WASHINGTON — Republic First Bank, based in Philadelphia, faced closure today by the Pennsylvania Department of Banking and Securities, prompting the Federal Deposit Insurance Corporation (FDIC) to step in as the receiver. In an effort to safeguard depositors, the FDIC struck a deal with Fulton Bank, National Association based in Lancaster, Pennsylvania, to take over the deposits and assets of Republic Bank.

With 32 branches spread across New Jersey, Pennsylvania, and New York, Republic Bank customers can expect a smooth transition as Fulton Bank assumes control. Depositors will be able to access their funds via checks, ATMs, or debit cards during the transition period. Loan customers are advised to continue making payments as usual.

The acquisition will see the former Republic Bank customers becoming clients of Fulton Bank, without the need to alter their banking arrangements to maintain deposit insurance coverage. Until further notice from Fulton Bank regarding system updates, customers are encouraged to continue using their current Republic Bank branches.

For inquiries regarding Fulton Bank’s acquisition of Republic Bank, concerned parties can contact the FDIC at 1-877-467-0178. The FDIC’s Call Center will be available for assistance during specified hours. Additionally, information can be found on the FDIC website.

As of January 31, 2024, Republic Bank held assets totaling approximately $6 billion, with total deposits amounting to $4 billion. The FDIC projects a cost of $667 million to the Deposit Insurance Fund (DIF) due to the bank’s failure. Choosing Fulton Bank over other options, the FDIC considers it the most cost-effective solution while protecting depositors’ interests.

Republic Bank’s closure marks the first bank failure in the U.S. this year, following the collapse of Citizens Bank in Sac City, Iowa, on November 3, 2023. The FDIC remains committed to preserving the integrity of the nation’s banking system through strategic interventions when necessary.