Republic First Bancorp, Inc. Reports Third Quarter Financial Results; Momentum Continues for America’s #1 Bank for Service
Republic First Bancorp, Inc. (NASDAQ: FRBK) reported its Q3 2020 financial results, showing a significant increase in total deposits and loans. Total deposits rose 43% year-over-year to $3.9 billion, while total loans increased 68% to $2.6 billion. Despite a reported net loss of $1 million, attributed to a non-cash goodwill impairment charge of $5 million, adjusted earnings for the nine months ended September 30, 2020, were $4.7 million. The bank's asset quality improved, with non-performing assets decreasing to 0.27%. Revenue grew 27% in Q3 compared to the previous year.
- Total deposits increased by $1.2 billion, or 43%, year-over-year.
- Total loans grew by $1.1 billion, or 68%, year-over-year.
- Adjusted net income for the nine-month period was $4.7 million, compared to a loss of $1.0 million at the same time last year.
- Total revenue increased by 27% in Q3 2020 compared to Q3 2019.
- Non-performing assets ratio improved to 0.27%.
- Reported a net loss of $1 million due to a $5 million goodwill impairment charge.
PHILADELPHIA, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2020.
Q3-2020 Financial Highlights
|
Vernon W. Hill, II, Chairman of Republic First Bancorp said:
“America’s #1 Bank for Service continues to deliver exceptional growth results even in a challenging economic environment caused by the effects of the COVID-19 pandemic.”
| 09/30/20* | 09/30/19 | Increase | % | ||
| Assets | + | 36 | % | ||
| Loans | + | 25 | % | ||
| Deposits | + | 38 | % | ||
“These organic growth results demonstrate the success we are capable of achieving through our unwavering commitment to extraordinary customer service and convenience. The goal of our model is to create FANS NOT CUSTOMERS, who join our brand, remain loyal and refer family and friends. We are clearly achieving this goal across all delivery channels.”
“During the third quarter we were also pleased to announce the successful completion of the sale of
Harry D. Madonna, President and Chief Executive Officer of Republic First Bancorp added:
“Our ongoing focus on cost control measures continues to drive positive operating leverage. Total revenue increased by
*Balances as of 9/30/20 exclude the temporary impact of the PPP loan program
Financial Results
A summary of the income statement, excluding the charge for goodwill impairment, for the period ended September 30, 2020 can be found in the following table:
| ($ in millions) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| 09/30/20 | 09/30/19 | Change | 09/30/20 | 09/30/19 | Change | |||||||||||||||||
| Total Revenue | $ | 33.0 | $ | 25.9 | 27 | % | $ | 91.1 | $ | 76.4 | 19 | % | ||||||||||
| Non-Interest Expense* | 28.6 | 27.8 | 3 | % | 82.6 | 77.0 | 7 | % | ||||||||||||||
| Net Income (Loss)* | 2.8 | (1.8 | ) | 252 | % | 4.7 | (1.0 | ) | 562 | % | ||||||||||||
| Net Income (Loss) per share* | $ | 0.04 | $ | (0.03 | ) | 233 | % | $ | 0.08 | $ | (0.02 | ) | 500 | % | ||||||||
| Net Interest Margin | 2.35 | % | 2.82 | % | 2.53 | % | 2.92 | % | ||||||||||||||
| Net Interest Margin (excl PPP impact) | 2.41 | % | 2.62 | % | ||||||||||||||||||
*Note: See disclosure related to non-GAAP financial measures at the end of this release.
Loss Mitigation and Loan Portfolio Analysis
Management has continued to analyze and assess the key performance indicators related to the loan portfolio. 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 periods ended September 30, 2020 and June 30, 2020:
| 09/30/20 | 06/30/20 | ||||||||||||||||
| ($ in millions) | Deferred Balances | % of Total Loans* | Deferred Balances | % of Total Loans* | |||||||||||||
| Deferral of Principal Only | $ | 65 | 3 | % | $ | 176 | 9 | % | |||||||||
| Deferral of Principal and Interest | 50 | 3 | % | 268 | 14 | % | |||||||||||
| Total Deferral Balances | $ | 115 | 6 | % | $ | 444 | 24 | % | |||||||||
| # of Loan Accounts on Deferral | 95 | 2 | % | 491 | 9 | % | |||||||||||
*Note: PPP loans excluded from total loans when calculating % of total loan balances.
Loan balances with deferred payments have declined to
Financial Summary for the Period Ended September 30, 2020
The changes in the balance sheet as of September 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 September 30, 2020 can be found in the following table:
| Excluding | ||||||||||||||||||||||
| PPP | YOY Growth | YOY Growth | ||||||||||||||||||||
| Actual | Program | Actual | (Including PPP) | (Excluding PPP) | ||||||||||||||||||
| ($ in millions) | 09/30/20 | 09/30/20 | 09/30/19 | ($) | (%) | ($) | (%) | |||||||||||||||
| Assets | $ | 4,959 | $ | 4,188 | $ | 3,086 | $ | 1,873 | 61 | % | $ | 1,102 | 36 | % | ||||||||
| Loans | 2,629 | 1,962 | 1,569 | 1,060 | 68 | % | 393 | 25 | % | |||||||||||||
| Deposits | 3,905 | 3,780 | 2,740 | 1,165 | 43 | % | 1,040 | 38 | % | |||||||||||||
| Short-Term Borrowings | 646 | - | - | 646 | 100 | % | - | - | % | |||||||||||||
Additional Financial Highlights
- A
$50 million capital raise was completed during the third quarter through a registered direct offering of the Company’s convertible preferred stock. - Total assets increased by
$1.9 billion , or61% , to$5.0 billion as of September 30, 2020 compared to$3.1 billion as of September 30, 2019. Excluding the impact of the PPP loan program total assets increased by$1.1 billion , or36% , year over year.
- We have thirty-one convenient store locations open today. During the third quarter of 2020 we opened a new store in Bensalem, PA. There are also multiple sites in various stages of development for future store locations.
- Excluding the impact of goodwill impairment, profitability improved quarter to quarter as we recognized net income of
$2.8 million , or$0.04 per share, for the three months ended September 30, 2020 compared to net income of$2.5 million , or$0.04 per share for the three months ended June 30, 2020. We reported a net loss of$1.8 million , or$(0.03) per share, for the three months ended September 30, 2019. - Excluding the impact of goodwill impairment, profitability also improved year over year. Net income for the nine month period ended September 30, 2020 was
$4.7 million , or$0.08 per share, compared to a net loss of$1.0 million , or$(0.02) per share for the nine months ended September 30, 2019. - The net interest margin decreased by 47 basis points to
2.35% for the three months ended September 30, 2020 compared to2.82% for the three months ended September 30, 2019. The decline in the margin was driven by the impact of the PPP loans that were added to the balance sheet during the second quarter of 2020, along with the lower interest rate environment as a result of rate reductions by the Federal Reserve Bank during the first quarter. Excluding the impact of the PPP loan program the net interest margin would have been2.41% for the three months ended September 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. Conversion to the Visa platform is currently in process.
- The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Loan production during the first nine months of 2020 was strong despite the impact of the COVID-19 pandemic and the pipeline for the remainder of the year looks equally as promising. The Oak Mortgage team has originated more than
$600 million in mortgage loans over the last twelve months. - The Company’s Total Risk-Based Capital ratio was
13.98% and Tier I Leverage Ratio was8.81% at September 30, 2020. - Book value per common share increased to
$4.33 as of September 30, 2020 compared to$4.26 as of September 30, 2019.
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
| Three Months Ended | ||||||||||||||||
| 09/30/20 | 06/30/20 | % Change | 09/30/19 | % Change | ||||||||||||
| Net Interest Income | $ | 22,930 | $ | 22,427 | 2 | % | $ | 19,382 | 18 | % | ||||||
| Non-interest Income | 10,031 | 8,424 | 19 | % | 6,554 | 53 | % | |||||||||
| Total Revenue | 32,961 | 30,851 | 7 | % | 25,936 | 27 | % | |||||||||
| Provision for Loan Losses | 850 | 1,000 | (15 | %) | 450 | 89 | % | |||||||||
| Other Non-interest Expense | 28,569 | 26,664 | 7 | % | 27,824 | 3 | % | |||||||||
| Income (Loss) Before Goodwill Impairment | 3,542 | 3,187 | 11 | % | (2,338 | ) | 251 | % | ||||||||
| Goodwill Impairment | 5,011 | - | 100 | % | - | 100 | % | |||||||||
| Income (Loss) Before Taxes | (1,469 | ) | 3,187 | (146 | %) | (2,338 | ) | 37 | % | |||||||
| Provision (Benefit) for Taxes | (503 | ) | 675 | (175 | %) | (516 | ) | 3 | % | |||||||
| Net Income (Loss) | (966 | ) | 2,512 | (138 | %) | (1,822 | ) | 47 | % | |||||||
| Net Income (Loss) per share | $ | (0.02 | ) | $ | 0.04 | (150 | %) | $ | (0.03 | ) | 33 | % | ||||
| Nine Months Ended | ||||||||||||||
| 09/30/20 | 09/30/19 | % Change | ||||||||||||
| Net Interest Income | $ | 66,111 | $ | 57,893 | 14 | % | ||||||||
| Non-Interest Income | 25,000 | 18,525 | 35 | % | ||||||||||
| Total Revenue | 91,111 | 76,418 | 19 | % | ||||||||||
| Provision for Loan Losses | 2,800 | 750 | 273 | % | ||||||||||
| Other Non-interest Expense | 82,505 | 77,002 | 7 | % | ||||||||||
| Income (Loss) Before Goodwill Impairment | 5,806 | (1,334 | ) | 535 | % | |||||||||
| Goodwill Impairment | 5,011 | - | 100 | % | ||||||||||
| Income (Loss) Before Taxes | 795 | (1,334 | ) | 160 | % | |||||||||
| Provision (Benefit) for Taxes | (158 | ) | (319 | ) | 50 | % | ||||||||
| Net Income (Loss) | 953 | (1,015 | ) | 194 | % | |||||||||
| Net Income (Loss) per Share | $ | 0.02 | $ | (0.02 | ) | 200 | % | |||||||
The Company reported a net loss of
Earnings in the third quarter of 2020 were impacted by a goodwill impairment charge of
The Company continues to demonstrate progress with operating leverage. Total revenue increased by
Interest income increased by
Interest expense decreased by
The net interest margin for the three month period ended September 30, 2020 decreased by 47 basis points to
Non-interest income increased by
Excluding the goodwill charge, non-interest expense increased by
Deposits
Deposits by type of account are as follows (dollars in thousands):
| Description | 09/30/20 | 09/30/19 | % Change | 06/30/20 | % Change | |||||||
| Demand noninterest-bearing | $ | 1,049,169 | $ | 595,869 | 76 | % | $ | 1,095,782 | (4 | %) | ||
| Demand interest-bearing | 1,618,342 | 1,227,969 | 32 | % | 1,435,198 | 13 | % | |||||
| Money market and savings | 1,034,799 | 698,991 | 48 | % | 902,528 | 15 | % | |||||
| Certificates of deposit | 203,296 | 217,203 | (6 | %) | 210,446 | (3 | %) | |||||
| Total deposits | $ | 3,905,606 | $ | 2,740,032 | 43 | % | $ | 3,643,954 | 7 | % | ||
Deposits increased to
Lending
Loans by type are as follows (dollars in thousands):
Description | 09/30/20 | % of Total | 09/30/19 | % of Total | 06/30/20 | % of Total | ||||||
| Commercial and industrial | $ | 228,145 | 9 | % | $ | 187,837 | 12 | % | $ | 224,504 | 9 | % |
| Owner occupied real estate | 427,026 | 16 | % | 397,843 | 26 | % | 434,422 | 17 | % | |||
| Commercial real estate | 676,460 | 26 | % | 570,327 | 36 | % | 664,605 | 26 | % | |||
| Construction and land development | 164,671 | 6 | % | 109,582 | 7 | % | 150,157 | 6 | % | |||
| Residential mortgage | 365,279 | 14 | % | 205,498 | 13 | % | 313,287 | 12 | % | |||
| Paycheck protection program (net) | 667,842 | 25 | % | - | - | % | 653,593 | 26 | % | |||
| Consumer and other | 99,975 | 4 | % | 98,293 | 6 | % | 101,680 | 4 | % | |||
| Gross loans | $ | 2,629,398 | 100 | % | $ | 1,569,380 | 100 | % | $ | 2,542,248 | 100 | % |
Gross loans increased by
Asset Quality
The Company’s asset quality ratios are highlighted below:
| Three Months Ended | ||||||
| 09/30/20 | 06/30/20 | 09/30/19 | ||||
| Non-performing assets / capital and reserves | 4 | % | 5 | % | 7 | % |
| Non-performing assets / total assets | 0.27 | % | 0.31 | % | 0.61 | % |
| Quarterly net loan charge-offs / average loans | 0.01 | % | 0.03 | % | 0.01 | % |
| Allowance for loan losses / gross loans | 0.45 | % | 0.43 | % | 0.54 | % |
| Allowance for loan losses / non-performing loans | 95 | % | 87 | % | 70 | % |
The percentage of non-performing assets to total assets decreased to
Capital
The Company’s capital ratios at September 30, 2020 were as follows:
| Actual 09/30/20 Bancorp | Actual 09/30/20 Bank | Regulatory Guidelines “Well Capitalized” | ||||
| Leverage Ratio | 8.81 | % | 7.98 | % | 5.00 | % |
| Common Equity Ratio | 10.89 | % | 12.21 | % | 6.50 | % |
| Tier 1 Risk Based Capital | 13.46 | % | 12.21 | % | 8.00 | % |
| Total Risk Based Capital | 13.98 | % | 12.72 | % | 10.00 | % |
| Tangible Common Equity | 5.13 | % | 5.68 | % | n/a | |
Total shareholders’ equity increased to
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. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in a table following the financial schedules included with this press release.
Analyst and Investor Call
An analyst and investor call will be held on the following date and time:
| Date: | October 29, 2020 |
| Time: | 12:15pm (EDT) |
| From the U.S. dial: | (888) 466-9845 [US Toll Free] or |
| (847) 619-6751 [US Toll] | |
| Participant Pin: | 5572 934# |
| 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-one 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 June 30, 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) | 2020 | 2020 | 2019 | ||||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 43,689 | $ | 36,786 | $ | 57,562 | |||||||||
| Interest-bearing deposits and federal funds sold | 874,472 | 654,458 | 143,915 | ||||||||||||
| Total cash and cash equivalents | 918,161 | 691,244 | 201,477 | ||||||||||||
| Securities - Available for sale | 440,655 | 382,221 | 379,962 | ||||||||||||
| Securities - Held to maturity | 688,939 | 556,159 | 687,425 | ||||||||||||
| Restricted stock | 3,789 | 3,789 | 2,371 | ||||||||||||
| Total investment securities | 1,133,383 | 942,169 | 1,069,758 | ||||||||||||
| Loans held for sale | 42,549 | 26,126 | 21,210 | ||||||||||||
| Loans receivable | 2,629,398 | 2,542,248 | 1,569,380 | ||||||||||||
| Allowance for loan losses | (11,851 | ) | (11,040 | ) | (8,467 | ) | |||||||||
| Net loans | 2,617,547 | 2,531,208 | 1,560,913 | ||||||||||||
| Premises and equipment | 124,034 | 121,149 | 111,573 | ||||||||||||
| Other real estate owned | 1,113 | 1,144 | 6,653 | ||||||||||||
| Other assets | 121,969 | 121,603 | 114,337 | ||||||||||||
| Total Assets | $ | 4,958,756 | $ | 4,434,643 | $ | 3,085,921 | |||||||||
| LIABILITIES | |||||||||||||||
| Non-interest bearing deposits | $ | 1,049,169 | $ | 1,095,782 | $ | 595,869 | |||||||||
| Interest bearing deposits | 2,856,437 | 2,548,172 | 2,144,163 | ||||||||||||
| Total deposits | 3,905,606 | 3,643,954 | 2,740,032 | ||||||||||||
| Short-term borrowings | 646,267 | 438,478 | - | ||||||||||||
| Subordinated debt | 11,270 | 11,268 | 11,263 | ||||||||||||
| Other liabilities | 92,675 | 85,765 | 83,783 | ||||||||||||
| Total Liabilities | 4,655,818 | 4,179,465 | 2,835,078 | ||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||
| Preferred stock - | 20 | - | - | ||||||||||||
| Common stock - | 594 | 594 | 594 | ||||||||||||
| Additional paid-in capital | 321,915 | 273,118 | 271,412 | ||||||||||||
| Accumulated deficit | (11,263 | ) | (10,297 | ) | (9,731 | ) | |||||||||
| Treasury stock at cost | (3,725 | ) | (3,725 | ) | (3,725 | ) | |||||||||
| Stock held by deferred compensation plan | (183 | ) | (183 | ) | (183 | ) | |||||||||
| Accumulated other comprehensive loss | (4,420 | ) | (4,329 | ) | (7,524 | ) | |||||||||
| Total Shareholders' Equity | 302,938 | 255,178 | 250,843 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 4,958,756 | $ | 4,434,643 | $ | 3,085,921 | |||||||||
| Republic First Bancorp, Inc. | |||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| September 30, | June 30, | June 30, | September 30, | September 30, | |||||||||||||||||
| (in thousands, except per share amounts) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||
| Interest and fees on loans | $ | 24,683 | $ | 22,737 | $ | 18,707 | $ | 67,593 | $ | 55,076 | |||||||||||
| Interest and dividends on investment securities | 3,778 | 5,072 | 6,724 | 15,671 | 21,265 | ||||||||||||||||
| Interest on other interest earning assets | 99 | 50 | 777 | 438 | 1,631 | ||||||||||||||||
| Total interest income | 28,560 | 27,859 | 26,208 | 83,702 | 77,972 | ||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||
| Interest on deposits | 5,553 | 5,320 | 6,689 | 17,298 | 19,398 | ||||||||||||||||
| Interest on borrowed funds | 77 | 112 | 137 | 293 | 681 | ||||||||||||||||
| Total interest expense | 5,630 | 5,432 | 6,826 | 17,591 | 20,079 | ||||||||||||||||
| Net interest income | 22,930 | 22,427 | 19,382 | 66,111 | 57,893 | ||||||||||||||||
| Provision for loan losses | 850 | 1,000 | 450 | 2,800 | 750 | ||||||||||||||||
| Net interest income after provision for loan losses | 22,080 | 21,427 | 18,932 | 63,311 | 57,143 | ||||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||||
| Service fees on deposit accounts | 2,134 | 2,328 | 1,990 | 6,166 | 5,450 | ||||||||||||||||
| Mortgage banking income | 4,962 | 3,389 | 2,797 | 10,809 | 8,048 | ||||||||||||||||
| Gain on sale of SBA loans | 649 | 269 | 944 | 1,567 | 2,593 | ||||||||||||||||
| Gain on sale of investment securities | 279 | 1,640 | 520 | 2,760 | 1,103 | ||||||||||||||||
| Other non-interest income | 2,007 | 798 | 303 | 3,698 | 1,331 | ||||||||||||||||
| Total non-interest income | 10,031 | 8,424 | 6,554 | 25,000 | 18,525 | ||||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||||
| Salaries and employee benefits | 14,596 | 13,177 | 14,314 | 41,154 | 40,378 | ||||||||||||||||
| Occupancy and equipment | 5,524 | 5,554 | 4,734 | 16,375 | 12,970 | ||||||||||||||||
| Legal and professional fees | 940 | 1,009 | 1,123 | 2,879 | 2,888 | ||||||||||||||||
| Foreclosed real estate | 80 | 75 | 799 | 437 | 1,653 | ||||||||||||||||
| Regulatory assessments and related fees | 625 | 675 | 62 | 1,930 | 904 | ||||||||||||||||
| Goodwill impairment | 5,011 | - | - | 5,011 | - | ||||||||||||||||
| Other operating expenses | 6,804 | 6,174 | 6,792 | 19,730 | 18,209 | ||||||||||||||||
| Total non-interest expense | 33,580 | 26,664 | 27,824 | 87,516 | 77,002 | ||||||||||||||||
| Income (loss) before provision (benefit) for income taxes | (1,469 | ) | 3,187 | (2,338 | ) | 795 | (1,334 | ) | |||||||||||||
| Provision (benefit) for income taxes | (503 | ) | 675 | (516 | ) | (158 | ) | (319 | ) | ||||||||||||
| Net income (loss) | $ | (966 | ) | $ | 2,512 | $ | (1,822 | ) | $ | 953 | $ | (1,015 | ) | ||||||||
| Net Income (Loss) per Common Share | |||||||||||||||||||||
| Basic | $ | (0.02 | ) | $ | 0.04 | $ | (0.03 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||
| Diluted | $ | (0.02 | ) | $ | 0.04 | $ | (0.03 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||
| Average Common Shares Outstanding | |||||||||||||||||||||
| Basic | 58,853 | 58,851 | 58,843 | 58,851 | 58,830 | ||||||||||||||||
| Diluted | 64,432 | 58,883 | 59,207 | 60,751 | 59,416 | ||||||||||||||||
| 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, 2020 | June 30, 2020 | September 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 | $ | 383,632 | $ | 99 | 0.10 | % | $ | 198,345 | $ | 50 | 0.10 | % | $ | 146,446 | $ | 777 | 2.10 | % | |||||||||
| Securities | 908,166 | 3,784 | 1.67 | % | 1,033,560 | 5,077 | 1.96 | % | 1,055,154 | 6,743 | 2.56 | % | |||||||||||||||
| Loans receivable | 2,617,981 | 24,829 | 3.77 | % | 2,335,500 | 22,884 | 3.94 | % | 1,540,834 | 18,816 | 4.84 | % | |||||||||||||||
| Total interest-earning assets | 3,909,779 | 28,712 | 2.92 | % | 3,567,405 | 28,011 | 3.16 | % | 2,742,434 | 26,336 | 3.81 | % | |||||||||||||||
| Other assets | 269,071 | 266,178 | 247,682 | ||||||||||||||||||||||||
| Total assets | $ | 4,178,850 | $ | 3,833,583 | $ | 2,990,116 | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand non interest-bearing | $ | 1,043,116 | $ | 984,771 | $ | 563,691 | |||||||||||||||||||||
| Demand interest-bearing | 1,541,837 | 3,056 | 0.79 | % | 1,397,790 | 2,856 | 0.82 | % | 1,168,404 | 3,752 | 1.27 | % | |||||||||||||||
| Money market & savings | 980,979 | 1,613 | 0.65 | % | 858,782 | 1,431 | 0.67 | % | 702,547 | 1,814 | 1.02 | % | |||||||||||||||
| Time deposits | 217,554 | 884 | 1.62 | % | 208,838 | 1,033 | 1.99 | % | 208,624 | 1,123 | 2.14 | % | |||||||||||||||
| Total deposits | 3,783,486 | 5,553 | 0.58 | % | 3,450,181 | 5,320 | 0.62 | % | 2,643,266 | 6,689 | 1.00 | % | |||||||||||||||
| Total interest-bearing deposits | 2,740,370 | 5,553 | 0.81 | % | 2,465,410 | 5,320 | 0.87 | % | 2,079,575 | 6,689 | 1.28 | % | |||||||||||||||
| Other borrowings | 32,343 | 77 | 0.95 | % | 45,474 | 112 | 0.99 | % | 14,037 | 137 | 3.87 | % | |||||||||||||||
| Total interest-bearing liabilities | 2,772,713 | 5,630 | 0.81 | % | 2,510,884 | 5,432 | 0.87 | % | 2,093,612 | 6,826 | 1.29 | % | |||||||||||||||
| Total deposits and | |||||||||||||||||||||||||||
| other borrowings | 3,815,829 | 5,630 | 0.59 | % | 3,495,655 | 5,432 | 0.62 | % | 2,657,303 | 6,826 | 1.02 | % | |||||||||||||||
| Non interest-bearing liabilities | 88,773 | 83,884 | 81,872 | ||||||||||||||||||||||||
| Shareholders' equity | 274,248 | 254,044 | 250,941 | ||||||||||||||||||||||||
| Total liabilities and | |||||||||||||||||||||||||||
| shareholders' equity | $ | 4,178,850 | $ | 3,833,583 | $ | 2,990,116 | |||||||||||||||||||||
| Net interest income | $ | 23,082 | $ | 22,579 | $ | 19,510 | |||||||||||||||||||||
| Net interest spread | 2.11 | % | 2.29 | % | 2.52 | % | |||||||||||||||||||||
| Net interest margin | 2.35 | % | 2.55 | % | 2.82 | % | |||||||||||||||||||||
| 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, 2020 | September 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 | $ | 221,698 | $ | 438 | 0.26 | % | $ | 96,245 | $ | 1,631 | 2.27 | % | |||||||
| Securities | 1,032,289 | 15,687 | 2.03 | % | 1,069,304 | 21,347 | 2.66 | % | |||||||||||
| Loans receivable | 2,255,283 | 68,032 | 4.03 | % | 1,506,482 | 55,408 | 4.92 | % | |||||||||||
| Total interest-earning assets | 3,509,270 | 84,157 | 3.20 | % | 2,672,031 | 78,386 | 3.92 | % | |||||||||||
| Other assets | 265,484 | 218,947 | |||||||||||||||||
| Total assets | $ | 3,774,754 | $ | 2,890,978 | |||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||
| Demand non interest-bearing | $ | 891,385 | $ | 533,922 | |||||||||||||||
| Demand interest-bearing | 1,426,181 | 9,333 | 0.87 | % | 1,142,515 | 11,896 | 1.39 | % | |||||||||||
| Money market & savings | 864,517 | 4,827 | 0.75 | % | 691,876 | 4,894 | 0.95 | % | |||||||||||
| Time deposits | 217,526 | 3,138 | 1.93 | % | 179,936 | 2,608 | 1.94 | % | |||||||||||
| Total deposits | 3,399,609 | 17,298 | 0.68 | % | 2,548,249 | 19,398 | 1.02 | % | |||||||||||
| Total interest-bearing deposits | 2,508,224 | 17,298 | 0.92 | % | 2,014,327 | 19,398 | 1.29 | % | |||||||||||
| Other borrowings | 29,932 | 293 | 1.31 | % | 26,836 | 681 | 3.39 | % | |||||||||||
| Total interest-bearing liabilities | 2,538,156 | 17,591 | 0.93 | % | 2,041,163 | 20,079 | 1.32 | % | |||||||||||
| Total deposits and | |||||||||||||||||||
| other borrowings | 3,429,541 | 17,591 | 0.69 | % | 2,575,085 | 20,079 | 1.04 | % | |||||||||||
| Non interest-bearing liabilities | 85,841 | 67,182 | |||||||||||||||||
| Shareholders' equity | 259,372 | 248,711 | |||||||||||||||||
| Total liabilities and | |||||||||||||||||||
| shareholders' equity | $ | 3,774,754 | $ | 2,890,978 | |||||||||||||||
| Net interest income | $ | 66,566 | $ | 58,307 | |||||||||||||||
| Net interest spread | 2.27 | % | 2.60 | % | |||||||||||||||
| Net interest margin | 2.53 | % | 2.92 | % | |||||||||||||||
| 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) | 2020 | 2020 | 2019 | 2019 | 2020 | 2019 | |||||||||||||||||
| Balance at beginning of period | $ | 11,040 | $ | 10,217 | $ | 8,056 | $ | 8,615 | $ | 9,266 | $ | 8,615 | |||||||||||
| Provision charged to operating expense | 850 | 1,000 | 450 | 1,905 | 2,800 | 750 | |||||||||||||||||
| 11,890 | 11,217 | 8,506 | 10,520 | 12,066 | 9,365 | ||||||||||||||||||
| Recoveries on loans charged-off: | |||||||||||||||||||||||
| Commercial | 10 | 14 | 59 | 219 | 41 | 214 | |||||||||||||||||
| Consumer | 3 | 1 | 3 | 9 | 10 | 7 | |||||||||||||||||
| Total recoveries | 13 | 15 | 62 | 228 | 51 | 221 | |||||||||||||||||
| Loans charged-off: | |||||||||||||||||||||||
| Commercial | (50 | ) | (149 | ) | (72 | ) | (1,356 | ) | (199 | ) | (1,002 | ) | |||||||||||
| Consumer | (2 | ) | (43 | ) | (29 | ) | (126 | ) | (67 | ) | (117 | ) | |||||||||||
| Total charged-off | (52 | ) | (192 | ) | (101 | ) | (1,482 | ) | (266 | ) | (1,119 | ) | |||||||||||
| Net (charge-offs) recoveries | (39 | ) | (177 | ) | (39 | ) | (1,254 | ) | (215 | ) | (898 | ) | |||||||||||
| Balance at end of period | $ | 11,851 | $ | 11,040 | $ | 8,467 | $ | 9,266 | $ | 11,851 | $ | 8,467 | |||||||||||
| Net (charge-offs) recoveries as a percentage of | |||||||||||||||||||||||
| average loans outstanding | 0.01 | % | 0.03 | % | 0.01 | % | 0.08 | % | 0.01 | % | 0.08 | % | |||||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||||||
| of period-end loans | 0.45 | % | 0.43 | % | 0.54 | % | 0.53 | % | 0.45 | % | 0.54 | % | |||||||||||
| 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) | 2020 | 2020 | 2020 | 2019 | 2019 | ||||||||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial real estate | $ | 10,641 | $ | 10,747 | $ | 12,060 | $ | 10,569 | $ | 10,180 | |||||||||
| Consumer and other | 1,808 | 1,970 | 2,125 | 1,844 | 1,743 | ||||||||||||||
| Total non-accrual loans | 12,449 | 12,717 | 14,185 | 12,413 | 11,923 | ||||||||||||||
| Loans past due 90 days or more | |||||||||||||||||||
| and still accruing | - | - | - | - | 129 | ||||||||||||||
| Total non-performing loans | 12,449 | 12,717 | 14,185 | 12,413 | 12,052 | ||||||||||||||
| Other real estate owned | 1,113 | 1,144 | 1,144 | 1,730 | 6,653 | ||||||||||||||
| Total non-performing assets | $ | 13,562 | $ | 13,861 | $ | 15,329 | $ | 14,143 | $ | 18,705 | |||||||||
| Non-performing loans to total loans | 0.47 | % | 0.50 | % | 0.75 | % | 0.71 | % | 0.77 | % | |||||||||
| Non-performing assets to total assets | 0.27 | % | 0.31 | % | 0.46 | % | 0.42 | % | 0.61 | % | |||||||||
| Non-performing loan coverage | 95.20 | % | 86.81 | % | 72.03 | % | 74.65 | % | 70.25 | % | |||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||
| of total period-end loans | 0.45 | % | 0.43 | % | 0.54 | % | 0.53 | % | 0.54 | % | |||||||||
| Non-performing assets / capital plus | |||||||||||||||||||
| allowance for loan losses | 4.31 | % | 5.21 | % | 5.84 | % | 5.47 | % | 7.21 | % | |||||||||
| Republic First Bancorp, Inc. | |||||||||||||||||||
| Non-GAAP to GAAP Reconciliation and Calculation of Non-GAAP Performance Measures | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | June 30, | September 30, | September 30, | |||||||||||||||
| (in thousands, except per share amounts) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
| Non-interest Expense | $ | 33,580 | $ | 26,664 | $ | 27,824 | $ | 87,516 | $ | 77,002 | |||||||||
| Less: Goodwill Impairment | (5,011 | ) | - | - | (5,011 | ) | - | ||||||||||||
| Adjusted Non-interest Expense | 28,569 | 26,664 | 27,824 | 82,505 | 77,002 | ||||||||||||||
| Net Income | (966 | ) | 2,512 | (1,822 | ) | 953 | (1,015 | ) | |||||||||||
| Plus: Goodwill Impairment | 5,011 | - | - | 5,011 | - | ||||||||||||||
| Less: Tax Effect of Goodwill Impairment | (1,271 | ) | - | - | (1,271 | ) | - | ||||||||||||
| Adjusted Net Income | 2,774 | 2,512 | (1,822 | ) | 4,693 | (1,015 | ) | ||||||||||||
| Average Common Shares Outstanding | |||||||||||||||||||
| Basic | 58,853 | 58,851 | 58,843 | 58,851 | 58,830 | ||||||||||||||
| Diluted | 64,432 | 58,883 | 59,207 | 60,751 | 59,416 | ||||||||||||||
| Net Income (Loss) per Common Share | |||||||||||||||||||
| Basic | $ | 0.05 | $ | 0.04 | $ | (0.03 | ) | $ | 0.08 | $ | (0.02 | ) | |||||||
| Diluted | $ | 0.04 | $ | 0.04 | $ | (0.03 | ) | $ | 0.08 | $ | (0.02 | ) | |||||||
FAQ
What were the Q3 2020 earnings for Republic First Bancorp (FRBK)?
How much did deposits increase for Republic First Bancorp in Q3 2020?
What growth was seen in loans for Republic First Bancorp (FRBK) during Q3 2020?
What impact did the COVID-19 pandemic have on Republic First Bancorp's financial results?
What was the asset quality like for Republic First Bancorp as of September 30, 2020?
