,938		1.43	%			844,405			1,549		0.74	%
Money market & savings		697,279			1,628		0.94	%			675,506			1,452		0.87	%			699,136			1,174		0.67	%
Time deposits		176,750			861		1.95	%			153,832			624		1.65	%			125,607			366		1.17	%
Total deposits		2,544,148			6,695		1.06	%			2,455,268			6,014		0.99	%			2,150,696			3,089		0.58	%
Total interest-bearing deposits		2,018,812			6,695		1.33	%			1,943,096			6,014		1.26	%			1,669,148			3,089		0.74	%
Other borrowings		19,864			179		3.61	%			46,969			365		3.15	%			101,829			573		2.26	%
Total interest-bearing liabilities		2,038,676			6,874		1.35	%			1,990,065			6,379		1.30	%			1,770,977			3,662		0.83	%
Total deposits and
other borrowings		2,564,012			6,874		1.08	%			2,502,237			6,379		1.03	%			2,252,525			3,662		0.65	%
Non interest-bearing liabilities		66,780									52,037									8,952
Shareholders' equity		249,175									246,500									233,547
Total liabilities and
shareholders' equity	$	2,879,967								$	2,800,774								$	2,495,024
Net interest income				$	19,509								$	19,288								$	18,796
Net interest spread							2.62	%								2.69	%								2.98	%
Net interest margin							2.94	%								3.00	%								3.19	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
	For the six months ended									For the six months ended
(dollars in thousands)	June 30, 2019									June 30, 2018
				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	$	70,729		$	854		2.43	%		$	26,844		$	235		1.77	%
Securities		1,076,496			14,604		2.71	%			1,032,038			13,325		2.58	%
Loans receivable		1,489,020			36,592		4.96	%			1,269,875			29,922		4.75	%
Total interest-earning assets		2,636,245			52,050		3.98	%			2,328,757			43,482		3.77	%
Other assets		204,344									128,045
Total assets	$	2,840,589								$	2,456,802
Interest-bearing liabilities:
Demand non interest-bearing	$	518,790								$	456,530
Demand interest-bearing		1,129,356			8,144		1.45	%			868,832			2,806		0.65	%
Money market & savings		686,453			3,080		0.90	%			693,508			2,146		0.62	%
Time deposits		165,354			1,485		1.81	%			127,740			735		1.16	%
Total deposits		2,499,953			12,709		1.03	%			2,146,610			5,687		0.53	%
Total interest-bearing deposits		1,981,163			12,709		1.29	%			1,690,080			5,687		0.68	%
Other borrowings		33,341			544		3.29	%			71,360			758		2.14	%
Total interest-bearing liabilities		2,014,504			13,253		1.33	%			1,761,440			6,445		0.74	%
Total deposits and
other borrowings		2,533,294			13,253		1.05	%			2,217,970			6,445		0.59	%
Non interest-bearing liabilities		59,505									9,171
Shareholders' equity		247,790									229,661
Total liabilities and
shareholders' equity	$	2,840,589								$	2,456,802
Net interest income				$	38,797								$	37,037
Net interest spread							2.65	%								3.03	%
Net interest margin							2.97	%								3.21	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
													Year
	Three months ended												ended				Six months ended
		June 30,				March 31,				June 30,				Dec 31				June 30,				June 30,
(dollars in thousands)		2019				2018				2018				2018				2019				2018
Balance at beginning of period	$	7,900			$	8,615			$	6,650			$	8,599			$	8,615			$	8,599
Provision charged to operating expense		-				300				800				2,300				300				1,200
		7,900				8,915				7,450				10,899				8,915				9,799
Recoveries on loans charged-off:
Commercial		154				1				129				152				155				129
Consumer		3				1				1				2				4				1
Total recoveries		157				2				130				154				159				130
Loans charged-off:
Commercial		(1	)			(929	)			-				(2,219	)			(930	)			(2,151	)
Consumer		-				(88	)			(14	)			(219	)			(88	)			(212	)
Total charged-off		(1	)			(1,017	)			(14	)			(2,438	)			(1,018	)			(2,363	)
Net charge-offs		156				(1,015	)			116				(2,284	)			(859	)			(2,233	)
Balance at end of period	$	8,056			$	7,900			$	7,566			$	8,615			$	8,056			$	7,566
Net charge-offs as a percentage of
average loans outstanding		(0.04	%)			0.28	%			(0.04	%)			0.17	%			0.12	%			0.35	%
Allowance for loan losses as a percentage
of period-end loans		0.53	%			0.53	%			0.57	%			0.60	%			0.53	%			0.57	%

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands)		2019				2019				2018				2018				2018
Non-accrual loans:
Commercial real estate	$	7,545			$	8,096			$	9,463			$	12,661			$	13,297
Consumer and other		1,777				836				878				818				809
Total non-accrual loans		9,322				8,932				10,341				13,479				14,106
Loans past due 90 days or more
and still accruing		-				1,744				-				-				-
Total non-performing loans		9,322				10,676				10,341				13,479				14,106
Other real estate owned		6,406				6,088				6,223				6,768				6,559
Total non-performing assets	$	15,728			$	16,764			$	16,564			$	20,247			$	20,665
Non-performing loans to total loans		0.62	%			0.72	%			0.72	%			0.98	%			1.07	%
Non-performing assets to total assets		0.53	%			0.60	%			0.60	%			0.76	%			0.81	%
Non-performing loan coverage		86.42	%			74.00	%			83.31	%			59.97	%			53.64	%
Allowance for loan losses as a percentage
of total period-end loans		0.53	%			0.53	%			0.60	%			0.59	%			0.57	%
Non-performing assets / capital plus
allowance for loan losses		6.06	%			6.54	%			6.53	%			8.30	%			8.51	%