FINANCE
Shockwaves in the Financial World: FDIC takes control of Republic First Bank marking the first major bank closure of 2024
The FDIC announced the closure of Republic First Bank, which held $10 billion in deposits and assets, marking the first major bank closure of the year
Last Friday, the US Federal Deposit Insurance Corporation (FDIC) announced that Republic First Bank, a Pennsylvania-based bank, would be closed. Steps were taken to protect depositors holding their money in the bank through an agreement with Fulton Bank, which assumed the responsibility for nearly all the deposits and purchased almost all of the assets previously held by Republic First Bank. The deposits and assets held by Republic First totaled around $10 billion.
The FDIC estimated that closing the bank and transferring ownership of the deposits and assets to the Deposit Insurance Fund would cost $667 million. The closure represents the first bank failure of 2024 and comes after five closed last year, including Silicon Valley Bank and First Republic Bank.
How many branches did the bank operate?
The FDIC reported that “as of January 31, 2024, Republic Bank had approximately $6 billion in total assets and $4 billion in total deposits,” with thirty-two branches scattered across New Jersey, New York, and Pennsylvania. Members of the bank should be aware that these branches reopened on Saturday, 27 April, as Fulton Bank. To support customers of the now-defunct institution, “depositors of Republic Bank can access their money by writing checks or using ATM or debit cards.” Those who have made out checks will be processed, and the bank has informed customers that they “should continue to make their payments as usual.”
No actions need to be taken for those who received payments, like Social Security benefits, to their Republic First accounts. Now that the institution no longer exists, payments of this nature will be deposited in Fulton Bank accounts created for Republic First customers. For now, no updates will need to be made to automatic payments customers have signed up for because the “routing number and account number will remain the same until [they] are notified in writing by Fulton Bank, N.A.”
What to do if you have questions about your banking needs
The FDIC will be available to support former Republic First Bank customers at 1-877-467-0178 on weekdays between 9:00 a.m. and 5 p.m. ET.