George Norcross explains his continued investment despite economic slowdown

George E. Norcross III remains undeterred by challenges like tariffs, higher interest rates, and past losses, consistently investing in Philadelphia-area businesses. His latest move involves increasing his family’s stake in Mid Penn Bancorp, a Harrisburg-based small-business and consumer lender expanding its presence in the Philadelphia region.

Recent SEC filings reveal that Norcross’ General American Corp. purchased an additional $5 million worth of Mid Penn stock between April 2-10, now owning over 8% of the company’s shares. This investment comes on the heels of a 6% stake acquired last year. In a recent interview with The Inquirer, Norcross shed light on his motivations for investing in another bank, his confidence in Mid Penn, and his vision for the future.

Norcross pinpointed a gap in the market in eastern Pennsylvania and New Jersey, areas he is intimately familiar with. He observed a decline in bank services and identified Mid Penn as an appealing opportunity due to its similarities to the successful Commerce Bank model. With a recent branch opening in Camden, Mid Penn’s cost-effective approach and robust digital infrastructure caught Norcross’ attention.

While major banks like Chase and Bank of America dominate the industry with sophisticated technology, Norcross emphasized the importance of personalized service. Mid Penn’s customer-centric approach aligns with Norcross’s belief that people prefer to do business with individuals they know. Despite trading below tangible book value and boasting a modest price-to-earnings ratio, Mid Penn has shown consistent growth and profitability, making it an attractive investment prospect.

When asked about his role in the bank, Norcross expressed admiration for Mid Penn’s management team and indicated his support for their strategic direction. While he has no plans for an active role in operations, Norcross highlighted his commitment to promoting growth and attracting new customers. Regarding his son’s involvement with the bank, Norcross clarified that Alexander Norcross joined on his own accord and is steadily advancing within the organization.

Reflecting on the broader economic landscape, Norcross exuded confidence in Mid Penn’s resilience and the strength of his other business ventures. He pointed to robust activity in sectors like construction and infrastructure, buoyed by current government funding initiatives. Similarly, he expressed optimism about the stability and growth potential of well-established healthcare institutions in the region, such as Cooper University Hospital.

Norcross brushed off concerns about potential federal cuts to healthcare funding, citing the essential nature of these services and the demographic factors at play. While acknowledging challenges faced by certain hospitals, he highlighted the financial success and growth trajectory of institutions like Cooper, Penn, and Virtua. Norcross also lauded the leadership changes at Jefferson and Temple University hospitals, predicting positive developments under new management.

In conclusion, George E. Norcross III’s unwavering confidence in the Philadelphia business landscape and strategic investments like Mid Penn Bancorp underscores his long-term vision and commitment to driving growth in the region. Despite external economic pressures, Norcross remains steadfast in his belief in the potential of local businesses and healthcare institutions, positioning himself as a key player in the ongoing development of the Philadelphia area.