Current:Home > ContactRegulators close Philadelphia-based Republic First Bank, first US bank failure this year -RiskWatch
Regulators close Philadelphia-based Republic First Bank, first US bank failure this year
View
Date:2025-04-14 10:49:40
WASHINGTON (AP) — Regulators have closed Republic First Bank, a regional lender operating in Pennsylvania, New Jersey and New York.
The Federal Deposit Insurance Corp. said Friday it had seized the Philadelphia-based bank, which did business as Republic Bank and had roughly $6 billion in assets and $4 billion in deposits as of Jan. 31.
Fulton Bank, which is based in Lancaster, Pennsylvania, agreed to assume substantially all of the failed bank’s deposits and buy essentially all of its assets, the agency said.
Republic Bank’s 32 branches will reopen as branches of Fulton Bank as early as Saturday. Republic First Bank depositors can access their funds via checks or ATMs as early as Friday night, the FDIC said.
The bank’s failure is expected to cost the deposit insurance fund $667 million.
The lender is the first FDIC-insured institution to fail in the U.S. this year. The last bank failure — Citizens Bank, based in Sac City, Iowa — was in November.
In a strong economy an average of only four or five banks close each year.
Rising interest rates and falling commercial real estate values, especially for office buildings grappling with surging vacancy rates following the pandemic, have heightened the financial risks for many regional and community banks. Outstanding loans backed by properties that have lost value make them a challenge to refinance.
Last month, an investor group including Steven Mnuchin, who served as U.S. Treasury secretary during the Trump administration, agreed to pump more than $1 billion to rescue New York Community Bancorp, which has been hammered by weakness in commercial real estate and growing pains resulting from its buyout of a distressed bank.
veryGood! (678)
Related
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Jessica Alba Shares Sweet Selfie With Husband Cash Warren on Their 15th Anniversary
- Review: 'Yellowstone' creator's 'Lioness' misses the point of a good spy thriller
- Tropical Storm Bret strengthens slightly, but no longer forecast as a hurricane
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- Taylor Swift Says She's Never Been Happier in Comments Made More Than a Month After Joe Alwyn Breakup
- Q&A: Plug-In Leader Discusses Ups and Downs of America’s E.V. Transformation
- All the Bombshell Revelations in The Secrets of Hillsong
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Weaponizing the American flag as a tool of hate
Ranking
- 'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
- Biden administration says fentanyl-xylazine cocktail is a deadly national threat
- 'You forget to eat': How Ozempic went from diabetes medicine to blockbuster diet drug
- What we know about the Indiana industrial fire that's forced residents to evacuate
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- This Week in Clean Economy: Northeast States Bucking Carbon Emissions Trend
- Here's what really happened during the abortion drug's approval 23 years ago
- On Father's Day Jim Gaffigan ponders the peculiar lives of childless men
Recommendation
Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
A robot answers questions about health. Its creators just won a $2.25 million prize
Ranking Oil Companies by Climate Risk: Exxon Is Near the Top
Vanderpump Rules' Tom Sandoval and Ariana Madix Honor Friend Ali Rafiq After His Death
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
The Taliban again bans Afghan women aid workers. Here's how the U.N. responded
4 tips for saying goodbye to someone you love
What we know about the Indiana industrial fire that's forced residents to evacuate