FRBK - Republic First Bancorp exits legacy mortgage origination unit

2023-05-05 11:49:23 ET

Republic First Bancorp ( NASDAQ: FRBK ) is exiting its legacy mortgage origination business as it does not align with the regional lender's preference for shorter-maturity and better risk-adjusted return asset classes, it said Friday.

The Philadelphia-based bank said historically the platform primarily offered a long-term jumbo mortgage product that is "high-cost" in nature and "is no longer consistent with the Company’s strategy for enhancing profitability and dedicating more resources to core business lines."

In addition, the company will streamline its commercial lending activities in New York City, including reducing the size of its workforce within New York Lending and Credit teams.

FRBK gained 2.9% in late morning trading, but plunged 81.9% from a year ago. Take a deep dive into the Quant system rating.

"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," said President and CEO Thomas X. Geisel.

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