Republic First Bancorp in Philadelphia is getting out of the mortgage business.
The $6.2 billion-asset company also said in a press release that it cut an undisclosed number of jobs in its New York lending and credit teams under an effort to streamline its operations in the market.
Republic First said its mortgage business primarily consisted of aggressively priced long-term jumbo mortgages that “no longer aligns with the company’s preference for shorter-duration and better risk-adjusted return” assets.
Streamlining the New York operations will allow the bank to focus more resources on its core Philadelphia market.
“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,” Thomas Geisel, the company’s newly hired president and CEO, said in the release.
“While these were difficult decisions … we strongly believe they are in the best interests of the company,” he added. “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.”
Republic First recently reported a $9.7 million first-quarter loss that reflected elevated legal expenses and an investment in the failed Signature Bank.