Republic First Bancorp, Inc. Reports Second Quarter Financial Results

Friday, 23. July 2021 14:30

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 by 11% compared to the first six months of 2020.

  • Total deposits increased by $916 million, or 25%, 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, or 13%, 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 than 0.1% 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  21%
Assets (excluding PPP)* 4,997  4,763  3,781  1,216  32%
Loans 2,521  2,706  2,542  (21) (1%)
Loans (excluding PPP)* 2,141  2,073  1,889  252  13%
Deposits 4,560  4,363  3,644  916  25%
PPPLF Borrowings 388  611  438  (50) (11%)

*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, or 21%, 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, or 32%, year over year.

  • The net interest margin increased by 16 basis points to 2.80% for the six months ended June 30, 2021 compared to 2.64% 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 was 7.28% 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 $5.9 million, or $0.08 per share, for the three month period ended June 30, 2021, compared to net income of $2.5 million, or $0.04 per share, for the three month period ended June 30, 2020.

We continue to demonstrate progress with operating leverage which drives improved earnings. Total revenue increased by 24% while non-interest expense increased by 14%, during the second quarter of 2021 compared to the second quarter of 2020.

Net interest income increased to $30.6 million during the second quarter of 2021 compared to $22.4 million during the second quarter of 2020. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the “Power of Red is Back” expansion strategy. We also continue to amortize the fees associated with the origination of PPP loans which is reported as interest income and is recognized over the life of the loans. Approximately $13 million in origination fees related to the PPP loan program have been deferred as of June 30, 2021 and will be recognized over the life of the loans in future periods.

The net interest margin for the three month period ended June 30, 2021 increased by 9 basis points to 2.64% compared to 2.55% for the three month period ended June 30, 2020. The net interest margin declined by 33 basis points on a linked quarter basis as a result of a decrease in the recognition of PPP origination fees compared to the first quarter of 2021.

Non-interest income declined to $7.7 million during the quarter ended June 30, 2021, compared to $8.4 million during the quarter ended June 30, 2020. The decrease is primarily attributable to the gain on the sale of investment securities recognized during the second quarter of 2020 which did not recur in the second quarter of 2021.

Non-interest expense increased by 14%, to $30.5 million during the quarter ended June 30, 2021, compared to $26.7 million during the quarter ended June 30, 2020. The growth in expenses year over year was mainly driven by an increase in salaries and benefit costs. Salary expense increased primarily as a result of merit increases and the cost for medical and dental benefits have returned to normal levels after a significant decline during the early stages of the pandemic in 2020. Other operating expenses have grown as a result of our growth strategy.

A dividend on the outstanding shares of preferred stock in the amount of $0.9 million was declared and paid during the second quarter of 2021. The preferred stock was initially issued in August 2020 and pays a dividend at an annual rate of 7.00%.

 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 $13.0 million, or $0.17 per share, for the six month period ended June 30, 2021, compared to net income of $1.9 million, or $0.03 per share, for the six month period ended June 30, 2020. Similar to the results for the three month period ended June 30, 2021, improved operating leverage also drove better earnings during the six month period ended June 30, 2021. Total revenue increased by 38% while non-interest expense increased by 11%, during the first six months of 2021 compared to the first six months of 2020.

Net interest income increased to $62.1 million during the six month period ended June 30, 2021 compared to $43.2 million during the six month period ended June 30, 2020. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the “Power of Red is Back” expansion strategy. We also continue to amortize the fees associated with the origination of PPP loans which is reported as interest income and is recognized over the life of the loans. The net interest margin for the six month period ended June 30, 2021 increased by 16 basis points to 2.80% compared to 2.64% for the six month period ended June 30, 2020.

Non-interest income increased by $3.0 million, or 20%, to $18.0 million for the six month period ended June 30, 2021, compared to $15.0 million for the six month period ended June 30, 2020. The increase is attributable to higher mortgage banking income driven by residential mortgage loan originations. The increase was also a result of higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts in addition to the impact of the new branding and processing agreements with VISA.

Non-interest expense increased by 11%, to $59.9 million during the six months ended June 30, 2021, compared to $53.9 million during the six months ended June 30, 2020. The growth in expenses year over year was mainly caused by an increase in salaries and benefit costs. Occupancy and equipment expenses have also grown as a result of our growth strategy.

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 $916 million, or 25%, to $4.6 billion at June 30, 2021 compared to $3.6 billion at June 30, 2020. This increase can be attributed to our strategy to expand the reach of our banking model which focuses on enhancing the total customer experience including in-store, on-line and mobile banking options. High levels of customer service and convenience across all delivery channels drives the gathering of low-cost, core deposits. We recognized strong growth in demand deposit balances, including an increase in non-interest bearing demand deposits of 15%, year over year as a result of the successful execution of our strategy. The increase in demand deposits over the last twelve months is also a result of our participation in the PPP loan program. Many of the PPP loans originated were for small businesses that were previously not customers of Republic Bank. Many of these small businesses have chosen to move their primary banking relationship to Republic as a result of the outstanding level of service and cooperation they experienced during the PPP loan process. Commercial deposits were 45% of total deposits as of June 30, 2021.

Lending

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

Description06/30/21 06/30/20% Growth 03/31/21% Growth
        
Commercial and industrial$212,003 $224,504(6%) $211,192-%
Owner occupied real estate 478,547  434,42210%  477,316-%
Commercial real estate 736,293  664,60511%  708,5464%
Construction and land development 160,945  150,1577%  153,0625%
Residential mortgage 459,712  313,28747%  425,1068%
Consumer and other 93,125  101,680(8%)  97,317(4%)
Sub-total (excl PPP Loans) 2,140,625  1,888,65513%  2,072,5393%
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 $21 million, or 1%, at June 30, 2021 compared to June 30, 2020. Loans originated through the PPP loan program continue to be repaid or forgiven by the SBA which offsets the growth experienced in other categories in the portfolio. Excluding the impact of the PPP loans, gross loans increased by $252 million, or 13%, to $2.1 billion at June 30, 2021 compared to $1.9 billion at June 30, 2020. We continue to see results from the continued success with our relationship banking model which has driven a steady flow in quality loan demand. We experienced strongest growth in the owner-occupied real estate, commercial real estate and residential mortgage categories over the last twelve months.

Asset Quality

The Company’s asset quality ratios are highlighted below:

  Three Months Ended
 06/30/2103/31/2106/30/20
    
Non-performing assets / capital and reserves4%4%5%
Non-performing assets / total assets0.26%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 loans134%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 0.26% at June 30, 2021, compared to 0.31% at June 30, 2020. The allowance for loan losses as a percentage of total loans excluding PPP loans increased to 0.75% as of June 30, 2021 compared to 0.58% as of June 30, 2020. The allowance for loan losses as a percentage of non-performing loans increased to 134% at June 30, 2021 compared to 87% at June 30, 2020 as a result of the increase the allowance for loan losses over the last 12 months.

Capital

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

 Actual
06/30/21
Bancorp
Actual
06/30/21
Bank
Regulatory
Guidelines

“Well Capitalized”
    
Leverage Ratio     7.28%     6.96%5.00%
Common Equity Ratio10.40%   12.15%6.50%
Tier 1 Risk Based Capital12.69%   12.15%8.00%
Total Risk Based Capital   13.31%   12.77%10.00%
Tangible Common Equity     5.06%     5.89%n/a

Total shareholders’ equity increased to $320 million at June 30, 2021 compared to $255 million at June 30, 2020. The increase was primarily driven by a capital raise completed during the third quarter of 2020. The Company issued $50 million of noncumulative perpetual preferred stock in August 2020. The preferred stock has an annual dividend of 7.00% payable on a quarterly basis and is convertible into shares of common stock at a price of $3.00 per share. Book value per common share increased to $4.62 at June 30, 2021 compared to $4.34 per share at June 30, 2020.

Non-GAAP Financial Measures

In addition to evaluating the Company’s financial results of operations in accordance with accounting principles generally accepted in the U.S. (“GAAP”), management periodically supplements its evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial conditions, and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.

The Company believes that disclosing non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to better understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently.

Analyst and Investor Call

An analyst and investor call will be held on the following date and time:

  
Date: 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%


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