Regional US Bank Fails Again After 6 Months... "First Failure Case This Year"

Official Announcement by U.S. Federal Deposit Insurance Corporation on the 26th
Republic First Bank Acquires Fulton Bank

Republic First Bank (Republic Bank), a regional bank in the United States established in 1988, was closed and sold to another regional bank. This marks the first bank failure in the U.S. this year, approximately six months after Citizens Bank closed last November.

The Federal Deposit Insurance Corporation (FDIC) announced on the 26th (local time) that Fulton Bank, based in Pennsylvania, will effectively assume all deposits of Republic Bank, headquartered in Philadelphia, and acquire its assets.

Previously, Pennsylvania financial authorities closed Republic Bank. The FDIC took merger and acquisition measures for this bank to protect depositors.

The FDIC stated, "The 32 Republic Bank branches in New Jersey, Pennsylvania, and New York will reopen as Fulton Bank branches on the 27th (during normal business hours) or on the 29th during regular business hours. Checks issued by Republic Bank will remain valid, and loan customers must continue to fulfill their obligations as usual."

Republic Bank customers will be converted to Fulton Bank customers. Customers do not need to change banks to maintain deposit insurance coverage. Republic Bank customers should continue to use their existing branches until they receive notification from Fulton Bank that system changes have been completed.

According to the FDIC, as of January 31, 2024, Republic Bank’s total assets were approximately $6 billion, with total deposits amounting to $4 billion. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) related to Republic Bank’s failure will reach $667 million.

The FDIC said, "Compared to other alternatives, the acquisition of Republic Bank by Fulton Bank was determined to be the least costly resolution from the DIF’s perspective."

It added, "Republic Bank is the first U.S. bank failure of this year. The last failure was Citizens Bank, a regional bank located in Sioux City, Iowa, on November 3, 2023."

Citizens Bank, established in 1929, survived the Great Depression but closed after 94 years due to loan losses. After bankruptcy, all assets and deposits were acquired by Iowa Trust and Savings Bank.