In the first U.S. bank failure of 2024, Philadelphia-based Republic First Bank was shut down by regulators on Friday and its assets immediately transferred to Lancaster’s Fulton Bank under a purchase agreement with the Federal Deposit Insurance Corporation (FDIC).
Republic First Bank, which operated 32 branches across Pennsylvania, New Jersey, and New York, had approximately $6 billion in assets and $4 billion in deposits as of late January. Its collapse is expected to cost the FDIC’s deposit insurance fund $667 million.
However, the FDIC stated that Fulton Bank’s acquisition was the least costly resolution option available. Republic’s branches will reopen as Fulton Bank locations starting Saturday, with depositors able to access their funds via ATMs, checks, and banking as usual.
“Depositors of Republic Bank will become depositors of Fulton Bank, so customers do not need to change their banking relationship,” the FDIC announced, ensuring all deposits remain insured up to $250,000 per account.
While an uncommon occurrence in a strong economy, the failure of Republic First Bank shows that there are heightened risks facing some regional and community banks amid rising interest rates and deteriorating commercial real estate values, especially for office properties.
Just last month, an investor group led by former Treasury Secretary Steven Mnuchin injected over $1 billion to rescue embattled New York Community Bancorp from similar pressures.
In the meantime, customers with questions can contact the FDIC helpline at 1-877-467-0178 during the specified hours (Eastern Time) below.
- Sunday: 12 p.m. to 6 p.m.
- Monday: 8 a.m. to 8 p.m.
- Tuesday – Friday: 9 a.m. to 5 p.m.
- Saturday: 9 a.m. to 6 p.m.
