Republic First Bank Seized, Sold to Fulton Bank in First US Bank Failure of 2024
In a bid to safeguard depositors’ interests, the Federal Deposit Insurance Corporation (FDIC) has designated Fulton Bank, N.A., headquartered in Lancaster, Pennsylvania, to take on the majority of deposits and acquire a substantial portion of the assets belonging to Republic First Bank, a failed financial institution based in Philadelphia.
BANK FAILURE OF 2024 HAS BEGUN
Regulators Set to Seize Troubled Philadelphia Bank Republic First
The bank had some of the same problems as the ones that failed in 2023— The Coastal Journal (@1CoastalJournal) April 26, 2024
On April 26, Lancaster-based Fulton Bank officially announced its acceptance of transitioning all deposits and purchasing a significant portion of the assets belonging to the failed Republic First Bank, headquartered in Philadelphia. This development comes after the Pennsylvania Department of Banking and Securities took the decision to close down Republic First Bank on April 25 and subsequently appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver.
The seizure by the Pennsylvania Department of Banking and Securities was prompted by Republic Bank’s cessation of funding discussions with a group of investors. In response, the FDIC announced that Fulton Bank, a subsidiary of Fulton Financial Corp, would assume almost all of Republic Bank’s deposits and acquire its assets, thereby ensuring the protection of depositors.
As of January 31, 2024, Republic Bank had reported approximately USD 6 billion in total assets and USD 4 billion in deposits. The FDIC estimated that the bank’s failure would result in a cost of around $667 million to its insurance fund.
Republic Bank’s 32 branches located across New Jersey, Pennsylvania, and New York are scheduled to resume operations as Fulton Bank branches either on April 27 or April 29, depending on their respective locations. This information was included in the official release provided by Fulton Bank.
Republic First Bank – Another bank failure signals the need for change. Embrace the future of finance with privacy coins like $ZANO, $XMR, $CCX, $ERG, $ARRR, and $FIRO. It’s time to prioritize security and anonymity in transactions. #cryptocurrency #privacycoins #banking #finance pic.twitter.com/9lw9eNPwXY
— Mannan | Privacy Matters | Crypto since 2016 (@Mannan056) April 27, 2024
Republic Bank Failure Not the First in the United States
The failure of Republic Bank is not an isolated incident within the United States. It joins a series of notable collapses in the regional banking sector, including the fall of Silicon Valley Bank and Signature Bank in March 2023, followed by First Republic Bank in May of the same year.
Prior to its collapse, Republic Bank had secured an agreement with an investor group comprising prominent individuals like seasoned businessman George Norcross and renowned attorney Philip Norcross. However, this arrangement ultimately fell through in February, prompting the FDIC to resume its endeavors to stabilize and facilitate the sale of the troubled bank, as initially reported by the Wall Street Journal.
What Happens to Republic Bank Customers?
Depositors of Republic Bank will automatically become depositors of Fulton Bank, ensuring that they do not need to modify their banking relationship to maintain their deposit insurance coverage. Republic Bank customers are advised to continue using their current branches until they receive a notification from Fulton Bank indicating the completion of system changes that will enable Fulton Bank branches to process their accounts as well.
For any inquiries related to Fulton Bank’s acquisition of Republic Bank, customers can contact the FDIC toll-free at 1-877-467-0178. The FDIC Call Center will be available this evening until 9 p.m. Eastern Time (ET), and will operate on the following schedule:
– Saturday: 9:00 a.m. to 6:00 p.m. ET
– Sunday: 12:00 p.m. to 6:00 p.m. ET
– Monday: 8:00 a.m. to 8:00 p.m. ET
– Thereafter: 9:00 a.m. to 5:00 p.m. ET
Alternatively, interested parties can visit the FDIC website for further information.
