July 2023
Repositioning for
Sustainable
Growth
2023-2025 Strategic Plan
Forward-Looking Statements
2
The Company may from time to time make written or oral “forward-looking statements,” including statements contained in this presentation. 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 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 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; 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 the
Company files from time to time with the Securities and Exchange Commission (the “SEC”). 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. 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 the Company, except as may be
required by applicable law or regulations.
2023-2025 Strategic Plan
Disclaimer
3
NO OFFER OR SOLICITATION
This document is not a prospectus or offering document for any securities. This document does not constitute or form part of any offer or invitation
to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Republic First Bancorp, Inc. (the ''Company," "us" or ''we"),
nor shall any part of it nor the fact of its dissemination form part of or be relied on in connection with any contract or investment decision relating
thereto. This document is for informational purposes only and is being furnished on a confidential basis to a limited number of institutional
accredited investors. Any such offering may be made only by a purchase agreement and the information contained herein will be superseded in
its entirety by such purchase agreement. This document does not contain all the information you should consider before investing in securities of
the Company and should not be construed as investment, legal, regulatory or tax advice. You should consult with your own advisors as needed to
assist you in making an investment decision and to advise you whether you are legally permitted to purchase securities.
No representation or warranty as to the accuracy, completeness, or fairness of such information is being made by the Company or any other
person, and neither the Company nor any other person shall have any liability for any information contained herein, or for any omissions from this
document or any other written or oral communications transmitted to the recipient by the Company or any other person in the course of the
recipient's evaluation of a potential investment in the securities. This document speaks as of the date hereof. The Company assumes no obligation
to update any information contained herein.
NON-GAAP FINANCIAL MEASURES
This document contains supplemental financial information determined by methods other than in accordance with accounting principles
generally accepted in the United States of America ("GAAP"), such as efficiency ratio. We use these non-GAAP measures in the analysis of our
performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for
operating results determined in accordance with GAAP. The Appendix to this document contains a reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP financial measures. While we believe that these non-GAAP financial measures are useful in
evaluating results, the information should be considered supplemental in nature and not as a substitute for or superior to the relevant financial
information prepared in accordance with GAAP. The non-GAAP financial measures we use may differ from the non-GAAP financial measures other
financial institutions use to measure their results of operations. This information should be reviewed in conjunction with the financial results
disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021, subsequent quarterly 2022 Form 10-Q filings and other
subsequent filings with the SEC.
2023-2025 Strategic Plan
Important Information
4
The Company intends to file a definitive proxy statement and may file a WHITE proxy card with the the SEC in connection with the 2022 Annual
Meeting of Shareholders (the “2022 Annual Meeting”) and, in connection therewith, the Company, certain of its directors and executive officers will
be participants in the solicitation of proxies from the Company’s shareholders in connection with such meeting. SHAREHOLDERS OF THE COMPANY
ARE STRONGLY ENCOURAGED TO READ SUCH PROXY STATEMENT, ACCOMPANYING WHITE PROXY CARD AND ALL OTHER DOCUMENTS FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE 2022 ANNUAL MEETING.
The Company’s definitive proxy statement for the 2021 annual meeting of shareholders contains information regarding the direct and indirect
interests, by security holdings or otherwise, of the Company’s directors and executive officers in the Company’s securities. Information regarding
subsequent changes to their holdings of the Company’s securities can be found in the SEC filings on Forms 3, 4, and 5, which are available on the
Company’s website at http://investors.myrepublicbank.com/ or through the SEC’s website at www.sec.gov. Information can also be found in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2021 on file with the SEC. Updated information regarding the identity of
potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the definitive proxy statement and
other materials to be filed with the SEC in connection with the 2022 Annual Meeting. Shareholders will be able to obtain the definitive proxy
statement, any amendments or supplements to the proxy statement and other documents filed by the Company with the SEC at no charge at the
SEC’s website at www.sec.gov. Copies will also be available at no charge at the Company’s website at http://investors.myrepublicbank.com.
2023-2025 Strategic Plan
Table of Contents
5
Section Title Page
I
Executive Summary
6
II
Our Strong Foundation for Growth
14
III
Our Plan to Refocus and Execute
23
IV
Conclusion
32
V
Appendix
35
Executive
Summary
Section One
2023-2025 Strategic Plan
Executive Summary
7
Republic Bank is a service
-
focused, relationship
-driven
banking institution
We have a strong foundation
We are executing a new
strategy to refocus the
business and create value
▪ We are one of the largest banks
headquartered in the metropolitan
Philadelphia and Southern New Jersey
markets
▪ We have an attractive niche, ideally
situated between small community
banks that are resource-constrained
and large national banks that lack our
local expertise
▪ There are few mid-size, locally-
focused
competitors in our core market
▪ We have a distinct brand based on
“fanatic,” personalized customer
service
▪ We have 33 retail branches
1
with
approximately $4.9 billion in deposits
2
▪ We have broad and deep customer
relationships
▪ We have a disciplined credit culture
and a diversified loan portfolio, both of
which help to mitigate risk in today’s
uncertain economic environment
▪ Our employee base is loyal and our
technology and product set are
scalable
▪ We recently refreshed our leadership
team, bringing in a new CEO, CFO and
General Counsel, and enhanced our
Board with new skills and perspectives
▪ Our new leadership team has been
developing and executing a new
strategic plan to reposition the
business
▪ The strategy seeks to:
– Renew the bank’s focus on its
core business;
– Improve operational efficiency
and profitability;
– Enhance capital ratios;
– Strengthen customer
relationships;
– Build trust with stakeholders; and
– Right-size the balance sheet
▪ We believe this strategy can deliver
sustainable value, and we are
targeting ROAA of ~1.0% and an
efficiency ratio of <60% in the mid-term
1. As of July 14, 2023.
2. As of March 31, 2023.
2023-2025 Strategic Plan
Republic First Bancorp (Nasdaq: FRBK) Overview
8
▪ Republic Bank was founded in 1988 and for the
first 20 years grew with a focus on commercial
clients and opportunities in the metropolitan
Philadelphia and Southern New Jersey markets
▪ Under prior management, the bank expanded
into New York City and new business lines; at the
time, the Board was divided, with several
directors loyal to the previous CEO, despite these
strategic missteps
▪ In 2022, our directors oversaw an effort to refresh
the Board and leadership team, bringing in three
new directors and a new CEO and CFO; we also
brought in a new General Counsel in 2023
▪ Our new leadership team has prioritized
stabilizing the business while executing a new
strategic plan
▪ Our mission is to deliver an unmatched
commercial and consumer banking experience,
and we are focused on providing “fanatic”
customer service
Deposits ($M)
1
Financial Highlights
1
Stock Price
$0.77
Market Value ($M)
$49
P/TBV
0.25x
Loans ($M)
$3,142
Deposits ($M)
$4,878
Loans/Deposits
64.4%
Total Equity ($M)
$197
Total Assets ($M)
$6,157
Tier 1 Capital Ratio
9.7%
Total Equity/Total Assets
5.6%
1. Source: FactSet and Company filings. Stock price, market value and P/TBV data as of July 14, 2023. All other data as of March 31, 2023.
Loan Portfolio ($M)
1
Investment Securities ($M)
1
$1,210
$2,344
$1,067
$257
Demand - NIB
Demand - IB
Money
Market/Savings
Time Deposits
$895
$304
$289
$570
$87
$992
$6
Commercial Real
Estate
Construction & Land
Development
Commercial &
Industrial
Owner Occupied
Real Estate
Consumer & Other
Residential
Mortgage
Paycheck Protection
Program
$64
$680
$1,537
$56
$193
U.S. Government
Agencies
Collateralized
Mortgage
Obligations
Agency Mortgage-
Backed Ssecurities
Municipal Securities
Corporate Bonds
2023-2025 Strategic Plan
Deposit Base and Liquidity Profile
9
▪ During Q1 2023, our strong community banking brand,
commitment to customers and focus on relationship
banking allowed us to maintain steady deposit levels
in a challenging environment
▪ Even as deposit balances declined 2.7% during Q1 2023,
the number of deposit relationships with the bank
increased by 5.2% in the period
▪ More than 76% of total deposits are FDIC-insured or
fully collateralized
2
; net of fully collateralized public
funds, 60% of deposits are FDIC insured
2
▪ Newly-added reciprocal deposit programs have
expanded the bank’s offerings for current and potential
customers while providing an additional channel for
core deposit gathering
▪ We are focused on leveraging Republic Bank’s strong
consumer deposit acquisition culture to enhance our
liquidity position and reduce reliance on wholesale
funds
1. Source: Company filings.
2. As of March 31, 2023.
Total Deposits
1
$0.5
$0.7
$1.0
$1.4
$1.3
$1.2
$1.0
$1.4
$1.8
$2.3
$2.5
$2.3
$0.7
$0.8
$1.0
$1.3
$1.1
$1.1
$0.2
$0.2
$0.2
$0.2
$0.1
$0.3
$2.4
$3.0
$4.0
$5.2
$5.0
$4.9
2018 2019 2020 2021 2022 Q1 2023
Demand (Non-Interest Bearing) Demand (Interest Bearing)
Money Market and Savings Time Deposits
2023-2025 Strategic Plan
The Board, Leadership & Strategy Have Changed Significantly
10
Vernon Hill
Harry Madonna
Tom Geisel
March 2023
Announced $125M
capital raise
SVB and Signature
Bank fail, spurring
banking crisis
December 2022
Tom Geisel joins as
President & CEO and
appointed to the Board;
Mike Harrington joins as CFO
January 2022
Norcross Group
files 13D
August 2022
Harry Madonna
named Interim
CEO and Executive
Chair
July 2022
Vernon Hill resigns
as CEO
1
; Benjamin
Duster appointed
to the Board
October 2022
Peter Bartholow
appointed to the Board
pursuant to cooperation
agreement with Driver
Management
Q4 2021
Previous leadership invests
heavily in long-duration
securities with low fixed
interest rates; as rates
increase, those securities
decline in value
June 2023
Announced actions to
enhance efficiency
and streamline
operations, including
exiting NY and
mortgage banking
June 2023
Andrew Cohen
appointed
Independent Chair
of the Board
January 2023
Michael LaPlante
appointed SVP,
Chief Accounting
Officer
1H 2022
Previous leadership continues
aggressive expansion, opening new
branch in PA and increasing presence
in NY market, and grows jumbo
residential mortgage portfolio at
below-market interest rates
May 2023
Unveiled new
strategy to refocus
on core services
and markets
December 2021
Driver
Management
submits notice of
intention to
nominate directors
2021 2022 1H 2023
June 2023
Francis Mitchell
appointed SVP,
Treasurer and Chief
Investment Officer;
Brian Doran joins as
General Counsel
1. Mr. Hill’s letter of resignation was dated July 6, 2022, but was not effective until August 8, 2022.
2023-2025 Strategic Plan
11
We Have Substantially Refreshed the Leadership Team
We have refreshed the management team and organizational structure to add and promote
new talent to execute on our strategy
JULY 2021 JULY 2023
Michael W. Harrington
EVP, CFO
Dec. 2022
Thomas X. Geisel
President & CEO
Dec. 2022
Sharon Hammel
EVP, Chief Retail Officer
2017
1
Jay Neilon
EVP, Chief Credit Officer
2012
1
Steve McWilliams
EVP, Chief Lending Officer
2022
1
Tracie Young
EVP, Chief Risk Officer
2015
1
Brian F. Doran, Esq.
EVP, General Counsel
2023
Frank A. Cavallaro
EVP, CFO
Vernon W. Hill II
Chair & CEO
Sharon Hammel
EVP, Chief Retail Officer
Jay Neilon
EVP, Chief Credit Officer
Andrew Logue
President & COO
Tracie Young
EVP, Chief Risk Officer
Source: Company documents.
1. Represents year in which they were promoted to a new role or assumed new responsibilities within the organization.
Francis Mitchell
SVP, Treasurer and Chief
Investment Officer
2023
Michael LaPlante
SVP, Chief Accounting
Officer
2023
2023-2025 Strategic Plan
We Are Executing on a New Strategy
12
Topic Previous Management’s Strategy Our New Strategy
Branch footprint
▪
Focused on aggressive expansion of the Company’s
branch footprint, including into the challenging New
York City market, which required significant capital
and led to a lack of focus
▪ Exit non-core markets, consolidate branches and
refocus on the Company’s core metropolitan
Philadelphia and Southern New Jersey markets
Lending activity
▪ Developed an active mortgage lending business,
specializing in jumbo mortgage products with
aggressive rates, which had higher risk and lower
risk-adjusted rates of return than other asset
classes
▪ Wind down and exit the mortgage origination
business
Balance sheet
▪ Grew the balance sheet significantly to support
expansion, which put pressure on capital ratios
▪ Stabilize and shrink the balance sheet
▪ Build, maintain and manage capital
Asset portfolio
▪ Invested heavily in long-dated, fixed-
rate mortgage
bonds and expanded the jumbo mortgage loan
portfolio (at below-market rates and when interest
rates were at long-term lows), the value of which
have declined substantially in a rising rate
environment
▪ Attempt to sell the bonds at attractive prices or
allow them to roll off the balance sheet
▪ Increase hedging to mitigate risk
2023-2025 Strategic Plan
Republic First Is a Compelling Investment
13
Current Valuation
1
1. Source: FactSet. Data as of July 14, 2023.
1.46x
1.29x
1.19x
1.04x
0.99x
0.98x
0.92x
0.90x
0.87x
0.86x
0.79x
0.77x
0.75x
0.75x
0.74x
0.72x
0.68x
0.57x
0.25x
Peer Median:
0.87x
TMP STBA PFIS AMAL AROW PGC MPB TRST UVSP CCNE NFBK CNOB MCB FISI FLIC KRNY BCBP FFIC FRBK
P/TBV
Our Strong
Foundation
for Growth
Section Two
2023-2025 Strategic Plan
Our Areas of Strength Support a Path to Sustainable Growth
15
Strong customer relationships and market position
Disciplined credit culture and strong asset quality
Balanced, diversified loan portfolio
Stable team and strong technology base
Experienced, recently refreshed leadership team
1
2
3
5
4
2023-2025 Strategic Plan
16
We Have a Strong Position in Our Core Markets
1
County State Rank (Deposits)
1
Share of Deposits
1
Bucks
PA 22 0.8%
Delaware
PA 9 1.6%
Montgomery
PA 13 1.4%
Philadelphia
PA 10 1.3%
Atlantic
NJ 8 2.5%
Burlington
NJ 7 5.5%
Camden
NJ 4 9.3%
Cape May
NJ 11 0.1%
Gloucester
NJ 6 5.6%
▪ The Company’s primary service area consists of the Greater
Philadelphia and Southern New Jersey markets, in which we have
a strong position, ideally situated between the large national
banks and smaller local institutions
▪ We are the 9th-ranked bank across these markets based on
deposits, ahead of significantly larger institutions like M&T, Truist
and KeyBanc
1
▪ In the Company’s core markets, we have 2.4% market share
based on a percentage of deposits
1
▪ We believe there are significant opportunities in Republic’s core
markets for a commercially focused hometown bank with local
decision-making, superior customer service and significant scale
1. Source: FDIC Summary of Deposits. Data as of June 30, 2022.
2. As of July 14, 2023.
Jersey Shore
Total Deposits in
PA/NJ Markets
2
Branches in
Philadelphia
MSA
2
Rank by Total
Deposits in
PA/NJ Markets
1
$4.9B 33
9
th
2023-2025 Strategic Plan
17
Current Capital Ratios
2
Capital Position
1
▪ Republic Bank’s capital ratios are all in excess of
regulatory minimums
▪ Republic Bank employs a disciplined approach to
managing capital, balancing considerations of
efficiency and shareholder value against risk appetite
and regulatory standards
▪ Tangible capital is currently negatively impacted by
unrealized losses on the bond position built under the
prior leadership team
▪ We are in the process of repositioning and reducing
the size of the balance sheet, which we expect to lead
to higher capital ratios
▪ Our current strategy is to manage the business as if
no new capital is raised; we are focused on capital
preservation and deployment of capital to initiatives
with the highest risk-adjusted returns
1. Source: Company documents. Data as of March 31, 2023.
10.42%
9.67%
8.36%
5.45%
3.20%
10.00%
8.00%
6.50%
5.00%
Total Capital Tier 1 Capital CET1 Tier 1 Leverage TCE
FRBK Regulatory Well Capitalized
2023-2025 Strategic Plan
18
We Have a Disciplined Credit Culture
2
Nonperforming Assets / Total Assets
1
Loan Loss Reserves / Total Loans
1
▪ We have a strong risk management culture and credit
framework established throughout the organization,
with consistent policies and underwriting standards
▪ The loan portfolio has grown significantly over the last
few years while non-performing assets have declined
▪ The Company’s historically conservative credit culture
supports asset quality entering a potential recession
1. Source: FactSet, Bloomberg and Company documents. Peers include Amalgamated Financial, Arrow Financial, BCB Bancorp, CNB Financial, ConnectOne Bancorp, Financial Institutions, First
of Long Island, Flushing Financial, Kearny Financial, Metropolitan Bank, Mid Penn Bancorp, Northfield Bancorp, Peapack-Gladstone Financial, Peoples Financial Services, S&T Bancorp,
Tompkins Financial, TrustCo Bank and Univest Financial.
0.59%
0.53%
0.48%
0.75%
0.77%
0.80%
0.93%
0.88%
1.15%
1.06%
1.01%
0.98%
2018 2019 2020 2021 2022 Q1 2023
FRBK Peer Median
0.60%
0.42%
0.28%
0.24%
0.30%
0.31%
0.43%
0.42%
0.44%
0.30%
0.29%
0.35%
2018 2019 2020 2021 2022 Q1 2023
FRBK Peer Median
2023-2025 Strategic Plan
19
We Have a Robust, Diversified Loan Portfolio
3
Loans by Type ($M)
1
▪ Recently completed third party loan review
covered more than 70% of commercial (including
C&I) loan portfolio
▪ Strict underwriting criteria and proactive credit
monitoring supported by results of outside loan
review and credit quality metrics
▪ Current loan loss reserve covers >100% of third
party loan review estimated portfolio losses under
Moody’s Base Case economic scenario
▪ Annual internal review conducted on all
relationships >$3mm
▪ Limited exposure to commercial and office real
estate:
– Investor CRE is less than 30% of the current
loan portfolio; office assets are less than 7%
– Total office CRE represents less than 10% of
all commercial loans
– NYC office CRE represents less than 1% of
total CRE
$965
$1,162
$1,437
$1,748
$2,658
$2,514
$3,136
2016 2017 2018 2019 2020 2021 2022
Paycheck Protection Program
Residential Mortgage
Consumer & Other
Owner Occupied Real Estate
Commercial & Industrial
Construction & Land Development
Commercial Real Estate
Loan Collateral Composition
1
$330
$277
$260
$203
$125
$122
$349
Retail
Office
Construction
Industrial
Hospitality
Multifamily
Other (Incl. 1-4 Family Investor)
1. Source: Company documents. Data as of December 31, 2022.
2023-2025 Strategic Plan
20
We Have a Stable and Engaged Team
▪ The Company’s employee base remains resilient and engaged despite external challenges
– Republic Bank continues to be a preferred place of employment in the metropolitan Philadelphia market; we were
named one of the “Top Workplaces” by the Philadelphia Inquirer in 2018, 2019, 2020, 2022 and 2023
– Our new leadership team is committed to newly empowering Republic’s people with the information and freedom
they need to make optimal decisions for customers and other stakeholders
– The senior executive team has been retained, with no unplanned executive departures since the new leadership team
was put in place
– Current leadership team has a strong mix of fresh perspectives and valuable institutional knowledge and experience
within the Company
– We are updating our incentive model that helps us attract and retain talented people and better reward measurable
performance and success
4
2023-2025 Strategic Plan
21
We Have a Strong Technology Base
▪ We leverage the Company’s culture of “fanatic” customer service and enhance it with technology
– We are enhancing non-interest income with enhanced Treasury Management services with focus on payments
facilitation / integration and expanded services including interest rate derivatives (IRD) and Foreign Exchange (FX)
– We are leveraging the existing technology platform to deploy new digital and technology tools that support and
enhance the customer experience, including payments integration
4
2023-2025 Strategic Plan
22
We Have the Right Team to Execute Our Strategy
5
Thomas X. Geisel
President, CEO & Director
Joined Dec. 2022
Michael W. Harrington
EVP, Chief Financial Officer
Joined Dec. 2022
Sharon Hammel
EVP, Chief Retail Officer
Joined 2012
Steve McWilliams
EVP, Chief Lending Officer
Joined 2009
Jay Neilon
EVP, Chief Credit Officer
Joined 2009
Tracie Young
EVP, Chief Risk Officer
Joined 2010
Brian F. Doran, Esq.
EVP, General Counsel
Joined 2023
Francis Mitchell
SVP, Treasurer & Chief Investment Officer
Joined 2023
Michael LaPlante
SVP, Chief Accounting Officer
Joined 2023
▪ 29 years in financial services
▪ Previously held senior executive positions at Webster Bank
▪ Earlier in his career, served as President & CEO of Sun
Bancorp and President of the Northeast region at KeyCorp
▪ 30 years in financial services
▪ Previously served as President of Republic Bank’s
Philadelphia Metro Market
▪ Joined Republic from Commerce Bank, where he served
as a Vice President
▪ 36 years in financial services
▪ Previously served as Banker-in-Residence at JAM Special
Opportunity Ventures
▪ Held CFO roles at Bryn Mawr Trust Co., Susquehanna
Bancshares & First Niagara
▪ 47 years in financial services
▪ Has been a local banker in the Philadelphia area for over
30 years
▪ Previously served in a variety of roles at Commerce Bank
and Fidelity Bank
▪ 25 years in financial services
▪ Responsible for leading Republic’s consumer lending,
marketing, branch administration and other functions
▪ Previously Sr. Retail Market Manager at Commerce Bank
▪ 31 years in financial services
▪ Responsible for leading Republic’s compliance and risk
departments
▪ Previously Director of Internal Audit and Risk Management
at Harleysville National Bank
▪ 24 years in financial services
▪ Previously served as Chief Administrative Officer, General
Counsel and Corporate Secretary at Investors Bank
▪ Served as a Senior Associate at Jones Day and served as
Partner at McConnell Valdés
▪ 18 years in financial services
▪ Previously served as Director, Fixed Income & Depositary
Strategies at Truist
▪ Also served in Treasury and Portfolio Management roles at
Webster Bank and TD
▪ 28 years in financial services
▪ Experienced Chief Accounting Officer, having previously
worked at Bryn Mawr Trust and Bank of Princeton
▪ Previously held senior accounting roles at Deloitte and
RSM
Our Plan to
Refocus and
Execute
Section Three
2023-2025 Strategic Plan
Our Plan to Refocus and Execute
24
Drive Revenue Growth by Focusing on Core Strengths
Improve Focus and Efficiency
Realign Balance Sheet and Asset Portfolio
Strengthen and Deepen Customer Relationships
Build Trust with Stakeholders
1
2
3
4
5
2023-2025 Strategic Plan
Drive Revenue Growth by Focusing on Core Strengths
25
1
Core Strength
Strategic Initiatives Benefits
Strong position in the
metropolitan
Philadelphia and
Southern NJ markets
▪ Focus on growing franchise value in metropolitan
Philadelphia and Southern New Jersey markets
▪ Exit non-core geographies and optimize branch footprint
+
Increased management focus
+
Stronger regional brand
+
Reduced expenses
Deep customer
relationships
▪ Leverage strong consumer deposit acquisition culture to
reposition deposit base
▪ Emphasize services to SMBs
+
Reduced reliance on wholesale
funds
+
Maximized risk-adjusted returns
and diversified loan portfolio
Customer service focus
▪ Expand and enhance service offerings, with a focus on
payments facilitation/integration
▪ Leverage technology to improve customer experience
and improve colleague efficiency
+
Increased non-interest income
+ Cost savings through streamlining
of back-office processes
+
More efficient client acquisition
Strong company culture
▪ Maintain high employee morale
▪ Update incentive compensation model to focus on
performance and success
+
Enhanced employee retention,
motivation and alignment
2023-2025 Strategic Plan
Improve Focus and Efficiency
26
2
Exit non
-
core businesses and
markets
▪ Exit residential mortgage business
▪ Reduce New York presence and reallocate front line and supporting staff
▪ Discontinue unprofitable products
Optimize branch footprint
▪ Reduce hours at branch locations to reflect customers’ growing use of digital solutions
▪ Optimize retail branch operations to improve efficiency while maintaining high levels of
customer service
▪ Eliminate redundant or unnecessary positions
Continue shift to digital
channels
▪ Invest in technology solutions and continue customer migration to digital channels
▪ Bring dispute processing in-house
▪ Convert customers from paper to eStatements
Normalize proxy
-
related and
other non
-recurring
expenses
▪ We expect proxy-related legal and professional fees and other non-recurring expenses to
normalize in the coming quarters, reducing non-interest expense
2023-2025 Strategic Plan
27
Improve Focus and Efficiency (Continued)
2
Efficiency Ratio
1
▪ We are implementing an organization-wide focus on
efficiency and expense discipline, which had not been
a priority for the previous leadership team
– Historically, the Company’s leadership had
focused heavily on expansion, with the idea that
top-line growth would eventually result in a
lower efficiency ratio
• The downside to this approach became
apparent when the Company pulled back
from its expansion strategy and growth
slowed due to macroeconomic conditions
and banking sector disruptions
▪ Our new leadership team is working to aggressively
reduce expenses and focus resources on strategic
priorities in order to improve operating results and
drive profitability to peer levels
– Spending on financial statement remediation
and shareholder matters is expected to decline
in the near- to mid-term
1. Source: FactSet and Company documents. Peers include Amalgamated Financial, Arrow Financial, BCB Bancorp, CNB Financial, ConnectOne Bancorp, Financial Institutions, First of Long
Island, Flushing Financial, Kearny Financial, Metropolitan Bank, Mid Penn Bancorp, Northfield Bancorp, Peapack-Gladstone Financial, Peoples Financial Services, S&T Bancorp, Tompkins
Financial, TrustCo Bank and Univest Financial.
87.0%
102.9%
91.7%
75.6%
86.9%
61.1%
60.1%
57.8%
56.1%
55.0%
2018-2022
Average
88.8%
2018 2019 2020 2021 2022
FRBK Peer Median
2023-2025 Strategic Plan
Realign Balance Sheet and Asset Portfolio
28
3
Restructure balance sheet
▪ Continuously evaluate portfolio for opportunities within the prevailing rate environment
▪ Sell securities and right-size balance sheet, including loan portfolio
▪ Evaluate branch and back-office real estate and drive reduction in investment
Realign loan and securities
portfolio; diversify asset
generation
▪ Reinvest cash flow from securities to fund loan growth
▪ Focus asset allocation on commercial products with diversified production, emphasizing
C&I, multifamily and specialty finance to optimize risk-adjusted returns
Reposition deposit base
▪ Stabilize deposit base with promotional rate offers targeting both consumers and SMBs
▪ Reduce reliance on wholesale funds
▪ Drive higher percentage of deposits from commercial customers
2023-2025 Strategic Plan
Strengthen and Deepen Customer Relationships
29
4
Leverage technology to
better serve customers
▪ More fully leverage capabilities from available technology already in place
▪ Develop and deploy online account opening capabilities for consumers and SMBs
▪ Operationalize technology solutions to drive improved customer experiences
Expand capabilities to
support commercial
businesses
▪ Expand commercial services (interest rate derivatives / foreign exchange)
▪ Enhance Treasury Management cross-sell and expand Payments offerings for SMBs
▪ Create syndication capabilities
Engage with the community
▪ Align CRA-related investments, sponsorships and corporate philanthropy with renewed
commitment to core markets
▪ Increase focus on community initiatives, such as financial literacy programming and
community events
▪ Enhance collaboration with stakeholders to ensure that the bank is meeting the
community’s financial services needs
Modify customer
engagement approach
▪ Transition to a single point-of-contact team model
2023-2025 Strategic Plan
Build Trust with Stakeholders
30
5
Fulfill regulatory obligations
and maintain compliance
▪ Enhance internal controls environment
▪ File 2022 10-K by August 15, 2023 and hold 2022 Annual Meeting on October 5, 2023
▪ File Q3 2023 10-Q and become current on all filings by the end of 2023
Improve communications
with investors and analysts
▪ Enhance engagement with current and prospective investors and the sell-side community
▪ Enhance investor-facing materials and begin attending industry events and conferences
▪ Communicate strategic plan and attract new, long-term investors
Augment company culture to
support success
▪ Update incentive model to help attract and retain talent and better reward measurable
performance and success
▪ Strategically acquire new talent to support transformation
▪ Collect and integrate employee feedback to boost engagement
2023-2025 Strategic Plan
We Believe Our Strategy Will Drive Sustainable Value
31
Return on Average Assets
1
Efficiency Ratio
1
Our goal: Create a diverse and digitally fluent commercial bank that provides an exceptional
client and colleague experience
▪ By executing on our strategy, we believe we can drive
significant operating leverage and reposition the
Company for profitable growth
▪ The near-term focus is on fortifying our foundation—
people, capital and liquidity—and identifying
immediate efficiency opportunities
▪ In parallel with stabilizing and reorienting the
business, we are leveraging the strengths of the
Republic brand and strong consumer deposit culture
to drive sustainable and profitable growth
▪ We are confident that, over the mid-term, we can
grow returns and improve efficiency levels to
approach those of our peers
0.21%
1.0%
2022 Actual Mid-Term Target
87%
<60%
2022 Actual Mid-Term Target
1. Source: Company documents.
Conclusion
Section Four
2023-2025 Strategic Plan
Our Areas of Strength Support a Path to Sustainable Growth
33
Strong customer
relationships and
market position
▪ Strong position in core Pennsylvania and New Jersey markets as one of the top banks based on
deposits
▪ Serving communities with stable and growing populations in markets that we know well and in which
we have a strong reputation
Disciplined credit
culture and strong
asset quality
▪ Strong risk management culture and credit framework, with consistent policies and underwriting
standards
▪ Conservative credit culture supports asset quality
Balanced, diversified
portfolio
▪ Strict underwriting criteria and proactive credit monitoring
▪ Diversified portfolio limits risk ahead of a potential recession
Stable team and
strong technology
base
▪ High employee morale and retention
▪ Good treasury management product set and expansive technology suite
Experienced, recently
refreshed leadership
team
▪ Recently refreshed the leadership team with experienced CEO, CFO and General Counsel to develop
and execute a new strategy and lead the Company forward
▪ Augmented the Board with new perspectives and experiences, including appointing a new director
recommended by one of the Company’s largest shareholders; appointed new Chairman with
significant ownership, further aligning the Company’s leadership with shareholder interests
1
2
3
5
4
2023-2025 Strategic Plan
Our Plan to Refocus and Execute
34
Drive Growth by
Focusing on Core
Strengths
▪ Leverage the Company’s market position and brand in the metropolitan Philadelphia and Southern New
Jersey markets
▪ Continue Republic’s tradition of deep relationships and of providing “fanatic” customer service
Improve Focus and
Efficiency
▪ Exit non-core businesses and markets
▪ Optimize branch footprint
▪ Continue shift to digital channels
▪ Normalize proxy-related and other non-recurring expenses
Realign Balance
Sheet and Asset
Portfolio
▪ Restructure balance sheet
▪ Right-size loan and securities portfolio; diversify asset generation
▪ Reposition deposit base
Strengthen and
Deepen Customer
Relationships
▪ Leverage technology and digital capabilities to drive new business development
▪ Expand capabilities to support commercial businesses
▪ Engage with the community
Build Trust with
Stakeholders
▪ Fulfill regulatory obligations and maintain compliance
▪ Improve communications with investors and analysts
▪ Update and align incentive compensation structure and augment company culture to support success
1
2
3
4
5
Appendix:
Board of
Directors
Section Five
2023-2025 Strategic Plan
36
We Have an Experienced, Highly Qualified Board
Andrew B. Cohen, Chair
Director Since 2017; Chair Since 2023
Peter B. Bartholow
Director Since 2022
Benjamin C. Duster, IV
Director Since 2022
Thomas X. Geisel
President, CEO and Director Since 2022
Lisa Jacobs
Director Since 2017
Harry D. Madonna
Director Since 1988
Harris Wildstein
Director Since 1988
▪ Chief Investment Officer and Co-Founder of Cohen Private
Ventures
▪ Previously served as a Partner and Managing Director at
Dune Capital Management
▪ Vice Chair of the board and Chair of the Compensation
Committee at Laureate Education
▪ Seasoned and innovative leader with 29 years of
experience in financial services
▪ Previously held senior executive positions at Webster Bank,
including President of Corporate Banking
▪ Earlier in his career, served as President & CEO of Sun
Bancorp and President of the Northeast region at KeyCorp
▪ Served in a variety of roles at Texas Capital Bancshares,
including COO, CFO and director
▪ Former President, CEO & Chair of MCorp and CFO of First
USA
▪ Previously served as Corporate VP of Finance at EDS
▪ Partner at Stradley Ronon Stevens & Young
▪ Republic Bank’s corporate secretary since May 2022
▪ Was previously a Partner at DLA Piper and Pepper
Hamilton
▪ Vice Chair of Greater Philadelphia YMCA; previously on the
board of the Women Business Collaborative (2019-2021)
▪ Founder of Cormorant IV Corporation and CFO of Mobile
Tech, Inc.
▪ Experienced public company director, having served on
the boards of Chesapeake Energy, Cardone Industries and
Weatherford International
▪ Serves on the board of the 1921 Institute
▪ Founder of Republic Bank and has served on the Board
continuously and in a variety of executive roles, including
the CEO and Chair roles
▪ Previously a Partner at Blank Rome LLP and counsel at
Spector Gadon & Rosen
▪ Owner and officer of Lifeline Funding, a pre-settlement
funding organization
▪ Vice President of R&S Imports, Ltd. and President of HVW,
Inc., both automobile dealerships, since 1977 and 1982,
respectively
Appendix:
Q1 2023 Financial
Highlights
Section Five
2023-2025 Strategic Plan
Q1 2023 Financial Highlights
38
YoY Financial Comparison
▪ Net interest income was $24.0 million in Q1 2023, 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, an increase in the
average balance of higher cost short term borrowings and a
9.4% year-over-year decline in average noninterest bearing
deposit balances
▪ Non-interest income (excluding the impact of a loss on a
preferred equity investment) was $4.4 million in the first quarter,
a 0.5% increase from the $4.3 million recognized in Q1 2022
▪ Non-interest expense excluding extraordinary legal, audit and
other professional fees related to ongoing legacy litigation and
shareholder matters was approximately $31.7 million,
representing a 1.5% decline from Q1 2022 reported non-interest
expense of $32.2 million, as management’s strategic efficiency
initiatives delivered positive results
▪ Operating earnings per share for the period declined to -$0.05
from $0.08 for Q1 2022, primarily driven by the $12.1 million
decline in net interest income
▪ Equity excluding accumulated other comprehensive income
declined $4.2 million YoY as the Q1 2023 net loss more than
offset positive reported 2022 earnings
Dollars
in thousands except per share data
Q1 2023 Q1 2022
Balance Sheet Summary
Gross Loans
$3,139,418
$2,557,167
Total Deposits
4,878,239
5,310,236
Total Equity
196,795
275,736
Total Equity (Excluding AOCI)
1
333,374
337,572
Income Statement
Summary
Net Interest Income
$23,993
$36,140
Provision Expense
43
(72)
Loss on Signature Bank Preferred Equity Investment
(3,100)
$0
Other Non-interest Income
4,369
4,347
Extraordinary Legal, Audit and Other Professional
Fees
5,500
0
Other Non-interest Expense
31,715
32,195
Pre
-tax Income
(12,396)
8,364
Tax Expense
(3,320)
2,129
Net Income
(9,076)
6,235
Preferred Dividends
644
866
Net Income to Common
(9,720)
5,369
EPS
($0.15)
$0.08
Operating Income Metrics
Operating Net
Income to Common
1, 2
($3,423)
$5,369
Operating EPS
1
($0.05)
$0.08
Source: Company documents.
1. Non-GAAP financial metric. Please refer to the Appendix for non-GAAP reconciliations.
2. Excludes loss on preferred equity investment in Signature Bank and extraordinary legal, audit and other professional fees. Assumes a 26.8% effective tax rate on operating income
adjustments, equal to the reported Q1 2023 effective tax rate. See Appendix for full reconciliation.
Appendix:
Peer Group Data
Section Five
2023-2025 Strategic Plan
Peer Group Data
40
Peers include major exchange-traded banks headquartered in NJ, NY and PA with total assets
between $3 billion and $10 billion; excludes merger targets and mutuals
General Information Market Data
Name
Ticker Headquarters Employees Branches Assets ($M) Deposits ($M) Market Value ($M) P/TBV
ConnectOne Bancorp, Inc.
CNOB
Englewood Cliffs, NJ
515
24
$9,960
$7,753
$664
0.77x
S&T Bancorp, Inc.
STBA
Indiana, PA
1,182
73
$9,193
$7,153
$1,096
1.29x
Flushing Financial Corporation
FFIC
Uniondale, NY
560
25
$8,479
$6,734
$370
0.57x
Kearny Financial Corp.
KRNY
Fairfield, NJ
596
45
$8,349
$5,803
$486
0.72x
Amalgamated Financial Corp
AMAL
New York, NY
409
5
$7,836
$7,041
$524
1.04x
Tompkins Financial Corporation
TMP
Ithaca, NY
1,072
60
$7,644
$6,509
$815
1.46x
Univest Financial Corporation
UVSP
Souderton, PA
973
37
$7,359
$5,835
$542
0.87x
Peapack
-Gladstone Financial Corporation
PGC
Bedminster, NJ
498
16
$6,480
$5,309
$500
0.98x
Metropolitan Bank Holding Corp.
MCB
New York, NY
239
6
$6,310
$5,132
$458
0.75x
TrustCo
Bank Corp NY
TRST
Glenville, NY
754
143
$6,046
$5,212
$550
0.90x
Financial Institutions, Inc.
FISI
Warsaw, NY
672
48
$5,967
$5,141
$249
0.75x
Northfield Bancorp, Inc.
NFBK
Woodbridge, NJ
400
38
$5,663
$3,847
$522
0.79x
CNB Financial Corporation
CCNE
Clearfield, PA
759
47
$5,583
$4,754
$379
0.86x
Mid Penn Bancorp, Inc.
MPB
Harrisburg, PA
611
43
$4,583
$3,878
$359
0.92x
First of Long Island Corporation
FLIC
Glen Head, NY
303
41
$4,188
$3,399
$275
0.74x
Arrow Financial Corporation
AROW
Glens Falls, NY
-
-
$3,970
$3,498
$328
0.99x
Peoples Financial Services Corp.
PFIS
Scranton, PA
415
28
$3,678
$3,236
$316
1.19x
BCB Bancorp, Inc.
BCBP
Bayonne, NJ
301
27
$3,763
$2,867
$199
0.68x
Republic First Bancorp, Inc.
FRBK
Philadelphia, PA
556
34
$6,157
$4,878
$49
0.25x
Average
603
42
$6,392
$5,172
$480
0.91x
Median
560
38
$6,178
$5,177
$472
0.87x
1. Source: FactSet. Data as of July 14, 2023.
Appendix:
Reconciliation of
GAAP and Non-
GAAP Measures
Section Five
2023-2025 Strategic Plan
Price/Tangible Book Value
42
Price/Tangible Book Value
Non
-GAAP Financial Metric Reconciliation to GAAP
(dollars in thousands, except for share data)
TBV on 3/31/2023
Total shareholders equity
$196,795
Less: goodwill
$0
Non
-GAAP tangible common equity (numerator)
$196,795
Common shares outstanding, end of Period (denominator)
63,867,092
Non
-GAAP tangible book value per common share
$3.08
P/TBV on 5/26/2023
Closing common share price 5/26/2023 (numerator)
$1.48
Non
-GAAP tangible book value per common share 3/31/2023 (denominator)
$3.08
Non
-GAAP price/tangible book value (P/TBV)
0.48x
2023-2025 Strategic Plan
Efficiency Ratio
43
Efficiency Ratio
Non
-GAAP Financial Metric Reconciliation to GAAP
(dollars in thousands)
As of or for the Years Ended December 31,
Revenue
2018
2019 2020 2021 2022
Net interest income
$75,904
$77,807
$91,832
$129,212
$145,474
Total noninterest income
$20,322
$23,738
$36,235
$32,745
$19,854
Non
-GAAP revenue
$96,226
$101,545
$128,067
$161,957
$165,328
Efficiency Ratio
Total noninterest expense (numerator)
$83,721
$104,490
$117,423
$122,505
$143,592
Non
-GAAP revenue (denominator)
$96,226
$101,545
$128,067
$161,957
$165,328
Non
-GAAP efficiency ratio
87.0%
102.9%
91.7%
75.6%
86.9%
2023-2025 Strategic Plan
Operating Net Income
44
Operating Net Income
Non
-GAAP Financial Metric Reconciliation to GAAP
(dollars in thousands, except per share data)
As of or for the Quarters Ended March 31,
2023 2022
Net Interest Income
$ 23,993
$ 36,140
Provision Expense
443
(72)
Non
-Interest Income
1,269
4,347
Non
-Interest Expense
37,215
32,195
Pre
-Tax Income
(12,396)
8,364
Plus: Write
-down from Signature Bank Securities
3,100
-
Plus: Legal and Professional Fees Related to Shareholder Matters
5,500
-
Operating Pre
-Tax Income
(3,796)
8,364
Less: Tax Expense
(1,017)
2,129
Operating Net Income
(2,779)
6,235
Less: Preferred Dividends
644
866
Operating Net Income to Common
(3,423)
5,369
Basic Shares Outstanding
63,867,092
63,739,566
Operating EPS
$ (0.05)
$ 0.08