U.S. Seizes Troubled Lender Republic First, Sells It To Fulton Bank

US regulators have taken control of Republic First Bancorp and reached an agreement to sell it to Fulton Bank.

The acquisition significantly expands Fulton Bank's presence in the Philadelphia market, with combined company deposits reaching approximately $8.6 billion. I Photo: Business Wire

Such a move highlights the ongoing difficulties faced by regional banks in the aftermath of the collapse of three peers the previous year, Manas Mishra and Pritam Biswas reported the development for Reuters.

Republic First Bancorp, headquartered in Philadelphia, faced funding challenges and terminated discussions with a group of investors.

Subsequently, the Pennsylvania Department of Banking and Securities seized control of the institution.

The Federal Deposit Insurance Corp. (FDIC), appointed as a receiver, announced that Fulton Bank, a subsidiary of Fulton Financial Corp., will acquire substantially all deposits and assets of Republic Bank, which operates under the name Republic First, to safeguard depositors' interests.

As of January 31, 2024, Republic Bank held approximately $6 billion in total assets and $4 billion in total deposits. The FDIC projected that the failure would cost its fund around $667 million.

Besides deposits, Republic also had borrowings and other liabilities totaling approximately $1.3 billion, according to a statement from Fulton Bank.

The acquisition significantly expands Fulton Bank's presence in the Philadelphia market, with combined company deposits reaching approximately $8.6 billion. Nathan Gomes and Saeed Azhar also contributed to the Reuters report.