US regulators just announced the first bank failure of 2024.
The FDIC says it has stepped in to protect $6 billion in assets and $4 billion in customer deposits at Philadelphia-based Republic Bank.
The assets will be immediately handed over to Fulton Bank, a former rival that’s also located in Philadelphia.
“Republic Bank’s 32 branches in New Jersey, Pennsylvania and New York will reopen as branches of Fulton Bank on Saturday (for branches with normal Saturday hours) or on Monday during normal business hours.
This evening and over the weekend, depositors of Republic Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on Republic Bank will continue to be processed and loan customers should continue to make their payments as usual.”
The failure follows last year’s high profile collapse of Silicon Valley Bank, Signature Bank, and First Republic, which are among the biggest bank failures in American history.
The FDIC expects the failure of Republic Bank to cost about $667 million, which will be deducted from the FDIC’s bank-sponsored Deposit Insurance Fund (DIF).
Concern about the health of the banking industry at large has persisted this year, triggered by fears over the industry’s exposure to the troubled commercial real estate market and unrealized losses on US Treasuries.
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