Regulators have closed Tri-State-area lender Republic First Bank, which reportedly had $6 billion in assets and $4 billion in deposits as of January 31, 2024.
The Philadelphia-based bank's closure was made by the Pennsylvania Department of Banking and Securities, in accordance with the Federal Deposit Insurance Corporation (FDIC), which announced the closure Friday. The bank’s failure is expected to cost the Deposit Insurance Fund (DIF) $667 million.
Fulton Bank, based in Lancaster, Pennsylvania, agreed to assume “substantially all” of Republic Bank’s deposits to protect depositors, also purchasing its assets, the federal agency said.
Republic Bank’s 32 branches in New Jersey, Pennsylvania, and New York have been reopened as branches of Fulton Bank, where Republic’s former account-holders can now access their funds. Additionally, the FDIC said in a statement, checks drawn on Republic Bank will continue to be processed and loan customers should continue to make their payments as usual.
“Depositors of Republic Bank will become depositors of Fulton Bank so customers do not need to change their banking relationship in order to retain their deposit insurance coverage,” regulators said. “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.”
Fulton Bank’s acquisition of Republic Bank is the “least costly” resolution for the DIF, a private, industry-sponsored insurance fund with more than 6,000 member banks.
Republic Bank is the first U.S. bank failure this year. The last failure took place last November in Sac City, Iowa, with Citizens Bank, which had been established in 1929.
