(Bloomberg) -- Fulton Financial Corp. plans to sell a $2 billion investment securities portfolio held by Republic First Bancorp Inc., the failed lender it acquired late last week after US regulators closed its doors. 

Lancaster, Pennsylvania-based Fulton also expects to get about $800 million in cash from the Federal Deposit Insurance Corp. in connection with the deal, it said in a regulatory filing Monday. About half of that is a settlement amount due to the negative asset value of Republic First’s balance sheet and the other half is an asset discount, Fulton said.

Read More: Republic First Closed by Regulators, Acquired by Fulton Bank 

Fulton will use the proceeds from the FDIC receiver and the securities portfolio sale — which it plans to complete when the deal closes — to repay borrowings and wholesale funding sources, it said.  

Shares in Fulton were up 7.8% at 12:16 p.m. in New York after rising as much as 11% earlier Monday.

Republic First became the latest smaller lender to succumb to pressures of higher interest rates on Friday, after an effort to rescue the bank with a $35 million cash injection fell apart earlier this year. The Philadelphia-based company had struggled as high interest rates translated into unrealized losses on loans and securities. 

Fulton’s subsidiary, Fulton Bank, agreed to acquire most of its deposits and assets. On Monday, Fulton said it expects to assume $5.6 billion of total liabilities, including approximately $4.2 billion of deposits, about $1.3 billion of borrowings and roughly $100 million of other liabilities.

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