Republic First Bank Acquired by Fulton Bank
On Friday, November 10, 2023, Philadelphia-based Republic First Bank was closed by state regulators and its assets were transferred to the Federal Deposit Insurance Corp. (FDIC). The FDIC then announced that Lancaster, Pennsylvania-based Fulton Bank would acquire Republic First Bank's assets, effective immediately.
Republic First Bank was a regional lender operating in Pennsylvania, New Jersey, and New York. The company did business as Republic Bank and had approximately $6 billion in assets and $4 billion in deposits as of January 31, 2023.
Fulton Bank will take over all of Republic First Bank's deposits and branches. The 32 branches will reopen as Fulton Bank branches as early as Saturday, November 11, 2023. Republic First Bank depositors can access their funds via checks or ATMs as early as Friday night, November 10, 2023.
Customers with questions about the acquisition can contact the FDIC at 1-877-467-0178. The call center is open from 9 a.m. to 6 p.m. ET on Saturday, November 11, 2023, and from 12 p.m. to 6 p.m. on Sunday, November 12, 2023. The call center will also be open from 8 a.m. to 8 p.m. on Monday, November 13, 2023, and from 9 a.m. to 5 p.m. on weekdays thereafter.
Reasons for Republic First Bank's Failure
Republic First Bank is the first FDIC-insured institution to fail in the U.S. in 2023. The last bank failure, Citizens Bank in Sac City, Iowa, occurred in November 2022.
Rising interest rates: Rising interest rates have made it more expensive for banks to borrow money. This has put pressure on banks' profits, especially those with a large amount of fixed-rate loans.
Falling commercial real estate values have made it more difficult for banks to collect on loans backed by these properties. This has led to an increase in loan losses for many banks.
The pandemic has had a significant impact on the economy, leading to increased unemployment and business closures. This has made it more difficult for banks to collect on loans and has also led to a decrease in demand for new loans.
Impact of the Acquisition
The acquisition of Republic First Bank by Fulton Bank is expected to have a positive impact on the banking industry. Fulton Bank is a well-capitalized and well-managed bank, and the acquisition will give it a stronger presence in the Mid-Atlantic region. The acquisition is also expected to benefit Republic First Bank's customers, who will now have access to a wider range of products and services.
Conclusion
The failure of Republic First Bank is a reminder of the challenges facing the banking industry. However, the acquisition by Fulton Bank is a positive development that should help to strengthen the industry and benefit consumers.