Philadelphia-based Republic First Bank (doing business as Republic Bank) was closed today by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank.
Republic Bankโs 32 branches in New Jersey, Pennsylvania and New York will reopen as branches of Fulton Bank on Saturday (for branches with normal Saturday hours) or on Monday during normal business hours. This evening and over the weekend, depositors of Republic Bank can access their money by writing checks or using ATM or debit cards. 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. 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.
Customers with questions about Fulton Bankโs acquisition of Republic Bank may call the FDIC toll-free at 1-877-467-0178. The FDICโs Call Center will be open this evening until 9 p.m. Eastern Time (ET); on Saturday from 9:00 a.m. to 6:00 p.m. ET; on Sunday from noon to 6:00 p.m. ET; on Monday from 8:00 a.m. to 8:00 p.m. ET; and thereafter from 9:00 a.m. to 5:00 p.m. ET. Interested parties may also visit the FDICโs website.
As of January 31, 2024, Republic Bank had approximately $6 billion in total assets and $4 billion in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) related to the failure of Republic Bank will be $667 million. The FDIC determined that compared to other alternatives, Fulton Bankโs acquisition of Republic Bank is the least costly resolution for the DIF, an insurance fund created by Congress in 1933 and managed by the FDIC to protect the deposits at the nationโs banks. Republic Bank is the first U.S. bank failure this year; the last failure was Citizens Bank, Sac City, Iowa on November 3, 2023.
TLDRS
The Pennsylvania Department of Banking and Securities closed Republic First Bank (operating as Republic Bank), with the FDIC appointed as receiver. Fulton Bank has agreed to assume nearly all deposits and purchase almost all assets of Republic Bank.
Republic Bank's 32 branches across New Jersey, Pennsylvania, and New York will reopen as Fulton Bank branches, and customers can access their funds through checks, ATMs, or debit cards. Existing checks and loan payments will continue to be processed as usual.
Depositors of Republic Bank will automatically become depositors of Fulton Bank, maintaining their existing deposit insurance coverage without needing to change their banking relationships.
As of January 31, 2024, Republic Bank had about $6 billion in assets and $4 billion in deposits. The estimated cost of this bank failure to the FDICโs Deposit Insurance Fund is $667 million, with the acquisition by Fulton Bank being the least costly resolution compared to other options.
Republic Bank is the first U.S. bank failure of the year, following the last in November 2023.
