As of January 31, 2024, Republic Bank had total assets of approximately $60 billion and total deposits of approximately $40 billion. The FDIC estimates that the Deposit Insurance Fund (DIF) costs associated with Republic Bank's failure will be $667 million. The FDIC has determined that Fulton Bank's acquisition of Republic Bank is the least expensive solution to the DIF, an insurance fund created by Congress in 1933 and administered by the FDIC to protect deposits at banks nationwide, compared to other alternatives.
Explaining what happened in vernacular requires reading between the lines.
Fulton agreed to buy Republic First and ensure that all depositors were fully insured, provided that the FDIC provided some cash. FDIC insurance gave Fulton $667 million so that all Republic First depositors would be fully insured. Why should insurance funds be used for all deposits when some deposits were uninsured?