In Short:
On April 26, Fulton Bank accepted to transition deposits and assets from the failed Republic First Bank in Philadelphia after it was closed by the Pennsylvania Department of Banking and Securities. With approximately $6 billion in assets, Republic Bank’s failure will cost FDIC around $667 million. Fulton Bank will now serve former Republic Bank customers, ensuring they retain their deposit insurance coverage.
Fulton Bank to Acquire Assets of Republic First Bank
Hey there! Exciting news from the banking world! Lancaster-based **Fulton Bank** has stepped in to save the day by accepting the transition of all deposits and acquiring most assets of the now-defunct **Republic First Bank** based in Philadelphia. The official announcement came on April 26 following the closure of Republic First Bank by the Pennsylvania Department of Banking and Securities on April 25. The Federal Deposit Insurance Corporation (FDIC) has been appointed as the receiver in this transaction.
What Led to the Seizure?
It seems Republic Bank ran into some trouble after they stopped funding discussions with a group of investors. As a result, the FDIC intervened, and it was decided that Fulton Bank, a part of **Fulton Financial Corp**, would take over the deposits and assets to ensure the protection of depositors.
Key Numbers and Branch Information
As of January 31, 2024, Republic Bank reported approximately USD 6 billion in total assets and $4 billion in deposits. The estimated cost of the bank’s failure to the FDIC insurance fund is around $667 million. To all Republic Bank customers out there, don’t worry! The bank’s 32 branches across New Jersey, Pennsylvania, and New York are set to reopen under the Fulton Bank banner on either April 27 or April 29, depending on the location.
Republic Bank Failure Not an Isolated Incident
This unfortunate incident adds to a series of regional bank collapses in the US, following the closures of other banks like Silicon Valley Bank, Signature Bank, and First Republic Bank in recent times. Prior to its closure, Republic Bank had an agreement with a group of investors, including prominent names like George Norcross and Philip Norcross. However, things didn’t work out, and here we are.
What Happens to Republic Bank Users?
For all Republic Bank depositors, you will now become customers of Fulton Bank. No need to worry or make any changes to your banking relationship as your deposit insurance coverage is secure. The transition will happen smoothly, and you can continue using your existing branches until notified otherwise by Fulton Bank.
Contact Information and Support
If you have any questions or concerns regarding **Fulton Bank’s** acquisition of **Republic Bank**, feel free to reach out to the FDIC at 1-877-467-0178. The FDIC Call Center is open at various times for your convenience, and more information can be found on the FDIC website.
(With Inputs from Reuters)
