FRBK - Earnings call transcript Q4 2018 | Republic First Bancorp Inc

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Operator

Welcome to the Fourth Quarter 2018 Earnings Conference Call. My name is Sherrill and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session. [Operator Instructions] Please note that this conference call is being recorded. the to turn may Hill, now begin. would call Vernon over you I

Vernon Hill

each welcome Madonna; you Bank’s morning Officer. Officer of Good to Chief Cavallaro, and Andy Chief call. Financial me and Frank Officer, fourth With to are Executive Harry Chief Logue, Operating quarter Republic the

We it and I’d have go like copy are through I up. then our of the all to you report, points we to open will fourth pleased main believe a quarter release.

for the to – before tax For XX% income the year income increased $XX.X year, million.

because instead We the are pre-tax year, lower the of focusing unusual we quarter on of charge. earnings the had an after-tax earnings fourth last in

short XX% We the will later year the are growth and in we mix deposits. in to pleased of deposits grew for on about report talk

report for growth year, ratio We campaign for the for is XX% XX% Red new an loan-to-deposit our average deposit million. $XX are last and “Power the year since rate year average grew loans $XX the at stores Back” grew all to our the of the from year Total while the to of that months grew twelve over XX%. stores each proud beginning of grew for deposits opened million

We the are for year. only grew well while growth. our expenses the loan top-line Interesting doing very on year, non-interest XX% the grew XX% for

call as So, growth. written between have there top-line draws the and is we a expense quite growth the big

expense and build estimated line the the were? including our to numbers our stores that expansion expense expenses pre-expenses the Frank that XXXX went cost of the of in including new All New in York of through some the

Frank Cavallaro

Approximately $X.X million.

Vernon Hill

chart the numbers. showing showing In Page the we same – are X, showing a are we again

stores our first we these new same the you all XXXX. common original plus opened we willing fourteenth and we X, highest interest-bearing. fifth was there. Manhattan Xrd which store, you continue did thing to day preferred of part and and We growth stores and the year second be intend XXst will of in our are and four was of our of seven some stores to two that in converted in demand we open million for are god first to to at expense remember new opening, stores [Indiscernible] open the reduced two deposits to Those issuing we deposits. deposits demand of to include non-interest-bearing expect year we that the on in average our Page million if an by seven and XX% forward down open both seeing those in Going $XXX,XXX. happened our did growth section $XX.X Manhattan to pleased One shares of and in the the X.X quarter look XXXX second announce trust hope stores stock,

Page final to to you X, growth net and top-line pre-tax the down you in the XXXX. the the break the net are number three, that at income. the of look suggest can expenses of On page, in of X, on deposits. line, we compare we showing income Page you bottom On XXXX Remember, growth the see

total Our to Page quality our coverage On points. XX%. to X.XX. and asset fourth continues to loan cost in assets our reserve assets to quarter non-performing loss money That’s to X, non-performing grew our the perform X.X to was our dropped assets

to anything? say like you if would Harry, think I

Harry Madonna

York. growing we staffing way at planned in are talking New just we we We see had busy are the and about just

It’s positive about going very well. very that. are We

Vernon Hill

a members and page. will if you are in And see converse, we’ve included, on as we have an impressive improving tough list we can early where vary, team

now questions. for – up open I the think open we can please

Operator

from our from question And first Frank Schiraldi O'Neill. Sandler Instructions] comes [Operator

Frank. open, is line Your

Frank Schiraldi

morning. Good

Vernon Hill

Frank. morning, Good

Frank Schiraldi

the was on Vernon the one Just, the numbers twelve. per cited number, store the last growth over $XX you million of

Just elsewhere very kind we the strong obviously compared number look industry. to that see what curious of in as at number, you

expectations that next, for it, see number number, or goals you over that in you what As for call do terms twelve think months? it the number that about of

Vernon Hill

should Frank, the in at stores. the new model higher in not much had we growth The only where look to level the we break new the yet. and stores have old a converted stores been

the conversely, a the certainly higher up. become of a between range now is to part, obvious So, and it old and numbers for seems trend stores an that’s stores on These New million the that. percentage total us that watch the important the pretty as safe number new the $XX York become new stores

deposit. I in think, growth was the and low, it all Frank, the this cost very low important deposits part almost in of

know As this model. a not model, rate-driven you our is

Frank Schiraldi

think Thanks. the Great. quite it you enough do curious, you on? there as see, could then, you the and you over trend I alluded I has or been growth been? stronger to than as deposit mentioned, out that has too that of has flattish been is months. loan the last mean, opportunity ratio there the continue to loan-to-deposit up this And see can twelve hold am kind that you strong, it growth just actually

Vernon Hill

and If loans the hopeful and loans New jump. trend but I for was have am Manhattan, very of deposit old ratios not our I once XX. we would could in strong days producer team commerce York us that a it we wasn’t up, predicting, switch great and going wouldn’t say But growing. but gets have at tremendous up, coming would New been it are that York a

Frank Schiraldi

didn’t could for not is modeling shutdown the business, any Okay, Frank, in the just in or that here? SBA catch-up then, XQ that just there is great. you – just see as of forward close – And the just terms XQ quick that going do in case given we that government if maybe could, late I maybe a the Frank stuff see question

Frank Cavallaro

first see as pretty – we SBA, the do we us for just to has quarter think normalize deals to get – So see to the gains. tend rates in the [Indiscernible] process generating get million quarter. during a approved first the some time in the approval starts hard tend quarter the But much lots group Frank, it’s $X to do you under SBA in we

Frank Schiraldi

understood. Sure,

guys. thank Okay, you

Frank Cavallaro

you, Frank. Thank

Operator

our from your question Michael from is And Michael, open. comes Instructions] [Operator next line Perito KBW.

Michael Perito

morning. Thank you. Good

Vernon Hill

morning, Mike. Good

Michael Perito

me. Couple start want those about production the I curious, stores growth the in – was about a questions on Somers quarter little detail deposit and the more fourth the could for Point us how Evesboro, and the open? stores to you in give I if from two from new was bit Vernon,

Vernon Hill

of the They Mike. have yet, really in week this the don’t year. we opened last numbers or Well, two

Michael Perito

Okay.

Vernon Hill

left really a store for year the in Frank? XXXX, new right opened that’s they So,

Frank Cavallaro

Correct.

Michael Perito

Okay.

in of mean, safe So, got bump your probably those that then year? ones into that deposit I guys early to other some that is from you it the part this say that some that pushed have seen of stores of

Vernon Hill

Yes.

Michael Perito

strong. a for of balances, maybe growth the in just, just a the little I the that was Obviously, two, margin like sheet, expectation on had seems question York of when what it would coming like, the Okay. lot Frank, or it mean, the but obviously, curious, for balance the seem for will year. come like But there loan quarter seems here? margin good back-end the some production it heavier loan your liquidity am you, then, next And average I be stores some of was momentum. the on New mean, is I near-term

amount yield hope the is there steady side that do hold So, little at think I the of can of that’s on result the on mean, this of curve? kind relief Or that the given just you the coming a look and to some in flatness point? margin you challenge liquidity

Vernon Hill

Before in growth a surprised Frank, average lending what we before answered in even went team store there we deposits. that the loan to proceeds the markets, see but most opened, before our that’s in not place put if growth the wouldn’t is came New York I those Mike, the be on when deposits loan up we

Frank Cavallaro

Mike, increases to in project the predict going as year is around can felt impossible expect that to margin, range pressure Last Fund’s we rates. it the in it’s the was be although the we percent coming right that what at from see, for XXX ended Fed the do. year to we you to it – year, the and

of to index. before, deposit that about talked segment tie our we As base would a

our part of latter increases, salary one and with but two us or we in or year. relief with use benefits fewer rate the – some the Fed Fund maybe So we get

Michael Perito

into point And begin kind mean, have and like guys you Vernon, of that where in the area? just you Okay. update at guys about those us maybe City of talent lending are give you talent have your started you as pool looks prospecting York kind the some conversations what the market? this move you imagine of for an I New

Vernon Hill

of – have first our we in announce be putting this team together teams first have the and we now year. ready right will we quarter to the will Yes

Michael Perito

Okay. Thank it. Appreciate guys. you

Vernon Hill

Thank you, Mike.

Operator

or question sorry am Mike, next comes Caniff. our And from investor. Private your I open. line is Investor, Mike private

Unidentified Analyst

hi, Yes, Vernon. morning, good

Vernon Hill

Good morning.

Unidentified Analyst

I look what might that to five and you since business if through made expect out, the some planning how see? growth comments the about geographies of you do was think what you terms wondering in might, you of years just long-term lines might

Vernon Hill

and not you going we numbers giving same am what we see to we if in me the what and going in not of projecting not are [Indiscernible] but I it. get any not look and the thing happened you capable are Manhattan want in shape you to we idea could when really Mike, there to a is here saying goals curve numbers the long-term predict happen launched past, the of are what to XXXX good of be. and happened But

Unidentified Analyst

you. Thank Okay.

Operator

Instructions] [Operator

Vernon Hill

that’s it. guess, Thank I you all.

Operator

concludes ladies And and you thank participating. you conference. today’s for gentlemen. Thank This

now may disconnect. You

Vernon Hill

you. Thank

Operator

sir. Thank you,

Vernon Hill	Chairman
Frank Cavallaro	EVP & CFO
Harry Madonna	CEO, President & Director
Andrew Logue	President & COO
Frank Schiraldi	Sandler O'Neill
Michael Perito	KBW

Republic First Bancorp (FRBKQ) 28 Jan 192018 Q4 Earnings call transcript