George Norcross III, Gregory Braca and Phillip Norcross
suggested in a Jan.
31 letter to the $5.4 billion-asset company’s board that it should consider
hiring Braca to replace Hill.
“We are of the opinion that the company’s
depressed stock performance over several years is directly attributable to weak
operating results, including return on assets and return on capital of less
than half that of its peers and efficiency ratios and cost of funds for its
deposits running higher than industry norms,” the investors wrote in their
letter.
The investors, who own about 6.6% of Republic
First’s stock, said they intend to buy more shares.
They requested an “opportunity
to consult with the board” to way to unlock value at Republic First.
“We believe that such a collaborative
arrangement could help the company avoid the disruption and expense of, and
value destructive possibilities inherent in, situations such as the recently initiated
proxy contest,” the letter said.
The letter comes weeks after Driver Management,
another activist shareholder, announced
plans to nominate three directors to stand for election to Republic First’s
board. Republic First recently decided to delay
plans to raise more capital – a move that Driver had criticized.
The Norcross-Braca group had more suggestions
for the Republic First board, urging it to add more independent directors.
The group also wants the
company to ensure that future deposit growth is accretive to earnings and secure
the talent and resources needed to drive the board’s strategy.
The letter also recommended that Republic First develop
a new community investment plan that would “make it a leader” in minority and
low- and moderate-income communities.
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