FRBK Republic First Bancorp Inc

Republic First Bancorp, Inc. (NASDAQ: FRBK) (the “Company” or “Republic”), the holding company for Republic First Bank d/b/a Republic Bank (the “Bank”), today 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.”

Additional Business Updates

• Today’s announcement marks the first time Republic has published a quarterly financial results news release since January 2022, over one year ago.
• On March 10, 2023, the Company announced a planned $125 million capital raise with the participation of affiliates of seasoned bank investor Castle Creek Capital and affiliates of existing shareholder Cohen Private Ventures, LLC.
• On April 25, 2023, as a measure of prudent oversight and to preserve capital and liquidity, the Company’s Board of Directors determined to suspend the payment of dividends on its Perpetual Non-Cumulative, Convertible Preferred Stock and elected to defer payments of interest on its two issuances of outstanding Floating Rate Junior Subordinated Debt Securities Due 2037. The Board intends to re-evaluate the payment of such dividends and interest on a quarterly basis.
• Republic enters May 2023 with newly added reciprocal deposit programs to expand its offering for current and potential customers while providing the Bank with an additional channel for core deposit gathering.
• The Company plans to implement several next steps of the strategic plan in the second quarter of 2023, including meaningful business realignment and efficiency initiatives designed to improve profitability and refocus the Company on its core businesses.
• Feedback from employees led to The Philadelphia Inquirer naming Republic a 2023 Top Workplace in the first quarter.
• Republic recently received a 2023 Community Impact Award, from South Jersey Biz Magazine, which recognized the Bank for initiatives like Money Zone, its free financial literacy program for schools, as well as its participation in the Future Bankers & Financial Professionals camp and support for local nonprofit partners.

Results of Operations, Sequential Comparison

• Net loss attributable to common stockholders was $9.7 million, or $0.15 per diluted share, in the first quarter of 2023, compared to $398,000, or $0.01 per diluted share in the fourth quarter of 2022. Compared to the linked quarter, net interest income decreased $8.9 million, non-interest income decreased $3.6 million, and non-interest expense increased $782,000, respectively. These items more than offset declines in the provision for credit losses and provision for income taxes of $321,000 and $3.7 million, respectively.
• Net interest income was $24.0 million in the first quarter, decreasing $8.9 million from $32.9 million in the linked quarter, as higher yields and average balances of interest-earning assets were more than offset by higher funding costs and increased average balances of interest-bearing liabilities. Net interest margin was 1.62% in the first quarter, down 63 basis points from the linked quarter, reflecting pressure from higher interest rates, the inverted yield curve and intense industry-wide competition for deposits in the first three months of 2023.Total interest income was $52.2 million in the first quarter, increasing $2.2 million from the linked quarter. Average total interest-earning assets were $5.99 billion in the first quarter, increasing $75.6 million from the linked quarter. The average yield on total interest-earning assets was 3.55% for the first quarter, increasing 15 basis points from the linked quarter.Interest and fees earned on loans totaled $36.2 million in the first quarter, increasing $1.5 million from the linked quarter. Average loans receivable were $3.14 billion in the first quarter, increasing $52.3 million from the linked quarter. The average yield on loans receivable was 4.69% for the first quarter, increasing 17 basis points from the linked quarter.Interest and dividends earned on investment securities totaled $15.4 million in the first quarter, increasing $292,000 from the linked quarter. Average securities and restricted stock was $2.76 billion in the first quarter, decreasing $15.4 million from the linked quarter. The average yield on investment securities and restricted stock was 2.27% for the first quarter, increasing eight basis points from the linked quarter.Total interest expense was $28.2 million in the first quarter, increasing $11.2 million from the linked quarter. Average total interest-bearing liabilities for the first quarter were $4.54 billion, increasing $206.6 million from the linked quarter. The average rate paid on interest-bearing liabilities was 2.52% for the first quarter, increasing 95 basis points from the linked quarter.Interest expense on deposits totaled $18.6 million in the first quarter, increasing $6.4 million from the linked quarter, the result of higher market rates driving demand from customers for better rates paid on deposits. Average interest-bearing deposits for the first quarter were $3.77 billion, decreasing $85.7 million from the linked quarter. The average rate paid on interest-bearing deposits was 2.00% for the first quarter, increasing 73 basis points from the linked quarter.Interest expense on borrowings totaled $9.6 million in the first quarter, increasing $4.8 million from the linked quarter. Average borrowings for the first quarter were $771.1 million, increasing $292.4 million from the linked quarter. The average rate paid on borrowings was 5.05% for the first quarter, increasing 101 basis points from the linked quarter.

• Non-interest income was $1.3 million in the first quarter, down $3.6 million from the linked quarter. The decline was primarily due to a $3.1 million write-down of the Company’s investment in preferred securities issued by Signature Bank. The change in non-interest income from the linked quarter also reflected decreases of $595,000, $275,000 and $164,000 in loan and servicing fees, mortgage banking income and gain on sales of SBA loans, respectively.
• Non-interest expense was $37.2 million in the first quarter, increasing $782,000 from the linked quarter. Non-interest expense included $5.5 million of legal, audit, and other professional fees that were incurred as the Company continued to address strategic and shareholder matters and legacy legal and reporting matters in the first three months of 2023.
• Provision for credit losses was $433,000 in the first quarter, increasing the allowance for credit losses $448,000 from the linked quarter, primarily due to continuing deteriorating forecasted economic conditions impacting management's expectations of future credit losses, and partly due to loan growth.
• The Company recorded an income tax benefit of $3.3 million in the first quarter, a $3.7 million reduction from the linked quarter.

Results of Operations, Year-over-Year Comparison

• Net loss attributable to common stockholders was $9.7 million, or $0.15 per diluted share, in the first quarter of 2023, compared to net income available to common stockholders of $5.4 million, or $0.08 per diluted share in the first quarter of 2022. Compared to the year-ago period, net interest income decreased $12.1 million, non-interest income decreased $3.1 million, and non-interest expense increased $5.0 million. These items more than offset a decline in the provision for income taxes of $5.5 million.
• Net interest income was $24.0 million in the first quarter, decreasing $12.1 million from $36.1 million in the year-ago period, as higher yields and average balances of interest earning assets were more than offset by higher funding costs and higher average balance of interest-bearing liabilities. Net interest margin was 1.62% in the first quarter, down 107 basis points from the year-ago period, reflecting pressure from higher interest rates, the inverted yield curve and intense industry-wide competition for deposits in the first three months of 2023.Total interest income was $52.2 million in the first quarter, increasing $12.7 million from the year-ago period. Average total interest-earning assets were $5.99 billion in the first quarter, increasing $515.6 million from the year-ago period. The average yield on total interest-earning assets was 3.55% for the first quarter, increasing 62 basis points from the year-ago period.Interest and fees earned on loans and leases totaled $36.2 million in the first quarter, increasing $10.1 million from the year-ago period. Average loans receivable were $3.14 billion in the first quarter, increasing $621.9 million from the year-ago period. The average yield on loans receivable was 4.69% for the first quarter, increasing 47 basis points from the year-ago period.Interest and dividends earned on investment securities totaled $15.4 million in the first quarter, increasing $2.1 million from the year-ago period. Average securities and restricted stock were $2.76 billion in the first quarter, decreasing $53.1 million from the year-ago period. The average yield on investment securities and restricted stock was 2.27% for the first quarter, increasing 34 basis points from the year-ago period.Total interest expense was $28.2 million in the first quarter, increasing $24.9 million from the year-ago period. Average total deposits and other borrowings for the first quarter were $4.54 billion, increasing $639.1 million from the year-ago period. The average rate paid on interest-bearing liabilities was 2.52% for the first quarter, increasing 218 basis points from the year-ago period.Interest expense on borrowings totaled $9.6 million in the first quarter, increasing $9.5 million from the year-ago period. Average borrowings for the first quarter were $771.1 million, increasing $759.1 million from the year-ago period. The average rate paid on borrowings was 5.05% for the first quarter, increasing 311 basis points from the year-ago period.Interest expense on deposits totaled $18.6 million in the first quarter, increasing $15.3 million from the year-ago period. Average interest-bearing deposits for the first quarter were $3.77 billion, decreasing $120.1 million from the year-ago period. The average rate paid on interest-bearing deposits was 2.00% for the first quarter, increasing 164 basis points from the year-ago period.

• Non-interest income was $1.3 million in the first quarter, down $3.1 million from the year ago period. The decline was primarily due to a $3.1 million write-down of the Company’s investment in preferred securities issued by Signature Bank. The change in non-interest income from the year-ago period also reflected decreases of $904,000, $337,000 and $319,000 in mortgage banking income gain on sales of SBA loans and loan and servicing fees, respectively.
• Non-interest expense was $37.2 million in the first quarter, an increase of $5.0 million from the year-ago period. Non-interest expense included $5.5 million in legal, audit, and other professional fees as the Company continued to address strategic and shareholder matters and legacy legal and reporting matters in the first three months of 2023.
• Provision for credit losses was $443,000 in the first quarter, up $515,000 from a credit to provision in the year-ago period, due to continuing deteriorating forecasted economic conditions impacting management's expectations of future credit losses.
• The Company recorded an income tax benefit of $3.3 million in the first quarter, a $5.5 million reduction from the year-ago period.

Financial Condition, March 31, 2023

• Total assets were $6.16 billion on March 31, 2023, increasing $108.5 million from December 31, 2022, primarily driven by a $104.1 million increase in cash and equivalents due to excess cash from other borrowings.
• Available for sale investment securities were $899.2 million on March 31, 2023. Unrealized losses on available for sale investment securities were $154.3 million as of March 31, 2023, an improvement of $17.8 million from December 31, 2022.
• Held to maturity investment securities were $1.63 billion on March 31, 2023. Unrealized losses on held to maturity investment securities were $253.8 million as of March 31, 2023, an improvement of $26.1 million from December 31, 2022.
• Total loans were $3.14 billion on March 31, 2023 increasing $6.2 million from December 31, 2022, as growth in construction and land development loans and owner-occupied real estate was offset by declines in balances in commercial and industrial loans and other lending categories.
• The allowance for credit losses was $26.5 million on March 31, 2023 increasing $448,000 from December 31, 2022. The change in allowance for credit losses was primarily attributed to the degradation in forecasted economic conditions impacting management’s expectation of future credit losses. The Company also had net recoveries of $8,000 for the quarter ended March 31, 2023.
• Total deposits were $4.88 billion on March 31, 2023, decreasing $134.7 million from December 31, 2022. The decrease reflected $79.2 million, $125.5 million and $83.2 million reductions in non-interest bearing demand deposits, interest-bearing demand deposits and money market and savings accounts, respectively, more than offsetting a $153.2 million increase in time deposits. More than 76% of total deposits on March 31, 2023 were FDIC insured or fully collateralized. Deposits, net of fully collateralized public funds, were $3.19 billion on March 31, 2023, of which 60% were FDIC insured.
• Borrowings of $981.3 million on March 31, 2023, which included $645 million from the Federal Home Loan Bank, $325 million from the Federal Reserve and $11.3 million of subordinated debt, increased $242.8 million from December 31, 2022.
• The capital ratios for the Bank and the Company, as of March 31, 2023, as shown in the attached tables, indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered “well capitalized.”

About Republic First Bancorp, Inc.

Republic First Bancorp, Inc. is the holding company for Republic First Bank, which does business under the name Republic Bank. Republic Bank is a full-service, state-chartered commercial bank, whose deposits are insured up to the applicable limits by the Federal Deposit Insurance Corporation. The Bank offers a variety of banking services to individuals and businesses throughout the Greater Philadelphia, Southern New Jersey, and New York City markets through its offices and branch locations in Philadelphia, Montgomery, Delaware and Bucks in Pennsylvania, Camden, Burlington, Atlantic and Gloucester, New Jersey and New York County. 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

This press release may contain “forward-looking statements,” which 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 impact of the COVID-19 pandemic on our business and results of operation; geopolitical conflict and inflationary pressures including Federal Reserve interest rate hikes; the effect of potential recessionary conditions; the adequacy of our allowance for credit 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; inflation; changes to our primary service area; changes in interest rates; our ability to identify, negotiate, secure and develop new branch locations and renew, modify, or terminate leases or dispose of properties for existing branch locations effectively; 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; our securities portfolio and the valuation of our securities; change in accounting principles, policies and guidelines as well as estimates and assumptions used in the preparation of our financial statements; rapidly changing technology; our ability to regain compliance with Nasdaq Listing Rules 5250(c)(1) and 5620(a); the failure to maintain current technologies; failure to attract or retain key employees; our ability to access cost-effective funding; fluctuations in real estate values; litigation liabilities, including costs, expenses, settlements and judgments; 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 Annual Report on Form 10-K for the year ended December 31, 2021, and other documents we file 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 us pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. We do 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 us, except as may be required by applicable law or regulations.

Contact:Longacre Square PartnersJoe Germani / David Reingoldfrbk@longacresquare.com

Republic First Bancorp, Inc.
Summary Financial Information (UNAUDITED)
(dollars in thousands, except per share data)
	As of or for the Three Months Ended
Consolidated Balance Sheet (selected items)	March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Cash and cash equivalents	$	153,234			$	49,167			$	52,452			$	86,156			$	101,457
Investment securities		2,529,469				2,527,335				2,561,897				2,711,757				2,765,965
Equity securities		13				6,019				6,627				6,793				7,888
Restricted stock		34,327				34,245				21,907				15,528				3,135
Loans receivable		3,139,418				3,132,967				3,060,852				2,750,683				2,557,167
Allowance for credit losses		(26,520	)			(26,072	)			(25,255	)			(20,997	)			(23,156	)
Premises and equipment, net		134,553				134,747				130,902				130,498				129,607
Other assets		192,306				189,911				189,872				175,187				158,402
Total assets	$	6,156,800			$	6,048,319			$	5,999,254			$	5,855,605			$	5,700,465
Deposits - interest-bearing	$	3,667,977			$	3,723,543			$	3,833,524			$	3,787,367			$	3,905,782
Deposits - non-interest-bearing		1,210,262				1,289,420				1,418,060				1,425,659				1,404,454
Other borrowings		970,000				727,200				442,500				292,500				-
Subordinated debt		11,286				11,284				11,282				11,281				11,279
Other liabilities		100,480				104,123				104,430				105,657				103,214
Total liabilities		5,960,005				5,855,570				5,809,796				5,622,464				5,424,729
Total shareholders' equity		196,795				192,749				189,458				233,141				275,736
Total liabilities and shareholders' equity	$	6,156,800			$	6,048,319			$	5,999,254			$	5,855,605			$	5,700,465
Average Balance Sheet (selected items)
Federal funds sold and other interest earning assets	$	84,228			$	45,580			$	46,073			$	96,632			$	137,533
Investment securities and restricted stock		2,763,904				2,779,268				2,837,891				2,899,551				2,816,956
Loans receivable		3,138,633				3,086,339				2,894,473				2,625,902				2,516,719
Total interest-earning assets		5,986,765				5,911,187				5,778,437				5,622,085				5,471,208
Other assets		102,259				92,565				142,619				162,382				221,835
Total assets	$	6,089,024			$	6,003,752			$	5,921,056			$	5,784,467			$	5,693,043
Total interest-bearing deposits	$	3,768,095			$	3,853,821			$	3,830,688			$	2,419,113			$	3,888,181
Other borrowings		771,076				478,730				345,758				69,224				11,938
Total interest-bearing liabilities		4,539,171				4,332,551				4,176,446				4,026,262				3,900,119
Total non-interest bearing deposits		1,248,426				1,380,744				1,398,086				1,400,644				1,378,400
Non-interest bearing other liabilities		106,506				106,010				119,131				105,816				110,416
Shareholders' equity		194,921				184,447				227,393				251,745				304,108
Total liabilities and shareholders' equity	$	6,089,024			$	6,003,752			$	5,921,056			$	5,784,467			$	5,693,043
Consolidated Income Statement (selected items)
Net interest income	$	23,993			$	32,935			$	37,999			$	38,400			$	36,140
Provision for credit losses		443				764				3,998				830				(72	)
Noninterest income		1,269				4,892				5,742				4,873				4,347
Noninterest expense		37,215				36,433				37,714				37,250				32,195
Net income before tax		(12,396	)			630				2,029				5,193				8,364
Provision for income taxes		(3,320	)			384				476				1,200				2,129
Net (loss) income	$	(9,076	)		$	246			$	1,553			$	3,993			$	6,235
Preferred stock dividends		644				644				644				644				866
Net (loss) income attributable to common shareholders	$	(9,720	)		$	(398	)		$	909			$	3,349			$	5,369
Basic earnings per common share	$	(0.15	)		$	(0.01	)		$	0.01			$	0.05			$	0.09
Diluted earnings per common share	$	(0.15	)		$	(0.01	)		$	0.01			$	0.05			$	0.08
Profitability Indicators
Return on average assets (annualized)		-0.64	%			-0.03	%			0.06	%			0.23	%			0.38	%
Return on average equity (annualized)		-19.95	%			-0.86	%			1.60	%			5.32	%			7.06	%
Tax-equivalent net interest margin		1.62	%			2.25	%			2.63	%			2.76	%			2.69	%
Efficiency ratio		147.32	%			96.31	%			86.22	%			86.08	%			79.52	%
Share Data
Closing share price	$	1.36			$	2.15			$	2.83			$	3.81			$	5.16
Book value per common share	$	2.53			$	2.47			$	2.42			$	3.11			$	3.78
Price / book value		54.0	%			87.0	%			117.0	%			123.0	%			137.0	%
Weighted average diluted shares outstanding		76,126,478				76,106,537				76,109,691				76,545,952				75,180,067
Shares outstanding, end of period		63,867,092				63,814,001				63,787,064				63,755,960				63,739,566
Capital Ratios
Republic First Bancorp, Inc ("Company")
Total risk based capital		10.42	%			10.62	%
Tier one risk based capital		9.67	%			9.89	%
CET 1 risk based capital		8.36	%			8.59	%
Tier one leveraged capital		5.45	%			5.64	%
Republic First Bank ("Republic")
Total risk based capital		10.19	%			10.34	%
Tier one risk based capital		9.43	%			9.61	%
CET 1 risk based capital		9.43	%			9.61	%
Tier one leveraged capital		5.30	%			5.47	%
Asset Quality Indicators
Net loan charge-offs (recoveries) ("NCO"s)	$	(8	)		$	(37	)		$	(359	)		$	3,007			$	50
Loans risk-rated special mention		877				881				887				232				234
Total risk-rated substandard		21,269				22,059				19,347				20,274				18,292
Total criticized loans	$	22,146			$	22,940			$	20,234			$	20,506			$	18,526
Nonperforming loans ("NPL"s)	$	18,592			$	17,191			$	15,450			$	14,540			$	12,426
Other real estate owned ("OREO")		554				875				876				230				360
Total nonperforming assets ("NPA"s)	$	19,146			$	18,066			$	16,326			$	14,770			$	12,786
Loans 30 to 59 days past due	$	6,160			$	6,354			$	11,795			$	13,602			$	7,588
Loans 60 to 89 days past due		123				1,178				3,307				2				2,825
Loans 90 or more days past due		18,592				17,191				15,450				14,540				12,424
Total delinquent loans	$	24,875			$	24,723			$	30,552			$	28,144			$	22,837
Delinquent loans to total loans		0.79	%			0.79	%			1.00	%			1.02	%			0.89	%
NCOs to average loans (annualized)		0.00	%			0.00	%			-0.05	%			0.46	%			0.01	%
NPLs to total loans		0.59	%			0.55	%			0.50	%			0.53	%			0.49	%
NPAs to total loans		0.61	%			0.58	%			0.53	%			0.54	%			0.50	%
NPAs to total assets		0.31	%			0.30	%			0.27	%			0.25	%			0.22	%
ACL to NPLs		143	%			152	%			163	%			144	%			186	%
ACL to classified loans		125	%			118	%			131	%			104	%			127	%
ACL to total loans		0.84	%			0.83	%			0.83	%			0.76	%			0.91	%

Republic First Bancorp, Inc.
Consolidating Balance Sheet (UNAUDITED)
(dollars in thousands, except per share data)
	March 31,				December 31,				September 30,				June 30,				March 31,
		2023				2022				2022				2022				2022
ASSETS:
Cash and Due From Banks	$	11,778			$	13,736			$	15,670			$	16,423			$	15,231
Interest bearing deposits with banks		141,456				35,431				36,782				69,733				86,226
Cash and cash equivalents		153,234				49,167				52,452				86,156				101,457
Investment securities AFS, at fair value		899,225				897,980				999,521				1,111,672				1,116,109
Investment securities HTM, at amortized cost		1,630,244				1,629,355				1,562,376				1,600,085				1,649,856
Equity securities		13				6,019				6,627				6,793				7,888
Restricted Stock, at cost		34,327				34,245				21,907				15,528				3,135
Mortgage loans held for sale, at fair value		2,294				3,590				6,038				5,670				4,653
Other loans held for sale		9,412				4,249				4,785				4,759				4,488
Loans receivable (net of ACL)		3,112,898				3,106,895				3,035,597				2,729,686				2,534,011
Premises and equipment, net		134,553				134,747				130,902				130,498				129,607
Other real estate owned, net		554				875				876				230				360
Accrued interest receivable		21,275				19,748				18,783				16,381				16,014
Operating lease right-of-use asset		70,099				71,453				73,135				75,271				76,454
Other assets		88,672				89,996				86,255				72,876				56,433
TOTAL ASSETS	$	6,156,800			$	6,048,319			$	5,999,254			$	5,855,605			$	5,700,465
LIABILITIES & SHAREHOLDERS' EQUITY:
Liabilities:
Deposits
Demand (Non-interest Bearing)	$	1,210,262			$	1,289,420			$	1,418,060			$	1,425,659			$	1,404,454
Demand (Interest Bearing)		2,344,256				2,469,761				2,497,761				2,294,931				2,352,205
Money market and savings		1,066,786				1,149,995				1,217,580				1,342,883				1,363,484
Time deposits		256,935				103,787				118,183				149,553				190,093
Total deposits		4,878,239				5,012,963				5,251,584				5,213,026				5,310,236
Other borrowings		970,000				727,200				442,500				292,500				-
Subordinated debt		11,286				11,284				11,282				11,281				11,279
Accrued interest payable		1,405				650				401				498				563
Operating lease liability		76,071				77,031				79,620				81,700				82,824
Other liabilities		23,004				26,442				24,409				23,459				19,827
TOTAL LIABILITIES:		5,960,005				5,855,570				5,809,796				5,622,464				5,424,729
Preferred Stock		15				15				15				15				15
Common Stock		645				643				643				643				643
Additional paid in capital		326,955				326,931				326,549				326,031				325,479
Retained earnings		9,484				19,203				19,601				18,692				15,343
Treasury Stock at cost		(3,725	)			(3,725	)			(3,725	)			(3,725	)			(3,725	)
Stock held by deferred compensation plan		-				-				(183	)			(183	)			(183	)
Accumulated other comprehensive loss		(136,579	)			(150,318	)			(153,442	)			(108,332	)			(61,836	)
Total Shareholders' Equity		196,795				192,749				189,458				233,141				275,736
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY:	$	6,156,800			$	6,048,319			$	5,999,254			$	5,855,605			$	5,700,465

Republic First Bancorp, Inc.
Supplemental Balance Sheet Information (UNAUDITED)
(dollars in thousands, except for share data)
	As of or For the Three Months Ended
Total loans:	March 31, 2023				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022
Commercial real estate	$	895,403			$	918,545			$	915,494			$	827,720			$	771,549
Construction and land development		303,549				256,528				226,627				212,436				234,217
Commercial and industrial		288,920				301,410				303,518				310,783				289,547
Owner occupied real estate		569,706				565,327				557,496				552,723				534,710
Consumer and other		86,972				91,186				95,618				81,140				78,374
Residential mortgage		992,113				996,707				954,679				739,768				590,337
Paycheck protection program		5,628				6,412				10,787				29,824				63,334
Total loans receivable		3,142,291				3,136,115				3,064,219				2,754,394				2,562,068
Deferred costs (fees)		(2,873	)			(3,148	)			(3,367	)			(3,711	)			(4,901	)
Allowance for credit losses		(26,520	)			(26,072	)			(25,255	)			(20,997	)			(23,156	)
Net loans receivable	$	3,112,898			$	3,106,895			$	3,035,597			$	2,729,686			$	2,534,011
Non-Performing Loans:
Commercial real estate	$	1,304			$	1,334			$	600			$	825			$	4,493
Construction and land development		8,961				8,997				9,052				9,128				-
Commercial and industrial		2,129				1,293				304				305				2,468
Owner occupied real estate		3,114				2,746				2,759				3,225				3,710
Consumer and other		1,373				1,383				815				1,044				1,052
Residential mortgage		287				-				-				-				701
Paycheck protection program		1,424				1,438				1,920				13				-
Total non-performing loans	$	18,592			$	17,191			$	15,450			$	14,540			$	12,424
Net Loan Charge-Offs (Recoveries):
Commercial real estate	$	-			$	-			$	(215	)		$	621			$	-
Construction and land development		-				-				-				-				-
Commercial and industrial		-				(29	)			(149	)			2,154				(10	)
Owner occupied real estate		-				-				-				197				(7	)
Consumer and other		(8	)			(8	)			5				35				67
Residential mortgage		-				-				-				-				-
Paycheck protection program		-				-				-				-				-
Total net loan charge-offs (recoveries)	$	(8	)		$	(37	)		$	(359	)		$	3,007			$	50
Investment securities available for sale at fair value
U.S. Government agencies	$	16,213			$	17,021			$	18,395			$	20,051			$	21,536
Collateralized mortgage obligations		316,538				312,988				321,015				350,776				354,341
Agency mortgage-backed securities		414,332				413,706				416,022				484,760				495,122
Municipal securities		48,973				47,523				45,773				48,618				21,837
Corporate bonds		103,169				106,742				198,316				207,467				223,273
Total investment securities available for sale, at fair value	$	899,225			$	897,980			$	999,521			$	1,111,672			$	1,116,109
Unrealized gain (loss) on investment securities available for sale
U.S. Government agencies	$	(1,045	)		$	(1,467	)		$	(1,411	)		$	(939	)		$	(1,483	)
Collateralized mortgage obligations		(59,918	)			(68,291	)			(67,004	)			(45,387	)			(26,475	)
Agency mortgage-backed securities		(82,924	)			(89,973	)			(94,247	)			(67,559	)			(36,899	)
Municipal securities		(2,934	)			(4,498	)			(6,355	)			(3,673	)			(1,417	)
Corporate bonds		(7,481	)			(7,911	)			(34,526	)			(25,366	)			(14,138	)
Total unrealized gain (loss) on investment securities available for sale	$	(154,302	)		$	(172,140	)		$	(203,543	)		$	(142,924	)		$	(80,412	)
Investment securities held to maturity, at amortized cost
U.S. Government agencies	$	47,975			$	50,408			$	52,788			$	56,226			$	61,072
Collateralized mortgage obligations		363,389				363,733				374,421				385,744				402,478
Agency mortgage-backed securities		1,122,559				1,126,111				1,135,167				1,158,115				1,186,306
Municipal securities		6,551				-				-				-				-
Corporate bonds		89,770				89,103
Total investment securities held to maturity, at amortized cost	$	1,630,244			$	1,629,355			$	1,562,376			$	1,600,085			$	1,649,856
Unrealized gain (loss) on investment securities held to maturity
U.S. Government agencies	$	(3,608	)		$	(4,417	)		$	(4,764	)		$	(3,012	)		$	(1,631	)
Collateralized mortgage obligations		(58,181	)			(66,232	)			(67,557	)			(36,989	)			(23,898	)
Agency mortgage-backed securities		(196,310	)			(209,762	)			(222,509	)			(160,039	)			(92,916	)
Municipal securities		(16	)			-				-				-				-
Corporate bonds		4,357				551				-				-				-
Total unrealized gain (loss) on investment securities held to maturity	$	(253,758	)		$	(279,860	)		$	(294,830	)		$	(200,040	)		$	(118,445	)
Deposits
Demand – non-interest bearing	$	1,210,262			$	1,289,420			$	1,418,060			$	1,425,659			$	1,404,454
Demand – interest bearing		2,344,256				2,469,761				2,497,761				2,294,931				2,352,205
Money market and savings		1,066,786				1,149,995				1,217,580				1,342,883				1,363,484
Time Deposits		256,935				103,787				118,183				149,553				190,093
Total deposits	$	4,878,239			$	5,012,963			$	5,251,584			$	5,213,026			$	5,310,236

Republic First Bancorp, Inc.
Consolidating Income Statement (UNAUDITED)
(dollars in thousands, except for share data)
	For the three months ended
	March 31,				December 31,				September 30,				June 30,				March 31,
		2023				2022				2022				2022				2022
Interest income:
Interest and fees on taxable loans	$	35,557			$	34,060			$	30,653			$	26,994			$	25,657
Interest and fees on tax-exempt loans		612				615				605				557				411
Interest and dividends on taxable investment securities		14,990				14,730				14,304				14,248				13,197
Interest and dividends on tax-exempt investment securities		424				392				392				340				143
Interest on federal funds sold and other interest-earning assets		581				143				54				85				40
Total interest income		52,164				49,940				46,008				42,224				39,448
Interest expense
Demand- interest bearing		13,912				9,831				4,798				2,528				2,210
Money market and savings		3,643				2,234				845				779				795
Time deposits		1,023				119				139				222				246
Other borrowings		9,593				4,821				2,227				295				57
Total interest expense		28,171				17,005				8,009				3,824				3,308
Net interest income		23,993				32,935				37,999				38,400				36,140
Provision for credit losses		443				764				3,998				830				(72	)
Net interest income after provision for credit losses		23,550				32,171				34,001				37,570				36,212
Non-interest income
Loan and servicing fees		176				771				311				694				495
Mortgage banking income		211				486				844				888				1,115
Gain on sales of SBA loans		190				354				502				684				527
Service fees on deposit accounts		3,268				3,473				3,668				3,108				3,467
Net (loss) gain on sale or call of investment securities		-				-				(46	)			-				-
Other non-interest (loss) income		(2,576	)			(192	)			463				(501	)			(1,257	)
Total non-interest income		1,269				4,892				5,742				4,873				4,347
Non-interest expenses:
Salaries and employee benefits		14,973				14,527				16,276				16,349				14,532
Occupancy		3,886				3,990				3,982				3,468				3,932
Depreciation and amortization		2,524				2,349				2,193				2,149				2,113
Legal		3,483				4,672				3,617				6,322				1,004
Other real estate owned		450				241				317				(111	)			203
Appraisal and other loan expenses		719				693				428				54				333
Advertising		202				326				231				233				211
Data processing		1,323				2,284				1,574				1,136				2,899
Insurance		517				542				179				169				312
Professional fees		3,694				1,313				1,875				1,055				965
Debit card processing		929				905				991				906				826
Regulatory assessments and costs		1,299				1,390				1,101				1,077				1,112
Taxes, other		523				(964	)			757				790				524
Other operating expenses		2,693				4,165				4,193				3,653				3,229
Total non-interest expense		37,215				36,433				37,714				37,250				32,195
Income (loss) before provision (benefit) for income taxes		(12,396	)			630				2,029				5,193				8,364
Provision (benefit) for income taxes		(3,320	)			384				476				1,200				2,129
Net (loss) income	$	(9,076	)		$	246			$	1,553			$	3,993			$	6,235
Preferred stock dividends		644				644				644				644				866
Net (loss) income available to common shareholders	$	(9,720	)		$	(398	)		$	909			$	3,349			$	5,369
Net (loss) income per share
Basic earnings per common share	$	(0.15	)		$	(0.01	)		$	0.01			$	0.05			$	0.09
Diluted earnings per common share	$	(0.15	)		$	(0.01	)		$	0.01			$	0.05			$	0.08

Republic First Bancorp, Inc.
Average Balance Sheet (UNAUDITED)
(dollars in thousands, except for share data)
	For the Three Months Ended
	March 31, 2023									December 31, 2022									March 31, 2022
	Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid (a)			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid (a)			Average Balance			Interest Income/ Expense			Average Rates Earned/ Paid (a)
Interest-earning assets:
Federal funds sold and other interest-earning assets	$	84,228		$	581		2.80	%		$	45,580		$	143		1.26	%		$	137,533		$	40		0.12	%
Investment securities and restricted stock		2,763,904			15,503		2.27	%			2,779,268			15,204		2.19	%			2,816,956			13,378		1.93	%
Loans receivable		3,138,633			36,296		4.69	%			3,086,339			34,804		4.52	%			2,516,719			26,177		4.22	%
Total interest-earning assets		5,986,765			52,380		3.55	%			5,911,187			50,151		3.40	%			5,471,208			39,595		2.93	%
Other assets		102,259									92,565									221,835
Total assets	$	6,089,024								$	6,003,752								$	5,693,043
Interest-bearing liabilities:
Demand deposits - interest bearing	$	2,486,972		$	13,912		2.27	%		$	2,531,899		$	9,831		1.56	%		$	2,326,808		$	2,210		0.39	%
Money market & savings deposits		1,105,981			3,643		1.34	%			1,212,798			2,234		0.74	%			1,365,857			795		0.24	%
Time deposits		175,142			1,023		2.37	%			109,124			119		0.44	%			195,516			246		0.51	%
Total interest-bearing deposits		3,768,095			18,578		2.00	%			3,853,821			12,184		1.27	%			3,888,181			3,251		0.34	%
Other borrowings		771,076			9,593		5.05	%			478,730			4,821		4.04	%			11,938			57		1.94	%
Total interest-bearing liabilities	$	4,539,171		$	28,171		2.52	%		$	4,332,551		$	17,005		1.57	%		$	3,900,119		$	3,308		0.34	%
Demand deposits - non-interest bearing	$	1,248,426								$	1,380,744								$	1,378,400
Non interest-bearing other liabilities		106,506									106,010									110,416
Shareholders' equity		194,921									184,447									304,108
Total liabilities and shareholders' equity	$	6,089,024								$	6,003,752								$	5,693,043
Net interest income				$	24,209								$	33,146								$	36,287
Net interest spread							1.03	%								1.83	%								2.59	%
Net interest margin							1.62	%								2.25	%								2.69	%
(a) Computed on a fully tax-equivalent basis using a federal tax rate of 21%.