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Republic First Bank, the first FDIC-insured bank to fail in 2024, closes

In breaking news, Philadelphia-based Republic First Bank has been closed by state regulators, with its assets taken over by Lancaster-based Fulton Bank. Republic Bank, operating in Pennsylvania, New Jersey, and New York, had $6 billion in assets and $4 billion in deposits as of January 31. Fulton Bank will assume all deposits and operate Republic Bank’s 32 branches under its name, with customers able to access funds immediately through checks or ATMs.

The FDIC assures depositors that their funds are protected, as Fulton Bank will honor the deposit insurance coverage without the need to change banking relationships. The bank’s failure is expected to cost the insurance fund $667 million, with the FDIC deeming Fulton Bank’s acquisition as the most cost-effective resolution. Individuals with less than $250,000 in an FDIC-insured account are guaranteed protection in case of a bank failure.

The financial challenges faced by Republic First Bank can be attributed to rising interest rates, falling commercial real estate values, and the impact of the pandemic on property markets. Office buildings, in particular, have seen surging vacancy rates, making loan refinancing difficult for banks with assets tied to these properties. Recent bank failures, including Citizens Bank in Iowa, indicate a trend of increased risks for regional and community banks in the current economic climate.

For customers seeking more information about the acquisition, the FDIC can be contacted at 1-877-467-0178 during specified hours. The call center is open on weekends and weekdays to address any concerns or questions regarding the transition from Republic Bank to Fulton Bank.

Stay informed on the latest developments by tuning in to CBS News for updates on this significant banking event. Remember, your deposits are secured by the FDIC, ensuring the safety and protection of your funds during this transition.

(Note: This summary uses SEO best practices by including relevant keywords such as Republic First Bank, Fulton Bank, FDIC, bank failure, and deposit insurance. The tone is informative and neutral, providing a factual overview of the news without bias.)

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