On Friday, regulators announced the takeover of Republic First Bank in Pennsylvania by the Federal Deposit Insurance Corporation (FDIC). As a result, Fulton Financial (FULT) has agreed to acquire most of the bank’s deposits and assets.
At the time of January 21st, Republic Bank had approximately $6 billion in total assets and $4 billion in total deposits. The bank had 32 branches across New Jersey, Pennsylvania, and New York. These branches will now reopen as branches of Fulton Bank. The FDIC estimates that the deposit insurance cost associated with Republic Bank’s failure will be around $667 million.
Following this news, Fulton stock surged by 10% to $17.20 on Friday. FULT stock currently has a buy point of $17.09 from a consolidation period that began in late 2022. For more information about stock market updates and analysis, you can follow Ed Carson on Twitter at @edcarson1971 and @IBD\_ECarson.
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In conclusion, while this news may have brought some uncertainty to depositors and investors alike, it is important to remember that these events are not uncommon and typically do not signal long-term problems for the industry as a whole. It is always recommended to stay informed about industry developments and stay diversified with your investments to minimize risk.
