Lancaster-based Fulton Bank has acquired the assets of Republic First Bank after the latter became the first bank to fail this year.
Last week, the Pennsylvania Department of Banking and Securities (DoBS) took possession of the Philadelphia-based Republic First Bank, citing its “unsafe and unsound” condition. The DoBS then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of the bank.
Subsequently, the FDIC entered into a purchase and assumption agreement with Fulton Bank, National Association of Lancaster, Pa., to acquire deposits and substantially all of the assets of Republic First Bank. The transaction has closed, as all regulatory approvals have been obtained.
“With this transaction, we are excited to double our presence across the region,” Fulton Chairman and CEO Curt Myers said. “We look forward to welcoming Republic Bank’s team members and customers to Fulton and providing our comprehensive set of consumer, commercial and wealth advisory products and services to even more customers.”
Fulton purchased about $6 billion in assets from Republic First, via the FDIC, including an investment portfolio of approximately $2 billion and loans of roughly $2.9 billion. It also assumed liabilities of about $5.3 billion, including deposits of approximately $4 billion and other borrowings and liabilities of roughly $1.3 billion.
The acquisition also advances Fulton’s growth plan in a strategically important market, Philadelphia, where it doubles its presence. The combined company will have deposits of approximately $8.6 billion. Also, its loan to deposit ratio will decrease from 99 percent to 92 percent, improving its liquidity profile.
FDIC officials assured Republic First customers that their deposits are safe, and that no money will be lost due to the closure of the bank.
During the transition, Republic Bank depositors will continue to have uninterrupted access to their accounts through online banking or by writing checks, using existing ATMs or debit cards, Fulton officials said. Republic Bank depositors will become Fulton depositors, so they do not need to change their banking relationship to retain their federally insured deposit insurance coverage.
Starting this week, former Republic Bank financial centers will reopen as Fulton with their regularly scheduled operating hours.
Additionally, as part of this transaction, Fulton Bank is making a $5 million donation to the Fulton Forward Foundation to provide additional impact grants to nonprofit community organizations across the region, particularly those in underserved communities.
Last year, three major banks failed and went into FDIC receivership, including Silicon Valley Bank, Signature Bank, and First Republic.