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Oct 24, 2016 13:29:00 (ET)
Republic First Bancorp, Inc. Reports Third Quarter Financial Results Net Income Increases 130% And Deposits Grow 28%
PR Newswire
PHILADELPHIA, Oct. 24, 2016
PHILADELPHIA, Oct. 24, 2016 /PRNewswire/ -- Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2016.
Three Months Ended
($ in millions, except per share data) 9/30/16 9/30/15 % Change
-------- -------- ----------
Assets $1,734.5 $1,380.8 26%
Loans 945.5 845.4 12%
Deposits 1,582.2 1,237.5 28%
Total Revenue $17.2 $11.6 48%
Net Income 1.3 0.6 130%
Net Income per Diluted Share $0.03 $0.02 50%
The "Power of Red is Back" expansion strategy continues to move forward and produce positive results. "Since the launch of our expansion plan we have been able to demonstrate consistent growth in the balance sheet by increasing loans and deposits," said Harry D. Madonna, Chairman and Chief Executive Officer of Republic First Bancorp, Inc. "We're also seeing significant progress on the income statement as quarterly earnings improved by 130% year over year."
On October 11, 2016 we filed a universal shelf registration statement with the Securities and Exchange Commission. This will allow us to issue various types of securities including common stock, preferred stock, debt securities and warrants up to an aggregate amount of $100 million. "We're anticipating the need to raise additional capital in the near future to support our continued growth and expansion plan," said Madonna. "The shelf registration statement will provide us with the financial flexibility necessary to complete that process when the time comes."
During the third quarter, the Company completed the acquisition of Oak Mortgage Company, a residential mortgage lending company based in Marlton, NJ. The acquisition closed on July 28, 2016 and the integration into the Bank's operation has gone exceptionally well.
The Company held a grand opening celebration for its newest store in Moorestown, NJ in September and welcomed new fans throughout the month. Construction also began on a second site in Cherry Hill, NJ which is scheduled to be completed in the first quarter of 2017. Additional locations planned for Medford, Sicklerville and Gloucester Township, New Jersey and Fairless Hills and Feasterville, Pennsylvania are currently in various stages of development.
Highlights for the Period Ended September 30, 2016
-- Net income increased by 130% to $1.3 million, or $0.03 per diluted share,
in the third quarter of 2016 compared to $582 thousand, or $0.02 per
diluted share, in the third quarter of 2015. The Company continues to
open new stores and increase net income despite the additional costs
associated with the expansion strategy. The acquisition of Oak Mortgage
has also contributed to improved earnings.
-- A new store was opened in Moorestown, NJ during the third quarter
bringing the total store count to nineteen. Another site now under
construction in Cherry Hill, NJ is scheduled to be completed in early
2017. There are also several additional sites in various stages of
development for future store locations.
-- New stores opened since the beginning of the "Power of Red is Back"
expansion campaign in 2014 are currently growing deposits at an average
rate of $41 million per year, while the average deposit growth for all
stores over the last twelve months was approximately $18 million per
store.
-- Total deposits increased by $345 million, or 28%, to $1.6 billion as of
September 30, 2016 compared to $1.2 billion as of September 30, 2015.
-- Total assets increased by $354 million, or 26%, to $1.7 billion as of
September 30, 2016 compared to $1.4 billion as of September 30, 2015.
-- Total loans grew $101 million, or 12%, to $946 million as of September
30, 2016 compared to $845 million at September 30, 2015.
-- SBA lending continued to be an important part of the Company's lending
strategy. More than $19 million in new SBA loans were originated during
the three month period ended September 30, 2016. Our team is currently
ranked as the #1 SBA lender in the New Jersey and southeastern
Pennsylvania market based on the dollar volume of loan originations.
-- The Company's Total Risk-Based Capital ratio was 12.00% and Tier I
Leverage Ratio was 8.14% at September 30, 2016.
-- Tangible book value per share was $3.16 as of September 30, 2016. This
amount excludes approximately $0.34 per share attributable to the
deferred tax asset valuation allowance.
Income Statement
The major components of the income statement are as follows (dollars in thousands, except per share data):
Three Months Ended Nine Months Ended
09/30/16 09/30/15 % Change 09/30/16 09/30/15 % Change
---------- ---------- -------- ---------- ---------- --------
Total Revenue $ 17,197 $ 11,596 48% $ 45,528 $ 34,271 33%
Provision for
Loan Losses 607 - 100% 1,557 - 100%
Non-interest
Expenses 15,282 11,024 39% 40,592 32,645 24%
Net Income 1,340 582 130% 3,448 1,643 110%
Net Income
per Share $ 0.03 $ 0.02 50% $ 0.09 $ 0.04 125%
The Company reported net income of $1.3 million, or $0.03 per diluted share, for the three month period ended September 30, 2016, compared to net income of $582 thousand, or $0.02 per diluted share, for the three month period ended September 30, 2015. Net income for the nine month period ended September 30, 2016 was $3.4 million, or $0.09 per diluted share, compared to net income of $1.6 million, or $0.04 per diluted share, for the nine months ended September 30, 2015.
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