The FDIC is seeking buyers for the financially troubled Republic First Bancorp, intensifying efforts to stabilize the bank and protect stakeholders after a major investment deal collapsed.
The Federal Deposit Insurance Corp. (FDIC) is actively engaging in discussions with potential acquirers for the financially struggling Republic First Bancorp. The Philadelphia-based regional bank, which has seen a significant decline in its market value, is back on the FDIC's table for bids after a previously attempted deal with a substantial investor group fell through.
In late 2022, Republic First Bancorp had secured a $35 million investment from a group consisting of prominent figures such as George E. Norcross III, Gregory B. Braca, and Philip A. Norcross. However, this agreement was annulled in late February 2023, exacerbating the bank's already plummeting stock value. As of April, the bank's market valuation had dipped below $1 million, a stark contrast to its peak value of over $500 million in 2017.
The bank, which operates 32 branches across Philadelphia, New Jersey, and New York City under the leadership of CEO Tom Geisel, has been taking measures to mitigate financial pressures. Last year, Republic First Bancorp reduced its workforce as a part of cost-cutting initiatives and withdrew from its mortgage origination business. The bank's shares were also removed from the Nasdaq in August and are now traded over the counter.
As the FDIC continues its search for potential buyers, the future of Republic First Bancorp hangs in the balance. The regulatory body's renewed efforts to secure a bidder reflect the urgency of addressing the bank's distress and finding a resolution that could stabilize its operations and protect the interests of its customers and shareholders.
