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 25, 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 October 25, 2018, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended September 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
Press Release issued on October 25, 2018 regarding financial results for the period ended September 30, 2018.
 


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 25, 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.
 
October 25, 2018

REPUBLIC FIRST BANCORP, INC. REPORTS THIRD QUARTER FINANCIAL RESULTS
DEPOSITS GROW 27% AND LOANS GROW 26%

Philadelphia, PA, October 25, 2018 (GlobeNewswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2018.

Q3-2018 Highlights

·
Total deposits increased by $515 million, or 27%, to $2.4 billion as of September 30, 2018 compared to $1.9 billion as of September 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 $22 million per store.

·
Total loans grew $283 million, or 26%, to $1.4 billion as of September 30, 2018 compared to $1.1 billion at September 30, 2017.

·
Total revenue grew by 24% during the nine month period ended September 30, 2018 while non-interest expense increased by 15% when compared to the first nine months of 2017. We continue to open new stores and increase profitability despite the additional costs associated with the expansion strategy.

·
Income before tax increased by 30% to $8.0 million for the nine months ended September 30, 2018 compared to $6.1 million for the nine months ended September 30, 2017.


"The Power of Red is Back" expansion strategy continues to build momentum. As recently announced, Republic Bank is moving forward with plans to expand into New York City. Sites for several new stores have been identified in Manhattan with two to four stores projected to open during 2019.

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

"Since the launch of the 'Power of Red is Back' growth campaign in 2014 we've opened thirteen new store locations using our distinctive glass prototype building and total assets have nearly tripled in size. Deposits have grown at an average annual rate of 25% and loans have grown at an average rate of 17% during this time. We have also demonstrated the ability to steadily improve profitability despite the significant investments being made to execute the growth plan. It is our goal to deliver the best banking experience through every channel…..in-store, online, and mobile options…..turning Customers into FANS. Our results to this point have demonstrated the success we are capable of achieving."
 


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

"During the third quarter we opened our newest store in Gloucester Township, NJ which is off to a tremendous start. We also have four additional stores now under construction in Evesboro, Lumberton and Somers Point, NJ and Feasterville, PA. These sites combined with the planned expansion into New York City beginning in 2019 put us in a 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."

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

   
Nine Months Ended 
($ in millions, except per share data)
 
09/30/18
   
09/30/17
   
% Change 
                   
Assets
 
$
2,657.2
   
$
2,141.6
     
24
%
Loans
   
1,378.8
     
1,095.4
     
26
%
Deposits
   
2,400.4
     
1,885.4
     
27
%
Total Revenue
 
$
82.2
   
$
66.5
     
24
%
Income Before Tax
   
8.0
     
6.1
     
30
%
Net Income *
   
6.5
     
6.2
     
5
%
Net Income per Share
 
$
0.11
   
$
0.11
     
-
%

* Note:
Net income for the period ended 9/30/18 reflects an increased provision for federal and state income taxes which did not have the same impact on 2017 results due to an adjustment to the DTA valuation allowance recorded by the Company.

Financial Highlights for the Period Ended September 30, 2018

·
Total assets increased by $516 million, or 24%, to $2.7 billion as of September 30, 2018 compared to $2.1 billion as of September 30, 2017.

·
Demand deposits represent the fastest growing segment of the Company's deposit base. These deposits grew by $423 million to $1.6 billion over the last 12 months which includes growth of 28% in non-interest bearing demand deposit balances.

·
Net income before tax grew by 30% to $8.0 million for the nine months ended September 30, 2018 compared to $6.1 million for the nine months ended September 30, 2017.
 

·
We have twenty-three convenient store locations open today. During the third quarter of 2018 we opened a new store in Gloucester Township, NJ. Construction is underway on sites in Evesboro, Lumberton, and Somers Point, NJ and Feasterville, PA. There are also multiple sites in various stages of development for future store locations.
 
·
Expansion into New York City is expected to begin during 2019. The Company is planning to open two to 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 0.76% as of September 30, 2018 compared to 1.07% as of September 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 has originated more than $280 million in loans during the nine month period ended September 30, 2018.

·
Meeting the needs of small business customers continued to be an important part of the Company's lending strategy.  More than $15 million in new SBA loans were originated during the three month period ended September 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 15.39% and Tier I Leverage Ratio was 9.75% at September 30, 2018.

·
Book value per common share increased to $4.01 as of September 30, 2018 compared to $3.95 as of September 30, 2017.


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 
   
09/30/18
   
09/30/17
   
% Change 
 
09/30/18
   
09/30/17
   
% Change 
Total Revenue
 
$
28,689
   
$
23,700
     
21
%
 
$
82,215
   
$
66,525
     
24
%
Provision for Loan Losses
   
500
     
-
     
100
%
   
1,700
     
500
     
240
%
Non-interest Expense
   
20,833
     
19,165
     
9
%
   
61,664
     
53,654
     
15
%
Income Before Taxes
   
2,944
     
2,325
     
27
%
   
7,994
     
6,129
     
30
%
Provision (Benefit) for Taxes
   
622
     
4
     
n/
m
   
1,524
     
(38
)
   
n/
m
Net Income
   
2,322
     
2,321
     
-
%
   
6,470
     
6,167
     
5
%
Net Income per Share
 
$
0.04
   
$
0.04
     
-
%
 
$
0.11
   
$
0.11
     
-
%



The Company reported net income of $2.3 million, or $0.04 per share, for both three month periods ended September 30, 2018 and September 30, 2017.  Net income for the nine month period ended September 30, 2018 was $6.5 million, or $0.11 per share, compared to net income of $6.2 million, or $0.11 per share, for the nine months ended September 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 27% to $2.9 million during the third quarter of 2018 and grew 30% to $8.0 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 $5.0 million, or 21%, to $28.7 million for the three month period ended September 30, 2018, compared to $23.7 million for the three month period ended September 30, 2017.  Total revenue for the nine month period ended September 30, 2018 increased by $15.7 million, or 24%, to $82.2 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 (21%) and nine month period (24%) ended September 30, 2018 exceeded the growth in non-interest expense for the three month period (9%) and the nine month period (15%) ended September 30, 2018 which demonstrates the effect that our growth strategy will have on the profitability of the Bank.

Non-interest expenses increased by 9%, to $20.8 million during the quarter ended September 30, 2018 compared to $19.2 million during the quarter ended September 30, 2017. Non-interest expenses increased by 15%, to $61.7 million during the nine month period ended September 30, 2018 compared to $53.7 million during the nine months ended September 30, 2017. The growth in expenses were mainly caused by an increase in salaries and employee benefits driven by annual merit increases along with increased staffing levels related to our growth and expansion strategy. Occupancy and equipment expenses associated with the growth strategy also contributed to the increase in non-interest expenses.

The provision for income taxes was $622 thousand for the three month period ended September 30, 2018 compared to a provision for income taxes in the amount of $4 thousand for the three month period ended September 30, 2017. The Company began recognizing an increased provision for federal and state income taxes during 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
 
09/30/18
   
09/30/17
   
%
Change 
 
06/30/18
   
%
Change 
                               
Total assets
 
$
2,657,206
   
$
2,141,563
     
24
%
 
$
2,552,920
     
4
%
Total loans (net)
   
1,370,704
     
1,087,147
     
26
%
   
1,310,012
     
5
%
Total deposits
   
2,400,358
     
1,885,405
     
27
%
   
2,134,141
     
12
%

Total assets increased by $515.6 million, or 24%, as of September 30, 2018 when compared to September 30, 2017.  Deposits grew by $515.0 million to $2.4 billion as of September 30, 2018 compared to $1.9 billion as of September 30, 2017. The number of deposit accounts has grown by 32% 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."


Deposits

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

 
Description
 
09/30/18
   
09/30/17
   
%
 Change 
 
06/30/18
   
%
Change 
 
3rd Qtr 2018
Cost of Funds 
                                     
Demand noninterest-bearing
 
$
509,188
   
$
398,794
     
28
%
 
$
526,650
     
(3
%)
   
0.00
%
Demand interest-bearing
   
1,058,670
     
745,878
     
42
%
   
785,513
     
35
%
   
0.90
%
Money market and savings
   
703,358
     
619,265
     
14
%
   
698,182
     
1
%
   
0.74
%
Certificates of deposit
   
129,142
     
121,468
     
6
%
   
123,796
     
4
%
   
1.21
%
Total deposits
 
$
2,400,358
   
$
1,885,405
     
27
%
 
$
2,134,141
     
12
%
   
0.66
%
                                                 

Deposits increased to $2.4 billion at September 30, 2018 compared to $1.9 billion at September 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, including an increase in non-interest bearing demand deposits of 28%, year over year as a result of the successful execution of its strategy.




Lending

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

 
Description
 
09/30/18
   
% of
Total 
 
09/30/17
   
% of
Total 
 
06/30/18
   
% of
Total 
                                     
Commercial real estate
 
$
495,529
     
36
%
 
$
415,532
     
38
%
 
$
489,574
     
37
%
Construction and land development
   
125,512
     
9
%
   
93,657
     
8
%
   
120,165
     
9
%
Commercial and industrial
   
195,493
     
14
%
   
163,085
     
15
%
   
188,254
     
14
%
Owner occupied real estate
   
358,956
     
26
%
   
297,880
     
27
%
   
335,871
     
26
%
Consumer and other
   
86,922
     
6
%
   
71,867
     
7
%
   
83,606
     
6
%
Residential mortgage
   
116,376
     
9
%
   
53,384
     
5
%
   
100,108
     
8
%
Gross loans
 
$
1,378,788
     
100
%
 
$
1,095,405
     
100
%
 
$
1,317,578
     
100
%
                                                 

Gross loans increased by $283 million, or 26%, to $1.4 billion at September 30, 2018 compared to $1.1 billion at September 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
 
09/30/18
06/30/18
09/30/17
       
Non-performing assets / capital and reserves
8%
9%
10%
Non-performing assets / total assets
0.76%
0.81%
1.07%
Quarterly net loan charge-offs / average loans
(0.01%)
(0.04%)
0.43%
Allowance for loan losses / gross loans
0.59%
0.57%
0.75%
Allowance for loan losses / non-performing loans
60%
54%
60%

The percentage of non-performing assets to total assets decreased to 0.76% at September 30, 2018, compared to 1.07% at September 30, 2017.  The ratio of non-performing assets to capital and reserves decreased to 8% at September 30, 2018 compared to 10% at September 30, 2017 primarily as a result of decreases in non-performing assets over the last 12 months.
 
 

 
 
Capital

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

 
Actual
09/30/18
Bancorp
Actual
09/30/18
Bank
Regulatory Guidelines
"Well Capitalized"
       
Leverage Ratio
    9.75%
    8.47%
5.00%
Common Equity Ratio
  14.26%
  12.96%
6.50%
Tier 1 Risk Based Capital
  14.91%
  12.96%
8.00%
Total Risk Based Capital
  15.39%
  13.44%
10.00%
Tangible Common Equity
    8.71%
    7.74%
n/a

Total shareholders' equity increased to $236 million at September 30, 2018 compared to $225 million at September 30, 2017. Book value per common share increased to $4.01 at September 30, 2018 compared to $3.95 per share at September 30, 2017.

Analyst and Investor Call

An analyst and investor call will be held on the following date and time:

 
Date:
 
October 25, 2018
Time:
10:00am (EDT)
From the U.S. dial:
(800) 697-5978
Participant Pin:
8722 756#
   
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.
 

 


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
 
 
 
 

Republic First Bancorp, Inc.
                 
Consolidated Balance Sheets
                 
(Unaudited)
                 
                   
   
September 30,
   
June 30,
   
September 30,
 
(dollars in thousands, except per share amounts)
 
2018
   
2018
   
2017
 
                   
ASSETS
                 
Cash and due from banks
 
$
37,303
   
$
29,363
   
$
27,181
 
Interest-bearing deposits and federal funds sold
   
108,996
     
29,991
     
71,601
 
Total cash and cash equivalents
   
146,299
     
59,354
     
98,782
 
                         
Securities - Available for sale
   
487,524
     
502,021
     
377,757
 
Securities - Held to maturity
   
485,291
     
503,742
     
416,987
 
Restricted stock
   
1,916
     
8,379
     
1,678
 
Total investment securities
   
974,731
     
1,014,142
     
796,422
 
                         
Loans held for sale
   
32,839
     
39,301
     
41,711
 
                         
Loans receivable
   
1,378,788
     
1,317,578
     
1,095,405
 
Allowance for loan losses
   
(8,084
)
   
(7,566
)
   
(8,258
)
Net loans
   
1,370,704
     
1,310,012
     
1,087,147
 
                         
Premises and equipment
   
81,912
     
80,069
     
71,715
 
Other real estate owned
   
6,768
     
6,559
     
9,169
 
Other assets
   
43,953
     
43,483
     
36,617
 
                         
Total Assets
 
$
2,657,206
   
$
2,552,920
   
$
2,141,563
 
                         
                         
                         
LIABILITIES
                       
Non-interest bearing deposits
 
$
509,188
   
$
526,650
   
$
398,794
 
Interest bearing deposits
   
1,891,170
     
1,607,491
     
1,486,611
 
Total deposits
   
2,400,358
     
2,134,141
     
1,885,405
 
                         
Short-term borrowings
   
-
     
161,669
     
-
 
Subordinated debt
   
11,257
     
11,256
     
21,663
 
Other liabilities
   
9,767
     
10,520
     
9,293
 
                         
Total Liabilities
   
2,421,382
     
2,317,586
     
1,916,361
 
                         
SHAREHOLDERS' EQUITY
                       
Common stock - $0.01 par value
   
593
     
593
     
575
 
Additional paid-in capital
   
268,613
     
267,974
     
255,752
 
Accumulated deficit
   
(10,873
)
   
(13,195
)
   
(21,721
)
Treasury stock at cost
   
(3,725
)
   
(3,725
)
   
(3,725
)
Stock held by deferred compensation plan
   
(183
)
   
(183
)
   
(183
)
Accumulated other comprehensive loss
   
(18,601
)
   
(16,130
)
   
(5,496
)
                         
Total Shareholders' Equity
   
235,824
     
235,334
     
225,202
 
                         
                         
Total Liabilities and Shareholders' Equity
 
$
2,657,206
   
$
2,552,920
   
$
2,141,563
 
 
 

 
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)
 
2018
   
2018
   
2017
   
2018
   
2017
 
                               
INTEREST INCOME
                             
Interest and fees on loans
 
$
16,764
   
$
15,457
   
$
12,989
   
$
46,490
   
$
36,518
 
Interest and dividends on investment securities
   
6,641
     
6,804
     
4,752
     
19,903
     
14,610
 
Interest on other interest earning assets
   
153
     
63
     
181
     
388
     
312
 
Total interest income
   
23,558
     
22,324
     
17,922
     
66,781
     
51,440
 
                                         
INTEREST EXPENSE
                                       
Interest on deposits
   
3,642
     
3,089
     
1,872
     
9,329
     
5,196
 
Interest on borrowed funds
   
770
     
573
     
338
     
1,528
     
1,046
 
Total interest expense
   
4,412
     
3,662
     
2,210
     
10,857
     
6,242
 
                                         
Net interest income
   
19,146
     
18,662
     
15,712
     
55,924
     
45,198
 
Provision for loan losses
   
500
     
800
     
-
     
1,700
     
500
 
                                         
Net interest income after provision for loan losses
   
18,646
     
17,862
     
15,712
     
54,224
     
44,698
 
                                         
NON-INTEREST INCOME
                                       
Service fees on deposit accounts
   
1,386
     
1,326
     
1,067
     
3,887
     
2,820
 
Mortgage banking income
   
2,580
     
3,182
     
3,159
     
7,948
     
8,551
 
Gain on sale of SBA loans
   
816
     
846
     
831
     
2,654
     
2,315
 
Gain (loss) on sale of investment securities
   
-
     
(1
)
   
-
     
(1
)
   
(61
)
Other non-interest income
   
349
     
415
     
721
     
946
     
1,460
 
Total non-interest income
   
5,131
     
5,768
     
5,778
     
15,434
     
15,085
 
                                         
NON-INTEREST EXPENSE
                                       
Salaries and employee benefits
   
11,203
     
10,883
     
9,829
     
32,731
     
27,800
 
Occupancy and equipment
   
3,260
     
3,353
     
3,064
     
10,083
     
8,827
 
Legal and professional fees
   
773
     
859
     
610
     
2,391
     
1,924
 
Foreclosed real estate
   
378
     
192
     
746
     
881
     
1,704
 
Regulatory assessments and related fees
   
396
     
395
     
355
     
1,258
     
1,008
 
Other operating expenses
   
4,823
     
5,047
     
4,561
     
14,320
     
12,391
 
Total non-interest expense
   
20,833
     
20,729
     
19,165
     
61,664
     
53,654
 
                                         
Income before provision (benefit) for income taxes
   
2,944
     
2,901
     
2,325
     
7,994
     
6,129
 
                                         
Provision (benefit) for income taxes
   
622
     
530
     
4
     
1,524
     
(38
)
                                         
Net income
 
$
2,322
   
$
2,371
   
$
2,321
   
$
6,470
   
$
6,167
 
                                         
                                         
Net Income per Common Share
                                       
Basic
 
$
0.04
   
$
0.04
   
$
0.04
   
$
0.11
   
$
0.11
 
Diluted
 
$
0.04
   
$
0.04
   
$
0.04
   
$
0.11
   
$
0.11
 
                                         
Average Common Shares Outstanding
                                       
Basic
   
58,774
     
58,746
     
56,974
     
58,213
     
56,915
 
Diluted
   
59,774
     
59,911
     
58,314
     
59,338
     
58,213
 
 
 

 
Republic First Bancorp, Inc.           
                 
Average Balances and Net Interest Income                     
(unaudited)                      
 
                                                       
                                                       
(dollars in thousands)
 
For the three months ended
 
For the three months ended
 
For the three months ended
 
 
September 30, 2018
 
June 30, 2018
 
September 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
 
$
29,163
   
$
153
     
2.08
%
 
$
13,412
   
$
63
     
1.88
%
 
$
56,316
   
$
181
     
1.28
%
Securities
   
1,018,910
     
6,676
     
2.62
%
   
1,048,291
     
6,838
     
2.61
%
   
765,678
     
4,805
     
2.51
%
Loans receivable
   
1,390,894
     
16,873
     
4.81
%
   
1,304,244
     
15,557
     
4.78
%
   
1,115,920
     
13,136
     
4.67
%
Total interest-earning assets
   
2,438,967
     
23,702
     
3.86
%
   
2,365,947
     
22,458
     
3.81
%
   
1,937,914
     
18,122
     
3.71
%
                                                                         
Other assets
   
135,139
                     
129,077
                     
122,513
                 
                                                                         
Total assets
 
$
2,574,106
                   
$
2,495,024
                   
$
2,060,427
                 
                                                                         
Interest-bearing liabilities:
                                                                       
                                                                         
Demand non interest-bearing
 
$
513,292
                   
$
481,548
                   
$
381,380
                 
Demand interest-bearing
   
861,607
     
1,948
     
0.90
%
   
844,405
     
1,549
     
0.74
%
   
692,423
     
772
     
0.44
%
Money market & savings
   
699,081
     
1,308
     
0.74
%
   
699,136
     
1,174
     
0.67
%
   
613,506
     
788
     
0.51
%
Time deposits
   
126,378
     
386
     
1.21
%
   
125,607
     
366
     
1.17
%
   
109,878
     
312
     
1.13
%
Total deposits
   
2,200,358
     
3,642
     
0.66
%
   
2,150,696
     
3,089
     
0.58
%
   
1,797,187
     
1,872
     
0.41
%
                                                                         
Total interest-bearing deposits
   
1,687,066
     
3,642
     
0.86
%
   
1,669,148
     
3,089
     
0.74
%
   
1,415,807
     
1,872
     
0.52
%
                                                                         
Other borrowings
   
127,150
     
770
     
2.40
%
   
101,829
     
573
     
2.26
%
   
30,220
     
338
     
4.44
%
                                                                         
                                                                         
Total interest-bearing liabilities
   
1,814,216
     
4,412
     
0.96
%
   
1,770,977
     
3,662
     
0.83
%
   
1,446,027
     
2,210
     
0.61
%
Total deposits and
                                                                       
other borrowings
   
2,327,508
     
4,412
     
0.75
%
   
2,252,525
     
3,662
     
0.65
%
   
1,827,407
     
2,210
     
0.48
%
                                                                         
                                                                         
Non interest-bearing liabilities
   
10,363
                     
8,952
                     
9,179
                 
Shareholders' equity
   
236,235
                     
233,547
                     
223,841
                 
Total liabilities and
                                                                       
shareholders' equity
 
$
2,574,106
                   
$
2,495,024
                   
$
2,060,427
                 
                                                                         
Net interest income
         
$
19,290
                   
$
18,796
                   
$
15,912
         
Net interest spread
                   
2.90
%
                   
2.98
%
                   
3.10
%
                                                                         
Net interest margin
                   
3.14
%
                   
3.19
%
                   
3.26
%
                                                                         
Note: The above tables are presented on a tax equivalent basis.                         
 

Republic First Bancorp, Inc.           
Average Balances and Net Interest Income           
(unaudited)         
     
                                     
                                     
                                     
   
For the nine months ended
 
For the nine months ended
(dollars in thousands)
 
September 30, 2018
 
September 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
 
$
27,625
   
$
388
     
1.88
%
 
$
36,431
   
$
312
     
1.15
%
Securities
   
1,027,614
     
20,001
     
2.60
%
   
785,121
     
14,850
     
2.52
%
Loans receivable
   
1,310,750
     
46,795
     
4.77
%
   
1,063,581
     
36,944
     
4.64
%
Total interest-earning assets
   
2,365,989
     
67,184
     
3.80
%
   
1,885,133
     
52,106
     
3.70
%
                                                 
Other assets
   
130,344
                     
112,018
                 
                                                 
Total assets
 
$
2,496,333
                   
$
1,997,151
                 
                                                 
Interest-bearing liabilities:
                                               
                                                 
Demand non interest-bearing
 
$
475,659
                   
$
355,432
                 
Demand interest-bearing
   
866,397
     
4,754
     
0.73
%
   
657,722
     
2,075
     
0.42
%
Money market & savings
   
695,386
     
3,454
     
0.66
%
   
607,822
     
2,218
     
0.49
%
Time deposits
   
127,281
     
1,121
     
1.18
%
   
107,881
     
903
     
1.12
%
Total deposits
   
2,164,723
     
9,329
     
0.58
%
   
1,728,857
     
5,196
     
0.40
%
                                                 
Total interest-bearing deposits
   
1,689,064
     
9,329
     
0.74
%
   
1,373,425
     
5,196
     
0.51
%
                                                 
Other borrowings
   
90,160
     
1,528
     
2.27
%
   
39,408
     
1,046
     
3.55
%
                                                 
                                                 
Total interest-bearing liabilities
   
1,779,224
     
10,857
     
0.82
%
   
1,412,833
     
6,242
     
0.59
%
Total deposits and
                                               
  other borrowings
   
2,254,883
     
10,857
     
0.64
%
   
1,768,265
     
6,242
     
0.47
%
                                                 
                                                 
Non interest-bearing liabilities
   
9,534
                     
8,628
                 
Shareholders' equity
   
231,916
                     
220,258
                 
Total liabilities and
                                               
shareholders' equity
 
$
2,496,333
                   
$
1,997,151
                 
                                                 
Net interest income
         
$
56,327
                   
$
45,864
         
Net interest spread
                   
2.98
%
                   
3.11
%
                                                 
Net interest margin
                   
3.18
%
                   
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)              
                                     
                                   
    Three months ended    
Year
ended
    Nine months ended  
   
September 30,
   
June 30,
   
September 30,
   
Dec 31
   
September 30,
   
September 30,
 
(dollars in thousands)
 
2018
   
2018
   
2017
   
2017
   
2018
   
2017
 
                                     
                                     
Balance at beginning of period
 
$
7,566
   
$
6,650
   
$
9,454
   
$
9,155
   
$
8,599
   
$
9,155
 
                                                 
Provision charged to operating expense
   
500
     
800
     
-
     
900
     
1,700
     
500
 
     
8,066
     
7,450
     
9,454
     
10,055
     
10,299
     
9,655
 
                                                 
Recoveries on loans charged-off:
                                               
Commercial
   
18
     
129
     
52
     
119
     
147
     
118
 
Consumer
   
1
     
1
     
-
     
1
     
2
     
1
 
Total recoveries
   
19
     
130
     
52
     
120
     
149
     
119
 
                                                 
Loans charged-off:
                                               
Commercial
   
-
     
-
     
(1,243
)
   
(1,523
)
   
(2,151
)
   
(1,504
)
Consumer
   
(1
)
   
(14
)
   
(5
)
   
(53
)
   
(213
)
   
(12
)
                                                 
Total charged-off
   
(1
)
   
(14
)
   
(1,248
)
   
(1,576
)
   
(2,364
)
   
(1,516
)
                                                 
Net charge-offs
   
18
     
116
     
(1,196
)
   
(1,456
)
   
(2,215
)
   
(1,397
)
                                                 
Balance at end of period
 
$
8,084
   
$
7,566
   
$
8,258
   
$
8,599
   
$
8,084
   
$
8,258
 
                                                 
                                                 
Net charge-offs as a percentage of
                                               
average loans outstanding
   
(0.01
%)
   
(0.04
%)
   
0.43
%
   
0.13
%
   
0.23
%
   
0.18
%
                                                 
Allowance for loan losses as a percentage
                                               
of period-end loans
   
0.59
%
   
0.57
%
   
0.75
%
   
0.74
%
   
0.59
%
   
0.75
%
 
 
 

 
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)
 
2018
   
2018
   
2018
   
2017
   
2017
 
                               
Non-accrual loans:
                             
  Commercial real estate
 
$
12,661
   
$
13,297
   
$
13,322
   
$
13,973
   
$
10,140
 
  Consumer and other
   
818
     
809
     
810
     
872
     
880
 
Total non-accrual loans
   
13,479
     
14,106
     
14,132
     
14,845
     
11,020
 
                                         
Loans past due 90 days or more
                                       
  and still accruing
   
-
     
-
     
-
     
-
     
2,730
 
                                         
Total non-performing loans
   
13,479
     
14,106
     
14,132
     
14,845
     
13,750
 
                                         
Other real estate owned
   
6,768
     
6,559
     
6,966
     
6,966
     
9,169
 
                                         
Total non-performing assets
 
$
20,247
   
$
20,665
   
$
21,098
   
$
21,811
   
$
22,919
 
                                         
                                         
Non-performing loans to total loans
   
0.98
%
   
1.07
%
   
1.13
%
   
1.28
%
   
1.26
%
                                         
Non-performing assets to total assets
   
0.76
%
   
0.81
%
   
0.85
%
   
0.94
%
   
1.07
%
                                         
Non-performing loan coverage
   
59.97
%
   
53.64
%
   
47.06
%
   
57.93
%
   
60.06
%
                                         
Allowance for loan losses as a percentage
                                       
  of total period-end loans
   
0.59
%
   
0.57
%
   
0.53
%
   
0.74
%
   
0.75
%