Republic First Bank, a regional lender operating in Pennsylvania, New Jersey, and New York, failed and was closed by state regulators on Friday night. The Pennsylvania Department of Banking and Securities appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver for the bank. The closure of Republic First Bank marks the first bank failure in the United States in 2024.
Republic First Bancorp, doing business as Republic Bank, was a Philadelphia-based bank founded in 1988. In 2008, the bank shifted from commercial banking to retail banking. On April 26, 2024, U.S. regulators seized Republic First Bancorp after business hours and agreed to sell it to Fulton Bank.
Acquisition by Fulton Bank
To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association, based in Lancaster, Pennsylvania. Fulton Bank will assume substantially all of the deposits and purchase substantially all of the assets of Republic First Bank. As a result, Republic First Bank’s 32 branches will reopen as branches of Fulton Bank, effective immediately. Customers of Republic First Bank do not need to change their banking relationship in order to retain their deposit insurance coverage.
Reasons for Republic First Bank’s Failure
The specific reasons for Republic First Bank’s failure have not been explicitly mentioned in the available search results. However, it is worth noting that rising interest rates and falling commercial real estate values, particularly for office buildings affected by high vacancy rates following the pandemic, have increased financial risks for many regional and community banks. Additionally, outstanding loans backed by properties that have lost value can pose challenges for banks in terms of refinancing.
Contacting the FDIC and Fulton Bank
If customers have any questions about the acquisition or need assistance, they can contact the FDIC at 1-877-467-0178. The FDIC’s call center is open on Saturday from 9 a.m. to 6 p.m. ET, on Sunday from 12 p.m. to 6 p.m. ET, on Monday from 8 a.m. to 8 p.m. ET, and on subsequent days from 9 a.m. to 5 p.m. ET.
Protection of Deposits
It is important to note that anyone with less than $250,000 in any bank account insured by the FDIC is protected, even if their bank fails.