On May 9, 2022, George E. Norcross, III, Gregory B. Braca, Philip A. Norcross, Avery
Conner Capital Trust, a trust organized under the laws of the State of Florida (the Avery Conner Capital Trust), Susan D. Hudson, in her capacity as a Trustee of the Avery Conner Capital Trust, Geoffrey B. Hudson, in his capacity
as a Trustee of the Avery Conner Capital Trust and Rose M. Guida, in her capacity as a Trustee of the Avery Conner Capital Trust, issued the following press release:
Norcross Braca Group Believes Most Recent Republic First Operating Results Show Continued Poor Performance
CAMDEN, NJ: The group led by George E. Norcross, III, Gregory B. Braca and Philip A. Norcross believes the March 31, 2022 operating results
Republic First Bank filed with the Federal Deposit Insurance Corporation (FDIC) show further evidence of the banks poor performance amid growing evidence of dysfunction and paralysis at the banks parent company, Republic First Bancorp,
Inc. (Republic First or the Company) (FRBK).
In the new call report, Republic First Bank disclosed:
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Bank equity decreased by $42 million to $280 million versus the prior quarter, representing a 13%
decline. |
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Net income was down 10% quarter-over-quarter as Return on Average Assets (ROAA) declined to 0.43% in Q1 2022
vs. 0.49% in Q4 2021. Net interest margin was down 6 basis points quarter-over-quarter. |
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Loan volume was down 6% year-over-year. |
Call reports are prepared in accordance with regulatory instructions issued by the Federal Financial Institutions Examination Council (FFIEC) that do not in
all cases follow accounting principles generally accepted in the United States (GAAP). The report is a supervisory and regulatory document, not primarily an accounting document, and may not provide a complete range of financial disclosure about the
Company. It is not audited or filed with the Securities and Exchange Commission. Nevertheless, and given that the Company has not filed its 10-K for full year 2021 or an earnings release or 10-Q for the first quarter of 2022 and has seemingly ceased efforts to prepare such financial disclosures, the banks call report is the only current source of information regarding the Companys financial
condition and results of operations.
In January, when the leaders of the Norcross Braca group announced they had purchased a significant share of
Republic Firsts stock, they called for changes to the Companys leadership in response to the banks poor performance and operating results in recent years. Since that time, there has been public disclosure of deep dysfunction and
the apparent paralysis of the Companys Board of Directors that risk harming shareholders.
The Norcross Braca group believes the true depths of the
problems at Republic First Banks problem may still be unknown as the Company has repeatedly refused to turn over records to the Norcross Braca group as is required under Pennsylvania law. Moreover, as noted above, the Company has in essence
ceased public reporting with no financial update since an earnings release furnished three and a half months ago on January 20th. Thereby leaving shareholders without the full report on calendar year 2021 that would be included in the 10-K, including important disclosures about trends, outlook and risk factors, as well as the compensation and related party information required to be in the Companys proxy statement, and providing
shareholders no information at all about performance to date in 2022 meaning the last management discussion and analysis of the Company available to shareholders relates to the quarter ended on September 30, 2021 and was filed
approximately 6 months ago.
The Norcross Braca group first sent a demand for access to specific Company information, including information about related
party transactions, on February 16, 2022, with a supplemental demand sent on March 7, 2022 and a third communication sent on March 21, 2022 demanding that the Company be fully transparent with its shareholders. At the end of
March, the Norcross Braca group filed a lawsuit to compel Republic First to make available for inspection the requested books and records. That suit is pending in the Philadelphia Court of Common Pleas.
Please visit www.sec.gov [sec.gov] [sec.gov [sec.gov]] to obtain copies of any Schedule 13D, as amended from time to time, and 14A filings by the
group.
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
The Group (as defined below) has filed a preliminary proxy statement with the Securities and Exchange Commission (the SEC) with respect to the
election of directors of Republic First Bancorp, Inc. (the Issuer), which the Group expects will occur at the 2022 annual meeting of shareholders once scheduled by the Issuer (the 2022 Annual Meeting).