Toggle SGML Header (+)


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): October 23, 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 October 23, 2017, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended September 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: October 23, 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)


 
Exhibit 99.1
 


 
 
 
News Release
Republic First Bancorp, Inc.
October 23, 2017

 
REPUBLIC FIRST BANCORP, INC. REPORTS THIRD QUARTER FINANCIAL RESULTS
NET INCOME INCREASES 73% - ASSETS GROW 24%

Philadelphia, PA, October 23, 2017 (PR 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.

 
2


 

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.
 
 
3

 
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.
 
 
4

 

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.
 
 
5


 
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.

 
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)
                 
                   
     
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
 
                         
 
 
8

 
 
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
 
                                         
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9

 
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.
                                         
 
 
 
10

 
 
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.
                         
                                                 
 
 
11

 
 
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
%
                                                 
 
 
 
 
 
12

 
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
%
                                         
 
 
 
 
13
(Back To Top)