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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): January 22, 2018
 
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))
 




Item 2.02 Results of Operations and Financial Condition.
 
On January 22, 2018, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended December 31, 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: January 22, 2018
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.
January 22, 2018

REPUBLIC FIRST BANCORP, INC. REPORTS 80% INCREASE IN NET INCOME
AND DEPOSIT GROWTH OF 23%

Philadelphia, PA, January 22, 2018 (GLOBE NEWSWIRE) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2017.
 
   
Twelve Months Ended
($ in millions, except per share data)
 
12/31/17
   
12/31/16
   
% Change
                   
Assets
 
$
2,322.3
   
$
1,923.9
     
21
%
Loans
   
1,162.3
     
965.0
     
20
%
Deposits
   
2,063.3
     
1,677.7
     
23
%
Total Revenue
 
$
90.9
   
$
69.5
     
31
%
Net Income
   
8.9
     
4.9
     
80
%
Net Income per Diluted Share
 
$
0.15
   
$
0.12
     
25
%

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

"2017 was another tremendous year for 'The Power of Red is Back' growth campaign. Deposits and loans continued to grow at exceptional rates. Our store network expanded to twenty-three convenient locations and we solidified our position as one of the top residential mortgage lenders in our market through the successful integration of the Oak Mortgage team. I am excited over the opportunities we see in 2018 and beyond to build on the success achieved to this point. We are clearly giving customers a reason to Love Their Bank Again."

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

"The momentum of our expansion strategy continues to build as we attract new FANS throughout our footprint. We believe we've put ourselves in perfect position to capitalize on opportunities that arise as our competition continues to alienate customers with declining levels of service, higher fees and fewer locations. In addition, the reduction in the corporate tax rate included in Tax Cuts and Jobs Act of 2017 will result in a significant benefit for us in the years to come. We intend on utilizing the savings generated by this Act to invest in our growth and expansion which will result in the creation of new jobs, improvements in technology and the ability to further contribute to the communities which we serve."
 
 
 

Highlights for the Period Ended December 31, 2017


·
Net income increased by 80% to $8.9 million, or $0.15 per share, for the twelve months ended December 31, 2017 compared to $4.9 million, or $0.12 per share, for the twelve months ended December 31, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy.

·
Net Income was $2.7 million, or $0.05 per share, in the fourth quarter of 2017 compared to $2.3 million, or $0.04 per share, in the third quarter of 2017 and $1.5 million, or $0.03 per share, in the fourth quarter of 2016. Earnings in the fourth quarter of 2017 were impacted two significant and infrequent events, as described below.

·
The Company reversed its deferred tax asset valuation allowance during the fourth quarter of 2017 resulting in an increase in net income of $2.9 million, or $0.05 per share, during the period. This entry factors in the impact of the new corporate tax rate under the Tax Cuts and Jobs Act signed into law on December 22, 2017.

·
Earnings in the fourth quarter of 2017 were also impacted by a $2.2 million write-down related to the Company's largest non-performing asset included in OREO. Management's decision to aggressively pursue a resolution for this asset resulted in the execution of an agreement of sale a required reduction in the carrying value.

·
Total deposits increased by $386 million, or 23%, to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016.

·
The fastest growing segment of the Company's deposit base is non-interest bearing demand deposits. These balances grew by 35% to $439 million during 2017.

·
New stores opened since the beginning of the "Power of Red is Back" expansion campaign are currently growing deposits at an average rate of $27 million per year. The average deposit growth for all stores over the last twelve months was approximately $20 million per store.

·
A new store was recently opened Fairless Hills, PA launching our expansion into Bucks County. Four new stores have been opened over the last twelve months, increasing the total store count to twenty-three locations. Six additional store openings are planned for 2018.

·
Total assets increased by $398 million, or 21%, to $2.3 billion as of December 31, 2017 compared to $1.9 billion as of December 31, 2016.

·
Total loans grew $197 million, or 20%, to $1.2 billion as of December 31, 2017 compared to $965 million at December 31, 2016.

·
Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.94% as of December 31, 2017 compared to 1.51% as of December 31, 2016.

·
The Company's residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Oak originated over $378 million in loans during 2017.
 
 
 
 
2

 
 
·
Meeting the needs of small business customers continued to be an important part of the Company's lending strategy. More than $51 million in new SBA loans were originated during 2017.
 
·
The Company's Total Risk-Based Capital ratio was 16.70% and Tier I Leverage Ratio was 10.64% at December 31, 2017.

·
Book value per common share increased to $3.97 as of December 31, 2017 compared to $3.79 as of December 31, 2016.

Income Statement

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

   
Three Months Ended
 
Twelve Months Ended
   
12/31/17
   
12/31/16
   
% Change
 
12/31/17
   
12/31/16
   
% Change
                                     
Total Revenue
 
$
24,421
   
$
19,363
     
26
%
 
$
90,946
   
$
69,539
     
31
%
Provision for Loan Losses
   
400
     
-
     
100
%
   
900
     
1,557
     
(42
%)
Non-interest Expense
   
21,622
     
15,970
     
35
%
   
75,276
     
56,293
     
34
%
Income (Loss) Before Taxes
   
(143
)
   
1,447
     
(110
%)
   
5,986
     
4,826
     
24
%
Provision (Benefit) for Taxes
   
(2,881
)
   
(50
)
   
n/
m
   
(2,919
)
   
(119
)
   
n/
m
Net Income
   
2,738
     
1,497
     
83
%
   
8,905
     
4,945
     
80
%
Net Income per Diluted Share
 
$
0.05
   
$
0.03
     
67
%
 
$
0.15
   
$
0.12
     
25
%

The Company reported net income of $2.7 million, or $0.05 per diluted share, for the three month period ended December 31, 2017, compared to net income of $1.5 million, or $0.03 per diluted share, for the three month period ended December 31, 2016. Net income for the twelve month period ended December 31, 2017 was $8.9 million, or $0.15 per diluted share, compared to net income of $4.9 million, or $0.12 per diluted share, for the twelve months ended December 31, 2016. Net income in the fourth quarter of 2017 was impacted by two significant and infrequent events described in the following paragraphs.

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law which included a reduction in the corporate tax rate from 35% to 21%. As a result of the change in the tax rate, the value of the Company's existing deferred tax assets will permanently decrease by $7.7 million. A charge for this impairment was recorded during the fourth quarter. However, the Company has carried a valuation allowance against its deferred tax assets for the last several years. During the fourth quarter, management determined that the valuation allowance was no longer required and recorded an entry to reverse the $10.6 million valuation allowance. The combination of these two entries resulted in the recognition of a net tax benefit and increase in earnings in the amount of $2.9 million during the fourth quarter.

3

Earnings in the fourth quarter were also impacted by a writedown of $2.2 million against the Company's largest non-performing asset. Management's decision to aggressively pursue a resolution for a property held in the other real estate owned portfolio resulted in the execution of an agreement of sale and a required reduction in the carrying value. Closing on the sale is expected to occur during the first quarter of 2018.

Total revenue increased by $5.1 million, or 26%, to $24.4 million for the three month period ended December 31, 2017, compared to $19.4 million for the three month period ended December 31, 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.

Non-interest income increased to $5.0 million for the three month period ended December 31, 2017 compared to $4.7 million for the three month period ended December 31, 2016.

Non-interest expenses increased by $5.7 million, or 35%, to $21.6 million during the three month period ended December 31, 2017 compared to $16.0 million during the three months ended December 31, 2016. This increase was primarily driven by the addition of expenses related to the "Power of Red is Back" growth and expansion strategy. Salary and employee benefit costs were higher at the Bank as a result of annual merit increases along with increased staffing levels related to our growth strategy. Three new stores were opened during 2017. The Company now has twenty-three store locations. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses. In addition, the writedown of $2.2 million related to an OREO property described earlier 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
 
12/31/17
   
12/31/16
   
% Change
 
09/30/17
   
% Change
                               
Total assets
 
$
2,322,347
   
$
1,923,931
     
21
%
 
$
2,141,563
     
8
%
Total loans (net)
   
1,153,679
     
955,817
     
21
%
   
1,087,147
     
6
%
Total deposits
   
2,063,295
     
1,677,670
     
23
%
   
1,885,405
     
9
%
Total core deposits
   
2,043,816
     
1,677,403
     
22
%
   
1,876,840
     
9
%


Total assets increased by $398 million, or 21%, as of December 31, 2017 when compared to December 31, 2016.  Deposits grew by $386 million to $2.1 billion as of December 31, 2017 compared to $1.7 billion as of December 31, 2016. Non-interest bearing demand deposit balances increased by 35% during 2017. The number of deposit accounts has also 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."

4

Core Deposits

Core deposits by type of account are as follows (dollars in thousands):

 
 
Description
 
12/31/17
   
12/31/16
   
%
Change
 
09/30/17
   
%
Change
 
4th Qtr 2017 Cost of Funds
                                     
Demand noninterest-bearing
 
$
438,500
   
$
324,912
     
35
%
 
$
398,794
     
10
%
   
0.00
%
Demand interest-bearing
   
807,736
     
605,950
     
33
%
   
745,878
     
8
%
   
0.48
%
Money market and savings
   
700,321
     
635,644
     
10
%
   
619,265
     
13
%
   
0.54
%
Certificates of deposit
   
97,259
     
110,897
     
(12
%)
   
112,903
     
(14
%)
   
1.04
%
Total core deposits
 
$
2,043,816
   
$
1,677,403
     
22
%
 
$
1,876,840
     
9
%
   
0.43
%
                                                 

Core deposits increased by 22% to $2.0 billion at December 31, 2017 compared to $1.7 billion at December 31, 2016 as the Company moves forward with its growth strategy to increase the number of stores and expand its banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. On a percentage basis, the Company recognized strongest growth in non-interest bearing demand deposit balances year over year as a result of the successful execution of its strategy.

Lending

Loan balances by type are as follows (dollars in thousands):

 
Description
 
12/31/17
   
% of
Total
 
12/31/16
   
% of
Total
 
09/30/17
   
% of
Total
                                     
Commercial real estate
 
$
433,304
     
37
%
 
$
378,519
     
40
%
 
$
415,532
     
38
%
Construction and land development
   
104,617
     
9
%
   
61,453
     
5
%
   
93,657
     
8
%
Commercial and industrial
   
173,343
     
15
%
   
174,744
     
20
%
   
163,085
     
15
%
Owner occupied real estate
   
309,838
     
27
%
   
276,986
     
28
%
   
297,880
     
27
%
Consumer and other
   
76,412
     
7
%
   
63,588
     
6
%
   
71,867
     
7
%
Residential mortgage
   
64,764
     
5
%
   
9,682
     
1
%
   
53,384
     
5
%
Gross loans
 
$
1,162,278
     
100
%
 
$
964,972
     
100
%
 
$
1,095,405
     
100
%
                                                 
 
 
 
5


 
Gross loans increased by $197 million, or 20%, to $1.2 billion at December 31, 2017 compared to $965 million at December 31, 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 strongest growth in commercial real estate, residential mortgages and the owner occupied categories.

Asset Quality

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

   
Three Months Ended
   
12/31/17
 
09/30/17
 
12/31/16
                   
Non-performing assets / capital and reserves
   
9
%
   
10
%
   
13
%
Non-performing assets / total assets
   
0.94
%
   
1.07
%
   
1.51
%
Quarterly net loan charge-offs / average loans
   
0.02
%
   
0.43
%
   
0.12
%
Allowance for loan losses / gross loans
   
0.74
%
   
0.75
%
   
0.95
%
Allowance for loan losses / non-performing loans
   
58
%
   
60
%
   
48
%

The percentage of non-performing assets to total assets decreased to 0.94% at December 31, 2017, compared to 1.51% at December 31, 2016. One of the Company's largest non-performing loan relationships has been restructured and returned to performing status during 2017. In addition, the Company's largest asset held in other real estate owned was written down during the fourth quarter of 2017 as a result of the Company's decision to aggressively pursue the sale of this asset.  The ratio of non-performing assets to capital and reserves decreased to 9% at December 31, 2017 compared to 13% at December 31, 2016.

Capital

The Company's capital ratios at December 31, 2017 were as follows:

 
Actual
12/31/17
Regulatory Guidelines
"Well Capitalized"
     
Leverage Ratio
  10.64%
5.00%
Common Equity Ratio
  14.75%
6.50%
Tier 1 Risk Based Capital
  16.13%
8.00%
Total Risk Based Capital
  16.70%
10.00%
Tangible Common Equity
    9.56%
n/a

Total shareholders' equity increased to $226 million at December 31, 2017 compared to $215 million at December 31, 2016. Book value per common share increased to $3.97 at December 31, 2017 compared to $3.79 per share at December 31, 2016.  The Company completed a common stock offering in the amount of $100 million during the fourth quarter of 2016.

6


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-three store locations 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, 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.

7

 
Source:
Republic First Bancorp, Inc.
 
 
Contact:
Frank A. Cavallaro, CFO
(215) 735-4422

 

 
8

 
Republic First Bancorp, Inc.
                 
Consolidated Balance Sheets
                 
(Unaudited)
                 
                   
   
December 31,
   
September 30,
   
December 31,
 
(dollars in thousands, except per share amounts)
 
2017
   
2017
   
2016
 
                   
ASSETS
                 
Cash and due from banks
 
$
36,073
   
$
27,181
   
$
19,830
 
Interest-bearing deposits and federal funds sold
   
25,869
     
71,601
     
14,724
 
Total cash and cash equivalents
   
61,942
     
98,782
     
34,554
 
                         
Securities - Available for sale
   
464,430
     
377,757
     
369,739
 
Securities - Held to maturity
   
472,213
     
416,987
     
432,499
 
Restricted stock
   
1,918
     
1,678
     
1,366
 
Total investment securities
   
938,561
     
796,422
     
803,604
 
                         
Loans held for sale
   
45,700
     
41,711
     
28,065
 
                         
Loans receivable
   
1,162,278
     
1,095,405
     
964,972
 
Allowance for loan losses
   
(8,599
)
   
(8,258
)
   
(9,155
)
Net loans
   
1,153,679
     
1,087,147
     
955,817
 
                         
Premises and equipment
   
74,947
     
71,715
     
57,040
 
Other real estate owned
   
6,966
     
9,169
     
10,174
 
Other assets
   
40,552
     
36,617
     
34,677
 
                         
Total Assets
 
$
2,322,347
   
$
2,141,563
   
$
1,923,931
 
                         
                         
                         
LIABILITIES
                       
Non-interest bearing deposits
 
$
438,500
   
$
398,794
   
$
324,912
 
Interest bearing deposits
   
1,624,795
     
1,486,611
     
1,352,758
 
Total deposits
   
2,063,295
     
1,885,405
     
1,677,670
 
                         
Subordinated debt
   
21,681
     
21,663
     
21,881
 
Other liabilities
   
10,911
     
9,293
     
9,327
 
                         
Total Liabilities
   
2,095,887
     
1,916,361
     
1,708,878
 
                         
SHAREHOLDERS' EQUITY
                       
Common stock - $0.01 par value
   
575
     
575
     
573
 
Additional paid-in capital
   
256,285
     
255,752
     
253,570
 
Accumulated deficit
   
(18,983
)
   
(21,721
)
   
(27,888
)
Treasury stock at cost
   
(3,725
)
   
(3,725
)
   
(3,725
)
Stock held by deferred compensation plan
   
(183
)
   
(183
)
   
(183
)
Accumulated other comprehensive loss
   
(7,509
)
   
(5,496
)
   
(7,294
)
                         
Total Shareholders' Equity
   
226,460
     
225,202
     
215,053
 
                         
                         
Total Liabilities and Shareholders' Equity
 
$
2,322,347
   
$
2,141,563
   
$
1,923,931
 
                         
 
 

Republic First Bancorp, Inc.
                             
Consolidated Statements of Operations
                             
(Unaudited)
                             
                               
   
Three Months Ended  
   
Twelve Months Ended
 
   
December 31,
   
September 30,
   
December 31,
   
December 31,
   
December 31,
 
(in thousands, except per share amounts)
 
2017
   
2017
   
2016
   
2017
   
2016
 
                               
INTEREST INCOME
                             
Interest and fees on loans
 
$
13,576
   
$
12,989
   
$
10,826
   
$
50,094
   
$
41,787
 
Interest and dividends on investment securities
   
5,568
     
4,752
     
3,636
     
20,178
     
11,967
 
Interest on other interest earning assets
   
265
     
181
     
174
     
577
     
473
 
Total interest income
   
19,409
     
17,922
     
14,636
     
70,849
     
54,227
 
                                         
INTEREST EXPENSE
                                       
Interest on deposits
   
2,222
     
1,872
     
1,650
     
7,418
     
5,669
 
Interest on borrowed funds
   
320
     
338
     
296
     
1,366
     
1,194
 
Total interest expense
   
2,542
     
2,210
     
1,946
     
8,784
     
6,863
 
                                         
Net interest income
   
16,867
     
15,712
     
12,690
     
62,065
     
47,364
 
Provision for loan losses
   
400
     
-
     
-
     
900
     
1,557
 
                                         
Net interest income after provision for loan losses
   
16,467
     
15,712
     
12,690
     
61,165
     
45,807
 
                                         
NON-INTEREST INCOME
                                       
Service fees on deposit accounts
   
1,084
     
1,067
     
748
     
3,904
     
2,658
 
Mortgage banking income
   
2,619
     
3,159
     
2,657
     
11,170
     
5,062
 
Gain on sale of SBA loans
   
1,063
     
831
     
769
     
3,378
     
4,981
 
Gain (loss) on sale of investment securities
   
(85
)
   
-
     
-
     
(146
)
   
656
 
Other non-interest income
   
331
     
721
     
553
     
1,791
     
1,955
 
Total non-interest income
   
5,012
     
5,778
     
4,727
     
20,097
     
15,312
 
                                         
NON-INTEREST EXPENSE
                                       
Salaries and employee benefits
   
10,159
     
9,829
     
8,268
     
37,959
     
28,602
 
Occupancy and equipment
   
2,947
     
3,064
     
2,424
     
11,774
     
9,627
 
Legal and professional fees
   
953
     
610
     
560
     
2,877
     
2,039
 
Foreclosed real estate
   
2,388
     
746
     
572
     
4,092
     
2,182
 
Regulatory assessments and related fees
   
359
     
355
     
402
     
1,367
     
1,413
 
Other operating expenses
   
4,816
     
4,561
     
3,744
     
17,207
     
12,430
 
Total non-interest expense
   
21,622
     
19,165
     
15,970
     
75,276
     
56,293
 
                                         
Income (loss) before benefit for income taxes
   
(143
)
   
2,325
     
1,447
     
5,986
     
4,826
 
                                         
Provision (benefit) for income taxes
   
(2,881
)
   
4
     
(50
)
   
(2,919
)
   
(119
)
                                         
Net income
 
$
2,738
   
$
2,321
   
$
1,497
   
$
8,905
   
$
4,945
 
                                         
                                         
Net Income per Common Share
                                       
Basic
 
$
0.05
   
$
0.04
   
$
0.03
   
$
0.16
   
$
0.13
 
Diluted
 
$
0.05
   
$
0.04
   
$
0.03
   
$
0.15
   
$
0.12
 
                                         
Average Common Shares Outstanding
                                       
Basic
   
56,988
     
56,974
     
43,456
     
56,933
     
39,281
 
Diluted
   
58,360
     
58,314
     
44,317
     
58,250
     
39,865
 
 
 
 

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)
 
December 31, 2017
 
September 30, 2017
 
December 31, 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
 
$
82,918
   
$
265
     
1.27
%
 
$
56,316
   
$
181
     
1.28
%
 
$
135,214
   
$
174
     
0.51
%
Securities
   
888,862
     
5,616
     
2.53
%
   
765,678
     
4,805
     
2.51
%
   
649,649
     
3,731
     
2.30
%
Loans receivable
   
1,171,771
     
13,743
     
4.65
%
   
1,115,920
     
13,136
     
4.67
%
   
970,391
     
10,965
     
4.50
%
Total interest-earning assets
   
2,143,551
     
19,624
     
3.63
%
   
1,937,914
     
18,122
     
3.71
%
   
1,755,254
     
14,870
     
3.37
%
                                                                         
Other assets
   
126,904
                     
122,513
                     
104,225
                 
                                                                         
Total assets
 
$
2,270,455
                   
$
2,060,427
                   
$
1,859,479
                 
                                                                         
Interest-bearing liabilities:
                                                                       
                                                                         
Demand non interest-bearing
 
$
421,841
                   
$
381,380
                   
$
325,495
                 
Demand interest-bearing
   
776,203
     
945
     
0.48
%
   
692,423
     
772
     
0.44
%
   
613,828
     
617
     
0.40
%
Money market & savings
   
693,684
     
942
     
0.54
%
   
613,506
     
788
     
0.51
%
   
629,646
     
716
     
0.45
%
Time deposits
   
120,067
     
335
     
1.11
%
   
109,878
     
312
     
1.13
%
   
110,488
     
317
     
1.14
%
Total deposits
   
2,011,795
     
2,222
     
0.44
%
   
1,797,187
     
1,872
     
0.41
%
   
1,679,457
     
1,650
     
0.39
%
                                                                         
Total interest-bearing deposits
   
1,589,954
     
2,222
     
0.55
%
   
1,415,807
     
1,872
     
0.52
%
   
1,353,962
     
1,650
     
0.48
%
                                                                         
Other borrowings
   
23,621
     
320
     
5.37
%
   
30,220
     
338
     
4.44
%
   
21,913
     
296
     
5.37
%
                                                                         
                                                                         
Total interest-bearing liabilities
   
1,613,575
     
2,542
     
0.63
%
   
1,446,027
     
2,210
     
0.61
%
   
1,375,875
     
1,946
     
0.56
%
Total deposits and
                                                                       
  other borrowings
   
2,035,416
     
2,542
     
0.50
%
   
1,827,407
     
2,210
     
0.48
%
   
1,701,370
     
1,946
     
0.46
%
                                                                         
                                                                         
Non interest-bearing liabilities
   
9,560
                     
9,179
                     
10,965
                 
Shareholders' equity
   
225,479
                     
223,841
                     
147,144
                 
Total liabilities and
                                                                       
shareholders' equity
 
$
2,270,455
                   
$
2,060,427
                   
$
1,859,479
                 
                                                                         
Net interest income
         
$
17,082
                   
$
15,912
                   
$
12,924
         
Net interest spread
                   
3.00
%
                   
3.10
%
                   
2.81
%
                                                                         
Net interest margin
                   
3.16
%
                   
3.26
%
                   
2.93
%
                                                                         
                                                                         
                                                                         
Note: The above tables are presented on a tax equivalent basis.
                                         
 
 

Republic First Bancorp, Inc.
                                   
Average Balances and Net Interest Income
                               
(unaudited)
                                   
                                     
                                     
                                     
   
For the twelve months ended
   
For the twelve months ended
 
(dollars in thousands)
 
December 31, 2017
   
December 31, 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
 
$
48,148
   
$
577
     
1.20
%
 
$
92,452
   
$
473
     
0.51
%
Securities
   
811,269
     
20,466
     
2.52
%
   
506,545
     
12,346
     
2.44
%
Loans receivable
   
1,090,851
     
50,687
     
4.65
%
   
936,492
     
42,304
     
4.52
%
Total interest-earning assets
   
1,950,268
     
71,730
     
3.68
%
   
1,535,489
     
55,123
     
3.59
%
                                                 
Other assets
   
115,770
                     
96,902
                 
                                                 
Total assets
 
$
2,066,038
                   
$
1,632,391
                 
                                                 
Interest-bearing liabilities:
                                               
                                                 
Demand non interest-bearing
 
$
372,171
                   
$
284,326
                 
Demand interest-bearing
   
687,586
     
3,020
     
0.44
%
   
510,745
     
2,088
     
0.41
%
Money market & savings
   
629,464
     
3,160
     
0.50
%
   
586,750
     
2,639
     
0.45
%
Time deposits
   
110,952
     
1,238
     
1.12
%
   
89,713
     
942
     
1.05
%
Total deposits
   
1,800,173
     
7,418
     
0.41
%
   
1,471,534
     
5,669
     
0.39
%
                                                 
Total interest-bearing deposits
   
1,428,002
     
7,418
     
0.52
%
   
1,187,208
     
5,669
     
0.48
%
                                                 
Other borrowings
   
35,429
     
1,366
     
3.86
%
   
27,471
     
1,194
     
4.35
%
                                                 
                                                 
Total interest-bearing liabilities
   
1,463,431
     
8,784
     
0.60
%
   
1,214,679
     
6,863
     
0.57
%
Total deposits and
                                               
  other borrowings
   
1,835,602
     
8,784
     
0.48
%
   
1,499,005
     
6,863
     
0.46
%
                                                 
                                                 
Non interest-bearing liabilities
   
8,942
                     
8,867
                 
Shareholders' equity
   
221,494
                     
124,519
                 
Total liabilities and
                                               
shareholders' equity
 
$
2,066,038
                   
$
1,632,391
                 
                                                 
Net interest income
         
$
62,946
                   
$
48,260
         
Net interest spread
                   
3.08
%
                   
3.02
%
                                                 
Net interest margin
                   
3.23
%
                   
3.14
%
                                                 
                                                 
                                                 
Note: The above tables are presented on a tax equivalent basis.
                         
 

Republic First Bancorp, Inc.
                             
Summary of Allowance for Loan Losses and Other Related Data
                   
(unaudited)
                             
                               
                               
   
Three months ended
       Twelve months ended  
   
December 31,
   
September 30,
   
December 31,
   
December 31,
   
December 31,
 
(dollars in thousands)
 
2017
   
2017
   
2016
   
2017
   
2016
 
                               
                               
Balance at beginning of period
 
$
8,258
   
$
9,454
   
$
9,453
   
$
9,155
   
$
8,703
 
                                         
Provision charged to operating expense
   
400
     
-
     
-
     
900
     
1,557
 
     
8,658
     
9,454
     
9,453
     
10,055
     
10,260
 
                                         
Recoveries on loans charged-off:
                                       
  Commercial
   
1
     
52
     
1
     
119
     
169
 
  Consumer
   
-
     
-
     
2
     
1
     
2
 
Total recoveries
   
1
     
52
     
3
     
120
     
171
 
                                         
Loans charged-off:
                                       
  Commercial
   
(19
)
   
(1,243
)
   
(290
)
   
(1,523
)
   
(1,265
)
  Consumer
   
(41
)
   
(5
)
   
(11
)
   
(53
)
   
(11
)
                                         
Total charged-off
   
(60
)
   
(1,248
)
   
(301
)
   
(1,576
)
   
(1,276
)
                                         
Net charge-offs
   
(59
)
   
(1,196
)
   
(298
)
   
(1,456
)
   
(1,105
)
                                         
Balance at end of period
 
$
8,599
   
$
8,258
   
$
9,155
   
$
8,599
   
$
9,155
 
                                         
                                         
Net charge-offs as a percentage of
                                       
  average loans outstanding
   
0.02
%
   
0.43
%
   
0.12
%
   
0.13
%
   
0.12
%
                                         
Allowance for loan losses as a percentage
                                       
  of period-end loans
   
0.74
%
   
0.75
%
   
0.95
%
   
0.74
%
   
0.95
%
 
 
 

Republic First Bancorp, Inc.
                             
Summary of Non-Performing Loans and Assets
                         
(unaudited)
                             
                               
   
December 31,
   
September 30,
   
June 30,
   
March 31,
   
December 31,
 
(dollars in thousands)
 
2017
   
2017
   
2017
   
2017
   
2016
 
                               
Non-accrual loans:
                             
  Commercial real estate
 
$
13,973
   
$
10,140
   
$
17,703
   
$
17,695
   
$
17,758
 
  Consumer and other
   
872
     
880
     
817
     
834
     
836
 
Total non-accrual loans
   
14,845
     
11,020
     
18,520
     
18,529
     
18,594
 
                                         
Loans past due 90 days or more
                                       
  and still accruing
   
-
     
2,730
     
293
     
-
     
302
 
                                         
Total non-performing loans
   
14,845
     
13,750
     
18,813
     
18,529
     
18,896
 
                                         
Other real estate owned
   
6,966
     
9,169
     
9,909
     
9,944
     
10,174
 
                                         
Total non-performing assets
 
$
21,811
   
$
22,919
   
$
28,722
   
$
28,473
   
$
29,070
 
                                         
                                         
Non-performing loans to total loans
   
1.28
%
   
1.26
%
   
1.76
%
   
1.81
%
   
1.96
%
                                         
Non-performing assets to total assets
   
0.94
%
   
1.07
%
   
1.41
%
   
1.45
%
   
1.51
%
                                         
Non-performing loan coverage
   
57.93
%
   
60.06
%
   
50.25
%
   
49.55
%
   
48.45
%
                                         
Allowance for loan losses as a percentage
                                       
  of total period-end loans
   
0.74
%
   
0.75
%
   
0.89
%
   
0.89
%
   
0.95
%
                                         
Non-performing assets / capital plus
                                       
   allowance for loan losses
   
9.28
%
   
9.82
%
   
12.39
%
   
12.52
%
   
12.97
%
 
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