Republic First Bancorp Announces $35 Million Private Placement Agreement
Stock of Republic First Bancorp (FRBK) surges 194% to 15 cents a share following agreement for a $35 million private placement by Norcross Braca Group, an activist investor in the microcap bank.
Republic First Bancorp announces that it will no longer be auctioned by the Federal Deposit Insurance Corp. The capital injection from the private placement has secured the bank's position, providing stability and growth opportunities.
The agreement was formally filed with regulators on Thursday, solidifying the commitment of fresh capital for Republic First Bancorp. Previously announced on September 27th, the deal was contingent on raising additional capital. However, the bank confirms that the funding will proceed regardless of whether additional capital is raised.
Noteworthy additions to the bank's board of directors include ex-TD Bank U.S. Chief Executive Gregory B. Braca and investor Philip A. Norcross III as Chairman. Thomas Geisel, the current CEO, will retain his position on the board.
The FDIC's decision to drop the auction of Republic First Bancorp was due to unrealized losses on the bank's balance sheet. This move is reminiscent of similar actions taken during earlier banking crises this year.
Previously, the FDIC sold Silicon Valley Bank and First Republic Bank to First Citizens Bancshares Inc. and JPMorgan Chase & Co., respectively. Additionally, Signature Bank was sold to New York Community Bancorp during the spring-time banking crisis.
Republic First Bancorp's stock was delisted from the Nasdaq in August. Despite this setback, the Philadelphia-based bank remains resilient with approximately $6 billion in assets and a market capitalization of $5 million. With the recent private placement agreement, Republic First Bancorp is poised for growth in its future endeavors.
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