FDIC Insures Deposits of Failed Republic Bank Through Deal with Fulton Financial

Pennsylvania regulators have recently seized Republic First Bank, leading to the FDIC reaching a deal with Fulton Financial to take over the bank. Under this agreement, Fulton Financial will assume most of the deposits and purchase a majority of the bank’s assets.

Republic Bank had a significant presence with 32 branches in New Jersey, Pennsylvania, and New York. These branches will now reopen as Fulton Bank branches with the takeover. The bank had about $6 billion in total assets and $4 billion in total deposits.

The FDIC estimates the cost of insuring the deposits related to Republic Bank’s failure to be around $667 million. Following the news of the takeover, Fulton Financial’s stock saw a 10% increase to 17.20, with a 17.09 buy point based on a four-month consolidation or a long handle in a base dating back to late 2022.

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