In a recent development, Philadelphia-based Republic First Bank, operating as Republic Bank, has been closed by the Pennsylvania Department of Banking and Securities. The Federal Deposit Insurance Corporation (FDIC) has been appointed as the receiver to ensure the protection of depositors' funds.

To safeguard the interests of depositors, the FDIC has entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania. Fulton Bank will assume the majority of the deposits and acquire most of the assets of Republic Bank. This acquisition will enable the smooth transition of operations for Republic Bank's 32 branches across New Jersey, Pennsylvania, and New York. These branches will reopen as Fulton Bank branches on Saturday or Monday, depending on their usual business hours.

Customers of Republic Bank can access their funds during this transition period by writing checks or using ATM and debit cards. Checks drawn on Republic Bank will continue to be processed, and loan customers are advised to make their payments as usual.

It is important to note that depositors of Republic Bank will now become depositors of Fulton Bank. Customers need not change their banking relationship in order to retain their deposit insurance coverage. They are encouraged to continue using their existing branches until they are notified by Fulton Bank that systems changes have been completed to process their accounts.

For any inquiries regarding Fulton Bank's acquisition of Republic Bank, customers can reach out to the FDIC's toll-free number: 1-877-467-0178. The FDIC's Call Center will be operational during specific hours throughout the weekend. Additionally, interested parties may visit the FDIC's website for more information.

Republic Bank, with approximately $6 billion in total assets and $4 billion in total deposits as of January 31, 2024, marks the first bank failure in the United States this year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) related to the failure of Republic Bank will amount to $667 million. The DIF, created by Congress in 1933 and managed by the FDIC, aims to protect the deposits held at the nation's banks. The most recent bank failure prior to this was Citizens Bank in Sac City, Iowa, on November 3, 2023.