Republic First Bank is the first FDIC-insured bank to fail

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Republic Bank’s assets are now being taken over by Lancaster, Pennsylvania-based Fulton Bank effective immediately.
The company did business as Republic Bank and had roughly $6 billion in assets and $4 billion in deposits as of Jan. 31.
Republic Bank’s 32 branches will reopen as branches of Fulton Bank as early as Saturday.
If you have a Republic Bank ATM or debit card, or a check, you can still use them.
“Customers of Republic Bank should continue to use their existing branches until they receive notice from Fulton Bank that it has completed systems changes that will allow its branch offices to process their accounts as well.”
The bank’s failure is expected to cost the deposit insurance fund $667 million, but the FDIC said Fulton Bank acquiring Republic First Bank was the cheapest resolution.
How to contact the FDIC and Fulton Bank The FDIC says customers with questions about the acquisition can contact the FDIC at 1-877-467-0178.
ET on Saturday and from 12 p.m. to 6 p.m. on Sunday, 8 a.m. to 8 p.m. on Monday and 9 a.m. to 5 p.m. on days afterward.

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PHILADELPHIA (CBS/AP) — On Friday night, state regulators closed Philadelphia-based Republic First Bank and transferred its assets to the Federal Deposit Insurance Corp. In a press release, the FDIC declared.

With immediate effect, Fulton Bank, based in Lancaster, Pennsylvania, has assumed ownership of Republic Bank’s assets. All deposits are also being assumed by Fulton.

Regional lender Republic First Bank has locations in Pennsylvania, New Jersey, and New York. As of January, the company, which operated under the name Republic Bank, had about $6 billion in assets and $4 billion in deposits. 31.

As early as this Saturday, the 32 Republic Bank locations will reopen as Fulton Bank locations. According to the FDIC, customers of Republic First Bank can start using checks or ATMs to access their money as early as Friday night.

You can still use them if you have a check or an ATM card from Republic Bank. It is still necessary for you to make regular loan payments if you have one with Republic.

The FDIC stated that customers do not need to switch banking relationships in order to maintain their deposit insurance coverage because “Depositors of Republic Bank will become depositors of Fulton Bank.”. “Until Fulton Bank notifies its customers that system modifications have been completed and its branch offices are able to handle their accounts as well, Republic Bank customers should stick with their current branches. ****.

The FDIC stated that Fulton Bank purchasing Republic First Bank was the least expensive solution, despite the fact that the bank’s failure is predicted to cost the deposit insurance fund $667 million.

Even in the event that their bank fails, anyone holding less than $250,000 in any FDIC-insured bank account is safe.

What caused Republic First Bank to collapse?

It is the first bank in the United States to fail that is insured by the FDIC. s. in 2024. In November of 2023, Citizens Bank, a bank headquartered in Sac City, Iowa, failed.

There are typically only four or five bank closures annually in a robust economy.

A number of regional and community banks are facing greater financial risk as a result of rising interest rates and declining values of commercial real estate, particularly in office buildings that are dealing with high vacancy rates after the disease. Refinancing outstanding loans backed by depreciating properties is difficult.

In the previous month, a group of investors led by Steven Mnuchin—the former U.S. S. In order to save New York Community Bancorp, which has been severely impacted by growing pains from its acquisition of a failing bank and weaknesses in the commercial real estate market, the Treasury secretary during the Trump administration consented to provide more than $1 billion.

Contact information for Fulton Bank and the FDIC.

Customers with inquiries concerning the acquisition can reach the FDIC by calling 1-877-467-0178, according to the agency.

Contact center hours start at 9 a.m. m. until six p.m. m. ET starting at 12 p.m. on Saturday. me. up until 6 p.m. M. at 8 a.m. on Sunday. me. up until 8 p.m. me. on Monday at nine in the morning. m. until 5 p.m. M. a few days later.

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