Republic First Bancorp, Inc. Reports Fourth Quarter Financial Results

Rhea-AI Summary

Republic First Bancorp (NASDAQ: FRBK) reported a significant net income increase of 398% to $25.2 million for the year ending December 31, 2021, translating to $0.33 per diluted share. Q4-2021 net income rose to $6.1 million, up from $4.1 million in Q4-2020. Total revenue grew by 26% to $162 million, with deposits surging 29% to $5.2 billion. Non-interest expense was kept low, growing only 4%. Both asset quality and net interest margins improved, with a reduction in the cost of funds to 0.35%. The Bank is optimistic about 2022, planning expansions and enhancements to digital platforms.

Positive

• Net income increased by 398% year-over-year to $25.2 million.
• Total revenue grew by 26% to $162 million.
• Deposits rose by 29% to $5.2 billion.
• Non-interest expense increased only 4%, indicating strong cost control.
• Net interest margin improved to 2.68%, up 17 basis points year-over-year.

Negative

• Total loans decreased by 5% to $2.5 billion, largely due to repayments of PPP loans.
• Non-interest income declined by 10% to $32.7 million, attributed to decreased mortgage banking income.

YTD Net Income Increases by 398% to $25 Million and Deposits Grow 29%

PHILADELPHIA, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2021.

Q4-2021 Financial Highlights

• Net income for the twelve-month period ended December 31, 2021 increased by 398% to $25.2 million, or $0.33 per diluted share, compared to net income of $5.1 million, or $0.07 per diluted share, for the twelve-month period ended December 31, 2020.
  
  
• Net income for the quarter ended December 31, 2021 increased to $6.1 million, or $0.08 per diluted share, compared to net income of $4.1 million, or $0.05 per diluted share, for the quarter ended December 31, 2020.
  
  
• The improvement in earnings was driven by strong growth in revenue while our focus on cost control initiatives continues to limit expense growth. During the twelve-month period ended December 31, 2021 total revenue increased 26% and non-interest expense increased by only 4%.
  
  
• Total deposits increased by $1.2 billion, or 29%, to $5.2 billion as of December 31, 2021 compared to $4.0 billion as of December 31, 2020. New stores opened since the beginning of the “Power of Red is Back” expansion campaign are currently growing deposits at an average rate of $41 million per year, while the average deposit growth for all stores over the last twelve months was approximately $37 million per store.
  
  
• We have achieved this significant growth in deposits while driving down the overall cost of funds for the Bank. The cost of funds decreased to 0.35% during the fourth quarter of 2021 compared to 0.54% in the fourth quarter of 2020.
  
  
• Excluding the impact of PPP loans, total loans grew $372 million, or 18%, to $2.4 billion as of December 31, 2021 compared to $2.0 billion at December 31, 2020.
  
  
• Asset quality remains strong as the ratio of non-performing assets to total assets declined to 0.24% as of December 31, 2021 compared to 0.28% as of December 31, 2020. No loan customers were deferring loan payments at the end of the fourth quarter. All customers that were granted deferrals to assist during the height of the COVID pandemic have resumed contractual payments.
  

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

“I am pleased to report Republic Bank’s fourth quarter financial results, which brings to a close a very successful year for ‘The Power of Red is Back’ expansion campaign. We not only achieved asset, loan and deposit growth far above industry standards, but we also saw a dramatic improvement in profitability during the current year. Earnings improved by nearly 400% year over year as a result of our efforts to drive revenue growth at a greater rate than expense growth.”

“As we look forward to the year ahead, we are very excited about the opportunities that we see unfolding in 2022 that will enable us to continue our successful growth strategy. We also plan to deliver significant enhancements to our digital and technology platforms in 2022. We remain committed to delivering the best experience to our customers across all delivery channels which includes in-store, online, mobile and by phone.”

“On our previous earnings call we mentioned the possibility of completing a capital raise during the fourth quarter of 2021 to support our growth and expansion strategy. As the quarter progressed, we made the determination that it would be in the best interest of the Company and our shareholders to execute a capital raise at a time that would be most optimal from a stock price perspective. We will continue to monitor market conditions and alternative strategies as we enter 2022.”

Financial Summary for the Period Ended December 31, 2021

The changes in the balance sheet as of December 31, 2021 were impacted by the effect of the PPP loan program. A portion of the changes in cash balances, outstanding loans, and outside borrowings were short-term in nature and declined as the borrowers that received PPP loans submitted applications for forgiveness to the SBA. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended December 31, 2021 can be found in the following table:

($ in millions)	Actual			Actual			Actual			YOY Growth
	12/31/21			09/30/21			12/31/20			($)				(%)
Assets	$	5,627		$	5,406		$	5,066		$	561			11	%
Assets (excluding PPP)*		5,512			5,157			4,432			1,070			24	%
Loans		2,507			2,497			2,645			(138	)		(5	%)
Loans (excluding PPP)*		2,393			2,258			2,021			372			18	%
Deposits		5,191			4,972			4,014			1,177			29	%
PPPLF Borrowings	-			-				634			(634	)		(100	%)

*Note: See disclosure related to non-GAAP financial measures at the end of this release.

A summary of the income statement for the period ended December 31, 2021 can be found in the following table:

($ in millions, except	Three Months Ended									Twelve Months Ended
per share data)	12/31/21			12/31/20			Change			12/31/21			12/31/20			Change
Total Revenue	$	43.2		$	37.0		17	%		$	162.0		$	128.1		26	%
Non-Interest Expense		32.9			29.9		10	%			122.5			117.4		4	%
Income Before Tax		8.5			5.6		50	%			33.7			6.4		423	%
Net Income		6.1			4.1		49	%			25.2			5.1		398	%
Earnings per share (diluted)	$	0.08		$	0.05		60	%		$	0.33		$	0.07		371	%

Additional Financial Highlights

• Total assets increased by $561 million, or 11%, to $5.6 billion as of December 31, 2021 compared to $5.1 billion as of December 31, 2020. Excluding the short-term impact of the PPP loan program total assets increased by $1.1 billion, or 24%, year over year.
  
  
• The net interest margin increased by 17 basis points to 2.68% for the twelve months ended December 31, 2021 compared to 2.51% for the twelve months ended December 31, 2020. This increase was primarily driven by a decline in the cost of funds during 2021.
  
  
• The cost of funds declined to 0.40% for the twelve-month period ended December 31, 2021 compared to 0.64% for the twelve month period ended December 31, 2020. This decrease was driven by the lower cost of deposits which has occurred while deposit balances have grown by $1.2 billion year over year.
  
  
• We have thirty-three convenient store locations open today. We recently opened our newest store in Ocean City, NJ on January 15, 2022. Construction is also ongoing on sites in Wayne, PA and Broomall, PA which we expect will also open during 2022.
  
  
• Our residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. The Oak Mortgage team originated more than $579.8 million in mortgage loans over the last twelve months which continues to be near record highs for the Oak Mortgage Team.
  
  
• Total Risk-Based Capital ratio was 11.76% and Tier I Leverage Ratio was 6.06% at December 31, 2021.
  
  
• Book value per common share increased to $4.67 as of December 31, 2021 compared to $4.41 as of December 31, 2020.
  

Income Statement

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

	Three Months Ended
	12/31/21			09/30/21			% Change			12/31/20			% Change
Net Interest Income	$	35,701		$	31,442		14	%		$	25,720		39	%
Non-interest Income		7,471			7,315		2	%			11,236		(34	%)
Total Revenue		43,172			38,757		11	%			36,956		17	%
Provision for Loan Losses		1,850			900		106	%			1,400		32	%
Non-interest Expense		32,866			29,773		10	%			29,907		10	%
Income Before Taxes		8,456			8,084		5	%			5,649		50	%
Provision for Income Taxes		2,379			1,988		20	%			1,548		54	%
Net Income		6,077			6,096		-	%			4,101		48	%
Preferred Stock Dividend		875			875		-	%			924		(5	%)
Net Income Attributable to Common Shareholders		5,202			5,221		-	%			3,177		64	%
Earnings (Loss) per share	$	0.08		$	0.08		-	%		$	0.05		60	%

Net income increased to $6.1 million, or $0.08 per share, for the three-month period ended December 31, 2021, compared to net income of $4.1 million, or $0.05 per share, for the three-month period ended December 31, 2020.

We continue to demonstrate progress with operating leverage, which drives improved earnings. Total revenue increased by 17% while non-interest expense increased by 10% during the fourth quarter of 2021, compared to the fourth quarter of 2020.

Net interest income increased to $35.7 million during the fourth quarter of 2021 compared to $25.7 million during the fourth quarter of 2020. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the “Power of Red is Back” expansion strategy. We also continue to amortize the fees associated with the origination of PPP loans which is reported as interest income and is recognized over the life of those loans. Approximately $5.2 million in origination fees related to the PPP loan program were recognized as income during the fourth quarter of 2021 compared to $3.0 million recognized during the fourth quarter of 2020.

The net interest margin for the three-month period ended December 31, 2021 increased by 20 basis points to 2.63% compared to 2.43% for the three month period ended December 31, 2020. The net interest margin increased by 6 basis points on a linked quarter basis primarily as a result of an increase in the yield on interest earning assets during the fourth quarter of 2021.

The provision for loan losses increased to $1.9 million during the fourth quarter of 2021 compared to $1.4 million during the fourth quarter of 2020. The increase was primarily driven by a specific reserve required for a single loan relationship which we received updated information on during the current period.

Non-interest income declined to $7.5 million during the quarter ended December 31, 2021, compared to $11.2 million during the quarter ended December 31, 2020. The decrease is primarily attributable to the decrease in mortgage banking income year over year as a result of a decline in residential mortgage loan originations driven by lower refinancing activity in the current period.

Non-interest expense increased by 10%, to $32.9 million during the quarter ended December 31, 2021, compared to $29.9 million during the quarter ended December 31, 2020. The year over year growth was primarily driven by an increase in salary and benefit costs and data processing expense as a result of the overall growth of the Bank.

A dividend on the outstanding shares of preferred stock in the amount of $0.9 million was declared and paid during the fourth quarter of 2021. The preferred stock was initially issued in August 2020 and pays a dividend at an annual rate of 7.00%.

	Twelve Months Ended
	12/31/21			12/31/20			% Change
Net Interest Income	$	129,216		$	91,832		41	%
Non-interest Income		32,740			36,235		(10	%)
Total Revenue		161,956			128,067		26	%
Provision for Loan Losses		5,750			4,200		37	%
Non-interest Expense		122,504			117,423		4	%
Income Before Taxes		33,702			6,444		423	%
Provision (Benefit) for Taxes		8,526			1,390		513	%
Net Income		25,176			5,054		398	%
Preferred Stock Dividend		3,500			923		279	%
Net Income Attributable to Common Shareholders		21,676			4,131		425	%
Earnings per share	$	0.33		$	0.07		371	%

Net income increased by 398% to $25.2 million, or $0.33 per share, for the twelve-month period ended December 31, 2021, compared to net income of $5.1 million, or $0.07 per share, for the twelve-month period ended December 31, 2020. Improved operating leverage also drove better earnings during the twelve-month period ended December 31, 2021, as total revenue increased by 26% while non-interest expense increased by only 4%, during the full year in 2021 compared to 2020.

Net interest income increased to $129.2 million during the twelve-month period ended December 31, 2021 compared to $91.8 million during the twelve-month period ended December 31, 2020. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the “Power of Red is Back” expansion strategy. We also continue to amortize the fees associated with the origination of PPP loans which is reported as interest income and is recognized over the life of the loans. The net interest margin for the twelve-month period ended December 31, 2021 increased by 17 basis points to 2.68% compared to 2.51% for the twelve-month period ended December 31, 2020. The improvement in the margin was primarily a result of a decline in the cost of funds to 0.40% during 2021 compared to 0.64% during 2020.

Non-interest income decreased by $3.5 million, or 10%, to $32.7 million for the twelve-month period ended December 31, 2021, compared to $36.2 million for the twelve-month period ended December 31, 2020. Growth in service fees and ATM/debit card revenue was offset by decreases in mortgage banking income and gains on the sale of investment securities during 2021.

Non-interest expense increased by 4%, to $122.5 million during the twelve months ended December 31, 2021, compared to $117.4 million during the twelve months ended December 31, 2020. The year over year growth was driven by increases in salary and benefit costs, occupancy and equipment and data processing expense as a result of the growth and expansion of the Bank.

Deposits

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

Description	12/31/21			12/31/20		% Change			09/30/21		% Change
Demand noninterest-bearing	$	1,404,360		$	1,006,876	39	%		$	1,346,353	4	%
Demand interest-bearing		2,283,779			1,776,995	29	%			2,162,324	6	%
Money market and savings		1,305,096			1,043,519	25	%			1,265,926	3	%
Certificates of deposit		197,945			186,361	6	%			197,478	-	%
Total deposits	$	5,191,180		$	4,013,751	29	%		$	4,972,081	4	%

Deposits increased by $1.2 billion, or 29%, to $5.2 billion at December 31, 2021 compared to $4.0 billion at December 31, 2020. This increase can be attributed to our strategy to expand the reach of our banking model which focuses on enhancing the total customer experience including in-store, on-line and mobile banking options. High levels of customer service and convenience across all delivery channels drives the gathering of low-cost, core deposits. We recognized strong growth in demand deposit balances, including an increase in non-interest bearing demand deposits of 39%, year over year as a result of the successful execution of our strategy. The increase in demand deposits over the last twelve months is also a result of our participation in the PPP loan program. Many of the PPP loans originated were for small businesses that were previously not customers of Republic Bank. Many of these small businesses have chosen to move their primary banking relationship to Republic as a result of the outstanding level of service and cooperation they experienced during the PPP loan process. Commercial deposits were 44% of total deposits as of December 31, 2021.

Lending

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

Description	12/31/21			12/31/20		% Growth		09/30/21		% Growth
Commercial and industrial	$	252,376		$	200,188	26%		$	250,650	1%
Owner occupied real estate		526,570			475,206	11%			496,301	6%
Commercial real estate		780,311			705,748	11%			775,168	1%
Construction and land development		216,008			142,821	51%			153,132	41%
Residential mortgage		536,332			395,174	36%			496,963	8%
Consumer and other		81,001			102,019	21%			85,680	(5%)
Sub-total (excl PPP Loans)		2,392,598			2,021,156	18%			2,257,894	6%
Paycheck protection program		114,767			624,186	(82%)			239,120	(52%)
Total Loans	$	2,507,365		$	2,645,342	(5%)		$	2,497,014	-%

Total loans decreased by $138 million, or 5%, at December 31, 2021 when compared to December 31, 2020. Loans originated through the PPP loan program continue to be repaid or forgiven by the SBA which offsets the growth experienced in other categories in the portfolio. Excluding the impact of the PPP loans, gross loans increased by $371 million, or 18%, to $2.4 billion at December 31, 2021 compared to $2.0 billion at December 31, 2020. We continue to see results from the continued success with our relationship banking model which has driven a steady flow in quality loan demand. We experienced strongest growth in the commercial and industrial, owner-occupied real estate, commercial real estate and residential mortgage categories over the last twelve months.

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Three Months Ended
	12/31/21		09/30/21		12/31/20
Non-performing assets / capital and reserves	3.86	%	3.96	%	4.37	%
Non-performing assets / total assets	0.24	%	0.25	%	0.28	%
Quarterly net loan charge-offs / average loans*	0.02	%	0.00	%	0.05	%
Allowance for loan losses / gross loans*	0.79	%	0.77	%	0.64	%
Allowance for loan losses / non-performing loans	147	%	133	%	101	%

*Note: PPP loans excluded when calculating % of total loan balances. See disclosure related to non-GAAP financial measures at the end of this release.

The percentage of non-performing assets to total assets decreased to 0.24% at December 31, 2021, compared to 0.28% at December 31, 2020. The allowance for loan losses as a percentage of total loans excluding PPP loans increased to 0.79% as of December 31, 2021 compared to 0.64% as of December 31, 2020. The allowance for loan losses as a percentage of non-performing loans increased to 147% at December 31, 2021 compared to 101% at December 31, 2020 as a result of the increase in the allowance for loan losses over the last 12 months.

Capital

The Company’s capital ratios at December 31, 2021 were as follows:

	Actual 12/31/21 Bancorp		Actual 12/31/21 Bank		Regulatory Guidelines “Well Capitalized”
Leverage Ratio	6.06	%	5.85	%	5.00%
Common Equity Ratio	9.20	%	10.78	%	6.50%
Tier 1 Risk Based Capital	11.14	%	10.78	%	8.00%
Total Risk Based Capital	11.76	%	11.40	%	10.00%
Tangible Common Equity	4.89	%	5.74	%	n/a
Tangible Common Equity (assuming conversion)*	5.75	%	5.74	%	n/a

*Note: Assumes conversion of all outstanding shares of convertible preferred stock

Total shareholders’ equity increased to $323 million at December 31, 2021 compared to $308 million at December 31, 2020. The increase was primarily due to growth in retained earnings driven by net income over the last twelve months. Book value per common share increased to $4.67 at December 31, 2021 compared to $4.41 per share at December 31, 2020.

Non-GAAP Financial Measures

In addition to evaluating the Company’s financial results of operations in accordance with accounting principles generally accepted in the U.S. (“GAAP”), management periodically supplements its evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial conditions, and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.

The Company believes that disclosing non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to better understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently.

Analyst and Investor Call

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

Date:	January 20, 2022
Time:	11:00am (EST)
From the U.S. dial:	(888) 517-2513 [US Toll Free] or
	(847) 619-6533 [US Toll]
Participant Pin:	6393 951#
An operator will assist you in joining the call.

About Republic First Bancorp, Inc.

Republic First Bancorp, Inc. is the holding company for Republic First Bank which does business under the name Republic Bank. Republic Bank 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 thirty-three stores located in Greater Philadelphia, Southern New Jersey, and New York City. Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with some of 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; the effects of health emergencies, including the spread of infectious diseases and pandemics; 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, 2020 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)
						December 31,				September 30,				December 31,
(dollars in thousands, except per share amounts)						2021				2021				2020
ASSETS
	Cash and due from banks					$	14,072			$	15,560			$	29,746
	Interest-bearing deposits and federal funds sold						104,812				368,408				745,554
		Total cash and cash equivalents					118,884				383,968				775,300
	Securities - Available for sale						1,084,539				889,725				537,547
	Securities - Held to maturity						1,660,292				1,377,253				814,936
	Restricted stock						3,510				3,510				3,039
		Total investment securities					2,748,341				2,270,488				1,355,522
	Loans held for sale						13,762				16,991				53,370
	Loans receivable						2,507,365				2,497,014				2,645,342
	Allowance for loan losses						(18,964	)			(17,218	)			(12,975	)
		Net loans					2,488,401				2,479,796				2,632,367
	Premises and equipment						127,440				125,301				123,170
	Other real estate owned						360				532				1,188
	Other assets						129,412				128,502				124,818
	Total Assets					$	5,626,600			$	5,405,578			$	5,065,735
LIABILITIES
	Non-interest bearing deposits					$	1,404,360			$	1,346,353			$	1,006,876
	Interest bearing deposits						3,786,820				3,625,728				3,006,875
		Total deposits					5,191,180				4,972,081				4,013,751
	Short-term borrowings						-				-				633,866
	Subordinated debt						11,277				11,276				11,271
	Other liabilities						100,776				98,708				98,734
	Total Liabilities						5,303,233				5,082,065				4,757,622
SHAREHOLDERS' EQUITY
	Preferred stock						20				20				20
	Common stock						594				594				594
	Additional paid-in capital						324,619				324,023				322,321
	Retained earnings (accumulated deficit)						12,716				8,388				(8,084	)
	Treasury stock at cost						(3,725	)			(3,725	)			(3,726	)
	Stock held by deferred compensation plan						(183	)			(183	)			(183	)
	Accumulated other comprehensive loss						(10,674	)			(5,604	)			(2,829	)
	Total Shareholders' Equity						323,367				323,513				308,113
	Total Liabilities and Shareholders' Equity					$	5,626,600			$	5,405,578			$	5,065,735

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)						2021			2021			2020			2021			2020
INTEREST INCOME
	Interest and fees on loans					$	29,151		$	27,380		$	25,698		$	114,894		$	93,292
	Interest and dividends on investment securities						10,941			8,217			5,473			32,456			21,144
	Interest on other interest earning assets						159			181			76			452			514
		Total interest income					40,251			35,778			31,247			147,802			114,950
INTEREST EXPENSE
	Interest on deposits						4,499			4,283			5,453			18,338			22,751
	Interest on borrowed funds						51			53			74			252			367
		Total interest expense					4,550			4,336			5,527			18,590			23,118
	Net interest income						35,701			31,442			25,720			129,212			91,832
	Provision for loan losses						1,850			900			1,400			5,750			4,200
	Net interest income after provision for loan losses					33,851			30,542			24,320			123,462			87,632
NON-INTEREST INCOME
	Service fees on deposit accounts						3,163			3,283			2,336			12,905			10,236
	Mortgage banking income						2,145			2,397			7,113			12,016			17,588
	Gain on sale of SBA loans						1,178			641			174			3,214			1,741
	Gain on sale of investment securities						-			-			-			2			2,760
	Other non-interest income						985			996			1,613			4,607			3,910
		Total non-interest income					7,471			7,317			11,236			32,744			36,235
NON-INTEREST EXPENSE
	Salaries and employee benefits						15,039			14,640			15,123			59,253			56,277
	Occupancy and equipment						5,915			5,689			5,834			23,521			22,210
	Legal and professional fees						2,310			1,065			1,344			5,447			4,222
	Foreclosed real estate						134			119			21			844			459
	Regulatory assessments and related fees						968			904			618			3,478			2,549
	Goodwill impairment						-			-			-			-			5,011
	Other operating expenses						8,500			7,358			6,967			29,961			26,695
		Total non-interest expense					32,866			29,775			29,907			122,504			117,423
Income before provision for income taxes							8,456			8,084			5,649			33,702			6,444
Provision for income taxes							2,379			1,988			1,548			8,526			1,390
Net income							6,077			6,096			4,101			25,176			5,054
Preferred stock dividends							875			875			924			3,500			923
Net income attributable to common shareholders						$	5,202		$	5,221		$	3,177		$	21,676		$	4,131
Net Income per Common Share
	Basic					$	0.09		$	0.09		$	0.05		$	0.37		$	0.07
	Diluted					$	0.08		$	0.08		$	0.05		$	0.33		$	0.07
Average Common Shares Outstanding
	Basic						58,928			58,895			58,859			58,891			58,853
	Diluted						75,828			75,876			58,917			75,952			58,904

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, 2021									September 30, 2021									December 31, 2020
					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		$	411,251		$	159		0.15	%		$	480,166		$	181		0.15	%		$	302,990		$	76		0.10	%
Investment securities			2,482,134			10,941		1.75	%			1,948,532			8,240		1.68	%			1,247,502			5,481		1.74	%
Loans receivable			2,482,173			29,151		4.66	%			2,495,611			27,493		4.37	%			2,668,570			25,821		3.84	%
Total interest-earning assets			5,375,558			40,251		2.97	%			4,924,309			35,914		2.89	%			4,219,062			31,378		2.95	%
Other assets			235,955									248,095									267,110
Total assets		$	5,611,513								$	5,172,404								$	4,486,172
Interest-bearing liabilities:
Demand non interest-bearing		$	1,401,380								$	1,301,102								$	1,031,846
Demand interest-bearing			2,263,840			3,402		0.60	%			2,022,477			3,165		0.62	%			1,758,942			3,312		0.75	%
Money market & savings			1,313,580			832		0.25	%			1,219,009			837		0.27	%			1,071,747			1,420		0.53	%
Time deposits			197,923			266		0.53	%			193,816			281		0.58	%			194,096			721		1.47	%
Total deposits			5,176,723			4,500		0.34	%			4,736,404			4,283		0.36	%			4,056,631			5,453		0.53	%
Total interest-bearing deposits			3,775,343			4,500		0.47	%			3,435,302			4,283		0.49	%			3,024,785			5,453		0.72	%
Other borrowings			11,277			52		1.83	%			11,276			53		1.86	%			31,847			74		0.92	%
Total interest-bearing liabilities			3,786,620			4,552		0.48	%			3,446,578			4,336		0.50	%			3,056,632			5,527		0.72	%
Total deposits and other borrowings			5,188,000			4,552		0.35	%			4,747,680			4,336		0.36	%			4,088,478			5,527		0.54	%
Non interest-bearing liabilities			100,166									100,272									91,873
Shareholders' equity			323,347									314,626									305,821
Total liabilities and
shareholders' equity		$	5,611,513								$	5,162,578								$	4,486,172
Net interest income					$	35,699								$	31,578								$	25,851
Net interest spread								2.49	%								2.39	%								2.23	%
Net interest margin								2.63	%								2.57	%								2.43	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
		For the twelve months ended									For the twelve months ended
(dollars in thousands)		December 31, 2021									December 31, 2020
					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		$	352,417		$	453		0.13	%		$	242,132		$	514		0.21	%
Securities			1,890,629			32,456		1.72	%			1,086,386			21,166		1.95	%
Loans receivable			2,577,498			114,894		4.46	%			2,359,169			93,854		3.98	%
Total interest-earning assets			4,820,544			147,803		3.07	%			3,687,687			115,534		3.13	%
Other assets			255,721									265,893
Total assets		$	5,076,265								$	3,953,580
Interest-bearing liabilities:
Demand non interest-bearing		$	1,256,043								$	926,692
Demand interest-bearing			2,025,420			13,107		0.65	%			1,509,826			12,645		0.84	%
Money market & savings			1,162,032			3,720		0.32	%			916,607			6,247		0.68	%
Time deposits			190,960			1,511		0.79	%			211,636			3,859		1.82	%
Total deposits			4,634,455			18,338		0.40	%			3,564,761			22,751		0.64	%
Total interest-bearing deposits			3,378,412			18,338		0.54	%			2,638,069			22,751		0.86	%
Other borrowings			22,303			253		1.13	%			30,413			367		1.21	%
Total interest-bearing liabilities			3,400,715			18,591		0.55	%			2,668,482			23,118		0.87	%
Total deposits and other borrowings			4,656,758			18,591		0.40	%			3,595,174			23,118		0.64	%
Non interest-bearing liabilities			101,473									87,200
Shareholders' equity			318,034									271,206
Total liabilities and
shareholders' equity		$	5,076,265								$	3,953,580
Net interest income					$	129,212								$	92,416
Net interest spread								2.52	%								2.26	%
Net interest margin								2.68	%								2.51	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
	Three months ended												Twelve months ended
	December 31,				September 30,				December 31,				December 31,				December 31,
(dollars in thousands)		2021				2021				2020				2021				2020
Balance at beginning of period	$	17,218			$	16,110			$	11,851			$	12,975			$	9,266
Provision charged to operating expense		1,850				900				1,400				5,750				4,200
		19,068				17,010				13,251				18,725				13,466
Recoveries on loans charged-off:
Commercial		275				60				10				510				51
Consumer		1				149				3				218				13
Total recoveries		276				209				13				728				64
Loans charged-off:
Commercial		(311	)			1				(249	)			(372	)			(448	)
Consumer		(69	)			(2	)			(40	)			(117	)			(107	)
Total charged-off		(380	)			(1	)			(289	)			(489	)			(555	)
Net (charge-offs) recoveries		(104	)			208				(276	)			239				(491	)
Balance at end of period	$	18,964			$	17,218			$	12,975			$	18,964			$	12,975
Net (charge-offs) recoveries as a percentage of average loans outstanding		0.02	%			(0.04	%)			0.04	%			(0.01	%)			0.02	%
Allowance for loan losses as a percentage of period-end loans		0.79	%			0.76	%			0.49	%			0.76	%			0.49	%

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)		2021				2021				2021				2021				2020
Non-accrual loans:
Commercial real estate	$	10,708			$	10,040			$	10,069			$	10,628			$	10,232
Consumer and other		1,833				2,892				1,982				2,562				2,014
Total non-accrual loans		12,541				12,932				12,051				13,190				12,246
Loans past due 90 days or more and still accruing		323				13				996				-				612
Total non-performing loans		12,864				12,945				13,047				13,190				12,858
Other real estate owned		360				532				852				1,188				1,188
Total non-performing assets	$	13,224			$	13,477			$	13,899			$	14,378			$	14,046
Non-performing loans to total loans		0.51	%			0.52	%			0.52	%			0.49	%			0.49	%
Non-performing assets to total assets		0.24	%			0.25	%			0.26	%			0.27	%			0.28	%
Non-performing loan coverage		147.42	%			133.01	%			123.48	%			121.99	%			100.91	%
Allowance for loan losses as a percentage of total period-end loans		0.76	%			0.69	%			0.64	%			0.59	%			0.49	%
Non-performing assets / capital plus allowance for loan losses		3.86	%			3.96	%			4.13	%			4.44	%			4.37	%

FAQ

What were Republic First Bancorp's earnings for Q4 2021?

Republic First Bancorp reported a net income of $6.1 million for Q4 2021, or $0.08 per diluted share.

How much did Republic First Bancorp's net income increase in 2021?

The net income increased by 398% to $25.2 million for the year ended December 31, 2021.

What is the total revenue for Republic First Bancorp in 2021?

Total revenue for Republic First Bancorp reached $162 million in 2021, reflecting a 26% increase.

What are the deposit growth figures for Republic First Bancorp?

Deposits increased by 29% to $5.2 billion as of December 31, 2021.

What challenges did Republic First Bancorp face in 2021?

Republic First Bancorp experienced a 5% decrease in total loans largely due to repayments of PPP loans.