The bank accounts and assets of Republic First Bank, which were shut down by authorities on Friday, have been acquired by Fulton Financial, a bank headquartered in Lancaster. Republic First Bank, a regional bank serving both retail and wholesale customers, was facing financial difficulties. Regulators eventually seized the bank after failing to recover, despite efforts to recover funds.
History of Republic First Bank
Republic First Bank had been having money problems for a while. The bank had about $6 billion in total assets and $4 billion in total deposits as of January 2024. The Deposit Insurance Fund (DIF) of the Federal Deposit Insurance Company (FDIC) is expected to lose $667 million as a result of the failure.
A regional bank serving both retail and commercial clients, had been having financial difficulties. Last year, the bank and an investor group agreed to a capital infusion, but the deal fell through. Regretfully, Republic First Bank is the first bank in 2024 to fail, which is guaranteed by the FDIC.
The Purchase of Fulton Bank and Its Effect
Due to the effects of the transaction, Fulton Bank’s market share in Philadelphia is expected to roughly double, with combined firm deposits of over $8.6 billion. Republic First Bank’s 32 locations will reopen as Fulton Bank locations, and all of its clients will instantly become Fulton Bank depositors.
Depositors of Republic First Bank will therefore be able to access their accounts via Internet banking, check writing, current ATMs, and debit cards without any interruptions, and they won’t have to switch banks to keep their federally insured deposit insurance coverage.
Philadelphia-based Republic First bank has already being/been acquired by Fulton Bank
— THE CHOSEN ONE (@fx_margin_call) April 28, 2024
Fulton Financial Corporation Acquired Substantially All of the Assets and Assumed Substantially All of the Deposits of Republic First Bank From the FDIC#Fulton Financial Corp rose 0.39%… pic.twitter.com/HWgpygVr3q
Fulton Financial Corporation’s Chairman and CEO, Curt Myers, expressed enthusiasm about the deal by saying, “With this transaction, we are excited to double our presence across the region.”
According to Fulton, “During this transaction, Republic Bank depositors will continue to have uninterrupted access to their accounts through online banking or by writing checks, using existing ATMs, or using debit cards.” Furthermore, “Republic Bank depositors will become Fulton depositors and do not need to change their banking relationship to retain their federally insured deposit insurance coverage,” according to a statement released by Fulton Bank.
On Monday, April 29, Fulton Bank will conduct a conference call to go over the deal. Under the ticker symbol FULT, Fulton Bank’s shares are traded on the Nasdaq. Late on Friday, they increased by 88 cents to $16.50.
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