Fulton Bank, a subsidiary of Fulton Financial Corporation, took over almost all deposits and bought out almost all assets of Republic First Bank (Republic Bank) from the U.S. Federal Deposit Insurance Corp. (Federal Deposit Insurance Corp., FDI). This is reported in a press release from Fulton Bank.
The deal includes assets of Republic Bank in the amount of $6.0 billion, including an investment portfolio of $2.0 billion and loans of $2.9 billion, as well as commitments of $5.3 billion, including deposits of about $4 billion and other loans of $1.3 billion.
On April 26, 2024, the FDI seized Republic Bank. The bankruptcy of Republic Bank is the first bankruptcy of an American bank in 2024 and will cost FDI $667 million.
The transaction is considered completed, since all permits from regulatory authorities, including approval from the Office of the Comptroller of the Currency, were received earlier.
As part of the deal, Fulton doubled its presence in the Philadelphia market, while the total volume of deposits amounted to $8.6 billion, and the loan-to-deposit ratio decreased from 99% to 92%. In addition, the bank expects to increase the bank's customer base through a full range of consumer and commercial consulting products and services. in a strategically important market.
As part of the transition period, Republic Bank depositors will retain access to accounts through online banking and become Fulton depositors without changing banking relationships.
In addition, Fulton Bank is investing $5.0 million in the Fulton Forward Foundation to provide additional grants to regional non-profit community organizations to expand economic opportunities, especially in low-income communities.
Piper Sandler & Co. and BofA Securities, Inc. acted as financial advisers to Fulton, and Sullivan & Cromwell LLP acted as legal counsel to the company.
Fulton Bank is a subsidiary of Fulton Financial Corporation, a $27 billion financial services holding company, and the main local bank in the Mid-Atlantic region. Fulton Bank offers a wide range of products and services in 200 financial centers in Pennsylvania, New Jersey, Maryland, Delaware and Virginia in the USA. The headquarters is located in Lancaster, Pennsylvania.
Republic Bank is an American commercial bank with headquarters in San Francisco (California). The bank specialized in mortgage lending and asset management.
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