- The Federal Deposit Insurance Corporation facilitated Republic First’s sale to safeguard depositors.
- Republic First’s 32 branches in New Jersey, Pennsylvania, and New York will reopen under the Fulton Bank brand.
The Federal Deposit Insurance Corp (FDIC) has facilitated the sale of Republic First Bank to Fulton Bank, according to a report by Reuters. Despite abandoning funding talks, the Philadelphia-based bank was seized by the Pennsylvania Department of Banking and Securities.
Republic First, with $6 billion in assets and $4 billion in deposits, faced mounting pressure amid rising costs and stagnant profitability. Despite efforts to strike a deal with investors, including prominent figures like George Norcross and Philip Norcross, the bank’s fortunes continued to decline. The collapse of a proposed deal in February prompted the FDIC to resume seizure and sale efforts.
See Related: JP Morgan, PNC Race To Acquire Troubled First Republic Bank
The Fallout From Republic First’s Collapse
The fallout from Republic First’s collapse reverberates through its 32 branches in New Jersey, Pennsylvania, and New York, set to reopen under the Fulton Bank banner. The bank’s stock, once trading above $2, is at a fraction of a cent. Delisted from the Nasdaq and trading over the counter, Republic First’s market capitalization has dropped below $2 million.
In March, investors were entangled in a case of mistaken identity, resulting in a significant blow to Republic First. The lender’s shares declined by over 30%, triggered by confusion with the troubled lender First Republic, the New York Post reported.
The mix-up, fueled by fears of a systemic meltdown, sent shockwaves through Wall Street and prompted Republic First’s CEO and President Thomas Geisel to issue a public plea clarifying the differences between the two institutions.
The confusion happened due to the similarities in names between Republic First Bancorp and First Republic. While Republic First operates from Pennsylvania, First Republic is headquartered in San Francisco.
