US regulators set to seize Republic First Bancorp, WSJ reports

FILE PHOTO: The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters as Chairman Sheila Bair announces the bank and thrift industry earnings for the fourth quarter 2010, in Washington, February 23, 2011.REUTERS/Jason Reed/File Photo

(Reuters) -U.S. regulators are set to seize Republic First Bancorp and are nearing a deal to sell it to another lender, the Wall Street Journal reported on Friday, citing people familiar with the matter.

If seized, it would mark the latest regional bank failure following the unexpected collapses of three lenders – Silicon Valley and Signature in March 2023 and First Republic in May.

A deal for Republic First Bancorp could be announced as soon as Friday, the report said, adding that the identity of the expected buyer could not be learned and it is still possible the deal could collapse.

The Philadelphia-based lender struck a deal with an investor group that included veteran businessman George Norcross, high-profile attorney Philip Norcross late last year, but that was terminated in February.

After that deal collapsed, the Federal Deposit Insurance Corp (FDIC) resumed efforts to seize and sell the bank, the Wall Street Journal reported.

FDIC and Republic First did not immediately respond to a Reuters request for comment.

The regional lender was reeling with higher costs and inability to improve profitability that prompted it to cut jobs and exit its mortgage origination business in early 2023.

The bank’s stock price has tumbled from just over $2 at the start of the year to about 1 cent on Friday, leaving it with a market capitalization below $2 million.

Its shares were delisted from the Nasdaq in August and now trade over the counter.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)