Republic First Bancorp in Philadephia, Castle Creek Capital and Cohen Private Ventures have agreed to terminate a $125 million private placement of common stock.
The $6.2 billion-asset Republic First said in a press release that current market conditions, particularly tightening of access to equity capital, has made it difficult to find additional investors prior to a Sept. 9 deadline.
“We are executing on a clear strategy to address legacy issues stemming from prior management, drive profitability and enhance shareholder value,” Thomas Geisel, the company’s president and CEO, said in the release.
“This plan does not necessitate raising new capital in the near term,” he added. “Given the dislocation in the banking sector that has occurred since the announcement of the capital raise, we believe its termination is in the best interests of Republic and all our stakeholders.”
Republic First has been sparring with a shareholder group that has been for Geisel’s resignation.
Geisel became CEO in December and has since announced several cost-cutting initiatives, including an exit from mortgage lending and commercial lending in New York.
The company, which reported a net loss in the first quarter, also plans to reduce branch hours and is evaluating its real estate portfolio.
The Norcross group, who has a roughly 9.9% stake in Republic First, has been fighting with management since Vernon Hill was at the helm. The shareholders have been pushing to buy a controlling stake in the company to make Braca the CEO.