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Republic First Bancorp, Inc. Reports Third Quarter Financial Results

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Republic First Bancorp (NASDAQ: FRBK) reported a significant financial turnaround for the nine-month period ending September 30, 2021, with net income rising to $19.1 million ($0.25 per diluted share) from $1.0 million ($0.02 per share) in the same period last year. Total revenue surged 30% year over year, driven by strong deposit growth of 27% to $5.0 billion. The bank’s cost of funds improved to 0.36%. Despite a reduction in total loans by 5%, excluding PPP loans led to a 15% increase in core loans. Asset quality is solid, with non-performing assets at just 0.25% of total assets.

Positive
  • Net income increased to $19.1 million, or $0.25 per share, up 1,810% year-over-year.
  • Total revenue rose by 30% to $118.8 million for the nine months ended September 30, 2021.
  • Total deposits grew by 27%, reaching $5.0 billion, with strong gains in non-interest bearing deposits (28%).
  • Cost of funds decreased to 0.36% from 0.59% year-over-year.
  • Core loans grew by $296 million, or 15%, excluding PPP loans.
Negative
  • Total loans decreased by 5%, primarily due to the repayment and forgiveness of PPP loans, indicating potential risks in loan growth.

Deposits Grow 27% and Net Income Increases To $19 Million

PHILADELPHIA, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2021.

Q3-2021 Financial Highlights

  • Net income for the nine-month period ended September 30, 2021 increased to $19.1 million, or $0.25 per diluted share, compared to net income of $1.0 million, or $0.02 per diluted share, for the nine month period ended September 30, 2020.

  • Net income for the quarter ended September 30, 2021 increased to $6.1 million, or $0.08 per diluted share, compared to a net loss of $1.0 million, or $(0.02) per diluted share, for the quarter ended September 30, 2020.

  • The improvement in earnings was driven by the strong growth in revenue while our focus on cost control initiatives continues to limit expense growth. In addition, earnings during 2020 were impacted by a one-time goodwill impairment charge that did not recur in 2021. During the first nine months of 2021 total revenue increased 30% and non-interest expense, excluding the goodwill impairment charge, increased by 9% compared to the first nine months of 2020.

  • Total deposits increased by $1.1 billion, or 27%, to $5.0 billion as of September 30, 2021 compared to $3.9 billion as of September 30, 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 $42 million per year, while the average deposit growth for all stores over the last twelve months was approximately $33 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 0.36% during the third quarter of 2021 compared to 0.59% in the third quarter of 2020.

  • Excluding the impact of PPP loans, total loans grew $296 million, or 15%, to $2.3 billion as of September 30, 2021 compared to $2.0 billion at September 30, 2020.

  • Asset quality remains strong as the ratio of non-performing assets to total assets declined to 0.25% as of September 30, 2021. No loan customers were deferring loan payments at the end of the third 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 said:

The Power of Red is Back expansion strategy continues to build momentum and deliver strong results across all fronts at Republic. Earnings have improved significantly over the last twelve months. Deposits continue to grow at rates far above industry standards and loan growth remains robust despite the challenges experienced by most financial institutions across the country as we move forward from the economic impact of the COVID-19 pandemic.”

“As we grow, we remain laser focused on our commitment to deliver the best experience across every channel that our customers have access to….in-store, online, mobile, or by phone. This approach creates FANS throughout our footprint who join our brand, remain loyal and refer their friends which is driving tremendous organic growth quarter after quarter.”

Financial Summary for the Period Ended September 30, 2021

The changes in the balance sheet as of September 30, 2021 were impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, and outside borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit 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 September 30, 2021 can be found in the following table:

          
($ in millions)Actual Actual Actual YOY Growth
 09/30/21 06/30/21 09/30/20 ($) (%)
Assets$5,406 $5,377 $4,959 $447  9%
Assets (excluding PPP)* 5,157  4,997  4,275  882  21%
Loans 2,497  2,521  2,629  (132) (5%)
Loans (excluding PPP)* 2,258  2,141  1,962  296
  15%
Deposits 4,972  4,560  3,906  1,066  27%
PPPLF Borrowings -  388  646  (646) (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 September 30, 2021 can be found in the following table:

     
($ in millions, except Three Months Ended Nine Months Ended
per share data) 09/30/21 09/30/20 Change 09/30/21 09/30/20 Change
Total Revenue $38.8 $33.0  18% $118.8 $91.1 30%
Non-Interest Expense (excl Goodwill Imp)  29.8  28.6  4%  89.6  82.5 9%
Goodwill Impairment  -  5.0  (100%)  -  5.0 (100%)
Income (Loss) Before Tax  8.1     (1.5) 640%  25.2  0.8 3,050%
Net Income (Loss)  6.1     (1.0) 710%  19.1  1.0 1,810%
Earnings (Loss) per share (diluted) $0.08 $(0.02) 500% $0.25 $0.02 1,150%

Additional Financial Highlights

  • Total assets increased by $447 million, or 9%, to $5.4 billion as of September 30, 2021 compared to $5.0 billion as of September 30, 2020. Excluding the short-term impact of the PPP loan program total assets increased by $882 million, or 21%, year over year.

  • The net interest margin increased by 18 basis points to 2.71% for the nine months ended September 30, 2021 compared to 2.53% for the nine months ended September 30, 2020. This increase was primarily driven by a decline in the cost of funds during the first nine months of 2021.

  • The cost of funds declined to 0.36% for the three-month period ended September 30, 2021 compared to 0.59% for the three month period ended September 30, 2020. This decrease was driven by the lower cost of deposits which has occurred while deposit balances have grown by more than $1.0 billion year over year.

  • We have thirty-two convenient store locations open today. We are currently building a new store location in Ocean City, NJ which we expect to open during the fourth quarter of 2021.

  • Our residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. The Oak Mortgage team originated more than $713 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 12.53% and Tier I Leverage Ratio was 6.50% at September 30, 2021.

  • Book value per common share increased to $4.67 as of September 30, 2021 compared to $4.33 as of September 30, 2020.

Income Statement

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

 Three Months Ended
 09/30/21 06/30/21 % Change 09/30/20 % Change
Net Interest Income$31,442 $30,639 3% $22,930  37%
Non-interest Income 7,317  7,680 (5%)  10,031  (27%)
Total Revenue 38,759  38,319 1%  32,961  

18


%
Provision for Loan Losses 900  - 100%  850  6%
Non-interest Expense 29,775  30,518 (2%)  28,569  4%
Income (Loss) Before Goodwill Impairment 8,084  7,801 4%  3,542  128%
Goodwill Impairment -  - -%  5,011  (100%)
Income (Loss) Before Taxes 8,084  7,801 4%  (1,469) 650%
Provision (Benefit) for Taxes 1,988          1,867 6%  (503) 495%
Net Income (Loss) 6,096  5,934 3%  (966) 731%
Preferred Stock Dividend 875             875 0%  -  100%
Net Income (Loss) Attributable to Common Shareholders 5,221  5,059 3%  (966) 640%
Earnings (Loss) per share$0.08 $0.08 0% $(0.02) 500%

Net income increased to $6.1 million, or $0.08 per share, for the three-month period ended September 30, 2021, compared to a net loss of $1.0 million, or $(0.02) per share, for the three-month period ended September 30, 2020.

We continue to demonstrate progress with operating leverage which drives improved earnings. Total revenue increased by 18% while non-interest expense excluding goodwill impairment increased by 4% during the third quarter of 2021 compared to the third quarter of 2020. Earnings during the prior year were impacted by a goodwill impairment charge in the amount of $5.0 million which did not recur in 2021.

Net interest income increased to $31.4 million during the third quarter of 2021 compared to $22.9 million during the third 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 the loans. Approximately $9 million in origination fees related to the PPP loan program have been deferred as of September 30, 2021 and will be recognized over the remaining life of the loans in future periods.

The net interest margin for the three-month period ended September 30, 2021 increased by 19 basis points to 2.54% compared to 2.35% for the three month period ended September 30, 2020. The net interest margin declined by 10 basis points on a linked quarter basis primarily as a result of higher cash balances held during the third quarter of 2021.

Non-interest income declined to $7.3 million during the quarter ended September 30, 2021, compared to $10.0 million during the quarter ended September 30, 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 year.

Excluding the goodwill impairment charge in 2020, non-interest expense increased by 4%, to $29.8 million during the quarter ended September 30, 2021, compared to $28.6 million during the quarter ended September 30, 2020. The year over year growth was spread across all expense categories driven by 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 third quarter of 2021. The preferred stock was initially issued in August 2020 and pays a dividend at an annual rate of 7.00%.

 Nine Months Ended
 09/30/21 09/30/20 % Change
Net Interest Income$93,513 $66,111  41%
Non-interest Income 25,272  25,000  1%
Total Revenue 118,785  91,111  30%
Provision for Loan Losses 3,900  2,800  39%
Non-interest Expense 89,640  82,505  9%
Income (Loss) Before Goodwill Impairment 25,245  5,806  335%
Goodwill Impairment -  5,011  (100%)
Income Before Taxes 25,245  795  3,075%
Provision (Benefit) for Taxes 6,147         (158) 3,991%
Net Income 19,098  953  1,904%
Preferred Stock Dividend 2,625             -  100%
Net Income Attributable to Common Shareholders 16,473  953  1,629%
Earnings per share$0.25 $0.02  1,150%

Net income increased to $19.1 million, or $0.25 per share, for the nine-month period ended September 30, 2021, compared to net income of $1.0 million, or $0.02 per share, for the nine-month period ended September 30, 2020. Similar to the results for the three-month period ended September 30, 2021, improved operating leverage also drove better earnings during the nine-month period ended September 30, 2021. Total revenue increased by 30% while non-interest expense excluding the goodwill impairment charge increased by 9%, during the first nine months of 2021 compared to the first nine months of 2020.

Net interest income increased to $93.5 million during the nine-month period ended September 30, 2021 compared to $66.1 million during the nine month period ended September 30, 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 nine-month period ended September 30, 2021 increased by 18 basis points to 2.71% compared to 2.53% for the nine month period ended September 30, 2020. The improvement in the margin was primarily a result of a decline in the cost of funds to 0.42% during 2021 compared to 0.69% during 2020.

Non-interest income increased by $0.3 million, or 1%, to $25.3 million for the nine-month period ended September 30, 2021, compared to $25.0 million for the nine-month period ended September 30, 2020. Growth in service fees and gains on the sale of SBA loans were offset by decreases in mortgage banking income, gains on the sale of investment securities and other non-interest income.

Excluding goodwill impairment, non-interest expense increased by 9%, to $89.6 million during the nine months ended September 30, 2021, compared to $82.5 million during the nine months ended September 30, 2020. The year over year growth was spread across all expense categories driven by the overall growth of the Bank.

Deposits

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





Description




09/30/21
 



09/30/20


% Change
 



06/30/21


%
Change
        
Demand noninterest-bearing$1,346,353 $1,049,16928% $1,258,162       7%
Demand interest-bearing 2,162,324  1,618,342   34%  1,945,833       11%
Money market and savings 1,265,926  1,034,799   22%  1,168,516      8%
Certificates of deposit 197,478  203,296    (3%)  187,357         5%
Total deposits$4,972,081 $3,905,606    27% $4,559,868        9%
        

Deposits increased by $1.1 billion, or 27%, to $5.0 billion at September 30, 2021 compared to $3.9 billion at September 30, 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 28%, 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 45% of total deposits as of September 30, 2021.

Lending

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

Description09/30/21 09/30/20% Growth 06/30/21% Growth
        
Commercial and industrial$250,650 $228,14510% $212,00318%
Owner occupied real estate 496,301  427,02616%  478,5474%
Commercial real estate 775,168  676,46015%  736,2935%
Construction and land development 153,132  164,671(7%)  160,945(5%)
Residential mortgage 496,963  365,27936%  459,7128%
Consumer and other 85,680
  99,975(13%)  93,125(7%)
Sub-total (excl PPP Loans) 2,257,894  1,961,55615%  2,140,6255
%
Paycheck protection program 239,120  667,842(64%)  380,798(37%)
Total Loans$2,497,014 $2,629,398(5%) $2,521,423(1%)
        

Gross loans decreased by $132 million, or 5%, at September 30, 2021 compared to September 30, 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 $296 million, or 15%, to $2.3 billion at September 30, 2021 compared to $2.0 billion at September 30, 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 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
 09/30/2106/30/2109/30/20
    
Non-performing assets / capital and reserves4%4%4%
Non-performing assets / total assets0.25%0.26%0.27%
Quarterly net loan charge-offs / average loans*0.00%0.00%0.01%
Allowance for loan losses / gross loans*0.77%0.75%0.45%
Allowance for loan losses / non-performing loans133%123%95%

*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 0.25% at September 30, 2021, compared to 0.27% at September 30, 2020. The allowance for loan losses as a percentage of total loans excluding PPP loans increased to 0.77% as of September 30, 2021 compared to 0.45% as of September 30, 2020. The allowance for loan losses as a percentage of non-performing loans increased to 133% at September 30, 2021 compared to 95% at September 30, 2020 as a result of the increase the allowance for loan losses over the last 12 months.

Capital

The Company’s capital ratios at September 30, 2021 were as follows:

 Actual
09/30/21
Bancorp
Actual
09/30/21
Bank
Regulatory Guidelines
“Well Capitalized”
    
Leverage Ratio     6.50%     6.24%5.00%
Common Equity Ratio   9.81%   11.45%6.50%
Tier 1 Risk Based Capital   11.92%   11.45%8.00%
Total Risk Based Capital   12.53%   12.07%10.00%
Tangible Common Equity     5.09%     5.94%n/a

Total shareholders’ equity increased to $324 million at September 30, 2021 compared to $303 million at September 30, 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 September 30, 2021 compared to $4.33 per share at September 30, 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: October 27, 2021
Time:   11:00am (EDT)
From the U.S. dial:(800) 774-6070 [US Toll Free] or
 (630) 691-2753 [US Toll]
Participant Pin: 9216 154#
  
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-two 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)        
           
      September 30,June 30, September 30,
(dollars in thousands, except per share amounts) 2021   2021   2020 
           
ASSETS        
 Cash and due from banks $15,560  $16,371  $43,689 
 Interest-bearing deposits and federal funds sold 368,408   750,328   874,472 
  Total cash and cash equivalents 383,968   766,699   918,161 
           
 Securities - Available for sale  889,725   773,977   440,655 
 Securities - Held to maturity  1,377,253   1,057,842   688,939 
 Restricted stock   3,510   3,510   3,789 
  Total investment securities  2,270,488   1,835,329   1,133,383 
           
 Loans held for sale   16,991   14,408   42,549 
           
 Loans receivable   2,497,014   2,521,423   2,629,398 
 Allowance for loan losses  (17,218)  (16,110)  (11,851)
  Net loans    2,479,796   2,505,313   2,617,547 
           
 Premises and equipment  125,301   123,675   124,034 
 Other real estate owned  532   852   1,113 
 Other assets   128,502   131,162   121,969 
           
 Total Assets  $5,405,578  $5,377,438  $4,958,756 
           
           
           
LIABILITIES        
 Non-interest bearing deposits $1,346,353  $1,258,162  $1,049,169 
 Interest bearing deposits  3,625,728   3,301,706   2,856,437 
  Total deposits   4,972,081   4,559,868   3,905,606 
           
 Short-term borrowings   -   387,509   646,267 
 Subordinated debt   11,276   11,274   11,270 
 Other liabilities   98,708   98,346   92,675 
           
 Total Liabilities   5,082,065   5,056,997   4,655,818 
           
SHAREHOLDERS' EQUITY      
 Preferred stock   20   20   20 
 Common stock   594   594   594 
 Additional paid-in capital  324,023   323,442   321,915 
 Retained earnings (accumulated deficit) 8,388   3,167   (11,263)
 Treasury stock at cost   (3,725)  (3,725)  (3,725)
 Stock held by deferred compensation plan (183)  (183)  (183)
 Accumulated other comprehensive loss (5,604)  (2,874)  (4,420)
           
 Total Shareholders' Equity  323,513   320,441   302,938 
           
           
 Total Liabilities and Shareholders' Equity$5,405,578  $5,377,438  $4,958,756 
           


Republic First Bancorp, Inc.          
Consolidated Statements of Operations         
(Unaudited)            
      Three Months Ended Nine Months Ended
      September 30,June 30, September 30, September 30, September 30,
(in thousands, except per share amounts)2021 2021 2020 2021 2020
               
INTEREST INCOME           
 Interest and fees on loans $27,380 $28,460 $24,683  $85,743 $67,593 
 Interest and dividends on investment securities 8,217  6,830  3,778   21,515  15,671 
 Interest on other interest earning assets 181  64  99   294  438 
  Total interest income  35,778  35,354  28,560   107,552  83,702 
               
INTEREST EXPENSE           
 Interest on deposits   4,283  4,641  5,553   13,839  17,298 
 Interest on borrowed funds  53  74  77   200  293 
  Total interest expense  4,336  4,715  5,630   14,039  17,591 
               
 Net interest income   31,442  30,639  22,930   93,513  66,111 
 Provision for loan losses  900  -  850   3,900  2,800 
               
 Net interest income after provision for loan losses 30,542  30,639  22,080   89,613  63,311 
               
NON-INTEREST INCOME          
 Service fees on deposit accounts  3,283  3,260  2,134   10,503  6,166 
 Mortgage banking income  2,397  2,908  4,962   9,869  10,809 
 Gain on sale of SBA loans  641  633  649   2,035  1,567 
 Gain on sale of investment securities -  2  279   2  2,760 
 Other non-interest income  996  877  2,007   2,863  3,698 
  Total non-interest income  7,317  7,680  10,031   25,272  25,000 
               
NON-INTEREST EXPENSE          
 Salaries and employee benefits  14,639  14,855  14,596   44,216  41,154 
 Occupancy and equipment  5,689  5,846  5,524   17,606  16,375 
 Legal and professional fees  1,074  1,048  940   3,147  2,879 
 Foreclosed real estate   120  492  80   710  437 
 Regulatory assessments and related fees 904  881  625   2,511  1,930 
 Goodwill impairment   -  -  5,011   -  5,011 
 Other operating expenses  7,349  7,396  6,804   21,450  19,730 
  Total non-interest expense  29,775  30,518  33,580   89,640  87,516 
               
Income (loss) before provision (benefit) for income taxes      8,084  7,801  (1,469)  25,245  795 
               
Provision (benefit) for income taxes  1,988  1,867  (503)  6,147  (158)
               
Net income (loss)   6,096  5,934  (966)  19,098  953 
               
Preferred stock dividends   875  875  -   2,625  - 
               
Net income (loss) attributable to common shareholders     $5,221 $5,059 $(966) $16,473 $953 
               
Net Income (Loss) per Common Share         
 Basic   $0.09 $0.09 $(0.02) $0.28 $0.02 
 Diluted   $0.08 $0.08 $(0.02) $0.25 $0.02 
               
Average Common Shares Outstanding         
 Basic    58,895  58,875  58,853   58,877  58,851 
 Diluted    75,876  76,164  64,432   75,946  60,751 
               


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) September 30, 2021 June 30, 2021 September 30, 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 $480,166 $181 0.15% $306,222 $64 0.08% $383,632 $99 0.10%
Investment securities  1,948,532  8,240 1.69%  1,688,807  6,830 1.62%  908,166  3,784 1.67%
Loans receivable  2,495,611  27,493 4.37%  2,658,540  28,460 4.29%  2,617,981  24,829 3.77%
Total interest-earning assets 4,924,309  35,914 2.89%  4,653,569  35,354 3.05%  3,909,779  28,712 2.92%
                   
Other assets  248,095      262,404      269,071    
                   
Total assets $5,172,404     $4,915,973     $4,178,850    
                   
Interest-bearing liabilities:                  
                   
Demand non interest-bearing$1,301,102     $1,230,690     $1,043,116    
Demand interest-bearing  2,022,477  3,165 0.62%  1,963,848  3,283 0.67%  1,541,837  3,056 0.79%
Money market & savings  1,219,009  837 0.27%  1,098,340  932 0.34%  980,979  1,613 0.65%
Time deposits  193,816  281 0.58%  187,093  425 0.91%  217,554  884 1.62%
Total deposits  4,736,404  4,283 0.36%  4,479,971  4,640 0.42%  3,783,486  5,553 0.58%
                   
Total interest-bearing deposits 3,435,302  4,283 0.49%  3,249,281  4,641 0.57%  2,740,370  5,553 0.81%
                   
Other borrowings  11,276  53 1.86%  21,104  74 1.41%  32,343  77 0.95%
                  .
                   
Total interest-bearing liabilities  3,446,578  4,336 0.50%  3,270,385  4,715 0.58%  2,772,713  5,630 0.81%
Total deposits and                  
  other borrowings  4,747,680  4,336 0.36%  4,501,075  4,715 0.42%  3,815,829  5,630 0.59%
                   
                   
Non interest-bearing liabilities 100,773      100,272      88,773    
Shareholders' equity  323,951      314,626      274,248    
Total liabilities and                  
shareholders' equity $5,172,404     $4,915,973     $4,178,850    
                   
Net interest income   $31,578     $30,639     $23,082  
Net interest spread     2.39%     2.47%     2.11%
                   
Net interest margin     2.54%     2.64%     2.35%
                   
                   
                   
Note: The above tables are presented on a tax equivalent basis.            
                   


Republic First Bancorp, Inc.           
Average Balances and Net Interest Income          
(unaudited)            
             
  For the nine months ended For the nine months ended
(dollars in thousands) September 30, 2021 September 30, 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 $332,590 $294 0.12% $221,698 $438 0.26%
Securities  1,691,294  21,579 1.70%  1,032,289  15,687 2.03%
Loans receivable  2,609,622  86,086 4.41%  2,255,283  68,032 4.03%
Total interest-earning assets 4,633,506  107,959 3.12%  3,509,270  84,157 3.20%
             
Other assets  262,383      265,484    
             
Total assets $4,895,889     $3,774,754    
             
Interest-bearing liabilities:            
             
Demand non interest-bearing$1,207,065    $891,385    
Demand interest-bearing  1,945,074  9,706 0.67%  1,426,181  9,333 0.87%
Money market & savings  1,110,962  2,888 0.35%  864,517  4,827 0.75%
Time deposits  188,613  1,245 0.88%  217,526  3,138 1.93%
Total deposits  4,451,714  13,839 0.42%  3,399,609  17,298 0.68%
             
Total interest-bearing deposits 3,244,649  13,839 0.57%  2,508,224  17,298 0.92%
             
Other borrowings  26,019  200 1.03%  29,932  293 1.31%
             
             
Total interest-bearing liabilities 3,270,668  14,039 0.57%  2,538,156  17,591 0.93%
Total deposits and            
  other borrowings  4,477,733  14,039 0.42%  3,429,541  17,591 0.69%
             
             
Non interest-bearing liabilities 101,678      85,841    
Shareholders' equity  316,478      259,372    
Total liabilities and            
shareholders' equity $4,895,889     $3,774,754    
             
Net interest income   $93,920     $66,566  
Net interest spread     2.55%     2.27%
             
Net interest margin     2.71%     2.53%
             
             
             
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  Nine months ended
 September 30,June 30, September 30,Dec 31 September 30,September 30,
(dollars in thousands) 2021   2021   2020   2020   2021   2020 
            
            
Balance at beginning of period$16,110  $16,091  $11,040  $9,266  $12,975  $9,266 
            
Provision charged to operating expense 900   -   850   4,200   3,900   2,800 
  17,010   16,091   11,890   13,466   16,875   12,066 
            
Recoveries on loans charged-off:           
  Commercial 60   43   10   51   250   41 
  Consumer 149   49   3   13   201   10 
Total recoveries 209   92   13   64   451   51 
            
Loans charged-off:           
  Commercial 1   (61)  (50)  (448)  (60)  (199)
  Consumer (2)  (12)  (2)  (107)  (48)  (67)
            
Total charged-off (1)  (73)  (52)  (555)  (108)  (266)
            
Net (charge-offs) recoveries 208   19   (39)  (491)  343   (215)
            
Balance at end of period$17,218  $16,110  $11,851  $12,975  $17,218  $11,851 
            
            
Net (charge-offs) recoveries as a percentage of          
  average loans outstanding (0.03%)  (0.00%)  0.01%  0.02%  (0.02%)  0.01%
            
Allowance for loan losses as a percentage           
  of period-end loans 0.69%  0.64%  0.45%  0.49%  0.69%  0.45%
            


Republic First Bancorp, Inc.          
Summary of Non-Performing Loans and Assets        
(unaudited)         
          
 September 30,June 30, March 31, December 31, September 30,
(dollars in thousands) 2021   2021   2021   2020   2020 
          
Non-accrual loans:         
  Commercial real estate$10,040  $10,069  $10,628  $10,232  $10,641 
  Consumer and other 2,892   1,982   2,562   2,014   1,808 
Total non-accrual loans 12,932   12,051   13,190   12,246   12,449 
          
Loans past due 90 days or more         
  and still accruing 13   996   -   612   - 
          
Total non-performing loans 12,945   13,047   13,190   12,858   12,449 
          
Other real estate owned 532   852   1,188   1,188   1,113 
          
Total non-performing assets$13,477  $13,899  $14,378  $14,046  $13,562 
          
          
Non-performing loans to total loans 0.52%  0.52%  0.49%  0.49%  0.47%
          
Non-performing assets to total assets 0.25%  0.26%  0.27%  0.28%  0.27%
          
Non-performing loan coverage 133.01%  123.48%  121.99%  100.91%  95.20%
          
Allowance for loan losses as a percentage        
  of total period-end loans 0.69%  0.64%  0.59%  0.49%  0.45%
          
Non-performing assets / capital plus         
   allowance for loan losses 3.96%  4.13%  4.44%  4.37%  4.31%

 

 


FAQ

What were the earnings results for Republic First Bancorp for Q3 2021?

Republic First Bancorp reported a net income of $6.1 million for Q3 2021, a substantial increase from a net loss of $1.0 million in Q3 2020.

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

Deposits increased by $1.1 billion, or 27%, reaching $5.0 billion as of September 30, 2021.

What is the current status of Republic First Bancorp's loans?

Total loans decreased by 5% year-over-year; however, core loans increased by 15%, excluding PPP loans.

What is the impact of the 'Power of Red is Back' campaign?

The expansion strategy has led to significant growth in both deposits and customer base, contributing to improved financial performance.

How did the cost of funds perform for Republic First Bancorp in 2021?

The cost of funds decreased to 0.36% for the third quarter of 2021, compared to 0.59% in Q3 2020.

REPUBLIC FIRST BANCORP

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