Fulton Financial Corporation acquires assets and deposits of Republic Bank
Fulton Financial Corporation (NASDAQ: FULT), through its subsidiary Fulton Bank, N.A., has completed a significant transaction involving the acquisition of substantially all assets and the assumption of nearly all deposits of Republic First Bank, known as Republic Bank, from the Federal Deposit Insurance Corporation (FDIC). This major deal, which has received all necessary regulatory approvals including from the Office of the Comptroller of the Currency, marks a pivotal expansion for Fulton in the regional banking sector.
The transaction includes the purchase of assets totaling approximately $6 billion, which encompasses an investment portfolio worth about $2.0 billion and loans of roughly $2.9 billion. Fulton has also assumed liabilities amounting to around $5.3 billion, including deposits of approximately $4 billion and other borrowings and liabilities of about $1.3 billion. This strategic move not only significantly advances Fulton’s growth plans but also nearly doubles its presence in the competitive Philadelphia market, enhancing the bank’s liquidity profile by reducing its loan to deposit ratio from 99% to 92%.
Fulton Chairman and CEO Curt Myers expressed enthusiasm about the acquisition, noting the opportunity to expand the bank’s service offerings. “With this transaction, we are excited to double our presence across the region,” said 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.”
Republic Bank depositors will have seamless access to their accounts with no immediate requirement to alter their banking relationships, ensuring their deposits remain federally insured. Starting as early as tomorrow, former Republic Bank financial centers will operate under the Fulton brand, maintaining regular business hours.
In line with its community engagement strategy, Fulton Bank has pledged a $5 million donation to the Fulton Forward® Foundation. This contribution aims to support additional impact grants for nonprofit community organizations across the region, particularly those focused on advancing economic empowerment in underserved communities.
This acquisition not only bolsters Fulton’s strategic market position but also signifies its commitment to enhancing its banking services and community involvement. The integration of Republic Bank’s assets and operations is expected to provide substantial benefits to both Fulton’s and Republic Bank’s customers and stakeholders, promoting greater financial stability and expanded service capacity in the Philadelphia and surrounding areas.