Philadelphia-headquartered Republic First Bank was shuttered by state regulators on Friday evening, as announced by the Federal Deposit Insurance Corp. (FDIC) in a press release.
The assets of Republic Bank are now under the control of Fulton Bank, based in Lancaster, Pennsylvania, with immediate effect. Fulton Bank will also take on all deposits previously held by the Republic.
Republic First Bank, operating regionally in Pennsylvania, New Jersey, and New York, operated under the name Republic Bank and boasted approximately $6 billion in assets and $4 billion in deposits as of January 31.
The 32 branches of Republic Bank will reopen as Fulton Bank branches as early as Saturday, ensuring continued access to funds for Republic First Bank depositors via checks or ATMs starting Friday night, according to the FDIC.
Customers with Republic Bank ATM or debit cards, as well as checks, can continue using them, while those with loans from Republic should maintain regular payment schedules.
While the bank’s collapse is projected to incur a $667 million expense to the deposit insurance fund, the FDIC deemed Fulton Bank’s acquisition of Republic First Bank to be the most cost-effective solution.
Individuals holding less than $250,000 in any FDIC-insured bank account remain protected, regardless of the bank’s closure.
