Republic Bank Closed and Acquired by Fulton Bank
WASHINGTON — Philadelphia-based Republic First Bank (doing business as Republic Bank) has been closed today by the Pennsylvania Department of Banking and Securities, which has named the Federal Deposit Insurance Corporation (FDIC) as the receiver. The FDIC, in order to safeguard the depositors, has reached an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume a significant portion of the deposits and acquire most of the assets previously held by Republic Bank.
Fulton Bank will take over Republic Bank’s 32 branches in New Jersey, Pennsylvania, and New York. The branches will reopen as branches of Fulton Bank on Saturday (for branches with normal Saturday hours) or on Monday during standard business hours. Depositors of Republic Bank will have easy access to their funds throughout the weekend via check writing, usage of ATMs, or by using their respective debit cards. Any checks issued by Republic Bank will continue to be processed as usual, and loan customers should continue to make their payments in the normal manner.
Depositors of Republic Bank will automatically become depositors of Fulton Bank, allowing them to retain their deposit insurance coverage without needing to change their current banking relationship. Customers of Republic Bank are advised to utilize their existing branches until receiving official notice from Fulton Bank regarding the successful completion of system changes, enabling Fulton Bank’s branches to process their accounts seamlessly.
Contact the FDIC for Further Assistance
If you have any inquiries regarding Fulton Bank’s acquisition of Republic Bank, please contact the FDIC toll-free at 1-877-467-0178. The FDIC’s Call Center is available during the following hours: Monday-Friday, 9:00 a.m. to 9:00 p.m. ET; Saturday, 9:00 a.m. to 6:00 p.m. ET; Sunday, 12:00 p.m. to 6:00 p.m. ET. For more information, you can also visit the FDIC’s official website.
Financial Impact and Resolution
Republic Bank possessed approximately $6 billion in total assets and $4 billion in total deposits as of January 31, 2024. The FDIC predicts that the failure of Republic Bank will lead to an estimated cost of $667 million to the Deposit Insurance Fund (DIF). The FDIC evaluated alternative options and determined that Fulton Bank’s acquisition of Republic Bank offers the least expensive solution for the DIF. The DIF, an insurance fund established by Congress in 1933 and managed by the FDIC, aims to protect deposits held in the nation’s banks. Republic Bank is the first U.S. bank to fail this year, following the last failure of Citizens Bank in Sac City, Iowa, on November 3, 2023.
