Republic First Bancorp, Inc. Announces Business Updates to Advance Strategy of Focusing on Core Services and Markets
May 05 2023 - 8:30AM
Republic First Bancorp, Inc. (NASDAQ: FRBK) (the “Company” or
“Republic First”), the holding company for Republic First Bank
d/b/a Republic Bank, today announced actions that it has taken in
furtherance of management’s strategy to better serve customers,
focus resources on core business lines and markets, increase
profitability and create value for shareholders.
Exit of Mortgage Origination
Business
- Republic Bank will exit its legacy
mortgage origination business. The Bank will continue to support
local communities through various Community Reinvestment Act
initiatives driven through its core business lines. Historically,
this platform’s primary offering was a long-term jumbo mortgage
product, priced at aggressive rates, which no longer aligns with
the Company’s preference for shorter duration and better risk
adjusted return asset classes. Further, the high-cost nature of a
jumbo mortgage origination platform is no longer consistent with
the Company’s strategy for enhancing profitability and dedicating
more resources to core business lines.
Streamlining NYC Commercial Lending
Business
- The Company will streamline its
commercial lending business in New York City and has made
commensurate reductions in force in its New York Lending and Credit
teams. This action will allow Republic Bank to focus on its strong
commercial relationships in and around the Bank’s core Philadelphia
Metropolitan area market, serving clients domiciled here who have
businesses inside and outside the region.
Thomas X. Geisel, President and CEO of Republic
First Bancorp, Inc., stated:
“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.
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.”
About Republic First Bancorp,
Inc.
Republic First Bancorp, Inc. is the holding
company for Republic First Bank, which does business under the name
Republic Bank. Republic Bank is a full-service, state-chartered
commercial bank, whose deposits are insured up to the applicable
limits by the Federal Deposit Insurance Corporation (FDIC). The
Bank provides diversified financial products through its
thirty-four stores located in Greater Philadelphia, Southern New
Jersey, and New York City. Republic Bank offers free checking, coin
counting, safe deposit boxes, ATM/debit cards issued on the spot
and access to more than 55,000 surcharge free ATMs worldwide via
the Allpoint Network.
Forward Looking Statements
The Company may from time to time make written
or oral “forward-looking statements”, including statements
contained in this release and in the Company’s filings with the
SEC. These forward-looking statements include statements with
respect to the Company’s beliefs, plans, objectives, goals,
expectations, anticipations, estimates, and intentions that are
subject to significant risks and uncertainties and are subject to
change based on various factors, many of which are beyond the
Company’s control. These factors include competition, timing,
credit risks of lending activities, changes in general economic
conditions, price pressures on loan and deposit products, the
failure to consummate the Capital Raise, and other factors detailed
from time to time in the Company’s filings with the SEC. The words
“may”, “could”, “should”, “would”, “believe”, “anticipate”,
“estimate”, “expect”, “intend”, “plan”, and similar expressions are
intended to identify forward-looking statements. All such
statements are made in good faith by the Company pursuant to the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. The Company does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by or on behalf of the Company, except as
may be required by applicable law or regulations.
Contacts
Longacre Square PartnersJoe Germani / Greg Marose,
646-386-0091jgermani@longacresquare.com /
gmarose@longacresquare.com
Republic First Bancorp (NASDAQ:FRBK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Republic First Bancorp (NASDAQ:FRBK)
Historical Stock Chart
From Jul 2023 to Jul 2024