Pennsylvania regulators recently seized Republic First Bank, leading to the FDIC reaching a deal with Fulton Financial to take over the bank. Under the terms of the agreement, Fulton Financial will assume most of the deposits and purchase a majority of the bank’s assets.
Republic Bank had a significant presence with 32 branches in New Jersey, Pennsylvania, and New York. These branches will now reopen as Fulton Bank branches following the takeover. The bank had about $6 billion in total assets and $4 billion in total deposits.
The cost of insuring the deposits related to Republic Bank’s failure is estimated to be around $667 million by the FDIC. Following the news of the takeover, Fulton Financial’s stock saw a 10% increase to 17.20, with a 17.09 buy point based on a four-month consolidation or a long handle in a base dating back to late 2022.
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