Republic First Bank Shuts Down: The Pennsylvania Department of Banking and Securities closed the Philadelphia-based Republic First Bank this week, making it the first bank in the United States to fail in 2024.
Fulton Bank will transfer “substantially all deposits” from Republic Bank.
The Federal Deposit Insurance Corporation (FDIC) announced in a statement on Friday that it had reached an agreement with Fulton Bank, a Lancaster, Pennsylvania-based financial institution, to “assume substantially all of the deposits and purchase substantially all of the assets” of Republic First Bank, formerly known as Republic Bank.
The FDIC reported that Republic Bank had approximately $4 billion in total deposits and $6 billion in total assets.
Philadelphia-based Republic Bank was closed late today by Pennsylvania bank regulators, which appointed the FDIC as receiver. To protect depositors, we entered into an agreement with Fulton Bank to assume substantially all deposits and assets of Republic.https://t.co/Fzusk2L74Q pic.twitter.com/b91USjtr4Z
— FDIC (@FDICgov) April 26, 2024
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Customers become Fulton Bank depositors by default.
The government body added that the 32 Republic Bank locations in Pennsylvania, New Jersey, and New York would become Fulton Bank branches this weekend or Monday.
“For the remainder of the evening and the weekend, Republic Bank depositors may withdraw their funds via ATM or debit card,” FDIC said. “Republic Bank will continue to process checks, and we advise loan customers to resume their regular payment schedules.”
“To maintain deposit insurance coverage, customers will not need to change their banking relationship; instead, Republic Bank will transfer deposits to Fulton Bank.”
How much does the FDIC safeguard the funds of depositors?
The FDIC protects individual client savings in qualified accounts at a bankrupt FDIC-insured bank up to $250,000. Thus, Republic Bank deposits of $250,000 or less are safe, according to the FDIC.
“Since January 1, 1934, when FDIC insurance began, no depositor has suffered a loss of one penny in insured funds due to a failure,” the FDIC said.
The Deposit Insurance Fund (DIF), funded “through premiums paid by banks and savings associations for coverage,” protects depositors’ funds, according to the organization.
Republic Bank’s bankruptcy will cost the DIF $667 million, according to the FDIC. The institution’s announcement noted that it is the first American bank to fail since November’s Citizens Bank failure in Sac City, Iowa.
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