“Republic First Bank Shuts Down: First FDIC-Insured Bank to Fail in 2024”

State authorities ceased Philadelphia-based Republic First Bank on Friday night, and its assets have been given over to the Federal Deposit Insurance Corp., the FDIC reported in a news release. Fulton Bank, located in Lancaster, Pennsylvania, has taken over Republic Bank’s assets, right away Fulton is also acquiring all deposits.

Republic First Bank is a regional creditor that serves in Pennsylvania, New Jersey, and New York. As of Jan. 31, the company existed by the name Republic Bank and had around $6 billion in assets and $4 billion in funds.

Republic Bank’s 32 branch offices will reopen as Fulton Bank branches beginning as early as Saturday. Customers at Republic First Bank can access the money they deposit via cheque or ATM as quickly as Friday night, according to the FDIC.

You can continue to use your Republic Bank’s ATM or debit card, and your checks. If you have taken out a loan with Republic, you ought to keep making installments as usual.

“Depositors of Republic Bank will become depositors of Fulton Bank so customers do not need to change their banking relationship in order to retain their deposit insurance coverage,” said the Federal Deposit Insurance Corporation. “Customers of Republic Bank should continue to use their existing branches until they receive notice from Fulton Bank that it has completed systems changes that will allow its branch offices to process their accounts as well.”

The FDIC said Fulton Bank acquiring Republic First Bank was the most economical approach, even though the bank’s failure will probably cost the deposit insurance fund $667 million.

Consumers who own bank accounts insured by the FDIC valued at less than $250,000 are secured, even if their bank collapses.  

Reasons For Republic First Bank’s failure?

The financial institution is the first FDIC-verified bank that collapsed in 2024 in the USA, the last bank failure took place in November 2023, involving Citizens Bank of Sac City, Iowa. 

In a strong economy, on average four or five banks liquidate every year. 

With the Increasing interest rates and decreasing commercial real estate values, notably in office buildings facing higher vacancy rates throughout the COVID-19 pandemic, have multiplied the chances of bankruptcy for many smaller and larger banks. The debts which are guaranteed by properties that have lost in value are hard to refinance.

Ways To Contact the FDIC and Fulton Bank?

Users with questions related to the purchase may call the FDIC at 1-877-467-0178. The call center operates from 9 a.m. to 6 p.m. ET on Saturday, 12 p.m. to 6 p.m. on Sunday, 8 a.m. to 8 p.m. on Monday, and 9 a.m. to 5 p.m. on the following days.

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