Republic First Bancorp, Inc. Reports Third Quarter Financial Results

PHILADELPHIA, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Republic First Bancorp, Inc. (NASDAQ:FRBK), the holding company for Republic Bank, today announced its financial results for the period ended September 30, 2021.

Q3-2021 Financial Highlights

• Net income for the nine-month period ended September 30, 2021 increased to $19.1 million, or $0.25 per diluted share, compared to net income of $1.0 million, or $0.02 per diluted share, for the nine month period ended September 30, 2020.
  
  
  
  
• Net income for the quarter ended September 30, 2021 increased to $6.1 million, or $0.08 per diluted share, compared to a net loss of $1.0 million, or $(0.02) per diluted share, for the quarter ended September 30, 2020.
  
  
  
  
• The improvement in earnings was driven by the strong growth in revenue while our focus on cost control initiatives continues to limit expense growth. In addition, earnings during 2020 were impacted by a one-time goodwill impairment charge that did not recur in 2021. During the first nine months of 2021 total revenue increased 30% and non-interest expense, excluding the goodwill impairment charge, increased by 9% compared to the first nine months of 2020.
  
  
  
  
• Total deposits increased by $1.1 billion, or 27%, to $5.0 billion as of September 30, 2021 compared to $3.9 billion as of September 30, 2020. New stores opened since the beginning of the "Power of Red is Back" expansion campaign are currently growing deposits at an average rate of $42 million per year, while the average deposit growth for all stores over the last twelve months was approximately $33 million per store.
  
  
  
  
• We have achieved this significant growth in deposits while driving down the overall cost of funds for the Bank. The cost of funds decreased to 0.36% during the third quarter of 2021 compared to 0.59% in the third quarter of 2020.
  
  
  
  
• Excluding the impact of PPP loans, total loans grew $296 million, or 15%, to $2.3 billion as of September 30, 2021 compared to $2.0 billion at September 30, 2020.
  
  
  
  
• Asset quality remains strong as the ratio of non-performing assets to total assets declined to 0.25% as of September 30, 2021. No loan customers were deferring loan payments at the end of the third quarter. All customers that were granted deferrals to assist during the height of the COVID pandemic have resumed contractual payments.
  
  

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

"The Power of Red is Back expansion strategy continues to build momentum and deliver strong results across all fronts at Republic. Earnings have improved significantly over the last twelve months. Deposits continue to grow at rates far above industry standards and loan growth remains robust despite the challenges experienced by most financial institutions across the country as we move forward from the economic impact of the COVID-19 pandemic."

"As we grow, we remain laser focused on our commitment to deliver the best experience across every channel that our customers have access to….in-store, online, mobile, or by phone. This approach creates FANS throughout our footprint who join our brand, remain loyal and refer their friends which is driving tremendous organic growth quarter after quarter."

Financial Summary for the Period Ended September 30, 2021

The changes in the balance sheet as of September 30, 2021 were impacted by the effect of the PPP loan program. A portion of the increase in cash balances, outstanding loans, and outside borrowings will be short-term in nature and will change as the borrowers that received PPP loans submit applications for forgiveness to the SBA. A summary of the balance sheet presented with and without the impact of the PPP loan program for the period ended September 30, 2021 can be found in the following table:

($ in millions)	Actual			Actual			Actual			YOY Growth
	09/30/21			06/30/21			09/30/20			($)				(%)
Assets	$	5,406		$	5,377		$	4,959		$	447			9	%
Assets (excluding PPP)*		5,157			4,997			4,275			882			21	%
Loans		2,497			2,521			2,629			(132	)		(5	%)
Loans (excluding PPP)*		2,258			2,141			1,962			296			15	%
Deposits		4,972			4,560			3,906			1,066			27	%
PPPLF Borrowings	-				388			646			(646	)		(100	%)

*Note: See disclosure related to non-GAAP financial measures at the end of this release.

A summary of the income statement for the period ended September 30, 2021 can be found in the following table:

($ in millions, except		Three Months Ended										Nine Months Ended
per share data)		09/30/21			09/30/20				Change			09/30/21			09/30/20			Change
Total Revenue		$	38.8		$	33.0			18	%		$	118.8		$	91.1		30	%
Non-Interest Expense (excl Goodwill Imp)			29.8			28.6			4	%			89.6			82.5		9	%
Goodwill Impairment		-				5.0			(100	%)		-				5.0		(100	%)
Income (Loss) Before Tax			8.1			(1.5	)		640	%			25.2			0.8		3,050	%
Net Income (Loss)			6.1			(1.0	)		710	%			19.1			1.0		1,810	%
Earnings (Loss) per share (diluted)		$	0.08		$	(0.02	)		500	%		$	0.25		$	0.02		1,150	%

Additional Financial Highlights

• Total assets increased by $447 million, or 9%, to $5.4 billion as of September 30, 2021 compared to $5.0 billion as of September 30, 2020. Excluding the short-term impact of the PPP loan program total assets increased by $882 million, or 21%, year over year.
  
  
  
  
• The net interest margin increased by 18 basis points to 2.71% for the nine months ended September 30, 2021 compared to 2.53% for the nine months ended September 30, 2020. This increase was primarily driven by a decline in the cost of funds during the first nine months of 2021.
  
  
  
  
• The cost of funds declined to 0.36% for the three-month period ended September 30, 2021 compared to 0.59% for the three month period ended September 30, 2020. This decrease was driven by the lower cost of deposits which has occurred while deposit balances have grown by more than $1.0 billion year over year.
  
  
  
  
• We have thirty-two convenient store locations open today. We are currently building a new store location in Ocean City, NJ which we expect to open during the fourth quarter of 2021.
  
  
  
  
• Our residential mortgage division, Oak Mortgage, is serving the home financing needs of customers throughout its footprint. The Oak Mortgage team originated more than $713 million in mortgage loans over the last twelve months which continues to be near record highs for the Oak Mortgage Team.
  
  
  
  
• Total Risk-Based Capital ratio was 12.53% and Tier I Leverage Ratio was 6.50% at September 30, 2021.
  
  
  
  
• Book value per common share increased to $4.67 as of September 30, 2021 compared to $4.33 as of September 30, 2020.
  
  

Income Statement

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

	Three Months Ended
	09/30/21			06/30/21			% Change			09/30/20				% Change
Net Interest Income	$	31,442		$	30,639		3	%		$	22,930			37	%
Non-interest Income		7,317			7,680		(5	%)			10,031			(27	%)
Total Revenue		38,759			38,319		1	%			32,961			18	%
Provision for Loan Losses		900			-		100	%			850			6	%
Non-interest Expense		29,775			30,518		(2	%)			28,569			4	%
Income (Loss) Before Goodwill Impairment		8,084			7,801		4	%			3,542			128	%
Goodwill Impairment	-			-			-	%			5,011			(100	%)
Income (Loss) Before Taxes		8,084			7,801		4	%			(1,469	)		650	%
Provision (Benefit) for Taxes		1,988			1,867		6	%			(503	)		495	%
Net Income (Loss)		6,096			5,934		3	%			(966	)		731	%
Preferred Stock Dividend		875			875		0	%			-			100	%
Net Income (Loss) Attributable to Common Shareholders		5,221			5,059		3	%			(966	)		640	%
Earnings (Loss) per share	$	0.08		$	0.08		0	%		$	(0.02	)		500	%

Net income increased to $6.1 million, or $0.08 per share, for the three-month period ended September 30, 2021, compared to a net loss of $1.0 million, or $(0.02) per share, for the three-month period ended September 30, 2020.

We continue to demonstrate progress with operating leverage which drives improved earnings. Total revenue increased by 18% while non-interest expense excluding goodwill impairment increased by 4% during the third quarter of 2021 compared to the third quarter of 2020. Earnings during the prior year were impacted by a goodwill impairment charge in the amount of $5.0 million which did not recur in 2021.

Net interest income increased to $31.4 million during the third quarter of 2021 compared to $22.9 million during the third quarter of 2020. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the "Power of Red is Back" expansion strategy. We also continue to amortize the fees associated with the origination of PPP loans which is reported as interest income and is recognized over the life of the loans. Approximately $9 million in origination fees related to the PPP loan program have been deferred as of September 30, 2021 and will be recognized over the remaining life of the loans in future periods.

The net interest margin for the three-month period ended September 30, 2021 increased by 19 basis points to 2.54% compared to 2.35% for the three month period ended September 30, 2020. The net interest margin declined by 10 basis points on a linked quarter basis primarily as a result of higher cash balances held during the third quarter of 2021.

Non-interest income declined to $7.3 million during the quarter ended September 30, 2021, compared to $10.0 million during the quarter ended September 30, 2020. The decrease is primarily attributable to the decrease in mortgage banking income year over year as a result of a decline in residential mortgage loan originations driven by lower refinancing activity in the current year.

Excluding the goodwill impairment charge in 2020, non-interest expense increased by 4%, to $29.8 million during the quarter ended September 30, 2021, compared to $28.6 million during the quarter ended September 30, 2020. The year over year growth was spread across all expense categories driven by the overall growth of the Bank.

A dividend on the outstanding shares of preferred stock in the amount of $0.9 million was declared and paid during the third quarter of 2021. The preferred stock was initially issued in August 2020 and pays a dividend at an annual rate of 7.00%.

	Nine Months Ended
	09/30/21			09/30/20				% Change
Net Interest Income	$	93,513		$	66,111			41	%
Non-interest Income		25,272			25,000			1	%
Total Revenue		118,785			91,111			30	%
Provision for Loan Losses		3,900			2,800			39	%
Non-interest Expense		89,640			82,505			9	%
Income (Loss) Before Goodwill Impairment		25,245			5,806			335	%
Goodwill Impairment	-				5,011			(100	%)
Income Before Taxes		25,245			795			3,075	%
Provision (Benefit) for Taxes		6,147			(158	)		3,991	%
Net Income		19,098			953			1,904	%
Preferred Stock Dividend		2,625			-			100	%
Net Income Attributable to Common Shareholders		16,473			953			1,629	%
Earnings per share	$	0.25		$	0.02			1,150	%

Net income increased to $19.1 million, or $0.25 per share, for the nine-month period ended September 30, 2021, compared to net income of $1.0 million, or $0.02 per share, for the nine-month period ended September 30, 2020. Similar to the results for the three-month period ended September 30, 2021, improved operating leverage also drove better earnings during the nine-month period ended September 30, 2021. Total revenue increased by 30% while non-interest expense excluding the goodwill impairment charge increased by 9%, during the first nine months of 2021 compared to the first nine months of 2020.

Net interest income increased to $93.5 million during the nine-month period ended September 30, 2021 compared to $66.1 million during the nine month period ended September 30, 2020. The increase in interest income is attributable to the growth in interest-earning assets over the last twelve months driven by the "Power of Red is Back" expansion strategy. We also continue to amortize the fees associated with the origination of PPP loans which is reported as interest income and is recognized over the life of the loans. The net interest margin for the nine-month period ended September 30, 2021 increased by 18 basis points to 2.71% compared to 2.53% for the nine month period ended September 30, 2020. The improvement in the margin was primarily a result of a decline in the cost of funds to 0.42% during 2021 compared to 0.69% during 2020.

Non-interest income increased by $0.3 million, or 1%, to $25.3 million for the nine-month period ended September 30, 2021, compared to $25.0 million for the nine-month period ended September 30, 2020. Growth in service fees and gains on the sale of SBA loans were offset by decreases in mortgage banking income, gains on the sale of investment securities and other non-interest income.

Excluding goodwill impairment, non-interest expense increased by 9%, to $89.6 million during the nine months ended September 30, 2021, compared to $82.5 million during the nine months ended September 30, 2020. The year over year growth was spread across all expense categories driven by the overall growth of the Bank.

Deposits

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

Description	09/30/21			09/30/20		% Change			06/30/21		% Change
Demand noninterest-bearing	$	1,346,353		$	1,049,169	28	%		$	1,258,162	7	%
Demand interest-bearing		2,162,324			1,618,342	34	%			1,945,833	11	%
Money market and savings		1,265,926			1,034,799	22	%			1,168,516	8	%
Certificates of deposit		197,478			203,296	(3	%)			187,357	5	%
Total deposits	$	4,972,081		$	3,905,606	27	%		$	4,559,868	9	%

Deposits increased by $1.1 billion, or 27%, to $5.0 billion at September 30, 2021 compared to $3.9 billion at September 30, 2020. This increase can be attributed to our strategy to expand the reach of our banking model which focuses on enhancing the total customer experience including in-store, on-line and mobile banking options. High levels of customer service and convenience across all delivery channels 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 28%, year over year as a result of the successful execution of our strategy. The increase in demand deposits over the last twelve months is also a result of our participation in the PPP loan program. Many of the PPP loans originated were for small businesses that were previously not customers of Republic Bank. Many of these small businesses have chosen to move their primary banking relationship to Republic as a result of the outstanding level of service and cooperation they experienced during the PPP loan process. Commercial deposits were 45% of total deposits as of September 30, 2021.

Lending

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

Description	09/30/21			09/30/20		% Growth			06/30/21		% Growth
Commercial and industrial	$	250,650		$	228,145	10	%		$	212,003	18	%
Owner occupied real estate		496,301			427,026	16	%			478,547	4	%
Commercial real estate		775,168			676,460	15	%			736,293	5	%
Construction and land development		153,132			164,671	(7	%)			160,945	(5	%)
Residential mortgage		496,963			365,279	36	%			459,712	8	%
Consumer and other		85,680			99,975	(13	%)			93,125	(7	%)
Sub-total (excl PPP Loans)		2,257,894			1,961,556	15	%			2,140,625	5	%
Paycheck protection program		239,120			667,842	(64	%)			380,798	(37	%)
Total Loans	$	2,497,014		$	2,629,398	(5	%)		$	2,521,423	(1	%)

Gross loans decreased by $132 million, or 5%, at September 30, 2021 compared to September 30, 2020. Loans originated through the PPP loan program continue to be repaid or forgiven by the SBA which offsets the growth experienced in other categories in the portfolio. Excluding the impact of the PPP loans, gross loans increased by $296 million, or 15%, to $2.3 billion at September 30, 2021 compared to $2.0 billion at September 30, 2020. We continue to see results from the continued success with our relationship banking model which has driven a steady flow in quality loan demand. We experienced strongest growth in the owner-occupied real estate, commercial real estate and residential mortgage categories over the last twelve months.

Asset Quality

The Company's asset quality ratios are highlighted below:

	Three Months Ended
	09/30/21		06/30/21		09/30/20
Non-performing assets / capital and reserves	4	%	4	%	4	%
Non-performing assets / total assets	0.25	%	0.26	%	0.27	%
Quarterly net loan charge-offs / average loans*	0.00	%	0.00	%	0.01	%
Allowance for loan losses / gross loans*	0.77	%	0.75	%	0.45	%
Allowance for loan losses / non-performing loans	133	%	123	%	95	%

*Note: PPP loans excluded when calculating % of total loan balances. See disclosure related to non-GAAP financial measures at the end of this release.

The percentage of non-performing assets to total assets decreased to 0.25% at September 30, 2021, compared to 0.27% at September 30, 2020. The allowance for loan losses as a percentage of total loans excluding PPP loans increased to 0.77% as of September 30, 2021 compared to 0.45% as of September 30, 2020. The allowance for loan losses as a percentage of non-performing loans increased to 133% at September 30, 2021 compared to 95% at September 30, 2020 as a result of the increase the allowance for loan losses over the last 12 months.

Capital

The Company's capital ratios at September 30, 2021 were as follows:

	Actual 09/30/21 Bancorp	Actual 09/30/21 Bank	Regulatory Guidelines "Well Capitalized"
Leverage Ratio	6.50%	6.24%	5.00%
Common Equity Ratio	9.81%	11.45%	6.50%
Tier 1 Risk Based Capital	11.92%	11.45%	8.00%
Total Risk Based Capital	12.53%	12.07%	10.00%
Tangible Common Equity	5.09%	5.94%	n/a

Total shareholders' equity increased to $324 million at September 30, 2021 compared to $303 million at September 30, 2020. The increase was primarily due to growth in retained earnings driven by net income over the last twelve months. Book value per common share increased to $4.67 at September 30, 2021 compared to $4.33 per share at September 30, 2020.

Non-GAAP Financial Measures

In addition to evaluating the Company's financial results of operations in accordance with accounting principles generally accepted in the U.S. ("GAAP"), management periodically supplements its evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial conditions, and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company's GAAP financial information.

The Company believes that disclosing non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to better understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently.

Analyst and Investor Call

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

Date:	October 27, 2021
Time:	11:00am (EDT)
From the U.S. dial:	(800) 774-6070 [US Toll Free] or
	(630) 691-2753 [US Toll]
Participant Pin:	9216 154#
An operator will assist you in joining the call.

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 (FDIC). The Bank provides diversified financial products through its thirty-two 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, 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)
						September 30,				June 30,				September 30,
(dollars in thousands, except per share amounts)							2021				2021				2020
ASSETS
	Cash and due from banks					$	15,560			$	16,371			$	43,689
	Interest-bearing deposits and federal funds sold						368,408				750,328				874,472
		Total cash and cash equivalents					383,968				766,699				918,161
	Securities - Available for sale						889,725				773,977				440,655
	Securities - Held to maturity						1,377,253				1,057,842				688,939
	Restricted stock						3,510				3,510				3,789
		Total investment securities					2,270,488				1,835,329				1,133,383
	Loans held for sale						16,991				14,408				42,549
	Loans receivable						2,497,014				2,521,423				2,629,398
	Allowance for loan losses						(17,218	)			(16,110	)			(11,851	)
		Net loans					2,479,796				2,505,313				2,617,547
	Premises and equipment						125,301				123,675				124,034
	Other real estate owned						532				852				1,113
	Other assets						128,502				131,162				121,969
	Total Assets					$	5,405,578			$	5,377,438			$	4,958,756
LIABILITIES
	Non-interest bearing deposits					$	1,346,353			$	1,258,162			$	1,049,169
	Interest bearing deposits						3,625,728				3,301,706				2,856,437
		Total deposits					4,972,081				4,559,868				3,905,606
	Short-term borrowings						-				387,509				646,267
	Subordinated debt						11,276				11,274				11,270
	Other liabilities						98,708				98,346				92,675
	Total Liabilities						5,082,065				5,056,997				4,655,818
SHAREHOLDERS' EQUITY
	Preferred stock						20				20				20
	Common stock						594				594				594
	Additional paid-in capital						324,023				323,442				321,915
	Retained earnings (accumulated deficit)						8,388				3,167				(11,263	)
	Treasury stock at cost						(3,725	)			(3,725	)			(3,725	)
	Stock held by deferred compensation plan						(183	)			(183	)			(183	)
	Accumulated other comprehensive loss						(5,604	)			(2,874	)			(4,420	)
	Total Shareholders' Equity						323,513				320,441				302,938
	Total Liabilities and Shareholders' Equity					$	5,405,578			$	5,377,438			$	4,958,756

Republic First Bancorp, Inc.
Consolidated Statements of Operations
(Unaudited)
						Three Months Ended										Nine Months Ended
						September 30,			June 30,			September 30,				September 30,			September 30,
(in thousands, except per share amounts)						2021			2021			2020				2021			2020
INTEREST INCOME
	Interest and fees on loans					$	27,380		$	28,460		$	24,683			$	85,743		$	67,593
	Interest and dividends on investment securities						8,217			6,830			3,778				21,515			15,671
	Interest on other interest earning assets						181			64			99				294			438
	Total interest income						35,778			35,354			28,560				107,552			83,702
INTEREST EXPENSE
	Interest on deposits						4,283			4,641			5,553				13,839			17,298
	Interest on borrowed funds						53			74			77				200			293
	Total interest expense						4,336			4,715			5,630				14,039			17,591
	Net interest income						31,442			30,639			22,930				93,513			66,111
	Provision for loan losses						900			-			850				3,900			2,800
	Net interest income after provision for loan losses						30,542			30,639			22,080				89,613			63,311
NON-INTEREST INCOME
	Service fees on deposit accounts						3,283			3,260			2,134				10,503			6,166
	Mortgage banking income						2,397			2,908			4,962				9,869			10,809
	Gain on sale of SBA loans						641			633			649				2,035			1,567
	Gain on sale of investment securities						-			2			279				2			2,760
	Other non-interest income						996			877			2,007				2,863			3,698
	Total non-interest income						7,317			7,680			10,031				25,272			25,000
NON-INTEREST EXPENSE
	Salaries and employee benefits						14,639			14,855			14,596				44,216			41,154
	Occupancy and equipment						5,689			5,846			5,524				17,606			16,375
	Legal and professional fees						1,074			1,048			940				3,147			2,879
	Foreclosed real estate						120			492			80				710			437
	Regulatory assessments and related fees						904			881			625				2,511			1,930
	Goodwill impairment						-			-			5,011				-			5,011
	Other operating expenses						7,349			7,396			6,804				21,450			19,730
	Total non-interest expense						29,775			30,518			33,580				89,640			87,516
Income (loss) before provision (benefit) for income taxes							8,084			7,801			(1,469	)			25,245			795
Provision (benefit) for income taxes							1,988			1,867			(503	)			6,147			(158	)
Net income (loss)							6,096			5,934			(966	)			19,098			953
Preferred stock dividends							875			875			-				2,625			-
Net income (loss) attributable to common shareholders						$	5,221		$	5,059		$	(966	)		$	16,473		$	953
Net Income (Loss) per Common Share
	Basic					$	0.09		$	0.09		$	(0.02	)		$	0.28		$	0.02
	Diluted					$	0.08		$	0.08		$	(0.02	)		$	0.25		$	0.02
Average Common Shares Outstanding
	Basic						58,895			58,875			58,853				58,877			58,851
	Diluted						75,876			76,164			64,432				75,946			60,751

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)		September 30, 2021									June 30, 2021									September 30, 2020
					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		$	480,166		$	181		0.15	%		$	306,222		$	64		0.08	%		$	383,632		$	99		0.10	%
Investment securities			1,948,532			8,240		1.69	%			1,688,807			6,830		1.62	%			908,166			3,784		1.67	%
Loans receivable			2,495,611			27,493		4.37	%			2,658,540			28,460		4.29	%			2,617,981			24,829		3.77	%
Total interest-earning assets			4,924,309			35,914		2.89	%			4,653,569			35,354		3.05	%			3,909,779			28,712		2.92	%
Other assets			248,095									262,404									269,071
Total assets		$	5,172,404								$	4,915,973								$	4,178,850
Interest-bearing liabilities:
Demand non interest-bearing		$	1,301,102								$	1,230,690								$	1,043,116
Demand interest-bearing			2,022,477			3,165		0.62	%			1,963,848			3,283		0.67	%			1,541,837			3,056		0.79	%
Money market & savings			1,219,009			837		0.27	%			1,098,340			932		0.34	%			980,979			1,613		0.65	%
Time deposits			193,816			281		0.58	%			187,093			425		0.91	%			217,554			884		1.62	%
Total deposits			4,736,404			4,283		0.36	%			4,479,971			4,640		0.42	%			3,783,486			5,553		0.58	%
Total interest-bearing deposits			3,435,302			4,283		0.49	%			3,249,281			4,641		0.57	%			2,740,370			5,553		0.81	%
Other borrowings			11,276			53		1.86	%			21,104			74		1.41	%			32,343			77		0.95	%
																										.
Total interest-bearing liabilities			3,446,578			4,336		0.50	%			3,270,385			4,715		0.58	%			2,772,713			5,630		0.81	%
Total deposits and
other borrowings			4,747,680			4,336		0.36	%			4,501,075			4,715		0.42	%			3,815,829			5,630		0.59	%
Non interest-bearing liabilities			100,773									100,272									88,773
Shareholders' equity			323,951									314,626									274,248
Total liabilities and
shareholders' equity		$	5,172,404								$	4,915,973								$	4,178,850
Net interest income					$	31,578								$	30,639								$	23,082
Net interest spread								2.39	%								2.47	%								2.11	%
Net interest margin								2.54	%								2.64	%								2.35	%
Note: The above tables are presented on a tax equivalent basis.

Republic First Bancorp, Inc.
Average Balances and Net Interest Income
(unaudited)
		For the nine months ended									For the nine months ended
(dollars in thousands)		September 30, 2021									September 30, 2020
					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		$	332,590		$	294		0.12	%		$	221,698		$	438		0.26	%
Securities			1,691,294			21,579		1.70	%			1,032,289			15,687		2.03	%
Loans receivable			2,609,622			86,086		4.41	%			2,255,283			68,032		4.03	%
Total interest-earning assets			4,633,506			107,959		3.12	%			3,509,270			84,157		3.20	%
Other assets			262,383									265,484
Total assets		$	4,895,889								$	3,774,754
Interest-bearing liabilities:
Demand non interest-bearing		$	1,207,065								$	891,385
Demand interest-bearing			1,945,074			9,706		0.67	%			1,426,181			9,333		0.87	%
Money market & savings			1,110,962			2,888		0.35	%			864,517			4,827		0.75	%
Time deposits			188,613			1,245		0.88	%			217,526			3,138		1.93	%
Total deposits			4,451,714			13,839		0.42	%			3,399,609			17,298		0.68	%
Total interest-bearing deposits			3,244,649			13,839		0.57	%			2,508,224			17,298		0.92	%
Other borrowings			26,019			200		1.03	%			29,932			293		1.31	%
Total interest-bearing liabilities			3,270,668			14,039		0.57	%			2,538,156			17,591		0.93	%
Total deposits and
other borrowings			4,477,733			14,039		0.42	%			3,429,541			17,591		0.69	%
Non interest-bearing liabilities			101,678									85,841
Shareholders' equity			316,478									259,372
Total liabilities and
shareholders' equity		$	4,895,889								$	3,774,754
Net interest income					$	93,920								$	66,566
Net interest spread								2.55	%								2.27	%
Net interest margin								2.71	%								2.53	%
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				Nine months ended
	September 30,				June 30,				September 30,				Dec 31				September 30,				September 30,
(dollars in thousands)		2021				2021				2020				2020				2021				2020
Balance at beginning of period	$	16,110			$	16,091			$	11,040			$	9,266			$	12,975			$	9,266
Provision charged to operating expense		900				-				850				4,200				3,900				2,800
		17,010				16,091				11,890				13,466				16,875				12,066
Recoveries on loans charged-off:
Commercial		60				43				10				51				250				41
Consumer		149				49				3				13				201				10
Total recoveries		209				92				13				64				451				51
Loans charged-off:
Commercial		1				(61	)			(50	)			(448	)			(60	)			(199	)
Consumer		(2	)			(12	)			(2	)			(107	)			(48	)			(67	)
Total charged-off		(1	)			(73	)			(52	)			(555	)			(108	)			(266	)
Net (charge-offs) recoveries		208				19				(39	)			(491	)			343				(215	)
Balance at end of period	$	17,218			$	16,110			$	11,851			$	12,975			$	17,218			$	11,851
Net (charge-offs) recoveries as a percentage of
average loans outstanding		(0.03	%)			(0.00	%)			0.01	%			0.02	%			(0.02	%)			0.01	%
Allowance for loan losses as a percentage
of period-end loans		0.69	%			0.64	%			0.45	%			0.49	%			0.69	%			0.45	%

Republic First Bancorp, Inc.
Summary of Non-Performing Loans and Assets
(unaudited)
	September 30,				June 30,				March 31,				December 31,				September 30,
(dollars in thousands)		2021				2021				2021				2020				2020
Non-accrual loans:
Commercial real estate	$	10,040			$	10,069			$	10,628			$	10,232			$	10,641
Consumer and other		2,892				1,982				2,562				2,014				1,808
Total non-accrual loans		12,932				12,051				13,190				12,246				12,449
Loans past due 90 days or more
and still accruing		13				996				-				612				-
Total non-performing loans		12,945				13,047				13,190				12,858				12,449
Other real estate owned		532				852				1,188				1,188				1,113
Total non-performing assets	$	13,477			$	13,899			$	14,378			$	14,046			$	13,562
Non-performing loans to total loans		0.52	%			0.52	%			0.49	%			0.49	%			0.47	%
Non-performing assets to total assets		0.25	%			0.26	%			0.27	%			0.28	%			0.27	%
Non-performing loan coverage		133.01	%			123.48	%			121.99	%			100.91	%			95.20	%
Allowance for loan losses as a percentage
of total period-end loans		0.69	%			0.64	%			0.59	%			0.49	%			0.45	%
Non-performing assets / capital plus
allowance for loan losses		3.96	%			4.13	%			4.44	%			4.37	%			4.31	%