New Jersey Citizen Action (NJCA) has responded to a report by New Jersey Attorney General Matthew Platkin and the New Jersey Division on Civil Rights concerning discriminatory practices by Republic First Bank. The report, released on October 29, details an investigation conducted by the Division on Civil Rights and the New Jersey Division of Law, which found that Republic engaged in redlining Black, Hispanic, and Asian communities in violation of state law.
This case follows a recent $15 million settlement involving OceanFirst Bank and federal authorities over similar allegations of redlining in several New Jersey counties. Previous settlements include a $13 million agreement with Lakeland Bank in 2022 and a $27 million settlement with Hudson City Savings Bank.
Leila Amirhamzeh, Director of Community Reinvestment for NJCA, stated: “Unfortunately, redlining persists to this day here in New Jersey, as evidenced by the Attorney General’s report on the discriminatory lending practices of Republic First Bank.” She commended state officials for their commitment to fair lending but emphasized that redlining remains a significant barrier to financial equity.
Republic First Bank was closed earlier this year due to regulatory concerns. Its assets were acquired by Fulton Bank. NJCA expressed disappointment over Republic's practices but showed optimism about working with Fulton Bank: “As disappointed as we are to hear about Republic’s discriminatory practices, we look forward to the opportunity to work with Fulton Bank...”
The NJCA also called for strengthening the Community Reinvestment Act (CRA), emphasizing that race and ethnicity should be included in bank performance evaluations. The organization advocates for banks entering agreements with community stakeholders to meet diverse community needs.
New Jersey Citizen Action is an advocacy group focused on advancing social justice while supporting low- and moderate-income residents through education and services.
