Fulton Financial Corporation has announced the acquisition of the assets and liabilities of Republic First Bank of Philadelphia. The Lancaster-based Fulton Financial and its banking subsidiary, Fulton Bank, purchased Republic's assets of nearly six billion dollars and assumed approximately five-point-three-billion dollars in liabilities. The acquisition was made after regulators took control of Republic First Bank's operations due to 'unsafe and unsound' conditions.
The acquisition includes an investment portfolio of approximately $2.0 billion and loans of approximately $2.9 billion. Fulton Bank also assumed liabilities of approximately $5.3 billion, including deposits of approximately $4 billion and other borrowings and liabilities of approximately $1.3 billion.
The move significantly advances Fulton’s growth plan in what it calls a strategically important market. Fulton said it almost doubles its presence in the Philadelphia market with combined company deposits of approximately $8.6 billion and reduces its loan to deposit ratio from 99% to 92%, improving its liquidity profile.
'With this transaction, we are excited to double our presence across the region,' said Fulton Chairman and CEO Curt Myers. 'We look forward to welcoming Republic Bank’s team members and customers to Fulton and providing our comprehensive set of consumer, commercial, and wealth advisory products and services to even more customers.'
All 32 Republic First Bank branches in Pennsylvania, New Jersey, and New York have reopened under Fulton Bank, and depositors will have full FDIC coverage. Republic Bank depositors will become Fulton depositors and do not need to change their banking relationship to retain their federally insured deposit insurance coverage.
As part of the acquisition, Fulton Bank is making a $5 million donation to the Fulton Forward Foundation to provide additional impact grants to nonprofit community organizations across the region that share Fulton’s vision of advancing economic empowerment, particularly in underserved communities.