Republic First Bank's former parent files for bankruptcy protection

Republic First Bancorp

05/09/2024 22:35

Sept 5 (Reuters) - The former parent of Republic First
Bank, which failed in April and was sold to Fulton Financial
 FULT.O  in a deal put together with support from U.S.
regulators, said on Thursday it had filed for Chapter 11
bankruptcy protection in the United States.
    The CEO and the CFO of the holding company, Republic First
Bancorp, have also resigned from their positions, according to a
regulatory filing.
    Such holding companies often go belly up after losing
control of their banking units - which are their primary assets.
    Republic First was the first U.S. bank to fail in 2024,
underscoring the lingering pain for some regional lenders who
are battling tepid loan demand and a surge in loan defaults.
    It had been targeted by multiple activist investors since
2021. Elevated interest rates had also depressed the value of
securities on its balance sheet and hurt its commercial real
estate loan portfolio.
        Republic First sought to revive its fortunes with a $35
million infusion of capital from an activist investor group led
by veteran businessman George Norcross, but that deal fell
through in February.
    Fulton Financial's shares have jumped nearly 18% since the
acquisition. 

 (Reporting by Niket Nishant in Bengaluru; Editing by Maju
Samuel)
 ((Niket.Nishant@thomsonreuters.com;))