PHILADELPHIA, PA — Republic First Bancorp, Inc. (NASDAQ: FRBK, the holding company for Republic First Bank d/b/a Republic Bank, this week reported financial results for the first quarter ended March 31, 2023.
“Our strong community banking brand, ingrained commitment to customers and focus on relationship banking have allowed us to largely maintain steady deposit levels amid a period of uncertainty and volatility in the banking sector,” said President and Chief Executive Officer Thomas X. Geisel. “We are highly focused on executing our strategy to restore profitability, improve capital levels and enhance shareholder value – and are seeing signs of progress as we move through the Company’s legacy headwinds. The results aren’t where we want them to be yet, but I am proud of our colleagues’ commitment to Republic’s customers and their ongoing efforts to weather the current environment and lay the foundation for a successful future.”
Key First Quarter 2023 Results
- Reported loss attributable to common stockholders of $9.7 million, or $0.15 per diluted share, in the first quarter of 2023 included the pre-tax effect of a $3.1 million write-down of an investment in Signature Bank preferred securities, and $5.5 million in legal, professional, and audit fees due to strategic and shareholder matters and as legacy legal and reporting matters are addressed with enhanced processes, procedures and capabilities being established since new members of the leadership team joined the Company on December 22, 2022. Reported loss attributable to common stockholders for the fourth quarter of 2022 was $398,000, or $0.01 per diluted share, and net income available to common stockholders for the first quarter of 2022 was $5.4 million, or $0.08 per diluted share.
- More than 76% of total deposits on March 31, 2023 were FDIC-insured or fully collateralized.
- Even as deposit balances declined 2.7% during the first quarter, the number of deposit relationships with the bank increased by 5.2% in the period. Republic also grew deposit balances between March 31, 2023, and April 30, 2023.
- The loan/deposit ratio of 64.4% remained relatively unchanged during the first quarter of 2023.
- Cash and equivalents grew by 211.7% during the first three months of 2023 to $153.2 million at period end and total available liquidity, inclusive of cash and equivalents, unencumbered securities and borrowing capacity totaled $1.4 billion on March 31,2023.
- The fair value of our available for sale and held to maturity investment portfolio improved $43.9 million, or 9.7%, from December 31, 2022.
“Today’s announcement is a critical milestone in our ongoing efforts to bring Republic current on its quarterly and annual filings with the Securities and Exchange Commission,” said Chief Financial Officer Michael W. Harrington. “We are pleased to provide shareholders with the Company’s results for the first three months of 2023, as well as comparisons to the fourth and first quarters of 2022, on a consolidated, unaudited basis. We’ve assembled a group of experienced financial institution professionals who are working diligently to complete our efforts to bring our financial reporting current as we work to improve profitability and enhance Republic’s liquidity and capital position.”
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