U.S. regulators have intervened by seizing Republic First Bancorp and orchestrating its acquisition by Fulton Bank, shedding light on the challenges confronted by regional banks in the aftermath of the collapse of three similar institutions just a year prior. Philadelphia-headquartered Republic First, having ceased negotiations for funding with a group of investors, was taken over by the Pennsylvania Department of Banking and Securities.
The Federal Deposit Insurance Corp (FDIC) stepped in as a receiver and announced that Fulton Bank, a branch of Fulton Financial Corp, would be assuming the majority of deposits and acquiring all assets of Republic Bank, also known as Republic First, in order to safeguard depositors. Republic Bank, reporting about $6 billion in total assets and $4 billion in total deposits as of January 31, 2024, will result in an estimated $667 million cost to the FDIC fund due to the failure.
Apart from deposits, Republic Bank also had borrowings and other liabilities totaling around $1.3 billion, according to a statement from Fulton. The acquisition by Fulton Bank nearly doubles its presence in the Philadelphia market, increasing combined company deposits to approximately $8.6 billion. Republic Bank's 32 branches across New Jersey, Pennsylvania, and New York are set to reopen under the Fulton Bank name starting this Saturday or Monday during regular business hours.