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): January 28, 2019
 
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 28, 2019, Republic First Bancorp, Inc. issued a press release announcing its results of operations and financial condition at and for the period ended December 31, 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: January 28, 2019
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 28, 2019


REPUBLIC FIRST BANCORP, INC. REPORTS FOURTH QUARTER FINANCIAL RESULTS
LOANS INCREASE BY 24% AND DEPOSITS GROW 16%

Philadelphia, PA, January 28, 2019 (GlobeNewswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2018.

Q4-2018 Highlights

Income before tax increased by 70% to $10.2 million for the twelve months ended December 31, 2018 compared to $6.0 million for the twelve months ended December 31, 2017. We continue to open new stores and increase profitability despite the additional costs associated with the expansion strategy.

Total deposits increased by $330 million, or 16%, to $2.4 billion as of December 31, 2018 compared to $2.1 billion as of December 31, 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, while the average deposit growth for all stores over the last twelve months was approximately $14 million per store.

Total loans grew $274 million, or 24%, to $1.4 billion as of December 31, 2018 compared to $1.2 billion at December 31, 2017.

Total revenue grew by 24% during the year ended December 31, 2018 while non-interest expense increased by 11% when compared to the year ended December 31, 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:

“2018 was another exceptional year for ‘The Power of Red is Back’ growth campaign. Four new stores were opened during 2018 using our distinctive glass prototype building. Despite the significant investments required to execute our growth and expansion strategy, we were able to demonstrate significant improvement in profitability as net income before taxes increased by 70% year over year.  Loans increased by 24% and deposits grew by 16%. Customer accounts increased 29% as we continue to welcome new Fans every day.   With the momentum we have generated in the Metro Philadelphia market combined with our expansion in to New York City during 2019 we believe the best is yet to come.”



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

“To support our growth and expansion efforts, we continue to add top talent to our team.  We’ve recently announced the addition of Joe Tredinnick as the Market President of Pennsylvania. In addition, we continue to invest in technology and enhance our product offerings. It is our goal to deliver the best banking experience through every channel…..in-store, online, and mobile options.”

A summary of the financial results for the period ended December 31, 2018 can be found in the following table:

   
Twelve Months Ended
($ in millions, except per share data)
 
12/31/18
12/31/17
% Change
         
Assets
 
$ 2,753.3
$    2,322.3
          19%
Loans
 
   1,436.6
      1,162.3
          24%
Deposits
 
   2,392.9
      2,063.3
          16%
Total Revenue
 
$    112.4
$        90.9
            24%
Income Before Tax
 
        10.2
            6.0
            70%
Net Income *
 
          8.6
            8.9
              (3%)
Net Income per Share
 
$      0.15
$        0.15
              -%

* Note:
Net income for the period ended 12/31/18 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 deferred tax asset valuation allowance recorded by the Company.

Financial Highlights for the Period Ended December 31, 2018

Total assets increased by $431 million, or 19%, to $2.8 billion as of December 31, 2018 compared to $2.3 billion as of December 31, 2017.

Demand deposits represent the fastest growing segment of the Company’s deposit base. These deposits grew by $315 million to $1.6 billion over the last 12 months, including growth of 18% in non-interest bearing demand deposit balances.

Net income before tax grew by 70% to $10.2 million for the twelve months ended December 31, 2018 compared to $6.0 million for the twelve months ended December 31, 2017.

We have twenty-five convenient store locations open today. During the fourth quarter of 2018 we opened new stores in Evesboro and Somers Point, NJ. Construction is underway on sites in Lumberton, NJ and Feasterville, PA. There are also multiple sites in various stages of development for future store locations.


2


Expansion into New York City is scheduled to begin in 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 0.60% as of December 31, 2018 compared to 0.94% as of December 31, 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 $360 million in loans during the twelve month period ended December 31, 2018.

Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy.  More than $10 million in new SBA loans were originated during the three month period ended December 31, 2018. Republic Bank is currently ranked as the #1 SBA lender in New Jersey based on the dollar volume of loan originations.

The Company’s Total Risk-Based Capital ratio was 15.03% and Tier I Leverage Ratio was 9.35% at December 31, 2018.

Book value per common share increased to $4.17 as of December 31, 2018 compared to $3.97 as of December 31, 2017.


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
 
12/31/18
12/31/17
% Change
 
12/31/18
12/31/17
% Change
Total Revenue
 $  30,181
$  24,421
  24%
 
$  112,396
$  90,946
  24%
Provision for Loan Losses
         600
        400
 50%
 
        2,300
         900
156%
Non-interest Expense
   22,057
  21,622
  2%
 
      83,721
    75,276
  11%
Income (Loss) Before Taxes
     2,211
       (143)
 n/m
 
      10,205
      5,986
  70%
Provision (Benefit) for Taxes
        54
    (2,881)
 n/m
 
       1,578
      (2,919)
   n/m
Net Income
    2,157
    2,738
(21%)
 
       8,627
      8,905
   (3%)
Net Income per Share
$     0.04  
$     0.05 
(20%)
 
$       0.15
$     0.15
   -%

3


The Company reported net income of $2.2 million, or $0.04 per share, for the three month period ended December 31, 2018, compared to $2.7 million, or $0.05 per share, for the three month period ended December 31, 2017.  Net income for the twelve month period ended December 31, 2018 was $8.6 million, or $0.15 per share, compared to net income of $8.9 million, or $0.15 per share, for the twelve months ended December 31, 2017.

During 2017, the Company recorded a benefit for federal and state income taxes due to the reversal of the deferred tax asset valuation allowance recorded on the balance sheet in the fourth quarter of last year. Income Before Taxes grew by 70% to $10.2 million during the year ended December 31, 2018, compared to $6.0 million for the year ended December 31, 2017. 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 24%, to $30.2 million for the three month period ended December 31, 2018, compared to $24.4 million for the three month period ended December 31, 2017.  Total revenue for the twelve month period ended December 31, 2018 increased by $21.5 million, or 24%, to $112.4 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 (24%) and twelve month period (24%) ended December 31, 2018 exceeded the growth in non-interest expense for the three month period (2%) and the twelve month period (11%) ended December 31, 2018 which demonstrates the effect that our growth strategy will have on the profitability of the Bank.

Non-interest expenses increased by 2%, to $22.1 million during the quarter ended December 31, 2018 compared to $21.6 million during the quarter ended December 31, 2017. Non-interest expenses increased by 11%, to $83.7 million during the twelve month period ended December 31, 2018 compared to $75.3 million during the twelve months ended December 31, 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 $54 thousand for the three month period ended December 31, 2018 compared to a benefit for income taxes in the amount of $2.9 million for the three month period ended December 31, 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.


4


Balance Sheet

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

 
Description
 
12/31/18
 
12/31/17
% Change
 
09/30/18
% Change
           
Total assets
$ 2,753,297
$ 2,322,347
19%
$ 2,657,206
4%
Total loans (net)
1,427,983
1,153,679
24%
1,370,704
4%
Total deposits
2,392,867
2,063,295
16%
2,400,358
-%

Total assets increased by $431.0 million, or 19%, as of December 31, 2018 when compared to December 31, 2017.  Deposits grew by $329.6 million to $2.4 billion as of December 31, 2018 compared to $2.1 billion as of December 31, 2017. The number of deposit accounts has grown by 29% 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
 
 
12/31/18
 
 
12/31/17
 
% Change
 
 
09/30/18
 
%
Change
4th Qtr 2018 Cost of Funds
             
Demand noninterest-bearing
$ 519,056
$ 438,500
 18%
$ 509,188
       2%
0.00%
Demand interest-bearing
1,042,561
807,736
  29%
1,058,670
     (2%)
1.18%
Money market and savings
676,993
700,322
   3%
703,358
      (4%)
0.82%
Certificates of deposit
154,257
116,737
   32%
129,142
     19%
1.39%
Total deposits
$ 2,392,867
$2,063,295
 16%
$ 2,400,358
       -%
0.83%
             

Deposits increased to $2.4 billion at December 31, 2018 compared to $2.1 billion at December 31, 2017 as the Company moves forward with its growth strategy to increase the number of stores and expand the reach of 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 strong growth in demand deposit balances, including an increase in non-interest bearing demand deposits of 18%, year over year as a result of the successful execution of its strategy.


5


Lending

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

 
Description
 
12/31/18
% of Total
 
12/31/17
% of Total
 
09/30/18
% of
Total
             
Commercial real estate
$ 515,738
36%
$ 433,304
37%
$495,529
36%
Construction and land development
121,042
8%
104,617
9%
125,512
9%
Commercial and industrial
200,423
14%
173,343
15%
195,493
14%
Owner occupied real estate
367,895
26%
309,838
27%
358,956
26%
Consumer and other
91,136
6%
76,412
7%
86,922
6%
Residential mortgage
140,364
10%
64,764
5%
116,376
9%
Gross loans
$1,436,598
100%
$1,162,278
100%
$1,378,788
100%
             

Gross loans increased by $274 million, or 24%, to $1.4 billion at December 31, 2018 compared to $1.2 billion at December 31, 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
 
12/31/18
09/30/18
12/31/17
       
Non-performing assets / capital and reserves
     7%
      8%
     9%
Non-performing assets / total assets
0.60%
 0.76%
0.94%
Quarterly net loan charge-offs / average loans
0.02%
(0.01%)
0.02%
Allowance for loan losses / gross loans
0.60%
 0.59%
0.74%
Allowance for loan losses / non-performing loans
   83%
    60%
   58%

The percentage of non-performing assets to total assets decreased to 0.60% at December 31, 2018, compared to 0.94% at December 31, 2017.  The ratio of non-performing assets to capital and reserves decreased to 7% at December 31, 2018 compared to 9% at December 31, 2017 primarily as a result of decreases in non-performing assets over the last 12 months.


6



Capital

The Company’s capital ratios at December 31, 2018 were as follows:

 
Actual
12/31/18
Bancorp
Actual
12/31/18
Bank
Regulatory Guidelines
“Well Capitalized”
       
Leverage Ratio
    9.35%
    8.21%
5.00%
Common Equity Ratio
  13.90%
  12.77%
6.50%
Tier 1 Risk Based Capital
  14.53%
  12.77%
8.00%
Total Risk Based Capital
  15.03%
  13.26%
10.00%
Tangible Common Equity
    8.74%
    7.88%
n/a

Total shareholders’ equity increased to $245 million at December 31, 2018 compared to $226 million at December 31, 2017. Book value per common share increased to $4.17 at December 31, 2018 compared to $3.97 per share at December 31, 2017.

Analyst and Investor Call

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

   
Date:
January 28, 2019
Time:
10:00am (EDT)
From the U.S. dial:
(866) 436-9172 [Toll Free] or (630) 691-2760
Participant Pin:
48161934#
   
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-five 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.



7


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


8


Republic First Bancorp, Inc.
                 
Consolidated Balance Sheets
                 
(Unaudited)
                 
                   
   
December 31,
   
September 30,
   
December 31,
 
(dollars in thousands, except per share amounts)
 
2018
   
2018
   
2017
 
                   
ASSETS
                 
Cash and due from banks
 
$
35,685
   
$
37,303
   
$
36,073
 
Interest-bearing deposits and federal funds sold
   
36,788
     
108,996
     
25,869
 
Total cash and cash equivalents
   
72,473
     
146,299
     
61,942
 
                         
Securities - Available for sale
   
321,014
     
487,524
     
464,430
 
Securities - Held to maturity
   
761,563
     
485,291
     
472,213
 
Restricted stock
   
5,754
     
1,916
     
1,918
 
Total investment securities
   
1,088,331
     
974,731
     
938,561
 
                         
Loans held for sale
   
26,291
     
32,839
     
45,700
 
                         
Loans receivable
   
1,436,598
     
1,378,788
     
1,162,278
 
Allowance for loan losses
   
(8,615
)
   
(8,084
)
   
(8,599
)
Net loans
   
1,427,983
     
1,370,704
     
1,153,679
 
                         
Premises and equipment
   
87,661
     
81,912
     
74,947
 
Other real estate owned
   
6,223
     
6,768
     
6,966
 
Other assets
   
44,335
     
43,953
     
40,552
 
                         
Total Assets
 
$
2,753,297
   
$
2,657,206
   
$
2,322,347
 
                         
                         
                         
LIABILITIES
                       
Non-interest bearing deposits
 
$
519,056
   
$
509,188
   
$
438,500
 
Interest bearing deposits
   
1,873,811
     
1,891,170
     
1,624,795
 
Total deposits
   
2,392,867
     
2,400,358
     
2,063,295
 
                         
Short-term borrowings
   
91,422
     
-
     
-
 
Subordinated debt
   
11,259
     
11,257
     
21,681
 
Other liabilities
   
12,560
     
9,767
     
10,911
 
                         
Total Liabilities
   
2,508,108
     
2,421,382
     
2,095,887
 
                         
SHAREHOLDERS' EQUITY
                       
Common stock - $0.01 par value
   
593
     
593
     
575
 
Additional paid-in capital
   
269,147
     
268,613
     
256,285
 
Accumulated deficit
   
(8,716
)
   
(10,873
)
   
(18,983
)
Treasury stock at cost
   
(3,725
)
   
(3,725
)
   
(3,725
)
Stock held by deferred compensation plan
   
(183
)
   
(183
)
   
(183
)
Accumulated other comprehensive loss
   
(11,927
)
   
(18,601
)
   
(7,509
)
                         
Total Shareholders' Equity
   
245,189
     
235,824
     
226,460
 
                         
Total Liabilities and Shareholders' Equity
 
$
2,753,297
   
$
2,657,206
   
$
2,322,347
 


9


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)
 
2018
   
2018
   
2017
   
2018
   
2017
 
                               
INTEREST INCOME
                             
Interest and fees on loans
 
$
17,555
   
$
16,764
   
$
13,576
   
$
64,045
   
$
50,094
 
Interest and dividends on investment securities
   
7,279
     
6,641
     
5,568
     
27,182
     
20,178
 
Interest on other interest earning assets
   
459
     
153
     
265
     
847
     
577
 
Total interest income
   
25,293
     
23,558
     
19,409
     
92,074
     
70,849
 
                                         
INTEREST EXPENSE
                                       
Interest on deposits
   
5,103
     
3,642
     
2,222
     
14,432
     
7,418
 
Interest on borrowed funds
   
210
     
770
     
320
     
1,738
     
1,366
 
Total interest expense
   
5,313
     
4,412
     
2,542
     
16,170
     
8,784
 
                                         
Net interest income
   
19,980
     
19,146
     
16,867
     
75,904
     
62,065
 
Provision for loan losses
   
600
     
500
     
400
     
2,300
     
900
 
                     
.
                 
Net interest income after provision for loan losses
   
19,380
     
18,646
     
16,467
     
73,604
     
61,165
 
                                         
NON-INTEREST INCOME
                                       
Service fees on deposit accounts
   
1,589
     
1,386
     
1,084
     
5,476
     
3,904
 
Mortgage banking income
   
2,285
     
2,580
     
2,619
     
10,233
     
11,170
 
Gain on sale of SBA loans
   
451
     
816
     
1,063
     
3,105
     
3,378
 
Loss on sale of investment securities
   
(66
)
   
-
     
(85
)
   
(67
)
   
(146
)
Other non-interest income
   
629
     
349
     
331
     
1,575
     
1,791
 
Total non-interest income
   
4,888
     
5,131
     
5,012
     
20,322
     
20,097
 
                                         
NON-INTEREST EXPENSE
                                       
Salaries and employee benefits
   
11,351
     
11,203
     
10,159
     
44,082
     
37,959
 
Occupancy and equipment
   
3,410
     
3,260
     
2,947
     
13,493
     
11,774
 
Legal and professional fees
   
642
     
773
     
953
     
3,033
     
2,877
 
Foreclosed real estate
   
707
     
378
     
2,388
     
1,588
     
4,092
 
Regulatory assessments and related fees
   
417
     
396
     
359
     
1,675
     
1,367
 
Other operating expenses
   
5,530
     
4,823
     
4,816
     
19,850
     
17,207
 
Total non-interest expense
   
22,057
     
20,833
     
21,622
     
83,721
     
75,276
 
                                         
Income (loss) before benefit for income taxes
   
2,211
     
2,944
     
(143
)
   
10,205
     
5,986
 
                                         
Provision (benefit) for income taxes
   
54
     
622
     
(2,881
)
   
1,578
     
(2,919
)
                                         
Net income
 
$
2,157
   
$
2,322
   
$
2,738
   
$
8,627
   
$
8,905
 
                                         
                                         
Net Income per Common Share
                                       
Basic
 
$
0.04
   
$
0.04
   
$
0.05
   
$
0.15
   
$
0.16
 
Diluted
 
$
0.04
   
$
0.04
   
$
0.05
   
$
0.15
   
$
0.15
 
                                         
Average Common Shares Outstanding
                                       
Basic
   
58,789
     
58,774
     
56,988
     
58,358
     
56,933
 
Diluted
   
59,672
     
59,774
     
58,360
     
59,407
     
58,250
 


10

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, 2018
   
September 30, 2018
   
December 31, 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
 
$
80,416
   
$
459
     
2.26
%
 
$
29,163
   
$
153
     
2.08
%
 
$
82,918
   
$
265
     
1.27
%
Securities
   
1,068,065
     
7,315
     
2.74
%
   
1,018,910
     
6,676
     
2.62
%
   
888,862
     
5,616
     
2.53
%
Loans receivable
   
1,427,260
     
17,660
     
4.91
%
   
1,390,894
     
16,873
     
4.81
%
   
1,171,771
     
13,743
     
4.65
%
Total interest-earning assets
   
2,575,741
     
25,434
     
3.92
%
   
2,438,967
     
23,702
     
3.86
%
   
2,143,551
     
19,624
     
3.63
%
                                                                         
Other assets
   
134,411
                     
135,139
                     
126,904
                 
                                                                         
Total assets
 
$
2,710,152
                   
$
2,574,106
                   
$
2,270,455
                 
                                                                         
Interest-bearing liabilities:
                                                                       
                                                                         
Demand non interest-bearing
 
$
528,568
                   
$
513,292
                   
$
421,841
                 
Demand interest-bearing
   
1,073,140
     
3,192
     
1.18
%
   
861,607
     
1,948
     
0.90
%
   
776,203
     
945
     
0.48
%
Money market & savings
   
702,322
     
1,444
     
0.82
%
   
699,081
     
1,308
     
0.74
%
   
693,684
     
942
     
0.54
%
Time deposits
   
133,675
     
467
     
1.39
%
   
126,378
     
386
     
1.21
%
   
120,067
     
335
     
1.11
%
Total deposits
   
2,437,705
     
5,103
     
0.83
%
   
2,200,358
     
3,642
     
0.66
%
   
2,011,795
     
2,222
     
0.44
%
                                                                         
Total interest-bearing deposits
   
1,909,137
     
5,103
     
1.06
%
   
1,687,066
     
3,642
     
0.86
%
   
1,589,954
     
2,222
     
0.55
%
                                                                         
Other borrowings
   
24,354
     
210
     
3.42
%
   
127,150
     
770
     
2.40
%
   
23,621
     
320
     
5.37
%
                                                                         
                                                                         
Total interest-bearing liabilities
   
1,933,491
     
5,313
     
1.09
%
   
1,814,216
     
4,412
     
0.96
%
   
1,613,575
     
2,542
     
0.63
%
Total deposits and
                                                                       
  other borrowings
   
2,462,059
     
5,313
     
0.86
%
   
2,327,508
     
4,412
     
0.75
%
   
2,035,416
     
2,542
     
0.50
%
                                                                         
                                                                         
Non interest-bearing liabilities
   
9,690
                     
10,363
                     
9,560
                 
Shareholders' equity
   
238,403
                     
236,235
                     
225,479
                 
Total liabilities and
                                                                       
shareholders' equity
 
$
2,710,152
                   
$
2,574,106
                   
$
2,270,455
                 
                                                                         
Net interest income
         
$
20,121
                   
$
19,290
                   
$
17,082
         
Net interest spread
                   
2.83
%
                   
2.90
%
                   
3.00
%
                                                                         
Net interest margin
                   
3.10
%
                   
3.14
%
                   
3.16
%
                                                                         
Note: The above tables are presented on a tax equivalent basis.
                                         


11

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, 2018
   
December 31, 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
 
$
40,931
   
$
847
     
2.07
%
 
$
48,148
   
$
577
     
1.20
%
Securities
   
1,037,810
     
27,316
     
2.63
%
   
811,269
     
20,466
     
2.52
%
Loans receivable
   
1,340,117
     
64,455
     
4.81
%
   
1,090,851
     
50,687
     
4.65
%
Total interest-earning assets
   
2,418,858
     
92,618
     
3.83
%
   
1,950,268
     
71,730
     
3.68
%
                                                 
Other assets
   
131,369
                     
115,770
                 
                                                 
Total assets
 
$
2,550,227
                   
$
2,066,038
                 
                                                 
Interest-bearing liabilities:
                                               
                                                 
Demand non interest-bearing
 
$
488,995
                   
$
372,171
                 
Demand interest-bearing
   
918,508
     
7,946
     
0.87
%
   
687,586
     
3,020
     
0.44
%
Money market & savings
   
697,135
     
4,898
     
0.70
%
   
629,464
     
3,160
     
0.50
%
Time deposits
   
128,892
     
1,588
     
1.23
%
   
110,952
     
1,238
     
1.12
%
Total deposits
   
2,233,530
     
14,432
     
0.65
%
   
1,800,173
     
7,418
     
0.41
%
                                                 
Total interest-bearing deposits
   
1,744,535
     
14,432
     
0.83
%
   
1,428,002
     
7,418
     
0.52
%
                                                 
Other borrowings
   
73,573
     
1,738
     
2.36
%
   
35,429
     
1,366
     
3.86
%
                                                 
                                                 
Total interest-bearing liabilities
   
1,818,108
     
16,170
     
0.89
%
   
1,463,431
     
8,784
     
0.60
%
Total deposits and other borrowings
   
2,307,103
     
16,170
     
0.70
%
   
1,835,602
     
8,784
     
0.48
%
                                                 
                                                 
Non interest-bearing liabilities
   
9,431
                     
8,942
                 
Shareholders' equity
   
233,693
                     
221,494
                 
Total liabilities and shareholders' equity
 
$
2,550,227
                   
$
2,066,038
                 
                                                 
Net interest income
         
$
76,448
                   
$
62,946
         
Net interest spread
                   
2.94
%
                   
3.08
%
                                                 
Net interest margin
                   
3.16
%
                   
3.23
%
                                                 
Note: The above tables are presented on a tax equivalent basis.
                         


12

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)
 
2018
   
2018
   
2017
   
2018
   
2017
 
                               
Balance at beginning of period
 
$
8,084
   
$
7,566
   
$
8,258
   
$
8,599
   
$
9,155
 
                                         
Provision charged to operating expense
   
600
     
500
     
400
     
2,300
     
900
 
     
8,684
     
8,066
     
8,658
     
10,899
     
10,055
 
                                         
Recoveries on loans charged-off:
                                       
  Commercial
   
5
     
18
     
1
     
152
     
119
 
  Consumer
   
-
     
1
     
-
     
2
     
1
 
Total recoveries
   
5
     
19
     
1
     
154
     
120
 
                                         
Loans charged-off:
                                       
  Commercial
   
(68
)
   
-
     
(19
)
   
(2,219
)
   
(1,523
)
  Consumer
   
(6
)
   
(1
)
   
(41
)
   
(219
)
   
(53
)
                                         
Total charged-off
   
(74
)
   
(1
)
   
(60
)
   
(2,438
)
   
(1,576
)
                                         
Net (charge-offs) recoveries
   
(69
)
   
18
     
(59
)
   
(2,284
)
   
(1,456
)
                                         
Balance at end of period
 
$
8,615
   
$
8,084
   
$
8,599
   
$