Concerns surrounding the stability of Republic First Bancorp are popping up again as a $35 million deal to help shore it has collapsed, writes Gina Heeb for The Wall Street Journal. 

In October, the Norcross-Braca group announced a $35 million capital infusion deal that was expected to close this February. 

However, the group said Republic First has failed to meet the terms of the agreement. 

The deal would have only filled a portion of the capital hole at Republic First, which has about $6 billion in assets.

Republic First is facing many of the same challenges as First Republic, one of the regional banks that failed last year: steep paper losses on bonds that lost value as interest rates increased, and high proportions of uninsured deposits.

At the end of 2023, about 52 percent of deposits at Republic First were uninsured, according to Federal Deposit Insurance Corp. filings.

Meanwhile, total deposits were down around 13 percent from the year before. 

Republic First’s total equity was $96 million at the end of 2023, according to FDIC filings.

“We have continued to maintain the bank’s adequately capitalized position, and we believe we have a strong deposit base and ample liquidity,” the bank said. 

Read more about the $35 million that fell apart and how Republic First looks to rebound at The Wall Street Journal.

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