Norcross group to invest in Republic Bank parent firm, get board seats

PHILADELPHIA - A group led by George Norcross III has agreed to invest $35 million in the struggling parent firm of Republic Bank.

As part of the deal, the Norcross group would gain two seats on the board of Republic First Bancorp. Inc., the company said.

And the investment, if approved by regulators, would be followed by a push to raise $75 million to $100 million for the Philadelphia-based bank.

Changes come as finances falter Republic Bank makes cutbacks in bid to revive profits

The pending deal was announced on Friday, Oct. 27, one month after the parties had announced a tentative agreement.

It also came after some 18 months of fighting over control of Republic, a battered institution with a stock price that had plummeted to eight cents per share on Friday.

Changes at the top for Republic Bank parent firm

The fight pitted the Norcross group against Republic's management, which went through multiple top-level changes during the dispute.

The Norcross group was expected to dismiss all litigation against the company and to stop seeking board control through a proxy fight, both sides said in September.

In Friday's announcement, George Norcross said his group believes "that with proper board leadership and a focus on improving operations," Republic can improve service to its customers and boost its stock price.

The agreement calls for Philip Norcross - a Mount Laurel attorney, a brother of George Norcross, and a member of the investor group - to serve as chairman of a revamped board.

Gregory B. Braca, a former CEO at TD Bank USA and a member of the Norcross group, also would join the seven-member board, along with two unnamed independent directors.

Four incumbent directors would depart, including current chairman Andrew B. Cohen and former chairman and founder, Harry Madonna.

Another former chairman, Vernon Hill II of Moorestown, left in the summer of 2022 as the Norcross group sought his ouster. Hill then sued Republic over the ownership of "brand assets," including the image of his Yorkshire terrier.

Thomas X. Geisel, Republic's president and CEO, called the agreement "an important milestone to strengthen our balance sheet and improve our operations."

Geisel will remain on the parent company's board, along with incumbent directors Benjamin Duster IV and Peter B. Bartholow.

Republic has 33 offices in the South Jersey-Philadelphia area and in New York City.

The company in May reported a first-quarter loss of $9.7 million, an amount greater than its earnings for all of 2022.

Jim Walsh is a senior reporter for the Courier-Post, Burlington County Times and The Daily Journal. Email: Jwalsh@cpsj.com.

This article originally appeared on Cherry Hill Courier-Post: Republic Bank parent firm to name Norcross family member as chairman