US Regulators seize Republic First Bancorp; Fulton Bank to take control of operations amid regional bank struggles
Fulton Bank, part of Fulton Financial Corp, would assume nearly all the bank's deposits and purchase its assets to "protect depositors." As of January 31, 2024, Republic Bank reported approximately USD 6 billion in total assets and $4 billion in deposits. The FDIC estimated that the bank's failure will cost its insurance fund about $667 million.
Republic Bank's 32 branches across New Jersey, Pennsylvania, and New York are scheduled to reopen as Fulton Bank branches either on April 27 or April 29, depending on the location, the release further added. This incident marked yet another significant failure in the US regional banking landscape, following the collapses of Silicon Valley Bank and Signature Bank in March 2023, and First Republic Bank in May of the same year.
Previously, Republic Bank had reached an agreement with an investor group that included notable figures such as veteran businessman George Norcross and high-profile attorney Philip Norcross. However, the arrangement fell through in February, leading the FDIC to resume its efforts to stabilize and sell the troubled bank, as first reported by the Wall Street Journal.
Depositors of Republic Bank will become depositors of Fulton Bank so customers do not need to change their banking relationship to retain their deposit insurance coverage. Customers of Republic Bank should continue to use their existing branches until they receive notice from Fulton Bank that it has completed systems changes that will allow its branch offices to process their accounts as well, as per the official statement.
Customers with questions about Fulton Bank's acquisition of Republic Bank may call the FDIC toll-free at 1-877-467-0178. The FDIC Call Center will be open this evening until 9
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