LANCASTER, PA — Fulton Financial Corporation (NASDAQ: FULT) announced on Friday that its subsidiary, Fulton Bank, N.A., has acquired the majority of assets and assumed most of the deposits of Republic First Bank, doing business as Republic Bank, from the Federal Deposit Insurance Corporation (FDIC). This strategic acquisition, which has received all necessary regulatory nods including from the Office of the Comptroller of the Currency, effectively closes the transaction.
Curt Myers, Chairman and CEO of Fulton, expressed enthusiasm about the acquisition, highlighting the opportunity to double the bank’s presence in the region. He also extended a warm welcome to Republic Bank’s team members and customers, pledging to offer them Fulton’s broad spectrum of consumer, commercial, and wealth advisory services.
For Republic Bank depositors, it will be business as usual with uninterrupted access to their accounts through online banking services, checks, ATMs, or debit cards. These depositors will transition to become Fulton depositors without any need to change their banking relationship, ensuring their deposits remain federally insured.
Former Republic Bank branches have begun to reopen under the Fulton banner, operating during their regular business hours.
In addition to expanding its banking services, Fulton Bank is contributing to the community by making a significant $5 million donation to the Fulton Forward® Foundation. The funds are earmarked for impact grants to nonprofit community organizations that align with Fulton’s mission of fostering economic empowerment in underserved areas.
The financial specifics of the transaction reveal that Fulton purchased assets totaling approximately $6 billion. This includes an investment portfolio worth about $2.0 billion and loans valued at roughly $2.9 billion. On the liabilities front, Fulton assumed obligations totaling about $5.3 billion, comprising around $4 billion in deposits and other borrowings and liabilities of approximately $1.3 billion.
This acquisition not only significantly bolsters Fulton Bank’s growth trajectory in a key market area but also substantially increases its presence in the Philadelphia market, with combined company deposits reaching approximately $8.6 billion. Furthermore, the transaction decreases Fulton’s loan to deposit ratio from 99% to 92%, thereby enhancing its liquidity profile—a crucial aspect for the bank’s financial health and operational flexibility.
The move represents a strategic step for Fulton Financial Corporation as it seeks to solidify its market position and extend its reach, offering a broader array of services to a more extensive customer base. By nearly doubling its presence in the Philadelphia area and improving its liquidity profile, Fulton positions itself as a more robust competitor in the regional banking sector, poised for future growth and capable of making meaningful contributions to community development.
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