Republic First Bancorp, Inc. Reports Second Quarter Financial Results; Named America’s #1 Bank for Service by Forbes Magazine
Republic First Bancorp, Inc. (FRBK) announced its Q2 2020 financial results, showcasing a net income of $2.5 million, or $0.04 per share, a significant turnaround from a net loss of $0.6 million in Q1 2020. Loan originations under the Paycheck Protection Program (PPP) reached $682 million, supporting small businesses amidst the pandemic. Assets surged 51% year-over-year, totaling $4.4 billion, largely due to PPP loans. Deposits rose by 44% to $3.6 billion. The bank was recognized as America’s #1 Bank for Service by Forbes, highlighting its commitment to customer satisfaction.
- Net income rose to $2.5 million, up 559% year-over-year.
- Loans increased by 69% to $2.5 billion, driven by PPP participation.
- Deposits surged 44% to $3.6 billion, supporting liquidity.
- Established as America’s #1 Bank for Service in a Forbes survey.
- Net interest margin declined to 2.55%, impacted by low PPP loan rates.
- Non-interest expense rose 3% to $26.7 million year-over-year.
PHILADELPHIA, July 27, 2020 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2020.
Q2-2020 Financial Highlights
- During the second quarter of 2020 Republic Bank was named as America’s # 1 Bank for Service in a recent national Forbes survey to identify which financial institutions have the most satisfied customers.
- We originated
$682 million in loans under the Paycheck Protection Program (PPP) administered by the SBA providing crucial funding for small business throughout our footprint. Gross origination fees of$22 million were earned through this program which will be recognized as income over the life of the loans.
- Profitability improved as the Company reported net income of
$2.5 million , or$0.04 per share, during the second quarter of 2020 compared to a net loss of$0.6 million , or ($0.01) per share during the first quarter of 2020.
- Pre-tax pre-provision earnings (PTPP) increased to
$4.2 million during the second quarter of 2020 compared to$27 thousand in the first quarter of 2020 and$0.5 million in the second quarter of 2019.
- On a linked quarter basis, total revenue increased
13% during the second quarter of 2020 while non-interest expense decreased by2% compared to the first quarter of 2020. Year over year total revenue increased17% and non-interest expense increased3% during the quarter ended June 30, 2020 compared to the quarter ended June 30, 2019.
- Asset quality continues to improve as the ratio of non-performing assets to total assets declined to
0.31% as of June 30, 2020. Only2% of our loan customers were deferring loan payments as of July 24, 2020. These deferrals relate to approximately7% of outstanding loan balances excluding PPP loans.
- Total loans grew
$1.0 billion , or69% , to$2.5 billion as of June 30, 2020 compared to$1.5 billion at June 30, 2019. Excluding the impact of the PPP loan program loans grew$380 million , or25% , year over year.
- Total deposits increased by
$1.1 billion , or44% , to$3.6 billion as of June 30, 2020 compared to$2.5 billion as of June 30, 2019. Excluding the impact of the PPP loan program deposits grew$716 million , or28% , year over year.
Vernon W. Hill, II, Chairman of Republic First Bancorp said:
“In the second quarter ‘The Power of Red is Back’ expansion campaign continued to deliver exceptional service during these unprecedented times. Our stores remained operational throughout the quarter serving customers in any way possible in a safe and efficient manner. Through our participation in the PPP loan program authorized by the CARES Act we were able assist thousands of small businesses by providing critical access to funding to support operations in the midst of an economic shutdown.”
“In recognition of our unwavering commitment to extraordinary customer service and convenience our FANS responded to a recent Forbes survey and Republic was ranked as America’s #1 Bank for Service. The goal of our model is to create FANS NOT CUSTOMERS, who join our brand, remain loyal and refer family and friends. The results of the Forbes survey not only demonstrates the success of our model, but also shows that we deliver on our commitment to service better that every other bank in the country.”
Republic will launch its new brand campaign as America’s #1 Bank for Service during the third quarter of 2020.
Harry D. Madonna, President and Chief Executive Officer of Republic First Bancorp added:
“Net income during 2019 was negatively impacted by the challenging nature of the interest rate environment and costs required to initiate our expansion into New York City. During the second quarter of 2020 we returned to profitability through the dedication and commitment of every member of the Republic Bank Team to improve earnings. We have consistently stated that it is our goal to deliver best in class service across all delivery channels…..in-store, by phone, online and mobile options....as we strive to create new FANS each and every day. We are focused on meeting that goal in the most efficient manner possible.”
Paycheck Protection Program
During the second quarter the Republic Bank Team turned its attention to the needs of small businesses in our community. The Paycheck Protection Program included in the CARES Act authorized financial institutions to make loans to companies that have been impacted by the devastating economic effects of the coronavirus (COVID-19) pandemic. We responded by quickly developing a process to accept applications for the program not only from our valued small business customers, but from non-customers throughout the community as well.
PPP Loan Program Highlights
Republic Bank recognized the SBA PPP Loan Program as an opportunity to help existing and new small business customers actively participated in the program by accepting applications.
As of June 30, 2020 Republic has:
- Originated
$682 million in PPP loans
- Related to more than 4,800 PPP loan applications
- More than
50% of the applications received were from small businesses that were not existing customers of Republic Bank, many of which have already switched their primary banking relationship to Republic Bank
- The average loan size of all PPP loans approved was
$140 thousand
- Gross origination fees of
$22 million were earned by Republic which will be recognized as income over the life of the loans
- Funding for this program was provided through the Federal Reserve PPP Lending Facility, which has resulted in exclusion of the PPP asset balances from the leverage ratio calculation.
As a percentage of existing loan balances outstanding as of March 31, 2020, the
Loss Mitigation and Loan Portfolio Analysis
Management has taken a proactive approach to analyze and prepare for the potential challenges to be faced as the effects of the economic shutdown begin to unfold. A detailed analysis of loan concentrations and segments that may represent the areas of highest risk has been prepared. Our commercial lending team has initiated contact with many of our loan customers to discuss the impact that the pandemic has had on their businesses to date and the expected ramifications that may be felt in the future. We have granted payment deferrals for customers that made a request and had an immediate need for assistance.
Management believes exposure in the loan portfolio to the high risk industries most impacted by the current economic conditions is limited. Loans to customers in the accommodations and food services industry (i.e. hotels and restaurants) amount to
We believe the combination of ongoing communication with our customers, loan payment deferrals, increased focus on risk management practices, and access to government programs such as the PPP Loan Program should help mitigate potential future period losses.
The following table summarizes the number of loan customers that have been granted payment deferrals along with the related loan outstanding balances through the period ended June 30, 2020:
| ($ in millions) | # of Loan Accounts | % of Total Accts | Loan Balances | % of Total Loan Balances* | |||||||||||||||||
| Deferral of Principal Only | 251 | $ | 270 | ||||||||||||||||||
| Deferral of Principal and Interest | 192 | 145 | |||||||||||||||||||
| Total Deferrals | 443 | $ | 415 | ||||||||||||||||||
| Total Deferrals (as of July 24, 2020) | 103 | 2% | $ | 124 | 7% | ||||||||||||||||
*Note: PPP loans excluded from total loans when calculating % of total loan balances
As of the date of this release more than
Asset Quality
The Company’s asset quality ratios are highlighted below:
| Three Months Ended | ||||||
| 06/30/20 | 03/31/20 | 06/30/19 | ||||
| Non-performing assets / capital and reserves | 5 | % | 6 | % | 6 | % |
| Non-performing assets / total assets | 0.31 | % | 0.46 | % | 0.53 | % |
| Quarterly net loan charge-offs / average loans | 0.03 | % | 0.00 | % | (0.04 | %) |
| Allowance for loan losses / gross loans | 0.43 | % | 0.54 | % | 0.53 | % |
| Allowance for loan losses / non-performing loans | 87 | % | 72 | % | 86 | % |
The percentage of non-performing assets to total assets decreased to
Quarterly Trend
Profitability in previous quarters was impacted by the inversion of the yield curve and the Company’s strategic decision to enter a new market during 2019. The Company continues to focus on improvement of its operating leverage. The following table highlights changes to some of the key financial metrics that demonstrate this progress:
| QTD | QTD | QTD | QTD | QTD | |||||||||||||||||||||||||||
| 06/30/19 | 09/30/19 | 12/31/19 | 03/31/20 | 06/30/20 | |||||||||||||||||||||||||||
| Pre-Tax Pre-Provision Earnings (PTPP) | $ | 0.5 | $ | (1.9 | ) | $ | (2.4 | ) | $ | - | $ | 4.2 | |||||||||||||||||||
| % Change in Revenue Qtr-Qtr | 10 | % | (2 | %) | (3 | %) | 9 | % | 13 | % | |||||||||||||||||||||
| % Change in Expense Qtr-Qtr | 11 | % | 7 | % | (1 | %) | (1 | %) | (2 | %) | |||||||||||||||||||||
Financial Summary for the Period Ended June 30, 2020
The changes in the balance sheet as of June 30, 2020 were significantly impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, demand deposits and short-term borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit applications for forgiveness to the SBA in the coming months. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended June 30, 2020 can be found in the following table:
| Excluding | ||||||||||||||||
| Actual | PPP Program | Actual | YOY Growth | YOY Growth | ||||||||||||
| ($ amounts in millions) | 6/30/2020 | 6/30/2020 | 6/30/2019 | (Including PPP) | (Excluding PPP) | |||||||||||
| Cash and Cash Equivalents | $ | 691 | $ | 506 | $ | 130 | $ | 561 | $ | 376 | ||||||
| Investment Securities | 942 | 942 | 1,062 | (120) | ( | (120) | ( | |||||||||
| Loans Held for Sale | 26 | 26 | 23 | 3 | 3 | |||||||||||
| Loans Receivable | 2,542 | 1,889 | 1,509 | 1,033 | 380 | |||||||||||
| Allowance for Loan Losses | (11) | (11) | (8) | (3) | (3) | |||||||||||
| Net Loans | 2,531 | 1,878 | 1,501 | 1,030 | 377 | |||||||||||
| Premises and Equipment | 121 | 121 | 105 | 16 | 16 | |||||||||||
| Other Assets | 123 | 123 | 120 | 3 | 3 | |||||||||||
| Total Assets | $ 4,434 | $ 3,596 | $ | 2,941 | $ | 1,493 | $ | 655 | ||||||||
| Non-interest Bearing Deposits | $ | 1,096 | $ | 696 | $ | 544 | $ | 552 | $ | 152 | ||||||
| Interest Bearing Deposits | 2,548 | 2,548 | 1,984 | 564 | 564 | |||||||||||
| Total Deposits | 3,644 | 3,244 | 2,528 | 1,116 | 716 | |||||||||||
| Short-term Borrowings | 438 | - | 69 | 369 | (69) | ( | ||||||||||
| Subordinated Debt | 11 | 11 | 11 | - | - | |||||||||||
| Other Liabilities | 86 | 86 | 82 | 4 | 4 | |||||||||||
| Total Liabilities | 4,179 | 3,341 | 2,690 | 1,489 | 651 | |||||||||||
| Common Stock and APIC | 273 | 273 | 271 | 2 | 2 | |||||||||||
| Accumulated Deficit | (10) | (10) | (8) | (2) | (2) | |||||||||||
| Treasury Stock/Def Comp Plan | (4) | (4) | (4) | - | - | |||||||||||
| Acc Comp Other Inc | (4) | (4) | (8) | 4 | ( | 4 | ( | |||||||||
| Total Shareholders' Equity | 255 | 255 | 251 | 4 | 4 | |||||||||||
| Total Liabilities & Shareholders' Equity | $ | 4,434 | $ | 3,596 | $ | 2,941 | $ | 1,493 | $ | 655 | ||||||
A summary of the income statement for the period ended June 30, 2020 can be found in the following table:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| 06/30/20 | 06/30/19 | Change | 06/30/20 | 06/30/19 | Change | ||||||||||||||||
| Total Revenue | $ | 36.3 | $ | 33.3 | 9 | % | $ | 70.1 | $ | 63.7 | 10 | % | |||||||||
| Net Income | 2.5 | 0.4 | 559 | % | 1.9 | 0.8 | 138 | % | |||||||||||||
| Net Income per share | $ | 0.04 | $ | 0.01 | 300 | % | $ | 0.03 | $ | 0.01 | 200 | % | |||||||||
| Net Interest Margin | 2.55 | % | 2.94 | % | 2.64 | % | 2.97 | % | |||||||||||||
- Total assets increased by
$1.5 billion , or51% , to$4.4 billion as of June 30, 2020 compared to$2.9 billion as of June 30, 2019. Excluding the impact of the PPP loan program total assets increased by$655 million , or22% , as during the twelve month period ended June 30, 2020.
- We have thirty convenient store locations open today. During the first quarter of 2020 we opened a new store in Northfield, NJ. Construction is ongoing on a site in Bensalem, PA. There are also multiple sites in various stages of development for future store locations.
- Profitability improved quarter to quarter as we reported net income of
$2.5 million , or$0.04 per share, for the three months ended June 30, 2020 compared to a net loss of$0.6 million , or$(0.01) per share for the three months ended March 31, 2020. We reported net income of$0.4 million , or$0.01 per share, for the three months ended June 30, 2019.
- The net interest margin decreased by 21 basis points to
2.55% for the three months ended June 30, 2020 compared to2.76% for the three months ended March 31, 2020. The decline in the margin was driven by the impact of the PPP loan program that were added to the balance sheet during the second quarter, along with the lower interest rate environment as a result of rate reductions by the Federal Reserve Bank. Excluding the impact of the PPP loan program the net interest margin would have been2.70% for the three months ended June 30, 2020.
- During the first quarter we entered into a branding agreement with Visa to convert all ATM and debit cards to Visa cards which will provide a number of opportunities to enhance revenue growth in the coming years. In the second quarter we entered into another agreement with Visa to handle the processing of all ATM and debit card transactions. This agreement is expected to reduce the cost associated with the processing of these transactions.
- The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Loan production during the first half of 2020 was strong despite the impact of the CODID-19 pandemic and the pipeline for the second half of the year looks equally as promising. The Oak Mortgage team has originated more than
$500 million in mortgage loans over the last twelve months.
- The Company’s Total Risk-Based Capital ratio was
12.00% and Tier I Leverage Ratio was7.58% at June 30, 2020.
- Book value per common share increased to
$4.34 as of June 30, 2020 compared to$4.27 as of June 30, 2019.
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
| Three Months Ended | |||||||||||||||
| 06/30/20 | 03/31/20 | % Change | 06/30/19 | % Change | |||||||||||
| Net Interest Income | $ | 22,427 | $ | 20,754 | 8 | % | $ | 19,371 | 16 | % | |||||
| Non-interest Income | 8,424 | 6,545 | 29 | % | 7,026 | 20 | % | ||||||||
| Total Revenue | 30,851 | 27,299 | 13 | % | 26,397 | 17 | % | ||||||||
| Provision for Loan Losses | 1,000 | 950 | 5 | % | - | - | |||||||||
| Non-interest Expense | 26,664 | 27,272 | (2 | %) | 25,911 | 3 | % | ||||||||
| Income (Loss) Before Taxes | 3,187 | (923 | ) | 445 | % | 486 | 556 | % | |||||||
| Provision (Benefit) for Taxes | 675 | (330 | ) | 305 | % | 105 | 543 | % | |||||||
| Net Income (Loss) | 2,512 | (593 | ) | 524 | % | 381 | 559 | % | |||||||
| Net Income (Loss) per Share | $ | 0.04 | $ | (0.01 | ) | 500 | % | $ | 0.01 | 300 | % | ||||
| Six Months Ended | ||||||||||
| 06/30/20 | 06/30/19 | % Change | ||||||||
| Net Interest Income | $ | 43,181 | $ | 38,511 | 12 | % | ||||
| Non-interest Income | 14,969 | 11,971 | 25 | % | ||||||
| Total Revenue | 58,150 | 50,482 | 15 | % | ||||||
| Provision for Loan Losses | 1,950 | 300 | 550 | % | ||||||
| Non-interest Expense | 53,936 | 49,178 | 10 | % | ||||||
| Income Before Taxes | 2,264 | 1,004 | 125 | % | ||||||
| Provision for Taxes | 345 | 197 | 75 | % | ||||||
| Net Income | 1,919 | 807 | 138 | % | ||||||
| Net Income per Share | $ | 0.03 | $ | 0.01 | 200 | % | ||||
The Company reported net income of
Interest income increased by
Interest expense decreased by
The net interest margin for the three month period ended June 30, 2020 decreased by 39 basis points to
Non-interest income increased by
Non-interest expense increased by
On a linked quarter basis, total revenue increased by
Deposits
Deposits by type of account are as follows (dollars in thousands):
| Description | 06/30/20 | 06/30/19 | % Change | 03/31/20 | % Change | |||||||
| Demand noninterest-bearing | $ | 1,095,782 | $ | 544,406 | 101 | % | $ | 676,482 | 62 | % | ||
| Demand interest-bearing | 1,435,198 | 1,072,415 | 34 | % | 1,276,816 | 12 | % | |||||
| Money market and savings | 902,528 | 719,075 | 26 | % | 768,550 | 17 | % | |||||
| Certificates of deposit | 210,446 | 192,081 | 10 | % | 222,631 | (5 | %) | |||||
| Total deposits | $ | 3,643,954 | $ | 2,527,977 | 44 | % | $ | 2,944,479 | 24 | % | ||
Deposits increased to
Lending
Loans by type are as follows (dollars in thousands):
| Description | 06/30/20 | % of Total | 06/30/19 | % of Total | 03/31/20 | % of Total | ||||||
| Commercial and industrial | $ | 224,504 | 9 | % | $ | 189,632 | 13 | % | $ | 241,754 | 13 | % |
| Owner occupied real estate | 434,422 | 17 | % | 381,852 | 25 | % | 436,499 | 23 | % | |||
| Commercial real estate | 664,605 | 26 | % | 553,644 | 37 | % | 668,462 | 36 | % | |||
| Construction and land develop | 150,157 | 6 | % | 111,474 | 7 | % | 144,215 | 8 | % | |||
| Residential mortgage | 313,287 | 12 | % | 173,963 | 12 | % | 287,425 | 15 | % | |||
| Paycheck protection program (net) | 653,593 | 26 | % | - | - | % | - | - | % | |||
| Consumer and other | 101,680 | 4 | % | 98,155 | 6 | % | 103,682 | 5 | % | |||
| Gross loans | $ | 2,542,248 | 100 | % | $ | 1,508,720 | 100 | % | $ | 1,882,037 | 100 | % |
Gross loans increased by
Capital
The Company’s capital ratios at June 30, 2020 were as follows:
| Actual 06/30/20 Bancorp | Actual 06/30/20 Bank | Regulatory Guidelines “Well Capitalized” | |
| Leverage Ratio | |||
| Common Equity Ratio | |||
| Tier 1 Risk Based Capital | |||
| Total Risk Based Capital | |||
| Tangible Common Equity | n/a |
Total shareholders’ equity increased to
Analyst and Investor Call
An analyst and investor call will be held on the following date and time:
| Date: | July 27, 2020 |
| Time: | 11:00am (EST) |
| From the U.S. dial: | (800) 774-6070 [US Toll Free] or |
| (630) 691-2753 [US Toll] | |
| Participant Pin: | 7859 277# |
| 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 thirty 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, 2019, the Form 10-Q for the quarter ended March 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) | ||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||
| (dollars in thousands, except per share amounts) | 2020 | 2020 | 2019 | |||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 36,786 | $ | 32,581 | $ | 38,770 | ||||||||
| Interest-bearing deposits and federal funds sold | 654,458 | 23,936 | 90,744 | |||||||||||
| Total cash and cash equivalents | 691,244 | 56,517 | 129,514 | |||||||||||
| Securities - Available for sale | 382,221 | 497,511 | 338,286 | |||||||||||
| Securities - Held to maturity | 556,159 | 611,914 | 718,534 | |||||||||||
| Restricted stock | 3,789 | 2,746 | 5,130 | |||||||||||
| Total investment securities | 942,169 | 1,112,171 | 1,061,950 | |||||||||||
| Loans held for sale | 26,126 | 16,820 | 23,412 | |||||||||||
| Loans receivable | 2,542,248 | 1,882,037 | 1,508,720 | |||||||||||
| Allowance for loan losses | (11,040 | ) | (10,217 | ) | (8,056 | ) | ||||||||
| Net loans | 2,531,208 | 1,871,820 | 1,500,664 | |||||||||||
| Premises and equipment | 121,149 | 119,893 | 105,311 | |||||||||||
| Other real estate owned | 1,144 | 1,144 | 6,406 | |||||||||||
| Other assets | 121,603 | 122,051 | 113,729 | |||||||||||
| Total Assets | $ | 4,434,643 | $ | 3,300,416 | $ | 2,940,986 | ||||||||
| LIABILITIES | ||||||||||||||
| Non-interest bearing deposits | $ | 1,095,782 | $ | 676,482 | $ | 544,406 | ||||||||
| Interest bearing deposits | 2,548,172 | 2,267,997 | 1,983,571 | |||||||||||
| Total deposits | 3,643,954 | 2,944,479 | 2,527,977 | |||||||||||
| Short-term borrowings | 438,478 | - | 68,979 | |||||||||||
| Subordinated debt | 11,268 | 11,267 | 11,262 | |||||||||||
| Other liabilities | 85,765 | 92,554 | 81,410 | |||||||||||
| Total Liabilities | 4,179,465 | 3,048,300 | 2,689,628 | |||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||
| Common stock - | 594 | 594 | 594 | |||||||||||
| Additional paid-in capital | 273,118 | 272,639 | 270,789 | |||||||||||
| Accumulated deficit | (10,297 | ) | (12,809 | ) | (7,909 | ) | ||||||||
| Treasury stock at cost | (3,725 | ) | (3,725 | ) | (3,725 | ) | ||||||||
| Stock held by deferred compensation plan | (183 | ) | (183 | ) | (183 | ) | ||||||||
| Accumulated other comprehensive loss | (4,329 | ) | (4,400 | ) | (8,208 | ) | ||||||||
| Total Shareholders' Equity | 255,178 | 252,116 | 251,358 | |||||||||||
| Total Liabilities and Shareholders' Equity | $ | 4,434,643 | $ | 3,300,416 | $ | 2,940,986 | ||||||||
| 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) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
| INTEREST INCOME | ||||||||||||||||||
| Interest and fees on loans | $ | 22,737 | $ | 20,173 | $ | 18,569 | $ | 42,910 | $ | 36,369 | ||||||||
| Interest and dividends on investment securities | 5,072 | 6,821 | 7,158 | 11,893 | 14,541 | |||||||||||||
| Interest on other interest earning assets | 50 | 289 | 518 | 339 | 854 | |||||||||||||
| Total interest income | 27,859 | 27,283 | 26,245 | 55,142 | 51,764 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Interest on deposits | 5,320 | 6,425 | 6,695 | 11,745 | 12,709 | |||||||||||||
| Interest on borrowed funds | 112 | 104 | 179 | 216 | 544 | |||||||||||||
| Total interest expense | 5,432 | 6,529 | 6,874 | 11,961 | 13,253 | |||||||||||||
| Net interest income | 22,427 | 20,754 | 19,371 | 43,181 | 38,511 | |||||||||||||
| Provision for loan losses | 1,000 | 950 | - | 1,950 | 300 | |||||||||||||
| Net interest income after provision for loan losses | 21,427 | 19,804 | 19,371 | 41,231 | 38,211 | |||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||
| Service fees on deposit accounts | 2,328 | 2,064 | 1,848 | 4,392 | 3,460 | |||||||||||||
| Mortgage banking income | 3,389 | 2,458 | 3,031 | 5,847 | 5,251 | |||||||||||||
| Gain on sale of SBA loans | 269 | 649 | 1,147 | 918 | 1,649 | |||||||||||||
| Gain on sale of investment securities | 1,640 | 841 | 261 | 2,481 | 583 | |||||||||||||
| Other non-interest income | 798 | 533 | 739 | 1,331 | 1,028 | |||||||||||||
| Total non-interest income | 8,424 | 6,545 | 7,026 | 14,969 | 11,971 | |||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||
| Salaries and employee benefits | 13,177 | 13,381 | 13,705 | 26,558 | 26,064 | |||||||||||||
| Occupancy and equipment | 5,554 | 5,297 | 4,221 | 10,851 | 8,236 | |||||||||||||
| Legal and professional fees | 1,009 | 930 | 1,058 | 1,939 | 1,765 | |||||||||||||
| Foreclosed real estate | 75 | 282 | 517 | 357 | 854 | |||||||||||||
| Regulatory assessments and related fees | 675 | 630 | 421 | 1,305 | 842 | |||||||||||||
| Other operating expenses | 6,174 | 6,752 | 5,989 | 12,926 | 11,417 | |||||||||||||
| Total non-interest expense | 26,664 | 27,272 | 25,911 | 53,936 | 49,178 | |||||||||||||
| Income (loss) before provision (benefit) for income taxes | 3,187 | (923 | ) | 486 | 2,264 | 1,004 | ||||||||||||
| Provision (benefit) for income taxes | 675 | (330 | ) | 105 | 345 | 197 | ||||||||||||
| Net income (loss) | $ | 2,512 | $ | (593 | ) | $ | 381 | $ | 1,919 | $ | 807 | |||||||
| Net Income (Loss) per Common Share | ||||||||||||||||||
| Basic | $ | 0.04 | $ | (0.01 | ) | $ | 0.01 | $ | 0.03 | $ | 0.01 | |||||||
| Diluted | $ | 0.04 | $ | (0.01 | ) | $ | 0.01 | $ | 0.03 | $ | 0.01 | |||||||
| Average Common Shares Outstanding | ||||||||||||||||||
| Basic | 58,851 | 58,848 | 58,841 | 58,849 | 58,823 | |||||||||||||
| Diluted | 58,883 | 58,848 | 59,401 | 58,911 | 59,501 | |||||||||||||
| 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, 2020 | March 31, 2020 | June 30, 2019 | ||||||||||||||||||||||||
| 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 | $ | 198,345 | $ | 50 | 0.10 | % | $ | 81,339 | $ | 289 | 1.43 | % | $ | 85,920 | $ | 518 | 2.42 | % | |||||||||
| Securities | 1,033,560 | 5,077 | 1.96 | % | 1,156,504 | 6,826 | 2.36 | % | 1,067,185 | 7,184 | 2.69 | % | |||||||||||||||
| Loans receivable | 2,335,500 | 22,884 | 3.94 | % | 1,808,382 | 20,319 | 4.52 | % | 1,509,177 | 18,681 | 4.96 | % | |||||||||||||||
| Total interest-earning assets | 3,567,405 | 28,011 | 3.16 | % | 3,046,225 | 27,434 | 3.62 | % | 2,662,282 | 26,383 | 3.97 | % | |||||||||||||||
| Other assets | 266,178 | 260,829 | 217,685 | ||||||||||||||||||||||||
| Total assets | $ | 3,833,583 | $ | 3,307,054 | $ | 2,879,967 | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand non interest-bearing | $ | 984,771 | $ | 644,601 | $ | 525,336 | |||||||||||||||||||||
| Demand interest-bearing | 1,397,790 | 2,856 | 0.82 | % | 1,337,646 | 3,421 | 1.03 | % | 1,144,783 | 4,206 | 1.47 | % | |||||||||||||||
| Money market & savings | 858,782 | 1,431 | 0.67 | % | 752,510 | 1,783 | 0.95 | % | 697,279 | 1,628 | 0.94 | % | |||||||||||||||
| Time deposits | 208,838 | 1,033 | 1.99 | % | 226,185 | 1,221 | 2.17 | % | 176,750 | 861 | 1.95 | % | |||||||||||||||
| Total deposits | 3,450,181 | 5,320 | 0.62 | % | 2,960,942 | 6,425 | 0.87 | % | 2,544,148 | 6,695 | 1.06 | % | |||||||||||||||
| Total interest-bearing deposits | 2,465,410 | 5,320 | 0.87 | % | 2,316,341 | 6,425 | 1.12 | % | 2,018,812 | 6,695 | 1.33 | % | |||||||||||||||
| Other borrowings | 45,474 | 112 | 0.99 | % | 11,952 | 104 | 3.50 | % | 19,864 | 179 | 3.61 | % | |||||||||||||||
| Total interest-bearing liabilities | 2,510,884 | 5,432 | 0.87 | % | 2,328,293 | 6,529 | 1.13 | % | 2,038,676 | 6,874 | 1.35 | % | |||||||||||||||
| Total deposits and | |||||||||||||||||||||||||||
| other borrowings | 3,495,655 | 5,432 | 0.62 | % | 2,972,894 | 6,529 | 0.88 | % | 2,564,012 | 6,874 | 1.08 | % | |||||||||||||||
| Non interest-bearing liabilities | 83,884 | 84,211 | 66,780 | ||||||||||||||||||||||||
| Shareholders' equity | 254,044 | 249,949 | 249,175 | ||||||||||||||||||||||||
| Total liabilities and | |||||||||||||||||||||||||||
| shareholders' equity | $ | 3,833,583 | $ | 3,307,054 | $ | 2,879,967 | |||||||||||||||||||||
| Net interest income | $ | 22,579 | $ | 20,905 | $ | 19,509 | |||||||||||||||||||||
| Net interest spread | 2.29 | % | 2.49 | % | 2.62 | % | |||||||||||||||||||||
| Net interest margin | 2.55 | % | 2.76 | % | 2.94 | % | |||||||||||||||||||||
| Note: The above tables are presented on a tax equivalent basis. | |||||||||||||||||||||||||||
| Republic First Bancorp, Inc. | ||||||||||||||||||
| Average Balances and Net Interest Income | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| For the six months ended | For the six months ended | |||||||||||||||||
| (dollars in thousands) | June 30, 2020 | June 30, 2019 | ||||||||||||||||
| 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 | $ | 139,842 | $ | 339 | 0.49 | % | $ | 70,729 | $ | 854 | 2.43 | % | ||||||
| Securities | 1,095,032 | 11,903 | 2.17 | % | 1,076,496 | 14,604 | 2.71 | % | ||||||||||
| Loans receivable | 2,071,941 | 43,203 | 4.19 | % | 1,489,020 | 36,592 | 4.96 | % | ||||||||||
| Total interest-earning assets | 3,306,815 | 55,445 | 3.37 | % | 2,636,245 | 52,050 | 3.98 | % | ||||||||||
| Other assets | 263,504 | 204,344 | ||||||||||||||||
| Total assets | $ | 3,570,319 | $ | 2,840,589 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Demand non interest-bearing | $ | 814,686 | $ | 518,790 | ||||||||||||||
| Demand interest-bearing | 1,367,718 | 6,277 | 0.92 | % | 1,129,356 | 8,144 | 1.45 | % | ||||||||||
| Money market & savings | 805,646 | 3,214 | 0.80 | % | 686,453 | 3,080 | 0.90 | % | ||||||||||
| Time deposits | 217,512 | 2,254 | 2.08 | % | 165,354 | 1,485 | 1.81 | % | ||||||||||
| Total deposits | 3,205,562 | 11,745 | 0.74 | % | 2,499,953 | 12,709 | 1.03 | % | ||||||||||
| Total interest-bearing deposits | 2,390,876 | 11,745 | 0.99 | % | 1,981,163 | 12,709 | 1.29 | % | ||||||||||
| Other borrowings | 28,713 | 216 | 1.51 | % | 33,341 | 544 | 3.29 | % | ||||||||||
| Total interest-bearing liabilities | 2,419,589 | 11,961 | 0.99 | % | 2,014,504 | 13,253 | 1.33 | % | ||||||||||
| Total deposits and | ||||||||||||||||||
| other borrowings | 3,234,275 | 11,961 | 0.74 | % | 2,533,294 | 13,253 | 1.05 | % | ||||||||||
| Non interest-bearing liabilities | 84,050 | 59,505 | ||||||||||||||||
| Shareholders' equity | 251,994 | 247,790 | ||||||||||||||||
| Total liabilities and | ||||||||||||||||||
| shareholders' equity | $ | 3,570,319 | $ | 2,840,589 | ||||||||||||||
| Net interest income | $ | 43,484 | $ | 38,797 | ||||||||||||||
| Net interest spread | 2.38 | % | 2.65 | % | ||||||||||||||
| Net interest margin | 2.64 | % | 2.97 | % | ||||||||||||||
| Note: The above tables are presented on a tax equivalent basis. | ||||||||||||||||||
| Republic First Bancorp, Inc. | |||||||||||||||||||||||
| Summary of Allowance for Loan Losses and Other Related Data | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Year | |||||||||||||||||||||||
| Three months ended | ended | Six months ended | |||||||||||||||||||||
| June 30, | March 31, | June 30, | Dec 31 | June 30, | June 30, | ||||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||||
| Balance at beginning of period | $ | 10,217 | $ | 9,266 | $ | 7,900 | $ | 8,615 | $ | 9,266 | $ | 8,615 | |||||||||||
| Provision charged to operating expense | 1,000 | 950 | - | 1,905 | 1,950 | 300 | |||||||||||||||||
| 11,217 | 10,216 | 7,900 | 10,520 | 11,216 | 8,915 | ||||||||||||||||||
| Recoveries on loans charged-off: | |||||||||||||||||||||||
| Commercial | 14 | 17 | 154 | 219 | 31 | 155 | |||||||||||||||||
| Consumer | 1 | 6 | 3 | 9 | 7 | 4 | |||||||||||||||||
| Total recoveries | 15 | 23 | 157 | 228 | 38 | 159 | |||||||||||||||||
| Loans charged-off: | |||||||||||||||||||||||
| Commercial | (149 | ) | - | (1 | ) | (1,356 | ) | (149 | ) | (930 | ) | ||||||||||||
| Consumer | (43 | ) | (22 | ) | - | (126 | ) | (65 | ) | (88 | ) | ||||||||||||
| Total charged-off | (192 | ) | (22 | ) | (1 | ) | (1,482 | ) | (214 | ) | (1,018 | ) | |||||||||||
| Net (charge-offs) recoveries | (177 | ) | 1 | 156 | (1,254 | ) | (176 | ) | (859 | ) | |||||||||||||
| Balance at end of period | $ | 11,040 | $ | 10,217 | $ | 8,056 | $ | 9,266 | $ | 11,040 | $ | 8,056 | |||||||||||
| Net (charge-offs) recoveries as a percentage of | |||||||||||||||||||||||
| average loans outstanding | 0.03 | % | (0.00 | %) | (0.04 | %) | 0.08 | % | 0.02 | % | 0.12 | % | |||||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||||||
| of period-end loans | 0.43 | % | 0.54 | % | 0.53 | % | 0.53 | % | 0.43 | % | 0.53 | % | |||||||||||
| 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) | 2020 | 2020 | 2019 | 2019 | 2019 | ||||||||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial real estate | $ | 10,747 | $ | 12,060 | $ | 10,569 | $ | 10,180 | $ | 7,545 | |||||||||
| Consumer and other | 1,970 | 2,125 | 1,844 | 1,743 | 1,777 | ||||||||||||||
| Total non-accrual loans | 12,717 | 14,185 | 12,413 | 11,923 | 9,322 | ||||||||||||||
| Loans past due 90 days or more | |||||||||||||||||||
| and still accruing | - | - | - | 129 | - | ||||||||||||||
| Total non-performing loans | 12,717 | 14,185 | 12,413 | 12,052 | 9,322 | ||||||||||||||
| Other real estate owned | 1,144 | 1,144 | 1,730 | 6,653 | 6,406 | ||||||||||||||
| Total non-performing assets | $ | 13,861 | $ | 15,329 | $ | 14,143 | $ | 18,705 | $ | 15,728 | |||||||||
| Non-performing loans to total loans | 0.50 | % | 0.75 | % | 0.71 | % | 0.77 | % | 0.62 | % | |||||||||
| Non-performing assets to total assets | 0.31 | % | 0.46 | % | 0.42 | % | 0.61 | % | 0.53 | % | |||||||||
| Non-performing loan coverage | 86.81 | % | 72.03 | % | 74.65 | % | 70.25 | % | 86.42 | % | |||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||
| of total period-end loans | 0.43 | % | 0.54 | % | 0.53 | % | 0.54 | % | 0.43 | % | |||||||||
| Non-performing assets / capital plus | |||||||||||||||||||
| allowance for loan losses | 5.21 | % | 5.84 | % | 5.47 | % | 7.21 | % | 6.05 | % | |||||||||
FAQ
What were the Q2 2020 earnings for FRBK?
How much did FRBK originate in PPP loans?
What is the total asset growth for FRBK?
How did deposits change for FRBK in Q2 2020?
What recognition did FRBK receive in 2020?
