Philly bank deal: Norcross group offers to buy majority control of Hill’s Republic

A group of activist investors says it has offered to pay up to $5.50 a share, or roughly $106 million, for a controlling stake in Republic First Bancorp, the company that operates Philadelphia-based Republic Bank.

The group is led by George Norcross, head of the insurance agency Conner Strong & Buckelew, chairman of Cooper Health, and a longtime Democratic Party leader, and former TD Bank executive Greg Braca. The offer would increase the ownership stake of the group from about 10% to 51% of the company’s shares.

The group expects to be able to finance the share purchase. Norcross was previously part-owner of The Inquirer.

» READ MORE: Republic Bank board fractures into opposing camps loyal to Vernon Hill or George Norcross

With the purchase, the group would gain the power to elect directors to replace Republic chairman and chief executive Vernon Hill. The group’s proposal also includes an additional $50 million for unspecified improvements and expansion of business at the bank, according to a statement.

Bank rules, up until now, have limited investors from owning more than 10% of the company. But the offer on the table could increase pressure from other shareholders on management to waive that limit, as the Norcross and Braca group has requested. A spokesman for Republic did not immediately return calls seeking comment.

Norcross and Braca have also backed a rival slate of three candidates in this year’s as-yet-unscheduled board election. The board is evenly split between Hill and Norcross backers.

» READ MORE: Norcross turns on old ally, seeks seats on Hill’s Republic bank board

Critics of the bank’s current leadership have denounced Hill’s penchant for opening new branches at a time when many people do their banking on smartphones and laptops. The bank now has 33 branches, mostly in the Philadelphia area, with two outposts in New York.

Hill has maintained that efficient branch banking is still attractive as a way to build a bank brand. He previously ran Marlton-based Commerce Bancorp and London-based Metro Bank and invested in Burger King and Saladworks restaurants and other area businesses.

The Norcross and Braca group has also criticized Hill’s long-standing practice of hiring contractors controlled by members of his family, including his wife Shirley’s design company. Hill has said his companies have gotten value for their purchases.