Republic First Bancorp, Inc. Reports Third Quarter Earnings
- Press Release
- Source: Republic First Bank
- On 3:19 pm EDT, Thursday October 29, 2009
PHILADELPHIA, Oct. 29 /PRNewswire-FirstCall/ -- Republic First Bancorp, Inc. (Nasdaq: FRBK - News), (the "Company") the holding company for Republic First Bank (PA), today reported net income of $185,000, or $.02 per share, for the quarter ended September 30, 2009.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| FRBK | 3.94 | -0.08 |
Chief Executive Officer's Statement
In commenting on the Company's financial results, Harry D. Madonna, Chief Executive Officer, noted the following highlights:
- The Agreement and Plan of Merger with Metro Bancorp Inc. (formerly, Pennsylvania Commerce Bancorp, Inc.) ("Metro"), approved by the Shareholders of both companies, has been submitted for regulatory approval. The Company and Metro have extended the contractual deadline for the merger to December 31, 2009.
- The Company continues to strengthen the balance sheet and focus on asset quality.
- Core deposits increased by $119.1 million, or 22%, over the past 12 months as we make strong progress in building for the future.
- Liquidity continues to improve resulting in the reduction of outside borrowings by $100.7 million compared to September 30, 2008.
- Total loans have decreased by $61.3 million over the previous 12 months as a result of the ongoing effort to reduce exposure to commercial real estate and reposition our portfolio.
- The allowance for loan losses increased by 86% to $12.6 million at September 30, 2009 compared to $6.8 million one year ago.
- Capital remains very strong with a Total Capital ratio of 12.45% and a Leverage Ratio of 9.72% at September 30, 2009.
- We continue to reposition for the pending merger with the addition of new talent, products and services.
Income Statement
(dollars in thousands, except per share data)
Three months ended
------------------
% %
9/30/09 6/30/09 Change 9/30/08 Change
------- ------- ------ ------- ------
Total revenues* $7,055 $7,174 -2% $8,290 -15%
Non-interest expenses 6,700 7,219 -7% 6,008 12%
Net income (loss) 185 (5,435) 103% 1,533 -88%
Earnings (loss) per share $0.02 $(0.51) 104% $0.14 -86%
Nine months ended
-----------------
%
9/30/09 9/30/08 Change
------- ------- ------
Total revenues* $21,739 $24,017 -9%
Non-interest expenses 22,404 18,517 21%
Net income (loss) (9,010) (56) -15989%
Earnings (loss) per share $(0.85) $(0.01) -8400%
* Net interest income plus non-interest income
The Company reported net income of $185,000, or $0.02 per diluted share, for the three months ended September 30, 2009, compared to a net loss of $5.4 million, or $0.51 per share, for the three months ended June 30, 2009. Non-interest expenses decreased by 7% in the third quarter of 2009 compared to the prior quarter.
Balance Sheet
(dollars in thousands) % %
9/30/09 9/30/08 Change 6/30/09 Change
------- ------- ------ ------- ------
Total assets $952,451 $964,732 -1% $937,116 2%
Total loans (net) 697,073 764,245 -9% 731,981 -5%
Total deposits 823,638 729,487 13% 808,636 2%
Total core deposits* 650,823 531,755 22% 627,350 4%
* Core deposits equal total deposits less public and brokered certificates
of deposit
The Company's ongoing effort to remix and strengthen the balance sheet continues to show progress. Net loans decreased to $697.1 million as of September 30, 2009, as the Company continues to reduce concentrations in the commercial real estate portfolio. Core deposits grew by 22% to $650.8 million as of September 30, 2009 compared to $531.8 million one year ago. Liquidity continues to improve as the Company reduced outside borrowings by $100.7 million over the past 12 months while increasing cash and cash equivalent balances by $19.3 million over the same period.
Core Deposits
Core deposits by type of account are as follows:
(dollars in thousands) 3rd Qtr 2009
% % Cost of
9/30/09 9/30/08 Change 6/30/09 Change Funds
------- ------- ------ ------- ------ --------
Demand non-
interest-bearing $92,017 $77,728 18% $91,642 0% 0.00%
Demand interest-
bearing 47,418 32,432 46% 42,675 11% 0.64%
Money market and
savings 303,111 240,055 26% 304,879 -1% 1.83%
Certificates of
deposit 208,277 181,540 15% 188,154 11% 2.95%
------- ------- -- ------- -- ----
Total core
deposits $650,823 $531,755 22% $627,350 4% 1.84%
======== ======== == ======== == ====
Core deposits, which exclude all public and brokered certificates of deposit, increased to $650.8 million at September 30, 2009, an increase of $23.5 million, or 4%, from June 30, 2009 and an increase of $119.1 million, or 22%, compared to September 30, 2008.
Lending
The following table sets forth the composition of the Company's loan portfolio at the dates indicated.
(dollars in thousands)
% of % of % of
9/30/09 Total 9/30/08 Total 6/30/09 Total
------- ----- ------- ----- ------- -----
Commercial $85,881 12% $86,221 11% $94,989 13%
Owner Occupied 78,527 11% 78,450 10% 64,887 8%
------ -- ------ -- ------ --
Total Commercial 164,408 23% 164,671 21% 159,876 21%
Consumer & Residential 20,586 3% 25,121 3% 22,184 3%
Commercial Real Estate 524,723 74% 581,260 76% 565,958 76%
------- -- ------- -- ------- --
Gross loans $709,717 100% $771,052 100% $748,018 100%
======== === ======== === ======== ===
Asset Quality
The Company's asset quality ratios are highlighted below:
Quarter Ended
-------------
9/30/09 9/30/08 6/30/09
------- ------- -------
Nonperforming assets / total assets 3.09% 1.64% 2.76%
Net loan charge-offs / average total
loans 1.92% 0.00% 0.35%
Loan loss reserve / gross loans 1.78% 0.88% 2.14%
Nonperforming loan coverage 68% 93% 101%
Nonperforming assets / capital and
reserves 34% 20% 30%
Non-performing assets were $29.4 million, or 3.09% of total assets, as of September 30, 2009 compared to $25.9 million, or 2.76%, of total assets at June 30, 2009 and $15.9 million, or 1.64%, of total assets a year earlier.
Capital
The Company's capital ratios at September 30, 2009 were:
Republic Regulatory
First Guidelines
Bancorp, "Well
Inc. Capitalized"
-------- -------------
Leverage Ratio 9.72% 5.00%
Tier I 11.20% 6.00%
Total Capital 12.45% 10.00%
Total shareholders' equity was $72.8 million at September 30, 2009 which represented a book value per share of $6.82, based on common shares of approximately 10.7 million.
Republic First Bank (PA) 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 twelve offices located in Abington, Ardmore, Bala Cynwyd, Plymouth Meeting, Media and Philadelphia, Pennsylvania and Voorhees, New Jersey.
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. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. These factors include the success of our planned merger with Metro, credit risks of lending activities, changes in general economic conditions, price pressures on loan and deposit products, and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", and similar 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 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.
Selected Consolidated Financial Data
(Unaudited)
Three months ended
------------------
(dollars in thousands, % %
except per share amounts) 9/30/09 6/30/09 Change 9/30/08 Change
------- ------- ------ ------- ------
Income Statement Data:
Net interest income $6,805 $6,792 0% $7,618 -11%
Provision for loan losses 150 8,250 -98% 43 249%
Non-interest income 250 382 -35% 672 -63%
Total revenues 7,055 7,174 -2% 8,290 -15%
Non-interest expenses 6,700 7,219 -7% 6,008 12%
Provision (benefit) for
income taxes 20 (2,860) -101% 706 -97%
Net income (loss) 185 (5,435) -103% 1,533 -88%
Per Common Share Data:
Net income (loss): Basic $0.02 $(0.51) -104% $0.14 -86%
Net income (loss): Diluted 0.02 (0.51) -104% 0.14 -86%
Book Value $6.82 $6.69 $7.47
Weighted average shares
outstanding:
Basic 10,666 10,656 10,581
Diluted 10,666 10,656 12,310
Balance Sheet Data:
Total assets $952,451 $937,116 2%
Loans (net) 697,073 731,981 -5%
Allowance for loan losses 12,644 16,037 -21%
Investment securities 109,104 80,927 35%
Total deposits 823,638 808,636 2%
Core deposits* 650,823 627,350 4%
Other borrowed money 25,000 25,000 0%
Subordinated debt 22,476 22,476 0%
Stockholders' equity 72,783 71,307 2%
Capital:
Stockholders' equity to
total assets 7.64% 7.61%
Leverage ratio 9.72% 9.75%
Risk based capital ratios:
Tier 1 11.20% 10.83%
Total Capital 12.45% 12.09%
Performance Ratios:
Cost of funds 1.83% 1.98% 2.77%
Deposit cost of funds 1.69% 1.84% 2.69%
Net interest margin 3.23% 3.25% 3.48%
Return on average assets 0.08% -2.36% 0.65%
Return on average total
stockholders' equity 1.02% -28.88% 7.76%
Asset Quality
Net charge-offs to average
loans outstanding 1.92% 0.35%
Nonperforming assets to
total period-end assets 3.09% 2.76%
Allowance for loan losses
to total period-end loans 1.78% 2.14%
Allowance for loan losses
to nonperforming loans 68% 101%
Nonperforming assets to
capital and reserves 34% 30%
Nine months ended
-----------------
(dollars in thousands, except per share %
amounts) 9/30/09 9/30/08 Change
------- ------- ------
Income Statement Data:
Net interest income $20,455 $21,844 -6%
Provision for loan losses 13,200 5,898 124%
Non-interest income 1,284 2,173 -41%
Total revenues 21,739 24,017 -9%
Non-interest expenses 22,404 18,517 21%
Provision (benefit) for income taxes (4,855) (342) 1320%
Net income (loss) (9,010) (56) 15989%
Per Common Share Data:
Net income (loss): Basic $(0.85) $(0.01) 8400%
Net income (loss): Diluted (0.85) (0.01) 8400%
Book Value $6.82 $7.47
Weighted average shares outstanding:
Basic 10,651 10,463
Diluted 10,651 10,463
Balance Sheet Data:
Total assets $952,451 $964,732 -1%
Loans (net) 697,073 764,245 -9%
Allowance for loan losses 12,644 6,807 86%
Investment securities 109,104 92,949 17%
Total deposits 823,638 729,487 13%
Core deposits* 650,823 531,755 22%
Other borrowed money 25,000 125,682 -80%
Subordinated debt 22,476 22,476 0%
Stockholders' equity 72,783 79,257 -8%
Capital:
Stockholders' equity to total assets 7.64% 8.22%
Leverage ratio 9.72% 11.02%
Risk based capital ratios:
Tier 1 11.20% 12.28%
Total Capital 12.45% 13.09%
Performance Ratios:
Cost of funds 1.96% 3.08%
Deposit cost of funds 1.84% 3.05%
Net interest margin 3.24% 3.29%
Return on average assets -1.31% -0.01%
Return on average total stockholders'
equity -15.95% -0.09%
Asset Quality
Net charge-offs to average loans
outstanding 1.60% 1.27%
Nonperforming assets to total period-end
assets 3.09% 1.64%
Allowance for loan losses to total
period-end loans 1.78% 0.88%
Allowance for loan losses to nonperforming
loans 68% 93%
Nonperforming assets to capital and
reserves 34% 18%
* Core deposits equal total deposits less public and brokered
certificates of deposit
Republic First Bancorp, Inc. Average Balances
and Net Interest Income
(unaudited)
For the three months ended
(dollars in thousands) September 30, 2009
------------------
Interest
Average Income/ Yield/
Balance Expense Rate
------- ------- ----
Interest-earning assets:
Federal funds sold and other interest-
earning assets $26,250 $28 0.42%
Securities 82,039 1,036 5.05%
Loans receivable 733,767 9,705 5.25%
------- ----- ----
Total interest-earning assets 842,056 10,769 5.07%
Other assets 86,881
------
Total assets $928,937
========
Interest-bearing liabilities:
Demand non interest-bearing $86,206
Demand interest-bearing 48,148 $78 0.64%
Money market & savings 296,642 1,366 1.83%
Time deposits 369,863 1,963 2.11%
------- ----- ----
Total deposits 800,859 3,407 1.69%
Total interest-bearing deposits 714,653 3,407 1.89%
------- ----- ----
Other borrowings 47,476 501 4.19%
------ --- ----
Total interest-bearing liabilities $762,129 $3,908 2.03%
======== ====== ====
Total deposits and other borrowings 848,335 3,908 1.83%
------- ----- ----
Non interest-bearing liabilities 8,897
Shareholders' equity 71,705
------
Total liabilities and shareholders' equity $928,937
========
Net interest income $6,861
======
Net interest spread 3.04%
====
Net interest margin 3.23%
====
For the three months ended
(dollars in thousands) June 30, 2009
-------------
Interest
Average Income/ Yield/
Balance Expense Rate
------- ------- ----
Interest-earning assets:
Federal funds sold and other interest-
earning assets $9,955 $19 0.77%
Securities 86,230 1,109 5.14%
Loans receivable 747,725 9,863 5.29%
------- ----- ----
Total interest-earning assets 843,910 10,991 5.22%
Other assets 79,454
------
Total assets $923,364
========
Interest-bearing liabilities:
Demand non interest-bearing $81,046
Demand interest-bearing 44,487 $75 0.68%
Money market & savings 281,368 1,374 1.96%
Time deposits 383,161 2,180 2.28%
------- ----- ----
Total deposits 790,062 3,629 1.84%
Total interest-bearing deposits 709,016 3,629 2.05%
------- ----- ----
Other borrowings 47,690 514 4.32%
------ --- ----
Total interest-bearing liabilities $756,706 $4,143 2.20%
======== ====== ====
Total deposits and other borrowings 837,752 4,143 1.98%
------- ----- ----
Non interest-bearing liabilities 10,127
Shareholders' equity 75,485
------
Total liabilities and shareholders' equity $923,364
========
Net interest income $6,848
======
Net interest spread 3.02%
====
Net interest margin 3.25%
====
For the three months ended
(dollars in thousands) September 30, 2008
------------------
Interest
Average Income/ Yield/
Balance Expense Rate
------- ------- ----
Interest-earning assets:
Federal funds sold and other interest-
earning assets $8,568 $45 2.09%
Securities 92,525 1,334 5.77%
Loans receivable 775,642 12,208 6.26%
------- ------ ----
Total interest-earning assets 876,735 13,587 6.17%
Other assets 57,371
------
Total assets $934,106
========
Interest-bearing liabilities:
Demand non interest-bearing $71,990
Demand interest-bearing 31,090 $68 0.87%
Money market & savings 240,554 1,625 2.69%
Time deposits 381,820 3,216 3.35%
------- ----- ----
Total deposits 725,454 4,909 2.69%
Total interest-bearing deposits 653,464 4,909 2.99%
------- ----- ----
Other borrowings 122,709 1,005 3.26%
------- ----- ----
Total interest-bearing liabilities $776,173 $5,914 3.03%
======== ====== ====
Total deposits and other borrowings 848,163 5,914 2.77%
------- ----- ----
Non interest-bearing liabilities 7,393
Shareholders' equity 78,550
------
Total liabilities and shareholders' equity $934,106
========
Net interest income $7,673
======
Net interest spread 3.14%
====
Net interest margin 3.48%
====
The above tables are presented on a tax equivalent basis.
Republic First Bancorp, Inc. Average Balances and Net Interest Income
(unaudited)
(dollars in For the nine months ended For the nine months ended
thousands) September 30, 2009 September 30, 2008
------------------ ------------------
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 $13,393 $50 0.50% $10,478 $199 2.54%
Securities 86,379 3,335 5.15% 87,506 3,814 5.81%
Loans receivable 750,550 29,558 5.27% 796,782 37,821 6.34%
------- ------ ---- ------- ------ ----
Total interest-
earning assets 850,322 32,943 5.18% 894,766 41,834 6.25%
Other assets 72,651 51,915
------ ------
Total assets $922,973 $946,681
======== ========
Interest-bearing
liabilities:
Demand non
interest-bearing $81,625 $76,487
Demand interest-
bearing 44,930 $218 0.65% 34,760 $283 1.09%
Money market &
savings 268,481 3,841 1.91% 219,877 4,663 2.83%
Time deposits 382,497 6,644 2.32% 402,235 11,825 3.93%
------- ----- ---- ------- ------ ----
Total deposits 777,533 10,703 1.84% 733,359 16,771 3.05%
Total interest-
bearing deposits 695,908 10,703 2.06% 656,872 16,771 3.41%
------- ------ ---- ------- ------ ----
Other borrowings 60,816 1,618 3.56% 125,140 3,046 3.25%
------ ----- ---- ------- ----- ----
Total interest-
bearing
liabilities $756,724 $12,321 2.18% $782,012 $19,817 3.38%
======== ======= ==== ======== ======= ====
Total deposits and
other borrowings 838,349 12,321 1.96% 858,499 19,817 3.08%
------- ------ ---- ------- ------ ----
Non interest-bearing
liabilities 9,106 8,955
Shareholders' equity 75,518 79,227
------ ------
Total liabilities
and shareholders'
equity $922,973 $946,681
======== ========
Net interest income $20,622 $22,017
======= =======
Net interest spread 3.00% 2.87%
==== ====
Net interest margin 3.24% 3.29%
==== ====
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 Nine months ended
------------------ ----- -----------------
(dollars in
thousands) 9/30/09 6/30/09 9/30/08 12/31/08 9/30/09 9/30/08
------- ------- ------- -------- ------- -------
Balance at
beginning of
period $16,037 $8,434 $6,760 $8,508 $8,409 $8,508
Provisions charged
to operating
expense 150 8,250 43 7,499 13,200 5,898
--- ----- -- ----- ------ -----
16,187 16,684 6,803 16,007 21,609 14,406
Recoveries on loans
charged-off:
Commercial - - 2 119 - 119
Tax refund loans - - 8 77 - 77
Consumer 1 1 - 3 2 2
-- -- -- -- -- --
Total recoveries 1 1 10 199 2 198
Loans charged-off:
Commercial (3,544) (645) - (7,778) (8,961) (7,778)
Tax refund loans - - - - - -
Consumer - (3) (6) (19) (6) (19)
-- -- -- --- -- ---
Total charged-off (3,544) (648) (6) (7,797) (8,967) (7,797)
------ ---- -- ------ ------ ------
Net charge-offs (3,543) (647) 4 (7,598) (8,965) (7,599)
------ ---- -- ------ ------ ------
Balance at end
of period $12,644 $16,037 $6,807 $8,409 $12,644 $6,807
======= ======= ====== ====== ======= ======
Net charge-offs as a
percentage of
average loans
outstanding 1.92% 0.35% 0.00% 0.96% 1.60% 1.27%
Allowance for loan
losses as a
percentage of
period-end loans 1.78% 2.14% 0.88% 1.07% 1.78% 0.88%
Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
(dollars in Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Thousands) 2009 2009 2009 2008 2008
---- ---- ---- ---- ----
Non-accrual loans:
Commercial real
estate $17,997 $15,262 $14,882 $16,424 $6,369
Consumer and other 588 600 607 909 918
--- --- --- --- ---
Total non-accrual
loans 18,585 15,862 15,489 17,333 7,287
Loans past due 90
days or more
and still accruing - - 2,759 - -
Renegotiated loans - - - - -
- - - - -
Total non-
performing loans 18,585 15,862 18,248 17,333 7,287
Other real estate
owned 10,847 10,016 10,016 8,580 8,580
------ ------ ------ ----- -----
Total non-performing
assets $29,432 $25,878 $28,264 $25,913 $15,867
======= ======= ======= ======= =======
Non-performing loans
to total loans 2.62% 2.12% 2.43% 2.21% 0.95%
Non-performing assets
to total assets 3.09% 2.76% 3.10% 2.72% 1.64%
Non-performing
loan coverage 68% 101% 46% 49% 93%
Allowance for loan
losses as a percentage
of total period-
end loans 1.78% 2.14% 1.12% 1.07% 0.88%
Non-performing
assets/capital plus
allowance for
loan losses 34% 30% 33% 30% 18%
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