Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company
for Republic Bank, today announced its financial results for the
period ended March 31, 2020.
Q1-2020
Financial Highlights
- Total loans grew $405 million, or 27%, to $1.9 billion as of
March 31, 2020 compared to $1.5 billion at March 31,
2019.
- Total deposits increased by $466 million, or 19%, to $2.9
billion as of March 31, 2020 compared to $2.5 billion as of March
31, 2019.
- 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
$16 million per store.
- Profitability improved compared to the previous quarter as the
reported net loss declined to $0.6 million, or ($0.01) per share,
for the three months ended March 31, 2020 compared to a net loss of
$2.5 million, or ($0.04) per share for the three months ended
December 31, 2019.
- Cost control initiatives identified by management have begun to
take effect as non-interest expense declined for the second
consecutive quarter.
Harry D.
Madonna, President and Chief Executive Officer of Republic First
Bancorp said:
“Net income during 2019 was negatively impacted
by the challenging nature of the interest rate environment and
costs required to initiate our expansion into New York City. We are
pleased with the progress we have made in the early stages of 2020
to control expenses and improve profitability. In addition, the net
interest margin improved quarter to quarter for the first time in
two years. Republic Bank will continue to be a source of strength
for the community as we work through the effects of the COVID-19
crisis. As a leader in the SBA PPP Loan Program, we are positioned
for strong growth in loans and deposits driven by the new
relationships we have developed through this program.”
Over the last several weeks the “Power
of Red is Back” expansion campaign has shifted its focus
to serve the needs of small businesses in our community. The
Paycheck Protection Program (PPP) included in the CARES Act
authorized financial institutions to make loans to companies that
have been impacted by the devastating economic effects of the
coronavirus (COVID-19) pandemic. Republic responded by quickly
developing a process to accept applications for the program not
only from its valued small business customers, but from
non-customers throughout the community as well.
PPP Loan
Program Highlights
Republic Bank has
actively participated in the SBA PPP Loan Program by accepting
applications for existing and new customers.
As of April 28, 2020
Republic has:
- Obtained SBA approval for 72% of the 4,300 PPP
applications received
- With an average loan size of $213 thousand
- Which amounts to $661 million in loan balances
- Representing 35% of Republic Bank’s total loans as of March 31,
2020
- With an average fee of approximately 3% earned by
Republic
- And arranged for funding for this program to be provided
through the Federal Reserve PPP Lending Facility, which will result
in exclusion of the PPP asset balances from the leverage ratio
calculation.
We will continue to
submit applications to the SBA for approval until the second round
of funding is depleted.
More than 25% of the
applications that we obtained SBA approval on were for small
businesses that were not existing customers of Republic Bank. Our
participation in this program has already resulted in many new
business accounts expanding the Power of
RED!
Vernon W. Hill, II, Chairman of Republic
First Bancorp said:
“We have consistently stated that it is our goal
to deliver best in class service across all delivery
channels…..in-store, by phone, online and mobile options....as we
strive to create new FANS each and every day. Our commitment
to assist small businesses during this unprecedented time of need
reinforces our unwavering dedication to this goal. I could not be
more proud of the effort that our team has put forth to provide
access to financial assistance to businesses most affected by the
coronavirus and the current state of our economy.”
COVID-19 Response Efforts
The Republic Bank management team has taken a number of steps to
mitigate the potential spread of the coronavirus and to assist our
customers, employees and other members of the community during this
pandemic crisis. In addition to other actions, we have:
- Temporarily closed the lobbies in all of our suburban store
locations. However, drive-thru lanes remain open for all
transactions including new account openings.
- Encouraged customers to utilize our online, mobile and
telephone banking systems. In addition, we continue to offer more
than 55,000 surcharge free ATM machines to all of our
customers.
- Directed our commercial lenders to contact each of their
customers to discuss the impact of the current economic conditions
on their business and to develop a plan for assistance if
required.
- Changed the Annual Shareholder Meeting to be held on April 29,
2020 to a virtual meeting only.
Loss Mitigation and Loan Portfolio
Analysis
Management has taken a proactive approach to
analyze and prepare for the potential challenges to be faced as the
effects of the economic shutdown begin to unfold. A detailed
analysis of loan concentrations and segments that may represent the
areas of highest risk has been prepared. Our commercial lending
team has initiated contact with a majority of our loan customers to
discuss the impact that this pandemic crisis has had on their
businesses to date and the expected ramifications that could be
felt in the future. We have initiated payment deferrals for all
customers that have an immediate need for assistance.
We believe the combination of ongoing
communication with our customers, loan payment deferrals, increased
focus on risk management practices, and access to government
programs such as the PPP Program should help mitigate potential
future period losses. At this time we do expect the provision for
loan losses and charge-offs to increase in the coming quarters, but
more time is needed to fully understand the magnitude and length of
the economic downturn and the full impact on our loan
portfolio.
Financial Summary for the Period Ended
March 31, 2020
A summary of the financial results for the
period ended March 31, 2020 can be found in the following
tables:
($ in
millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
03/31/20 |
|
03/31/19 |
|
YOY Change |
|
12/31/19 |
|
QTD Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
3,300 |
|
$ |
2,805 |
|
18 |
% |
|
$ |
3,341 |
|
(1 |
%) |
|
Loans |
|
|
1,882 |
|
|
1,477 |
|
27 |
% |
|
|
1,748 |
|
8 |
% |
|
Deposits |
|
|
2,944 |
|
|
2,479 |
|
19 |
% |
|
|
2,999 |
|
(2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
03/31/20 |
|
12/31/19 |
|
Change |
|
03/31/20 |
|
03/31/19 |
|
Change |
Total Revenue |
|
$ |
33.8 |
|
|
$ |
32.1 |
|
|
5 |
% |
|
$ |
33.8 |
|
|
$ |
30.5 |
|
|
11 |
% |
Net Income (Loss) |
|
|
(0.6 |
) |
|
|
(2.5 |
) |
|
76 |
% |
|
|
(0.6 |
) |
|
|
0.4 |
|
|
(239 |
%) |
Net Income (Loss) per Share |
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
75 |
% |
|
$ |
(0.01 |
) |
|
$ |
0.01 |
|
|
(200 |
%) |
Net Interest Margin |
|
|
2.76 |
% |
|
|
2.67 |
% |
|
|
|
|
2.76 |
% |
|
|
3.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Total assets increased by $495 million, or 18%, to $3.3 billion
as of March 31, 2020 compared to $2.8 billion as of March 31,
2019.
- Demand deposits represent the fastest growing segment of the
Company’s deposit base. These deposits grew by $327 million to $2.0
billion over the last 12 months, including growth of 29% in
non-interest bearing demand deposit balances.
- We have thirty convenient store locations open today. During
the first quarter of 2020 we opened a new store in Northfield, NJ.
Construction is ongoing on a site in Bensalem, PA. There are also
multiple sites in various stages of development for future store
locations.
- Profitability improved quarter to quarter as we reported a loss
of $0.6 million, or ($0.01) per share, for the three months ended
March 31, 2020 compared to a net loss of $2.5 million, or $(0.04)
per share for the three months ended December 31, 2019. We
reported net income of $0.4 million, or $0.01 per share, for the
three months ended March 31, 2019.
- The net interest margin increased by 9 basis points to 2.76%
for the three months ended March 31, 2020 compared to 2.67% for the
three months ended December 31, 2019.
- During the first quarter we entered into a branding agreement
with Visa to convert all ATM and Debit cards which will provide a
number of opportunities to enhance revenue growth in the coming
years.
- The Company has elected to defer the adoption of CECL as
permitted by the CARES Act approved by Congress.
- Asset quality improved year over year as the ratio of
non-performing assets to total assets declined to 0.46% as of March
31, 2020 compared to 0.60% as of March 31, 2019.
- 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 $470
million in mortgage loans over the last twelve months.
- Meeting the needs of small business customers continued to be
an important part of our lending strategy. More than $11
million in new SBA loans were originated during the three month
period ended March 31, 2020. We continue to be one of the top SBA
lender in our market area based on the dollar volume of loan
originations.
- The Company’s Total Risk-Based Capital ratio was 11.76% and
Tier I Leverage Ratio was 7.67% at March 31, 2020.
- Book value per common share increased to $4.28 as of March 31,
2020 compared to $4.22 as of March 31, 2019.
Income Statement
The major components of the income statement are
as follows (dollars in thousands, except per share data):
|
Three Months Ended |
|
03/31/20 |
|
12/31/19 |
|
% Change |
|
03/31/19 |
|
% Change |
Net Interest Income |
$ |
20,754 |
|
|
$ |
19,914 |
|
|
4 |
% |
|
$ |
19,140 |
|
8 |
% |
Non-interest Income |
|
6,545 |
|
|
|
5,213 |
|
|
26 |
% |
|
|
4,945 |
|
32 |
% |
Provision for Loan Losses |
|
950 |
|
|
|
1,155 |
|
|
(18 |
%) |
|
|
300 |
|
217 |
% |
Non-interest Expense |
|
27,272 |
|
|
|
27,488 |
|
|
(1 |
%) |
|
|
23,267 |
|
17 |
% |
Income (Loss) Before
Taxes |
|
(923 |
) |
|
|
(3,516 |
) |
|
74 |
% |
|
|
518 |
|
(278 |
%) |
Provision (Benefit) for
Taxes |
|
(330 |
) |
|
|
(1,031 |
) |
|
68 |
% |
|
|
92 |
|
(459 |
%) |
Net Income (Loss) |
|
(593 |
) |
|
|
(2,485 |
) |
|
76 |
% |
|
|
426 |
|
(239 |
%) |
|
|
|
|
|
|
|
|
|
|
Net
Income (Loss) per Share |
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
75 |
% |
|
$ |
0.01 |
|
(200 |
%) |
We reported a net loss of $593 thousand, or
($0.01) per share, for the three month period ended March 31, 2020,
compared to net income of $426 thousand, or $0.01 per share, for
the three month period ended March 31, 2019.
Interest income increased by $1.8 million, or
7%, to $27.3 million for the quarter ended March 31, 2020 compared
to $25.5 million for the quarter ended March 31, 2019. 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. Interest
expense increased by $150 thousand, or 2%, to $6.5 million for the
quarter ended March 31, 2020 compared to $6.4 million for the
quarter ended March 31, 2019. We experienced margin compression
throughout 2019 as a result of the flattening of the yield curve.
The net interest margin for the three month period ended March 31,
2020 decreased by 24 basis points to 2.76% compared to 3.00% for
the three month period ended March 31, 2019. However, for the first
time in over two years the net interest margin has increased on a
quarter to quarter basis.
Non-interest income increased by $1.6 million,
or 32%, to $6.5 million for the three month period ended March 31,
2020, compared to $4.9 million for the three month period ended
March 31, 2019. The increase is 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, mortgage banking
income driven by mortgage loan originations, gains on sales of SBA
loans, along with gains on the sale of investment securities.
Non-interest expenses increased by 17%, to $27.3
million during the quarter ended March 31, 2020 compared to $23.3
million during the quarter ended March 31, 2019. The growth in
expenses were mainly caused by an increase in salaries and employee
benefits driven by annual merit increases along with increased
staffing levels related to our growth and expansion strategy.
Occupancy and equipment expenses associated with the growth
strategy also contributed to the increase in non-interest expenses.
During 2019 we began to incur costs related to our entrance into
New York City as we initiated our expansion into this new market.
We hired a management and lending team and commenced rent payments
for the build out of our store locations. We opened our first two
stores in New York during the latter part of 2019. These
stores have begun to generate loans and deposits resulting in
revenue to support our expansion initiative there.
The benefit for income taxes was $330 thousand
for the three month period ended March 31, 2020 compared to a
provision for income taxes in the amount of $92 thousand for the
three month period ended March 31, 2019.
Balance Sheet
The major components of the balance sheet are as
follows (dollars in thousands):
Description |
03/31/20 |
03/31/19 |
% Change |
12/31/19 |
% Change |
|
|
|
|
|
|
Total assets |
$ |
3,300,416 |
$ |
2,805,060 |
18 |
% |
$ |
3,341,290 |
(1 |
%) |
Total loans (net) |
|
1,871,820 |
|
1,469,186 |
27 |
% |
|
1,738,929 |
8 |
% |
Total deposits |
|
2,944,479 |
|
2,478,953 |
19 |
% |
|
2,999,163 |
(2 |
%) |
Total assets increased by $495.4 million, or
18%, as of March 31, 2020 when compared to March 31, 2019.
Deposits grew by $465.5 million to $2.9 billion as of March 31,
2020 compared to $2.5 billion as of March 31, 2019. The number of
deposit accounts has grown by 25% during the past twelve months.
The strong growth in assets, loans and deposits has been driven by
the addition of new stores and the successful execution of the
Company’s aggressive growth strategy referred to as “The Power of
Red is Back.”
Deposits
Deposits by type of account are as follows
(dollars in thousands):
Description |
03/31/20 |
03/31/19 |
% Change |
12/31/19 |
% Change |
1st Qtr 2020 Cost of Funds |
|
|
|
|
|
|
|
Demand noninterest-bearing |
$ |
676,482 |
$ |
525,645 |
29 |
% |
$ |
661,431 |
2 |
% |
0.00 |
% |
Demand interest-bearing |
|
1,276,816 |
|
1,101,129 |
16 |
% |
|
1,352,360 |
(6 |
%) |
1.03 |
% |
Money market and savings |
|
768,550 |
|
691,351 |
11 |
% |
|
761,793 |
(1 |
%) |
0.95 |
% |
Certificates of deposit |
|
222,631 |
|
160,828 |
38 |
% |
|
223,579 |
- |
% |
2.17 |
% |
Total deposits |
$ |
2,944,479 |
$ |
2,478,953 |
19 |
% |
$ |
2,999,163 |
(2 |
%) |
0.87 |
% |
|
|
|
|
|
|
|
Deposits increased to $2.9 billion at March 31,
2020 compared to $2.5 billion at March 31, 2019 as we move forward
with our growth strategy to increase the number of stores and
expand the reach of our banking model which focuses on high levels
of customer service and convenience and drives the gathering of
low-cost, core deposits. We recognized strong growth in demand
deposit balances, including an increase in non-interest bearing
demand deposits of 29%, year over year as a result of the
successful execution of our strategy.
Lending
Loans by type are as follows (dollars in
thousands):
Description |
03/31/20 |
% of Total |
03/31/19 |
% of Total |
12/31/19 |
% of Total |
|
|
|
|
|
|
|
Commercial and industrial |
$ |
241,754 |
13 |
% |
$ |
204,637 |
14 |
% |
$ |
223,906 |
13 |
% |
Owner occupied real estate |
|
436,499 |
23 |
% |
|
376,845 |
26 |
% |
|
424,400 |
24 |
% |
Commercial real estate |
|
668,462 |
36 |
% |
|
527,004 |
36 |
% |
|
613,631 |
35 |
% |
Construction and land
development |
|
144,215 |
8 |
% |
|
124,124 |
8 |
% |
|
121,395 |
7 |
% |
Residential mortgage |
|
287,425 |
15 |
% |
|
151,748 |
10 |
% |
|
263,444 |
15 |
% |
Consumer and other |
|
103,682 |
5 |
% |
|
92,728 |
6 |
% |
|
101,419 |
6 |
% |
Gross loans |
$ |
1,882,037 |
100 |
% |
$ |
1,477,086 |
100 |
% |
$ |
1,748,195 |
100 |
% |
|
|
|
|
|
|
|
Gross loans increased by $405 million, or 27%,
to $1.9 billion at March 31, 2020 compared to $1.5 billion at March
31, 2019 as a result of the steady flow in quality loan demand over
the last twelve months and continued success with the relationship
banking model. The Company experienced strong growth across all
loan categories.
Asset Quality
The Company’s asset quality ratios are
highlighted below:
|
Three Months Ended |
|
03/31/20 |
12/31/19 |
03/31/19 |
|
|
|
|
Non-performing assets / capital and reserves |
6 |
% |
5 |
% |
7 |
% |
Non-performing assets / total assets |
0.46 |
% |
0.42 |
% |
0.60 |
% |
Quarterly net loan charge-offs / average loans |
0.00 |
% |
0.09 |
% |
0.28 |
% |
Allowance for loan losses / gross loans |
0.54 |
% |
0.53 |
% |
0.53 |
% |
Allowance for loan losses / non-performing loans |
72 |
% |
75 |
% |
74 |
% |
The percentage of non-performing assets to total
assets decreased to 0.46% at March 31, 2020, compared to 0.60% at
March 31, 2019. The ratio of non-performing assets to capital
and reserves decreased to 6% at March 31, 2020 compared to 7% at
March 31, 2019 primarily as a result of decreases in non-performing
assets over the last 12 months.
Capital
The Company’s capital ratios at March 31, 2020
were as follows:
|
Actual03/31/20Bancorp |
Actual03/31/20Bank |
Regulatory Guidelines“Well
Capitalized” |
|
|
|
|
Leverage Ratio |
7.67 |
% |
7.38 |
% |
5.00 |
% |
Common Equity Ratio |
10.81 |
% |
10.88 |
% |
6.50 |
% |
Tier 1 Risk Based Capital |
11.30 |
% |
10.88 |
% |
8.00 |
% |
Total Risk Based Capital |
11.76 |
% |
11.33 |
% |
10.00 |
% |
Tangible Common Equity |
7.50 |
% |
7.40 |
% |
n/a |
|
Total shareholders’ equity increased to $252
million at March 31, 2020 compared to $248 million at March 31,
2019. Book value per common share increased to $4.28 at March 31,
2020 compared to $4.22 per share at March 31, 2019.
Analyst and Investor Call
An analyst and investor call will be held on the
following date and time:
Date: |
April 29, 2020 |
Time: |
11:00am (EDT) |
From the U.S. dial: |
(866) 294-4838 [US Toll
Free] or |
|
(847) 944-7303 [US
Toll] |
Participant Pin: |
8965 841# |
|
|
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 thirty stores located in
Greater Philadelphia, Southern New Jersey and New York City.
Republic Bank stores are open 7 days a week, 361 days a year,
with extended lobby and drive-thru hours providing customers with
some of 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; the effects
of health emergencies, including the spread of infectious diseases
and pandemics; 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, 2019 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. |
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Consolidated Balance Sheets |
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(Unaudited) |
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March 31, |
|
December 31, |
|
March 31, |
|
(dollars in thousands, except per share amounts) |
|
2020 |
|
|
|
2019 |
|
|
|
2019 |
|
|
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|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
32,581 |
|
|
$ |
41,928 |
|
|
$ |
31,511 |
|
|
|
Interest-bearing deposits and federal funds sold |
|
23,936 |
|
|
|
126,391 |
|
|
|
54,394 |
|
|
|
|
Total cash and cash equivalents |
|
56,517 |
|
|
|
168,319 |
|
|
|
85,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities - Available for sale |
|
|
497,511 |
|
|
|
539,042 |
|
|
|
287,694 |
|
|
|
Securities - Held to maturity |
|
|
611,914 |
|
|
|
644,842 |
|
|
|
742,435 |
|
|
|
Restricted stock |
|
|
|
2,746 |
|
|
|
2,746 |
|
|
|
2,097 |
|
|
|
|
Total investment securities |
|
|
1,112,171 |
|
|
|
1,186,630 |
|
|
|
1,032,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
|
|
16,820 |
|
|
|
13,349 |
|
|
|
15,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
|
|
|
1,882,037 |
|
|
|
1,748,195 |
|
|
|
1,477,086 |
|
|
|
Allowance for loan losses |
|
|
(10,217 |
) |
|
|
(9,266 |
) |
|
|
(7,900 |
) |
|
|
|
Net loans |
|
|
|
|
1,871,820 |
|
|
|
1,738,929 |
|
|
|
1,469,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
119,893 |
|
|
|
116,956 |
|
|
|
94,390 |
|
|
|
Other real estate owned |
|
|
1,144 |
|
|
|
1,730 |
|
|
|
6,088 |
|
|
|
Other assets |
|
|
|
122,051 |
|
|
|
115,377 |
|
|
|
101,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
$ |
3,300,416 |
|
|
$ |
3,341,290 |
|
|
$ |
2,805,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
$ |
676,482 |
|
|
$ |
661,431 |
|
|
$ |
525,645 |
|
|
|
Interest bearing deposits |
|
|
2,267,997 |
|
|
|
2,337,732 |
|
|
|
1,953,308 |
|
|
|
|
Total deposits |
|
|
|
2,944,479 |
|
|
|
2,999,163 |
|
|
|
2,478,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated debt |
|
|
|
11,267 |
|
|
|
11,265 |
|
|
|
11,260 |
|
|
|
Other liabilities |
|
|
|
92,554 |
|
|
|
81,694 |
|
|
|
66,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
3,048,300 |
|
|
|
3,092,122 |
|
|
|
2,556,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common stock - $0.01 par value |
|
|
594 |
|
|
|
594 |
|
|
|
593 |
|
|
|
Additional paid-in capital |
|
|
272,639 |
|
|
|
272,039 |
|
|
|
270,155 |
|
|
|
Accumulated deficit |
|
|
|
(12,809 |
) |
|
|
(12,216 |
) |
|
|
(8,290 |
) |
|
|
Treasury stock at cost |
|
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
(3,725 |
) |
|
|
Stock held by deferred compensation plan |
|
(183 |
) |
|
|
(183 |
) |
|
|
(183 |
) |
|
|
Accumulated other comprehensive loss |
|
(4,400 |
) |
|
|
(7,341 |
) |
|
|
(10,165 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
|
252,116 |
|
|
|
249,168 |
|
|
|
248,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
3,300,416 |
|
|
$ |
3,341,290 |
|
|
$ |
2,805,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Republic First Bancorp, Inc. |
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(in thousands, except per share amounts) |
2020 |
|
2019 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
20,173 |
|
|
$ |
19,421 |
|
|
$ |
17,800 |
|
|
Interest and dividends on investment securities |
|
6,821 |
|
|
|
6,531 |
|
|
|
7,383 |
|
|
Interest on other interest earning assets |
|
289 |
|
|
|
940 |
|
|
|
336 |
|
|
|
Total interest income |
|
|
27,283 |
|
|
|
26,892 |
|
|
|
25,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
|
6,425 |
|
|
|
6,869 |
|
|
|
6,014 |
|
|
Interest on borrowed funds |
|
|
104 |
|
|
|
109 |
|
|
|
365 |
|
|
|
Total interest expense |
|
|
6,529 |
|
|
|
6,978 |
|
|
|
6,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
20,754 |
|
|
|
19,914 |
|
|
|
19,140 |
|
|
Provision for loan losses |
|
|
950 |
|
|
|
1,155 |
|
|
|
300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
19,804 |
|
|
|
18,759 |
|
|
|
18,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
Service fees on deposit accounts |
|
|
2,064 |
|
|
|
2,091 |
|
|
|
1,612 |
|
|
Mortgage banking income |
|
|
2,458 |
|
|
|
2,077 |
|
|
|
2,220 |
|
|
Gain on sale of SBA loans |
|
|
649 |
|
|
|
594 |
|
|
|
502 |
|
|
Gain on sale of investment securities |
|
841 |
|
|
|
- |
|
|
|
322 |
|
|
Other non-interest income |
|
|
533 |
|
|
|
451 |
|
|
|
289 |
|
|
|
Total non-interest income |
|
|
6,545 |
|
|
|
5,213 |
|
|
|
4,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
13,381 |
|
|
|
13,510 |
|
|
|
12,359 |
|
|
Occupancy and equipment |
|
|
5,297 |
|
|
|
5,077 |
|
|
|
4,015 |
|
|
Legal and professional fees |
|
|
930 |
|
|
|
1,036 |
|
|
|
707 |
|
|
Foreclosed real estate |
|
|
|
282 |
|
|
|
456 |
|
|
|
337 |
|
|
Regulatory assessments and related fees |
|
630 |
|
|
|
324 |
|
|
|
421 |
|
|
Other operating expenses |
|
|
6,752 |
|
|
|
7,085 |
|
|
|
5,428 |
|
|
|
Total non-interest expense |
|
|
27,272 |
|
|
|
27,488 |
|
|
|
23,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision (benefit) for income taxes |
|
(923 |
) |
|
|
(3,516 |
) |
|
|
518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
(330 |
) |
|
|
(1,031 |
) |
|
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
$ |
(593 |
) |
|
$ |
(2,485 |
) |
|
$ |
426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per Common Share |
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.01 |
|
|
Diluted |
|
|
|
$ |
(0.01 |
) |
|
$ |
(0.04 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Common Shares Outstanding |
|
|
|
|
|
|
|
Basic |
|
|
|
|
58,848 |
|
|
|
58,843 |
|
|
|
58,805 |
|
|
Diluted |
|
|
|
|
58,848 |
|
|
|
58,843 |
|
|
|
59,587 |
|
Republic First Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances and Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended |
|
For the three months
ended |
|
For the three months
ended |
(dollars in
thousands) |
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
81,339 |
|
$ |
289 |
|
1.43 |
% |
|
$ |
228,292 |
|
$ |
940 |
|
1.63 |
% |
|
$ |
55,369 |
|
$ |
336 |
|
2.46 |
% |
Securities |
|
|
1,156,504 |
|
|
6,826 |
|
2.36 |
% |
|
|
1,090,736 |
|
|
6,539 |
|
2.40 |
% |
|
|
1,085,910 |
|
|
7,420 |
|
2.73 |
% |
Loans
receivable |
|
|
1,808,382 |
|
|
20,319 |
|
4.52 |
% |
|
|
1,658,917 |
|
|
19,538 |
|
4.67 |
% |
|
|
1,468,640 |
|
|
17,911 |
|
4.95 |
% |
Total interest-earning assets |
|
3,046,225 |
|
|
27,434 |
|
3.62 |
% |
|
|
2,977,945 |
|
|
27,017 |
|
3.60 |
% |
|
|
2,609,919 |
|
|
25,667 |
|
3.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets |
|
|
260,829 |
|
|
|
|
|
|
261,875 |
|
|
|
|
|
|
190,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
3,307,054 |
|
|
|
|
|
$ |
3,239,820 |
|
|
|
|
|
$ |
2,800,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand non interest-bearing |
$ |
644,601 |
|
|
|
|
|
$ |
619,075 |
|
|
|
|
|
$ |
512,172 |
|
|
|
|
Demand
interest-bearing |
|
|
1,337,646 |
|
|
3,421 |
|
1.03 |
% |
|
|
1,309,205 |
|
|
3,725 |
|
1.13 |
% |
|
|
1,113,758 |
|
|
3,938 |
|
1.43 |
% |
Money market
& savings |
|
|
752,510 |
|
|
1,783 |
|
0.95 |
% |
|
|
745,707 |
|
|
1,902 |
|
1.01 |
% |
|
|
675,506 |
|
|
1,452 |
|
0.87 |
% |
Time
deposits |
|
|
226,185 |
|
|
1,221 |
|
2.17 |
% |
|
|
222,116 |
|
|
1,242 |
|
2.22 |
% |
|
|
153,832 |
|
|
624 |
|
1.65 |
% |
Total
deposits |
|
|
2,960,942 |
|
|
6,425 |
|
0.87 |
% |
|
|
2,896,103 |
|
|
6,869 |
|
0.94 |
% |
|
|
2,455,268 |
|
|
6,014 |
|
0.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
2,316,341 |
|
|
6,425 |
|
1.12 |
% |
|
|
2,277,028 |
|
|
6,869 |
|
1.20 |
% |
|
|
1,943,096 |
|
|
6,014 |
|
1.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
borrowings |
|
|
11,952 |
|
|
104 |
|
3.50 |
% |
|
|
11,264 |
|
|
109 |
|
3.84 |
% |
|
|
46,969 |
|
|
365 |
|
3.15 |
% |
|
|
|
|
|
|
. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities |
|
|
2,328,293 |
|
|
6,529 |
|
1.13 |
% |
|
|
2,288,292 |
|
|
6,978 |
|
1.21 |
% |
|
|
1,990,065 |
|
|
6,379 |
|
1.30 |
% |
Total
deposits and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other
borrowings |
|
|
2,972,894 |
|
|
6,529 |
|
0.88 |
% |
|
|
2,907,367 |
|
|
6,978 |
|
0.95 |
% |
|
|
2,502,237 |
|
|
6,379 |
|
1.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest-bearing liabilities |
|
84,211 |
|
|
|
|
|
|
82,515 |
|
|
|
|
|
|
52,037 |
|
|
|
|
Shareholders' equity |
|
|
249,949 |
|
|
|
|
|
|
249,938 |
|
|
|
|
|
|
246,500 |
|
|
|
|
Total
liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity |
|
$ |
3,307,054 |
|
|
|
|
|
$ |
3,239,820 |
|
|
|
|
|
$ |
2,800,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
20,905 |
|
|
|
|
|
$ |
20,039 |
|
|
|
|
|
$ |
19,288 |
|
|
Net interest
spread |
|
|
|
|
|
2.49 |
% |
|
|
|
|
|
2.39 |
% |
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The above tables
are presented on a tax equivalent basis. |
|
|
|
|
|
|
|
|
|
|
|
|
Republic First Bancorp, Inc. |
|
|
|
|
|
|
Summary of Allowance for Loan Losses and Other Related
Data |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in
thousands) |
2020 |
|
2019 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
beginning of period |
$ |
9,266 |
|
|
$ |
8,467 |
|
|
$ |
8,615 |
|
|
|
|
|
|
|
|
|
Provision
charged to operating expense |
|
950 |
|
|
|
1,155 |
|
|
|
300 |
|
|
|
|
10,216 |
|
|
|
9,622 |
|
|
|
8,915 |
|
|
|
|
|
|
|
|
|
Recoveries
on loans charged-off: |
|
|
|
|
|
|
Commercial |
|
17 |
|
|
|
5 |
|
|
|
1 |
|
|
Consumer |
|
6 |
|
|
|
2 |
|
|
|
1 |
|
|
Total
recoveries |
|
23 |
|
|
|
7 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
Loans
charged-off: |
|
|
|
|
|
|
Commercial |
|
- |
|
|
|
(354 |
) |
|
|
(929 |
) |
|
Consumer |
|
(22 |
) |
|
|
(9 |
) |
|
|
(88 |
) |
|
|
|
|
|
|
|
|
Total
charged-off |
|
(22 |
) |
|
|
(363 |
) |
|
|
(1,017 |
) |
|
|
|
|
|
|
|
|
Net
(charge-offs) recoveries |
|
1 |
|
|
|
(356 |
) |
|
|
(1,015 |
) |
|
|
|
|
|
|
|
|
Balance at
end of period |
$ |
10,217 |
|
|
$ |
9,266 |
|
|
$ |
7,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (charge-offs) recoveries as a percentage |
|
|
|
|
|
of average
loans outstanding |
|
(0.00 |
%) |
|
|
0.09 |
% |
|
|
0.28 |
% |
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percentage |
|
|
|
|
|
|
of
period-end loans |
|
0.54 |
% |
|
|
0.53 |
% |
|
|
0.53 |
% |
|
Republic First Bancorp, Inc. |
|
|
|
|
|
|
|
|
|
Summary of Non-Performing Loans and Assets |
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(dollars in
thousands) |
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
12,060 |
|
|
$ |
10,569 |
|
|
$ |
10,180 |
|
|
$ |
7,545 |
|
|
$ |
8,096 |
|
Consumer and other |
|
2,125 |
|
|
|
1,844 |
|
|
|
1,743 |
|
|
|
1,777 |
|
|
|
836 |
|
Total
non-accrual loans |
|
14,185 |
|
|
|
12,413 |
|
|
|
11,923 |
|
|
|
9,322 |
|
|
|
8,932 |
|
|
|
|
|
|
|
|
|
|
|
Loans past
due 90 days or more |
|
|
|
|
|
|
|
|
|
and still
accruing |
|
- |
|
|
|
- |
|
|
|
129 |
|
|
|
- |
|
|
|
1,744 |
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans |
|
14,185 |
|
|
|
12,413 |
|
|
|
12,052 |
|
|
|
9,322 |
|
|
|
10,676 |
|
|
|
|
|
|
|
|
|
|
|
Other real
estate owned |
|
1,144 |
|
|
|
1,730 |
|
|
|
6,653 |
|
|
|
6,406 |
|
|
|
6,088 |
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
$ |
15,329 |
|
|
$ |
14,143 |
|
|
$ |
18,705 |
|
|
$ |
15,728 |
|
|
$ |
16,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
0.75 |
% |
|
|
0.71 |
% |
|
|
0.77 |
% |
|
|
0.62 |
% |
|
|
0.72 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing assets to total assets |
|
0.46 |
% |
|
|
0.42 |
% |
|
|
0.61 |
% |
|
|
0.53 |
% |
|
|
0.60 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing loan coverage |
|
72.03 |
% |
|
|
74.65 |
% |
|
|
70.25 |
% |
|
|
86.42 |
% |
|
|
74.00 |
% |
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses as a percentage |
|
|
|
|
|
|
|
|
|
of total
period-end loans |
|
0.54 |
% |
|
|
0.53 |
% |
|
|
0.54 |
% |
|
|
0.53 |
% |
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
Non-performing assets / capital plus |
|
|
|
|
|
|
|
|
|
allowance
for loan losses |
|
5.84 |
% |
|
|
5.47 |
% |
|
|
7.21 |
% |
|
|
6.06 |
% |
|
|
6.54 |
% |
Republic First Bancorp (NASDAQ:FRBK)
Historical Stock Chart
From Apr 2024 to May 2024
Republic First Bancorp (NASDAQ:FRBK)
Historical Stock Chart
From May 2023 to May 2024