(Reuters) – The former parent of Republic First Bank, which failed in April and was sold to Fulton Financial in a deal put together with support from U.S. regulators, said on Thursday it had filed for Chapter 11 bankruptcy protection in the United States.
The CEO and the CFO of the holding company, Republic First Bancorp, have also resigned from their positions, according to a regulatory filing.
Such holding companies often go belly up after losing control of their banking units – which are their primary assets.
Republic First was the first U.S. bank to fail in 2024, underscoring the lingering pain for some regional lenders who are battling tepid loan demand and a surge in loan defaults.
It had been targeted by multiple activist investors since 2021. Elevated interest rates had also depressed the value of securities on its balance sheet and hurt its commercial real estate loan portfolio.
Republic First sought to revive its fortunes with a $35 million infusion of capital from an activist investor group led by veteran businessman George Norcross, but that deal fell through in February.
Fulton Financial’s shares have jumped nearly 18% since the acquisition.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)