The family of George Norcross recently completed a transaction to invest in another regional bank, making a $26.6 million investment for a 6% stake in Harrisburg, Pa.-based Mid Penn Bancorp.
In addition to George Norcross, the investor group includes:
General American Capital facilitated the transaction on behalf of a Norcross family trust, Indiana Pacific General Trust.
This investment marks the latest foray into bank investments, particularly regional banking, for the Norcross family. Earlier this year, Republic First Bank was seized by federal regulators and acquired by Fulton Bank. Norcross led an activist investor group that was involved in a protracted proxy fight with the bank leadership and board, owning a nearly 10% stake, until it went under and was ultimately seized.
Despite that outcome at Republic First, this latest deal affirms the Norcross family's belief in banks as a strong investment. And a much different posture is expected in this instance versus Republic First, which had troubles when the group made its initial investment. Mid Penn is positioned strongly and just recently announced a $127 million acquisition of William Penn Bancorp as well as plans to open a branch in Camden's Triad1828 Centre as part of an expansion into South Jersey. There is also the familiarity with Alexander Norcross working at Mid Penn.
In addition, the Norcross brothers were indicted in June, charged in an alleged racketeering scheme by Attorney General Matthew Platkin. That indictment pertained to waterfront redevelopment projects in Camden, including the Triad1828 Centre, which houses Conner Strong & Buckelew. That, of course, is the insurance giant that Norcross founded and built. In July, George Norcross took a leave from his role as executive chairman of the insurance firm while he fights the charges. He remains the chair of the board of trustees of the Cooper Health System.
The Norcross brothers and the other co-defendants have denied the charges, pleaded not guilty, and vowed to fight them - including filing a motion to dismiss earlier this fall.
Attorneys argued in a motion that the state's 111-page indictment reads less like a legal document and more like a screenplay for a "putative summer blockbuster."
"Except the script is missing some critical plot lines. This is supposedly a story of 'extortion' - but there's no violence or unlawful threats; only ordinary economic bargaining among sophisticated businessmen," the motion argues. "It is pitched as a tale of 'official misconduct' - but there are no bribes, kickbacks, or even conflicts of interest, only routine politics.
"We are promised 'racketeering' - but no organized criminal elements ever appear; only respected, proven civic leaders and lawyers trying to revive a long-suffering city," the motion continues. "Plus, the storyline is stale, with nothing of consequence happening in almost a decade. No wonder other studios - including U.S. Attorney's Offices in New Jersey and Philadelphia - chose to pass on this story years ago, even when it was fresher. Simply put, this is a crime thriller with no crime."