The Zhitong Finance App learned that the US Federal Deposit Insurance Corp (Federal Deposit Insurance Corp) said on Friday that US regulators have taken over Republic First Bancorp (FRBK.US) and agreed to sell it to Fulton Bank (Fulton Bank). This incident highlights the challenges faced by regional banks one year after their three peers went out of business.
Following the collapse of Silicon Valley Bank (SIVBQ.US) and Signature Bank (SBNY.US) in March 2023, and the unexpected collapse of three banks, including First Republic Bank (FRCB.US), in May, this dynamic marks the latest challenge for regional banks in the US.
The bank abandoned financing negotiations with a group of investors and was taken over by the Pennsylvania Department of Banking and Securities (Pennsylvania Department of Banking and Securities). The US Federal Deposit Insurance Corporation (FDIC) has been appointed as the receiver. The company said that Fulton Bank, a subsidiary of Fulton Financial (FULT.US), will assume all deposits and purchase all of the assets of Republic Ten Thousand Link Financial Holdings to “protect savers.”
Due to rising costs and profit pressure, Republic 10,000 Link Financial Holdings laid off employees and withdrew from the mortgage loan issuance business in early 2023.
As of January 31, 2024, the bank's total assets were about US$6 billion and total deposits were about US$4 billion. The FDIC estimates that the bankruptcy would cost its fund $667 million.
The bank's 32 branches in New Jersey, Pennsylvania, and New York will reopen as Fulton Bank branches during business hours on Saturday or Monday.
At the end of last year, the bank reached a deal with a group of investors, including veteran businessman George Norcross and well-known lawyer Philip Norcross, but the deal ended in February of this year. Foreign media said that after the deal failed, the FDIC continued to focus on taking over and selling the bank.
The bank's stock price fell from slightly above $2 at the beginning of the year to around 1 cent last Friday, with a market capitalization of less than $2 million. Its shares were delisted from NASDAQ in August and are currently traded on the OTC market.