GlobeNewswire Inc | Jul 27, 2020 08:30AM EDT

July 27, 2020

PHILADELPHIA, July 27, 2020 (GLOBE NEWSWIRE) -- 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 Americas # 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 Americas #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 Americas #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:

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

*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 Companys 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 Companys 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 06/30/20Pre-TaxPre-Provision $ 0.5 $ (1.9 ) $ (2.4 ) $ - $ 4.2 Earnings(PTPP) % Change inRevenue 10 % (2 %) (3 %) 9 % 13 %Qtr-Qtr% Change inExpense 11 % 7 % (1 %) (1 %) (2 %)Qtr-Qtr

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 PPP Actual YOY YOY Program Growth Growth($ amounts in 6/30/2020 6/30/2020 6/30/2019 (Including (Excludingmillions) PPP) PPP) Cash andCash $ 691 $ 506 $ 130 $ 561 432% $ 376 289%EquivalentsInvestment 942 942 1,062 (120) (11%) (120) (11%)SecuritiesLoans Held 26 26 23 3 13% 3 13%for SaleLoans 2,542 1,889 1,509 1,033 69% 380 25%ReceivableAllowance for (11) (11) (8) (3) 38% (3) 38%Loan LossesNet Loans 2,531 1,878 1,501 1,030 69% 377 25% Premises and 121 121 105 16 15% 16 15%EquipmentOther Assets 123 123 120 3 3% 3 3%Total Assets $ 4,434 $ 3,596 $ 2,941 $ 1,493 51% $ 655 22%Non-interestBearing $ 1,096 $ 696 $ 544 $ 552 101% $ 152 28%DepositsInterestBearing 2,548 2,548 1,984 564 28% 564 28%DepositsTotal 3,644 3,244 2,528 1,116 44% 716 28%Deposits Short-term 438 - 69 369 535% (69) (100%)BorrowingsSubordinated 11 11 11 - 0% - 0%DebtOther 86 86 82 4 5% 4 5%LiabilitiesTotal 4,179 3,341 2,690 1,489 55% 651 24%Liabilities Common Stock 273 273 271 2 1% 2 1%and APICAccumulated (10) (10) (8) (2) 25% (2) 25%DeficitTreasuryStock/Def (4) (4) (4) - 0% - 0%Comp PlanAcc Comp (4) (4) (8) 4 (50%) 4 (50%)Other IncTotalShareholders' 255 255 251 4 2% 4 2%EquityTotalLiabilities & $ 4,434 $ 3,596 $ 2,941 $ 1,493 51% $ 655 22%Shareholders'Equity

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 ChangeTotal $ 36.3 $ 33.3 9 % $ 70.1 $ 63.7 10 %RevenueNet 2.5 0.4 559 % 1.9 0.8 138 %IncomeNetIncome $ 0.04 $ 0.01 300 % $ 0.03 $ 0.01 200 %pershareNetInterest 2.55 % 2.94 % 2.64 % 2.97 % Margin

-- 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 Companys 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 Companys 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 % 06/30/19 % Change ChangeNet 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 1,000 950 5 % - - LossesNon-interest Expense 26,664 27,272 (2 %) 25,911 3 %Income (Loss) Before 3,187 (923 ) 445 % 486 556 %TaxesProvision (Benefit) 675 (330 ) 305 % 105 543 %for TaxesNet Income (Loss) 2,512 (593 ) 524 % 381 559 % Net Income (Loss) $ 0.04 $ (0.01 ) 500 % $ 0.01 300 %per Share

Six Months Ended 06/30/20 06/30/19 % ChangeNet 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 Companys 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):



% % Change ChangeDescription 06/30/20 06/30/19 03/31/20 Demand $ 1,095,782 $ 544,406 101 % $ 676,482 62 %noninterest-bearingDemand 1,435,198 1,072,415 34 % 1,276,816 12 %interest-bearingMoney market and 902,528 719,075 26 % 768,550 17 %savingsCertificates of 210,446 192,081 10 % 222,631 (5 %)depositTotal 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):

% % of % of of Total TotalDescription 06/30/20 Total 06/30/19 03/31/20 Commercial and $ 224,504 9 % $ 189,632 13 % $ 241,754 13 %industrialOwner occupied real 434,422 17 % 381,852 25 % 436,499 23 %estateCommercial real 664,605 26 % 553,644 37 % 668,462 36 %estateConstruction and 150,157 6 % 111,474 7 % 144,215 8 %land developResidential mortgage 313,287 12 % 173,963 12 % 287,425 15 %Paycheck protection 653,593 26 % - - % - - %program (net)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 Companys capital ratios at June 30, 2020 were as follows:

Actual Actual Regulatory 06/30/20 06/30/20 Guidelines Bancorp Bank ?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, 2020Time: 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 2020 2020 2019 amounts) ASSETS Cash and due from $ 36,786 $ 32,581 $ 38,770 banks Interest-bearing deposits and 654,458 23,936 90,744 federal funds sold Total cash and 691,244 56,517 129,514 cash equivalents Securities - 382,221 497,511 338,286 Available for sale Securities - Held 556,159 611,914 718,534 to maturity Restricted stock 3,789 2,746 5,130 Total investment 942,169 1,112,171 1,061,950 securities Loans held for sale 26,126 16,820 23,412 Loans receivable 2,542,248 1,882,037 1,508,720 Allowance for loan (11,040 ) (10,217 ) (8,056 ) losses Net loans 2,531,208 1,871,820 1,500,664 Premises and 121,149 119,893 105,311 equipment Other real estate 1,144 1,144 6,406 owned Other assets 121,603 122,051 113,729 Total Assets $ 4,434,643 $ 3,300,416 $ 2,940,986 LIABILITIES Non-interest $ 1,095,782 $ 676,482 $ 544,406 bearing deposits Interest bearing 2,548,172 2,267,997 1,983,571 deposits Total deposits 3,643,954 2,944,479 2,527,977 Short-term 438,478 - 68,979 borrowings 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 - 594 594 594 $0.01 par value Additional paid-in 273,118 272,639 270,789 capital Accumulated deficit (10,297 ) (12,809 ) (7,909 ) Treasury stock at (3,725 ) (3,725 ) (3,725 ) cost Stock held by deferred (183 ) (183 ) (183 ) compensation plan Accumulated other (4,329 ) (4,400 ) (8,208 ) comprehensive loss Total Shareholders' 255,178 252,116 251,358 Equity Total Liabilities and Shareholders' $ 4,434,643 $ 3,300,416 $ 2,940,986 Equity

Republic First Bancorp, Inc.ConsolidatedStatements of Income(Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (in thousands,except per share 2020 2020 2019 2020 2019 amounts) INTEREST INCOME Interest and $ 22,737 $ 20,173 $ 18,569 $ 42,910 $ 36,369 fees on loans Interest and dividends on 5,072 6,821 7,158 11,893 14,541 investment securities Interest on other interest 50 289 518 339 854 earning assets Total interest 27,859 27,283 26,245 55,142 51,764 income INTEREST EXPENSE Interest on 5,320 6,425 6,695 11,745 12,709 deposits Interest on borrowed 112 104 179 216 544 funds Total interest 5,432 6,529 6,874 11,961 13,253 expense Net interest 22,427 20,754 19,371 43,181 38,511 income Provision for 1,000 950 - 1,950 300 loan losses Net interest income after 21,427 19,804 19,371 41,231 38,211 provision for loan losses NON-INTEREST INCOME Service fees on deposit 2,328 2,064 1,848 4,392 3,460 accounts Mortgage banking 3,389 2,458 3,031 5,847 5,251 income Gain on sale 269 649 1,147 918 1,649 of SBA loans Gain on sale of investment 1,640 841 261 2,481 583 securities Other non-interest 798 533 739 1,331 1,028 income Total non-interest 8,424 6,545 7,026 14,969 11,971 income NON-INTEREST EXPENSE Salaries and employee 13,177 13,381 13,705 26,558 26,064 benefits Occupancy and 5,554 5,297 4,221 10,851 8,236 equipment Legal and professional 1,009 930 1,058 1,939 1,765 fees Foreclosed 75 282 517 357 854 real estate Regulatory assessments 675 630 421 1,305 842 and related fees Other operating 6,174 6,752 5,989 12,926 11,417 expenses Total non-interest 26,664 27,272 25,911 53,936 49,178 expense Income (loss)before provision 3,187 (923 ) 486 2,264 1,004 (benefit) forincome taxes Provision(benefit) for 675 (330 ) 105 345 197 income taxes Net income $ 2,512 $ (593 ) $ 381 $ 1,919 $ 807 (loss) 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 CommonShares 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 June 30, 2020 March 31, 2020 June 30, 2019thousands) Interest Interest Interest Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Balance Expense RateInterest-earning assets: Federal funds sold and otherinterest-earning $ 198,345 $ 50 0.10 % $ 81,339 $ 289 1.43 % $ 85,920 $ 518 2.42 %assetsSecurities 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 %Totalinterest-earning 3,567,405 28,011 3.16 % 3,046,225 27,434 3.62 % 2,662,282 26,383 3.97 %assets Other assets 266,178 260,829 217,685 Total assets $ 3,833,583 $ 3,307,054 $ 2,879,967 Interest-bearing liabilities: Demand non $ 984,771 $ 644,601 $ 525,336 interest-bearingDemand 1,397,790 2,856 0.82 % 1,337,646 3,421 1.03 % 1,144,783 4,206 1.47 %interest-bearingMoney market & 858,782 1,431 0.67 % 752,510 1,783 0.95 % 697,279 1,628 0.94 %savingsTime 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 % Totalinterest-bearing 2,465,410 5,320 0.87 % 2,316,341 6,425 1.12 % 2,018,812 6,695 1.33 %deposits Other borrowings 45,474 112 0.99 % 11,952 104 3.50 % 19,864 179 3.61 % Totalinterest-bearing 2,510,884 5,432 0.87 % 2,328,293 6,529 1.13 % 2,038,676 6,874 1.35 %liabilitiesTotal deposits andother borrowings 3,495,655 5,432 0.62 % 2,972,894 6,529 0.88 % 2,564,012 6,874 1.08 % Noninterest-bearing 83,884 84,211 66,780 liabilitiesShareholders' 254,044 249,949 249,175 equityTotal liabilities andshareholders' $ 3,833,583 $ 3,307,054 $ 2,879,967 equity Net interest $ 22,579 $ 20,905 $ 19,509 incomeNet interest 2.29 % 2.49 % 2.62 %spread Net interest 2.55 % 2.76 % 2.94 %margin 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 June 30, 2020 June 30, 2019 thousands) Interest Interest Average Income/ Yield/ Average Income/ Yield/ Balance Expense Rate Balance Expense Rate Interest-earning assets: Federal funds sold and otherinterest-earning $ 139,842 $ 339 0.49 % $ 70,729 $ 854 2.43 % assetsSecurities 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 % Totalinterest-earning 3,306,815 55,445 3.37 % 2,636,245 52,050 3.98 % assets Other assets 263,504 204,344 Total assets $ 3,570,319 $ 2,840,589 Interest-bearing liabilities: Demand non $ 814,686 $ 518,790 interest-bearingDemand 1,367,718 6,277 0.92 % 1,129,356 8,144 1.45 % interest-bearingMoney market & 805,646 3,214 0.80 % 686,453 3,080 0.90 % savingsTime 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 % Totalinterest-bearing 2,390,876 11,745 0.99 % 1,981,163 12,709 1.29 % deposits Other borrowings 28,713 216 1.51 % 33,341 544 3.29 % Totalinterest-bearing 2,419,589 11,961 0.99 % 2,014,504 13,253 1.33 % liabilitiesTotal deposits andother borrowings 3,234,275 11,961 0.74 % 2,533,294 13,253 1.05 % Noninterest-bearing 84,050 59,505 liabilitiesShareholders' 251,994 247,790 equityTotal liabilities andshareholders' $ 3,570,319 $ 2,840,589 equity Net interest $ 43,484 $ 38,797 incomeNet interest 2.38 % 2.65 % spread Net interest 2.64 % 2.97 % margin 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 2020 2020 2019 2019 2020 2019 thousands) Balance atbeginning of $ 10,217 $ 9,266 $ 7,900 $ 8,615 $ 9,266 $ 8,615 period Provisioncharged to 1,000 950 - 1,905 1,950 300 operatingexpense 11,217 10,216 7,900 10,520 11,216 8,915 Recoveries onloans charged-off:Commercial 14 17 154 219 31 155 Consumer 1 6 3 9 7 4 Total 15 23 157 228 38 159 recoveries Loans charged-off:Commercial (149 ) - (1 ) (1,356 ) (149 ) (930 )Consumer (43 ) (22 ) - (126 ) (65 ) (88 ) Total (192 ) (22 ) (1 ) (1,482 ) (214 ) (1,018 )charged-off Net(charge-offs) (177 ) 1 156 (1,254 ) (176 ) (859 )recoveries Balance at $ 11,040 $ 10,217 $ 8,056 $ 9,266 $ 11,040 $ 8,056 end of period Net (charge-offs)recoveries as a percentage ofaverage loans 0.03 % (0.00 %) (0.04 %) 0.08 % 0.02 % 0.12 %outstanding Allowance forloan losses as apercentageof period-end 0.43 % 0.54 % 0.53 % 0.53 % 0.43 % 0.53 %loans

Republic First Bancorp, Inc.Summary of Non-Performing Loans and Assets(unaudited) June 30, March 31, December 31, September 30, June 30,(dollars in 2020 2020 2019 2019 2019 thousands) Non-accrual loans:Commercial $ 10,747 $ 12,060 $ 10,569 $ 10,180 $ 7,545 real estateConsumer and 1,970 2,125 1,844 1,743 1,777 otherTotalnon-accrual 12,717 14,185 12,413 11,923 9,322 loans Loans past due90 days or moreand still - - - 129 - accruing Totalnon-performing 12,717 14,185 12,413 12,052 9,322 loans Other real 1,144 1,144 1,730 6,653 6,406 estate owned Totalnon-performing $ 13,861 $ 15,329 $ 14,143 $ 18,705 $ 15,728 assets Non-performingloans to total 0.50 % 0.75 % 0.71 % 0.77 % 0.62 %loans Non-performingassets to 0.31 % 0.46 % 0.42 % 0.61 % 0.53 %total assets Non-performing 86.81 % 72.03 % 74.65 % 70.25 % 86.42 %loan coverage Allowance forloan losses as a percentageof totalperiod-end 0.43 % 0.54 % 0.53 % 0.54 % 0.43 %loans Non-performingassets / capital plusallowance for 5.21 % 5.84 % 5.47 % 7.21 % 6.05 %loan losses