What to Know About Republic First Bancorp Bank Sale and FDIC

Republic First Bancorp's sale was finalized in 2021, marking a significant change for the bank. The sale was a result of a long process that began in 2019.

The FDIC played a crucial role in the sale, ensuring a smooth transition for customers and employees. The FDIC is responsible for managing the assets and liabilities of failed banks.

Republic First Bancorp, a Philadelphia-based lender, has collapsed and been sold to Fulton Bank after US regulators seized the bank. The Federal Deposit Insurance Corp. (FDIC) appointed Fulton Bank to assume substantially all of Republic First's deposits and purchase its assets.

The bank's 32 branches in New Jersey, Pennsylvania, and New York will reopen as branches of Fulton Bank on Saturday or Monday during business hours. This marks the latest regional bank failure following the collapse of Silicon Valley and Signature banks in March 2023 and First Republic in May.

Republic First had about $6 billion in total assets and $4 billion in total deposits as of January 31, 2024. The FDIC estimates that the cost to the Deposit Insurance Fund related to the failure of Republic Bank will be $667 million.

The bank's stock price has plummeted from just over $2 at the start of the year to about 1 cent on Friday, leaving it with a market capitalization below $2 million. Its shares were delisted from the Nasdaq in August and now trade over the counter.

Republic First had attempted to cut costs and improve profitability by exiting its mortgage origination business and consolidating branches, but these efforts were ultimately unsuccessful.

FRBK, the stock ticker for Republic First Bancorp, is a publicly traded company.

Republic First Bancorp's parent company, Republic Bank, was founded in 1994 and has since grown to become one of the largest community banks in the Philadelphia region.

FRBK stock is listed on the NASDAQ stock exchange under the ticker symbol FRBK.

Republic First Bancorp operates 27 branches across New Jersey and Pennsylvania.

The company has a market capitalization of over $1 billion.

The FDIC is actively seeking buyers for Republic First Bancorp, a Philadelphia regional bank that operates as Republic Bank.

The regulator is approaching potential buyers and soliciting bids for the bank, which has a market value of less than $1 million.

The FDIC initially sought bidders for the bank in late 2023 but paused the process when Republic First reached a deal with an investor who was to invest $35 million.

That deal was terminated in February, leading the FDIC to restart its search for a buyer.

Republic First Bancorp Chairman Andrew B. Cohen and President and CEO Thomas X. Geisel attributed the bank's difficulties to former leadership's expansion and poor internal controls.