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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 26, 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 July 26, 2018, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended June 30, 2018.  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 26, 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.
July 26, 2018

REPUBLIC FIRST BANCORP, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
ANNOUNCES NEW YORK CITY EXPANSION PLAN

Philadelphia, PA, July 26, 2018 (GlobeNewswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2018.
 
 
Q2 Highlights

·
Total deposits increased by $402 million, or 23%, to $2.1 billion as of June 30, 2018 compared to $1.7 billion as of June 30, 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 $29 million per year, while the average deposit growth for all stores over the last twelve months was approximately $18 million per store.

·
Total loans grew $251 million, or 24%, to $1.3 billion as of June 30, 2018 compared to $1.1 billion at June 30, 2017.

·
Income before tax increased by 41% to $2.9 million for the three months ended June 30, 2018 compared to $2.1 million for the three months ended June 30, 2017.
 
 
"The Power of Red is Back" expansion strategy continues to deliver exceptional results. Assets, loans and deposits are growing more than 20% year over year and profitability continues to improve despite the significant investments being made to execute the growth plan. The momentum can be felt across the Bank's entire footprint.

The success achieved with "The Power of Red is Back" growth campaign in the Metro Philadelphia Market is moving to New York. Republic Bank is planning to expand into New York City beginning in 2019. Sites for several new stores have been identified in Manhattan with four stores expected to open next year.

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

"The Power of Red is Back growth campaign is coming to New York City.  I am excited to announce our intention to bring Republic Bank's unmatched commitment to extraordinary customer service and convenience to Manhattan. Our goal is to turn Customers into FANS. We achieve this goal not only through our unique store locations, but we combine that experience with our relentless pursuit of customer satisfaction through all delivery channels including mobile and internet options. We look forward to the opportunity to bring our exceptional model to the people of New York City."



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

"Our second quarter results continue to demonstrate the success our growth strategy is capable of producing. We are excited for the highly anticipated opening of our next store in Gloucester Township, NJ and we've recently broken ground on four new sites in the Metro Philadelphia market which we hope to have complete before year end. This activity combined with the planned expansion into New York City beginning in 2019 sets us up for an incredibly bright future."

A summary of the financial results for the period ended June 30, 2018 can be found in the following table:

   
Three Months Ended
($ in millions, except per share data)
 
06/30/18
06/30/17
% Change
         
Assets
 
$ 2,552.9
$    2,043.5
          25%
Loans
 
   1,317.6
      1,066.5
          24%
Deposits
 
   2,134.1
      1,732.4
          23%
Total Revenue
 
$     28.1
$        22.3
            26%
Income Before Tax
 
         2.9
            2.1
            41%
Net Income *
 
         2.4
            2.1
            15%
Net Income per Share
 
$     0.04
$        0.04
              -%

* Note:
Net income for the period ended 6/30/18 reflects a provision for federal and state income taxes which did not impact 2017 results due to an adjustment to the DTA valuation allowance recorded by the Company.
 

Additional Highlights for the Period Ended June 30, 2018

·
Total assets increased by $509 million, or 25%, to $2.6 billion as of June 30, 2018 compared to $2.0 billion as of June 30, 2017.

·
Non-interest bearing demand deposits represent the fastest growing segment of the Company's deposit base. These deposits grew by $156 million, or 42%, to $527 million over the last 12 months.

·
Net income after tax was $2.4 million, or $0.04 per share, for the three months ended June 30, 2018 compared to $2.1 million for the three months ended June 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during the first quarter of 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017. The prior year income tax provision was largely offset by an adjustment to the valuation allowance.

·
Total revenue grew by 26% during the quarter ended June 30, 2018 while non-interest expense increased by 17% when compared to the second quarter of 2017. The Company continues to open new stores and increase profitability despite the additional costs associated with the expansion strategy.

2

·
There are twenty-three convenient store locations open today. The next store opening is scheduled for July 28, 2018 in Gloucester Township, NJ. Ground has been broken on sites in Evesboro, Lumberton, and Somers Point, NJ and Feasterville, PA. These stores are expected to be completed by year end.

·
Expansion into New York City is expected to begin during 2019. The Company is planning to open four new stores in Manhattan in the coming year.

·
Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.81% as of June 30, 2018 compared to 1.41% as of June 30, 2017.

·
The Company converted $10.6 million of outstanding trust preferred securities to 1.6 million shares of common stock during the first quarter of 2018. This conversion will result in a reduction of interest expense of approximately $0.9 million on an annual basis going forward.

·
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 three month period ended June 30, 2018.

·
Meeting the needs of small business customers continued to be an important part of the Company's lending strategy.  More than $8 million in new SBA loans were originated during the three month period ended June 30, 2018. Republic Bank is currently ranked as the #2 SBA lender in New Jersey based on the dollar volume of loan originations.

·
The Company's Total Risk-Based Capital ratio was 15.62% and Tier I Leverage Ratio was 9.88% at June 30, 2018.

·
Book value per common share increased to $4.01 as of June 30, 2018 compared to $3.90 as of June 30, 2017.

3


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
 
06/30/18
06/30/17
% Change
 
06/30/18
06/30/17
% Change
Total Revenue
$  28,092
$  22,300
26%
 
$  53,526
$  42,825
25%
Provision for Loan Losses
800
500
60%
 
1,200
500
140%
Non-interest Expense
20,729
17,685
17%
 
40,831
34,489
18%
Income Before Taxes
2,901
2,051
41%
 
5,050
3,804
33%
Provision (Benefit) for Taxes
530
(8)
n/m
 
902
(42)
n/m
Net Income
2,371
2,059
15%
 
4,148
3,846
8%
Net Income per Share
$       0.04
$       0.04
-%
 
$       0.07
$       0.07
-%

The Company reported net income of $2.4 million, or $0.04 per share, for the three month period ended  June 30, 2018 compared to $2.1 million for the three month period ended June 30, 2017.  Net income for the six month period ended June 30, 2018 was $4.1 million, or $0.07 per share, compared to net income of $3.8 million, or $0.07 per share, for the six months ended June 30, 2017.

During 2017, the Company recorded a minimal provision for federal and state income taxes due to the deferred tax asset valuation allowance recorded on the balance sheet. Income Before Taxes grew 41% to $2.9 million during the second quarter of 2018 and grew 33% to $5.1 million on a year to date basis in 2018. The significant improvement in pre-tax profitability has been achieved despite the ongoing investments and expenditures required for the growth and expansion strategy.

Total revenue increased by $5.8 million, or 26%, to $28.1 million for the three month period ended June 30, 2018, compared to $22.3 million for the three month period ended June 30, 2017.  Total revenue for the six month period ended June 30, 2018 increased by $10.7 million, or 25%, to $53.5 million. The increase in revenue 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.

The increase in total revenue for both the three month period (26%) and six month period (25%) ended June 30, 2018 exceeded the growth in non-interest expense for the three month period (17%) and the six month period (18%) ended June 30, 2018 which demonstrates the effect that our growth strategy will have on the profitability of the Bank.

Non-interest income increased to $5.8 million for the three month period ended June 30, 2018 compared to $5.0 million for the three month period ended June 30, 2017 driven by growth in service fees on deposit accounts and residential mortgage banking income.

4

Non-interest expenses increased by $3.0 million, or 17%, to $20.7 million during the three month period ended June 30, 2018 compared to $17.7 million during the three months ended June 30, 2017. This increase was mainly caused by the increase in salaries and employee benefits 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.

The provision for income taxes was $530 thousand for the three month period ended June 30, 2018 compared to a benefit for income taxes in the amount of $8 thousand for the three month period ended June 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during the first quarter of 2018 after reversing its deferred tax asset valuation allowance during the fourth quarter of 2017.


Balance Sheet

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

 
Description
 
06/30/18
 
06/30/17
% Change
 
03/31/18
% Change
           
Total assets
$ 2,552,920
$ 2,043,487
25%
$ 2,471,464
3%
Total loans (net)
1,310,012
1,057,056
24%
1,244,262
5%
Total deposits
2,134,141
1,732,431
23%
2,123,451
1%

Total assets increased by $509.4 million, or 25%, as of June 30, 2018 when compared to June 30, 2017.  Deposits grew by $401.7 million to $2.1 billion as of June 30, 2018 compared to $1.7 billion as of June 30, 2017. 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."


5


Deposits

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

 
 
Description
 
 
06/30/18
 
 
06/30/17
 
%
Change
 
 
03/31/18
 
%
Change
2nd Qtr 2018 Cost of Funds
             
Demand noninterest-bearing
$ 526,650
$ 370,270
 42%
$ 464,383
     13%
0.00%
Demand interest-bearing
785,513
647,501
 21%
826,726
     (5%)
0.74%
Money market and savings
698,182
607,859
  15%
703,263
     (1%)
0.67%
Certificates of deposit
123,796
106,801
  16%
129,079
     (4%)
1.17%
Total deposits
$ 2,134,141
$1,732,431
 23%
$ 2,123,451
     1%
0.58%
             

Deposits increased to $2.1 billion at June 30, 2018 compared to $1.7 billion at June 30, 2017 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. The Company recognized strongest growth in demand deposit balances, led by growth in non-interest bearing demand deposits of 42%, on a year to year basis as a result of the successful execution of its strategy.


Lending

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

 
Description
 
06/30/18
% of
Total
 
06/30/17
% of
Total
 
03/31/18
% of
Total
             
Commercial real estate
$ 489,574
37%
$ 412,695
39%
$467,585
37%
Construction and land development
120,165
9%
83,571
8%
118,607
10%
Commercial and industrial
188,254
14%
176,949
16%
189,420
15%
Owner occupied real estate
335,871
26%
285,479
27%
315,418
25%
Consumer and other
83,606
6%
68,530
6%
78,834
6%
Residential mortgage
100,108
8%
39,286
4%
81,048
7%
Gross loans
$1,317,578
100%
$1,066,510
100%
$1,250,912
100%
             
 

 
6

Gross loans increased by $251 million, or 24%, to $1.3 billion at June 30, 2018 compared to $1.1 billion at June 30, 2017 as a result of the steady flow in quality loan demand over the last twelve months and continued success with the relationship banking model. The Company experienced strong growth across all loan categories.


Asset Quality

The Company's asset quality ratios are highlighted below:

 
Three Months Ended
 
06/30/18
03/31/18
06/30/17
       
Non-performing assets / capital and reserves
9%
9%
12%
Non-performing assets / total assets
0.81%
0.85%
1.41%
Quarterly net loan charge-offs / average loans
(0.04%)
0.77%
0.09%
Allowance for loan losses / gross loans
0.57%
0.53%
0.89%
Allowance for loan losses / non-performing loans
54%
47%
50%

The percentage of non-performing assets to total assets decreased to 0.81% at June 30, 2018, compared to 1.41% at June 30, 2017.  The ratio of non-performing assets to capital and reserves decreased to 9% at June 30, 2018 compared to 12% at June 30, 2017 primarily as a result of decreases in non-performing assets over the last 12 months.


Capital

The Company's capital ratios at June 30, 2018 were as follows:

 
Actual
06/30/18
Regulatory Guidelines
"Well Capitalized"
     
Leverage Ratio
    9.88%
5.00%
Common Equity Ratio
  14.48%
6.50%
Tier 1 Risk Based Capital
  15.16%
8.00%
Total Risk Based Capital
  15.62%
10.00%
Tangible Common Equity
    9.04%
n/a

Total shareholders' equity increased to $235 million at June 30, 2018 compared to $222 million at June 30, 2017. Book value per common share increased to $4.01 at June 30, 2018 compared to $3.90 per share at June 30, 2017.
 
 
7

 
Analyst and Investor Call

An analyst and investor call will be held on the following date and time:
 
     
Date:
July 26, 2018
 
Time:
10:00am (EST)
 
From the U.S. dial:
(888) 424-8151
 
Participant Pin:
6954598
 
 
An operator will assist you in joining the call.
 

 

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its twenty-three 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 mortgage division which does business under the name of Oak Mortgage Company. For more information about Republic Bank, visit www.myrepublicbank.com.
 

 
8


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, 2017 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
 
 
 
 
9

Republic First Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)    
                     
           
June 30,
 
March 31,
 
June 30,
(dollars in thousands, except per share amounts)
2018
 
2018
 
2017
                     
ASSETS
               
 
Cash and due from banks
 
 $         29,363
 
 $         21,927
 
 $         28,247
 
Interest-bearing deposits and federal funds sold
            29,991
 
              9,142
 
            59,750
   
Total cash and cash equivalents
            59,354
 
            31,069
 
            87,997
                     
 
Securities - Available for sale
 
          502,021
 
          519,692
 
          345,182
 
Securities - Held to maturity
 
          503,742
 
          519,295
 
          409,373
 
Restricted stock
   
              8,379
 
              5,435
 
              3,878
   
Total investment securities
 
       1,014,142
 
       1,044,422
 
          758,433
                     
 
Loans held for sale
   
            39,301
 
            25,653
 
            29,547
                     
 
Loans receivable
   
       1,317,578
 
       1,250,912
 
       1,066,510
 
Allowance for loan losses
 
            (7,566)
 
            (6,650)
 
            (9,454)
   
Net loans
     
       1,310,012
 
       1,244,262
 
       1,057,056
                     
 
Premises and equipment
 
            80,069
 
            77,153
 
            65,471
 
Other real estate owned
 
              6,559
 
              6,966
 
              9,909
 
Other assets
     
            43,483
 
            41,939
 
            35,074
                     
 
Total Assets
     
 $    2,552,920
 
 $    2,471,464
 
 $    2,043,487
                     
                     
                     
LIABILITIES
               
 
Non-interest bearing deposits
 
 $       526,650
 
 $       464,383
 
 $       370,270
 
Interest bearing deposits
 
       1,607,491
 
       1,659,068
 
       1,362,161
   
Total deposits
   
       2,134,141
 
       2,123,451
 
       1,732,431
                     
 
Short-term borrowings
   
          161,669
 
            93,915
 
            55,000
 
Subordinated debt
   
            11,256
 
            11,254
 
            21,656
 
Other liabilities
   
            10,520
 
              8,770
 
            12,079
                     
 
Total Liabilities
   
       2,317,586
 
       2,237,390
 
       1,821,166
                     
SHAREHOLDERS' EQUITY
           
 
Common stock - $0.01 par value
 
                593
 
                592
 
                575
 
Additional paid-in capital
 
          267,974
 
          267,313
 
          255,215
 
Accumulated deficit
   
          (13,195)
 
          (15,566)
 
          (24,042)
 
Treasury stock at cost
   
            (3,725)
 
            (3,725)
 
            (3,725)
 
Stock held by deferred compensation plan
               (183)
 
               (183)
 
               (183)
 
Accumulated other comprehensive loss
          (16,130)
 
          (14,357)
 
            (5,519)
                     
 
Total Shareholders' Equity
 
          235,334
 
          234,074
 
          222,321
                     
                     
 
Total Liabilities and Shareholders' Equity
 $    2,552,920
 
 $    2,471,464
 
 $    2,043,487
                     
 
 
 

 
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)
2018
 
2018
 
2017
 
2018
 
2017
                             
INTEREST INCOME
                     
 
Interest and fees on loans
 
 $        15,457
 
 $        14,269
 
 $        12,330
 
 $        29,726
 
 $        23,529
 
Interest and dividends on investment securities
             6,804
 
             6,458
 
             4,931
 
           13,262
 
             9,858
 
Interest on other interest earning assets
                  63
 
                172
 
                  70
 
                235
 
                131
   
Total interest income
 
           22,324
 
           20,899
 
           17,331
 
           43,223
 
           33,518
                             
INTEREST EXPENSE
                     
 
Interest on deposits
   
             3,089
 
             2,598
 
             1,722
 
             5,687
 
             3,324
 
Interest on borrowed funds
 
                573
 
                185
 
                342
 
                758
 
                708
   
Total interest expense
 
             3,662
 
             2,783
 
             2,064
 
             6,445
 
             4,032
                             
 
Net interest income
   
           18,662
 
           18,116
 
           15,267
 
           36,778
 
           29,486
 
Provision for loan losses
 
                800
 
                400
 
                500
 
             1,200
 
                500
                             
 
Net interest income after provision for loan losses
           17,862
 
           17,716
 
           14,767
 
           35,578
 
           28,986
                             
NON-INTEREST INCOME
                   
 
Service fees on deposit accounts
             1,326
 
             1,175
 
                907
 
             2,501
 
             1,753
 
Mortgage banking income
 
             3,182
 
             2,186
 
             2,971
 
             5,368
 
             5,392
 
Gain on sale of SBA loans
 
                846
 
                992
 
                796
 
             1,838
 
             1,484
 
Gain (loss) on sale of investment securities
                  (1)
 
                  -
 
                (61)
 
                  (1)
 
                (61)
 
Other non-interest income
 
                415
 
                182
 
                356
 
                597
 
                739
   
Total non-interest income
 
             5,768
 
             4,535
 
             4,969
 
           10,303
 
             9,307
                             
NON-INTEREST EXPENSE
                   
 
Salaries and employee benefits
           10,883
 
           10,645
 
             9,389
 
           21,528
 
           17,971
 
Occupancy and equipment
 
             3,353
 
             3,470
 
             2,873
 
             6,823
 
             5,763
 
Legal and professional fees
 
                859
 
                759
 
                633
 
             1,618
 
             1,314
 
Foreclosed real estate
 
                192
 
                311
 
                612
 
                503
 
                958
 
Regulatory assessments and related fees
                395
 
                467
 
                324
 
                862
 
                653
 
Other operating expenses
 
             5,047
 
             4,450
 
             3,854
 
             9,497
 
             7,830
   
Total non-interest expense
 
           20,729
 
           20,102
 
           17,685
 
           40,831
 
           34,489
                             
Income before provision (benefit) for income taxes
             2,901
 
             2,149
 
             2,051
 
             5,050
 
             3,804
                             
Provision (benefit) for income taxes
                530
 
                372
 
                  (8)
 
                902
 
                (42)
                             
Net income
     
 $          2,371
 
 $          1,777
 
 $          2,059
 
 $          4,148
 
 $          3,846
                             
                             
Net Income per Common Share
                   
 
Basic
     
 $            0.04
 
 $            0.03
 
 $            0.04
 
 $            0.07
 
 $            0.07
 
Diluted
     
 $            0.04
 
 $            0.03
 
 $            0.04
 
 $            0.07
 
 $            0.07
                             
Average Common Shares Outstanding
                 
 
Basic
     
           58,746
 
           57,100
 
           56,945
 
           57,927
 
           56,885
 
Diluted
     
           59,911
 
           58,370
 
           58,301
 
           59,147
 
           58,165
                             
                             
 
 

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, 2018
 
March 31, 2018
 
June 30, 2017
                                     
       
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
 
 $     13,412
 
 $      63
 
1.88%
 
 $     40,425
 
 $     172
 
1.73%
 
 $     28,691
 
 $      70
 
0.98%
Securities
 
   1,048,291
 
     6,838
 
2.61%
 
   1,015,605
 
     6,487
 
2.55%
 
      782,121
 
     5,013
 
2.56%
Loans receivable
 
   1,304,244
 
   15,557
 
4.78%
 
   1,235,124
 
   14,365
 
4.72%
 
   1,065,313
 
   12,470
 
4.70%
Total interest-earning assets
   2,365,947
 
   22,458
 
3.81%
 
   2,291,154
 
   21,024
 
3.72%
 
   1,876,125
 
   17,553
 
3.75%
                                     
Other assets
 
      129,077
         
      127,001
         
      111,493
       
                                     
Total assets
 
 $2,495,024
         
 $2,418,155
         
 $1,987,618
       
                                     
Interest-bearing liabilities:
                                 
                                     
Demand non interest-bearing
 $   481,548
         
 $   431,234
         
 $   355,325
       
Demand interest-bearing
 
      844,405
 
     1,549
 
0.74%
 
      893,530
 
     1,257
 
0.57%
 
      659,859
 
       695
 
0.42%
Money market & savings
 
      699,136
 
     1,174
 
0.67%
 
      687,818
 
       972
 
0.57%
 
      602,710
 
       732
 
0.49%
Time deposits
 
      125,607
 
       366
 
1.17%
 
      129,897
 
       369
 
1.15%
 
      105,820
 
       295
 
1.12%
Total deposits
 
   2,150,696
 
     3,089
 
0.58%
 
   2,142,479
 
     2,598
 
0.49%
 
   1,723,714
 
     1,722
 
0.40%
                                     
Total interest-bearing deposits
   1,669,148
 
     3,089
 
0.74%
 
   1,711,245
 
     2,598
 
0.62%
 
   1,368,389
 
     1,722
 
0.50%
                                     
Other borrowings
 
      101,829
 
       573
 
2.26%
 
        40,552
 
       185
 
1.85%
 
        35,119
 
       342
 
3.91%
                                     
                                     
Total interest-bearing liabilities
   1,770,977
 
     3,662
 
0.83%
 
   1,751,797
 
     2,783
 
0.64%
 
   1,403,508
 
     2,064
 
0.59%
Total deposits and
                                   
  other borrowings
 
   2,252,525
 
     3,662
 
0.65%
 
   2,183,031
 
     2,783
 
0.52%
 
   1,758,833
 
     2,064
 
0.47%
                                     
                                     
Non interest-bearing liabilities
         8,952
         
         9,540
         
         8,345
       
Shareholders' equity
 
      233,547
         
      225,584
         
      220,440
       
Total liabilities and
                                   
shareholders' equity
 
 $2,495,024
         
 $2,418,155
         
 $1,987,618
       
                                     
Net interest income
     
 $18,796
         
 $18,241
         
 $15,489
   
Net interest spread
         
2.98%
         
3.08%
         
3.16%
                                     
Net interest margin
         
3.19%
         
3.23%
         
3.31%
                                     
                                     
                                     
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, 2018
 
June 30, 2017
                         
       
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
 
 $     26,844
 
 $     235
 
1.77%
 
 $     26,323
 
 $     131
 
1.00%
Securities
 
   1,032,038
 
   13,325
 
2.58%
 
      795,003
 
   10,045
 
2.53%
Loans receivable
 
   1,269,875
 
   29,922
 
4.75%
 
   1,036,979
 
   23,808
 
4.63%
Total interest-earning assets
   2,328,757
 
   43,482
 
3.77%
 
   1,858,305
 
   33,984
 
3.69%
                         
Other assets
 
      128,045
         
      106,683
       
                         
Total assets
 
 $2,456,802
         
 $1,964,988
       
                         
Interest-bearing liabilities:
                       
                         
Demand non interest-bearing
 $   456,530
         
 $   342,243
       
Demand interest-bearing
 
      868,832
 
     2,806
 
0.65%
 
      640,084
 
     1,303
 
0.41%
Money market & savings
 
      693,508
 
     2,146
 
0.62%
 
      604,933
 
     1,430
 
0.48%
Time deposits
 
      127,740
 
       735
 
1.16%
 
      106,866
 
       591
 
1.12%
Total deposits
 
   2,146,610
 
     5,687
 
0.53%
 
   1,694,126
 
     3,324
 
0.40%
                         
Total interest-bearing deposits
   1,690,080
 
     5,687
 
0.68%
 
   1,351,883
 
     3,324
 
0.50%
                         
Other borrowings
 
        71,360
 
       758
 
2.14%
 
        44,078
 
       708
 
3.24%
                         
                         
Total interest-bearing liabilities
   1,761,440
 
     6,445
 
0.74%
 
   1,395,961
 
     4,032
 
0.58%
Total deposits and
                       
  other borrowings
 
   2,217,970
 
     6,445
 
0.59%
 
   1,738,204
 
     4,032
 
0.47%
                         
                         
Non interest-bearing liabilities
         9,171
         
         8,307
       
Shareholders' equity
 
      229,661
         
      218,477
       
Total liabilities and
                       
shareholders' equity
 
 $2,456,802
         
 $1,964,988
       
                         
Net interest income
     
 $37,037
         
 $29,952
   
Net interest spread
         
3.03%
         
3.11%
                         
Net interest margin
         
3.21%
         
3.25%
                         
                         
                         
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)
2018
 
2018
 
2017
 
2017
 
2018
 
2017
                       
                       
Balance at beginning of period
 $       6,650
 
 $       8,599
 
 $       9,181
 
 $       9,155
 
 $       8,599
 
 $       9,155
                       
Provision charged to operating expense
             800
 
             400
 
             500
 
             900
 
          1,200
 
             500
 
          7,450
 
          8,999
 
          9,681
 
        10,055
 
          9,799
 
          9,655
                       
Recoveries on loans charged-off:
                     
  Commercial
             129
 
               -
 
               30
 
             119
 
             129
 
               66
  Consumer
                1
 
               -
 
                1
 
                1
 
                1
 
                1
Total recoveries
             130
 
               -
 
               31
 
             120
 
             130
 
               67
                       
Loans charged-off:
                     
  Commercial
               -
 
         (2,151)
 
           (253)
 
         (1,523)
 
         (2,151)
 
           (261)
  Consumer
             (14)
 
           (198)
 
               (5)
 
             (53)
 
           (212)
 
               (7)
                       
Total charged-off
             (14)
 
         (2,349)
 
           (258)
 
         (1,576)
 
         (2,363)
 
           (268)
                       
Net charge-offs
             116
 
         (2,349)
 
           (227)
 
         (1,456)
 
         (2,233)
 
           (201)
                       
Balance at end of period
 $       7,566
 
 $       6,650
 
 $       9,454
 
 $       8,599
 
 $       7,566
 
 $       9,454
                       
                       
Net charge-offs as a percentage of
                     
  average loans outstanding
(0.04%)
 
0.77%
 
0.09%
 
0.13%
 
0.35%
 
0.04%
                       
Allowance for loan losses as a percentage
                   
  of period-end loans
0.57%
 
0.53%
 
0.89%
 
0.74%
 
0.57%
 
0.89%
                       
 
 

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)
2018
 
2018
 
2017
 
2017
 
2017
                   
Non-accrual loans:
                 
  Commercial real estate
 $        13,297
 
 $        13,322
 
 $        13,973
 
 $        10,140
 
 $        17,703
  Consumer and other
                809
 
                810
 
                872
 
                880
 
                817
Total non-accrual loans
           14,106
 
           14,132
 
           14,845
 
           11,020
 
           18,520
                   
Loans past due 90 days or more
                 
  and still accruing
                  -
 
                  -
 
                  -
 
             2,730
 
                293
                   
Total non-performing loans
           14,106
 
           14,132
 
           14,845
 
           13,750
 
           18,813
                   
Other real estate owned
             6,559
 
             6,966
 
             6,966
 
             9,169
 
             9,909
                   
Total non-performing assets
 $        20,665
 
 $        21,098
 
 $        21,811
 
 $        22,919
 
 $        28,722
                   
                   
Non-performing loans to total loans
1.07%
 
1.13%
 
1.28%
 
1.26%
 
1.76%
                   
Non-performing assets to total assets
0.81%
 
0.85%
 
0.94%
 
1.07%
 
1.41%
                   
Non-performing loan coverage
53.64%
 
47.06%
 
57.93%
 
60.06%
 
50.25%
                   
Allowance for loan losses as a percentage
                 
  of total period-end loans
0.57%
 
0.53%
 
0.74%
 
0.75%
 
0.89%
                   
Non-performing assets / capital plus
                 
   allowance for loan losses
8.51%
 
8.76%
 
9.28%
 
9.82%
 
12.39%
                   
                   
 
 
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