Customers of Philadelphia-based Republic First Bank are now customers of Fulton Bank.
Republic Bank was closed Friday by the Pennsylvania Department of Banking and Securities, and the Federal Deposit Insurance Corp. was appointed as receiver. This was the first bank closure of 2024.
To protect Republic’s depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster — to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank, effective immediately.
In the transaction, Fulton Bank has purchased assets of approximately $6 billion. In addition, it has assumed liabilities of approximately $5.3 billion. All regulatory approvals have been obtained, and the transaction has closed.
As word spread Friday about the closure, information was posted on Republic’s website for customers. Republic Bank operates in New Jersey, New York and Pennsylvania, including nine branches in Montgomery (3), Delaware (3), and Bucks (3) counties, in addition to three Philadelphia locations.
Staring Saturday morning, 32 former Republic Bank financial centers reopened as Fulton with their regularly scheduled operating hours. Customers were also reassured Friday that during the transition, they will continue to have uninterrupted access to their accounts through online banking or by writing checks, using existing ATMs or debit cards.
Depositors of Republic Bank are now depositors of Fulton Bank so customers do not need to change their banking relationship to retain their deposit insurance coverage, according to the FDIC.
In an emailed response to questions Fulton Bank said it is telling Republic Bank customers that they should continue banking the same way they have been. There are no immediate changes to their accounts, debit cards, online or mobile banking. They can continue banking at the same locations, which are now operating under the name Fulton Bank.
In the emailed response, Fulton said it expects to transfer Republic Bank to Fulton Bank’s systems, likely later this year.
“We will communicate with customers in advance about any changes that will be made. In the meantime, they should continue to do their banking the same way they have been,” the company said in its response.
“This is a great opportunity for us — in line with our growth strategy to build market share in our existing footprint,” Curt Myers, Fulton chairman and CEO, said Monday during a conference call, adding the opportunity nearly doubles Fulton’s presence across the Philadelphia region. “We now have a significantly more extensive network and provide products and services to about 60,000 more consumer customers and 11,000 more business customers across the region.”
Information for customers
According to a Frequently Asked Questions (FAQ) document posted on the Republic Bank website by the FDIC on Friday, Republic Bank customers’ money is safe.
“No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to Fulton Bank, N.A.,” the document stated.
The FAQ also states that all direct deposits, auto payments, bill pay and online banking will continue as usual.
“Your routing number and account number will remain the same until you are notified in writing by Fulton Bank, N.A.”
Customers with questions can contact the FDIC call center at 1-877-467-0178, from 9 a.m. to 5 p.m.
A bank failure, according to the FDIC, is the closing of a bank by a federal or state banking regulatory agency. Generally, a bank is closed when it is unable to meet its obligations to depositors and others.
In the event of a closure, the FDIC notifies each depositor in writing using the depositor’s address on record with the bank, mailed immediately after the bank closes. When the failed bank is acquired by another bank, the assuming bank also notifies the depositors.
In closures, the FDIC serves two roles. As the insurer of the bank’s deposits, the FDIC pays insurance to the depositors up to the insurance limit. Second, the FDIC, as the “Receiver” of the failed bank, assumes the task of selling/collecting the assets of the failed bank and settling its debts, the FDIC said.
In 2023, there were five bank failures.
The FDIC estimates that the cost to the Deposit Insurance Fund related to the failure of Republic Bank will be $667 million.
Offering of Common Stock
On Monday, Fulton Financial Corp. announced the pricing of its public offering of 16,666,667 shares of its common stock at a price to the public of $15 per share, for an aggregate offering amount of $250 million.
The corporation expects that the net proceeds of the offering will be approximately $238 million.
Fulton intends to use the net proceeds of the offering for general corporate purposes, including supporting new opportunities in connection with its business strategy following its acquisition of substantially all of the assets and substantially all of the deposits and certain liabilities of Republic First Bank.
