FRBK Republic First Bancorp Inc

Republic First Bancorp, Inc. (NASDAQ: FRBK), the holding company for Republic Bank, today announced its financial results for the period ended June 30, 2020.

Q2-2020 Financial Highlights

• During the second quarter of 2020 Republic Bank was named as America’s # 1 Bank for Service in a recent national Forbes survey to identify which financial institutions have the most satisfied customers. 
• We originated $682 million in loans under the Paycheck Protection Program (PPP) administered by the SBA providing crucial funding for small business throughout our footprint. Gross origination fees of $22 million were earned through this program which will be recognized as income over the life of the loans. 
• Profitability improved as the Company reported net income of $2.5 million, or $0.04 per share, during the second quarter of 2020 compared to a net loss of $0.6 million, or ($0.01) per share during the first quarter of 2020. 
• Pre-tax pre-provision earnings (PTPP) increased to $4.2 million during the second quarter of 2020 compared to $27 thousand in the first quarter of 2020 and $0.5 million in the second quarter of 2019. 
• On a linked quarter basis, total revenue increased 13% during the second quarter of 2020 while non-interest expense decreased by 2% compared to the first quarter of 2020. Year over year total revenue increased 17% and non-interest expense increased 3% during the quarter ended June 30, 2020 compared to the quarter ended June 30, 2019. 
• Asset quality continues to improve as the ratio of non-performing assets to total assets declined to 0.31% as of June 30, 2020. Only 2% of our loan customers were deferring loan payments as of July 24, 2020. These deferrals relate to approximately 7% of outstanding loan balances excluding PPP loans. 
• Total loans grew $1.0 billion, or 69%, to $2.5 billion as of June 30, 2020 compared to $1.5 billion at June 30, 2019. Excluding the impact of the PPP loan program loans grew $380 million, or 25%, year over year. 
• Total deposits increased by $1.1 billion, or 44%, to $3.6 billion as of June 30, 2020 compared to $2.5 billion as of June 30, 2019. Excluding the impact of the PPP loan program deposits grew $716 million, or 28%, year over year.

Vernon W. Hill, II, Chairman of Republic First Bancorp said:

“In the second quarter ‘The Power of Red is Back’ expansion campaign continued to deliver exceptional service during these unprecedented times. Our stores remained operational throughout the quarter serving customers in any way possible in a safe and efficient manner. Through our participation in the PPP loan program authorized by the CARES Act we were able assist thousands of small businesses by providing critical access to funding to support operations in the midst of an economic shutdown.”

“In recognition of our unwavering commitment to extraordinary customer service and convenience our FANS responded to a recent Forbes survey and Republic was ranked as America’s #1 Bank for Service. The goal of our model is to create FANS NOT CUSTOMERS, who join our brand, remain loyal and refer family and friends.  The results of the Forbes survey not only demonstrates the success of our model, but also shows that we deliver on our commitment to service better that every other bank in the country.”

Republic will launch its new brand campaign as America’s #1 Bank for Service during the third quarter of 2020.

Harry D. Madonna, President and Chief Executive Officer of Republic First Bancorp added:

“Net income during 2019 was negatively impacted by the challenging nature of the interest rate environment and costs required to initiate our expansion into New York City. During the second quarter of 2020 we returned to profitability through the dedication and commitment of every member of the Republic Bank Team to improve earnings. We have consistently stated that it is our goal to deliver best in class service across all delivery channels…..in-store, by phone, online and mobile options....as we strive to create new FANS each and every day. We are focused on meeting that goal in the most efficient manner possible.”

Paycheck Protection Program

During the second quarter the Republic Bank Team turned its attention to the needs of small businesses in our community. The Paycheck Protection Program included in the CARES Act authorized financial institutions to make loans to companies that have been impacted by the devastating economic effects of the coronavirus (COVID-19) pandemic. We responded by quickly developing a process to accept applications for the program not only from our valued small business customers, but from non-customers throughout the community as well.

PPP Loan Program Highlights

Republic Bank recognized the SBA PPP Loan Program as an opportunity to help existing and new small business customers actively participated in the program by accepting applications.

As of June 30, 2020 Republic has:

• Originated $682 million in PPP loans 
• Related to more than 4,800 PPP loan applications 
• More than 50% of the applications received were from small businesses that were not existing customers of Republic Bank, many of which have already switched their primary banking relationship to Republic Bank 
• The average loan size of all PPP loans approved was $140 thousand 
• Gross origination fees of $22 million were earned by Republic which will be recognized as income over the life of the loans 
• Funding for this program was provided through the Federal Reserve PPP Lending Facility, which has resulted in exclusion of the PPP asset balances from the leverage ratio calculation.

As a percentage of existing loan balances outstanding as of March 31, 2020, the $682 million in PPP loans originated by Republic amounted to 36% making us one of the top PPP lenders in the entire country.

Loss Mitigation and Loan Portfolio Analysis

Management has taken a proactive approach to analyze and prepare for the potential challenges to be faced as the effects of the economic shutdown begin to unfold. A detailed analysis of loan concentrations and segments that may represent the areas of highest risk has been prepared. Our commercial lending team has initiated contact with many of our loan customers to discuss the impact that the pandemic has had on their businesses to date and the expected ramifications that may be felt in the future. We have granted payment deferrals for customers that made a request and had an immediate need for assistance.

Management believes exposure in the loan portfolio to the high risk industries most impacted by the current economic conditions is limited. Loans to customers in the accommodations and food services industry (i.e. hotels and restaurants) amount to 7% of the total loans outstanding as of June 30, 2020. Loans to customers involved in the oil and gas industry (refineries) are less than 1% of outstanding loans and credit card receivables are also less than 1% of total loans as of June 30, 2020.

We believe the combination of ongoing communication with our customers, loan payment deferrals, increased focus on risk management practices, and access to government programs such as the PPP Loan Program should help mitigate potential future period losses.

The following table summarizes the number of loan customers that have been granted payment deferrals along with the related loan outstanding balances through the period ended June 30, 2020:

($ in millions)		# of LoanAccounts				% of Total Accts						LoanBalances							% of TotalLoan Balances*
Deferral of Principal Only		251				5%						$	270						14%
Deferral of Principal and Interest		192				4%							145						8%
Total Deferrals		443				9%						$	415						22%
Total Deferrals (as of July 24, 2020)		103				2%						$	124						7%

*Note: PPP loans excluded from total loans when calculating % of total loan balances

As of the date of this release more than 75% of the customers that were granted approval for deferral of loan payments have resumed normal principal and interest payments on their outstanding loan balances in the early stages of the third quarter of 2020. During the month of July 2020, the number of customers that have continued with the deferral of loan payments has declined to 103, or 2% of the total loan customers and the related outstanding loan balances have reduced to $124 million, or 7% of the total loan balances outstanding.

Asset Quality

The Company’s asset quality ratios are highlighted below:

	Three Months Ended
	06/30/20		03/31/20		06/30/19
Non-performing assets / capital and reserves	5	%	6	%	6	%
Non-performing assets / total assets	0.31	%	0.46	%	0.53	%
Quarterly net loan charge-offs / average loans	0.03	%	0.00	%	(0.04	%)
Allowance for loan losses / gross loans	0.43	%	0.54	%	0.53	%
Allowance for loan losses / non-performing loans	87	%	72	%	86	%

The percentage of non-performing assets to total assets decreased to 0.31% at June 30, 2020, compared to 0.53% at June 30, 2019.  The ratio of non-performing assets to capital and reserves decreased to 5% at June 30, 2020 compared to 6% at June 30, 2019 primarily as a result of decreases in non-performing assets over the last 12 months.

Quarterly Trend

Profitability in previous quarters was impacted by the inversion of the yield curve and the Company’s strategic decision to enter a new market during 2019. The Company continues to focus on improvement of its operating leverage. The following table highlights changes to some of the key financial metrics that demonstrate this progress:

			QTD						QTD						QTD						QTD						QTD
			06/30/19						09/30/19						12/31/19						03/31/20						06/30/20
Pre-Tax Pre-Provision Earnings (PTPP)			$	0.5					$	(1.9			)		$	(2.4			)		$	-					$	4.2
% Change in Revenue Qtr-Qtr				10			%			(2			%)			(3			%)			9			%			13			%
% Change in Expense Qtr-Qtr				11			%			7			%			(1			%)			(1			%)			(2			%)

Financial Summary for the Period Ended June 30, 2020

The changes in the balance sheet as of June 30, 2020 were significantly impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, demand deposits and short-term borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit applications for forgiveness to the SBA in the coming months. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended June 30, 2020 can be found in the following table:

				Excluding
	Actual			PPPProgram			Actual			YOY Growth				YOY Growth
($ amounts in millions)	6/30/2020			6/30/2020			6/30/2019			(Including PPP)				(Excluding PPP)
Cash and Cash  Equivalents	$	691		$	506		$	130		$	561	432%		$	376	289%
Investment Securities	942			942			1,062			(120)		(11%)		(120)		(11%)
Loans Held for Sale	26			26			23			3		13%		3		13%
Loans Receivable	2,542			1,889			1,509			1,033		69%		380		25%
Allowance for Loan Losses	(11)			(11)			(8)			(3)		38%		(3)		38%
Net Loans	2,531			1,878			1,501			1,030		69%		377		25%
Premises and Equipment	121			121			105			16		15%		16		15%
Other Assets	123			123			120			3		3%		3		3%
Total Assets	$  4,434			$  3,596			$	2,941		$	1,493	51%		$	655	22%
Non-interest Bearing Deposits	$	1,096		$	696		$	544		$	552	101%		$	152	28%
Interest Bearing Deposits	2,548			2,548			1,984			564		28%		564		28%
Total Deposits	3,644			3,244			2,528			1,116		44%		716		28%
Short-term Borrowings	438			-			69			369		535%		(69)		(100%)
Subordinated Debt	11			11			11			-		0%		-		0%
Other Liabilities	86			86			82			4		5%		4		5%
Total Liabilities	4,179			3,341			2,690			1,489		55%		651		24%
Common Stock and APIC	273			273			271			2		1%		2		1%
Accumulated Deficit	(10)			(10)			(8)			(2)		25%		(2)		25%
Treasury Stock/Def Comp Plan	(4)			(4)			(4)			-		0%		-		0%
Acc Comp Other Inc	(4)			(4)			(8)			4		(50%)		4		(50%)
Total Shareholders' Equity	255			255			251			4		2%		4		2%
Total Liabilities & Shareholders' Equity	$	4,434		$	3,596		$	2,941		$	1,493	51%		$	655	22%

A summary of the income statement for the period ended June 30, 2020 can be found in the following table:

	Three Months Ended											Six Months Ended
	06/30/20				06/30/19				Change			06/30/20				06/30/19				Change
Total Revenue	$	36.3			$	33.3			9	%		$	70.1			$	63.7			10	%
Net Income		2.5				0.4			559	%			1.9				0.8			138	%
Net Income per share	$	0.04			$	0.01			300	%		$	0.03			$	0.01			200	%
Net Interest Margin		2.55	%			2.94	%						2.64	%			2.97	%

• Total assets increased by $1.5 billion, or 51%, to $4.4 billion as of June 30, 2020 compared to $2.9 billion as of June 30, 2019. Excluding the impact of the PPP loan program total assets increased by $655 million, or 22%, as during the twelve month period ended June 30, 2020. 
• We have thirty convenient store locations open today. During the first quarter of 2020 we opened a new store in Northfield, NJ. Construction is ongoing on a site in Bensalem, PA. There are also multiple sites in various stages of development for future store locations. 
• Profitability improved quarter to quarter as we reported net income of $2.5 million, or $0.04 per share, for the three months ended June 30, 2020 compared to a net loss of $0.6 million, or $(0.01) per share for the three months ended March 31, 2020.  We reported net income of $0.4 million, or $0.01 per share, for the three months ended June 30, 2019.  
• The net interest margin decreased by 21 basis points to 2.55% for the three months ended June 30, 2020 compared to 2.76% for the three months ended March 31, 2020. The decline in the margin was driven by the impact of the PPP loan program that were added to the balance sheet during the second quarter, along with the lower interest rate environment as a result of rate reductions by the Federal Reserve Bank. Excluding the impact of the PPP loan program the net interest margin would have been 2.70% for the three months ended June 30, 2020. 
• During the first quarter we entered into a branding agreement with Visa to convert all ATM and debit cards to Visa cards which will provide a number of opportunities to enhance revenue growth in the coming years. In the second quarter we entered into another agreement with Visa to handle the processing of all ATM and debit card transactions. This agreement is expected to reduce the cost associated with the processing of these transactions. 
• The Company’s residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. Loan production during the first half of 2020 was strong despite the impact of the CODID-19 pandemic and the pipeline for the second half of the year looks equally as promising. The Oak Mortgage team has originated more than $500 million in mortgage loans over the last twelve months. 
• The Company’s Total Risk-Based Capital ratio was 12.00% and Tier I Leverage Ratio was 7.58% at June 30, 2020. 
• Book value per common share increased to $4.34 as of June 30, 2020 compared to $4.27 as of June 30, 2019.

Income Statement

The major components of the income statement are as follows (dollars in thousands, except per share data):

	Three Months Ended
	06/30/20			03/31/20				% Change			06/30/19			% Change
Net Interest Income	$	22,427		$	20,754			8	%		$	19,371		16	%
Non-interest Income		8,424			6,545			29	%			7,026		20	%
Total Revenue		30,851			27,299			13	%			26,397		17	%
Provision for Loan Losses		1,000			950			5	%			-		-
Non-interest Expense		26,664			27,272			(2	%)			25,911		3	%
Income (Loss) Before Taxes		3,187			(923	)		445	%			486		556	%
Provision (Benefit) for Taxes		675			(330	)		305	%			105		543	%
Net Income (Loss)		2,512			(593	)		524	%			381		559	%
Net Income (Loss) per Share	$	0.04		$	(0.01	)		500	%		$	0.01		300	%

	Six Months Ended
	06/30/20				06/30/19			% Change
Net Interest Income	$	43,181			$	38,511		12		%
Non-interest Income		14,969				11,971		25		%
Total Revenue		58,150				50,482		15		%
Provision for Loan Losses		1,950				300		550		%
Non-interest Expense		53,936				49,178		10		%
Income Before Taxes		2,264				1,004		125		%
Provision for Taxes		345				197		75		%
Net Income		1,919				807		138		%
Net Income per Share	$	0.03			$	0.01		200		%

The Company reported net income of $2.5 million, or $0.04 per share, for the three month period ended June 30, 2020, compared to net income of $381 thousand, or $0.01 per share, for the three month period ended June 30, 2019. 

Interest income increased by $1.6 million, or 6%, to $27.9 million for the quarter ended June 30, 2020 compared to $26.2 million for the quarter ended June 30, 2019. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the Company’s “Power of Red is Back” expansion strategy. We have also begun to amortize the fees associated with the origination of PPP loans during the second quarter which is reported as interest income. $1.5 million in PPP fees were recorded as income during the quarter ended June 30, 2020 with the remaining balance to be recognized over the life of the loans.

Interest expense decreased by $1.4 million, or 21%, to $5.4 million for the quarter ended June 30, 2020 compared to $6.9 million for the quarter ended June 30, 2019. The decrease in interest expense was primarily driven by a reduction in the cost of deposits as a result of the decrease in the Fed Funds rate during the latter part of the first quarter.

The net interest margin for the three month period ended June 30, 2020 decreased by 39 basis points to 2.55% compared to 2.94% for the three month period ended June 30, 2019. We experienced margin compression throughout 2019 as a result of the flattening of the yield curve. The interest rate on the loans originated under the PPP loan program is 1.00% which caused a decline in the yield on interest earning assets in the second quarter of 2020. In addition, the rate cuts enacted by the Federal Reserve Bank during the first quarter of 2020 has created a lower interest rate environment. The net interest margin excluding the impact of the PPP loan program would have been 2.70%.

Non-interest income increased by $1.4 million, or 20%, to $8.4 million for the three month period ended June 30, 2020, compared to $7.0 million for the three month period ended June 30, 2019. The increase is attributable to gains on the sale of investment securities, higher service fees on deposit accounts which is driven by growth in deposit balances and an increase in the number of deposit accounts, and mortgage banking income driven by mortgage loan originations, partially offset by a decrease in gains on the sale of SBA loans.

Non-interest expense increased by 3%, to $26.7 million during the quarter ended June 30, 2020 compared to $25.9 million during the quarter ended June 30, 2019. The growth in expenses were mainly caused by an increase in occupancy and equipment expenses associated with our growth strategy. Cost control initiatives identified by management have begun to take effect as non-interest expense declined for the third consecutive quarter.

On a linked quarter basis, total revenue increased by 13% during the second quarter of 2020 while non-interest expense declined by 2%. Year over year total revenue increased by 17% and non-interest expense increased by 3% during the second quarter of 2020 compared to the second quarter of 2019.

Deposits

Deposits by type of account are as follows (dollars in thousands):

Description	06/30/20			06/30/19		%Change			03/31/20		%Change
Demand noninterest-bearing	$	1,095,782		$	544,406	101	%		$	676,482	62	%
Demand interest-bearing		1,435,198			1,072,415	34	%			1,276,816	12	%
Money market and savings		902,528			719,075	26	%			768,550	17	%
Certificates of deposit		210,446			192,081	10	%			222,631	(5	%)
Total deposits	$	3,643,954		$	2,527,977	44	%		$	2,944,479	24	%

Deposits increased to $3.6 billion at June 30, 2020 compared to $2.5 billion at June 30, 2019. This increase is partially attributed to our growth strategy to increase the number of stores and expand the reach of our banking model which focuses on high levels of customer service and convenience and drives the gathering of low-cost, core deposits. We recognized strong growth in demand deposit balances, including an increase in non-interest bearing demand deposits of 101%, year over year as a result of the successful execution of our strategy. The increase in demand deposits during the second quarter is also a result of our participation in the PPP loan program.  When these loans were closed the funds were deposited into Republic Bank checking accounts. These deposits are expected to decline as the borrowers spend the funds on qualified expenses under the program.

Lending

Loans by type are as follows (dollars in thousands):

Description	06/30/20		%of Total		06/30/19		% of Total		03/31/20		% ofTotal
Commercial and industrial	$	224,504	9	%	$	189,632	13	%	$	241,754	13	%
Owner occupied real estate		434,422	17	%		381,852	25	%		436,499	23	%
Commercial real estate		664,605	26	%		553,644	37	%		668,462	36	%
Construction and land develop		150,157	6	%		111,474	7	%		144,215	8	%
Residential mortgage		313,287	12	%		173,963	12	%		287,425	15	%
Paycheck protection program (net)		653,593	26	%		-	-	%		-	-	%
Consumer and other		101,680	4	%		98,155	6	%		103,682	5	%
Gross loans	$	2,542,248	100	%	$	1,508,720	100	%	$	1,882,037	100	%

Gross loans increased by $1.0 billion, or 69%, to $2.5 billion at June 30, 2020 compared to $1.5 billion at June 30, 2019 primarily related to PPP loan originations in the current quarter. In addition, we continue to see results from the continued success with the relationship banking model which has driven a steady flow in quality loan demand over the last twelve months. Excluding the addition of the PPP loans during the second quarter of 2020, loans still grew $380 million, or 25%, when compared to the balance as of June 30, 2019. We experienced strong growth across all loan categories.

Capital

The Company’s capital ratios at June 30, 2020 were as follows:

	Actual06/30/20Bancorp	Actual06/30/20Bank	RegulatoryGuidelines“Well Capitalized”
Leverage Ratio	7.58%	7.29%	5.00%
Common Equity Ratio	11.01%	11.08%	6.50%
Tier 1 Risk Based Capital	11.51%	11.08%	8.00%
Total Risk Based Capital	12.00%	11.57%	10.00%
Tangible Common Equity	5.65%	5.58%	n/a

Total shareholders’ equity increased to $255 million at June 30, 2020 compared to $251 million at June 30, 2019. Book value per common share increased to $4.34 at June 30, 2020 compared to $4.27 per share at June 30, 2019.

Analyst and Investor Call

An analyst and investor call will be held on the following date and time:

Date:	July 27, 2020
Time:	11:00am (EST)
From the U.S. dial:	(800) 774-6070 [US Toll Free] or
	(630) 691-2753 [US Toll]
Participant Pin:	7859 277#
An operator will assist you in joining the call.

About Republic Bank

Republic Bank, a subsidiary of Republic First Bancorp, Inc., is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). The Bank provides diversified financial products through its thirty stores located in Greater Philadelphia, Southern New Jersey and New York City.  Republic Bank stores are open 7 days a week, 361 days a year, with extended lobby and drive-thru hours providing customers with some of the most convenient hours compared to any bank in its market.  The Bank offers free checking, free coin counting, ATM/Debit cards issued on the spot and access to more than 55,000 surcharge free ATMs worldwide via the Allpoint Network. The Bank also offers a wide range of residential mortgage products through its mortgage division which does business under the name of Oak Mortgage Company. For more information about Republic Bank, visit www.myrepublicbank.com.

Forward Looking Statements

The Company may from time to time make written or oral “forward-looking statements”, including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein, are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements.  For example, risks and uncertainties can arise with changes in: general economic conditions, including turmoil in the financial markets and related efforts of government agencies to stabilize the financial system; the adequacy of our allowance for loan losses and our methodology for determining such allowance; adverse changes in our loan portfolio and credit risk-related losses and expenses; concentrations within our loan portfolio, including our exposure to commercial real estate loans, and to our primary service area; changes in interest rates; business conditions in the financial services industry, including competitive pressure among financial services companies, new service and product offerings by competitors, price pressures and similar items; deposit flows; loan demand; the regulatory environment, including evolving banking industry standards, changes in legislation or regulation; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; our securities portfolio and the valuation of our securities; accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements; rapidly changing technology; litigation liabilities, including costs, expenses, settlements and judgments; the effects of health emergencies, including the spread of infectious diseases and pandemics; and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services.  You should carefully review the risk factors described in the Form 10-K for the year ended December 31, 2019, the Form 10-Q for the quarter ended March 31, 2020 and other documents the Company files from time to time with the Securities and Exchange Commission. The words “would be,” “could be,” “should be,” “probability,” “risk,” “target,” “objective,” “may,” “will,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect” and similar expressions or variations on such expressions are intended to identify forward-looking statements. All such statements are made in good faith by the Company pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company, except as may be required by applicable law or regulations.

Source: Republic First Bancorp, Inc.

Contact: Frank A. Cavallaro, CFO(215) 735-4422

Republic First Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)
			June 30,				March 31,				June 30,
(dollars in thousands, except per share amounts)				2020				2020				2019
ASSETS
	Cash and due from banks		$	36,786			$	32,581			$	38,770
	Interest-bearing deposits and federal funds sold			654,458				23,936				90,744
		Total cash and cash equivalents		691,244				56,517				129,514
	Securities - Available for sale			382,221				497,511				338,286
	Securities - Held to maturity			556,159				611,914				718,534
	Restricted stock			3,789				2,746				5,130
		Total investment securities		942,169				1,112,171				1,061,950
	Loans held for sale			26,126				16,820				23,412
	Loans receivable			2,542,248				1,882,037				1,508,720
	Allowance for loan losses			(11,040	)			(10,217	)			(8,056	)
		Net loans		2,531,208				1,871,820				1,500,664
	Premises and equipment			121,149				119,893				105,311
	Other real estate owned			1,144				1,144				6,406
	Other assets			121,603				122,051				113,729
	Total Assets		$	4,434,643			$	3,300,416			$	2,940,986
LIABILITIES
	Non-interest bearing deposits		$	1,095,782			$	676,482			$	544,406
	Interest bearing deposits			2,548,172				2,267,997				1,983,571
		Total deposits		3,643,954				2,944,479				2,527,977
	Short-term borrowings			438,478				-				68,979
	Subordinated debt			11,268				11,267				11,262
	Other liabilities			85,765				92,554				81,410
	Total Liabilities			4,179,465				3,048,300				2,689,628
SHAREHOLDERS' EQUITY
	Common stock - $0.01 par value			594				594				594
	Additional paid-in capital			273,118				272,639				270,789
	Accumulated deficit			(10,297	)			(12,809	)			(7,909	)
	Treasury stock at cost			(3,725	)			(3,725	)			(3,725	)
	Stock held by deferred compensation plan			(183	)			(183	)			(183	)
	Accumulated other comprehensive loss			(4,329	)			(4,400	)			(8,208	)
	Total Shareholders' Equity			255,178				252,116				251,358
	Total Liabilities and Shareholders' Equity		$	4,434,643			$	3,300,416			$	2,940,986

Republic First Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)
			Three Months Ended										Six Months Ended
			June 30,			March 31,				June 30,			June 30,			June 30,
(in thousands, except per share amounts)				2020			2020				2019			2020			2019
INTEREST INCOME
	Interest and fees on loans		$	22,737		$	20,173			$	18,569		$	42,910		$	36,369
	Interest and dividends on investment securities			5,072			6,821				7,158			11,893			14,541
	Interest on other interest earning assets			50			289				518			339			854
	Total interest income			27,859			27,283				26,245			55,142			51,764
INTEREST EXPENSE
	Interest on deposits			5,320			6,425				6,695			11,745			12,709
	Interest on borrowed funds			112			104				179			216			544
	Total interest expense			5,432			6,529				6,874			11,961			13,253
	Net interest income			22,427			20,754				19,371			43,181			38,511
	Provision for loan losses			1,000			950				-			1,950			300
	Net interest income after provision for loan losses			21,427			19,804				19,371			41,231			38,211
NON-INTEREST INCOME
	Service fees on deposit accounts			2,328			2,064				1,848			4,392			3,460
	Mortgage banking income			3,389			2,458				3,031			5,847			5,251
	Gain on sale of SBA loans			269			649				1,147			918			1,649
	Gain on sale of investment securities			1,640			841				261			2,481			583
	Other non-interest income			798			533				739			1,331			1,028
	Total non-interest income			8,424			6,545				7,026			14,969			11,971
NON-INTEREST EXPENSE
	Salaries and employee benefits			13,177			13,381				13,705			26,558			26,064
	Occupancy and equipment			5,554			5,297				4,221			10,851			8,236
	Legal and professional fees			1,009			930				1,058			1,939			1,765
	Foreclosed real estate			75			282				517			357			854
	Regulatory assessments and related fees			675			630				421			1,305			842
	Other operating expenses			6,174			6,752				5,989			12,926			11,417
	Total non-interest expense			26,664			27,272				25,911			53,936			49,178
Income (loss) before provision (benefit) for income taxes				3,187			(923	)			486			2,264			1,004
Provision (benefit) for income taxes				675			(330	)			105			345			197
Net income (loss)			$	2,512		$	(593	)		$	381		$	1,919		$	807
Net Income (Loss) per Common Share
	Basic		$	0.04		$	(0.01	)		$	0.01		$	0.03		$	0.01
	Diluted		$	0.04		$	(0.01	)		$	0.01		$	0.03		$	0.01
Average Common Shares Outstanding
	Basic			58,851			58,848				58,841			58,849			58,823
	Diluted			58,883			58,848				59,401			58,911			59,501

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
		For the three months ended									For the three months ended									For the three months ended
(dollars in thousands)		June 30, 2020									March 31, 2020									June 30, 2019
					Interest									Interest									Interest
		Average			Income/			Yield/			Average			Income/			Yield/			Average			Income/			Yield/
		Balance			Expense			Rate			Balance			Expense			Rate			Balance			Expense			Rate
Interest-earning assets:
Federal funds sold and other
interest-earning assets		$	198,345		$	50		0.10	%		$	81,339		$	289		1.43	%		$	85,920		$	518		2.42	%
Securities			1,033,560			5,077		1.96	%			1,156,504			6,826		2.36	%			1,067,185			7,184		2.69	%
Loans receivable			2,335,500			22,884		3.94	%			1,808,382			20,319		4.52	%			1,509,177			18,681		4.96	%
Total interest-earning assets			3,567,405			28,011		3.16	%			3,046,225			27,434		3.62	%			2,662,282			26,383		3.97	%
Other assets			266,178									260,829									217,685
Total assets		$	3,833,583								$	3,307,054								$	2,879,967
Interest-bearing liabilities:
Demand non interest-bearing		$	984,771								$	644,601								$	525,336
Demand interest-bearing			1,397,790			2,856		0.82	%			1,337,646			3,421		1.03	%			1,144,783			4,206		1.47	%
Money market & savings			858,782			1,431		0.67	%			752,510			1,783		0.95	%			697,279			1,628		0.94	%
Time deposits			208,838			1,033		1.99	%			226,185			1,221		2.17	%			176,750			861		1.95	%
Total deposits			3,450,181			5,320		0.62	%			2,960,942			6,425		0.87	%			2,544,148			6,695		1.06	%
Total interest-bearing deposits			2,465,410			5,320		0.87	%			2,316,341			6,425		1.12	%			2,018,812			6,695		1.33	%
Other borrowings			45,474			112		0.99	%			11,952			104		3.50	%			19,864			179		3.61	%
Total interest-bearing liabilities			2,510,884			5,432		0.87	%			2,328,293			6,529		1.13	%			2,038,676			6,874		1.35	%
Total deposits and
other borrowings			3,495,655			5,432		0.62	%			2,972,894			6,529		0.88	%			2,564,012			6,874		1.08	%
Non interest-bearing liabilities			83,884									84,211									66,780
Shareholders' equity			254,044									249,949									249,175
Total liabilities and
shareholders' equity		$	3,833,583								$	3,307,054								$	2,879,967
Net interest income					$	22,579								$	20,905								$	19,509
Net interest spread								2.29	%								2.49	%								2.62	%
Net interest margin								2.55	%								2.76	%								2.94	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
	For the six months ended									For the six months ended
(dollars in thousands)	June 30, 2020									June 30, 2019
				Interest									Interest
	Average			Income/			Yield/			Average			Income/			Yield/
	Balance			Expense			Rate			Balance			Expense			Rate
Interest-earning assets:
Federal funds sold and other
interest-earning assets	$	139,842		$	339		0.49	%		$	70,729		$	854		2.43	%
Securities		1,095,032			11,903		2.17	%			1,076,496			14,604		2.71	%
Loans receivable		2,071,941			43,203		4.19	%			1,489,020			36,592		4.96	%
Total interest-earning assets		3,306,815			55,445		3.37	%			2,636,245			52,050		3.98	%
Other assets		263,504									204,344
Total assets	$	3,570,319								$	2,840,589
Interest-bearing liabilities:
Demand non interest-bearing	$	814,686								$	518,790
Demand interest-bearing		1,367,718			6,277		0.92	%			1,129,356			8,144		1.45	%
Money market & savings		805,646			3,214		0.80	%			686,453			3,080		0.90	%
Time deposits		217,512			2,254		2.08	%			165,354			1,485		1.81	%
Total deposits		3,205,562			11,745		0.74	%			2,499,953			12,709		1.03	%
Total interest-bearing deposits		2,390,876			11,745		0.99	%			1,981,163			12,709		1.29	%
Other borrowings		28,713			216		1.51	%			33,341			544		3.29	%
Total interest-bearing liabilities		2,419,589			11,961		0.99	%			2,014,504			13,253		1.33	%
Total deposits and
other borrowings		3,234,275			11,961		0.74	%			2,533,294			13,253		1.05	%
Non interest-bearing liabilities		84,050									59,505
Shareholders' equity		251,994									247,790
Total liabilities and
shareholders' equity	$	3,570,319								$	2,840,589
Net interest income				$	43,484								$	38,797
Net interest spread							2.38	%								2.65	%
Net interest margin							2.64	%								2.97	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Summary of Allowance for Loan Losses and Other Related Data
(unaudited)
													Year
					Three months ended								ended							Six months ended
	June 30,				March 31,				June 30,				Dec 31				June 30,				June 30,
(dollars in thousands)		2020				2020				2019				2019				2020				2019
Balance at beginning of period	$	10,217			$	9,266			$	7,900			$	8,615			$	9,266			$	8,615
Provision charged to operating expense		1,000				950				-				1,905				1,950				300
		11,217				10,216				7,900				10,520				11,216				8,915
Recoveries on loans charged-off:
Commercial		14				17				154				219				31				155
Consumer		1				6				3				9				7				4
Total recoveries		15				23				157				228				38				159
Loans charged-off:
Commercial		(149	)			-				(1	)			(1,356	)			(149	)			(930	)
Consumer		(43	)			(22	)			-				(126	)			(65	)			(88	)
Total charged-off		(192	)			(22	)			(1	)			(1,482	)			(214	)			(1,018	)
Net (charge-offs) recoveries		(177	)			1				156				(1,254	)			(176	)			(859	)
Balance at end of period	$	11,040			$	10,217			$	8,056			$	9,266			$	11,040			$	8,056
Net (charge-offs) recoveries as a percentage of
average loans outstanding		0.03	%			(0.00	%)			(0.04	%)			0.08	%			0.02	%			0.12	%
Allowance for loan losses as a percentage
of period-end loans		0.43	%			0.54	%			0.53	%			0.53	%			0.43	%			0.53	%

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands)		2020				2020				2019				2019				2019
Non-accrual loans:
Commercial real estate	$	10,747			$	12,060			$	10,569			$	10,180			$	7,545
Consumer and other		1,970				2,125				1,844				1,743				1,777
Total non-accrual loans		12,717				14,185				12,413				11,923				9,322
Loans past due 90 days or more
and still accruing		-				-				-				129				-
Total non-performing loans		12,717				14,185				12,413				12,052				9,322
Other real estate owned		1,144				1,144				1,730				6,653				6,406
Total non-performing assets	$	13,861			$	15,329			$	14,143			$	18,705			$	15,728
Non-performing loans to total loans		0.50	%			0.75	%			0.71	%			0.77	%			0.62	%
Non-performing assets to total assets		0.31	%			0.46	%			0.42	%			0.61	%			0.53	%
Non-performing loan coverage		86.81	%			72.03	%			74.65	%			70.25	%			86.42	%
Allowance for loan losses as a percentage
of total period-end loans		0.43	%			0.54	%			0.53	%			0.54	%			0.43	%
Non-performing assets / capital plus
allowance for loan losses		5.21	%			5.84	%			5.47	%			7.21	%			6.05	%