Fulton Bank Steps In to Assist Customers of Republic First Bank

Today, Philadelphia’s Republic First Bank, known as Republic Bank, found itself facing closure under the directives of the Pennsylvania Department of Banking and Securities. This decision led to the Federal Deposit Insurance Corporation (FDIC) stepping in as receiver.

In an effort to protect depositors, an agreement was reached between the FDIC and Lancaster’s Fulton Bank, National Association to absorb a significant portion of Republic Bank’s deposits and assets.

As part of this transition, the 32 branches of Republic Bank spread across New Jersey, Pennsylvania, and New York will reopen under the umbrella of Fulton Bank.

To ensure customers have access to their funds, they can utilize various channels such as writing checks, using ATMs, or using debit cards over the weekend. Furthermore, Republic Bank checks will continue to be processed as usual, and loan repayments should proceed without disruption.

With Fulton Bank taking over, Republic Bank customers will seamlessly transition into becoming depositors of Fulton Bank without needing to make any changes to their banking setup to maintain deposit insurance coverage. Until further notice from Fulton Bank regarding systems integration, customers are encouraged to continue using their current Republic Bank branches.

For any queries related to Fulton Bank’s assumption of Republic Bank, customers can contact the FDIC via their toll-free number. The FDIC Call Center is extending its operating hours to assist customers during this period of transition and provides additional information on their website.

As of January 31, 2024, Republic Bank had total assets of approximately $6 billion and total deposits of $4 billion. The FDIC foresees a cost of $667 million to the Deposit Insurance Fund (DIF) due to Republic Bank’s closure.

However, after careful evaluation, the FDIC concluded that Fulton Bank’s acquisition offered the most cost-effective solution for the DIF compared to other alternatives.

Republic Bank’s closure marks the first bank failure in the United States this year, following the closure of Citizens Bank in Sac City, Iowa, on November 3, 2023.

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