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CST: 22/09/2019 11:40:54   

Republic First Bancorp, Inc. Reports Second Quarter Financial Results

55 Days ago

Deposits Increase by 18% and Loans Grow 15% with New York Expansion Officially Underway

PHILADELPHIA, July 29, 2019 (GLOBE NEWSWIRE) -- 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
% of
Total
             
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:

  Actual
06/30/19
Bancorp
Actual
06/30/19
Bank
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 %
                                       

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