According toย the AP, Republic First Bank, which operated in Pennsylvania, New Jersey, and New York, was seized on Friday by the Federal Deposit Insurance Corporation.
The Philadelphia-based bank did business with Republic Bank and was sold to competitor Fulton Bank in Lancaster, Pennsylvania.
According to the FDIC, depositors ofBankublic Bank will become depositors of Fulton Bank, so customers do not need to change their banking relationship.
The existing bank branches will remain.
Peter St. Onge said itโs the first major bank failure of 2024. With rate hikes coming back up, we could see a lot more.
Fulton Bank has about $28 billion in assets and 20 branches. Republic Bank’s stock value on Friday was about a penny. It was delisted by NASDAQ in August.
Two years of higher rates have forced them to pay more interest on deposits, which has increasingly eaten into profits, according to the Wall Street Journal.
Required technology upgrades will be a major cost item when many regional banks have loans and commercial buildings that are in trouble.
This is Bidenomics at work with small banks struggling to survive.
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