Norcross Group Increases Its Bank Shares Ownership

An investor group led by prominent political figure and developer George Norcross has made a significant investment in Mid Penn Bancorp, acquiring approximately 221,000 shares at a total cost of .3 million. This purchase, which occurred between January 7 and April 1, 2023, signals a robust confidence in the regional economy despite the broader downturn in U.S. bank shares amidst ongoing economic instability, as reported by Media News Source.

General American Capital, the investment firm associated with the Norcross family, is managed by long-time Norcross associate Susan Hudson, with contributions from Norcross’ brother, Philip. With this recent acquisition, the Norcross-led group now holds 1.4 million shares of Mid Penn, representing 7.3% of the company, which is headquartered in Harrisburg, Pennsylvania. Last fall, the group expressed their intent to invest in Mid Penn as part of a long-term strategy.

Distinct from their previous, more aggressive investment approach involving the former Republic Bank—now part of Fulton Bank—the Norcross group has stated that it does not intend to seek changes in Mid Penn’s management structure, board composition, or business strategy. This strategy showcases a shift toward a more passive investment role compared to earlier initiatives.

Notably, George Norcross’ son, Alex, joined Mid Penn last year as an assistant vice president specializing in private banking, focused on serving affluent clients within the Philadelphia region. Mid Penn Bancorp operates over 40 branches across south-central and eastern Pennsylvania as well as central New Jersey, with a business model increasingly focused on small business banking, marking its expansion into the Philadelphia market.

In the latest development, Mid Penn announced that shareholders overwhelmingly approved its acquisition of William Penn Bank along with its 12 branches located in Bucks and Montgomery Counties. This move, finalized on April 2, is part of Mid Penn’s growth strategy aimed at bolstering its presence in the region.

Despite these strategic advances, Mid Penn’s stock has shown volatility, declining from on January 7 to approximately as of early April. The fluctuating market conditions have been attributed to broader economic factors including uncertainty surrounding U.S. tariff policies. Financial analysts note that high interest rates could dampen overall business activity, presenting a complex landscape for U.S. banks. Long-term interest rates have climbed recently, influencing lending practices and business strategy amidst rising concerns over potential material costs stemming from import taxes.

Overall, while the Norcross group’s investment reflects optimism in Mid Penn Bancorp’s future, the backdrop of economic uncertainty continues to pose challenges for the banking sector and broader business environment in Pennsylvania and beyond.