PHILADELPHIA, Oct. 23, 2017 (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, 2017.
| Three Months Ended | ||||||||||
| ($ in millions, except per share data) | 09/30/17 |
09/30/16 |
% Change | |||||||
| Assets | $ | 2,141.6 | $ | 1,733.9 | 24 | % | ||||
| Loans | 1,095.4 | 945.5 | 16 | % | ||||||
| Deposits | 1,885.4 | 1,582.2 | 19 | % | ||||||
| Total Revenue | $ | 23.7 | $ | 18.8 | 26 | % | ||||
| Net Income | 2.3 | 1.3 | 73 | % | ||||||
| Net Income per Diluted Share | $ | 0.04 | $ | 0.03 | 33 | % | ||||
Vernon W. Hill, II, Chairman of Republic First Bancorp said:
“I am pleased to report another quarter of strong financial results for Republic Bank. Our FANS continue to spread the word to family, friends and business partners which contributes to the growing momentum of ‘The Power of Red is Back’ growth campaign. As we watch our competition shutter the doors on their branch network, we see endless opportunities to welcome new FANS into our stores. We are building something very special here and I am extremely excited about the future of our organization.”
Harry D. Madonna, President and Chief Executive Officer of Republic First Bancorp added:
“Our FAN base continues to rapidly expand with each new store opening. During the third quarter we opened new locations in Sicklerville and Medford, NJ. Both openings were met with overwhelming acceptance in those communities. In the fourth quarter we are set to begin our expansion in Bucks County, PA with the completion of our store in Fairless Hills. Our commitment to convenience and extraordinary customer service through all delivery channels is creating new FANS throughout our footprint.”
Highlights for the Period Ended September 30, 2017
- Net income increased by 73% to $2.3 million, or $0.04 per diluted share, for the three months ended September 30, 2017 compared to $1.3 million, or $0.03 per diluted share, for the three months ended September 30, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy.
- Total assets increased by $408 million, or 24%, to $2.1 billion as of September 30, 2017 compared to $1.7 billion as of September 30, 2016.
- Total deposits increased by $303 million, or 19%, to $1.9 billion as of September 30, 2017 compared to $1.6 billion as of September 30, 2016.
- 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. The average deposit growth for all stores over the last twelve months was approximately $17 million per store.
- New stores were recently opened in Sicklerville and Medford, NJ bringing the total store count to twenty-two. Another store in Fairless Hills, PA is currently under construction and scheduled to open during the fourth quarter. There are also several additional sites in various stages of development for future store locations.
- Total loans grew $150 million, or 16%, to $1.1 billion as of September 30, 2017 compared to $946 million at September 30, 2016.
- Asset quality continues to improve on a consistent basis. The ratio of non-performing assets to total assets declined to 1.07% as of September 30, 2017 compared to 1.72% as of September 30, 2016.
- The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $109 million in loans during the third quarter of 2017.
- SBA lending continued to be an important part of the Company’s lending strategy. More than $7 million in new SBA loans were originated during the three month period ended September 30, 2017.
- The Company’s Total Risk-Based Capital ratio was 17.64% and Tier I Leverage Ratio was 11.80% at September 30, 2017.
- Book value per common share increased to $3.95 as of September 30, 2017 compared to $3.16 as of September 30, 2016.
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
| Three Months Ended | Nine Months Ended | |||||||||||||
| 09/30/17 | 09/30/16 | % Change | 09/30/17 | 09/30/16 | % Change | |||||||||
| Total Revenue | $ | 23,700 | $ | 18,762 | 26 | % | $ | 66,525 | $ | 50,176 | 33 | % | ||
| Provision for Loan Losses | – | 607 | (100 | %) | 500 | 1,557 | (68 | %) | ||||||
| Non-interest Expense | 19,165 | 15,013 | 28 | % | 53,654 | 40,323 | 33 | % | ||||||
| Net Income | 2,321 | 1,340 | 73 | % | 6,167 | 3,448 | 79 | % | ||||||
| Net Income per Diluted Share | $ | 0.04 | $ | 0.03 | 33 | % | $ | 0.11 | $ | 0.09 | 22 | % | ||
The Company reported net income of $2.3 million, or $0.04 per diluted share, for the three month period ended September 30, 2017, compared to net income of $1.3 million, or $0.03 per diluted share, for the three month period ended September 30, 2016. Net income for the nine month period ended September 30, 2017 was $6.2 million, or $0.11 per diluted share, compared to net income of $3.4 million, or $0.09 per diluted share, for the nine months ended September 30, 2016.
Total revenue increased by $4.9 million, or 26%, to $23.7 million for the three month period ended September 30, 2017, compared to $18.8 million for the three month period ended September 30, 2016. This increase is primarily attributable to higher interest income as a result of the strong growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion program. Revenue also increased due to mortgage banking income from the residential mortgage division which was acquired in July 2016.
Non-interest income increased to $5.8 million for the three month period ended September 30, 2017 compared to $5.1 million for the three month period ended September 30, 2016. This increase was due to $3.2 million in mortgage banking income, driven primarily by loan sales.
Non-interest expenses increased by $4.2 million, or 28%, to $19.2 million during the three month period ended September 30, 2017 compared to $15.0 million during the three months ended September 30, 2016. This increase was primarily driven by the addition of expenses related to the residential mortgage division. Salary and employee benefit costs were also higher at the Bank as a result of annual merit increases along with increased staffing levels related to our growth strategy. Two new stores were opened during the third quarter of 2017. The Company now has twenty-two stores store locations. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses.
Balance Sheet
The major components of the balance sheet are as follows (dollars in thousands):
|
Description |
09/30/17 |
09/30/16 |
% Change |
06/30/17 |
% Change | ||||||
| Total assets | $ | 2,141,563 | $ | 1,733,860 | 24 | % | $ | 2,043,487 | 5 | % | |
| Total loans (net) | 1,087,147 | 936,088 | 16 | % | 1,057,056 | 3 | % | ||||
| Total deposits | 1,885,405 | 1,582,232 | 19 | % | 1,732,431 | 9 | % | ||||
| Total core deposits | 1,879,840 | 1,581,967 | 19 | % | 1,731,866 | 9 | % | ||||
Total assets increased by $407.7 million, or 24%, as of September 30, 2017 when compared to September 30, 2016. Deposits grew by $303.2 million to $1.9 billion as of September 30, 2017 compared to $1.6 billion as of September 30, 2016. The number of deposit accounts has grown by 35% 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.”
Core Deposits
Core deposits by type of account are as follows (dollars in thousands):
|
Description |
09/30/17 |
09/30/16 |
% Change |
06/30/17 |
% Change |
3rd Qtr 2017 Cost of Funds |
|||||||
| Demand noninterest-bearing | $ | 398,794 | $ | 302,372 | 32 | % | $ | 370,270 | 8 | % | 0.00 | % | |
| Demand interest-bearing | 745,878 | 587,197 | 32 | % | 647,501 | 15 | % | 0.44 | % | ||||
| Money market and savings | 619,265 | 583,536 | 6 | % | 607,859 | 2 | % | 0.51 | % | ||||
| Certificates of deposit | 115,903 | 108,862 | 6 | % | 106,236 | 9 | % | 1.13 | % | ||||
| Total core deposits | $ | 1,879,840 | $ | 1,581,967 | 19 | % | $ | 1,731,866 | 9 | % | 0.41 | % | |
Core deposits increased to $1.9 billion at September 30, 2017 compared to $1.6 billion at September 30, 2016 as the Company moves forward with its growth strategy to increase the number of stores and expand its customer-centric banking model which drives the gathering of low-cost, core deposits. The Company recognized strongest growth in demand deposit accounts on a year to year basis as a result of the successful execution of its strategy.
Lending
Loans by type are as follows (dollars in thousands):
|
Description |
09/30/17 |
% of Total | 09/30/16 | % of Total |
06/30/17 |
% of Total |
||||||||
| Commercial real estate | $ | 415,532 | 38 | % | $ | 376,466 | 40 | % | $ | 412,695 | 39 | % | ||
| Construction and land development | 93,657 | 8 | % | 48,983 | 5 | % | 83,571 | 8 | % | |||||
| Commercial and industrial | 163,085 | 15 | % | 186,126 | 20 | % | 176,949 | 16 | % | |||||
| Owner occupied real estate | 297,880 | 27 | % | 268,435 | 28 | % | 285,479 | 27 | % | |||||
| Consumer and other | 71,867 | 7 | % | 58,622 | 6 | % | 68,530 | 6 | % | |||||
| Residential mortgage | 53,384 | 5 | % | 6,909 | 1 | % | 39,286 | 4 | % | |||||
| Gross loans | $ | 1,095,405 | 100 | % | $ | 945,541 | 100 | % | $ | 1,066,510 | 100 | % | ||
Gross loans increased by $149.9 million, or 16%, to $1.1 billion at September 30, 2017 compared to $945.5 million at September 30, 2016 as a result of the steady growth in quality loan demand over the last twelve months and continued success with the relationship banking model. The Company experienced strong growth across almost every loan category.
Asset Quality
The Company’s non-performing asset balances and asset quality ratios are highlighted below:
| Three Months Ended | |||||||
| 09/30/17 | 06/30/17 | 09/30/16 | |||||
| Non-performing assets / capital and reserves | 10 | % | 12 | % | 23 | % | |
| Non-performing assets / total assets | 1.07 | % | 1.41 | % | 1.72 | % | |
| Quarterly net loan charge-offs / average loans | 0.43 | % | 0.09 | % | (0.04 | %) | |
| Allowance for loan losses / gross loans | 0.75 | % | 0.89 | % | 1.00 | % | |
| Allowance for loan losses / non-performing loans | 60 | % | 50 | % | 49 | % | |
The percentage of non-performing assets to total assets decreased to 1.07% at September 30, 2017, compared to 1.72% at September 30, 2016. One of the Company’s largest non-performing loan relationships has been restructured and returned to performing status during 2017. The ratio of non-performing assets to capital and reserves decreased to 10% at September 30, 2017 compared to 23% at September 30, 2016 primarily as a result of the completion of the common stock offering during the fourth quarter of 2016.
Capital
The Company’s capital ratios at September 30, 2017 were as follows:
| Actual 09/30/17 |
Regulatory Guidelines “Well Capitalized” |
||||
| Leverage Ratio | 11.80 | % | 5.00 | % | |
| Common Equity Ratio | 15.55 | % | 6.50 | % | |
| Tier 1 Risk Based Capital | 17.06 | % | 8.00 | % | |
| Total Risk Based Capital | 17.64 | % | 10.00 | % | |
| Tangible Common Equity | 10.31 | % | n/a | ||
Total shareholders’ equity increased to $225.2 million at September 30, 2017 compared to $119.7 million at September 30, 2016. Book value per common share increased to $3.95 at September 30, 2017 compared to $3.16 per share at September 30, 2016. The Company completed a common stock offering in the amount of $100 million during the fourth quarter of 2016.
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 two store locations located in the Greater Philadelphia and Southern New Jersey market place. Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with the most convenient hours compared to any bank in its market. The Bank offers free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint Network. The Bank also offers a wide range of residential mortgage products through its wholly owned subsidiary, 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, including those related to our Five Year Strategic Goals, 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, 2016 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) | 2017 | 2017 | 2016 | ||||||||||||||
| ASSETS | |||||||||||||||||
| Cash and due from banks | $ | 27,181 | $ | 28,247 | $ | 23,061 | |||||||||||
| Interest-bearing deposits and federal funds sold | 71,601 | 59,750 | 126,980 | ||||||||||||||
| Total cash and cash equivalents | 98,782 | 87,997 | 150,041 | ||||||||||||||
| Securities – Available for sale | 377,757 | 345,182 | 299,385 | ||||||||||||||
| Securities – Held to maturity | 416,987 | 409,373 | 220,470 | ||||||||||||||
| Restricted stock | 1,678 | 3,878 | 1,366 | ||||||||||||||
| Total investment securities | 796,422 | 758,433 | 521,221 | ||||||||||||||
| Loans held for sale | 41,711 | 29,547 | 29,715 | ||||||||||||||
| Loans receivable | 1,095,405 | 1,066,510 | 945,541 | ||||||||||||||
| Allowance for loan losses | (8,258 | ) | (9,454 | ) | (9,453 | ) | |||||||||||
| Net loans | 1,087,147 | 1,057,056 | 936,088 | ||||||||||||||
| Premises and equipment | 71,715 | 65,471 | 55,573 | ||||||||||||||
| Other real estate owned | 9,169 | 9,909 | 10,271 | ||||||||||||||
| Other assets | 36,617 | 35,074 | 30,951 | ||||||||||||||
| Total Assets | $ | 2,141,563 | $ | 2,043,487 | $ | 1,733,860 | |||||||||||
| LIABILITIES | |||||||||||||||||
| Non-interest bearing deposits | $ | 398,794 | $ | 370,270 | $ | 302,372 | |||||||||||
| Interest bearing deposits | 1,486,611 | 1,362,161 | 1,279,860 | ||||||||||||||
| Total deposits | 1,885,405 | 1,732,431 | 1,582,232 | ||||||||||||||
| Short-term borrowings | – | 55,000 | – | ||||||||||||||
| Subordinated debt | 21,663 | 21,656 | 21,874 | ||||||||||||||
| Other liabilities | 9,293 | 12,079 | 10,102 | ||||||||||||||
| Total Liabilities | 1,916,361 | 1,821,166 | 1,614,208 | ||||||||||||||
| SHAREHOLDERS’ EQUITY | |||||||||||||||||
| Common stock – $0.01 par value | 575 | 575 | 384 | ||||||||||||||
| Additional paid-in capital | 255,752 | 255,215 | 153,887 | ||||||||||||||
| Accumulated deficit | (21,721 | ) | (24,042 | ) | (29,385 | ) | |||||||||||
| Treasury stock at cost | (3,725 | ) | (3,725 | ) | (3,725 | ) | |||||||||||
| Stock held by deferred compensation plan | (183 | ) | (183 | ) | (183 | ) | |||||||||||
| Accumulated other comprehensive loss | (5,496 | ) | (5,519 | ) | (1,326 | ) | |||||||||||
| Total Shareholders’ Equity | 225,202 | 222,321 | 119,652 | ||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,141,563 | $ | 2,043,487 | $ | 1,733,860 | |||||||||||
| Republic First Bancorp, Inc. | |||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| INTEREST INCOME | |||||||||||||||||||
| Interest and fees on loans | $ | 12,989 | $ | 12,330 | $ | 10,707 | $ | 36,518 | $ | 30,961 | |||||||||
| Interest and dividends on investment securities | 4,752 | 4,931 | 2,764 | 14,610 | 8,331 | ||||||||||||||
| Interest on other interest earning assets | 181 | 70 | 149 | 312 | 299 | ||||||||||||||
| Total interest income | 17,922 | 17,331 | 13,620 | 51,440 | 39,591 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Interest on deposits | 1,872 | 1,722 | 1,531 | 5,196 | 4,019 | ||||||||||||||
| Interest on borrowed funds | 338 | 342 | 303 | 1,046 | 898 | ||||||||||||||
| Total interest expense | 2,210 | 2,064 | 1,834 | 6,242 | 4,917 | ||||||||||||||
| Net interest income | 15,712 | 15,267 | 11,786 | 45,198 | 34,674 | ||||||||||||||
| Provision for loan losses | – | 500 | 607 | 500 | 1,557 | ||||||||||||||
| Net interest income after provision for loan losses | 15,712 | 14,767 | 11,179 | 44,698 | 33,117 | ||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||
| Service fees on deposit accounts | 1,067 | 907 | 686 | 2,820 | 1,910 | ||||||||||||||
| Mortgage banking income | 3,159 | 2,971 | 2,405 | 8,551 | 2,405 | ||||||||||||||
| Gain on sale of SBA loans | 831 | 796 | 1,630 | 2,315 | 4,212 | ||||||||||||||
| Gain (loss) on sale of investment securities | – | (61 | ) | 2 | (61 | ) | 656 | ||||||||||||
| Other non-interest income | 721 | 356 | 419 | 1,460 | 1,402 | ||||||||||||||
| Total non-interest income | 5,778 | 4,969 | 5,142 | 15,085 | 10,585 | ||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||
| Salaries and employee benefits | 9,829 | 9,389 | 7,731 | 27,800 | 20,334 | ||||||||||||||
| Occupancy and equipment | 3,064 | 2,873 | 2,586 | 8,827 | 7,203 | ||||||||||||||
| Legal and professional fees | 610 | 633 | 510 | 1,924 | 1,479 | ||||||||||||||
| Foreclosed real estate | 746 | 612 | 702 | 1,704 | 1,610 | ||||||||||||||
| Regulatory assessments and related fees | 355 | 324 | 296 | 1,008 | 1,011 | ||||||||||||||
| Other operating expenses | 4,561 | 3,854 | 3,188 | 12,391 | 8,686 | ||||||||||||||
| Total non-interest expense | 19,165 | 17,685 | 15,013 | 53,654 | 40,323 | ||||||||||||||
| Income before benefit for income taxes | 2,325 | 2,051 | 1,308 | 6,129 | 3,379 | ||||||||||||||
| Provision (benefit) for income taxes | 4 | (8 | ) | (32 | ) | (38 | ) | (69 | ) | ||||||||||
| Net income | $ | 2,321 | $ | 2,059 | $ | 1,340 | $ | 6,167 | $ | 3,448 | |||||||||
| Net Income per Common Share | |||||||||||||||||||
| Basic | $ | 0.04 | $ | 0.04 | $ | 0.04 | $ | 0.11 | $ | 0.09 | |||||||||
| Diluted | $ | 0.04 | $ | 0.04 | $ | 0.03 | $ | 0.11 | $ | 0.09 | |||||||||
| Average Common Shares Outstanding | |||||||||||||||||||
| Basic | 56,974 | 56,945 | 37,916 | 56,915 | 37,879 | ||||||||||||||
| Diluted | 58,314 | 58,301 | 38,375 | 58,213 | 38,355 | ||||||||||||||
| 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, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||
| 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 | $ | 56,316 | $ | 181 | 1.28 | % | $ | 28,691 | $ | 70 | 0.98 | % | $ | 114,260 | $ | 149 | 0.52 | % | |||||||||
| Securities | 765,678 | 4,805 | 2.51 | % | 782,121 | 5,013 | 2.56 | % | 477,601 | 2,858 | 2.39 | % | |||||||||||||||
| Loans receivable | 1,115,920 | 13,136 | 4.67 | % | 1,065,313 | 12,470 | 4.70 | % | 966,106 | 10,848 | 4.47 | % | |||||||||||||||
| Total interest-earning assets | 1,937,914 | 18,122 | 3.71 | % | 1,876,125 | 17,553 | 3.75 | % | 1,557,967 | 13,855 | 3.54 | % | |||||||||||||||
| Other assets | 122,513 | 111,493 | 103,826 | ||||||||||||||||||||||||
| Total assets | $ | 2,060,427 | $ | 1,987,618 | $ | 1,661,793 | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand non interest-bearing | $ | 381,380 | $ | 355,325 | $ | 282,571 | |||||||||||||||||||||
| Demand interest-bearing | 692,423 | 772 | 0.44 | % | 659,859 | 695 | 0.42 | % | 533,222 | 553 | 0.41 | % | |||||||||||||||
| Money market & savings | 613,506 | 788 | 0.51 | % | 602,710 | 732 | 0.49 | % | 583,256 | 677 | 0.46 | % | |||||||||||||||
| Time deposits | 109,878 | 312 | 1.13 | % | 105,820 | 295 | 1.12 | % | 104,701 | 301 | 1.14 | % | |||||||||||||||
| Total deposits | 1,797,187 | 1,872 | 0.41 | % | 1,723,714 | 1,722 | 0.40 | % | 1,503,750 | 1,531 | 0.41 | % | |||||||||||||||
| Total interest-bearing deposits | 1,415,807 | 1,872 | 0.52 | % | 1,368,389 | 1,722 | 0.50 | % | 1,221,179 | 1,531 | 0.50 | % | |||||||||||||||
| Other borrowings | 30,220 | 338 | 4.44 | % | 35,119 | 342 | 3.91 | % | 29,938 | 303 | 4.03 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,446,027 | 2,210 | 0.61 | % | 1,403,508 | 2,064 | 0.59 | % | 1,251,117 | 1,834 | 0.58 | % | |||||||||||||||
| Total deposits and | |||||||||||||||||||||||||||
| other borrowings | 1,827,407 | 2,210 | 0.48 | % | 1,758,833 | 2,064 | 0.47 | % | 1,533,688 | 1,834 | 0.48 | % | |||||||||||||||
| Non interest-bearing liabilities | 9,179 | 8,345 | 9,247 | ||||||||||||||||||||||||
| Shareholders’ equity | 223,841 | 220,440 | 118,858 | ||||||||||||||||||||||||
| Total liabilities and | |||||||||||||||||||||||||||
| shareholders’ equity | $ | 2,060,427 | $ | 1,987,618 | $ | 1,661,793 | |||||||||||||||||||||
| Net interest income | $ | 15,912 | $ | 15,489 | $ | 12,021 | |||||||||||||||||||||
| Net interest spread | 3.10 | % | 3.16 | % | 2.96 | % | |||||||||||||||||||||
| Net interest margin | 3.26 | % | 3.31 | % | 3.07 | % | |||||||||||||||||||||
| 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, 2017 | September 30, 2016 | |||||||||||||||||
| 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 | $ | 36,431 | $ | 312 | 1.15 | % | $ | 78,094 | $ | 299 | 0.51 | % | |||||||
| Securities | 785,121 | 14,850 | 2.52 | % | 458,496 | 8,615 | 2.51 | % | |||||||||||
| Loans receivable | 1,063,581 | 36,944 | 4.64 | % | 925,110 | 31,339 | 4.53 | % | |||||||||||
| Total interest-earning assets | 1,885,133 | 52,106 | 3.70 | % | 1,461,700 | 40,253 | 3.68 | % | |||||||||||
| Other assets | 112,018 | 95,054 | |||||||||||||||||
| Total assets | $ | 1,997,151 | $ | 1,556,754 | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Demand non interest-bearing | $ | 355,432 | $ | 270,503 | |||||||||||||||
| Demand interest-bearing | 657,722 | 2,075 | 0.42 | % | 476,134 | 1,471 | 0.41 | % | |||||||||||
| Money market & savings | 607,822 | 2,218 | 0.49 | % | 572,347 | 1,923 | 0.45 | % | |||||||||||
| Time deposits | 107,881 | 903 | 1.12 | % | 82,738 | 625 | 1.01 | % | |||||||||||
| Total deposits | 1,728,857 | 5,196 | 0.40 | % | 1,401,722 | 4,019 | 0.38 | % | |||||||||||
| Total interest-bearing deposits | 1,373,425 | 5,196 | 0.51 | % | 1,131,219 | 4,019 | 0.47 | % | |||||||||||
| Other borrowings | 39,408 | 1,046 | 3.55 | % | 29,947 | 898 | 4.01 | % | |||||||||||
| Total interest-bearing liabilities | 1,412,833 | 6,242 | 0.59 | % | 1,161,166 | 4,917 | 0.57 | % | |||||||||||
| Total deposits and | |||||||||||||||||||
| other borrowings | 1,768,265 | 6,242 | 0.47 | % | 1,431,669 | 4,917 | 0.46 | % | |||||||||||
| Non interest-bearing liabilities | 8,628 | 7,957 | |||||||||||||||||
| Shareholders’ equity | 220,258 | 117,128 | |||||||||||||||||
| Total liabilities and | |||||||||||||||||||
| shareholders’ equity | $ | 1,997,151 | $ | 1,556,754 | |||||||||||||||
| Net interest income | $ | 45,864 | $ | 35,336 | |||||||||||||||
| Net interest spread | 3.11 | % | 3.11 | % | |||||||||||||||
| Net interest margin | 3.25 | % | 3.23 | % | |||||||||||||||
| Note: The above tables are presented on a tax equivalent basis. | |||||||||||||||||||
| Republic First Bancorp, Inc. | |||||||||||||||||||||||
| Summary of Allowance for Loan Losses and Other Related Data | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Year | |||||||||||||||||||||||
| Three months ended | ended | Nine months ended | |||||||||||||||||||||
| September 30, | June 30, | September 30, | Dec 31, | September 30, | September 30, | ||||||||||||||||||
| (dollars in thousands) | 2017 | 2017 | 2016 | 2016 | 2017 | 2016 | |||||||||||||||||
| Balance at beginning of period | $ | 9,454 | $ | 9,181 | $ | 8,761 | $ | 8,703 | $ | 9,155 | $ | 8,703 | |||||||||||
| Provision charged to operating expense | – | 500 | 607 | 1,557 | 500 | 1,557 | |||||||||||||||||
| 9,454 | 9,681 | 9,368 | 10,260 | 9,655 | 10,260 | ||||||||||||||||||
| Recoveries on loans charged-off: | |||||||||||||||||||||||
| Commercial | 52 | 30 | 88 | 169 | 118 | 168 | |||||||||||||||||
| Consumer | – | 1 | – | 2 | 1 | – | |||||||||||||||||
| Total recoveries | 52 | 31 | 88 | 171 | 119 | 168 | |||||||||||||||||
| Loans charged-off: | |||||||||||||||||||||||
| Commercial | (1,243 | ) | (253 | ) | (3 | ) | (1,265 | ) | (1,504 | ) | (975 | ) | |||||||||||
| Consumer | (5 | ) | (5 | ) | – | (11 | ) | (12 | ) | – | |||||||||||||
| Total charged-off | (1,248 | ) | (258 | ) | (3 | ) | (1,276 | ) | (1,516 | ) | (975 | ) | |||||||||||
| Net charge-offs | (1,196 | ) | (227 | ) | 85 | (1,105 | ) | (1,397 | ) | (807 | ) | ||||||||||||
| Balance at end of period | $ | 8,258 | $ | 9,454 | $ | 9,453 | $ | 9,155 | $ | 8,258 | $ | 9,453 | |||||||||||
| Net charge-offs as a percentage of | |||||||||||||||||||||||
| average loans outstanding | 0.43 | % | 0.09 | % | (0.04 | %) | 0.12 | % | 0.18 | % | 0.12 | % | |||||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||||||
| of period-end loans | 0.75 | % | 0.89 | % | 1.00 | % | 0.95 | % | 0.75 | % | 1.00 | % | |||||||||||
| 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) | 2017 | 2017 | 2017 | 2016 | 2016 | |||||||||||||||||||
| Non-accrual loans: | ||||||||||||||||||||||||
| Commercial real estate | $ | 10,140 | $ | 17,703 | $ | 17,695 | $ | 17,758 | $ | 18,331 | ||||||||||||||
| Consumer and other | 880 | 817 | 834 | 836 | 1,007 | |||||||||||||||||||
| Total non-accrual loans | 11,020 | 18,520 | 18,529 | 18,594 | 19,338 | |||||||||||||||||||
| Loans past due 90 days or more | ||||||||||||||||||||||||
| and still accruing | 2,730 | 293 | – | 302 | 153 | |||||||||||||||||||
| Total non-performing loans | 13,750 | 18,813 | 18,529 | 18,896 | 19,491 | |||||||||||||||||||
| Other real estate owned | 9,169 | 9,909 | 9,944 | 10,174 | 10,271 | |||||||||||||||||||
| Total non-performing assets | $ | 22,919 | $ | 28,722 | $ | 28,473 | $ | 29,070 | $ | 29,762 | ||||||||||||||
| Non-performing loans to total loans | 1.26 | % | 1.76 | % | 1.81 | % | 1.96 | % | 2.06 | % | ||||||||||||||
| Non-performing assets to total assets | 1.07 | % | 1.41 | % | 1.45 | % | 1.51 | % | 1.72 | % | ||||||||||||||
| Non-performing loan coverage | 60.06 | % | 50.25 | % | 49.55 | % | 48.45 | % | 48.50 | % | ||||||||||||||
| Allowance for loan losses as a percentage | ||||||||||||||||||||||||
| of total period-end loans | 0.75 | % | 0.89 | % | 0.89 | % | 0.95 | % | 1.00 | % | ||||||||||||||
| Non-performing assets / capital plus | ||||||||||||||||||||||||
| allowance for loan losses | 9.82 | % | 12.39 | % | 12.52 | % | 12.97 | % | 23.05 | % | ||||||||||||||