PHILADELPHIA, Jan. 22, 2015 /PRNewswire/ -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended December 31, 2014.
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Financial Highlights -------------------- Three Months Ended Twelve Months Ended ------------------ ------------------- ($ in millions, except per share data) 12/31/14 12/31/13% 12/31/14 12/31/13% Change Change ------ ------ Assets $1,214.6 $961.7 26% Loans 781.9 679.3 15% Deposits 1,072.2 869.5 23% Total Revenue $12.0 $10.6 12% $43.8 $41.8 5% Net Income 0.9 (3.3) 126% 2.4 (3.5) 170% Net Income per Share $0.02 $(0.13) 115% $0.07 $(0.13) 154% -------------------- ----- ------ --- ----- ------ ---
"Our fourth quarter results bring to conclusion a very successful year for Republic Bank led by continued growth in our market with our new model," said Harry D. Madonna, Chairman and Chief Executive Officer of Republic Bank. "With total assets, deposits and loans growing by double-digit percentages in 2014, it is clear that our strategic plan is producing strong and tangible results."
"Our significant year-over-year growth reaffirms the commitment to our aggressive expansion plan," added Madonna. "With fifteen stores, including our newest store recently opened in Glassboro, Republic Bank enters 2015 with substantial momentum and a growing public awareness that we are redefining the Customer experience."
Highlights for the Period Ended December 31, 2014
-- Total assets increased by $253 million, or 26%, to $1.2 billion as of December 31, 2014 compared to $962 million as of December 31, 2013. -- Non-interest bearing demand deposits increased by 42% to $224 million as of December 31, 2014 compared to $158 million as of December 31, 2013. -- Total deposits increased by $203 million, or 23%, to $1.1 billion as of December 31, 2014 compared to $870 million as of December 31, 2013. The cost of funds on interest bearing deposits decreased to 0.47% for the year ended December 31, 2014 compared to 0.50% for the year ended December 31, 2013. -- Total loans grew $103 million, or 15%, to $782 million as of December 31, 2014 compared to $679 million at December 31, 2013. -- SBA lending continued to be a focal point of the Company's lending strategy. More than $56 million in new SBA loans were originated during the year ended December 31, 2014. 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 79% to $113 million as of December 31, 2014 compared to $63 million as of December 31, 2013 as a result of the $45 million common stock offering closed during the second quarter of 2014. -- The Company's Total Risk-Based Capital ratio was 15.10% and Tier I Leverage Ratio was 11.23% at December 31, 2014. -- Tangible book value per share was $2.98 as of December 31, 2014.
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
Three Months Ended Twelve Months Ended ------------------ ------------------- 12/31/14 12/31/13% 12/31/14 12/31/13% Change Change ------ ------ Total Revenue $11,967 $10,649 12% $43,846 $41,831 5% Provision for Loan Losses 300 3,760 (92%) 900 4,935 (82%) Non-interest Expenses 10,792 10,117 7% 40,550 40,411 0% Net Income 853 (3,261) 126% 2,442 (3,480) 170% Net Income per Share $0.02 $(0.13) 115% $0.07 $(0.13) 154% -------------------- ----- ------ --- ----- ------ ---
The Company reported net income of $2.4 million, or $0.07 per share, for the twelve month period ended December 31, 2014, compared to a net loss of $3.5 million, or $(0.13) per share, for the twelve month period ended December 31, 2013.
Prior year earnings were impacted by charges associated with loans and relationships that were established prior to 2008 under the old Republic Bank model including a loan loss provision in the amount of $3.6 million on one loan, a $2.1 million writedown on an OREO property, and a $1.9 million settlement on an outstanding legal matter. Earnings in 2014 were not materially affected by legacy issues that impacted the prior year.
Net interest income increased by $3.2 million, or 10%, to $35.8 million for the year ended December 31, 2014 compared to $32.6 million for the year ended December 31, 2013. This increase was driven by strong growth in interest-earning assets during the year.
The provision for loan losses decreased by $4.0 million, to $0.9 million for the twelve month period ended December 31, 2014 compared to $4.9 million in the prior year period mainly due to the aforementioned provision related to a single loan relationship recorded in the fourth quarter of 2013.
Non-interest expenses increased by a minimal amount during 2014 to $40.5 million during the twelve month period ended December 31, 2014 compared to $40.4 million during the twelve months ended December 31, 2013. Increases in salaries, employee benefits, occupancy and equipment expenses driven by the addition of new stores related to the Company's expansion strategy were offset by decreases in foreclosed real estate and other operating expenses as a result of significant charges in 2013 that did not recur in 2014 as discussed previously.
Balance Sheet
The major components of the balance sheet are as follows (dollars in thousands):
% % Change Change Description 12/31/14 12/31/13 09/30/14 ----------- -------- -------- -------- Total assets $1,214,598 $961,665 26% $1,130,716 7% Total loans (net) 770,404 667,048 15% 739,817 4% Total deposits 1,072,230 869,534 23% 990,075 8% Total core deposits 1,061,994 859,301 24% 979,840 8% ------------------- --------- ------- --- ------- ---
Total assets increased by $252.9 million, or 26%, as of December 31, 2014 when compared to December 31, 2013. Deposits grew by $202.7 million to $1.1 billion as of December 31, 2014 compared to $869.5 million as of December 31, 2013. The number of deposit accounts grew by 26% during the year ended December 31, 2014. The strong growth in assets, loans and deposits during 2014 was driven by the Company's successful execution of its growth strategy.
Core Deposits
Core deposits by type of account are as follows (dollars in thousands):
4th Qtr 2014 % % Cost of Change Change Funds Description 12/31/14 12/31/13 09/30/14 ----------- -------- -------- -------- Demand noninterest-bearing $224,245 $157,806 42% $216,642 4% 0.00% Demand interest-bearing 283,768 230,221 23% 224,102 27% 0.39% Money market and savings 488,848 402,671 21% 471,199 4% 0.45% Certificates of deposit 65,133 68,603 (5%) 67,897 (4%) 0.78% ------ ------ --- ------ --- ---- Total core deposits $1,061,994 $859,301 24% $979,840 8% 0.36% ========== ======== === ======== === ====
Core deposits increased to $1.1 billion at December 31, 2014 compared to $859.3 million at December 31, 2013 as the Company moves forward with its expansion strategy which focuses on 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, while at the same time decreasing the deposit cost of funds to 0.38% for the twelve month period ending December 31, 2014 compared to 0.41% for the twelve month period ending December 31, 2013.
Lending
Loans by type are as follows (dollars in thousands):
% of 12/31/13 % of % of Total Total Description 12/31/14 09/30/14 Total ----------- -------- -------- ----- Commercial real estate $379,259 48% $342,794 50% $366,611 49% Construction and land development 29,861 4% 23,977 4% 38,236 5% Commercial and industrial 145,113 19% 118,209 17% 134,340 18% Owner occupied real estate 188,025 24% 160,229 24% 172,642 23% Consumer and other 39,713 5% 31,981 5% 38,365 5% Residential mortgage 408 0% 2,359 0% 2,314 0% Deferred costs (fees) (439) (238) (475) ---- ---- ---- Gross loans $781,940 100% $679,311 100% $752,033 100% ======== === ======== === ======== ===
Gross loans increased by $102.6 million, or 15%, to $781.9 million at December 31, 2014 compared to $679.3 million at December 31, 2013 as a result of an increase in quality loan demand over the last twelve months and continued success with our relationship banking model.
Asset Quality
The Company's non-performing asset balances and asset quality ratios are highlighted below:
Three Months Ended ------------------ 12/31/14 09/30/14 12/31/13 -------- -------- -------- Non-performing assets / total assets 2.07% 2.38% 1.51% Quarterly net loan charge- offs /average loans 0.51% 0.08% 0.12% Allowance for loan losses / gross loans 1.48% 1.62% 1.81% Allowance for loan losses / non-performing loans 54% 53% 118% Non-performing assets / capital and reserves 20% 22% 19% ----------------------- --- --- ---
Non-performing assets increased by $10.7 million to $25.2 million, or 2.07% of total assets, at December 31, 2014, compared to $14.5 million, or 1.51% of total assets, as of December 31, 2013. This increase was primarily driven by one loan that was transferred to non-accrual status during the second quarter of 2014. A reserve for this loan was recorded during the fourth quarter of 2013 when it was initially downgraded to impaired status.
The allowance for loan losses as a percentage of non-performing loans decreased to 54% as of December 31, 2014, compared to 118% as of December 31, 2013. The ratio of non-performing assets to capital and reserves increased to 20% as of December 31, 2014, compared to 19% as of December 31, 2013.
Capital
The Company's capital ratios at December 31, 2014 were as follows:
Actual Regulatory Guidelines December 31, 2014 "Well Capitalized" ----------------- ------------------ Leverage Ratio 11.23% 5.00% Tier 1 Risk Based Capital 13.88% 6.00% Total Risk Based Capital 15.10% 10.00% Tangible Common Equity 9.29% n/a --------------- ---- ---
During the second quarter of 2014, the Company successfully completed a private placement offering of common stock in the amount of $45 million. 11.8 million shares were sold through the offering at a price of $3.80 per share. Total shareholders' equity increased to $112.8 million at December 31, 2014 compared to $62.9 million at December 31, 2013. Tangible book value per share increased to $2.98 at December 31, 2014 compared to $2.42 per share at December 31, 2013.
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 fifteen offices located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Haddonfield, Cherry Hill, Voorhees and Glassboro, New Jersey. For more information about Republic Bank, visit 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, 2013 and other documents the Company files from time to time with the Securities and Exchange Commission. The words "would be," "could be," "should be," "probability," "risk," "target," "objective," "may," "will," "estimate," "project," "believe," "intend," "anticipate," "plan," "seek," "expect" and similar expressions or variations on such expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as may be required by applicable law or regulations.
Republic First Bancorp, Inc. Consolidated Balance Sheets (Unaudited) December 31, September 30, December 31, (dollars in thousands) 2014 2014 2013 ---- ---- ---- ASSETS Cash and due from banks $14,822 $13,546 $12,525 Interest-bearing deposits and federal funds sold 114,004 92,298 23,355 -------------- Total cash and cash equivalents 128,826 105,844 35,880 Securities - Available for sale 185,379 158,830 204,891 Securities - Held to maturity 67,866 68,991 21 Restricted stock 1,157 1,725 1,570 Total investment securities 254,402 229,546 206,482 Loans held for sale 1,676 789 4,931 Loans receivable 781,940 752,033 679,311 Allowance for loan losses (11,536) (12,216) (12,263) Net loans 770,404 739,817 667,048 Premises and equipment 35,030 29,767 22,748 Other real estate owned 3,715 3,775 4,059 Other assets 20,545 21,178 20,517 Total Assets $1,214,598 $1,130,716 $961,665 LIABILITIES Non-interest bearing deposits $224,245 $216,642 $157,806 Interest bearing deposits 847,985 773,433 711,728 Total deposits 1,072,230 990,075 869,534 Subordinated debt 22,476 22,476 22,476 Other liabilities 7,081 6,572 6,756 Total Liabilities 1,101,787 1,019,123 898,766 SHAREHOLDERS' EQUITY Common stock - $0.01 par value 383 383 265 Additional paid-in capital 152,234 152,122 107,078 Accumulated deficit (35,266) (36,119) (37,708) Treasury stock at cost (3,725) (3,725) (3,099) Stock held by deferred compensation plan (183) (183) (809) Accumulated other comprehensive income (loss) (632) (885) (2,828) Total Shareholders' Equity 112,811 111,593 62,899 Total Liabilities and Shareholders' Equity $1,214,598 $1,130,716 $961,665 ===================================
Republic First Bancorp, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended Twelve Months Ended ------------------ ------------------- December 31, September 30, December 31, December 31, December 31, (dollars in thousands, except per share amounts) 2014 2014 2013 2014 2013 ---- ---- ---- ---- ---- INTEREST INCOME Interest and fees on loans $9,236 $9,000 $8,181 $34,869 $32,335 Interest and dividends on investment securities 1,470 1,356 1,321 5,417 4,685 Interest on other interest earning assets 80 45 42 187 185 ------------- Total interest income 10,786 10,401 9,544 40,473 37,205 INTEREST EXPENSE Interest on deposits 968 918 828 3,536 3,478 Interest on borrowed funds 278 277 278 1,108 1,112 Total interest expense 1,246 1,195 1,106 4,644 4,590 Net interest income 9,540 9,206 8,438 35,829 32,615 Provision for loan losses 300 300 3,760 900 4,935 Net interest income after provision for loan losses 9,240 8,906 4,678 34,929 27,680 NON-INTEREST INCOME Service fees on deposit accounts 328 316 277 1,224 1,046 Gain on sale of SBA loans 1,903 614 1,475 4,717 5,338 Gain (loss) on sale of investment securities - - - 458 703 Other non-interest income 196 441 459 1,618 2,129 Total non-interest income 2,427 1,371 2,211 8,017 9,216 NON-INTEREST EXPENSE Salaries and employee benefits 5,147 5,074 3,788 20,089 17,064 Occupancy and equipment 1,746 1,749 1,453 6,629 5,740 Legal and professional fees 615 614 847 2,758 3,298 Foreclosed real estate 732 376 1,408 1,794 3,179 Regulatory assessments and related fees 274 258 345 1,065 1,257 Other operating expenses 2,278 1,915 2,276 8,215 9,873 Total non-interest expense 10,792 9,986 10,117 40,550 40,411 Income (loss) before provision (benefit) for income taxes 875 291 (3,228) 2,396 (3,515) Provision (benefit) for income taxes 22 (6) 33 (46) (35) --- --- --- --- --- Net income (loss) $853 $297 $(3,261) $2,442 $(3,480) ==== ==== ======= ====== ======= Net Income (Loss) per Common Share Basic $0.02 $0.01 $(0.13) $0.07 $(0.13) Diluted $0.02 $0.01 $(0.13) $0.07 $(0.13) Average Common Shares Outstanding Basic 37,815 37,815 25,973 34,232 25,973 Diluted 38,121 38,253 25,973 34,591 25,973
Republic First Bancorp, Inc. Average Balances and Net Interest Income (unaudited) For the three months ended For the three months ended For the three months ended (dollars in thousands) December 31, 2014 September 30, 2014 December 31, 2013 ----------------- ------------------ ----------------- 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 $122,787 $80 0.26% $77,666 $45 0.23% $61,963 $42 0.27% Securities 234,479 1,527 2.60% 221,357 1,408 2.54% 206,259 1,361 2.64% Loans receivable 757,953 9,283 4.86% 744,466 9,046 4.82% 663,567 8,226 4.92% ------- ----- ---- ------- ----- ---- ------- ----- ---- Total interest-earning assets 1,115,219 10,890 3.87% 1,043,489 10,499 3.99% 931,789 9,629 4.10% Other assets 55,997 53,430 46,363 ------ ------ ------ Total assets $1,171,216 $1,096,919 $978,152 ========== ========== ======== Interest-bearing liabilities: Demand non interest-bearing $214,872 $196,734 $159,956 Demand interest-bearing 258,443 252 0.39% 229,229 220 0.38% 218,275 210 0.38% Money market & savings 478,651 537 0.45% 449,848 509 0.45% 419,982 431 0.41% Time deposits 76,756 179 0.93% 79,798 189 0.94% 81,744 187 0.91% ------ --- ---- ------ --- ---- ------ --- ---- Total deposits 1,028,722 968 0.37% 955,609 918 0.38% 879,957 828 0.37% Total interest-bearing deposits 813,850 968 0.47% 758,875 918 0.48% 720,001 828 0.46% ------- --- ---- ------- --- ---- ------- --- ---- Other borrowings 22,689 278 4.86% 22,476 277 4.89% 22,476 278 4.91% ------ --- ---- ------ --- ---- ------ --- ---- Total interest-bearing liabilities 836,539 1,246 0.59% 781,351 1,195 0.61% 742,477 1,106 0.59% ------- ----- ---- ------- ----- ---- ------- ----- ---- Total deposits and other borrowings 1,051,411 1,246 0.47% 978,085 1,195 0.48% 902,433 1,106 0.49% ----- ---- ----- ---- ----- ---- Non interest-bearing liabilities 7,427 7,198 9,312 Shareholders' equity 112,378 111,636 66,407 ------- ------- ------ Total liabilities and shareholders' equity $1,171,216 $1,096,919 $978,152 ========== ========== ======== Net interest income $9,644 $9,304 $8,523 ====== ====== ====== Net interest spread 3.28% 3.38% 3.51% ==== ==== ==== Net interest margin 3.43% 3.54% 3.63% ==== ==== ==== Note: The above tables are presented on a tax equivalent basis.
Republic First Bancorp, Inc. Average Balances and Net Interest Income (unaudited) For the twelve months ended For the twelve months ended (dollars in thousands) December 31, 2014 December 31, 2013 ----------------- ----------------- 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 $75,593 $187 0.25% $67,307 $185 0.27% Securities 217,939 5,613 2.58% 192,315 4,820 2.51% Loans receivable 724,231 35,052 4.84% 640,233 32,523 5.08% ------- ------ ---- ------- ------ ---- Total interest-earning assets 1,017,763 40,852 4.01% 899,855 37,528 4.17% Other assets 50,302 50,616 ------ ------ Total assets $1,068,065 $950,471 ========== ======== Interest-bearing liabilities: Demand non interest-bearing $189,810 $149,125 Demand interest-bearing 233,693 888 0.38% 192,224 825 0.43% Money market & savings 439,484 1,929 0.44% 417,652 1,786 0.43% Time deposits 78,073 719 0.92% 92,484 867 0.94% ------ --- ---- ------ --- ---- Total deposits 941,060 3,536 0.38% 851,485 3,478 0.41% Total interest-bearing deposits 751,250 3,536 0.47% 702,360 3,478 0.50% ------- ----- ---- ------- ----- ---- Other borrowings 22,530 1,108 4.92% 22,476 1,112 4.95% ------ ----- ---- ------ ----- ---- Total interest-bearing liabilities 773,780 4,644 0.60% 724,836 4,590 0.63% ------- ----- ---- ------- ----- ---- Total deposits and other borrowings 963,590 4,644 0.48% 873,961 4,590 0.53% ----- ---- ----- ---- Non interest-bearing liabilities 7,084 7,902 Shareholders' equity 97,391 68,608 ------ ------ Total liabilities and shareholders' equity $1,068,065 $950,471 ========== ======== Net interest income $36,208 $32,938 ======= ======= Net interest spread 3.41% 3.54% ==== ==== Net interest margin 3.56% 3.66% ==== ==== Note: The above tables are presented on a tax equivalent basis.
Republic First Bancorp, Inc. Summary of Allowance for Loan Losses and Other Related Data (unaudited) Three months ended Twelve months ended ------------------ ------------------- December 31, September 30, December 31, December 31, December 31, (dollars in thousands) 2014 2014 2013 2014 2013 ---- ---- ---- ---- ---- Balance at beginning of period $12,216 $12,063 $8,704 $12,263 $9,542 Provision charged to operating expense 300 300 3,760 900 4,935 --- --- ----- --- ----- 12,516 12,363 12,464 13,163 14,477 Recoveries on loans charged-off: Commercial 120 264 48 385 117 Consumer - - - - 26 --- --- --- --- --- Total recoveries 120 264 48 385 143 Loans charged-off: Commercial (1,100) (411) (249) (2,002) (2,282) Consumer - - - (10) (75) --- --- --- --- --- Total charged-off (1,100) (411) (249) (2,012) (2,357) ------ ---- ---- ------ ------ Net charge-offs (980) (147) (201) (1,627) (2,214) ---- ---- ---- ------ ------ Balance at end of period $11,536 $12,216 $12,263 $11,536 $12,263 ======= ======= ======= ======= ======= Net charge-offs as a percentage of average loans outstanding 0.51% 0.08% 0.12% 0.22% 0.35% Allowance for loan losses as a percentage of period-end loans 1.48% 1.62% 1.81% 1.48% 1.81%
Republic First Bancorp, Inc. Summary of Non-Performing Loans and Assets (unaudited) December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2014 2014 2014 2014 2013 ---- ---- ---- ---- ---- Non-accrual loans: Commercial real estate $21,011 $22,607 $23,750 $9,733 $9,764 Consumer and other 429 437 446 643 656 --- --- --- --- --- Total non-accrual loans 21,440 23,044 24,196 10,376 10,420 Loans past due 90 days or more and still accruing - 131 2,722 - - --- --- ----- --- --- Total non-performing loans 21,440 23,175 26,918 10,376 10,420 Other real estate owned 3,715 3,775 3,637 3,696 4,059 ----- ----- ----- ----- ----- Total non-performing assets $25,155 $26,950 $30,555 $14,072 $14,479 ======= ======= ======= ======= ======= Non-performing loans to total loans 2.74% 3.08% 3.74% 1.49% 1.53% Non-performing assets to total assets 2.07% 2.38% 2.87% 1.44% 1.51% Non-performing loan coverage 53.81% 52.71% 44.81% 115.17% 117.69% Allowance for loan losses as a percentage of total period-end loans 1.48% 1.62% 1.68% 1.71% 1.81% Non-performing assets / capital plus allowance for loan losses 20.23% 21.77% 24.74% 18.27% 19.26%
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SOURCE Republic First Bancorp, Inc.