FRBK - Earnings call transcript Q2 2019 | Republic First Bancorp Inc

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Operator

Welcome to the Second Quarter 2019 Earnings Conference Call. My name is Sylvia 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 Executive Madonna, now Officer. would call Harry over Chief I Mr. begin. you Madonna, may

Harry Madonna

Chief and of morning with Operating Cavallaro, go ask the here for ahead go quarter Andrew Chief Frank, and the earnings you Frank to and our Good Officer you second Logue, thank highlights joining through Officer. I’d our Financial us. I'm release.

Frank Cavallaro

second I’m the Harry. time Bancorp, start to that’s this $XXX the morning. billion. the results First you you join million $X.X to taking pleased of for Thank report Inc. Okay. off Thanks, deposits, to Republic with year-over-year, quarter for which to us We'll XX% total grew

stores All of $XX of average growing at new of an average we've Back stores beginning at $XX an growing the our Red a million together deposits Our of Power are year. opened expansion that million since is campaign year. a are

tremendous Xth, in got for our opened by and grand this York off of City. year. opening XX% assets we which which Our of ago at the million two year-over-year billion pleased to XXth recently, our XXth to or have $XXX We a location store opening billion, our weeks XX stores New had start. a $X.X altogether, occurred X.X to to announce That's of total total which first grew represents expect year-over-year. up We're store to and just the XX% loans growth are end

quarter the year. to $X.X of and for of income was this or quarter $XXX,XXX second compared in Net quarter first That's last the million $XXX,XXX the a $X.XX second in share. year

margin New associated the feel York the build suppression out to compression the and cost our to with We market. of of earnings continue due

X.XX%, this and last the second interest which year. of of in in X% margin to net the X.XX% year the The quarter first quarter compares second shrunk quarter to in

yield effects our curve. quarter, we continue seeing, the compression, continued sorry, This experienced curve, as we feel line. the we're has times, feel not I'm on margin, the flat revenue but during at yield created only second -- So flat to

to assets decrease. continue Non-performing

Our points strong XX driven at income a million to non-interest shrunk over in nonperforming pleased a income line. $X mortgage report our points. and of the XX ago basis to Non-interest $X this non-interest by SBA the assets to That's time. to total quarter compared line. income division contributed We're assets year to basis gains million was

ratio in we was and We're Capital capital ratios continue June non-interest was growth be total XX%. to XX, leverage see demand and consistent over deposit bearing, strong. that report to ratio our opening. At balances our X.XX% pleased account

the highlights for any it They’re questions. point, for this the At up open I quarter.

Operator

our comes question And Michael KBW. Perito Instructions] first from [Operator from

Michael Perito

hit had to a few I want on. questions I

got books. Frank, more little I’ve perspective? from it over growth a the City could York two from little maybe weeks. was New know First, just a specifics, give first I in has just an bit really the I expansion early month the what if are actual us indications wondering you the been But only

Frank Cavallaro

you tell two Mike, and in opening customers So July just accounts. the of in the of that two weekend had opening had tremendous We weekend in We've a can $X you coming was weeks. pointed out, occurred been We that success. as deposits. million just hundreds it's grand XX weeks,

how for ground. start So, that really the off has And strong us. see really a that's we're gotten store pleased to

Michael Perito

a that. question I kind broader based guess of then just And off

the raises, really right. with where analyze a with lot question back can cutting half guys about guess bit you I profit to now I to short some a stronger my little this are this rate talk supported of that be customer current the the mean, new I the or curve still will imagine using these to kind the be at driving guess, So stores. interaction altering there any more discussion term it the of and a talk here brand I growth, that growth of can for is the a start that is make of about maybe momentum, point? the mean, year is, Fed there's you of model can And is more brand environment. which level yield growth awareness lot in you I that and underbelly prospects that the by profit the in obviously, of But and has deposit

Frank Cavallaro

to that's we've So earnings. I’d a year, start obviously off and incurring new drag half expenses launch this of our a been been saying by market, first that the on

that open now York, New deposit in we're well. generating Now we're as

to will some addition, margin reduction expansion. by us rate revenue the to -- start in talk bring provide relief and to that the what that. margin There's we come environment or potential evaluate of start to in what will But think come the with and a us. we would happens rates continue So, Fed

seen year, on our the you’ve seeing funds. a when last If end and the increase of times, over rates the raised of year short deposit has we're X Fed the half, the that cost over affects curve

obviously, maintain sure what that account can for Fed scenarios. And were would the we would this a does we to margins happen were a the level, help to anything right if continue to compress, that [indiscernible] us make can to make at evaluate bank. accommodate So we to if decision in continue that profitable to But, there. high continue, project different and

Michael Perito

trend where of the one, lastly, on just rate that the the a in And will then thoughts, Frank, a just rest year? just Any the up step tax quick for had just quarter.

Frank Cavallaro

small tax rate The going biggest the is items. quarter on run income, our federal a rate of in there's Obviously, impact pre-tax be with such some to the the XX%. tax deductible rate

profitability, some when has items deductible the However, down low we that we're the impact. in see

an what effective in to rate, say tax rate as -- the consistent teens I future, XXs. increase more the is we're would a see high in So, seeing normalized we you'll that low profitability

Operator

Schiraldi O'Neill. Frank comes from Sandler question next Our from

Frank Schiraldi

just New you're of terms with start again opening ask breakeven the remind you there. just your to I is open, in what if York then And new generating anticipation at deposits, flagship look on is New in XX growth? store York. what stores if for your branch to I your, targeting and us the million this wanted mean, could just Just in what thoughts

Frank Cavallaro

actual case call, So see. a now, what on seeing believe margin breakeven come we the XX that's to of that still identified million last Obviously, believe the I million. that shifts we're that's now but we target the XX through. right And we if expenses target changes, environment the

already metro per in building in that in the two prototype we seen prototype in $X that question the down the million call just on year We earlier in deposits in then said that glass weeks, New our deposits about this new we've Philadelphia store here, And store, York. your market. that's $XX the average the in see growth that’s million see per we

we a we're that, availability higher to expecting we're that deposit So York, New higher in why growth market. moved and expecting a

Andrew Logue

Frank, Andy. is this And

and me hiring. just the the in about the – between mean, we – late team really started add have just now place we period May, Let I in store, also also of to lending but June they a got we talk

on starting they're to volume on we’re out So the just on and ground the commercial loan so side, the see now loan there side.

Frank Schiraldi

Frank, looking you're to look coming growth out term, next the months but online can and the XX but plug, or then, think think picture of, you would the sort about, is And what So in wondered, branches an lead us imagine for open? mentioned you next that of then the openings? take think XX in when take have that XX back looks near about the as I that? you you -- are over clearly branch along like when environment down. basically going can that expectations always you you are and is Thanks. about -- months, at just profitability if you you month a and profitability, over in or something kind you I as slowing store where be what the going And of the look like, of terms could and it’s step that Does would growth at, enough not sort remind to maybe time pull are process far just regardless they're I of that imagine, already and

Frank Cavallaro

the this call, Frank, on mentioned that's I got So we've lead before. that time. think stores earlier about We we've opened. talked XX about

get XX We expect the to to by end year. the of

their means that obviously, we confident So three have construction. And we're under on status.

development The there's approvals goes can the look a next in. that slow it land year, forward, we or and tremendous permits we down. are be the we cycle as necessary, have we the moves acquisition, that As can ability, amount into aggressive

is yes, zoning, deal, permits to get we're approvals, regulatory we rather to can So, that than I sooner committed later, that think the the answer this slow construction. until if down the local do means asking, approval, a not we all means necessary you're because,

not we we're something locked that So, point. into reach actually until

Frank Schiraldi

Okay, margin. on and then

NIM interest the Just on side, thinking pricing near thinking? the in about some immediately the we the Is the still you in offer repricing guys about Qs, term. a rate that you've to getting cut profile here, risk of and expect your rate up as deposit your benefit sort that talked maybe muni

Frank Cavallaro

way. opposite That's the as expectation half over a other that’s of the just the seen and our year and that last we've gone

a fair of in this in Yes, assessment. change the So, end the environment, expecting curve. that's long think I no

Operator

no have further questions at We time. this

Harry Madonna

Thank you much. very

Frank Cavallaro

for Thank joining you us. We your time. Yeah. appreciate

Operator

concludes Ladies for Thank you today's gentlemen, you. Thank participating. and conference. this

disconnect. may You now

Republic First Bancorp (FRBKQ) 29 Jul 192019 Q2 Earnings call transcript