The Bank Slate


Republic First reports 1Q loss on legal costs, SBNY investment

Republic First Bancorp in Philadelphia reported a $9.7 million first-quarter loss that reflected elevated legal expenses and an investment in the failed Signature Bank.

The $6.2 billion-asset company said in a press release that it had a $3.1 million writedown tied preferred stock in Signature and $5.5 million of legal, professional and audit fees.

The company lost $398,000 in the fourth quarter and earned $5.4 million a year earlier.

“We are highly focused on executing our strategy to restore profitability, improve capital levels and enhance shareholder value – and are seeing signs of progress as we move through the company’s legacy headwinds,” Thomas Geisel, Republic First’s president and CEO, said in the release.

“The results aren’t where we want them to be yet, but I am proud of our colleagues’ commitment to Republic’s customers and their ongoing efforts to weather the current environment and lay the foundation for a successful future,” he added.

Republic First, which recently announced plans to raise capital, said its board had suspended dividends on its perpetual non-cumulative convertible preferred stock. The company also deferred interest payments on two issuances of floating-rate junior subordinated debt.

Finally, Republic First said it is planning a “meaningful” business realignment and an efficiency initiative to improve profitability and refocus on its core businesses.

Deposits fell by 2.7% from the end of last year, to $4.9 billion, though the company said deposit levels have risen since March 31.

Leave a Reply

Your email address will not be published. Required fields are marked *