EX-99.1 2 ex99-1.htm EXHIBIT 99.1

Exhibit 99.1


 
News Release
 
Republic First Bancorp, Inc.
 
July 29, 2019

REPUBLIC FIRST BANCORP, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
DEPOSITS INCREASE BY 18% AND LOANS GROW 15% WITH NEW YORK EXPANSION OFFICIALLY UNDERWAY

Philadelphia, PA, July 29, 2019 (GlobeNewswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2019.

Q2-2019 Highlights

•
Total deposits increased by $394 million, or 18%, to $2.5 billion as of June 30, 2019 compared to $2.1 billion as of June 30, 2018.

•
New stores opened since the beginning of the “Power of Red is Back” expansion campaign are currently growing deposits at an average rate of $25 million per year, while the average deposit growth for all stores over the last twelve months was approximately $14 million per store.

•
Expansion into New York City began with the opening of our first store located on the corner of 14th Street and 5th Avenue.

•
Total loans grew $191 million, or 15%, to $1.5 billion as of June 30, 2019 compared to $1.3 billion at June 30, 2018.

•
Net income declined to $0.8 million, or $0.01 per share, for the six month period ended June 30, 2019 compared to $4.1 million, or $0.07 per share for the six month period ended June 30, 2018.



“The Power of Red is Back” expansion strategy launched in New York City with the opening of our newest store on the corner of 14th Street and 5th Avenue. On July 12th we celebrated the grand opening of our first store in New York by welcoming Customers – and their pets – with a fun-filled day that included live entertainment, music and gifts. We also continued our expansion in Bucks County with the opening of our store in Feasterville, PA during the second quarter.

Profitability in 2019 continues to be hampered by a number of factors. Similar to the first quarter, net income in the second quarter was impacted by the costs necessary to initiate our expansion into New York City which includes the hiring of a management and lending team for this new market, along with the training and development costs for the new store openings. We also continue to feel the effect of a flat or inverted yield curve which has resulted in compression of the net interest margin.


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

“The Power of Red is Back in New York City. The recent opening of our first store at 14th & 5th was a tremendous success. We are thrilled to bring back the legendary banking experience that our FANS in New York have been missing for the last several years. At a time when most banks are shuttering branches and retreating from the communities they serve, Republic Bank continues in its relentless pursuit to deliver an unmatched banking experience across every delivery channel. This not only includes the in-store experience, but online and mobile options as well.”

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

“Our strong growth since the inception of our expansion campaign demonstrates the success of the Republic model. Assets, loans and deposits have consistently grown at levels significantly above industry standards. We see significant opportunities to expand our footprint and create new FANS as our competitors continue to alienate customers with declining levels of service and fewer branch locations.”

A summary of the financial results for the period ended June 30, 2019 can be found in the following table:

   
Six Months Ended
($ in millions, except per share data)
  
06/30/19
06/30/18
% Change
         
Assets
  
$ 2,941.0
$    2,552.9
          15%
Loans
  
   1,508.7
      1,317.6
          15%
Deposits
  
   2,528.0
      2,134.1
          18%
Total Revenue
  
$     50.5
$        47.1
             7%
Income Before Tax
  
          1.0
            5.1
            (80%)
Net Income
  
          0.8
            4.1
            (81%)
Net Income per Share
  
$      0.01
$        0.07
            (86%)


Financial Highlights for the Period Ended June 30, 2019

•
Total assets increased by $388 million, or 15%, to $2.9 billion as of June 30, 2019 compared to $2.6 billion as of June 30, 2018.

•
We have twenty-eight convenient store locations open today. During the second quarter of 2019 we continued our expansion into Buck County with the opening of our new store in Feasterville, PA.  There are also multiple sites in various stages of development for future store locations.

•
Expansion into New York City began in July 2019 with the grand opening of our first store location at 14th Street & 5th Avenue in Manhattan. We’ve also started construction on our next site in New York located at 51st Street & 3rd Avenue which is expected to open during the fourth quarter.


2


•
Net income remained at $0.4 million, or $0.01 per share, for the three months ended June 30, 2019 compared to $0.4 million, or $0.01 per share for the three months ended March 31, 2019 and declined from $2.4 million, or $0.04 per share, for the three months ended June 30, 2018.

•
The net interest margin decreased by 25 basis points to 2.94% for the three months ended June 30, 2019 compared to 3.19% for the three months ended June 30, 2018. Margin compression was driven by the flat and inverted yield curve experienced during the second quarter of 2019.

•
Asset quality continues to improve. The ratio of non-performing assets to total assets declined to 0.53% as of June 30, 2019 compared to 0.81% as of June 30, 2018.

•
The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. The Oak Mortgage team has originated more than $370 million in mortgage loans over the last twelve months.

•
Meeting the needs of small business customers continued to be an important part of the Company’s lending strategy.  More than $27 million in new SBA loans were originated during the six month period ended June 30, 2019. Republic Bank continues to be a top SBA lender in our market area based on the dollar volume of loan originations.

•
The Company’s Total Risk-Based Capital ratio was 14.02% and Tier I Leverage Ratio was 8.97% at June 30, 2019.

•
Book value per common share increased to $4.27 as of June 30, 2019 compared to $4.01 as of June 30, 2018.

Income Statement

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


    Three Months Ended    Three Months Ended 
   
06/30/19
    
03/31/19
    
% Change
  
06/30/19
    
06/30/18
    
% Change
Net Interest Income
  
$
19,371
    
$
19,140
      
1
%
  
$
19,371
    
$
18,662
      
4
%
Non-interest Income
    
7,026
      
4,945
      
42
%
    
7,026
      
5,768
      
22
%
Provision for Loan Losses
    
-
      
300
      
n/
m
    
-
      
800
      
n/
m
Non-interest Expense
    
25,911
      
23,267
      
11
%
    
25,911
      
20,729
      
25
%
Income Before Taxes
    
486
      
518
      
(6
%)
    
486
      
2,901
      
(83
%)
Provision (Benefit) for Taxes
    
105
      
92
      
14
%
    
105
      
530
      
(80
%)
Net Income
    
381
      
426
      
(11
%)
    
381
      
2,371
      
(84
%)
Net Income per Share
  
$
0.01
    
$
0.01
      
(0
%)
  
$
0.01
    
$
0.04
      
(75
%)


3

   
Six Months Ended
   
06/30/19
    
06/30/18
    
% Change
Net Interest Income
  
$
38,511
    
$
36,778
      
5
%
Non-interest Income
    
11,971
      
10,303
      
16
%
Provision for Loan Losses
    
300
      
1,200
      
(75
%)
Non-interest Expense
    
49,178
      
40,831
      
20
%
Income Before Taxes
    
1,004
      
5,050
      
(80
%)
Provision (Benefit) for Taxes
    
197
      
902
      
(78
%)
Net Income
    
807
      
4,148
      
(81
%)
Net Income per Share
  
$
0.01
    
$
0.07
      
(86
%)


The Company reported net income of $381 thousand, or $0.01 per share, for the three month period ended June 30, 2019, compared to $426 thousand, or $0.01 per share for the three month period ended March 31, 2019 and $2.4 million, or $0.04 per share, for the three month period ended June 30, 2018.  Net income for the six month period ended June 30, 2019 was $807 thousand, or $0.01 per share, compared to net income of $4.1 million, or $0.07 per share, for the six months ended June 30, 2018.

On a linked quarter basis net income was consistent at $0.4 million for the first and second quarter of 2019. Year over year net income declined to $0.4 million in the second quarter of 2019 from $2.4 in the second quarter of 2018. Current year profitability has been impacted by the expenses incurred to expand into the New York market and continued compression of the net interest margin.

Interest income increased by $3.9 million, or 18%, to $26.2 million for the quarter ended June 30, 2019 compared to $22.3 million for the quarter ended June 30, 2018. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion strategy. However, interest expense increased by $3.2 million, or 88%, to $6.9 million for the quarter ended June 30, 2019 compared to $3.7 million for the quarter ended June 30, 2018. The increase in interest expense was driven by multiple increases in the fed funds rate during 2018 which resulted in a higher cost of funds on deposit balances and led to compression in the net interest margin. The net interest margin for the three month period ended June 30, 2019 decreased by 25 basis points to 2.94% compared to 3.19% for the three month period ended June 30, 2018.

Non-interest income increased by $1.3 million, or 22%, to $7.0 million for the three month period ended June 30, 2019, compared to $5.8 million for the three month period ended June 30, 2018. The increase is primarily attributable to higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts. An increase in gains on sales of SBA loans and investment securities also contributed to the increase in non-interest income during the second quarter of 2019.

Non-interest expenses increased by 25%, to $25.9 million during the quarter ended June 30, 2019 compared to $20.7 million during the quarter ended June 30, 2018. The growth in expenses was 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. We’ve also begun to incur costs related to the expansion into the New York market as we hire a management and lending team and commence rent payments for the build out of our store locations.


4

The provision for income taxes was $105 thousand for the three month period ended June 30, 2019 compared to a provision for income taxes in the amount of $530 thousand for the three month period ended June 30, 2018.

Balance Sheet

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

 
Description
  
06/30/19
    
06/30/18
    
%
Change
  
03/31/19
    
%
Change
                               
Total assets
  
$
2,940,986
    
$
2,552,920
      
15
%
  
$
2,805,060
      
5
%
Total loans (net)
    
1,500,664
      
1,310,012
      
15
%
    
1,469,186
      
2
%
Total deposits
    
2,527,977
      
2,134,141
      
18
%
    
2,478,953
      
2
%

Total assets increased by $388.1 million, or 15%, as of June 30, 2019 when compared to June 30, 2018.  Deposits grew by $393.8 million to $2.5 billion as of June 30, 2019 compared to $2.1 billion as of June 30, 2018. The number of deposit accounts has grown by 27% 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
  
06/30/19
    
06/30/18
    
%
Change
  
03/31/19
    
%
Change
  
2nd Qtr 2019 Cost of Funds
                                     
Demand noninterest-bearing
  
$
544,406
    
$
526,650
      
3
%
  
$
525,645
      
4
%
    
0.00
%
Demand interest-bearing
    
1,072,415
      
785,513
      
37
%
    
1,101,129
      
(3
%)
    
1.47
%
Money market and savings
    
719,075
      
698,182
      
3
%
    
691,351
      
4
%
    
0.94
%
Certificates of deposit
    
192,081
      
123,796
      
55
%
    
160,828
      
19
%
    
1.95
%
Total deposits
  
$
2,527,977
    
$
2,134,141
      
18
%
  
$
2,478,953
      
2
%
    
1.06
%
                                                 

Deposits increased to $2.5 billion at June 30, 2019 compared to $2.1 billion at June 30, 2018 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 and certificates of deposit, 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
  
06/30/19
    
% of
Total
  
06/30/18
    
% of
Total
  
03/31/19
    
% of
Total
                                     
Commercial real estate
  
$
553,644
      
37
%
  
$
489,574
      
37
%
  
$
527,004
      
36
%
Construction and land development
    
111,474
      
7
%
    
120,165
      
9
%
    
124,124
      
8
%
Commercial and industrial
    
189,632
      
13
%
    
188,254
      
14
%
    
204,637
      
14
%
Owner occupied real estate
    
381,852
      
25
%
    
335,871
      
26
%
    
376,845
      
26
%
Consumer and other
    
98,155
      
6
%
    
83,606
      
6
%
    
92,728
      
6
%
Residential mortgage
    
173,963
      
12
%
    
100,108
      
8
%
    
151,748
      
10
%
Gross loans
  
$
1,508,720
      
100
%
  
$
1,317,578
      
100
%
  
$
1,477,086
      
100
%
                                                 

Gross loans increased by $191 million, or 15%, to $1.5 billion at June 30, 2019 compared to $1.3 billion at June 30, 2018 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 strongest growth in commercial real estate, owner occupied real estate and residential mortgage loans year over year.


Asset Quality

The Company’s asset quality ratios are highlighted below:

 
Three Months Ended
 
06/30/19
03/31/19
06/30/18
       
Non-performing assets / capital and reserves
6%
7%
9%
Non-performing assets / total assets
0.53%
0.60%
0.81%
Quarterly net loan charge-offs / average loans
(0.04%)
0.28%
(0.04%)
Allowance for loan losses / gross loans
0.53%
0.53%
0.57%
Allowance for loan losses / non-performing loans
86%
74%
54%


6

The percentage of non-performing assets to total assets decreased to 0.53% at June 30, 2019, compared to 0.81% at June 30, 2018.  The ratio of non-performing assets to capital and reserves decreased to 6% at June 30, 2019 compared to 9% at June 30, 2018 primarily as a result of decreases in non-performing assets over the last 12 months.

Capital

The Company’s capital ratios at June 30, 2019 were as follows:
Actual
06/30/19
Bancorp
Actual
06/30/19
Bank
Regulatory
Guidelines
“Well Capitalized”
       
Leverage Ratio
    8.97%
    8.57%
5.00%
Common Equity Ratio
  13.01%
  12.99%
6.50%
Tier 1 Risk Based Capital
  13.59%
  12.99%
8.00%
Total Risk Based Capital
  14.02%
  13.42%
10.00%
Tangible Common Equity
    8.39%
    8.27%
n/a

Total shareholders’ equity increased to $251 million at June 30, 2019 compared to $235 million at June 30, 2018. Book value per common share increased to $4.27 at June 30, 2019 compared to $4.01 per share at June 30, 2018.


Analyst and Investor Call

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


 Date:
 July 29, 2019
 
 Time:
 10:00am (EDT)
 
 From the U.S. dial:
 (888) 771-4371 [Toll Free] or (847) 585-4405
 Participant Pin:  48871378#  

An operator will assist you in joining the call.



7

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-eight stores located in the Greater Philadelphia, Southern New Jersey and New York City markets.  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, 2018 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)
                  
                   
   
June 30,
    
March 31,
    
June 30,
  
(dollars in thousands, except per share amounts)
  
2019
    
2019
    
2018
  
                   
ASSETS
                  
Cash and due from banks
  
$
38,770
    
$
31,511
    
$
29,363
  
Interest-bearing deposits and federal funds sold
    
90,744
      
54,394
      
29,991
  
Total cash and cash equivalents
    
129,514
      
85,905
      
59,354
  
                         
Securities - Available for sale
    
338,286
      
287,694
      
502,021
  
Securities - Held to maturity
    
718,534
      
742,435
      
503,742
  
Restricted stock
    
5,130
      
2,097
      
8,379
  
Total investment securities
    
1,061,950
      
1,032,226
      
1,014,142
  
                         
Loans held for sale
    
23,412
      
15,742
      
39,301
  
                         
Loans receivable
    
1,508,720
      
1,477,086
      
1,317,578
  
Allowance for loan losses
    
(8,056
)
    
(7,900
)
    
(7,566
)
Net loans
    
1,500,664
      
1,469,186
      
1,310,012
  
                         
Premises and equipment
    
105,311
      
94,390
      
80,069
  
Other real estate owned
    
6,406
      
6,088
      
6,559
  
Other assets
    
113,729
      
101,523
      
43,483
  
                         
Total Assets
  
$
2,940,986
    
$
2,805,060
    
$
2,552,920
  
                         
                         
                         
LIABILITIES
                        
Non-interest bearing deposits
  
$
544,406
    
$
525,645
    
$
526,650
  
Interest bearing deposits
    
1,983,571
      
1,953,308
      
1,607,491
  
Total deposits
    
2,527,977
      
2,478,953
      
2,134,141
  
                         
Short-term borrowings
    
68,979
      
-
      
161,669
  
Subordinated debt
    
11,262
      
11,260
      
11,256
  
Other liabilities
    
81,410
      
66,462
      
10,520
  
                         
Total Liabilities
    
2,689,628
      
2,556,675
      
2,317,586
  
                         
SHAREHOLDERS' EQUITY
                        
Common stock - $0.01 par value
    
594
      
593
      
593
  
Additional paid-in capital
    
270,789
      
270,155
      
267,974
  
Accumulated deficit
    
(7,909
)
    
(8,290
)
    
(13,195
)
Treasury stock at cost
    
(3,725
)
    
(3,725
)
    
(3,725
)
Stock held by deferred compensation plan
    
(183
)
    
(183
)
    
(183
)
Accumulated other comprehensive loss
    
(8,208
)
    
(10,165
)
    
(16,130
)
                         
Total Shareholders' Equity
    
251,358
      
248,385
      
235,334
  
                         
                         
Total Liabilities and Shareholders' Equity
  
$
2,940,986
    
$
2,805,060
    
$
2,552,920
  


9

Republic First Bancorp, Inc.
  
Consolidated Statements of Income
  
(Unaudited)
                              
                               
   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
March 31,
    
June 30,
    
June 30,
    
June 30,
  
(in thousands, except per share amounts)
  
2019
    
2019
    
2018
    
2019
    
2018
  
                               
INTEREST INCOME
                              
Interest and fees on loans
  
$
18,569
    
$
17,800
    
$
15,457
    
$
36,369
    
$
29,726
  
Interest and dividends on investment securities
    
7,158
      
7,383
      
6,804
      
14,541
      
13,262
  
Interest on other interest earning assets
    
518
      
336
      
63
      
854
      
235
  
Total interest income
    
26,245
      
25,519
      
22,324
      
51,764
      
43,223
  
                                         
INTEREST EXPENSE
                                        
Interest on deposits
    
6,695
      
6,014
      
3,089
      
12,709
      
5,687
  
Interest on borrowed funds
    
179
      
365
      
573
      
544
      
758
  
Total interest expense
    
6,874
      
6,379
      
3,662
      
13,253
      
6,445
  
                                         
Net interest income
    
19,371
      
19,140
      
18,662
      
38,511
      
36,778
  
Provision for loan losses
    
-
      
300
      
800
      
300
      
1,200
  
                                         
Net interest income after provision for loan losses
    
19,371
      
18,840
      
17,862
      
38,211
      
35,578
  
                                         
NON-INTEREST INCOME
                                        
Service fees on deposit accounts
    
1,848
      
1,612
      
1,326
      
3,460
      
2,501
  
Mortgage banking income
    
3,031
      
2,220
      
3,182
      
5,251
      
5,368
  
Gain on sale of SBA loans
    
1,147
      
502
      
846
      
1,649
      
1,838
  
Gain (loss) on sale of investment securities
    
261
      
322
      
(1
)
    
583
      
(1
)
Other non-interest income
    
739
      
289
      
415
      
1,028
      
597
  
Total non-interest income
    
7,026
      
4,945
      
5,768
      
11,971
      
10,303
  
                                         
NON-INTEREST EXPENSE
                                        
Salaries and employee benefits
    
13,705
      
12,359
      
10,883
      
26,064
      
21,528
  
Occupancy and equipment
    
4,221
      
4,015
      
3,353
      
8,236
      
6,823
  
Legal and professional fees
    
1,058
      
707
      
859
      
1,765
      
1,618
  
Foreclosed real estate
    
517
      
337
      
192
      
854
      
503
  
Regulatory assessments and related fees
    
421
      
421
      
395
      
842
      
862
  
Other operating expenses
    
5,989
      
5,428
      
5,047
      
11,417
      
9,497
  
Total non-interest expense
    
25,911
      
23,267
      
20,729
      
49,178
      
40,831
  
                                         
Income before provision for income taxes
    
486
      
518
      
2,901
      
1,004
      
5,050
  
                                         
Provision for income taxes
    
105
      
92
      
530
      
197
      
902
  
                                         
Net income
  
$
381
    
$
426
    
$
2,371
    
$
807
    
$
4,148
  
                                         
                                         
Net Income per Common Share
                                        
Basic
  
$
0.01
    
$
0.01
    
$
0.04
    
$
0.01
    
$
0.07
  
Diluted
  
$
0.01
    
$
0.01
    
$
0.04
    
$
0.01
    
$
0.07
  
                                         
Average Common Shares Outstanding
                                        
Basic
    
58,841
      
58,805
      
58,746
      
58,823
      
57,927
  
Diluted
    
59,401
      
59,587
      
59,911
      
59,501
      
59,147
  


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)
  
June 30, 2019
    
March 31, 2019
    
June 30, 2018
  
                                                       
         
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
  
$
85,920
    
$
518
      
2.42
%
  
$
55,369
    
$
336
      
2.46
%
  
$
13,412
    
$
63
      
1.88
%
Securities
    
1,067,185
      
7,184
      
2.69
%
    
1,085,910
      
7,420
      
2.73
%
    
1,048,291
      
6,838
      
2.61
%
Loans receivable
    
1,509,177
      
18,681
      
4.96
%
    
1,468,640
      
17,911
      
4.95
%
    
1,304,244
      
15,557
      
4.78
%
Total interest-earning assets
    
2,662,282
      
26,383
      
3.97
%
    
2,609,919
      
25,667
      
3.99
%
    
2,365,947
      
22,458
      
3.81
%
                                                                         
Other assets
    
217,685
                      
190,855
                      
129,077
                  
                                                                         
Total assets
  
$
2,879,967
                    
$
2,800,774
                    
$
2,495,024
                  
                                                                         
Interest-bearing liabilities:
                                                                        
                                                                         
Demand non interest-bearing
  
$
525,336
                    
$
512,172
                    
$
481,548
                  
Demand interest-bearing
    
1,144,783
      
4,206
      
1.47
%
    
1,113,758
      
3,938
      
1.43
%
    
844,405
      
1,549
      
0.74
%
Money market & savings
    
697,279
      
1,628
      
0.94
%
    
675,506
      
1,452
      
0.87
%
    
699,136
      
1,174
      
0.67
%
Time deposits
    
176,750
      
861
      
1.95
%
    
153,832
      
624
      
1.65
%
    
125,607
      
366
      
1.17
%
Total deposits
    
2,544,148
      
6,695
      
1.06
%
    
2,455,268
      
6,014
      
0.99
%
    
2,150,696
      
3,089
      
0.58
%
                                                                         
Total interest-bearing deposits
    
2,018,812
      
6,695
      
1.33
%
    
1,943,096
      
6,014
      
1.26
%
    
1,669,148
      
3,089
      
0.74
%
                                                                         
Other borrowings
    
19,864
      
179
      
3.61
%
    
46,969
      
365
      
3.15
%
    
101,829
      
573
      
2.26
%
                                                                         
                                                                         
Total interest-bearing liabilities
    
2,038,676
      
6,874
      
1.35
%
    
1,990,065
      
6,379
      
1.30
%
    
1,770,977
      
3,662
      
0.83
%
Total deposits and other borrowings
    
2,564,012
      
6,874
      
1.08
%
    
2,502,237
      
6,379
      
1.03
%
    
2,252,525
      
3,662
      
0.65
%
                                                                         
                                                                         
Non interest-bearing liabilities
    
66,780
                      
52,037
                      
8,952
                  
Shareholders' equity
    
249,175
                      
246,500
                      
233,547
                  
Total liabilities and shareholders' equity
  
$
2,879,967
                    
$
2,800,774
                    
$
2,495,024
                  
                                                                         
Net interest income
          
$
19,509
                    
$
19,288
                    
$
18,796
          
Net interest spread
                    
2.62
%
                    
2.69
%
                    
2.98
%
                                                                         
Net interest margin
                    
2.94
%
                    
3.00
%
                    
3.19
%

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 six months ended
    
For the six months ended
  
(dollars in thousands)
  
June 30, 2019
    
June 30, 2018
  
                                     
         
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
  
$
70,729
    
$
854
      
2.43
%
  
$
26,844
    
$
235
      
1.77
%
Securities
    
1,076,496
      
14,604
      
2.71
%
    
1,032,038
      
13,325
      
2.58
%
Loans receivable
    
1,489,020
      
36,592
      
4.96
%
    
1,269,875
      
29,922
      
4.75
%
Total interest-earning assets
    
2,636,245
      
52,050
      
3.98
%
    
2,328,757
      
43,482
      
3.77
%
                                                 
Other assets
    
204,344
                      
128,045
                  
                                                 
Total assets
  
$
2,840,589
                    
$
2,456,802
                  
                                                 
Interest-bearing liabilities:
                                                
                                                 
Demand non interest-bearing
  
$
518,790
                    
$
456,530
                  
Demand interest-bearing
    
1,129,356
      
8,144
      
1.45
%
    
868,832
      
2,806
      
0.65
%
Money market & savings
    
686,453
      
3,080
      
0.90
%
    
693,508
      
2,146
      
0.62
%
Time deposits
    
165,354
      
1,485
      
1.81
%
    
127,740
      
735
      
1.16
%
Total deposits
    
2,499,953
      
12,709
      
1.03
%
    
2,146,610
      
5,687
      
0.53
%
                                                 
Total interest-bearing deposits
    
1,981,163
      
12,709
      
1.29
%
    
1,690,080
      
5,687
      
0.68
%
                                                 
Other borrowings
    
33,341
      
544
      
3.29
%
    
71,360
      
758
      
2.14
%
                                                 
                                                 
Total interest-bearing liabilities
    
2,014,504
      
13,253
      
1.33
%
    
1,761,440
      
6,445
      
0.74
%
Total deposits and other borrowings
    
2,533,294
      
13,253
      
1.05
%
    
2,217,970
      
6,445
      
0.59
%
                                                 
                                                 
Non interest-bearing liabilities
    
59,505
                      
9,171
                  
Shareholders' equity
    
247,790
                      
229,661
                  
Total liabilities and shareholders' equity
  
$
2,840,589
                    
$
2,456,802
                  
                                                 
Net interest income
          
$
38,797
                    
$
37,037
          
Net interest spread
                    
2.65
%
                    
3.03
%
                                                 
Net interest margin
                    
2.97
%
                    
3.21
%

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)

                     
Year
              
   
Three months ended
    
ended
    
Six months ended
  
   
June 30,
    
March 31,
    
June 30,
    
Dec 31
    
June 30,
    
June 30,
  
(dollars in thousands)
  
2019
    
2018
    
2018
    
2018
    
2019
    
2018
  
                                     
                                     
Balance at beginning of period
  
$
7,900
    
$
8,615
    
$
6,650
    
$
8,599
    
$
8,615
    
$
8,599
  
                                                 
Provision charged to operating expense
    
-
      
300
      
800
      
2,300
      
300
      
1,200
  
     
7,900
      
8,915
      
7,450
      
10,899
      
8,915
      
9,799
  
                                                 
Recoveries on loans charged-off:
                                                
  Commercial
    
154
      
1
      
129
      
152
      
155
      
129
  
  Consumer
    
3
      
1
      
1
      
2
      
4
      
1
  
Total recoveries
    
157
      
2
      
130
      
154
      
159
      
130
  
                                                 
Loans charged-off:
                                                
  Commercial
    
(1
)
    
(929
)
    
-
      
(2,219
)
    
(930
)
    
(2,151
)
  Consumer
    
-
      
(88
)
    
(14
)
    
(219
)
    
(88
)
    
(212
)
                                                 
Total charged-off
    
(1
)
    
(1,017
)
    
(14
)
    
(2,438
)
    
(1,018
)
    
(2,363
)
                                                 
Net charge-offs
    
156
      
(1,015
)
    
116
      
(2,284
)
    
(859
)
    
(2,233
)
                                                 
Balance at end of period
  
$
8,056
    
$
7,900
    
$
7,566
    
$
8,615
    
$
8,056
    
$
7,566
  
                                                 
Net charge-offs as a percentage of average loans outstanding
    
(0.04
%)
    
0.28
%
    
(0.04
%)
    
0.17
%
    
0.12
%
    
0.35
%
                                                 
Allowance for loan losses as a percentage of period-end loans
    
0.53
%
    
0.53
%
    
0.57
%
    
0.60
%
    
0.53
%
    
0.57
%


13
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)
  
2019
    
2019
    
2018
    
2018
    
2018
  
                               
Non-accrual loans:
                              
  Commercial real estate
  
$
7,545
    
$
8,096
    
$
9,463
    
$
12,661
    
$
13,297
  
  Consumer and other
    
1,777
      
836
      
878
      
818
      
809
  
Total non-accrual loans
    
9,322
      
8,932
      
10,341
      
13,479
      
14,106
  
                                         
Loans past due 90 days or more and still accruing
    
-
      
1,744
      
-
      
-
      
-
  
                                         
Total non-performing loans
    
9,322
      
10,676
      
10,341
      
13,479
      
14,106
  
                                         
Other real estate owned
    
6,406
      
6,088
      
6,223
      
6,768
      
6,559
  
                                         
Total non-performing assets
  
$
15,728
    
$
16,764
    
$
16,564
    
$
20,247
    
$
20,665
  
                                         
                                         
Non-performing loans to total loans
    
0.62
%
    
0.72
%
    
0.72
%
    
0.98
%
    
1.07
%
                                         
Non-performing assets to total assets
    
0.53
%
    
0.60
%
    
0.60
%
    
0.76
%
    
0.81
%
                                         
Non-performing loan coverage
    
86.42
%
    
74.00
%
    
83.31
%
    
59.97
%
    
53.64
%
                                         
Allowance for loan losses as a percentage of total period-end loans
    
0.53
%
    
0.53
%
    
0.60
%
    
0.59
%
    
0.57
%
                                         
Non-performing assets / capital plus allowance for loan losses
    
6.06
%
    
6.54
%
    
6.53
%
    
8.30
%
    
8.51
%




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