US regulators person seized Republic First Bancorp and agreed to waste it to Fulton Bank, nan Federal Deposit Insurance Corp. said Friday, underscoring nan challenges facing location banks a twelvemonth aft nan collapse of 3 peers.
The Philadelphia-based bank, which had abandoned backing talks pinch a group of investors, was seized by nan Pennsylvania Department of Banking and Securities.
The FDIC, appointed arsenic a receiver, said Fulton Bank, a portion of Fulton Financial, will presume substantially each deposits and acquisition each nan assets of Republic Bank to “protect depositors.”
Republic Bank, based successful Philadelphia, is being sold to Fulton Bank APRepublic Bank had astir $6 cardinal successful full assets and $4 cardinal successful full deposits, arsenic of Jan. 31, 2024. The FDIC estimates that nan costs to nan Deposit Insurance Fund related to nan nonaccomplishment of Republic Bank will beryllium $667 million.
The bank’s 32 branches successful New Jersey, Pennsylvania and New York will reopen arsenic branches of Fulton Bank connected Saturday aliases connected Monday during business hours.
The determination marks nan latest location slope nonaccomplishment pursuing nan unexpected collapses of 3 lenders – Silicon Valley and Signature successful March 2023 and First Republic successful May.
Republic Bank had struck a woody pinch an investor group that included seasoned businessman George Norcross, high-profile lawyer Philip Norcross precocious past year, but that was terminated successful February.
After that woody collapsed, nan FDIC resumed efforts to prehend and waste nan bank, according to nan Wall Street Journal, which first reported nan news.
Republic Bank trim jobs and exited its owe origination business successful early 2023 arsenic it reeled nether unit from higher costs and inability to amended profitability
The FDIC estimates that nan costs to nan Deposit Insurance Fund related to nan nonaccomplishment of Republic Bank will beryllium $667 million. REUTERSThe bank’s banal value has tumbled from conscionable complete $2 astatine nan commencement of nan twelvemonth to astir 1 cent connected Friday, leaving it pinch a marketplace capitalization beneath $2 million.
Its shares were delisted from nan Nasdaq successful August and now waste and acquisition complete nan counter.
Copyright © PAPAREAD.COM 2024
