Fulton Bank acquires Philadelphia-based Republic Bank; What customers need to know

PHILADELPHIA (WPVI) -- Many local banking customers might have some questions after Philadelphia-based Republic First was closed by state regulators just before the weekend. It is the first FDIC-insured bank to fail this year.

We do have good news for customers of Republic Bank, Republic's assets have already been taken over by Lancaster-based Fulton Bank, which means account holders shouldn't experience any major disruptions.

RELATED: Regulators close Philadelphia-based Republic First Bank, first US bank failure this year

Former customers of Republic Bank are being greeted by Fulton Bank both in person and online after state regulators closed the bank on Friday, April 26.

"And the FDIC covers everything in the bank, and the bank just keeps on doing business," said Chick Savery of Havertown, Delaware County.

Over the weekend, the Federal Deposit Insurance Corporation, or FDIC, announced Republic Bank's 32 branches in Pennsylvania, New Jersey, and New York would re-open as branches of Fulton Bank as early as Saturday, April 27.

The FDIC also said Republic Bank account holders can access their money by writing checks or using ATM or debit cards. Checks drawn on Republic Bank will continue to be processed and loan customers should continue making payments as usual.

"They don't have to do anything. You just continue doing banking the way you normally would. There's no change, the only differences and now eventually your checks will say Fulton on them instead of Republic," said Savery.

The FDIC estimates Republic Bank's failure will cost the Deposit Insurance Fund about $667 million.

The FDIC says it entered into the agreement with Fulton to acquire Republic because compared to other alternatives that would be the least costly resolution.