Republic First Bank, with $6 billion in assets and $4 billion in deposits, has been closed by state regulators. The bank, which operated in Pennsylvania, New Jersey, and New York, will now have its assets taken over by Fulton Bank.
Customers of Republic Bank can rest assured that they will still have access to their funds, as Fulton Bank will be assuming all deposits. Customers can access their funds through checks or ATMs, with Republic Bank’s 32 branches set to reopen as branches of Fulton Bank as early as Saturday.
Unfortunately, the failure of Republic Bank is expected to cost the deposit insurance fund $667 million. Rising interest rates and falling commercial real estate values are being cited as reasons for the bank’s downfall.
For customers with questions about the acquisition, the FDIC has set up a hotline at 1-877-467-0178. The call center will have detailed hours for customers seeking more information about the transition.
This news is sure to have an impact on the financial industry in the region, as customers of Republic Bank adjust to the change and as Fulton Bank takes on the responsibility of managing the assets and deposits of their newest customers.
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