PHILADELPHIA, PA — Republic First Bancorp, Inc. (NASDAQ: FRBK), the parent company of Republic First Bank d/b/a Republic Bank (the “Bank”), this week provided the below updates.
Based on the positive impact associated with new leadership’s initial strategic initiatives and other considerations, the Company’s Board of Directors (the “Board”) has determined that the Bank has an adequate capital position at this time. The Company’s recent initiatives include winding down both its New York City commercial lending business and mortgage origination business. These steps were taken to improve efficiency in the near-term and support profitable growth within core service markets over the long-term. In the coming weeks and months, new leadership intends to implement additional initiatives to advance its strategic realignment of the Bank.
On March 10, 2023, the Company announced a $125 million capital raise – which included commitments from seasoned community bank investor Castle Creek Capital and an affiliate of Cohen Private Ventures, LLC – that requires the participation of additional accredited investors. The Board has decided to wait for market conditions to stabilize before identifying additional participants to round out the capital raise on acceptable terms. Prior to reaching its determination, the Board worked with independent legal and financial advisors to evaluate the Bank’s near-term capital needs in the context of the recent market dislocation and in keeping with its duties.
Thomas X. Geisel, President and CEO of Republic First Bancorp, Inc., stated, “The actions we have taken – and will continue to take – are laying the foundation for a more efficient, profitable business that can create enhanced value for all shareholders and stakeholders. While recent initiatives are already having a positive impact, they are just the first steps in our strategic realignment of the Bank. We remain focused on taking actions to preserve the Bank’s capital, strengthen our core business, and position us to identify additional investor commitments at the right time and on the right terms. Protecting Republic’s valued shareholders from excessive and unnecessary dilution is very important to us.”
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