FRBK - Earnings call transcript Q2 2021 | Republic First Bancorp Inc

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Operator

Welcome to the Second Quarter 2021 Earnings Conference Call. My name is Adrian, and I’ll 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, this conference is being recorded. call Vernon the turn now over Hill. to I’ll Hill, you begin. may Vernon

Vernon Hill

of morning Logue, me Bank. Good you. you. President to Republic Andy Thank Cavallaro; each With Frank is, of CFO,

it press a had quarter in then the of great through go floor. Power I'll we'll So open to QX. the Red release,

up year. the For $X.XX, income second the X.X was over quarter quarter or million XXX% of last

growth XXX% last was six million or revenue that's months year. share of half income XX strong. over the first For a the was The $X.XX

We grew, have we as said in deposits on the The controlled cost me last a Frank – quarter. XX-month here basis help

Frank Cavallaro

XX%. $XXX or million,

Vernon Hill

stores And this haven't converted the if our XX first counting it were ones the growth was yet, was this million the XX those. in growth loans store half the per Frank, million PPP in core of you per year. including deposit stores on important when branch. only the we new store was in all add add

Frank Cavallaro

you exclude XX% to Yes, or our loans billion. million, the growth, from if $XXX X.X grew PPP loans loan

the to of downs continue see loans. and the payoffs pay We PPP

we when we presented these So extracted numbers. that

Vernon Hill

lot made A fed by we still lot development we're clients last the accounts new is year, our seeing loans PPP of and the new a from of program. business PPP

remains Asset quality great.

only non-performing slightly borrowing is one Frank, I customer And to this we X.XX. had point Our right, declines if out to you, deferring.

Frank Cavallaro

That's correct.

Vernon Hill

loans shows XX part XX%, XX%. you onto grew while deposits first X% year-to-year it quarter, just was I'm and growth page, grew loans the the it loans PPP grew in and the Okay. but for the second deposits is of assets, actually assets

six – only line ahead, non-interest also is the months idea non-interest two jaws top-line for substantially the Frank, grew the go same than we non-interest quarter, expense focused the our the And side, more and grew We're top On XX%. expense. for of top growing the had page look income on XX%, the grew on XX%. PPP only XX% expense grew this line where which

Frank Cavallaro

loans. the two, a on us update PPP the Yes. We top the of round total to country this loans million PPP our release, $XXX wanted PPP did to date forgiven SBA back. nearly the loans loans of have the To-date of total, through in In and after compare almost lenders one portfolio. you if by just entire the billion dollars making in paid we been those

than outstanding future amortize fees in these balances So million the half businesses of to many of were periods were still Republic round more in from during them in on PPP their there. that have got the we primary we as and remaining recognize at the we and continue will time, we of customers since. that first switched to $XX not relationship and the have past said collect We loans the applications

Vernon Hill

on the of second in the X.XX. three, improved the Going by was decline part of down funds. -- Page the to points six margin months It a cost Frank? XX Right, primarily board's for

Frank Cavallaro

driver months. main six the That's for

Vernon Hill

our deposits. are always Frank we and this City. stores core cost one very at and growth has a about of to have produces model Our in open about funds. store Ocean New year mortgage. model. ahead very go That been one open high they [indiscernible] Jersey low we -- Two Deptford,

Frank Cavallaro

volumes team new million team. out mortgage purchases, mix over high $XXX It's for of more the period Mortgage see continues has the than in refinancings, XX a to of good produce the for mortgage this a loans home to record and that's originated well continue last as but as group. months, the we XX-month strong

Vernon Hill

highlight. the per quarter, $X.XX Go as want Frank at compared to anything ended common value on to grows it ahead, And X.XX. page, quarter each our book share this you next

Frank Cavallaro

page next detail three-month gets income period. just more for the statement into the The

As Vernon XX.X leverage increased driver June operating a the for XX. mentioned, in period big ended million million. increased income The income $X.X Net is to interest three-month to the net we improvement there.

seeing getting the We growth but margin some PPP, earning month assets increased to compared period, coming continue the And as recognized that June in last will the to in sheet. we the interest we're balance fees for itself some three to to related XXX. in amortization through quarters. some grow is There the or compared but work to are there out noise XXX movement PPP

Vernon Hill

same period. the a numbers And month for six

Frank Cavallaro

expense. after rate the six Yes, June a greater ended overall XXX% the was trends, revenue It’s compare year. income the share. net six month million, last similar non-interest The interest you XX to of months $X.XX a $XX continue increase, than tax we at it period a for if to improve or

Vernon Hill

You compares stronger six that type the can year. months grew expense million on last non-interest getting for of only on months of stronger. first Page in six is this see power month we of for And Deposit power top earned to only line year. momentum this and million X.X The chart, XX% grew the jaws Frank. six XX And our XX%. six,

Frank Cavallaro

growth XX% grew accounts highlighted, the quarter-to-quarter demand one by is we growing highest as year-over-year as grew year-over-year. well. deposits non-interest-bearing XX% of we We that percentages We said saw

and the loan program. count continue We effects relationships get continued we from to new of to the see PPP business open

Vernon Hill

Page on is seven, Frank. breakdown loan The

Frank Cavallaro

In the year-over-year, a the put table loans. XX%. subtotal grew you PPP in excluding loan to show table, we Loans growth loan

this double-digit that's XX, with June consecutive loan XX for is June testament quarters to compare a last us year this growth, year, which real in loan you If environment.

of XXX loans. that's as of over XXX to million down wind had down to million June of XX, XXXX. last continue PPP We see XX the June we year, the

Vernon Hill

Okay.

me, got go cold, pardon ahead. Asset I quality,

Frank Cavallaro

Yes.

monitor Asset quality it continue closely. we to strong, remains

points. We As we come the at basis X.XX total all for total no allowance the excluding PPP to loan effects out non-performing charge of assets quarter. environment, of the had COVID during to X.XX%. the has shrunk loans, is losses assets offs And

Vernon Hill

the The loans non-performing for allowance XXX%.

Frank Cavallaro

Yes.

Vernon Hill

ratios Anything Page capital The to about eight. that? say are Okay. on want you

Frank Cavallaro

capital an last X.XX, at keep stock year-over-year we the by raise capital that Overall, the to remains offering eye preferred a August, capital did. level, leverage total on was that. continue we did the we That's that in XX.XX. strong driven growth The

Vernon Hill

Anything else?

Frank Cavallaro

are for highlights quarter. Those the the

Vernon Hill

Andy, anything?

AndyLogue

No.

Vernon Hill

All away, Fire the floor. guys. We'll open right.

Operator

Thank you.

begin question from will [Operator We the first Frank from question-and-answer now comes Sadler. Schiraldi Piper our And session. Instructions]

Frank Schiraldi

You the mentioned you growth mentioned well. the Vernon, and of the for branches stores in growth terms in rates as pretty deposits, strong new is existing

VernonHill

you're right. Yes,

Frank Schiraldi

wondering then, ago? you build branches if York density would about in or particularly New XX determine what as need being about of required you you in for And out geography how You of talk you important growth. the need versus what that just in talked in could branch geography? terms the given City new a And interested XX years advertisers, kind

Vernon Hill

Yes.

to as in that, online, the of build end Commerce. had producing. probably see many but Okay. Commerce stores. That's stores because question. a going you can The markets at the XXX our the offices as at need Today, good half out we definitely you you of We're are digital, XXX. And

they're the where how the York I maybe Commerce New Westchester Commerce, looking but can't them and had amazing New growths the put at quite but York in bringing New metro, generally, probably of older of I'm as market growing. somewhat Jersey. stronger to in half York As the XXX, are Northern we roughly with in Metro less. that, market, happy We're branch with And But in new to the New tell, Long had stores these gets pointed brand is half as Republic what market. out, you Island,

Frank Schiraldi

branches year? opened this a When do of kind do back, you'd getting couple New in in think And you think the Jersey putting to there? City? annual you rate foreseeing when up And what's in of in the get York back terms you or of you sort growing

Vernon Hill

York We now. Manhattan have two and in New City

to has as it. per all will two we rate trouble year, think the I know, the be not is would love new York much see branch going so do don't so a to New I I build somewhere And in that this you growing stores, keeping growth will up next guys, with four branch, metro next do, year. much me in or but us three it, as But stores you're is Our five of those to we're to like, hold market. capital guess

Frank Schiraldi

color. for great. the Okay, Thanks

VernonHill

Commerce this. the more, number. in Frank, expenses we under compressed, per you gross building pointed control. get But But, never have we I've would put we build store, that like margin out let week. even one but to giant And per at like a our peak to was a store perspective, just Commerce you this of know, growth is at being the had store, me with the

Frank Schiraldi

a And City the then really in terms York New you growth, good talked about loan providing opportunity for growth. of

by much how of if this driven those of is York, in talk geography? at you and growth of New could Just size point loan that the the terms loans wondering being in balances core about

Vernon Hill

think outstanding is Yes. York, I What's loans New Manhattan. Island strong Even presence, smaller though we on and XXX the that? in have branch New like a we or have York probably group a XXX Long great. something

maybe for of growth our a half driving it's disproportionate bank. loan share So the

this Metro see New just the LA. the Not I it over in growth saw we -- of high. bank more at I'm see pricing will York, New Republic, we at time. Metro but York of loan what Bank in drive And only a time, get growth demand there, think going to disproportionately it loan Loan this and better you'll is Commerce, Commerce for long than being did Metro in at a up is the

driven out end of to see being growth but breaking Metro market. I out at our York start maybe that New loan of the will expect the year, We the

Frank Schiraldi

Got you.

can wonder item if Frank about But guess of a rate I down deposits questions, good quarter, quick could couple be you as I fees well. strong obviously, deposits a grow run were a talk quarter. might was if very first grow, Just expect line linked that to on I I'd what modeling it as just service

VernonHill

Got XX. grid is This it.

it, Frank. have it. We We got

Frank Cavallaro

normalized seeing there cards signed that convert deal some that and upfront So quarter, I to more quarter. the in think into year what second last announced money and is first run with went We a in that rate the was ATM our we received Visa we we first a all that told you're debit quarter.

So what more a of normal. second now is we're we on fully operating And think the we're in quarter, converted.

Vernon Hill

So is run quarter the normal second rate. your

Frank Cavallaro

Correct.

Vernon Hill

fees, management York you cash more up As bigger, New higher. everything York, get rather and drive you will New accounts actual get as

Of course, the side. offset that's expense by higher

have balance we out. those to So things

Frank Schiraldi

you. Got

in? know have in XX Okay. in that left lastly, Frank, on just PPP. NII through then, you taken fees brought through second And the fees in to quarter? the I income the be What were million were

Frank Cavallaro

About quarter? second X.X million the in

Vernon Hill

Really? Is low? that

Frank Cavallaro

Yes.

Vernon Hill

Remember, backed SBA up. was the

start to a written forgiveness So starting while. and the second first of down it to wind what applications through. We're slow. the for come they've got for there the see really round other round waiting for to we're

see we'll more latter maybe then So year, of the early next year. this part acceleration and

Operator

And question Instructions] [Operator from next KBW. your Mike Perito comes from

Mike Perito

balance I what's math ask know open there's said could definitely Frank's But think I mean, dynamic? really pressure one being that of drive wanted to How about received. the I and just a guys under capital you that, and well updated are or little the momentum sheet the maybe a the earlier, really question, you to unchanged? strong. stores growth of the I on because ratios to more Maybe, of more you is growth do us? brands piggybacking just but obviously, but refresh question. Vernon kind guess, something of

how that math that XX months kind doesn't burden like about maybe flush growth just the kind behind a can of not capital to you of continue making plus ago. while just wondering sure if out Just and this become was, think that engine, it or

VernonHill

Yes.

better well I all to what You than out, And do. Mike. as as balance things those do you have I know,

go the saying growth capital, going need have you first we decide at we're the to of Commerce. we're raise capital, deposit into just need start which time, as different the the grow And have fast. there But time not the Obviously, stores level these you higher York gross we at in need real markets, with high. branch you Commerce, store now, factoring in, the because And over to suburban lower we breakeven question. and stores markets markets, suburban growth. which your did in going is the a the and rent, so the Manhattan, found new is stores Manhattan, because you up rates you we're to keep new now so new all, are without some deposits rents is New So the but in in breakeven is up growth then, like

for pay big you Mike. bucks So that's all those out. the have balance things And what to they me

Mike Perito

Thanks. it. Got

I that. mean, follow And so your just up for would the I of expectation capital year? there's remainder to that external this guess no on be needs

Vernon Hill

We're in making next curve, of do capital. that much XX more flat to I'm with some the not sure, or months, But yield And to do the we're say growth out. making problem we balancing we're need not for not as need going willing even you're capital. should more curve. we though normal part is the money, the

open growth this same, be Frank? capital requirements, in didn't the last new So almost if stores, we wouldn't quarter would the any it?

Frank Cavallaro

that Correct. The we till quarter. late one store open in open did didn't the very

So driven the growth by is stores. still being existing the

Vernon Hill

days it. And did deposits advanced. when the we Commerce of It's Mike, really we the store old models, growth were in looked much I at and the that drives per obviously, more

Mike Perito

to that was next my going And question. Yes. be

four out mean, first the onset decent been right But for solid, you in money really just As are amount pandemic. bond still guys of the now park I a the since at PPP, think if mean, it's it's not done been, in digits a has book. we to quarters double that and having of cash quarter growth loan I

I there you here? think really ratio loan the that sounds can mean, just do so, pipelines deposit we I solid. is soon? from guess much hopeful for It you happen way mean, maybe deposit I Or growth too more of anytime are like to just succinct that are momentum asking, what inflecting? to And get loan Frank, NIM expect

Frank Cavallaro

where yield it shape mean, it curve. right depends difficult stay is least I of say, to now. it's at on Yes. expecting We're to the the

take out they not PPP it. and as the those the of you interest pay loans expecting down. fees But If impact we're on

Vernon Hill

Margin right? in the up, second quarter went

Frank Cavallaro

of did go year you quarter quarter If this last compare of second with second the up. it year the

Mike Perito

ahead, Vernon. go Sorry,

Vernon Hill

What funds York lending over itself. we Commerce found in the New book at is

the that to in more we're more surprise market, somewhat grow. of that us. here. And was So loans And same thing the seeing that you make a deposits

making -- store, loans, So we think size see a talk Manhattan we about -- you're market, can you you'll the -- consumer per when commercial but generally it's about bigger growth smooth middle over that small business, to not talk path, in tend but business, when fund get the they you and when we particularly themselves.

Mike Perito

ballpark just about thinking just way. was sure x that you where running going is to something have clarify make NIM And with yes, I to mid it is, PPP it, Frank, is the want XXXs right today, I'm that the

Frank Cavallaro

I it's a pull those say higher than if bit I'd would numbers you say that. little out,

Vernon Hill

X.X take Mike, it it tell without will out, you PPP. we should be around X.X,

Operator

turn for Instructions] further And I'll call back remark. [Operator we no over final questions. have the

Vernon Hill

Call right, you something call. after if All need Cheers. thank Thank you. Bye-bye. all. the me Frank you or

Operator

This ladies you, for participating. call. conference and you Thank today's gentlemen. Thank concludes

may You now disconnect.

Republic First Bancorp (FRBKQ) 23 Jul 212021 Q2 Earnings call transcript