Republic First Bancorp, Inc. Reports Asset Growth Of 19%; Deposits Increase By 17%

Jan 25, 2016, 14:41 ET from Republic First Bancorp, Inc.

PHILADELPHIA, Jan. 25, 2016 /PRNewswire/ -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2015.

 

 



Three Months Ended

($ in millions, except per share data)


12/31/15

12/31/14

% Change






Assets


$ 1,439.4

$    1,214.6

19%

Loans


874.8

781.9

12%

Deposits


1,249.3

1,072.2

17%

Total Revenue


$     15.7

$        12.0

31%

Net Income


0.8

0.9

(7%)

Net Income per Share


$     0.02

$        0.02

0%

"The fourth quarter brings a close to a very successful year for Republic Bank," said Harry D. Madonna, the Company's Chairman and Chief Executive Officer. "The new stores we've opened in Glassboro, Marlton and Berlin during 2015 have performed exceptionally well. We ended the year with stores under construction in Washington Township, NJ and Wynnewood, PA and several more in various stages of development for future openings."

"We continue to expand our presence in the Philadelphia region through an aggressive growth strategy which we refer to as 'The Power of Red is Back'," added Madonna. "Each day we welcome new fans into our stores and win them over with exceptional customer service. The growth in both loan and deposit balances clearly demonstrates our ongoing success with this strategy.  While we continue to make significant investments to build a new bank, we are very pleased with our ability to maintain consistent, profitable results from an income statement perspective."

The Company is in the midst of an aggressive expansion plan with the goal of increasing its store footprint while providing legendary customer service. There are currently seventeen stores serving customers in the Greater Philadelphia and Southern New Jersey region.  Additional stores are planned for Cherry Hill, Gloucester Township, Medford, Moorestown, Washington Township and Wynnewood.

Highlights for the Period Ended December 31, 2015

  • During the fourth quarter of 2015 the Company recognized income of $2.6 million related to an insurance settlement on an outstanding claim against a corporate policy.  During the quarter the Company also recorded a write-down of approximately $2.2 million against its largest OREO asset as a result of a decision to aggressively pursue a sale of this property below its appraised value.
  • Republic opened three new stores during 2015 and currently has two sites under construction scheduled to be completed in early 2016. There are also several additional sites in various stages of development for future store locations.
  • New stores opened within the last 2 years are currently growing deposits at an average rate of $34 million per year, while the average deposit growth for all stores over the last twelve months was approximately $12 million per store. 
  • Total deposits increased by $177 million, or 17%, to $1.2 billion as of December 31, 2015 compared to $1.1 billion as of December 31, 2014.
  • Non-interest bearing demand deposits increased by 9% to $244 million as of December 31, 2015 compared to $224 million as of December 31, 2014.
  • Total assets increased by $225 million, or 19%, to $1.4 billion as of December 31, 2015 compared to $1.2 billion as of December 31, 2014.
  • Total loans grew $93 million, or 12%, to $875 million as of December 31, 2015 compared to $782 million at December 31, 2014.
  • SBA lending continued to be a focal point of the Company's lending strategy. More than $8 million in new SBA loans were originated during the three month period ended December 31, 2015. Our team is currently ranked as the #1 SBA lender in the tri-state market of New Jersey, Pennsylvania and Delaware based on the dollar volume of loan originations.
  • The Company's Total Risk-Based Capital ratio was 13.19% and Tier I Leverage Ratio was 9.65% at December 31, 2015.
  • Tangible book value per share was $3.00 as of December 31, 2015. This amount excludes approximately $0.37 per share attributable to the deferred tax asset valuation allowance.

Income Statement

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


Three Months Ended


Twelve Months Ended


12/31/15

12/31/14

% Change


12/31/15

12/31/14

% Change











Total Revenue

$  15,727

$   11,967

31%


$  49,998

$   43,846

14%


Provision for Loan Losses

500

300

67%


500

900

(44%)


Non-interest Expenses

14,446

10,792

34%


47,091

40,550

16%


Net Income

790

853

(7%)


2,433

2,442

0%


Net Income per Share

$       0.02

$        0.02

0%


$      0.06

$      0.07

(14%)


The Company reported net income of $790 thousand, or $0.02 per share, for the three month period ended December 31, 2015, compared to net income of $853 thousand, or $0.02 per share, for the three month period ended December 31, 2014.

Net interest income increased by $1.4 million, or 15%, to $11.0 million for the three month period ended December 31, 2015 compared to $9.5 million for the three month period ended December 31, 2014.  This increase was driven by strong growth in interest-earning assets over the last twelve months.

Non-interest income increased to $4.7 million for the three month period ended December 31, 2015 compared to $2.4 million for the three month period ended December 31, 2014.  This increase was primarily driven by a $2.6 million insurance settlement recorded in the fourth quarter of 2015.  This settlement is related to a bond claim against a corporate insurance policy originally submitted in 2010.

Non-interest expenses increased by $3.7 million to $14.4 million during the three month period ended December 31, 2015 compared to $10.8 million during the three months ended December 31, 2014. This increase was primarily driven by an increase in writedowns of OREO assets. During the fourth quarter of 2015 the Company made a decision to aggressively pursue a potential sale of its largest OREO asset resulting in a write-down of approximately $2.2 million. Higher salaries, employee benefits, occupancy and equipment expenses associated with the addition of new stores related to the Company's expansion strategy over the last twelve months also contributed to the increase in non-interest expenses.

Net income for the twelve month period ended December 31, 2015 was $2.4 million, or $0.06 per share, compared to net income of $2.4 million, or $0.07 per share, for the twelve months ended December 31, 2014.

Total revenue increased by 14% to $50.0 million for the twelve month period ended December 31, 2015 compared to $43.8 million for the twelve month period ended December 31, 2014 as a result of strong growth in interest-earning assets over the last twelve months along with the insurance settlement described above.  Non-interest expenses grew $6.5 million year over year due to the increase in OREO writedowns combined with higher salaries, employee benefits, and occupancy and equipment expenses associated with the addition of new stores during 2015.

Balance Sheet

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

Description

12/31/15

12/31/14

% Change

09/30/15

% Change

Total assets

$ 1,439,443

$ 1,214,598

19%

$ 1,380,814

4%

Total loans (net)

866,066

770,404

12%

837,037

3%

Total deposits

1,249,298

1,072,230

17%

1,237,496

1%

Total core deposits

1,239,422

1,061,994

17%

1,227,506

1%

Total assets increased by $224.8 million, or 19%, as of December 31, 2015 when compared to December 31, 2014.  Deposits grew by $177.1 million to $1.2 billion as of December 31, 2015 compared to $1.1 billion as of December 31, 2014. The number of deposit accounts has grown by 44% during the past twelve months. The strong growth in assets, loans and deposits has been driven by the Company's successful execution of its aggressive growth strategy referred to as "The Power of Red is Back."

Core Deposits

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

Description

12/31/15

12/31/14

%
Change

09/30/15

%
Change

4th Qtr
2015
Cost of
Funds








Demand noninterest-bearing

$ 243,696

$ 224,245

9%

$ 243,836

0%

0.00%

Demand interest-bearing

381,499

283,768

34%

391,230

(2%)

0.40%

Money market and savings

556,525

488,848

14%

527,360

6%

0.41%

Certificates of deposit

57,702

65,133

(11%)

65,080

(11%)

0.78%

Total core deposits

$ 1,239,422

$1,061,994

17%

$ 1,227,506

1%

0.34%


Core deposits increased to $1.2 billion at December 31, 2015 compared to $1.1 billion at December 31, 2014 as the Company moves forward with its expansion strategy to increase the number of brick and mortar stores which drives the gathering of low-cost core deposits. The Company recognized strong growth in demand, money market and savings account balances on a year to year basis.

Lending

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

Description

12/31/15

% of
Total

12/31/14

% of
Total

09/30/15

% of

Total








Commercial real estate

$ 349,726

40%

$ 379,259

48%

$377,307

45%

Construction and land development

46,547

5%

29,861

4%

41,418

5%

Commercial and industrial

181,850

21%

145,113

19%

174,631

21%

Owner occupied real estate

246,398

28%

188,025

24%

203,735

24%

Consumer and other

48,126

6%

39,713

5%

46,136

5%

Residential mortgage

2,380

0%

408

0%

2,395

0%

Deferred fees

(258)


(439)


(262)


Gross loans

$874,769

100%

$781,940

100%

$845,360

100%








Gross loans increased by $92.8 million, or 12%, to $874.8 million at December 31, 2015 compared to $781.9 million at December 31, 2014 as a result of an increase in quality loan demand over the last twelve months and continued success with the relationship banking model.  The Company experienced strongest growth in the commercial and industrial and owner occupied real estate categories.

Asset Quality

The Company's non-performing asset balances and asset quality ratios are highlighted below:


Three Months Ended


12/31/15

09/30/15

12/31/14





Non-performing assets / total assets

1.66%

2.10%

2.07%

Quarterly net loan charge-offs / average loans

0.06%

0.04%

0.51%

Allowance for loan losses / gross loans

0.99%

0.98%

1.48%

Allowance for loan losses / non-performing loans

69%

55%

54%

Non-performing assets / capital and reserves

20%

24%

20%

The percentage of non-performing assets to total assets decreased to 1.66% at December 31, 2015, compared to 2.07% as of December 31, 2014. Non-performing loans to total loans decreased significantly to 1.44% at December 31, 2015 compared to 2.74% at December 31, 2014 as a result of the successful migration of certain assets to the other real estate owned category through the work-out process.

Capital

The Company's capital ratios at December 31, 2015 were as follows:


Actual

December 31, 2015

Regulatory Guidelines

"Well Capitalized"




Leverage Ratio

9.65%

5.00%

Common Equity Ratio

10.42%

6.50%

Tier 1 Risk Based Capital

12.40%

8.00%

Total Risk Based Capital

13.19%

10.00%

Tangible Common Equity

7.88%

                              n/a

Total shareholders' equity increased to $113.4 million at December 31, 2015 compared to $112.8 million at December 31, 2014.  Tangible book value per share increased to $3.00 at December 31, 2015 compared to $2.98 per share at December 31, 2014.

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 seventeen stores located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Haddonfield, Cherry Hill, Voorhees, Glassboro, Marlton and Berlin, New Jersey.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with the most convenient hours compared to any bank in its market.  The Bank also 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.  For more information about Republic Bank, visit www.myrepublicbank.com.

Forward Looking Statements

The Company may from time to time make written or oral "forward-looking statements", including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.  For example, risks and uncertainties can arise with changes in: general economic conditions, including turmoil in the financial markets and related efforts of government agencies to stabilize the financial system; the adequacy of our allowance for loan losses and our methodology for determining such allowance; adverse changes in our loan portfolio and credit risk-related losses and expenses; concentrations within our loan portfolio, including our exposure to commercial real estate loans, and to our primary service area; changes in interest rates; business conditions in the financial services industry, including competitive pressure among financial services companies, new service and product offerings by competitors, price pressures and similar items; deposit flows; loan demand; the regulatory environment, including evolving banking industry standards, changes in legislation or regulation; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; our securities portfolio and the valuation of our securities; accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements; rapidly changing technology; litigation liabilities, including costs, expenses, settlements and judgments; and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.  You should carefully review the risk factors described in the Form 10-K for the year ended December 31, 2014 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.

 

Republic First Bancorp, Inc.







Consolidated Balance Sheets







(Unaudited)


























December 31,


September 30,


December 31,

(dollars in thousands, except per share amounts)

2015


2015


2014












ASSETS










Cash and due from banks


$         13,777


$         14,212


$         14,822


Interest-bearing deposits and federal funds sold

13,362


96,307


114,004



Total cash and cash equivalents


27,139


110,519


128,826













Securities - Available for sale


284,795


209,119


185,379


Securities - Held to maturity


172,277


140,116


67,866


Restricted stock



3,059


1,179


1,157



Total investment securities


460,131


350,414


254,402













Loans held for sale



3,653


489


1,676













Loans receivable



874,769


845,360


781,940


Allowance for loan losses


(8,703)


(8,323)


(11,536)



Net loans




866,066


837,037


770,404













Premises and equipment


46,164


45,094


35,030


Other real estate owned



11,313


13,773


3,715


Other assets




24,977


23,488


20,545













Total Assets




$    1,439,443


$    1,380,814


$    1,214,598


































LIABILITIES










Non-interest bearing deposits


$       243,695


$       243,836


$       224,245


Interest bearing deposits



1,005,603


993,660


847,985



Total deposits



1,249,298


1,237,496


1,072,230













Short-term borrowings



47,000


-


-


Subordinated debt



22,476


22,476


22,476


Other liabilities



7,294


6,369


7,081













Total Liabilities



1,326,068


1,266,341


1,101,787












SHAREHOLDERS' EQUITY









Common stock - $0.01 par value


384


383


383


Additional paid-in capital



152,897


152,676


152,234


Accumulated deficit



(32,833)


(33,623)


(35,266)


Treasury stock at cost



(3,725)


(3,725)


(3,725)


Stock held by deferred compensation plan

(183)


(183)


(183)


Accumulated other comprehensive income (loss)

(3,165)


(1,055)


(632)













Total Shareholders' Equity


113,375


114,473


112,811
























Total Liabilities and Shareholders' Equity

$    1,439,443


$    1,380,814


$    1,214,598

 

 

Republic First Bancorp, Inc.











Consolidated Statements of Operations










(Unaudited)


































Three Months Ended


Twelve Months Ended







December 31,


September 30,


December 31,


December 31,


December 31,

(in thousands, except per share amounts)

2015


2015


2014


2015


2014
















INTEREST INCOME













Interest and fees on loans


$          9,786


$          9,648


$          9,236


$        37,781


$        34,869


Interest and dividends on investment securities

2,565


1,662


1,470


7,377


5,417


Interest on other interest earning assets

55


60


80


278


187



Total interest income



12,406


11,370


10,786


45,436


40,473
















INTEREST EXPENSE













Interest on deposits



1,137


1,099


968


4,266


3,536


Interest on borrowed funds


282


279


278


1,115


1,108



Total interest expense


1,419


1,378


1,246


5,381


4,644

















Net interest income



10,987


9,992


9,540


40,055


35,829


Provision for loan losses



500


-


300


500


900

















Net interest income after provision for loan losses

10,487


9,992


9,240


39,555


34,929
















NON-INTEREST INCOME













Service fees on deposit accounts


506


452


328


1,719


1,224


Gain on sale of SBA loans


455


884


1,903


3,139


4,717


Gain on sale of investment securities

35


64


-


108


458


Other non-interest income


3,744


204


196


4,977


1,618



Total non-interest income


4,740


1,604


2,427


9,943


8,017
















NON-INTEREST EXPENSE













Salaries and employee benefits


5,821


5,730


5,147


22,488


20,089


Occupancy and equipment


2,259


1,911


1,746


8,009


6,629


Legal and professional fees


584


345


615


2,183


2,758


Foreclosed real estate



3,066


425


732


4,239


1,794


Regulatory assessments and related fees

337


318


274


1,248


1,065


Other operating expenses


2,379


2,295


2,278


8,924


8,215



Total non-interest expense


14,446


11,024


10,792


47,091


40,550
















Income before benefit for income taxes


781


572


875


2,407


2,396
















Benefit for income taxes



(9)


(10)


22


(26)


(46)
















Net income




$             790


$             582


$             853


$          2,433


$          2,442































Net Income per Common Share












Basic




$            0.02


$            0.02


$            0.02


$            0.06


$            0.07


Diluted




$            0.02


$            0.02


$            0.02


$            0.06


$            0.07
















Average Common Shares Outstanding












Basic




37,826


37,816


37,815


37,818


34,232


Diluted




38,246


38,064


38,121


38,094


34,591

 

 

Republic First Bancorp, Inc.



















Average Balances and Net Interest Income
















(unaudited)














































































For the three months ended


For the three months ended


For the three months ended

(dollars in thousands)


December 31, 2015


September 30, 2015


December 31, 2014
























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


$     65,611


$      55


0.33%


$   106,357


$      60


0.22%


$   122,787


$      80


0.26%

Securities


409,141


2,656


2.60%


305,266


1,745


2.29%


234,479


1,527


2.60%

Loans receivable


855,124


9,870


4.58%


831,712


9,718


4.64%


757,953


9,283


4.86%

Total interest-earning assets


1,329,876


12,581


3.75%


1,243,335


11,523


3.68%


1,115,219


10,890


3.87%




















Other assets


85,340






82,638






55,997
























Total assets


$1,415,216






$1,325,973






$1,171,216
























Interest-bearing liabilities:






































Demand non interest-bearing


$   252,514






$   234,285






$   214,872





Demand interest-bearing


393,384


392


0.40%


372,795


378


0.40%


258,443


252


0.39%

Money market & savings


552,673


578


0.41%


500,687


538


0.43%


478,651


537


0.45%

Time deposits


71,463


167


0.93%


74,863


183


0.97%


76,756


179


0.93%

Total deposits


1,270,034


1,137


0.36%


1,182,630


1,099


0.37%


1,028,722


968


0.37%




















Total interest-bearing deposits


1,017,520


1,137


0.44%


948,345


1,099


0.46%


813,850


968


0.47%




















Other borrowings


23,087


282


4.85%


22,476


279


4.92%


22,689


278


4.86%







































Total interest-bearing liabilities


1,040,607


1,419


0.54%


970,821


1,378


0.56%


836,539


1,246


0.59%

Total deposits and 



















  other borrowings


1,293,121


1,419


0.44%


1,205,106


1,378


0.45%


1,051,411


1,246


0.47%







































Non interest-bearing liabilities


7,901






7,034






7,427





Shareholders' equity


114,194






113,833






112,378





Total liabilities and



















shareholders' equity


$1,415,216






$1,325,973






$1,171,216
























Net interest income




$11,162






$10,145






$ 9,644



Net interest spread






3.21%






3.12%






3.28%




















Net interest margin






3.33%






3.24%






3.43%


























































Note: The above tables are presented on a tax equivalent basis.














 

 

Republic First Bancorp, Inc.













Average Balances and Net Interest Income











(unaudited)






















































For the twelve months ended


For the twelve months ended

(dollars in thousands)


December 31, 2015


December 31, 2014


















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


$   106,876


$     278


0.26%


$     75,593


$     187


0.25%

Securities


309,018


7,692


2.49%


217,939


5,613


2.58%

Loans receivable


820,820


38,072


4.64%


724,231


35,052


4.84%

Total interest-earning assets


1,236,714


46,042


3.72%


1,017,763


40,852


4.01%














Other assets


74,505






50,302


















Total assets


$1,311,219






$1,068,065


















Interest-bearing liabilities:


























Demand non interest-bearing


$   235,810






$   189,810





Demand interest-bearing


349,055


1,401


0.40%


233,693


888


0.38%

Money market & savings


508,846


2,170


0.43%


439,484


1,929


0.44%

Time deposits


73,819


695


0.94%


78,073


719


0.92%

Total deposits


1,167,530


4,266


0.37%


941,060


3,536


0.38%














Total interest-bearing deposits


931,720


4,266


0.46%


751,250


3,536


0.47%














Other borrowings


22,640


1,115


4.92%


22,530


1,108


4.92%



























Total interest-bearing liabilities


954,360


5,381


0.56%


773,780


4,644


0.60%

Total deposits and 













  other borrowings


1,190,170


5,381


0.45%


963,590


4,644


0.48%



























Non interest-bearing liabilities


7,340






7,084





Shareholders' equity


113,709






97,391





Total liabilities and













shareholders' equity


$1,311,219






$1,068,065


















Net interest income




$40,661






$36,208



Net interest spread






3.16%






3.41%














Net interest margin






3.29%






3.56%








































Note: The above tables are presented on a tax equivalent basis.









 

 

Republic First Bancorp, Inc.










Summary of Allowance for Loan Losses and Other Related Data







(unaudited)

































Three months ended




 

Twelve months ended


December 31,


September 30,


December 31,


December 31,


December 31,

(dollars in thousands)

2015


2015


2014


2015


2014





















Balance at beginning of period

$         8,323


$         8,398


$       12,216


$       11,536


$       12,263











Provision charged to operating expense

500


-


300


500


900


8,823


8,398


12,516


12,036


13,163











Recoveries on loans charged-off:










  Commercial

1


2


120


58


385

  Consumer

1


1


-


34


-

Total recoveries

2


3


120


92


385











Loans charged-off:










  Commercial

(122)


(78)


(1,100)


(3,425)


(2,002)

  Consumer

-


-


-


-


(10)











Total charged-off

(122)


(78)


(1,100)


(3,425)


(2,012)











Net charge-offs

(120)


(75)


(980)


(3,333)


(1,627)











Balance at end of period

$         8,703


$         8,323


$       11,536


$         8,703


$       11,536





















Net charge-offs as a percentage of










  average loans outstanding

0.06%


0.04%


0.51%


0.41%


0.22%











Allowance for loan losses as a percentage










  of period-end loans

0.99%


0.98%


1.48%


0.99%


1.48%

 

Republic First Bancorp, Inc. 










Summary of Non-Performing Loans and Assets









(unaudited)





















December 31,


September 30,


June 30,


March 31,


December 31,

(dollars in thousands)

2015


2015


2015


2015


2014











Non-accrual loans:










  Commercial real estate

$        12,080


$        13,825


$        15,559


$        19,530


$        21,011

  Consumer and other

542


547


418


426


429

Total non-accrual loans

12,622


14,372


15,977


19,956


21,440











Loans past due 90 days or more










  and still accruing

-


844


256


5,013


-











Total non-performing loans

12,622


15,216


16,233


24,969


21,440











Other real estate owned

11,313


13,773


13,162


3,827


3,715











Total non-performing assets

$        23,935


$        28,989


$        29,395


$        28,796


$        25,155





















Non-performing loans to total loans

1.44%


1.80%


1.97%


3.17%


2.74%











Non-performing assets to total assets

1.66%


2.10%


2.31%


2.28%


2.07%











Non-performing loan coverage

68.95%


54.70%


51.73%


43.83%


53.81%











Allowance for loan losses as a percentage










  of total period-end loans

0.99%


0.98%


1.02%


1.39%


1.48%











Non-performing assets / capital plus










   allowance for loan losses

19.61%


23.61%


24.13%


23.07%


20.23%

 

Logo - http://photos.prnewswire.com/prnh/20100707/PH31611LOGO

 

 

SOURCE Republic First Bancorp, Inc.



RELATED LINKS

http://www.myrepublicbank.com
http://www.myrepublicbank.com