US regulators seize troubled lender Republic First, sell it to Fulton Bank

April 26 (Reuters) – U.S. regulators have seized Republic First Bancorp (FRBK.PK), opens new tab and agreed to sell it to Fulton Bank, underscoring the challenges facing regional banks a year after the collapse of three peers.

Philadelphia-based Republic First, which had abandoned funding talks with a group of investors, was seized by the Pennsylvania Department of Banking and Securities.

The Federal Deposit Insurance Corp (FDIC), appointed as a receiver, said on Friday Fulton Bank, a unit of Fulton Financial Corp (FULT.O), opens new tab, will assume substantially all deposits and purchase all the assets of Republic Bank, which is the operating name for Republic First, to “protect depositors”.

Republic Bank had about $6 billion in total assets and $4 billion in total deposits, as of Jan. 31, 2024. The FDIC estimated the cost of the failure to its fund will be $667 million.

Apart from deposits, Republic also had borrowings and other liabilities of approximately $1.3 billion, Fulton said in a statement.

Fulton said the deal almost doubles its presence in the Philadelphia market with combined company deposits of approximately $8.6 billion.

Source: REUTER