Republic First Bancorp, Inc. Reports Asset Growth Of 19%; Deposits Increase By 22%

Jul 28, 2015, 14:15 ET from Republic First Bancorp, Inc.

PHILADELPHIA, July 28, 2015 /PRNewswire/ -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the three month period ended June 30, 2015.

 

 

Three Months Ended

($ in millions, except per share data)

06/30/15

06/30/14

% Change

Assets

$  1,272.4

$    1,065.1

19%

Loans

822.9

718.9

14%

Deposits

1,129.8

924.7

22%

Total Revenue

$       11.6

$         10.8

8%

Net Income

0.5

0.5

(1%)

Net Income per Share

$     0.014

$       0.015

(7%)

 

"Our balance sheet growth continues to be extraordinarily positive, which underscores the strength of our expansion strategy," said Harry D. Madonna, the Company's Chairman and Chief Executive Officer.  "With the recent openings of our newest stores in Marlton and Berlin, NJ, we continue to find that our strong commitment to outstanding service is resonating with a growing Customer base that desires a personal touch when it comes to banking."

The Company is in the midst of an aggressive expansion plan referred to as "The Power of Red is Back" with the goal of increasing its store footprint while providing legendary customer service. "We are seeing a tremendous response to the unrivaled convenience and service that each and every one of our stores has to offer," added Madonna. "As evidenced by the significant increase in total assets, loans and deposits, Republic Bank is poised for continued success in the Philadelphia and South Jersey regions."

Highlights for the Period Ended June 30, 2015

  • Republic opened its 16th and 17th stores in Marlton and Berlin, NJ which were received with great acceptance by the many Fans that have come to open new accounts. The Company currently has six additional sites in various stages of construction and development for future store locations.
  • New stores opened within the last 2 years are currently growing deposits at an average rate of $46 million per year.  While the average deposit growth for all stores over the last twelve months was $14 million per store.
  • Total deposits increased by $205 million, or 22%, to $1.1 billion as of June 30, 2015 compared to $925 million as of June 30, 2014.
  • Non-interest bearing demand deposits increased by 21% to $242 million as of June 30, 2015 compared to $200 million as of June 30, 2014.
  • Total assets increased by $207 million, or 19%, to $1.3 billion as of June 30, 2015 compared to $1.1 billion as of June 30, 2014.
  • Total loans grew $104 million, or 14%, to $823 million as of June 30, 2015 compared to $719 million at June 30, 2014.
  • SBA lending continued to be a focal point of the Company's lending strategy. More than $12 million in new SBA loans were originated during the three month period ended June 30, 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.
  • Shareholders' equity increased by 2% to $113 million as of June 30, 2015 compared to $111 million as of June 30, 2014.
  • The Company's Total Risk-Based Capital ratio was 13.88% and Tier I Leverage Ratio was 10.62% at June 30, 2015.
  • Tangible book value per share was $3.00 as of June 30, 2015. This amount excludes approximately $0.38 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

Six Months Ended

06/30/15

06/30/14

% Change

06/30/15

06/30/14

% Change

Total Revenue

$  11,631

$   10,773

8%

$  22,675

$   21,302

6%

Provision for Loan Losses

-

300

(100%)

-

300

(100%)

Non-interest Expenses

11,103

9,957

12%

21,621

19,772

9%

Net Income

533

537

(1%)

1,061

1,292

(18%)

Net Income per Share

$     0.014

$     0.015

(7%)

$     0.028

$    0.042

(33%)

 

The Company reported net income of $533 thousand, or $0.01 per share, for the three month period ended June 30, 2015, compared to net income of $537 thousand, or $0.02 per share, for the three month period ended June 30, 2014.  Net income for the six month period ended June 30, 2015 was $1.1 million, or $0.03 per share, compared to net income of $1.3 million, or $0.04 per share, for the six months ended June 30, 2014.

Net interest income increased by $1.1 million, or 13%, to $9.6 million for the three month period ended June 30, 2015 compared to $8.5 million for the three month period ended June 30, 2014.  This increase was driven by strong growth in interest-earning assets over the last twelve months.

Non-interest expenses increased by $1.1 million to $11.1 million during the three month period ended June 30, 2015 compared to $10.0 million during the three months ended June 30, 2014. This increase was primarily driven by 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.

Balance Sheet

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

Description

06/30/15

06/30/14

% Change

03/31/15

% Change

Total assets

$ 1,272,418

$ 1,065,134

19%

$ 1,263,983

1%

Total loans (net)

814,477

706,806

15%

777,857

5%

Total deposits

1,129,797

924,684

22%

1,121,397

1%

Total core deposits

1,119,809

914,451

22%

1,111,409

1%

 

Total assets increased by $207.3 million, or 19%, as of June 30, 2015 when compared to June 30, 2014.  Deposits grew by $205.1 million to $1.1 billion as of June 30, 2015 compared to $924.7 million as of June 30, 2014. The number of deposit accounts has grown by 30% 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

06/30/15

06/30/14

% Change

03/31/15

%

Change

2nd Qtr 2015 Cost of Funds

Demand noninterest-bearing

$ 241,550

$ 199,553

21%

$ 237,307

2%

0.00%

Demand interest-bearing

327,342

212,710

54%

310,595

5%

0.41%

Money market and savings

488,873

431,612

13%

498,862

(2%)

0.41%

Certificates of deposit

62,044

70,576

(12%)

64,645

(4%)

0.79%

Total core deposits

$ 1,119,809

$ 914,451

22%

$ 1,111,409

1%

0.35%

 

Core deposits increased to $1.1 billion at June 30, 2015 compared to $914.5 million at June 30, 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

06/30/15

% of Total

06/30/14

% of Total

03/31/15

% of

Total

Commercial real estate

$ 371,051

45%

$ 353,458

49%

$364,397

46%

Construction and land development

34,947

4%

31,224

5%

35,238

5%

Commercial and industrial

166,912

20%

127,818

18%

159,819

20%

Owner occupied real estate

202,467

25%

167,130

23%

188,783

24%

Consumer and other

47,475

6%

37,255

5%

40,468

5%

Residential mortgage

401

0%

2,330

0%

405

0%

Deferred fees

(378)

(346)

(309)

Gross loans

$822,875

100%

$718,869

100%

$788,801

100%

 

Gross loans increased by $104.0 million, or 14%, to $822.9 million at June 30, 2015 compared to $718.9 million at June 30, 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 strong growth in almost every loan category.

Asset Quality

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

Three Months Ended

06/30/15

03/31/15

06/30/14

Non-performing assets / total assets

2.31%

2.28%

2.87%

Quarterly net loan charge-offs / average loans

1.26%

0.31%

0.11%

Allowance for loan losses / gross loans

1.02%

1.39%

1.68%

Allowance for loan losses / non-performing loans

52%

44%

45%

Non-performing assets / capital and reserves

24%

23%

25%

 

Non-performing assets decreased by $1.2 million to $29.4 million, or 2.31% of total assets, at June 30, 2015, compared to $30.6 million, or 2.87% of total assets, as of June 30, 2014.  Loan charge-offs in the second quarter of 2015 were $2.5 million, or 1.26% of average loans outstanding compared to $0.2 million or 0.11% of average loans during the second quarter of 2014.  This increase was driven by a charge-off associated with one commercial loan which was transferred to other real estate owned during the second quarter of 2015.  A loan loss provision for this loan had been recorded in a prior period.

Capital

The Company's capital ratios at June 30, 2015 were as follows:

Actual

June 30, 2015

Regulatory Guidelines

"Well Capitalized"

Leverage Ratio

10.62%

5.00%

Common Equity Ratio

10.95%

6.50%

Tier 1 Risk Based Capital

13.06%

8.00%

Total Risk Based Capital

13.88%

10.00%

Tangible Common Equity

8.92%

n/a

 

Total shareholders' equity increased to $113.4 million at June 30, 2015 compared to $111.4 million at June 30, 2014.  Tangible book value per share increased to $3.00 at June 30, 2015 compared to $2.95 per share at June 30, 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)

June 30,

March 31,

June 30,

(dollars in thousands, except per share amounts)

2015

2015

2014

ASSETS

Cash and due from banks

$     16,377

$     25,316

$     17,070

Interest-bearing deposits and federal funds sold

64,793

137,212

66,050

Total cash and cash equivalents

81,170

162,528

83,120

Securities - Available for sale

176,142

187,024

219,634

Securities - Held to maturity

119,338

66,742

21

Restricted stock

1,179

1,157

1,725

Total investment securities

296,659

254,923

221,380

Loans held for sale

3,464

4,955

491

Loans receivable

822,875

788,801

718,869

Allowance for loan losses

(8,398)

(10,944)

(12,063)

Net loans

814,477

777,857

706,806

Premises and equipment

40,961

36,573

29,041

Other real estate owned

13,162

3,827

3,637

Other assets

22,525

23,320

20,659

Total Assets

$1,272,418

$1,263,983

$1,065,134

LIABILITIES

Non-interest bearing deposits

$   241,550

$   237,307

$   199,553

Interest bearing deposits

888,247

884,090

725,131

Total deposits

1,129,797

1,121,397

924,684

Subordinated debt

22,476

22,476

22,476

Other liabilities

6,706

6,210

6,551

Total Liabilities

1,158,979

1,150,083

953,711

SHAREHOLDERS' EQUITY

Common stock - $0.01 par value

383

383

383

Additional paid-in capital

152,513

152,352

152,131

Accumulated deficit

(34,205)

(34,738)

(36,416)

Treasury stock at cost

(3,725)

(3,725)

(3,099)

Stock held by deferred compensation plan

(183)

(183)

(809)

Accumulated other comprehensive income (loss)

(1,344)

(189)

(767)

Total Shareholders' Equity

113,439

113,900

111,423

Total Liabilities and Shareholders' Equity

$1,272,418

$1,263,983

$1,065,134

 

 

Republic First Bancorp, Inc.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(in thousands, except per share amounts)

2015

2015

2014

2015

2014

INTEREST INCOME

Interest and fees on loans

$ 9,270

$   9,077

$ 8,310

$18,347

$16,633

Interest and dividends on investment securities

1,543

1,607

1,271

3,150

2,591

Interest on other interest earning assets

86

77

50

163

62

Total interest income

10,899

10,761

9,631

21,660

19,286

INTEREST EXPENSE

Interest on deposits

1,012

1,018

870

2,030

1,650

Interest on borrowed funds

278

276

277

554

553

Total interest expense

1,290

1,294

1,147

2,584

2,203

Net interest income

9,609

9,467

8,484

19,076

17,083

Provision for loan losses

-

-

300

-

300

Net interest income after provision for loan losses

9,609

9,467

8,184

19,076

16,783

NON-INTEREST INCOME

Service fees on deposit accounts

398

363

287

761

580

Gain on sale of SBA loans

1,222

578

1,046

1,800

2,200

Gain on sale of investment securities

9

-

458

9

458

Other non-interest income

393

636

498

1,029

981

Total non-interest income

2,022

1,577

2,289

3,599

4,219

NON-INTEREST EXPENSE

Salaries and employee benefits

5,715

5,222

4,828

10,937

9,868

Occupancy and equipment

1,951

1,888

1,598

3,839

3,134

Legal and professional fees

690

564

872

1,254

1,529

Foreclosed real estate

371

377

340

748

686

Regulatory assessments and related fees

301

292

196

593

533

Other operating expenses

2,075

2,175

2,123

4,250

4,022

Total non-interest expense

11,103

10,518

9,957

21,621

19,772

Income before benefit for income taxes

528

526

516

1,054

1,230

Benefit for income taxes

(5)

(2)

(21)

(7)

(62)

Net income

$   533

$      528

$   537

$  1,061

$  1,292

Net Income per Common Share

Basic

$  0.01

$     0.01

$  0.02

$    0.03

$    0.04

Diluted

$  0.01

$     0.01

$  0.02

$    0.03

$    0.04

Average Common Shares Outstanding

Basic

37,816

37,816

35,157

37,816

30,590

Diluted

38,049

38,047

35,609

38,048

30,932

 

 

Republic First Bancorp, Inc.

Average Balances and Net Interest Income

(unaudited)

For the three months ended

For the three months ended

For the three months ended

(dollars in thousands)

June 30, 2015

March 31, 2015

June 30, 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

$   125,839

$      86

0.27%

$   130,418

$      77

0.24%

$     82,915

$      50

0.24%

Securities

265,268

1,617

2.44%

254,741

1,674

2.63%

207,545

1,315

2.53%

Loans receivable

812,155

9,339

4.61%

783,379

9,145

4.73%

706,632

8,356

4.74%

Total interest-earning assets

1,203,262

11,042

3.68%

1,168,538

10,896

3.78%

997,092

9,721

3.91%

Other assets

67,724

61,974

48,652

Total assets

$1,270,986

$1,230,512

$1,045,744

Interest-bearing liabilities:

Demand non interest-bearing

$   229,468

$   226,708

$   177,363

Demand interest-bearing

333,075

341

0.41%

295,630

290

0.40%

232,682

225

0.39%

Money market & savings

491,644

501

0.41%

489,779

553

0.46%

427,589

467

0.44%

Time deposits

73,497

170

0.93%

75,485

175

0.94%

78,259

178

0.91%

Total deposits

1,127,684

1,012

0.36%

1,087,602

1,018

0.38%

915,893

870

0.38%

Total interest-bearing deposits

898,216

1,012

0.45%

860,894

1,018

0.48%

738,530

870

0.47%

Other borrowings

22,476

278

4.96%

22,516

276

4.97%

22,476

277

4.94%

Total interest-bearing liabilities

920,692

1,290

0.56%

883,410

1,294

0.59%

761,006

1,147

0.60%

Total deposits and 

  other borrowings

1,150,160

1,290

0.45%

1,110,118

1,294

0.47%

938,369

1,147

0.49%

Non interest-bearing liabilities

7,123

7,094

6,741

Shareholders' equity

113,703

113,300

100,634

Total liabilities and

shareholders' equity

$1,270,986

$1,230,512

$1,045,744

Net interest income

$ 9,752

$ 9,602

$ 8,574

Net interest spread

3.12%

3.19%

3.31%

Net interest margin

3.25%

3.33%

3.45%

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

 

 

Republic First Bancorp, Inc.

Average Balances and Net Interest Income

(unaudited)

For the six months ended

For the six months ended

(dollars in thousands)

June 30, 2015

June 30, 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

$   128,116

$     163

0.26%

$     50,552

$      62

0.25%

Securities

260,034

3,291

2.53%

207,793

2,678

2.58%

Loans receivable

797,846

18,484

4.67%

696,805

16,723

4.84%

Total interest-earning assets

1,185,996

21,938

3.73%

955,150

19,463

4.11%

Other assets

64,865

45,818

Total assets

$1,250,861

$1,000,968

Interest-bearing liabilities:

Demand non interest-bearing

$   228,096

$   173,552

Demand interest-bearing

314,455

631

0.40%

223,383

416

0.38%

Money market & savings

490,717

1,054

0.43%

414,308

883

0.43%

Time deposits

74,486

345

0.93%

77,865

351

0.91%

Total deposits

1,107,754

2,030

0.37%

889,108

1,650

0.37%

Total interest-bearing deposits

879,658

2,030

0.47%

715,556

1,650

0.47%

Other borrowings

22,496

554

4.97%

22,476

553

4.96%

Total interest-bearing liabilities

902,154

2,584

0.58%

738,032

2,203

0.60%

Total deposits and 

  other borrowings

1,130,250

2,584

0.46%

911,584

2,203

0.49%

Non interest-bearing liabilities

7,184

6,838

Shareholders' equity

113,427

82,546

Total liabilities and

shareholders' equity

$1,250,861

$1,000,968

Net interest income

$19,354

$17,260

Net interest spread

3.15%

3.51%

Net interest margin

3.29%

3.64%

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

 

 

Republic First Bancorp, Inc.

Summary of Allowance for Loan Losses and Other Related Data

(unaudited)

Year

Three months ended

ended

Six months ended

June 30,

March 31,

June 30,

Dec 31

June 30,

June 30,

(dollars in thousands)

2015

2015

2014

2014

2015

2014

Balance at beginning of period

$       10,944

$       11,536

$       11,950

$  12,263

$       11,536

$       12,263

Provision charged to operating expense

-

-

300

900

-

300

10,944

11,536

12,250

13,163

11,536

12,563

Recoveries on loans charged-off:

  Commercial

1

54

-

385

55

-

  Consumer

1

31

1

-

32

1

Total recoveries

2

85

1

385

87

1

Loans charged-off:

  Commercial

(2,548)

(677)

(188)

(2,002)

(3,225)

(491)

  Consumer

-

-

-

(10)

-

(10)

Total charged-off

(2,548)

(677)

(188)

(2,012)

(3,225)

(501)

Net charge-offs

(2,546)

(592)

(187)

(1,627)

(3,138)

(500)

Balance at end of period

$         8,398

$       10,944

$       12,063

$  11,536

$         8,398

$       12,063

Net charge-offs as a percentage of average loans outstanding

1.26%

0.31%

0.11%

0.22%

0.79%

0.14%

Allowance for loan losses as a percentage of period-end loans

1.02%

1.39%

1.68%

1.48%

1.02%

1.68%

 

 

Republic First Bancorp, Inc. 

Summary of Non-Performing Loans and Assets

(unaudited)

June 30,

March 31,

December 31,

September 30,

June 30,

(dollars in thousands)

2015

2015

2014

2014

2014

Non-accrual loans:

  Commercial real estate

$15,559

$ 19,530

$       21,011

$        22,607

$23,750

  Consumer and other

418

426

429

437

446

Total non-accrual loans

15,977

19,956

21,440

23,044

24,196

Loans past due 90 days or more

  and still accruing

256

5,013

-

131

2,722

Total non-performing loans

16,233

24,969

21,440

23,175

26,918

Other real estate owned

13,162

3,827

3,715

3,775

3,637

Total non-performing assets

$29,395

$ 28,796

$       25,155

$        26,950

$30,555

Non-performing loans to total loans

1.97%

3.17%

2.74%

3.08%

3.74%

Non-performing assets to total assets

2.31%

2.28%

2.07%

2.38%

2.87%

Non-performing loan coverage

51.73%

43.83%

53.81%

52.71%

44.81%

Allowance for loan losses as a percentage of total period-end loans

1.02%

1.39%

1.48%

1.62%

1.68%

Non-performing assets / capital plus allowance for loan losses

24.13%

23.07%

20.23%

21.77%

24.74%

 

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SOURCE Republic First Bancorp, Inc.