Financial Performance

Overview

• Net income was $59.4 million for Q1 2024, down $6.4 million or 9.7% from Q1 2023. Earnings per share was $0.36, down $0.03.

Revenue

• Net interest income fell 4.0% to $206.9 million due to higher funding costs, partially offset by loan growth.
• Net interest margin declined 21 basis points to 3.32%.
• Non-interest income rose 10.5% to $57.1 million, led by wealth management, commercial banking, mortgage banking and consumer banking.

Expenses

• Non-interest expense increased 11.3% to $177.6 million. Excluding merger costs, expenses rose 7.3%.
• Higher expenses were driven by salaries, technology investments, occupancy, FDIC insurance and outside services.

Credit Quality

• Non-performing assets were 0.57% of total assets, up slightly from 0.56%.
• Net charge-offs were 0.16% of average loans, improved from 0.27%.
  

Balance Sheet

Loans

• Average loans grew 4.4% annualized, driven by commercial and residential mortgage lending.

Deposits

• Average deposits increased 3.9% annualized. Growth was led by time deposits, brokered deposits and money market accounts.

Capital

• Capital levels remained strong, with Common Equity Tier 1 ratio at 10.3%.

Republic First Transaction

• The Corporation acquired $2.4 billion in assets and assumed $2.3 billion in liabilities from Republic First Bank in an FDIC-assisted transaction.

• The transaction expands the Corporation’s presence in the Philadelphia and Southern New Jersey markets.

• Key risks include retaining customers, managing interest-earning assets, controlling expenses and integrating operations.

Outlook

• The Corporation intends to use the capital raised from its recent common stock offering to support growth opportunities from the Republic First transaction.

• Management remains focused on generating organic growth, improving efficiency and maintaining strong credit quality.