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Republic First Bancorp, Inc. Reports Third Quarter Financial Results Deposits Increase by 14% and Loans Grow 14%

290 Days ago

PHILADELPHIA, Oct. 28, 2019 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2019.

Q3-2019 Highlights

  • Total deposits increased by $340 million, or 14%, to $2.7 billion as of September 30, 2019 compared to $2.4 billion as of September 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 $24 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 during the third quarter.
     
  • Total loans grew $191 million, or 14%, to $1.6 billion as of September 30, 2019 compared to $1.4 billion at September 30, 2018.
     
  • Profitability declined as the Company reported a net loss of $1.8 million, or ($0.03) per share, during the third quarter of 2019 compared to net income of $2.3 million, or $0.04 per share during the third quarter of 2018.

“The Power of Red is Back” in New York City. During the third quarter we launched our expansion into New York City with the opening of our newest store on the corner of 14th Street and 5th Avenue. We immediately began converting customers into FANS by treating them with the legendary customer service and convenience that Republic Bank is known for.  We anxiously await the opening of our second New York store at 51st Street and 3rd Avenue, which we expect to complete in early November, to share our FANatical approach to banking with an ever growing FAN base.

Third quarter results were negatively impacted by continued compression of our net interest margin caused by a flat and, at times, an inverted yield curve. The shape of the yield curve is driving lower yields on interest earning assets and higher rates on interest bearing liabilities. In the midst of this challenging interest rate environment we have also incurred costs required to expand into New York City. In addition to new hires, training, advertising, and occupancy expenses for the opening of our first two stores in New York this year, we have also established a management and lending team for this new market.

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

“We are thrilled to bring The Power of Red Back to New York City. At a time when most banks are closing 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. We are extremely excited to have the opportunity to create new FANS in the City of New York. Today we face a difficult challenge as the shape of the yield curve limits our ability to increase net interest income proportionate to the growth in our balance sheet. We are evaluating all opportunities to improve profitability in this challenging rate environment.”

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

“Since the inception of The Power of Red is Back growth campaign we have demonstrated consistent growth in the balance sheet through organic growth in loans and deposits. The results have been a testament to the strength of our model and the unmatched commitment to customer service by every member of the Republic Bank Team. The current interest rate environment has put a significant strain on profitability in recent quarters. We will assess every opportunity within our control to enhance earnings.”

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

($ in millions, except per share data)                
    09/30/19   09/30/18   YOY
Change
  12/31/18   YTD
Change
                     
Assets   $   3,086   $   2,657   16 %   $    2,753   12 %
Loans       1,569      1,379   14 %       1,437   9 %
Deposits       2,740      2,400   14 %       2,393   15 %
                     

 

                         
    Three Months Ended   Nine Months Ended
    09/30/19   09/30/18   Change   09/30/19   09/30/18   Change
Total Revenue   $   32.8     $   28.7     14 %   $  96.5     $   82.2     17 %
Net Income (Loss)      (1.8 )       2.3     (178 %)      (1.0 )       6.5     (116 %)
Net Income (Loss) per Share   $ (0.03 )   $   0.04     (175 %)   $ (0.02 )   $   0.11     (118 %)
Net Interest Margin     2.82 %     3.14 %         2.92 %     3.18 %    
                         

Financial Highlights for the Period Ended September 30, 2019

  • Total assets increased by $429 million, or 16%, to $3.1 billion as of September 30, 2019 compared to $2.7 billion as of September 30, 2018.
     
  • We have twenty-eight convenient store locations open today. During the third quarter of 2019 we celebrated the grand opening of our first store in New York City located at 14th Street and 5th Avenue.
     
  • Construction on our next site in New York located at 51st Street & 3rd Avenue is ongoing and expected to be complete during the fourth quarter. We’ve also broken ground on sites in Northfield, NJ and Bensalem, PA. There are multiple sites in various stages of development for future store locations.
     
  • Profitability declined during the third quarter. The Company recorded a net loss of $1.8 million, or ($0.03) per share, for the three months ended September 30, 2019 compared to net income of $0.4 million, or $0.01 per share for the three months ended June 30, 2019 and net income of $2.3 million, or $0.04 per share, for the three months ended September 30, 2018.
     
  • The net interest margin decreased by 32 basis points to 2.82% for the three months ended September 30, 2019 compared to 3.14% for the three months ended September 30, 2018. Margin compression was driven by the flat and inverted yield curve experienced during the third quarter of 2019.
     
  • The ratio of non-performing assets to total assets declined to 0.61% as of September 30, 2019 compared to 0.76% as of September 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 $390 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 $43 million in new SBA loans were originated during the nine month period ended September 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 13.53% and Tier I Leverage Ratio was 8.60% at September 30, 2019.
     
  • Book value per common share increased to $4.26 as of September 30, 2019 compared to $4.01 as of September 30, 2018.

Income Statement

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

  Three Months Ended
  09/30/19   06/30/19   % Change   09/30/18   % Change
Net Interest Income $   19,382     $   19,371   - %   $   19,146   1 %
Non-interest Income   6,554       7,026   (7 %)     5,131   28 %
Provision for Loan Losses   450       -   n/ m     500   (10 %)
Non-interest Expense   27,824       25,911   7 %     20,833   34 %
Income (Loss) Before Taxes   (2,338 )     486   (581 %)     2,944   (179 %)
Provision (Benefit) for Taxes     (516 )     105   (591 %)     622   (183 %)
Net Income (Loss)   (1,822 )     381   (578 %)     2,322   (178 %)
                   
Net Income (Loss) per Share $   (0.03 )   $   0.01   (400 %)   $   0.04   (175 %)

 

  Nine Months Ended
    09/30/19 09/30/18 % Change
Net Interest Income   $   57,893   $   55,924 4 %
Non-interest Income     18,525     15,434 20 %
Provision for Loan Losses     750     1,700 (56 %)
Non-interest Expense     77,002     61,664 25 %
Income (Loss) Before Taxes     (1,334 )   7,994 (117 %)
Provision (Benefit) for Taxes     (319 )   1,524 (121 %)
Net Income (Loss)     (1,015 )   6,470 (116 %)
Net Income (Loss) per Share   $    (0.02 ) $   0.11 (118 %)

The Company reported a net loss of $1.8 million, or ($0.03) per share, for the three month period ended September 30, 2019, compared to net income of $381 thousand, or $0.01 per share for the three month period ended June 30, 2019 and net income of $2.3 million, or $0.04 per share, for the three month period ended September 30, 2018.  The net loss for the nine month period ended September 30, 2019 was $1.0 million, or ($0.02) per share, compared to net income of $6.5 million, or $0.11 per share, for the nine months ended September 30, 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 $2.7 million, or 11%, to $26.2 million for the quarter ended September 30, 2019 compared to $23.6 million for the quarter ended September 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 $2.4 million, or 55%, to $6.8 million for the quarter ended September 30, 2019 compared to $4.4 million for the quarter ended September 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. On a linked quarter basis, the deposit cost of funds has begun to decline as a result of two reductions in the fed funds rate during the third quarter of 2019. The net interest margin for the three month period ended September 30, 2019 decreased by 32 basis points to 2.82% compared to 3.14% for the three month period ended September 30, 2018.

Non-interest income increased by $1.4 million, or 28%, to $6.6 million for the three month period ended September 30, 2019, compared to $5.1 million for the three month period ended September 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 investment securities also contributed to the increase in non-interest income during the third quarter of 2019.

Non-interest expenses increased by 34%, to $27.8 million during the quarter ended September 30, 2019 compared to $20.8 million during the quarter ended September 30, 2018. The growth in expenses was driven by an increase in salaries and employee benefits as a result of 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. Throughout 2019, we’ve incurred costs related to our expansion into the New York market. Our first store in New York opened during the third quarter of 2019 and our second location is now under construction. In addition, we’ve hired a management and lending team to operate in this new market. Rent payments have commenced for our store locations and we’ve initiated a marketing and advertising campaign to announce our expansion.

The benefit for income taxes was $516 thousand for the three month period ended September 30, 2019 compared to a provision for income taxes in the amount of $622 thousand for the three month period ended September 30, 2018.

Balance Sheet

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

 

Description
 

09/30/19
 

09/30/18
% Change  

06/30/19
% Change
           
Total assets $ 3,085,921 $ 2,657,206   16 % $ 2,940,986 5 %
Total loans (net)   1,560,913   1,370,704 14 %   1,500,664 4 %
Total deposits   2,740,032   2,400,358 14 %   2,527,977 8 %

Total assets increased by $428.7 million, or 16%, as of September 30, 2019 when compared to September 30, 2018.  Deposits grew by $339.7 million to $2.7 billion as of September 30, 2019 compared to $2.4 billion as of September 30, 2018. The number of deposit accounts has grown by 28% 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
 

 

09/30/19
 

 

09/30/18
 

% Change
 

 

06/30/19
 

%
Change
3rd Qtr 2019 Cost of Funds
             
Demand noninterest-bearing $ 595,869  $ 509,188    17 % $ 544,406    9 % 0.00 %
Demand interest-bearing   1,227,969   1,058,670  16 %   1,072,415    15 % 1.27 %
Money market and savings   698,991   703,358   (1 %)   719,075    (3 %) 1.02 %
Certificates of deposit   217,203   129,142  68 %   192,081  13 % 2.14 %
Total deposits $ 2,740,032 $ 2,400,358  14 % $ 2,527,977    8 % 1.00 %
             

Deposits increased to $2.7 billion at September 30, 2019 compared to $2.4 billion at September 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
 
09/30/19
% of Total
09/30/18
% of Total  
06/30/19
% of  Total
             
Commercial real estate $  570,327 36 % $  495,529 36 % $  553,644  37 %
Construction and land development   109,582 7 %   125,512 9 %   111,474 7 %
Commercial and industrial   187,837 12 %   195,493 14 %   189,632 13 %
Owner occupied real estate   397,843 26 %   358,956 26 %   381,852 25 %
Consumer and other   98,293 6 %   86,922 6 %   98,155 6 %
Residential mortgage   205,498 13 %   116,376 9 %   173,963 12 %
Gross loans $ 1,569,380 100 % $ 1,378,788 100 % $ 1,508,720 100 %
             

Gross loans increased by $191 million, or 14%, to $1.6 billion at September 30, 2019 compared to $1.4 billion at September 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
  09/30/19 06/30/19 09/30/18
       
Non-performing assets / capital and reserves 7 % 6 % 8 %
Non-performing assets / total assets 0.61 % 0.53 % 0.76 %
Quarterly net loan charge-offs / average loans 0.01 % (0.04 %) (0.01 %)
Allowance for loan losses / gross loans 0.54 % 0.53 % 0.59 %
Allowance for loan losses / non-performing loans 70 % 86 %   60 %

The percentage of non-performing assets to total assets decreased to 0.61% at September 30, 2019, compared to 0.76% at September 30, 2018.  The ratio of non-performing assets to capital and reserves decreased to 7% at September 30, 2019 compared to 8% at September 30, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

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

  Actual
09/30/19
Bancorp
Actual
09/30/19
Bank
Regulatory Guidelines
“Well Capitalized”
       
Leverage Ratio   8.60 %   8.23 % 5.00 %
Common Equity Ratio   12.53 %   12.55 % 6.50 %
Tier 1 Risk Based Capital   13.10 %   12.55 % 8.00 %
Total Risk Based Capital   13.53 %   12.98 % 10.00 %
Tangible Common Equity   7.98 %   7.87 % n/a  

Total shareholders’ equity increased to $251 million at September 30, 2019 compared to $236 million at September 30, 2018. Book value per common share increased to $4.26 at September 30, 2019 compared to $4.01 per share at September 30, 2018.

Analyst and Investor Call

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

Date: October 28, 2019
Time: 11:00am (EDT)
From the U.S. dial: (800) 774-6070 [Toll Free] or (630) 691-2753
Participant Pin: 5866531#
   
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)              
                   
        September 30, June 30,   September 30,
(dollars in thousands, except per share amounts)   2019       2019       2018    
                   
ASSETS              
  Cash and due from banks   $ 57,562     $ 38,770     $ 37,303    
  Interest-bearing deposits and federal funds sold   143,915       90,744       108,996    
    Total cash and cash equivalents   201,477       129,514       146,299    
                   
  Securities - Available for sale     379,962       338,286       487,524    
  Securities - Held to maturity     687,425       718,534       485,291    
  Restricted stock     2,371       5,130       1,916    
    Total investment securities     1,069,758       1,061,950       974,731    
                   
  Loans held for sale     21,210       23,412       32,839    
                   
  Loans receivable     1,569,380       1,508,720       1,378,788    
  Allowance for loan losses     (8,467 )     (8,056 )     (8,084 )  
    Net loans     1,560,913       1,500,664       1,370,704    
                   
  Premises and equipment     111,573       105,311       81,912    
  Other real estate owned     6,653       6,406       6,768    
  Other assets     114,337       113,729       43,953    
                   
  Total Assets   $ 3,085,921     $ 2,940,986     $ 2,657,206    
                   
                   
                   
LIABILITIES              
  Non-interest bearing deposits   $ 595,869     $ 544,406     $ 509,188    
  Interest bearing deposits     2,144,163       1,983,571       1,891,170    
    Total deposits     2,740,032       2,527,977       2,400,358    
                   
  Short-term borrowings     -       68,979       -    
  Subordinated debt     11,263       11,262       11,257    
  Other liabilities     83,783       81,410       9,767    
                   
  Total Liabilities     2,835,078       2,689,628       2,421,382    
                   
SHAREHOLDERS' EQUITY              
  Common stock - $0.01 par value     594       594       593    
  Additional paid-in capital     271,412       270,789       268,613    
  Accumulated deficit     (9,731 )     (7,909 )     (10,873 )  
  Treasury stock at cost     (3,725 )     (3,725 )     (3,725 )  
  Stock held by deferred compensation plan   (183 )     (183 )     (183 )  
  Accumulated other comprehensive loss   (7,524 )     (8,208 )     (18,601 )  
                   
  Total Shareholders' Equity     250,843       251,358       235,824    
                   
                   
  Total Liabilities and Shareholders' Equity $ 3,085,921     $ 2,940,986     $ 2,657,206    

 

Republic First Bancorp, Inc.                    
Consolidated Statements of Income                    
(Unaudited)                    
                         
      Three Months Ended   Nine Months Ended  
             
      September 30, June 30,   September 30, September 30, September 30,
(in thousands, except per share amounts)   2019       2019     2018     2019       2018    
                         
INTEREST INCOME                    
  Interest and fees on loans $ 18,707     $ 18,569   $ 16,764   $ 55,076     $ 46,490    
  Interest and dividends on investment securities   6,724       7,158     6,641     21,265       19,903    
  Interest on other interest earning assets   777       518     153     1,631       388    
    Total interest income   26,208       26,245     23,558     77,972       66,781    
                         
INTEREST EXPENSE                    
  Interest on deposits   6,689       6,695     3,642     19,398       9,329    
  Interest on borrowed funds   137       179     770     681       1,528    
    Total interest expense   6,826       6,874     4,412     20,079       10,857    
                         
  Net interest income   19,382       19,371     19,146     57,893       55,924    
  Provision for loan losses   450       -     500     750       1,700    
                         
  Net interest income after provision for loan losses   18,932       19,371     18,646     57,143       54,224    
                         
NON-INTEREST INCOME                    
  Service fees on deposit accounts   1,990       1,848     1,386     5,450       3,887    
  Mortgage banking income   2,797       3,031     2,580     8,048       7,948    
  Gain on sale of SBA loans   944       1,147     816     2,593       2,654    
  Gain (loss) on sale of investment securities   520       261     -     1,103       (1 )  
  Other non-interest income   303       739     349     1,331       946    
    Total non-interest income   6,554       7,026     5,131     18,525       15,434    
                         
NON-INTEREST EXPENSE                    
  Salaries and employee benefits   14,314       13,705     11,203     40,378       32,731    
  Occupancy and equipment   4,734       4,221     3,260     12,970       10,083    
  Legal and professional fees   1,123       1,058     773     2,888       2,391    
  Foreclosed real estate   799       517     378     1,653       881    
  Regulatory assessments and related fees   62       421     396     904       1,258    
  Other operating expenses   6,792       5,989     4,823     18,209       14,320    
    Total non-interest expense   27,824       25,911     20,833     77,002       61,664    
                         
Income (loss) before provision (benefit) for income taxes   (2,338 )     486     2,944     (1,334 )     7,994    
                         
Provision (benefit) for income taxes   (516 )     105     622     (319 )     1,524    
                         
Net income (loss) $ (1,822 )   $ 381   $ 2,322   $ (1,015 )   $ 6,470    
                         
                         
Net Income (Loss) per Common Share                    
  Basic $ (0.03 )   $ 0.01   $ 0.04   $ (0.02 )   $ 0.11    
  Diluted $ (0.03 )   $ 0.01   $ 0.04   $ (0.02 )   $ 0.11    
                         
Average Common Shares Outstanding                    
  Basic   58,843       58,841     58,774     58,830       58,213    
  Diluted   59,207       59,401     59,774     59,416       59,338    


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)   September 30, 2019   June 30, 2019   September 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   $ 146,446   $ 777   2.10 %   $ 85,920   $ 518   2.42 %   $ 29,163   $ 153   2.08 %
Securities     1,055,154     6,743   2.56 %     1,067,185     7,184   2.69 %     1,018,910     6,676   2.62 %
Loans receivable     1,540,834     18,816   4.84 %     1,509,177     18,681   4.96 %     1,390,894     16,873   4.81 %
Total interest-earning assets   2,742,434     26,336   3.81 %     2,662,282     26,383   3.97 %     2,438,967     23,702   3.86 %
                                     
Other assets     247,682             217,685             135,139        
                                     
Total assets   $ 2,990,116           $ 2,879,967           $ 2,574,106        
                                     
Interest-bearing liabilities:                                    
                                     
Demand non interest-bearing $ 563,691           $ 525,336           $ 513,292        
Demand interest-bearing     1,168,404     3,752   1.27 %     1,144,783     4,206   1.47 %     861,607     1,948   0.90 %
Money market & savings     702,547     1,814   1.02 %     697,279     1,628   0.94 %     699,081     1,308   0.74 %
Time deposits     208,624     1,123   2.14 %     176,750     861   1.95 %     126,378     386   1.21 %
Total deposits     2,643,266     6,689   1.00 %     2,544,148     6,695   1.06 %     2,200,358     3,642   0.66 %
                                     
Total interest-bearing deposits   2,079,575     6,689   1.28 %     2,018,812     6,695   1.33 %     1,687,066     3,642   0.86 %
                                     
Other borrowings     14,037     137   3.87 %     19,864     179   3.61 %     127,150     770   2.40 %
                                     
                                     
Total interest-bearing liabilities     2,093,612     6,826   1.29 %     2,038,676     6,874   1.35 %     1,814,216     4,412   0.96 %
Total deposits and other borrowings     2,657,303     6,826   1.02 %     2,564,012     6,874   1.08 %     2,327,508     4,412   0.75 %
                                     
                                     
Non interest-bearing liabilities   81,872             66,780             10,363        
Shareholders' equity     250,941             249,175             236,235        
Total liabilities and                                    
shareholders' equity   $ 2,990,116           $ 2,879,967           $ 2,574,106        
                                     
Net interest income       $ 19,510           $ 19,509           $ 19,290    
Net interest spread           2.52 %           2.62 %           2.90 %
                                     
Net interest margin           2.82 %           2.94 %           3.14 %
                                     
                                     
Note: The above tables are presented on a tax equivalent basis.                        


Republic First Bancorp, Inc.                        
Average Balances and Net Interest Income                      
(unaudited)                          
                           
                           
                           
    For the nine months ended   For the nine months ended  
(dollars in thousands)   September 30, 2019   September 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   $ 96,245   $ 1,631   2.27 %   $ 27,625   $ 388   1.88 %  
Securities     1,069,304     21,347   2.66 %     1,027,614     20,001   2.60 %  
Loans receivable     1,506,482     55,408   4.92 %     1,310,750     46,795   4.77 %  
Total interest-earning assets   2,672,031     78,386   3.92 %     2,365,989     67,184   3.80 %  
                           
Other assets     218,947             130,344          
                           
Total assets   $ 2,890,978           $ 2,496,333          
                           
Interest-bearing liabilities:                          
                           
Demand non interest-bearing $ 533,922           $ 475,659          
Demand interest-bearing     1,142,515     11,896   1.39 %     866,397     4,754   0.73 %  
Money market & savings     691,876     4,894   0.95 %     695,386     3,454   0.66 %  
Time deposits     179,936     2,608   1.94 %     127,281     1,121   1.18 %  
Total deposits     2,548,249     19,398   1.02 %     2,164,723     9,329   0.58 %  
                           
Total interest-bearing deposits   2,014,327     19,398   1.29 %     1,689,064     9,329   0.74 %  
                           
Other borrowings     26,836     681   3.39 %     90,160     1,528   2.27 %  
                           
                           
Total interest-bearing liabilities   2,041,163     20,079   1.32 %     1,779,224     10,857   0.82 %  
Total deposits and other borrowings     2,575,085     20,079   1.04 %     2,254,883     10,857   0.64 %  
                           
                           
Non interest-bearing liabilities   67,182             9,534          
Shareholders' equity     248,711             231,916          
Total liabilities and shareholders' equity   $ 2,890,978           $ 2,496,333          
                           
Net interest income       $ 58,307           $ 56,327      
Net interest spread           2.60 %           2.98 %  
                           
Net interest margin           2.92 %           3.18 %  
                           
                           
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    Nine months ended
           
  September 30,   June 30,   September 30,   Dec 31   September 30,   September 30,
(dollars in thousands)  2019     2019     2018     2018     2019     2018 
                       
                       
Balance at beginning of period $ 8,056     $ 7,900     $ 7,566     $ 8,599     $ 8,615     $ 8,599  
                       
Provision charged to operating expense   450       -       500       2,300       750       1,700  
    8,506       7,900       8,066       10,899       9,365       10,299  
                       
Recoveries on loans charged-off:                      
Commercial   59       154       18       152       214       147  
Consumer   3       3       1       2       7       2  
Total recoveries   62       157       19       154       221       149  
                       
Loans charged-off:                      
Commercial   (72 )     (1 )     -       (2,219 )     (1,002 )     (2,151 )
Consumer   (29 )     -       (1 )     (219 )     (117 )     (213 )
                       
Total charged-off   (101 )     (1 )     (1 )     (2,438 )     (1,119 )     (2,364 )
                       
Net charge-offs   (39 )     156       18       (2,284 )     (898 )     (2,215 )
                       
Balance at end of period $ 8,467     $ 8,056     $ 8,084     $ 8,615     $ 8,467     $ 8,084  
                       
                       
Net charge-offs as a percentage of average loans outstanding   0.01 %     (0.04 %)     (0.01 %)     0.17 %     0.08 %     0.23 %
                       
Allowance for loan losses as a percentage of period-end loans   0.54 %     0.53 %     0.59 %     0.60 %     0.54 %     0.59 %


Republic First Bancorp, Inc.                  
Summary of Non-Performing Loans and Assets                
(unaudited)                  
                   
  September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands) 2019     2019     2019     2018     2018 
                   
Non-accrual loans:                  
Commercial real estate $ 10,180     $ 7,545     $ 8,096     $ 9,463     $ 12,661  
Consumer and other   1,743       1,777       836       878       818  
Total non-accrual loans   11,923       9,322       8,932       10,341       13,479  
                   
Loans past due 90 days or more and still accruing   129       -       1,744       -       -  
                   
Total non-performing loans   12,052       9,322       10,676       10,341       13,479  
                   
Other real estate owned   6,653       6,406       6,088       6,223       6,768  
                   
Total non-performing assets $ 18,705     $ 15,728     $ 16,764     $ 16,564     $ 20,247  
                   
                   
Non-performing loans to total loans   0.77 %     0.62 %     0.72 %     0.72 %     0.98 %
                   
Non-performing assets to total assets   0.61 %     0.53 %     0.60 %     0.60 %     0.76 %
                   
Non-performing loan coverage   70.25 %     86.42 %     74.00 %     83.31 %     59.97 %
                   
Allowance for loan losses as a percentage of total period-end loans   0.54 %     0.53 %     0.53 %     0.60 %     0.59 %
                   
Non-performing assets / capital plus allowance for loan losses   7.21 %     6.06 %     6.54 %     6.53 %     8.30 %

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