NEW DELHI: Republic First Bank, a regional lender operating in Pennsylvania, New Jersey and New York, has been shut down by regulators. The Federal Deposit Insurance Corporation (FDIC) announced the seizure of the Philadelphia-based bank on Friday. The institution, known as Republic Bank, had approximately $6 billion in assets and $4 billion in deposits as of Jan. 31.
Lancaster, Pennsylvania-based Fulton Bank has agreed to acquire most of the failed bank's deposits and assets, the agency said. Under the transaction, Fulton Bank will assume substantially all of Republic Bank's deposits and purchase nearly all of its assets. As a result, 32 Republic Bank branches are expected to reopen as Fulton Bank branches as early as Saturday. The FDIC also announced that Republic First Bank depositors will be able to access their funds through checks and ATMs as early as Friday night.
The bank's failure is expected to cost the Deposit Insurance Fund $667 million. This marks the first failure of an FDIC-insured institution in the United States this year. The previous bank failure occurred in November and involved Citizens Bank, based in Sac City, Iowa. Usually, when the economy is strong, on average he only closes 4-5 banks each year.
Last month, under the Trump administration, a group of investors led by former U.S. Treasury Secretary Steven Mnuchin injected more than $1 billion into New York's Community Bancorp, which had been hit hard by challenges in the commercial real estate sector. An agreement was reached to do so. Management difficulties arising from the acquisition of a bank in financial crisis.
Lancaster, Pennsylvania-based Fulton Bank has agreed to acquire most of the failed bank's deposits and assets, the agency said. Under the transaction, Fulton Bank will assume substantially all of Republic Bank's deposits and purchase nearly all of its assets. As a result, 32 Republic Bank branches are expected to reopen as Fulton Bank branches as early as Saturday. The FDIC also announced that Republic First Bank depositors will be able to access their funds through checks and ATMs as early as Friday night.
The bank's failure is expected to cost the Deposit Insurance Fund $667 million. This marks the first failure of an FDIC-insured institution in the United States this year. The previous bank failure occurred in November and involved Citizens Bank, based in Sac City, Iowa. Usually, when the economy is strong, on average he only closes 4-5 banks each year.
Last month, under the Trump administration, a group of investors led by former U.S. Treasury Secretary Steven Mnuchin injected more than $1 billion into New York's Community Bancorp, which had been hit hard by challenges in the commercial real estate sector. An agreement was reached to do so. Management difficulties arising from the acquisition of a bank in financial crisis.
