Republic First Bancorp, the holding company of Republic First Bank, which does business as Republic Bank, will exit its legacy mortgage origination business while simultaneously reducing the size of its New York lending and credit teams.
While exiting its legacy mortgage origination business, the bank will continue to support communities through various Community Reinvestment Act initiatives driven through its core business lines. Historically, Republic’s mortgage origination business primarily offered a long-term jumbo mortgage product, priced at aggressive rates. According to the bank, this product no longer aligns with its preference for shorter duration and better risk adjusted return asset classes, and the high-cost nature of a jumbo mortgage origination platform is no longer consistent with its strategy for dedicating more resources to core business lines.
“When I became CEO, I articulated a clear strategy to focus on our core business lines in our core markets. 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. Today’s updates represent important steps in that direction,” Thomas X. Geisel, president and CEO of Republic First Bancorp, said. “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.
“I am excited about our opportunities that lay ahead to build an even stronger Republic Bank. We are committed to updating the market and our shareholders on an ongoing basis on business developments as we take decisive actions to execute our strategy.”
