Republic First BancorpNASDAQ: FRBK

The collapse of Republic First in 2024 was the first bank failure in the U.S. and has raised fears of contagion following the collapse of several regional banks last year.

Fulton Financial Corp shares surged by 8.5% on Monday after acquiring deposits and assets previously owned by regional bank Republic First. US regulators seized Republic First's $10 billion in deposits and assets on Friday, appointing the FDIC as its receiver due to a prolonged liquidity crisis.

Republic First Bancorp, a lender based in Philadelphia, was taken over by regulators and subsequently sold to Fulton Bank, a Pennsylvania financial institution. The acquisition, which includes the lender's assets, was confirmed by the Federal Deposit Insurance Corp. (FDIC) on Friday (April 26).

Pennsylvania regulators took control of Republic First Bancorp on Friday after a deal to inject new funds into the Philadelphia-based bank fell through earlier this year. The regional bank has been facing challenges with declining deposits and a struggling mortgage lending division.

The local bank, known as Republic Bank, was struggling with increased expenses and a lack of profitability, leading to layoffs and the decision to stop offering mortgage origination services in early 2023.

According to sources familiar with the situation, Republic First Bancorp is expected to be seized by U.S. regulators and a deal to sell it to another lender is close to being finalized, as reported by the Wall Street Journal on Friday.

The FDIC is reportedly discussing potential buyers for Republic First Bancorp, a Philadelphia regional bank operating as Republic Bank.

Long-established in the Banks industry, Republic First Bancorp Inc ( FRBK , Financial) has enjoyed a stellar reputation. It has recently witnessed a surge of 43.85%, juxtaposed with a three-month change of -70.59%.

Shares of Republic First Bancorp plummeted close to 50% in Tuesday premarket trading after it told investors that it will be delisted on Wednesday. In a statement, the Philadelphia-based parent of Republic First Bank, dba Republic Bank, said it was notified by the Nasdaq's Listing Qualifications Department that it will no longer be listed on the exchange because of its failure to file its 2022 Form 10-K annual report with the Securities and Exchange Commission.