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Section 1: 8-K (REPUBLIC FIRST BANCORP, INC. FORM 8-K)



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 21, 2017
REPUBLIC FIRST BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania
000-17007
23-2486815
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
     
50 South 16th Street, Suite 2400, Philadelphia, PA  19102
(Address of principal executive offices)                           (Zip Code)
 

Registrant's telephone number, including area code:  (215) 735-4422
N/A
Former name, former address, and former fiscal year, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
 


 
Item 2.02 Results of Operations and Financial Condition.
On July 20, 2017, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended June 30, 2017.  The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this report, including the exhibit attached hereto, is furnished solely pursuant to Item 2.02 of this Form 8-K.  Consequently, it is not deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.  It may only be incorporated by reference in another filing under the Exchange Act or Securities Act of 1933 if such subsequent filing specifically references this Form 8-K.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
99.1
 
 
 


 
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
REPUBLIC FIRST BANCORP, INC.
   
   
   
Date: July 21, 2017
By: /s/ Frank A. Cavallaro
 
Frank A. Cavallaro
 
Executive Vice President and
Chief Financial Officer
 
 
 


 
EXHIBIT INDEX

Exhibit No. Description

99.1


 
 


(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)


 

 
News Release
Republic First Bancorp, Inc.
July 20, 2017
 
 
 
 
 
REPUBLIC FIRST BANCORP, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
NET INCOME INCREASES 101% - ASSETS GROW 29% - TWO NEW STORES OPEN

Philadelphia, PA, July 20, 2017 (PR Newswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2017.

   
Three Months Ended
 
($ in millions, except per share data)
 
06/30/17
   
06/30/16
   
% Change
 
                   
Assets
 
$
2,043.5
   
$
1,581.6
     
29
%
Loans
   
1,066.5
     
929.8
     
15
%
Deposits
   
1,732.4
     
1,434.3
     
21
%
Total Revenue
 
$
22.3
   
$
16.2
     
37
%
Net Income
   
2.1
     
1.0
     
101
%
Net Income per Share
 
$
0.04
   
$
0.03
     
33
%


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

 "The Power of Red is Back expansion campaign continues to deliver strong results. Our ability to offer an exceptional in-store experience combined with terrific on-line and mobile banking options is creating new fans throughout our footprint, driving strong growth in assets, loans and deposits. In addition, we continue to improve profitability on a consistent basis despite the significant investments required to proceed with our growth strategy."


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

 "Our growth and expansion plan continues to produce tremendous results. The recent grand openings in Cherry Hill and Sicklerville were met with overwhelming acceptance from new FANS in those communities. With additional sites in Medford, NJ and Fairless Hills, PA scheduled to open in the coming weeks the momentum behind our strategy continues to build. The results are a testament to the strength of our model and the unmatched commitment to customer service by every member of the Republic Bank Team."
 


 

Highlights for the Period Ended June 30, 2017

·
Total assets increased by $462 million, or 29%, to $2.0 billion as of June 30, 2017 compared to $1.6 billion as of June 30, 2016.

·
Total deposits increased by $298 million, or 21%, to $1.7 billion as of June 30, 2017 compared to $1.4 billion as of June 30, 2016.

·
Net income increased by 101% to $2.1 million, or $0.04 per share, for the three months ended June 30, 2017 compared to $1.0 million, or $0.03 per share, for the three months ended June 30, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy.

·
New stores were recently opened in Cherry Hill and Sicklerville, NJ bringing the total store count to twenty-one. Stores in Medford, NJ and Fairless Hills, PA are currently under construction and scheduled to open during the third quarter. There are also several additional sites in various stages of development for future store locations.

·
Total loans grew $137 million, or 15%, to $1.1 billion as of June 30, 2017 compared to $930 million at June 30, 2016.

·
The Company's residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $100 million in loans during the second quarter of 2016.

·
SBA lending continued to be an important part of the Company's lending strategy. More than $11 million in new SBA loans were originated during the three month period ended June 30, 2017. Our team is ranked among the Top 5 SBA Lenders in the New Jersey and southeastern Pennsylvania market based on the dollar volume of loan originations.

·
The Company's Total Risk-Based Capital ratio was 17.94% and Tier I Leverage Ratio was 12.09% at June 30, 2017.

·
Book value per common share increased to $3.90 as of June 30, 2017 compared to $3.13 as of June 30, 2016.

 
2

 

Income Statement

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

   
Three Months Ended
   
Six Months Ended
 
   
06/30/17
   
06/30/16
   
% Change
 
06/30/17
   
06/30/16
   
% Change
                                     
Total Revenue
 
$
22,300
   
$
16,240
     
37
%
 
$
42,825
   
$
31,414
     
36
%
Provision for Loan Losses
   
500
     
650
     
(23
%)
   
500
     
950
     
(47
%)
Non-interest Expenses
   
17,685
     
12,967
     
36
%
   
34,489
     
25,310
     
36
%
Net Income
   
2,059
     
1,023
     
101
%
   
3,846
     
2,108
     
82
%
Net Income per Share
 
$
0.04
   
$
0.03
     
33
%
 
$
0.07
   
$
0.05
     
40
%


The Company reported net income of $2.1 million, or $0.04 per share, for the three month period ended June 30, 2017, compared to net income of $1.0 million, or $0.03 per share, for the three month period ended June 30, 2016. Net income for the six month period ended June 30, 2017 was $3.8 million, or $0.07 per share, compared to net income of $2.1 million, or $0.05 per share, for the six months ended June 30, 2016.

Total revenue increased by $6.1 million, or 37%, to $22.3 million for the three month period ended June 30, 2017, compared to $16.2 million for the three month period ended June 30, 2016.  This increase is primarily attributable to revenue from the residential mortgage division which was acquired in July 2016. Revenue also increased due 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.

Non-interest income increased to $5.0 million for the three month period ended June 30, 2017 compared to $3.0 million for the three month period ended June 30, 2016.  This increase was due to $3.0 million in mortgage banking income, driven primarily by loan sales.

Non-interest expenses increased by $4.7 million, or 36%, to $17.7 million during the three month period ended June 30, 2017 compared to $13.0 million during the three months ended June 30, 2016. This increase was mainly caused by the addition of expenses related to the residential mortgage division. Salaries and employee benefits were also higher at the Bank as a result of annual merit increases along with increased staffing levels related to our growth strategy of adding and relocating stores. Occupancy and equipment expenses associated with the growth and relocation strategy also contributed to the increase in non-interest expenses.
 
3

 
 
Balance Sheet

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

 
Description
 
06/30/17
 
06/30/16
% Change
 
03/31/17
% Change
           
Total assets
$ 2,043,487
$ 1,581,637
29%
$ 1,968,588
4%
Total loans (net)
1,057,056
920,993
15%
1,016,962
4%
Total deposits
1,732,431
1,434,251
21%
1,720,512
1%
Total core deposits
1,731,866
1,429,729
21%
1,720,245
1%


Total assets increased by $461.9 million, or 29%, as of June 30, 2017 when compared to June 30, 2016.  Deposits grew by $298.2 million to $1.7 billion as of June 30, 2017 compared to $1.4 billion as of June 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
 
 
06/30/17
 
 
06/30/16
 
%
Change
 
 
03/31/17
 
%
Change
2nd Qtr 2017 Cost of Funds
             
Demand noninterest-bearing
$ 370,270
$ 281,496
  32%
$ 364,278
     2%
0.00%
Demand interest-bearing
647,501
472,575
  37%
629,583
     3%
0.42%
Money market and savings
607,859
574,050
   6%
620,218
     (2%)
0.49%
Certificates of deposit
106,236
101,608
   5%
106,166
     -%
1.12%
Total core deposits
$ 1,731,866
$1,429,729
21%
$ 1,720,245
    1%
0.40%
             

Core deposits increased to $1.7 billion at June 30, 2017 compared to $1.4 billion at June 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 accounts on a year to year basis as a result of the successful execution of its strategy. On a linked quarter basis, a reduction in money market and savings balances in the second quarter of 2017 offset growth in the demand categories.
 
4


 
Lending

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

 
Description
 
06/30/17
% of
Total
 
06/30/16
% of
Total
 
03/31/17
% of
Total
             
Commercial real estate
$ 412,695
39%
$ 369,784
40%
$394,840
39%
Construction and land development
83,571
8%
40,462
4%
78,636
7%
Commercial and industrial
176,949
16%
199,149
21%
188,873
18%
Owner occupied real estate
285,479
27%
265,245
29%
273,996
27%
Consumer and other
68,530
6%
52,776
6%
67,146
7%
Residential mortgage
39,286
4%
2,338
0%
22,652
2%
Gross loans
$1,066,510
100%
$929,754
100%
$1,026,143
100%
             

Gross loans increased by $136.8 million, or 15%, to $1.1 billion at June 30, 2017 compared to $929.8 million at June 30, 2016 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 most loan categories.


Asset Quality

The Company's non-performing asset balances and asset quality ratios are highlighted below:

 
Three Months Ended
 
06/30/17
03/31/17
06/30/16
       
Non-performing assets / capital and reserves
12%
13%
24%
Non-performing assets / total assets
1.41%
1.45%
1.95%
Quarterly net loan charge-offs / average loans
0.09%
(0.01%)
0.40%
Allowance for loan losses / gross loans
0.89%
0.89%
0.94%
Allowance for loan losses / non-performing loans
50%
50%
47%

The percentage of non-performing assets to total assets decreased to 1.41% at June 30, 2017, compared to 1.95% at June 30, 2016.  The ratio of non-performing assets to capital and reserves decreased to 12% at June 30, 2017 compared to 24% at June 30, 2016 primarily as a result of the completion of the common stock offering during the fourth quarter of 2016.
 
5

 
 
Capital

The Company's capital ratios at June 30, 2017 were as follows:

 
Actual
06/30/17
Regulatory Guidelines
"Well Capitalized"
     
Leverage Ratio
  12.09%
5.00%
Common Equity Ratio
  15.71%
6.50%
Tier 1 Risk Based Capital
  17.26%
8.00%
Total Risk Based Capital
  17.94%
10.00%
Tangible Common Equity
  10.63%
n/a

Total shareholders' equity increased to $222.3 million at June 30, 2017 compared to $118.6 million at June 30, 2016. Book value per common share increased to $3.90 at June 30, 2017 compared to $3.13 per share at June 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 one stores 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.
 
6

 

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
 
 
 
7

 
 
 
Republic First Bancorp, Inc.
                 
Consolidated Balance Sheets
                 
(Unaudited)
                 
                   
   
June 30,
   
March 31,
   
June 30,
 
(dollars in thousands, except per share amounts)
 
2017
   
2017
   
2016
 
                   
ASSETS
                 
Cash and due from banks
 
$
28,247
   
$
25,119
   
$
18,561
 
Interest-bearing deposits and federal funds sold
   
59,750
     
11,472
     
93,211
 
Total cash and cash equivalents
   
87,997
     
36,591
     
111,772
 
                         
Securities - Available for sale
   
345,182
     
362,328
     
253,289
 
Securities - Held to maturity
   
409,373
     
421,850
     
199,074
 
Restricted stock
   
3,878
     
1,366
     
1,367
 
Total investment securities
   
758,433
     
785,544
     
453,730
 
                         
Loans held for sale
   
29,547
     
25,098
     
5,487
 
                         
Loans receivable
   
1,066,510
     
1,026,143
     
929,754
 
Allowance for loan losses
   
(9,454
)
   
(9,181
)
   
(8,761
)
Net loans
   
1,057,056
     
1,016,962
     
920,993
 
                         
Premises and equipment
   
65,471
     
58,926
     
53,617
 
Other real estate owned
   
9,909
     
9,944
     
11,974
 
Other assets
   
35,074
     
35,523
     
24,064
 
                         
Total Assets
 
$
2,043,487
   
$
1,968,588
   
$
1,581,637
 
                         
                         
                         
LIABILITIES
                       
Non-interest bearing deposits
 
$
370,270
   
$
364,278
   
$
281,496
 
Interest bearing deposits
   
1,362,161
     
1,356,234
     
1,152,755
 
Total deposits
   
1,732,431
     
1,720,512
     
1,434,251
 
                         
Short-term borrowings
   
55,000
     
-
     
-
 
Subordinated debt
   
21,656
     
21,648
     
21,866
 
Other liabilities
   
12,079
     
8,104
     
6,950
 
                         
Total Liabilities
   
1,821,166
     
1,750,264
     
1,463,067
 
                         
SHAREHOLDERS' EQUITY
                       
Common stock - $0.01 par value
   
575
     
574
     
384
 
Additional paid-in capital
   
255,215
     
254,403
     
153,476
 
Accumulated deficit
   
(24,042
)
   
(26,101
)
   
(30,725
)
Treasury stock at cost
   
(3,725
)
   
(3,725
)
   
(3,725
)
Stock held by deferred compensation plan
   
(183
)
   
(183
)
   
(183
)
Accumulated other comprehensive loss
   
(5,519
)
   
(6,644
)
   
(657
)
 
                       
Total Shareholders' Equity
   
222,321
     
218,324
     
118,570
 
                         
                         
Total Liabilities and Shareholders' Equity
 
$
2,043,487
   
$
1,968,588
   
$
1,581,637
 
                         
 
 
 
 

 
 
Republic First Bancorp, Inc.
                             
Consolidated Statements of Operations
                             
(Unaudited)
                             
                               
     
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
March 31,
   
June 30,
   
June 30,
   
June 30,
 
(in thousands, except per share amounts)
 
2017
   
2017
   
2016
   
2017
   
2016
 
                               
INTEREST INCOME
                             
Interest and fees on loans
 
$
12,330
   
$
11,199
   
$
10,323
   
$
23,529
   
$
20,254
 
Interest and dividends on investment securities
   
4,931
     
4,927
     
2,799
     
9,858
     
5,567
 
Interest on other interest earning assets
   
70
     
61
     
87
     
131
     
150
 
Total interest income
   
17,331
     
16,187
     
13,209
     
33,518
     
25,971
 
                                         
INTEREST EXPENSE
                                       
Interest on deposits
   
1,722
     
1,602
     
1,323
     
3,324
     
2,488
 
Interest on borrowed funds
   
342
     
366
     
289
     
708
     
595
 
Total interest expense
   
2,064
     
1,968
     
1,612
     
4,032
     
3,083
 
                                         
Net interest income
   
15,267
     
14,219
     
11,597
     
29,486
     
22,888
 
Provision for loan losses
   
500
     
-
     
650
     
500
     
950
 
                                         
Net interest income after provision for loan losses
   
14,767
     
14,219
     
10,947
     
28,986
     
21,938
 
                                         
NON-INTEREST INCOME
                                       
Service fees on deposit accounts
   
907
     
846
     
654
     
1,753
     
1,224
 
Mortgage banking income
   
2,971
     
2,421
     
-
     
5,392
     
-
 
Gain on sale of SBA loans
   
796
     
688
     
1,749
     
1,484
     
2,582
 
Gain (loss) on sale of investment securities
   
(61
)
   
-
     
358
     
(61
)
   
654
 
Other non-interest income
   
356
     
383
     
270
     
739
     
983
 
Total non-interest income
   
4,969
     
4,338
     
3,031
     
9,307
     
5,443
 
                                         
NON-INTEREST EXPENSE
                                       
Salaries and employee benefits
   
9,389
     
8,582
     
6,551
     
17,971
     
12,603
 
Occupancy and equipment
   
2,873
     
2,890
     
2,243
     
5,763
     
4,617
 
Legal and professional fees
   
633
     
681
     
519
     
1,314
     
968
 
Foreclosed real estate
   
612
     
346
     
323
     
958
     
908
 
Regulatory assessments and related fees
   
324
     
329
     
373
     
653
     
715
 
Other operating expenses
   
3,854
     
3,976
     
2,958
     
7,830
     
5,499
 
Total non-interest expense
   
17,685
     
16,804
     
12,967
     
34,489
     
25,310
 
                                         
Income before benefit for income taxes
   
2,051
     
1,753
     
1,011
     
3,804
     
2,071
 
                                         
Benefit for income taxes
   
(8
)
   
(34
)
   
(12
)
   
(42
)
   
(37
)
                                         
Net income
 
$
2,059
   
$
1,787
   
$
1,023
   
$
3,846
   
$
2,108
 
                                         
                                         
Net Income per Common Share
                                       
Basic
 
$
0.04
   
$
0.03
   
$
0.03
   
$
0.07
   
$
0.06
 
Diluted
 
$
0.04
   
$
0.03
   
$
0.03
   
$
0.07
   
$
0.05
 
                                         
Average Common Shares Outstanding
                                       
Basic
   
56,945
     
56,824
     
37,882
     
56,885
     
37,860
 
Diluted
   
58,301
     
58,049
     
38,422
     
58,165
     
38,344
 
                                         
 
 
 

 
 
Republic First Bancorp, Inc.
                                                 
Average Balances and Net Interest Income
                                           
(unaudited)
                                                     
                                                       
                                                       
                                                       
   
For the three months ended
   
For the three months ended
   
For the three months ended
 
(dollars in thousands)
 
June 30, 2017
   
March 31, 2017
   
June 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
 
$
28,691
   
$
70
     
0.98
%
 
$
23,929
   
$
61
     
1.03
%
 
$
72,517
   
$
87
     
0.48
%
Securities
   
782,121
     
5,013
     
2.56
%
   
808,029
     
5,032
     
2.49
%
   
460,161
     
2,895
     
2.52
%
Loans receivable
   
1,065,313
     
12,470
     
4.70
%
   
1,008,329
     
11,338
     
4.56
%
   
921,274
     
10,445
     
4.56
%
Total interest-earning assets
   
1,876,125
     
17,553
     
3.75
%
   
1,840,287
     
16,431
     
3.62
%
   
1,453,952
     
13,427
     
3.71
%
                                                                         
Other assets
   
111,493
                     
101,820
                     
93,555
                 
                                                                         
Total assets
 
$
1,987,618
                   
$
1,942,107
                   
$
1,547,507
                 
                                                                         
Interest-bearing liabilities:
                                                                       
                                                                         
Demand non interest-bearing
 
$
355,325
                   
$
329,015
                   
$
266,996
                 
Demand interest-bearing
   
659,859
     
695
     
0.42
%
   
620,090
     
608
     
0.40
%
   
481,994
     
503
     
0.42
%
Money market & savings
   
602,710
     
732
     
0.49
%
   
607,181
     
698
     
0.47
%
   
574,207
     
637
     
0.45
%
Time deposits
   
105,820
     
295
     
1.12
%
   
107,923
     
296
     
1.11
%
   
77,856
     
183
     
0.95
%
Total deposits
   
1,723,714
     
1,722
     
0.40
%
   
1,664,209
     
1,602
     
0.39
%
   
1,401,053
     
1,323
     
0.38
%
                                                                         
Total interest-bearing deposits
   
1,368,389
     
1,722
     
0.50
%
   
1,335,194
     
1,602
     
0.49
%
   
1,134,057
     
1,323
     
0.47
%
                                                                         
Other borrowings
   
35,119
     
342
     
3.91
%
   
53,138
     
366
     
2.79
%
   
22,476
     
289
     
5.17
%
                                                                         
                                                                         
Total interest-bearing liabilities
   
1,403,508
     
2,064
     
0.59
%
   
1,388,332
     
1,968
     
0.57
%
   
1,156,533
     
1,612
     
0.56
%
Total deposits and
                                                                       
  other borrowings
   
1,758,833
     
2,064
     
0.47
%
   
1,717,347
     
1,968
     
0.46
%
   
1,423,529
     
1,612
     
0.46
%
                                                                         
                                                                         
Non interest-bearing liabilities
   
8,345
                     
8,295
                     
6,871
                 
Shareholders' equity
   
220,440
                     
216,465
                     
117,107
                 
Total liabilities and
                                                                       
shareholders' equity
 
$
1,987,618
                   
$
1,942,107
                   
$
1,547,507
                 
                                                                         
Net interest income
         
$
15,489
                   
$
14,463
                   
$
11,815
         
Net interest spread
                   
3.16
%
                   
3.05
%
                   
3.15
%
                                                                         
Net interest margin
                   
3.31
%
                   
3.19
%
                   
3.27
%
                                                                         
                                                                         
                                                                         
Note: The above tables are presented on a tax equivalent basis.
                                         
                                                                         
 
 
 

 
Republic First Bancorp, Inc.
                               
Average Balances and Net Interest Income
                               
(unaudited)
                                   
                                     
                                     
                                     
   
For the six months ended
   
For the six months ended
 
(dollars in thousands)
 
June 30, 2017
   
June 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
 
$
26,323
   
$
131
     
1.00
%
 
$
59,813
   
$
150
     
0.50
%
Securities
   
795,003
     
10,045
     
2.53
%
   
448,837
     
5,757
     
2.57
%
Loans receivable
   
1,036,979
     
23,808
     
4.63
%
   
904,387
     
20,491
     
4.56
%
Total interest-earning assets
   
1,858,305
     
33,984
     
3.69
%
   
1,413,037
     
26,398
     
3.76
%
                                                 
Other assets
   
106,683
                     
90,620
                 
                                                 
Total assets
 
$
1,964,988
                   
$
1,503,657
                 
                                                 
Interest-bearing liabilities:
                                               
                                                 
Demand non interest-bearing
 
$
342,243
                   
$
264,403
                 
Demand interest-bearing
   
640,084
     
1,303
     
0.41
%
   
447,276
     
918
     
0.41
%
Money market & savings
   
604,933
     
1,430
     
0.48
%
   
566,833
     
1,246
     
0.44
%
Time deposits
   
106,866
     
591
     
1.12
%
   
71,635
     
324
     
0.91
%
Total deposits
   
1,694,126
     
3,324
     
0.40
%
   
1,350,147
     
2,488
     
0.37
%
                                                 
Total interest-bearing deposits
   
1,351,883
     
3,324
     
0.50
%
   
1,085,744
     
2,488
     
0.46
%
                                                 
Other borrowings
   
44,078
     
708
     
3.24
%
   
29,952
     
595
     
3.99
%
                                                 
                                                 
Total interest-bearing liabilities
   
1,395,961
     
4,032
     
0.58
%
   
1,115,696
     
3,083
     
0.56
%
Total deposits and
                                               
  other borrowings
   
1,738,204
     
4,032
     
0.47
%
   
1,380,099
     
3,083
     
0.45
%
                                                 
                                                 
Non interest-bearing liabilities
   
8,307
                     
7,211
                 
Shareholders' equity
   
218,477
                     
116,347
                 
Total liabilities and
                                               
shareholders' equity
 
$
1,964,988
                   
$
1,503,657
                 
                                                 
Net interest income
         
$
29,952
                   
$
23,315
         
Net interest spread
                   
3.11
%
                   
3.20
%
                                                 
Net interest margin
                   
3.25
%
                   
3.32
%
                                                 
                                                 
                                                 
Note: The above tables are presented on a tax equivalent basis.
                         
                                                 
 
 

 
 
Republic First Bancorp, Inc.
                                   
Summary of Allowance for Loan Losses and Other Related Data
                         
(unaudited)
                                   
                                     
                     
Year
             
   
Three months ended
   
ended
   
Six months ended
 
   
June 30,
   
March 31,
   
June 30,
   
Dec 31
   
June 30,
   
June 30,
 
(dollars in thousands)
 
2017
   
2017
   
2016
   
2016
   
2017
   
2016
 
                                     
                                     
Balance at beginning of period
 
$
9,181
   
$
9,155
   
$
9,029
   
$
8,703
   
$
9,155
   
$
8,703
 
                                                 
Provision charged to operating expense
   
500
     
-
     
650
     
1,557
     
500
     
950
 
     
9,681
     
9,155
     
9,679
     
10,260
     
9,655
     
9,653
 
                                                 
Recoveries on loans charged-off:
                                               
  Commercial
   
30
     
36
     
8
     
169
     
66
     
80
 
  Consumer
   
1
     
-
     
-
     
2
     
1
     
-
 
Total recoveries
   
31
     
36
     
8
     
171
     
67
     
80
 
                                                 
Loans charged-off:
                                               
  Commercial
   
(253
)
   
(8
)
   
(926
)
   
(1,265
)
   
(261
)
   
(972
)
  Consumer
   
(5
)
   
(2
)
   
-
     
(11
)
   
(7
)
   
-
 
                                                 
Total charged-off
   
(258
)
   
(10
)
   
(926
)
   
(1,276
)
   
(268
)
   
(972
)
                                                 
Net charge-offs
   
(227
)
   
26
     
(918
)
   
(1,105
)
   
(201
)
   
(892
)
                                                 
Balance at end of period
 
$
9,454
   
$
9,181
   
$
8,761
   
$
9,155
   
$
9,454
   
$
8,761
 
                                                 
                                                 
Net charge-offs as a percentage of
                                               
  average loans outstanding
   
0.09
%
   
-0.01
%
   
0.40
%
   
0.12
%
   
0.04
%
   
0.20
%
                                                 
Allowance for loan losses as a percentage
                                         
  of period-end loans
   
0.89
%
   
0.89
%
   
0.94
%
   
0.95
%
   
0.89
%
   
0.94
%
                                                 
 
 

 
 
Republic First Bancorp, Inc.
                             
Summary of Non-Performing Loans and Assets
                         
(unaudited)
                             
                               
   
June 30,
   
March 31,
   
December 31,
   
September 30,
   
June 30,
 
(dollars in thousands)
 
2017
   
2017
   
2016
   
2016
   
2016
 
                               
Non-accrual loans:
                             
  Commercial real estate
 
$
17,703
   
$
17,695
   
$
17,758
   
$
18,331
   
$
18,070
 
  Consumer and other
   
817
     
834
     
836
     
1,007
     
772
 
Total non-accrual loans
   
18,520
     
18,529
     
18,594
     
19,338
     
18,842
 
                                         
Loans past due 90 days or more
                                       
  and still accruing
   
293
     
-
     
302
     
153
     
-
 
                                         
Total non-performing loans
   
18,813
     
18,529
     
18,896
     
19,491
     
18,842
 
                                         
Other real estate owned
   
9,909
     
9,944
     
10,174
     
10,271
     
11,974
 
                                         
Total non-performing assets
 
$
28,722
   
$
28,473
   
$
29,070
   
$
29,762
   
$
30,816
 
                                         
                                         
Non-performing loans to total loans
   
1.76
%
   
1.81
%
   
1.96
%
   
2.06
%
   
2.03
%
                                         
Non-performing assets to total assets
   
1.41
%
   
1.45
%
   
1.51
%
   
1.72
%
   
1.95
%
                                         
Non-performing loan coverage
   
50.25
%
   
49.55
%
   
48.45
%
   
48.50
%
   
46.50
%
                                         
Allowance for loan losses as a percentage
                                       
  of total period-end loans
   
0.89
%
   
0.89
%
   
0.95
%
   
1.00
%
   
0.94
%
                                         
Non-performing assets / capital plus
                                       
   allowance for loan losses
   
12.39
%
   
12.52
%
   
12.97
%
   
23.05
%
   
24.20
%
                                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
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