Pennsylvania regulators close Republic First Bank, FDIC confirms

The Federal Deposit Insurance Corporation (FDIC) announced on Friday that Republic First Bank, based in Philadelphia, has been closed by Pennsylvania state regulators, marking the first US bank failure of the year. The FDIC stated that the Pennsylvania Department of Banking and Securities appointed them as the receiver for Republic First Bank, and to protect depositors, an agreement was made with Fulton Bank, National Association to assume deposits and assets.

With approximately $6 billion in total assets and $4 billion in total deposits as of January, Republic First Bank is significantly smaller than the regional bank failures that occurred last year. The FDIC highlighted that the bank’s 32 branches in New Jersey, Pennsylvania, and New York will reopen under Fulton Bank’s name.

This closure comes amidst a challenging time for regional banks, as elevated interest rates have impacted the credit-dependent industry. The collapse of Silicon Valley Bank last year triggered a series of bank failures, including Signature Bank and First Republic Bank. In 2023, a total of five banks failed, according to the FDIC.

The FDIC clarified that Republic First Bank is distinct from First Republic Bank, a San Francisco-based commercial bank that closed in May 2023. The majority of First Republic Bank’s assets were acquired by JPMorgan Chase. The FDIC’s deposit insurance covers up to $250,000 per depositor, ensuring protection for those affected by the closure of Republic First Bank.