Pennsylvania-based Republic First Bancorp became the first U.S. bank to fold in 2024. The state regulators closed Republic First earlier this week and appointed the Federal Deposit Insurance Corp (FDIC) as receiver.
In a statement released on Friday, FDIC announced that all the deposits and the assets of Republic First were sold to Lancaster, Pennsylvania-based Fulton Bank. On Saturday and Monday, depending on the working hours, the 32 branches of Republic First in New Jersey, Pennsylvania, and New York will re-open as branches of Fulton Bank.
The depositors at Republic First will now become depositors at Fulton Bank, FDIC added. The bank entered 2024 having $4 billion in total deposits and $6 billion in total assets.
“To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank,” the FDIC said in a statement.
Republic Bank faced problems in early 2023, with higher costs and lack of profitability forcing the bank to shut down its mortgage business and cut workplaces. It later came to a deal with a group of investors in an attempt to continue operating, but the arrangement fell through in February and prompted FDIC to renew efforts to take over the bank.