REPUBLIC FIRST BANCORP, INC. REPORTS DEPOSIT GROWTH OF 19%

TOTAL REVENUE INCREASES BY 24%

Philadelphia, PA, April 22, 2016 (PR Newswire) – Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the three month period ended March 31, 2016.

The Power of Red is Back expansion campaign continued to produce strong results during the first quarter of 2016.  "Assets, loans and deposits are growing at double digit rates which are far beyond industry standards," said Harry D. Madonna, the Company's Chairman and Chief Executive Officer.  "In the first quarter we saw meaningful progress on the income statement as well.  Total revenue grew by 24% year over year, which outpaced the 17% growth in non-interest expenses required to continue the build out of our store network.  This drove an increase in net income in excess of 100% year over year."

"Our expansion strategy is really starting to build momentum," added Madonna.  "The new stores opened over the last two years are growing deposits at a rate of $36 million per year.  We are winning new Fans over every day with our unmatched commitment to customer service."

Two new stores were recently opened in Washington Township, NJ and Wynnewood, PA utilizing the Bank's signature glass building. There are currently eighteen stores serving customers in the Greater Philadelphia and Southern New Jersey region.  Additional stores are planned for Cherry Hill, Gloucester Township, Medford, Moorestown and Sicklerville.

 

 

 

 

 

·

Net income per share increased by 200% to $0.03 per share, during the first quarter of 2016 compared to $0.01 per share during the first quarter of 2015. Net income grew to $1.1 million for the three month period ending March 31, 2016. The Company continues to open new stores and increase net income despite the additional costs associated with the expansion strategy.

·

Two new stores were recently opened in Washington Township, NJ and Wynnewood, PA bringing the total store count to eighteen. Another site now under construction is scheduled to be completed in the summer of 2016. There are also several additional sites in various stages of development for future store locations.

·

New stores opened within the last 2 years are currently growing deposits at an average rate of $36 million per year, while the average deposit growth for all stores over the last twelve months was approximately $13 million per store.

·

Total deposits increased by $216 million, or 19%, to $1.3 billion as of March 31, 2016 compared to $1.1 billion as of March 31, 2015.  The deposit cost of funds decreased to 0.36% during the first quarter of 2016 compared to 0.38% for the first quarter of 2015.

·

The net interest margin increased to 3.37% for the quarter ended March 31, 2016 compared to 3.33% in the quarter ended March 31, 2015.

·

Total assets increased by $219 million, or 17%, to $1.5 billion as of March 31, 2016 compared to $1.3 billion as of March 31, 2015.

·

Total loans grew $110 million, or 14%, to $899 million as of March 31, 2016 compared to $789 million at March 31, 2015.

·

SBA lending continued to be an important part of the Company's lending strategy. More than $9 million in new SBA loans were originated during the three month period ended March 31, 2016. 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.

·

The Company's Total Risk-Based Capital ratio was 13.01% and Tier I Leverage Ratio was 9.37% at March 31, 2016.

·

Tangible book value per share was $3.08 as of March 31, 2016. This amount excludes approximately $0.35 per share attributable to the deferred tax asset valuation allowance.

 

 

 

 

 

The major components of the income statement are as follows (dollars in thousands, except per share data):

The Company reported net income of $1.1 million, or $0.03 per share, for the three month period ended March 31, 2016, compared to net income of $528 thousand, or $0.01 per share, for the three month period ended March 31, 2015.

Total revenue increased by $2.7 million, or 24%, to $13.7 million for the three month period ended March 31, 2016 compared to $11.0 million for the three month period ended March 31, 2015.  This increase was primarily driven by strong growth in interest-earning assets over the last twelve months.

Non-interest income increased to $2.4 million for the three month period ended March 31, 2016 compared to $1.6 million for the three month period ended March 31, 2015.  This increase was primarily due to higher volumes in gains on sales of SBA loans, gains on sale of investment securities, and an increase in service fees on deposit accounts.

Non-interest expenses increased by $1.8 million, or 17%, to $12.3 million during the three month period ended March 31, 2016 compared to $10.5 million during the three months ended March 31, 2015. This increase was mainly caused by higher salaries and employee benefits as a result of annual merit increases along with increased staffing levels related to our growth strategy of adding and relocating stores. Occupancy and equipment expenses associated with the growth and relocation strategy also contributed to the increase in non-interest expenses.

 

 

 

 

 

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

Total assets increased by $218.7 million, or 17%, as of March 31, 2016 when compared to March 31, 2015.  Deposits grew by $216.2 million to $1.3 billion as of March 31, 2016 compared to $1.1 billion as of March 31, 2015. The number of deposit accounts has grown by 42% during the past twelve months. The strong growth in assets, loans and deposits has been driven by the Company's successful execution of its aggressive growth strategy referred to as "The Power of Red is Back."

Core deposits by type of account are as follows (dollars in thousands):

Core deposits increased to $1.3 billion at March 31, 2016 compared to $1.1 billion at March 31, 2015 as the Company moves forward with its expansion strategy to increase the number of brick and mortar stores which drives the gathering of low-cost core deposits. The Company recognized strong growth in demand, money market and savings account balances on a year to year basis.

 

 

 

 

 

 

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

Gross loans increased by $110.3 million, or 14%, to $899.1 million at March 31, 2016 compared to $788.8 million at March 31, 2015 as a result of an increase in quality loan demand over the last twelve months and continued success with the relationship banking model.  The Company experienced strongest growth in the commercial and industrial and owner occupied real estate categories.

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

The percentage of non-performing assets to total assets decreased to 2.11% at March 31, 2016, compared to 2.28% as of March 31, 2015. Non-performing loans to total loans decreased significantly to 2.21% at March 31, 2016 compared to 3.17% at March 31, 2015 as a result of the successful migration of certain assets to the other real estate owned category through the work-out process.  The increase in non-performing assets to total assets on a linked quarter basis was driven by a single loan relationship that was categorized as 90 days past due but still accruing at March 31, 2016.  This relationship is currently in the process of collection.

 

 

 

 

 

The Company's capital ratios at March 31, 2016 were as follows:

Total shareholders' equity increased to $116.6 million at March 31, 2016 compared to $113.9 million at March 31, 2015.  Tangible book value per share increased to $3.08 at March 31, 2016 compared to $3.01 per share at March 31, 2015.

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 eighteen stores located in Abington, Bala Cynwyd, Plymouth Meeting, Media, Wynnewood and Philadelphia, Pennsylvania and Haddonfield, Cherry Hill, Voorhees, Glassboro, Marlton, Berlin and Washington Township, New Jersey.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with the most convenient hours compared to any bank in its market.  The Bank also offers free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint Network.  For more information about Republic Bank, visit www.myrepublicbank.com.

 

 

 

 

 

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, 2015 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.

Frank A. Cavallaro, CFO

(215) 735-4422

 

 

 

---

---

---

---