Fulton Financial Corporation (NASDAQ: FULT) has announced the acquisition of substantially all of the assets and assumed substantially all of the deposits of Republic First Bank, doing business as Republic Bank, from the Federal Deposit Insurance Corporation (FDIC). The key transaction terms include the purchase of assets of approximately $6 billion, including an investment portfolio of approximately $2.0 billion and loans of approximately $2.9 billion. Additionally, Fulton Bank assumed liabilities of approximately $5.3 billion, including deposits of approximately $4 billion and other borrowings and liabilities of approximately $1.3 billion.
As a result of the transaction, Fulton Bank has significantly advanced its growth plan in a strategically important market and almost doubled its presence in the Philadelphia market with combined company deposits of approximately $8.6 billion. It has also reduced its loan to deposit ratio from 99% to 92%, thereby improving its liquidity profile.
Furthermore, Fulton Bank is making a $5 million donation to the Fulton Forward® Foundation to provide additional impact grants to nonprofit community organizations across the region that share Fulton’s vision of advancing economic empowerment, particularly in underserved communities.
The company will host a conference call and audio webcast on April 29, 2024, with Fulton Chairman and CEO Curt Myers and Interim Chief Financial Officer Betsy Chivinski. Piper Sandler & Co. and BofA Securities, Inc. acted as financial advisors to Fulton in connection with the transaction, while Sullivan & Cromwell LLP acted as the legal advisor. As a result of these announcements, the company's shares have moved 8.0% on the market, and are now trading at a price of $16.87. For the full picture, make sure to review Fulton Financial's 8-K report.
