Driver Management Releases Letters Sent to the Board of Directors of Republic First Bancorp, Inc.

Rhea-AI Summary

Driver Management Company, a significant shareholder of Republic First Bancorp (FRBK), has issued two letters to the Board of Directors expressing concerns about CEO Vernon Hill's proposed capital raise. They argue this move would be highly dilutive for existing shareholders, as it aims to support a flawed business model that has historically resulted in poor performance.

Driver emphasizes the need for shareholders to voice their concerns to the Board, fearing a repetition of the issues seen with Metro Bank under Hill's leadership.

Positive

• Potential for increased shareholder engagement with the Board regarding operational strategies.

Negative

• Concerns about a highly-dilutive capital raise that could negatively impact existing shareholders.
• Historical underperformance of the company under Vernon Hill's leadership.
• Risk of repeating past mistakes similar to those experienced with Metro Bank.

Believes Board Must Prevent CEO Vernon Hill From Orchestrating a Repeat of the Widely-Reported Metro Bank Disaster

Hopes Fellow Shareholders Contact the Board Regarding Mr. Hill’s Desired Capital Raise, Which Would be Highly-Dilutive and Utilized to Support a Fundamentally Flawed Business Model

NEW YORK--(BUSINESS WIRE)-- Driver Management Company LLC (together with its affiliates, “Driver” or “we”), a sizable shareholder of Republic First Bancorp, Inc. (NASDAQ: FRBK) (“Republic” or the “Company), today released two letters recently sent to the Company’s Board of Directors (the “Board”). The letters can be downloaded and reviewed at www.drivermanagementcompany.com.

Abbott Cooper, Driver’s Managing Member, stated:

“We are deeply troubled by the prospect of Republic pursuing a highly-dilutive capital raise – at the direct expense of existing shareholders – to support a flawed business model that has produced dismal returns for far too long. It is not lost on shareholders that a dollar invested in Republic five years ago is worth significantly less today. We question how any board of directors could even consider subjecting shareholders to punitive dilution on the heels of such significant underperformance. We urge the Board to prevent Vernon Hill from diluting shareholders and leading Republic down the path of Metro Bank, which saw massive destruction of shareholder value as a result of Mr. Hill’s obsession with an unworkable business model.

We have sent two letters to the Board detailing the reasons why it should abandon any plans for a capital raise. Both letters were sent in compliance with the procedures for communicating with directors that have been outlined in Republic’s proxy statements. We are troubled by the fact that we have not yet received confirmation from management that our letters have been delivered to the Company’s directors. We are now sharing our letters with the market, and we hope any shareholders with similar concerns about the value of their investment will contact the Board immediately. We suspect other investors are just as fearful as we are that Mr. Hill will repeat his recent history at Republic.”

About Driver Management Company

Driver employs a valued-oriented, event-driven investment strategy that focuses exclusively on equities in the U.S. banking sector. The firm’s leadership has decades of experience advising and engaging with bank management teams and boards of directors on strategies for enhancing shareholder value. For information, visit www.drivermanagementcompany.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006191/en/

MKA

Greg Marose / Charlotte Kiaie, 646-386-0091

driver@mkacomms.com

Source: Driver Management Company LLC

FAQ

What concerns does Driver Management have about Republic First Bancorp's capital raise?

Driver Management is worried that the proposed capital raise would be highly dilutive to existing shareholders and would support a flawed business model.

What is the stance of Driver Management on CEO Vernon Hill's leadership?

Driver Management has expressed significant concerns about Vernon Hill's leadership, citing a history of poor performance and fears of repeating past mistakes.

What actions is Driver Management taking regarding its concerns?

Driver Management has sent two letters to the Board of Republic First Bancorp urging them to prevent the capital raise and is encouraging other shareholders to voice their concerns.

How has Republic First Bancorp performed under Vernon Hill's leadership?

The company has experienced dismal returns over the last five years, with significant value loss for shareholders.