Philadelphia-based Republic First Bancorp announced plans to exit the mortgage origination business. The bank has historically offered a “long-term jumbo mortgage product, priced at aggressive rates.” It stated these products, however, are no longer in alignment with the company’s preference for shorter duration and better risk-adjusted return asset classes.
Republic First stated it intends to continue supporting local communities through various Community Reinvestment Act initiatives driven through its core business lines.
“When I became CEO, I articulated a clear strategy to focus on our core business lines in our core markets,” President and CEO of Republic First Thomas Geisel said. “In our recent first quarter 2023 earnings report, we noted that we would be executing meaningful business realignment and efficiency initiatives to grow profitability, allow us to better serve our customers and create value for shareholders and all stakeholders.
“While these were difficult decisions – especially because of the inherent reduction in force required – we strongly believe they are in the best interests of the Company and will allow us to build a strong foundation for the future. I would like to extend a sincere word of gratitude to our dedicated employees who will continue to drive our success.”
The company also said it is streamlining its lending business in New York. This will involve cutting jobs in its New York lending and credit teams and plans to focus on stronger commercial relationships around its core Philadelphia market.
In its first quarter financial statements, Republic First reported a $9.7 million loss, due in part to a $3.1 million write-down of an investment in Signature Bank preferred securities following its failure on March 12.