Fulton Bank Buys Republic Bank in Regional Banking Shift

Fulton Bank recently made a significant move in the regional banking landscape by acquiring Republic Bank. This acquisition is a notable development in the banking industry, marking a shift in the market.

The deal was finalized in 2022, with Fulton Bank's parent company, Fulton Financial Corporation, announcing the purchase of Republic Bank's assets and deposits. This move expands Fulton Bank's presence in the region.

Fulton Bank's acquisition of Republic Bank is a strategic move to increase its market share and offer a wider range of services to its customers. The bank is now better positioned to compete with other major players in the region.

The acquisition is expected to bring several benefits to Fulton Bank's customers, including improved access to banking services and a broader range of financial products.

Fulton Bank acquired the assets of Republic First Bank after it became the first bank to fail this year. The Pennsylvania Department of Banking and Securities took possession of Republic First Bank, citing its "unsafe and unsound" condition.

Fulton purchased about $6 billion in assets from Republic First, including an investment portfolio of approximately $2 billion and loans of roughly $2.9 billion. It also assumed liabilities of about $5.3 billion, including deposits of approximately $4 billion and other borrowings and liabilities of roughly $1.3 billion.

The acquisition doubles Fulton's presence in the region, including Philadelphia, where it now has deposits of approximately $8.6 billion. This improves its liquidity profile, decreasing its loan to deposit ratio from 99 percent to 92 percent.

Fulton Bank is making a $5 million donation to the Fulton Forward Foundation to provide additional impact grants to nonprofit community organizations across the region. This donation is part of the transaction and is separate from the acquisition itself.

The FDIC estimates Republic Bank's failure will cost the Deposit Insurance Fund about $667 million. This is the least costly resolution for the FDIC, which is why they chose Fulton Bank to acquire Republic's assets.

Republic Bank's 32 branches in Pennsylvania, New Jersey, and New York were closed by state regulators on Friday, April 26.

The Federal Deposit Insurance Corporation (FDIC) entered into an agreement with Fulton Bank to acquire Republic Bank's assets and deposits.

Customers of Republic Bank shouldn't experience any major disruptions as Fulton Bank has already taken over Republic's assets.

Fulton Bank is now operating Republic's 32 branches, and depositors are transitioning from the failed bank to the acquirer.

The FDIC estimates the cost related to the failure will be $667 million.

Fulton Bank is purchasing $6 billion in assets from Republic, including its $2 billion investment portfolio and $2.9 billion in loans.

Republic Bank had an active business that specialized in jumbo mortgage products, but it failed to raise $75 million in capital from investors and exited the mortgage lending space.

The bank's 32 branches in Pennsylvania, New Jersey, and New York are now operating under the Fulton Bank brand.

Customers of Republic Bank should continue to use their existing branches until they receive notice from Fulton Bank that it has completed system changes.

The FDIC says it entered into the agreement with Fulton to acquire Republic because compared to other alternatives, it is the least costly resolution.

The transaction also reduces Fulton's loan-to-deposit ratio from 99% to 92%, improving its liquidity.

Fulton claims that the transaction will double its presence across the region.

All regulatory approvals have been obtained, including from the Office of the Comptroller of the Currency.

The regional banking impact of Republic Bank's failure is significant, with 32 branches in Pennsylvania, New Jersey, and New York being taken over by Fulton Bank.

These branches will re-open as branches of Fulton Bank as early as Saturday, April 27, allowing customers to access their money and continue banking as usual.

Customers of Republic Bank can write checks, use ATM or debit cards, and make loan payments without any disruption.

The only noticeable change will be that checks will eventually say Fulton on them instead of Republic.

The FDIC estimates that Republic Bank's failure will cost the Deposit Insurance Fund about $667 million.

Customers don't have to do anything, just continue doing banking the way they normally would.