The Federal Deposit Insurance Corp. has suspended an auction process for Republic First Bancorp Inc. after the Philadelphia regional bank struck a deal last week to raise money from investors, according to people familiar with the matter.
The FDIC notified potential buyers Tuesday that the bank's capital-raising effort was the avenue it was focused on pursuing, said the people, who asked to not be identified because the matter isn't public. The FDIC had sought bids for Republic First last week and had told suitors it would notify them of its decision this week, Bloomberg News reported.
Representatives for Republic First and the FDIC declined to comment.
With about $6 billion in assets, Republic First has been struggling with similar issues as other regional banks: Rising rates that have translated into unrealized losses in loans and securities.
The bank, which delisted from the Nasdaq in August, said on Friday that it would raise $35 million from a group of investors including George E. Norcross III, Gregory B. Braca and Philip A. Norcross, who had been feuding with the bank earlier this year before they agreed to work together to raise capital.