US regulators seize troubled lender Republic First, sell it to Fulton Bank

Posted: Apr 27, 2024

- US regulators seized troubled lender Republic First Bancorp and sold it to Fulton Bank - Fulton Bank, a unit of Fulton Financial Corp, assumed deposits and purchased assets to protect depositors - Republic Bank had $6 billion in total assets and $4 billion in total deposits, with a cost of failure estimated at $667 million - The deal almost doubled Fulton's presence in the Philadelphia market - Republic Bank's 32 branches will reopen as branches of Fulton Bank - This marks the latest US regional bank failure following unexpected collapses of three other lenders - Republic Bank cut jobs and exited its mortgage origination business in early 2023 - The bank's stock price dropped from over $2 to about 1 cent, with shares delisted from the Nasdaq - Piper Sandler & Co and BofA Securities advised Fulton, while Sullivan & Cromwell LLP provided legal advice.



Summarized top reddit comments: - Markets are expected to react positively to the bank seizure - Speculation about who bought puts on the troubled lender - Comment on the sequential change in bank names - Information shared about the process of regulators seizing a bank - Personal anecdote about using services at Republic First - Suggestion that the bank could have charged for certain services to generate more revenue - Yawn at the amount of deposits involved in the seizure - Observation of the timing of the seizure after earnings were posted - Comparison of the troubled bank to a creepy kid in school - Surprise at how long the troubled bank managed to stay afloat - Expression of how one entity's loss can be another entity's gain



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