With branches in Bucks County, first bank failure of year is Republic; what it means for you

PHILADELPHIA — Long-struggling Philly-based Republic Bank failed Friday, closed by a regulator who then arranged its takeover by another firm.

After shutting Republic, the Pennsylvania Department of Banking and Securities appointed the Federal Deposit Insurance Corp. as the defunct firm's receiver.

The FDIC then reached an agreement with Lancaster-based Fulton Bank NA to buy substantially all of Republic's assets and to assume its deposits.

Republic's collapse marked the first U.S. bank failure this year, the FDIC said in a statement.

It followed more than two years of money woes and management turmoil at Republic, which has 32 branches in South Jersey, New York and Pennsylvania, including Bensalem, Lower Southampton, Bristol Township and Abington.

Takeover attempt went on for years

A shareholder group led by South Jersey businessman George Norcross III launched an effort to win control of Republic in February 2022.

The fight came after a push to add offices by Moorestown, N.J., banker Vernon W. Hill II, who at that point was Republic's chairman and CEO.

The battle continued even as the bank's finances worsened and top executives came and went.

The Norcross group eventually purchased almost 10 percent of Republic's stock, according to a Feb. 29 filing with the U.S. Securities and Exchange Commission.

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Stock in the parent firm, Republic First Bancorp, Inc., was trading at about $4.30 per share when the Norcross assault began.

It had a final value of $0.01 per share shortly before 2 p.m. Friday.

Republic last announced financial results in May 2023, when it reported a first-quarter loss of $9.7 million. That was more than its earnings for all of 2022.

Republic, founded in 1988, had assets of about $6 billion and deposits of $4 billion at Jan. 31, the FDIC said.

It estimated the failure would drain $667 million from a federal fund that insures bank deposits.

Republic’s branches opened as Fulton offices on its next business day, the FDIC said.

Republic's customers should continue to use their existing branches until Fulton announces its offices can handle their accounts, too, it continued.

Fulton gets quick expansion

The acquisition doubles Fulton’s presence in the Philadelphia market, giving it combined deposits of about $8.6 billion.

Fulton said Republic depositors "will continue to have uninterrupted access to their accounts through online banking or by writing checks, using existing ATMs or debit cards."

Republic depositors will become Fulton depositors "and do not need to change their banking relationship to retain their federally insured deposit insurance coverage," the company said.

As part of the transaction, Fulton is donating $5 million to provide grants to nonprofits that promote economic empowerment, particularly in underserved communities.

Fulton Bank, which dates to 1882, is part of a $27 billion holding company, Fulton Financial Corp.

It has more than 200 "financial centers" in New Jersey, Maryland, Delaware, Virginia and Pennsylvania, including Lower Makefield, Doylestown, Bensalem, Upper Southampton and Warminster.

Customers with questions about Republic's acquisition may call the FDIC toll-free at 1-877-467-0178.

The line will be staffed Monday from 8 a.m. to 8 p.m.; and thereafter from 9 a.m. to 5 p.m.

Interested parties may also visit the FDIC’s website.

Jim Walsh is a senior reporter with the Courier-Post, Burlington County Times and The Daily Journal. Email: Jwalsh@cpsj.com.

This article originally appeared on Cherry Hill Courier-Post: Fulton Bank takes over Republic Bank after bank’s failure