Republic First Bank collapses, Fulton Bank to acquire assets

Republic First Bank was seized by Pennsylvania state regulators with its assets sent to the Federal Deposit Insurance Corp. Fulton Financial Corp, the parent company of Fulton Bank has acquired Republic First Bank's assets and deposits, according to a report by CBS News.

Republic First Bank is the first FDIC-insured bank to fail in 2024, due in large part to rising interest rates and decreasing commercial real estate values. This collapse will cost the FDIC $667 million.

Fulton Bank will rebrand Republic Bank's 32 branches to its brand, and customers will be able to access funds via checks or ATMs.

"Depositors of Republic Bank will become depositors of Fulton Bank so customers do not need to change their banking relationship in order to retain their deposit insurance coverage," the FDIC said in a statement. "Customers of Republic Bank should continue to use their existing branches until they receive notice from Fulton Bank that it has completed systems changes that will allow its branch offices to process their accounts as well."

Fulton Bank plans to provide Republic First Bank customers with uninterrupted access to banking services.

"With this transaction, we are excited to double our presence across the region," Curt Myers, chairman and CEO of Fulton, said in a press release. "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."