Fulton Financial (FULT) has agreed to acquire most of the deposits and assets of Republic First Bank in Pennsylvania, which was taken over by regulators on Friday. The Federal Deposit Insurance Corporation (FDIC) made the announcement.
Republic Bank had around $6 billion in total assets and $4 billion in total deposits as of January 21. As a result of the acquisition, 32 Republic Bank branches in New Jersey, Pennsylvania, and New York will be reopened as branches of Fulton Bank.
The FDIC expects the deposit insurance cost related to Republic Bank’s failure to be around $667 million. Following the news, Fulton stock surged 10% to $17.20 on Friday. This increase was driven by investors recognizing the potential for growth opportunities through the acquisition of Republic Bank’s deposits and assets.
FULT stock has a buy point of 17.09 from a consolidation period that started in late 2022. For stock market updates and more information, you can follow Ed Carson on Twitter at @edcarson1971 and @IBD_ECarson.
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