Republic First Bancorp, Inc. Reports Second Quarter Financial Results
Deposits Grow
PHILADELPHIA, July 23, 2021 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2021.
Q2-2021 Financial Highlights
- Net income for the six month period ended June 30, 2021 increased by
578% to$13.0 million , or$0.17 per diluted share, compared to net income of$1.9 million , or$0.03 per diluted share, for the six month period ended June 30, 2020. - Net income for the quarter ended June 30, 2021 increased by
136% to$5.9 million , or$0.08 per diluted share, compared to net income of$2.5 million , or$0.04 per diluted share, for the quarter ended June 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. During the first six months of 2021 total revenue increased
38% and non-interest expense increased by11% compared to the first six months of 2020. - Total deposits increased by
$916 million , or25% , to$4.6 billion as of June 30, 2021 compared to$3.6 billion as of June 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$34 million per year, while the average deposit growth for all stores over the last twelve months was approximately$29 million per store. - Excluding the impact of PPP loans, total loans grew
$252 million , or13% , to$2.1 billion as of June 30, 2021 compared to$1.9 billion at June 30, 2020. - Asset quality remains strong as the ratio of non-performing assets to total assets declined to
0.26% as of June 30, 2021. Only one loan customer was still deferring loan payments at the end of the second quarter. This deferral relates to approximately$2.1 million of outstanding loan balances which is less than0.1% of total loans.
Vernon W. Hill, II, Chairman of Republic First Bancorp said:
“I am extremely pleased to report our financial results for the second quarter of 2021. Earnings have dramatically improved year over year as we continue to maintain our focus on cost control initiatives while increasing revenue. In addition, we continue to produce exceptional results from a balance sheet perspective. The Power of Red is Back expansion strategy has again resulted in strong organic growth in assets, loans and deposits far above industry standards during the second quarter of 2021.”
“It is our goal to deliver best in class service across all delivery channels…..in-store, by phone, online and mobile options....as we strive to create new FANS each and every day. In today’s world we clearly recognize the need to meet customer expectations through any delivery method that they prefer. To complement our in-store experience we are continuously investing in our technology platforms to provide our FANS with a total banking experience unmatched by any of our competitors.”
Financial Summary for the Period Ended June 30, 2021
The changes in the balance sheet as of June 30, 2021 were impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, and outside borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit applications for forgiveness to the SBA. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended June 30, 2021 can be found in the following table:
| ($ in millions) | Actual | Actual | Actual | YOY Growth | |||||||||||
| 06/30/21 | 03/31/21 | 06/30/20 | ($) | (%) | |||||||||||
| Assets | $ | 5,377 | $ | 5,396 | $ | 4,434 | $ | 943 | |||||||
| Assets (excluding PPP)* | 4,997 | 4,763 | 3,781 | 1,216 | |||||||||||
| Loans | 2,521 | 2,706 | 2,542 | (21 | ) | ( | |||||||||
| Loans (excluding PPP)* | 2,141 | 2,073 | 1,889 | 252 | |||||||||||
| Deposits | 4,560 | 4,363 | 3,644 | 916 | |||||||||||
| PPPLF Borrowings | 388 | 611 | 438 | (50 | ) | ( | |||||||||
*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 June 30, 2021 can be found in the following table:
| ($ in millions, except | Three Months Ended | Six Months Ended | ||||||||||||||||
| per share data) | 06/30/21 | 06/30/20 | Change | 06/30/21 | 06/30/20 | Change | ||||||||||||
| Total Revenue | $ | 38.3 | $ | 30.9 | 24 | % | $ | 80.0 | $ | 58.1 | 38 | % | ||||||
| Non-Interest Expense | 30.5 | 26.7 | 14 | % | 59.9 | 53.9 | 11 | % | ||||||||||
| Income Before Tax | 7.8 | 3.2 | 144 | % | 17.2 | 2.3 | 658 | % | ||||||||||
| Net Income | 5.9 | 2.5 | 136 | % | 13.0 | 1.9 | 578 | % | ||||||||||
| Earnings per share (diluted) | $ | 0.08 | $ | 0.04 | 100 | % | $ | 0.17 | $ | 0.03 | 467 | % | ||||||
PPP Loan Program
The Paycheck Protection Program (“PPP”) included in the CARES Act approved during the first quarter of 2020 authorized financial institutions to make loans to companies that were impacted by the devastating economic effects of the COVID-19 pandemic. We responded by quickly developing a process to accept applications for the program not only from our valued small business customers, but from non-customers throughout our community as well. The Economic Aid Act approved by Congress during the fourth quarter of 2020 provided additional funding for a second round of PPP loans.
- We originated approximately
$1 billion in PPP loans making us one of the top PPP lenders in the country when comparing PPP loans to total loans outstanding. - We are now assisting borrowers that obtained PPP loans with applications to the SBA to forgive the balances that were used toward expenditures authorized under the program. As of the date of this release approximately
$600 million in PPP loans that we originated have been forgiven by the SBA. - Origination fees paid by the SBA to Republic are being recognized as income over the life of the loans or until the balances have been repaid or forgiven. Approximately
$13 million in fees have been deferred and will recognized in future periods. - More than
50% of the applications received during the first round of PPP were from businesses that were not existing customers of Republic Bank, many of which have switched their primary banking relationship to Republic.
Additional Financial Highlights
- Total assets increased by
$943 million , or21% , to$5.4 billion as of June 30, 2021 compared to$4.4 billion as of June 30, 2020. Excluding the short-term impact of the PPP loan program total assets increased by$1.2 billion , or32% , year over year. - The net interest margin increased by 16 basis points to
2.80% for the six months ended June 30, 2021 compared to2.64% for the six months ended June 30, 2020. This increase was primarily driven by a decline in the cost of funds during the first half of 2021. - We have thirty-two convenient store locations open today. During the second quarter we opened our newest store in Deptford, NJ and we have broken ground on a future store location in Ocean City, NJ which we also expect to open during 2021.
- Our residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Loan production remains strong despite the impact of the COVID-19 pandemic. The Oak Mortgage team originated more than
$800 million in mortgage loans over the last twelve months which is a record high for the Oak Mortgage Team. - Total Risk-Based Capital ratio was
13.31% and Tier I Leverage Ratio was7.28% at June 30, 2021. - Book value per common share increased to
$4.62 as of June 30, 2021 compared to$4.34 as of June 30, 2020.
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
| Three Months Ended | ||||||||||||||
| 06/30/21 | 03/31/21 | % Change | 06/30/20 | % Change | ||||||||||
| Net Interest Income | $ | 30,639 | $ | 31,432 | (3 | %) | $ | 22,427 | 37 | % | ||||
| Non-interest Income | 7,680 | 10,275 | (25 | %) | 8,424 | (9 | %) | |||||||
| Total Revenue | 38,319 | 41,707 | (8 | %) | 30,851 | 24 | % | |||||||
| Provision for Loan Losses | - | 3,000 | (100 | %) | 1,000 | (100 | %) | |||||||
| Non-interest Expense | 30,518 | 29,347 | 4 | % | 26,664 | 14 | % | |||||||
| Income Before Taxes | 7,801 | 9,360 | (17 | %) | 3,187 | 145 | % | |||||||
| Provision for Taxes | 1,867 | 2,292 | (19 | %) | 675 | 177 | % | |||||||
| Net Income | 5,934 | 7,068 | (16 | %) | 2,512 | 136 | % | |||||||
| Preferred Stock Dividend | 875 | 875 | 0 | % | 100 | % | ||||||||
| Net Income Attributable to Common Shareholders | 5,059 | 6,193 | (18 | %) | 2,512 | 101 | % | |||||||
| Earnings per share | $ | 0.08 | $ | 0.09 | (11 | %) | $ | 0.04 | 100 | % | ||||
Net income increased to
We continue to demonstrate progress with operating leverage which drives improved earnings. Total revenue increased by
Net interest income increased to
The net interest margin for the three month period ended June 30, 2021 increased by 9 basis points to
Non-interest income declined to
Non-interest expense increased by
A dividend on the outstanding shares of preferred stock in the amount of
| Six Months Ended | ||||||||
| 06/30/21 | 06/30/20 | % Change | ||||||
| Net Interest Income | $ | 62,071 | $ | 43,181 | 44 | % | ||
| Non-interest Income | 17,955 | 14,969 | 20 | % | ||||
| Total Revenue | 80,026 | 58,150 | 38 | % | ||||
| Provision for Loan Losses | 3,000 | 1,950 | 54 | % | ||||
| Non-interest Expense | 59,865 | 53,936 | 11 | % | ||||
| Income Before Taxes | 17,161 | 2,264 | 658 | % | ||||
| Provision for Taxes | 4,159 | 345 | 1106 | % | ||||
| Net Income | 13,002 | 1,919 | 578 | % | ||||
| Preferred Stock Dividend | 1,750 | - | 100 | % | ||||
| Net Income Attributable to Common Shareholders | 11,252 | 1,919 | 486 | % | ||||
| Earnings per share | $ | 0.17 | $ | 0.03 | 467 | % | ||
Net income increased to
Net interest income increased to
Non-interest income increased by
Non-interest expense increased by
Deposits
Deposits by type of account are as follows (dollars in thousands):
Description | 06/30/21 | 06/30/20 | % Change | 03/31/21 | % Change | |||||||
| Demand noninterest-bearing | $ | 1,258,162 | $ | 1,095,782 | 15 | % | $ | 1,244,437 | 1 | % | ||
| Demand interest-bearing | 1,945,833 | 1,435,198 | 36 | % | 1,874,286 | 4 | % | |||||
| Money market and savings | 1,168,516 | 902,528 | 29 | % | 1,058,485 | 10 | % | |||||
| Certificates of deposit | 187,357 | 210,446 | (11 | %) | 185,891 | 1 | % | |||||
| Total deposits | $ | 4,559,868 | $ | 3,643,954 | 25 | % | $ | 4,363,099 | 5 | % | ||
Deposits increased by
Lending
Loans by type are as follows (dollars in thousands):
| Description | 06/30/21 | 06/30/20 | % Growth | 03/31/21 | % Growth | |||||||
| Commercial and industrial | $ | 212,003 | $ | 224,504 | (6 | %) | $ | 211,192 | - | % | ||
| Owner occupied real estate | 478,547 | 434,422 | 10 | % | 477,316 | - | % | |||||
| Commercial real estate | 736,293 | 664,605 | 11 | % | 708,546 | 4 | % | |||||
| Construction and land development | 160,945 | 150,157 | 7 | % | 153,062 | 5 | % | |||||
| Residential mortgage | 459,712 | 313,287 | 47 | % | 425,106 | 8 | % | |||||
| Consumer and other | 93,125 | 101,680 | (8 | %) | 97,317 | (4 | %) | |||||
| Sub-total (excl PPP Loans) | 2,140,625 | 1,888,655 | 13 | % | 2,072,539 | 3 | % | |||||
| Paycheck protection program | 380,798 | 653,593 | (42 | %) | 633,280 | (40 | %) | |||||
| Gross Loans | $ | 2,521,423 | $ | 2,542,248 | (1 | %) | $ | 2,705,819 | (7 | %) | ||
Gross loans decreased by
Asset Quality
The Company’s asset quality ratios are highlighted below:
| Three Months Ended | ||||||
| 06/30/21 | 03/31/21 | 06/30/20 | ||||
| Non-performing assets / capital and reserves | 4 | % | 4 | % | 5 | % |
| Non-performing assets / total assets | 0.26 | % | 0.27 | % | 0.31 | % |
| Quarterly net loan charge-offs / average loans* | 0.00 | % | (0.02 | %) | 0.03 | % |
| Allowance for loan losses / gross loans* | 0.75 | % | 0.78 | % | 0.58 | % |
| Allowance for loan losses / non-performing loans | 134 | % | 122 | % | 87 | % |
*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
Capital
The Company’s capital ratios at June 30, 2021 were as follows:
| Actual 06/30/21 Bancorp | Actual 06/30/21 Bank | Regulatory Guidelines “Well Capitalized” | |
| Leverage Ratio | | | |
| Common Equity Ratio | | ||
| Tier 1 Risk Based Capital | | ||
| Total Risk Based Capital | | | |
| Tangible Common Equity | | | n/a |
Total shareholders’ equity increased to
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: | July 23, 2021 |
| Time: | 11:00am (EDT) |
| From the U.S. dial: | (888) 517-2513 [US Toll Free] or |
| (847) 619-6533 [US Toll] | |
| Participant Pin: | 7439 995# |
| 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) | |||||||||||||
| June 30, | March 31, | June 30, | |||||||||||
| (dollars in thousands, except per share amounts) | 2021 | 2021 | 2020 | ||||||||||
| ASSETS | |||||||||||||
| Cash and due from banks | $ | 16,371 | $ | 45,481 | $ | 36,786 | |||||||
| Interest-bearing deposits and federal funds sold | 750,328 | 783,417 | 654,458 | ||||||||||
| Total cash and cash equivalents | 766,699 | 828,898 | 691,244 | ||||||||||
| Securities - Available for sale | 773,977 | 635,646 | 382,221 | ||||||||||
| Securities - Held to maturity | 1,057,842 | 948,419 | 556,159 | ||||||||||
| Restricted stock | 3,510 | 3,039 | 3,789 | ||||||||||
| Total investment securities | 1,835,329 | 1,587,104 | 942,169 | ||||||||||
| Loans held for sale | 14,408 | 28,621 | 26,126 | ||||||||||
| Loans receivable | 2,521,423 | 2,705,819 | 2,542,248 | ||||||||||
| Allowance for loan losses | (16,110 | ) | (16,091 | ) | (11,040 | ) | |||||||
| Net loans | 2,505,313 | 2,689,728 | 2,531,208 | ||||||||||
| Premises and equipment | 123,675 | 122,867 | 121,149 | ||||||||||
| Other real estate owned | 852 | 1,188 | 1,144 | ||||||||||
| Other assets | 131,162 | 137,552 | 121,603 | ||||||||||
| Total Assets | $ | 5,377,438 | $ | 5,395,958 | $ | 4,434,643 | |||||||
| LIABILITIES | |||||||||||||
| Non-interest bearing deposits | $ | 1,258,162 | $ | 1,244,437 | $ | 1,095,782 | |||||||
| Interest bearing deposits | 3,301,706 | 3,118,661 | 2,548,172 | ||||||||||
| Total deposits | 4,559,868 | 4,363,099 | 3,643,954 | ||||||||||
| Short-term borrowings | 387,509 | 611,114 | 438,478 | ||||||||||
| Subordinated debt | 11,274 | 11,273 | 11,268 | ||||||||||
| Other liabilities | 98,346 | 102,096 | 85,765 | ||||||||||
| Total Liabilities | 5,056,997 | 5,087,582 | 4,179,465 | ||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||
| Preferred stock | 20 | 20 | - | ||||||||||
| Common stock | 594 | 594 | 594 | ||||||||||
| Additional paid-in capital | 323,442 | 322,861 | 273,118 | ||||||||||
| Accumulated deficit | 3,167 | (1,892 | ) | (10,297 | ) | ||||||||
| Treasury stock at cost | (3,725 | ) | (3,725 | ) | (3,725 | ) | |||||||
| Stock held by deferred compensation plan | (183 | ) | (183 | ) | (183 | ) | |||||||
| Accumulated other comprehensive loss | (2,874 | ) | (9,299 | ) | (4,329 | ) | |||||||
| Total Shareholders' Equity | 320,441 | 308,376 | 255,178 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 5,377,438 | $ | 5,395,958 | $ | 4,434,643 | |||||||
| Republic First Bancorp, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| (in thousands, except per share amounts) | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| INTEREST INCOME | ||||||||||||||||
| Interest and fees on loans | $ | 28,460 | $ | 29,903 | $ | 22,737 | $ | 58,363 | $ | 42,910 | ||||||
| Interest and dividends on investment securities | 6,830 | 6,468 | 5,072 | 13,298 | 11,893 | |||||||||||
| Interest on other interest earning assets | 64 | 49 | 50 | 113 | 339 | |||||||||||
| Total interest income | 35,354 | 36,420 | 27,859 | 71,774 | 55,142 | |||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Interest on deposits | 4,641 | 4,915 | 5,320 | 9,556 | 11,745 | |||||||||||
| Interest on borrowed funds | 74 | 73 | 112 | 147 | 216 | |||||||||||
| Total interest expense | 4,715 | 4,988 | 5,432 | 9,703 | 11,961 | |||||||||||
| Net interest income | 30,639 | 31,432 | 22,427 | 62,071 | 43,181 | |||||||||||
| Provision for loan losses | - | 3,000 | 1,000 | 3,000 | 1,950 | |||||||||||
| Net interest income after provision for loan losses | 30,639 | 28,432 | 21,427 | 59,071 | 41,231 | |||||||||||
| NON-INTEREST INCOME | ||||||||||||||||
| Service fees on deposit accounts | 3,260 | 3,960 | 2,328 | 7,220 | 4,392 | |||||||||||
| Mortgage banking income | 2,908 | 4,564 | 3,389 | 7,472 | 5,847 | |||||||||||
| Gain on sale of SBA loans | 633 | 761 | 269 | 1,394 | 918 | |||||||||||
| Gain on sale of investment securities | 2 | - | 1,640 | 2 | 2,481 | |||||||||||
| Other non-interest income | 877 | 990 | 798 | 1,867 | 1,331 | |||||||||||
| Total non-interest income | 7,680 | 10,275 | 8,424 | 17,955 | 14,969 | |||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||
| Salaries and employee benefits | 14,855 | 14,722 | 13,177 | 29,577 | 26,558 | |||||||||||
| Occupancy and equipment | 5,846 | 6,071 | 5,554 | 11,917 | 10,851 | |||||||||||
| Legal and professional fees | 1,048 | 1,025 | 1,009 | 2,073 | 1,939 | |||||||||||
| Foreclosed real estate | 492 | 98 | 75 | 590 | 357 | |||||||||||
| Regulatory assessments and related fees | 881 | 726 | 675 | 1,607 | 1,305 | |||||||||||
| Other operating expenses | 7,396 | 6,705 | 6,174 | 14,101 | 12,926 | |||||||||||
| Total non-interest expense | 30,518 | 29,347 | 26,664 | 59,865 | 53,936 | |||||||||||
| Income before provision for income taxes | 7,801 | 9,360 | 3,187 | 17,161 | 2,264 | |||||||||||
| Provision for income taxes | 1,867 | 2,292 | 675 | 4,159 | 345 | |||||||||||
| Net income | 5,934 | 7,068 | 2,512 | 13,002 | 1,919 | |||||||||||
| Preferred stock dividends | 875 | 875 | - | 1,750 | - | |||||||||||
| Net income attributable to common shareholders | $ | 5,059 | $ | 6,193 | $ | 2,512 | $ | 11,252 | $ | 1,919 | ||||||
| Net Income per Common Share | ||||||||||||||||
| Basic | $ | 0.09 | $ | 0.11 | $ | 0.04 | $ | 0.19 | $ | 0.03 | ||||||
| Diluted | $ | 0.08 | $ | 0.09 | $ | 0.04 | $ | 0.17 | $ | 0.03 | ||||||
| Average Common Shares Outstanding | ||||||||||||||||
| Basic | 58,875 | 58,860 | 58,851 | 58,868 | 58,849 | |||||||||||
| Diluted | 76,164 | 75,817 | 58,883 | 75,982 | 58,911 | |||||||||||
| 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, 2021 | March 31, 2021 | June 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 | $ | 306,222 | $ | 64 | 0.08 | % | $ | 208,397 | $ | 49 | 0.09 | % | $ | 198,345 | $ | 50 | 0.10 | % | |||||||||
| interest-earning assets | |||||||||||||||||||||||||||
| Investment securities | 1,688,807 | 6,830 | 1.62 | % | 1,430,854 | 6,488 | 1.81 | % | 1,033,560 | 5,077 | 1.96 | % | |||||||||||||||
| Loans receivable | 2,658,540 | 28,460 | 4.29 | % | 2,676,705 | 30,019 | 4.45 | % | 2,335,500 | 22,884 | 3.94 | % | |||||||||||||||
| Total interest-earning assets | 4,653,569 | 35,354 | 3.05 | % | 4,315,956 | 36,556 | 3.44 | % | 3,567,405 | 28,011 | 3.16 | % | |||||||||||||||
| Other assets | 262,404 | 276,967 | 266,178 | ||||||||||||||||||||||||
| Total assets | $ | 4,915,973 | $ | 4,592,923 | $ | 3,833,583 | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand non interest-bearing | $ | 1,230,690 | $ | 1,087,052 | $ | 984,771 | |||||||||||||||||||||
| Demand interest-bearing | 1,963,848 | 3,283 | 0.67 | % | 1,846,968 | 3,258 | 0.72 | % | 1,397,790 | 2,856 | 0.82 | % | |||||||||||||||
| Money market & savings | 1,098,340 | 932 | 0.34 | % | 1,013,275 | 1,119 | 0.45 | % | 858,782 | 1,431 | 0.67 | % | |||||||||||||||
| Time deposits | 187,093 | 425 | 0.91 | % | 184,831 | 538 | 1.18 | % | 208,838 | 1,033 | 1.99 | % | |||||||||||||||
| Total deposits | 4,479,971 | 4,640 | 0.42 | % | 4,132,126 | 4,915 | 0.48 | % | 3,450,181 | 5,320 | 0.62 | % | |||||||||||||||
| Total interest-bearing deposits | 3,249,281 | 4,640 | 0.57 | % | 3,045,074 | 4,915 | 0.65 | % | 2,465,410 | 5,320 | 0.87 | % | |||||||||||||||
| Other borrowings | 21,104 | 75 | 1.43 | % | 46,059 | 73 | 0.64 | % | 45,474 | 112 | 0.99 | % | |||||||||||||||
| . | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 3,270,385 | 4,715 | 0.58 | % | 3,091,133 | 4,988 | 0.65 | % | 2,510,884 | 5,432 | 0.87 | % | |||||||||||||||
| Total deposits and | |||||||||||||||||||||||||||
| other borrowings | 4,501,075 | 4,715 | 0.42 | % | 4,178,185 | 4,988 | 0.48 | % | 3,495,655 | 5,432 | 0.62 | % | |||||||||||||||
| Non interest-bearing liabilities | 100,272 | 104,843 | 83,884 | ||||||||||||||||||||||||
| Shareholders' equity | 314,626 | 309,895 | 254,044 | ||||||||||||||||||||||||
| Total liabilities and | |||||||||||||||||||||||||||
| shareholders' equity | $ | 4,915,973 | $ | 4,592,923 | $ | 3,833,583 | |||||||||||||||||||||
| Net interest income | $ | 30,639 | $ | 31,568 | $ | 22,579 | |||||||||||||||||||||
| Net interest spread | 2.47 | % | 2.79 | % | 2.29 | % | |||||||||||||||||||||
| Net interest margin | 2.64 | % | 2.97 | % | 2.55 | % | |||||||||||||||||||||
| 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, 2021 | June 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 | $ | 257,580 | $ | 112 | 0.09 | % | $ | 139,842 | $ | 339 | 0.49 | % | ||||||
| Securities | 1,560,543 | 13,339 | 1.71 | % | 1,095,032 | 11,903 | 2.17 | % | ||||||||||
| Loans receivable | 2,667,572 | 58,593 | 4.43 | % | 2,071,941 | 43,203 | 4.19 | % | ||||||||||
| Total interest-earning assets | 4,485,695 | 72,044 | 3.24 | % | 3,306,815 | 55,445 | 3.37 | % | ||||||||||
| Other assets | 269,645 | 263,504 | ||||||||||||||||
| Total assets | $ | 4,755,340 | $ | 3,570,319 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Demand non interest-bearing | $ | 1,159,267 | $ | 814,686 | ||||||||||||||
| Demand interest-bearing | 1,905,731 | 6,541 | 0.69 | % | 1,367,718 | 6,277 | 0.92 | % | ||||||||||
| Money market & savings | 1,056,042 | 2,051 | 0.39 | % | 805,646 | 3,214 | 0.80 | % | ||||||||||
| Time deposits | 185,968 | 963 | 1.04 | % | 217,512 | 2,254 | 2.08 | % | ||||||||||
| Total deposits | 4,307,008 | 9,555 | 0.45 | % | 3,205,562 | 11,745 | 0.74 | % | ||||||||||
| Total interest-bearing deposits | 3,147,741 | 9,555 | 0.61 | % | 2,390,876 | 11,745 | 0.99 | % | ||||||||||
| Other borrowings | 33,513 | 148 | 0.89 | % | 28,713 | 216 | 1.51 | % | ||||||||||
| Total interest-bearing liabilities | 3,181,254 | 9,703 | 0.62 | % | 2,419,589 | 11,961 | 0.99 | % | ||||||||||
| Total deposits and | ||||||||||||||||||
| other borrowings | 4,340,521 | 9,703 | 0.45 | % | 3,234,275 | 11,961 | 0.74 | % | ||||||||||
| Non interest-bearing liabilities | 102,017 | 84,050 | ||||||||||||||||
| Shareholders' equity | 312,802 | 251,994 | ||||||||||||||||
| Total liabilities and | ||||||||||||||||||
| shareholders' equity | $ | 4,755,340 | $ | 3,570,319 | ||||||||||||||
| Net interest income | $ | 62,341 | $ | 43,484 | ||||||||||||||
| Net interest spread | 2.62 | % | 2.38 | % | ||||||||||||||
| Net interest margin | 2.80 | % | 2.64 | % | ||||||||||||||
| 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) | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||
| Balance at beginning of period | $ | 16,091 | $ | 12,975 | $ | 10,217 | $ | 9,266 | $ | 12,975 | $ | 9,266 | |||||||||||
| Provision charged to operating expense | - | 3,000 | 1,000 | 4,200 | 3,000 | 1,950 | |||||||||||||||||
| 16,091 | 15,975 | 11,217 | 13,466 | 15,975 | 11,216 | ||||||||||||||||||
| Recoveries on loans charged-off: | |||||||||||||||||||||||
| Commercial | 43 | 147 | 14 | 51 | 190 | 31 | |||||||||||||||||
| Consumer | 49 | 3 | 1 | 13 | 52 | 7 | |||||||||||||||||
| Total recoveries | 92 | 150 | 15 | 64 | 242 | 38 | |||||||||||||||||
| Loans charged-off: | |||||||||||||||||||||||
| Commercial | (61 | ) | - | (149 | ) | (448 | ) | (61 | ) | (149 | ) | ||||||||||||
| Consumer | (12 | ) | (34 | ) | (43 | ) | (107 | ) | (46 | ) | (65 | ) | |||||||||||
| Total charged-off | (73 | ) | (34 | ) | (192 | ) | (555 | ) | (107 | ) | (214 | ) | |||||||||||
| Net (charge-offs) recoveries | 19 | 116 | (177 | ) | (491 | ) | 135 | (176 | ) | ||||||||||||||
| Balance at end of period | $ | 16,110 | $ | 16,091 | $ | 11,040 | $ | 12,975 | $ | 16,110 | $ | 11,040 | |||||||||||
| Net (charge-offs) recoveries as a percentage of | |||||||||||||||||||||||
| average loans outstanding | (0.00 | %) | (0.02 | %) | 0.03 | % | 0.02 | % | (0.01 | %) | 0.02 | % | |||||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||||||
| of period-end loans | 0.64 | % | 0.59 | % | 0.43 | % | 0.49 | % | 0.64 | % | 0.43 | % | |||||||||||
| 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) | 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial real estate | $ | 10,069 | $ | 10,628 | $ | 10,232 | $ | 10,641 | $ | 10,747 | |||||||||
| Consumer and other | 1,982 | 2,562 | 2,014 | 1,808 | 1,970 | ||||||||||||||
| Total non-accrual loans | 12,051 | 13,190 | 12,246 | 12,449 | 12,717 | ||||||||||||||
| Loans past due 90 days or more | |||||||||||||||||||
| and still accruing | 996 | - | 612 | - | - | ||||||||||||||
| Total non-performing loans | 13,047 | 13,190 | 12,858 | 12,449 | 12,717 | ||||||||||||||
| Other real estate owned | 852 | 1,188 | 1,188 | 1,113 | 1,144 | ||||||||||||||
| Total non-performing assets | $ | 13,899 | $ | 14,378 | $ | 14,046 | $ | 13,562 | $ | 13,861 | |||||||||
| Non-performing loans to total loans | 0.52 | % | 0.49 | % | 0.49 | % | 0.47 | % | 0.50 | % | |||||||||
| Non-performing assets to total assets | 0.26 | % | 0.27 | % | 0.28 | % | 0.27 | % | 0.31 | % | |||||||||
| Non-performing loan coverage | 133.68 | % | 121.99 | % | 100.91 | % | 95.20 | % | 86.81 | % | |||||||||
| Allowance for loan losses as a percentage | |||||||||||||||||||
| of total period-end loans | 0.64 | % | 0.59 | % | 0.49 | % | 0.45 | % | 0.43 | % | |||||||||
| Non-performing assets / capital plus | |||||||||||||||||||
| allowance for loan losses | 4.13 | % | 4.44 | % | 4.37 | % | 4.31 | % | 5.21 | % | |||||||||
