FRBK - Earnings call transcript Q3 2019 | Republic First Bancorp Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Third Quarter 2019 Earnings Conference Call. My name is Daryl 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 Hill. now will call Vernon over I Mr. Hill, begin. you may

Vernon Hill

you today and thank I good my joining me me; excuse officer I'll over Frank now assume hand Go Cavallaro, of Daryl, Chief the ahead, you, quarter Financial Andy you Harry [ph] Officer. Chief Madonna; the Republic, it morning With -- have pardon, Chief Thank Operating three -- and for Logue, Executive call the call. guess. Frank. are Frank I and all press release to QX

Frank Cavallaro

opened each third we're We've $XXX deposits growing XXth the from our during $XX average report So located in this XX% stores at located first overall in year, Xth, to our average our our New to pleased next York an at in store We've at quarter open a we've period. year-over-year. deposit results [ph] opened the New $XX store over our prototype store Xrd. for York of buildings that City and we and million the billion a or Street year. new during quarter, quarter. are We've XXst growth $X.X expect of grown fourth is while had The and million that third million

$XXX where see significant we to grew $X.X refinancing. been environment challenging billion, million XX% loans year-over-year or has payoffs Our a and that despite growth and

[ph] at fleets pipeline So strong of growth. we continue see to our loan a

the ago net $X We $X.XX recorded share, since $X.X Total stores today. XX year loss compared got XX. time. year or growth at in ago. total a reached That's of over assets billion a million quarter, $XXX loss million as million $X.X a September our this of opened to is year-to-date, net We've

incurring result as out market. margin a New the We deposits. higher in we're not of York Fed will or addition, curve, [indiscernible] as cost result our continue rates the the and the margin of to see to compression cost a flat the to from cost in funds compress of inverted in yield the a that and anticipate continue We decline build some of

Vernon Hill

York, to will ahead, go be business And New -- Frank. getting

Frank Cavallaro

Yes, the open we of growth. we're the revenue stores result New we're of only deposit the year, that were during now production now starting as first-half occurring expenses, and is new volume York -- to seeing growth a

Vernon Hill

want else? ahead? you Harry, to Anybody go

Harry Madonna

open up let's floor, Hi, the please.

Operator

[Operation instructions]

Vernon Hill

Nobody ask to wants anything?

Operator

well, we Mr. Oh, have Schiraldi. do Schiraldi. Frank question a from

You may ask question. your

Frank Schiraldi

morning. Thank you. Good

ask in are end the the the what wondering that I be that Just of about quarter? could -- to wanted saw in or branch, branch growth share in have where -- those it deposits, that terms doesn't deposits you of the currently, growth opened, am the to deposits you of as sort in specifically guys of total in if branch Manhattan

Vernon Hill

Vernon. Yes, hi, Frank;

are to store. We very release deposits been shortly pleased between York with per New [indiscernible], deposits we've in growth in our going first branch but the our in year-end

you As ago all more they you've heard have do. stores the the say me before, years better

stores our in So and we we're New more in see here. down definitely York, growth seeing would

but did more means So [indiscernible] are in far in expanded I good store. when growth we a I each think means markets more XXXX, start, to off stores we New York in as

Frank Schiraldi

second could costs already you of percent just mean, in Okay. of related sort are store, the just of costs And then, result? wanted in Manhattan I of this if embedded quarter's the terms terms modeling, what in to

Vernon Hill

before expense have you're no store but before not sure that changed. have the Well, [indiscernible] the you number, exact are in, the markets stores, rules new you remember matter I'm which open. building give When that can to we rent Frank, you

normal we open expenses in have people, a went, of have five rent have the hired don't happened commercial we we think but loan team, what's new we support. commercial to that recruiting training months I loan where we've then [ph] cost expense up with a the there, up people, or four people, all market had for also hiring particularly before we you So stores, and people

So one the with on branch, loan support it. just the side it's not goes it's that

Frank Schiraldi

then guys on just your model, about on just lot for And profitability here? bit return were timing I your a talk Okay. little finally, thoughts into you the if -- a you realize to a but could investing thoughts

Vernon Hill

Frank. ahead, Go

Frank Cavallaro

different a by were of the the and money we York lending. the don't market even begin for income from making guidance, on first expenses predict, would time say but we unusual new in to We we don't way, expenses give start-up that New should the at some Frank, offset XXXX, be

Frank Schiraldi

Okay.

your how there's contraction of and growth profitability in change thinking has how on quickly any growing, the rate? in you want terms to store to I'm if there openings, fast So terms no guys just all guys you or near-term you change are -- you how of at thoughts wondering did your know, grow is --

Frank Cavallaro

Well, year. we're at in store we our Philadelphia, and in being here guess ready it markets that our built that openings open be say metropolitan will to current but now will our announced, and already reduce are to haven't I XXXX, new plans those early and two next are stores

market. in to York Our stores have at plan is the New least two

yet. We to on sites work haven't begun those

Frank Schiraldi

Thank you. great. Okay,

Frank Cavallaro

Frank. you, Thank

Operator

you Perito, And our question. from next Perito, Mr. may comes your ask Michael question

Michael Perito

to performance was less loans of wondering Thank in in and the New City kind get Good York deposit as through both the and if of region, it's kind pricing if lending I New the you deposits morning. performed it door of could more has maybe just thus region? about the expected, far or kind customers or York and you. costly talk been

Vernon Hill

with store. We've there a of one for only been right. couple months All

better of somewhat in in are Manhattan, Metro limited and As on on Frank me commerce is just thing now when market. are in less that that expanded, generally, our I we cost yields telling right than they Philly. found deposits same time found loans are

New margin time, better the that over I'm Metro market. the So, hopeful in York will be

Michael Perito

Okay.

say months York New fair which growth, optimistic the that on by City So by the underway, -- expansion room driven was growth, that getting couple the are to a time? of sheet over for months be to of that balance a you margin that pretty it's guys partly driven solid obviously there's couple

Vernon Hill

found building that's what York, in we I and we and New multiple were Yes, through went years.

was have generally, we we found for built So us what in that's I and few when that the true we're in XXXX, months seeing here. beginning

Michael Perito

you updated some thanks. toughened that now, right a and obviously bit capital little towards and guys or little any environment tough a we're is environment that margin into capital, story but in kind know and bit, the strong of has And end the a flips, this Helpful, levered I thoughts then, year profitability given growth, you're we point just move and where pipelines, the hopefully kind XXXX? and as of at the the about abates growth seeing of of is

Vernon Hill

to raise capital don't need certainly We any year. this

our have look of to next We for growth at rates year.

We have lots raise of to capital. ways

no [ph] debt up, We speak Mike. to have

capital all not we're raise determined raise form. capital, capital, going we're to not haven't we saying saying, going to So not we're if and what have we're raise and in to we

Michael Perito

your and it stock your market preference -- type on cetera? opposed fair Got true, depending the to to that outlook, it where or that today instrument preferred is where that it, kind or the of outlook say growth not comment, as the debt is would et and be on necessarily is

Vernon Hill

timing on depends on at it one shareholder time, is our Yes, the number but the list. value

going do the including lots we're to we to timing. when So ways to explore of need and it, do it,

of twice did I Mike, might running remember, when converts, we we what might was I the do. commerce, another list we option in might You and that's think, put

Michael Perito

And guys step-up quarter side just see you the quarter -- of had came down, down modestly. for the I surprised strong would it me, Helpful. last thought quick and mortgage I the with you one with a environment maybe on but was then that little one there, rate a last kind just moving banking

Just any move the mortgage general pipeline here? continue down outlook rates and as to on potentially thoughts

Vernon Hill

ahead, Go Andy.

Andy Logue

the was our Mike, been residential -- portfolio even [indiscernible] it's strong. in Actually it's highest pipeline the pipeline.

Vernon Hill

else? Anything Okay?

Michael Perito

it. I Yes, got you, it. guys. Thank No, it. appreciate that's

Vernon Hill

And Daryl? Michael. Thank you,

Operator

It's Misener have [ph]. ahead, do another question. we And Go Brian Brian.

Unidentified Analyst

Hi, guys.

rate about Thank think was but actually it was about with by well. answered environment, it you. expansion talked the I future the of means Sorry, [indiscernible] pretty capital Mike, in

Vernon Hill

Sure, you. thank

Operator

Instructions] [Operator

Vernon Hill

Cheers. hear Thank next in quarter. probably I all. our anything you Hopefully can

Operator

have more right, questions. we no do All and

So, to want you the end call?

Vernon Hill

Yes, that'd be fine. time. Thank you. for Thanks your

Operator

concludes gentlemen, you, conference. you participating. this ladies today's and thank Thank And for

may You disconnect. all

Republic First Bancorp (FRBKQ) 28 Oct 192019 Q3 Earnings call transcript