Republic First Bank Closes Amid Pennsylvania Regulator Action

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Written By Blue & Gold NLR Team

 

 

 

 

The Federal Deposit Insurance Corporation (FDIC) announced on Friday the closure of Republic First Bank by Pennsylvania state regulators, marking the first U.S. bank failure of the year.

Philadelphia-based Republic First Bank, also known as Republic Bank, was shuttered by the Pennsylvania Department of Banking and Securities, with the FDIC appointed as receiver. To safeguard depositors, an agreement was made for Fulton Bank, National Association of Lancaster, Pennsylvania, to assume the majority of deposits and assets of Republic Bank.

With approximately $6 billion in total assets and $4 billion in total deposits as of January, Republic Bank’s closure contrasts with the larger regional bank failures witnessed last year.

According to the FDIC, the former bank’s 32 branches across New Jersey, Pennsylvania, and New York will reopen under Fulton Bank’s operation, ensuring continued service for customers.

Depositors at Republic Bank will transition to Fulton Bank, with FDIC deposit insurance providing coverage of up to $250,000 per depositor.

Earlier reports from Bloomberg News indicated the FDIC’s efforts to find buyers for the regional lender, leading up to the bank’s closure.

Republic Bank’s failure follows a series of challenges for regional banks amid volatile interest rates, echoing the broader crisis triggered by Silicon Valley Bank’s collapse last year.

It’s important to note that Republic First Bank is distinct from First Republic Bank, a San Francisco-based commercial bank that closed in May 2023, with its assets predominantly acquired by JPMorgan Chase.

The closure of Republic Bank underscores the challenges facing regional banks in the current economic climate, with the industry navigating through heightened uncertainties.

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