Republic First Bancorp is set to receive a $35 million infusion of cash from a group of its investors, signaling that smaller and regional lenders are still grappling with a series of failures earlier this year.
Republic First — which is also known as Republic Bank — is a large regional lender with branches in New York, New Jersey and Pennsylvania. The $35 million investment will come from a group of existing investors led by George Norcross III, Philip Norcross and Gregory Braca, the bank said on Friday.
The bank is also in discussions to raise an additional $40 million to $65 million from other investors. Republic First in September announced a $75 million capital raise that included $35 million from the Norcross-Braca group; the deal was contingent on the remaining $40 million coming from other investors.
The investment announced on Friday is not reliant on the additional cash infusion, according to the bank.
Four members of Republic First's board of directors will be replaced after the agreement is completed; the Norcross-Braca group will get two seats on Republic First's board of directors. Phillip Norcross, a lawyer, will become the board's chairman, while Braca — the former chief executive of TD Bank — will also join the board.
“[W]e believe that with proper Board leadership and a focus on improving operations, the Company can provide great service to its customers and depositors as well as value to its shareholders," insurance executive and Democratic power broker Gregory Norcross said in a statement.
Republic First, which has roughly $6 billion in assets, has struggled with problems similar to what caused San Francisco-based First Republic's collapse. Both banks suffered heavy paper losses on bonds that have lost value amid high interest rates, failed attempts to raise funds and uninsured deposits, according to The Wall Street Journal.
https://themessenger.com/business/republic-first-bancorp-cash-infusion-investor-rescue
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