Writer: Joshua Andino
2 min read June 2023 — Republic Bank is consolidating locations and reducing its headcount.
Republic First Bancorp, parent company of Philadelphia-based Republic Bank, is reducing its real estate footprint and eliminating jobs in a cost-saving measure. The bank announced on Thursday that it will reduce operating branch hours as a result of customers’ growing preference for online banking, while also eliminating “redundant or unnecessary” positions across its retail banking division.
The move comes in the wake of a May announcement that the bank would also be exiting the mortgage origination business, citing high costs as a barrier to profitability as it shifts to focus on its core services. The bank has also engaged CBRE to evaluate its real estate portfolio and develop a comprehensive plan moving forward.
The bank is merging its 1818 Market Street Location into its 1601 Market Street location to help with the cost reduction.
In a statement, Thomas Geisel, president and CEO of the bank, said, “All strategies have to evolve. As such, we need to evolve in how we serve our customers. That includes where we’re located, the products and services we provide, as well as the channels we deliver through.”
Regional banks have come under increased scrutiny — 2023 has witnessed two of the largest bank failures in U.S. history as a result of today’s economic uncertainty, driven in large part by rising interest rates and inflationary pressures. As a result, banks are shoring up their liquidity and ensuring they have enough capital as they balance tepid lending demand with increased rate pressures, or margin compression. The bank is not to be confused with San Francisco-based First Republic Bank, which was acquired by JPMorgan after an earlier failure.
In a separate interview with Invest:, Valley Bank’s Mark Biedermann, senior vice president and Pennsylvania division head, explained where the industry was today, saying, “As for the banking sector overall, there will be certain organizations that will struggle through this cycle both on a credit quality standpoint and funding basis.” He added, “The recent gyrations that we had were actually based more on funding and liquidity than on credit quality, so going forward the issues for the industry may lie with the confluence of these two events: funding and credit quality.” Banks will “have to watch both your deposit and loan exposures,” in order to come out ahead moving forward, Biedermann said.
For Republic Bank, that means ensuring that costs are kept down. Geisel explained in his statement, “By refocusing our Retail Banking Division and winding down non-core business lines, we continue to lay the foundation for a more efficient, profitable organization. Our new leadership team looks forward to continuing to provide updates on its progress and future initiatives.”
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