off-the-wire

Republic First Bancorp cuts jobs in preparation to exit mortgage business

Kitco Media
By Reuters
Published:
Updated:
Reuters

May 5 (Reuters) - Republic First Bancorp (FRBK.O) said on Friday it cut jobs in its commercial lending unit as the lender prepares to exit its mortgage origination business.

The Philadelphia-based regional bank said high costs of running a mortgage origination platform were not allowing it to improve its profitability and sharpen focus on core businesses.

The layoffs will affect employees of its lending and credit teams in New York, the bank said.

Major U.S. lender Wells Fargo & Co (WFC.N) also said in January it would slim down its mortgage business.

Deposit balances at Republic First fell 2.7% in the first quarter, but grew between March 31 and April 30, the company reported earlier this week.

Deposits at regional banks have come under investor scrutiny after a crisis hit the banking sector, after two U.S. regional lenders collapsed in March.

Reporting by Siddarth S in Bengaluru; Editing by Shinjini Ganguli
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