Recent news of Republic Bank’s closure by federal regulators has raised questions among customers, especially those with branches in Cherry Hill.
Here’s a breakdown of what Cherry Hill customers should know about the sudden closure and its impact.
1. Customer Deposits Are Safe
The Federal Deposit Insurance Corporation (FDIC) assured customers that no money would be lost due to Republic Bank’s closure. All deposits, including those of Cherry Hill customers, have been transferred to Fulton Bank, which acquired Republic Bank’s assets.
2. Seamless Transition to Fulton Bank
Following the closure, all 32 branches of Republic Bank, including those in Cherry Hill, reopened as branches of Fulton Bank. This transition occurred swiftly, with branches resuming operations under the Fulton Bank name on the first business day after the seizure.
3. Account Information Remains Unchanged
For now, account numbers and routing numbers will remain the same for Republic Bank customers. Any auto-payments, online banking, and other digital services will continue to function using current account information. Customers will be notified by Fulton Bank, N.A. in writing if there are any changes to their account details.
4. Republic Bank’s Financial Struggles
Republic Bank’s closure was prompted by financial difficulties, including low liquidity and failure to file year-end financial reports with the U.S. Securities and Exchange Commission since 2021. Despite efforts to secure funding, including a planned $35 million investment that fell through, the bank faced insurmountable challenges.
5. Regulatory Intervention
The Pennsylvania Department of Banking and Securities intervened on Friday, shutting down Republic Bank and appointing the FDIC as its receiver. In a swift move, Fulton Bank purchased the majority of Republic Bank’s assets, ensuring a smooth transition for customers.
In summary, while the sudden closure of Republic Bank may have caused concern among customers, especially those in Cherry Hill, the acquisition by Fulton Bank has safeguarded customer deposits and ensured uninterrupted banking services.
