{"id":2234227,"date":"2024-05-01T03:11:01","date_gmt":"2024-05-01T07:11:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fdic-insured-bank-seized-by-regulators-is-first-us-bank-failure-of-2024\/"},"modified":"2024-05-01T03:17:19","modified_gmt":"2024-05-01T07:17:19","slug":"fdic-insured-bank-seized-by-regulators-is-first-us-bank-failure-of-2024","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fdic-insured-bank-seized-by-regulators-is-first-us-bank-failure-of-2024\/","title":{"rendered":"Regulators seize first US bank of 2024, FDIC-insured"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffdic-insured-bank-seized-by-regulators-is-first-us-bank-failure-of-2024%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2234227&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Republic First Bank, based in Philadelphia, became the first bank to \u2062fail \u200cin 2024 last week. Facing financial woes attributed to decreasing deposits and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elizabeth-warren-urges-federal-reserve-to-break-up-wells-fargo\/\" title=\"Elizabeth Warren Urges Federal Reserve to Break up Wells Fargo\">mortgage lending<\/a> \u200cissues,\u200c the bank&#8217;s search for funds was unsuccessful. \u2063Regulators stepped\u200d in due to safety\u2064 concerns for\u200d depositors, \u200dwith FDIC naming a receiver. This\u200b closure follows \u200cothers in 2023, involving \u200clarger institutions. Republic First Bank, \u200dheadquartered in Philadelphia,\u2064 was \u200cthe initial\u200d bank to collapse\u2062 in 2024. Declining deposits and mortgage\u2064 lending challenges contributed to its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/university-in-england-criticized-for-spending-money-on-greta-thunberg-statue\/\" title=\"University In England Criticized For Spending Money On Greta Thunberg Statue\">financial struggles<\/a>, leading to unsuccessful funding efforts. Regulators intervened to protect depositors, and the FDIC \u2064appointed \u2063a receiver. This closure\u200c mirrors similar events in\u2063 2023, affecting more substantial financial institutions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>The first bank failure of 2024 happened last week when Republic First Bank, a financial institution based out of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/philadelphia\/\" target=\"_blank\" rel=\"noopener\" title>Philadelphia<\/a>, was seized and closed by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cruz-calls-for-scrutiny-of-platforms-that-halted-gamestop-trading\/\" title=\"Cruz Calls For Scrutiny of Platforms That Halted GameStop Trading\">federal regulators<\/a>. <\/p>\n<p>The bank <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/tylerroush\/2024\/04\/27\/heres-what-led-to-republic-firsts-collapse-and-why-its-different-from-2023-failures\/?sh=3bdce3c95878\" rel=\"noreferrer noopener\">reportedly<\/a> faced mounting financial difficulties due to a decrease in the number of deposits it received and its mortgage lending. The bank was seeking funds to continue its operation, but a deal that would have provided it with $35 million fell through earlier this year, according to multiple reports.<\/p>\n<p>The bank was considered high risk due to its inability to secure funding. The Pennsylvania Department of Banking and Securities cited <a target=\"_blank\" href=\"https:\/\/www.media.pa.gov\/Pages\/banking_details.aspx?newsid=394\" rel=\"noreferrer noopener\">\u201cunsafe and unsound conditions to protect depositors\u201d<\/a> in its decision to shutter the bank. The DoBS immediately named the Federal Deposit Insurance Corporation \u201cas receiver of the bank.\u201d <\/p>\n<p>The FDIC also issued a press release on the bank\u2019s failure. <\/p>\n<p>\u201cPhiladelphia-based Republic First Bank (doing business as Republic Bank) was closed today by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank,\u201d the FDIC <a target=\"_blank\" href=\"https:\/\/www.fdic.gov\/news\/press-releases\/fulton-bank-na-lancaster-pennsylvania-assumes-substantially-all-deposits\" rel=\"noreferrer noopener\">announced in a press release<\/a>.<\/p>\n<p>Multiple outlets reported that Republic First was the fourth bank to be seized by regulators since 2023. Silicon Valley Bank, Signature Bank, and First Republic Bank all folded last year. According to the FDIC, all of those banks were considerably larger institutions than Republic First. As of January, Republic First only had about $6 billion in assets and approximately $4 billion in deposits. Comparatively, Silicon Valley had total assets <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/tylerroush\/2024\/04\/27\/heres-what-led-to-republic-firsts-collapse-and-why-its-different-from-2023-failures\/?sh=3f6549235878\" rel=\"noreferrer noopener\">valued at $209 billion<\/a>.  <\/p>\n<p>Analysts were ambivalent as to what this meant for the banking industry.<\/p>\n<p>Feddie Strickland, an\u00a0analyst from Janney Montgomery Scott, didn\u2019t appear overly concerned about Republic First\u2019s closure in comments to the <em>New York Times.<\/em><\/p>\n<p>\u201cI think small banks are in good shape,\u201d <a target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2024\/04\/26\/business\/republic-first-bank-failure.html#:~:text=The%20failure%20comes%20amid%20continuing,valuable%20as%20interest%20rates%20increased\" rel=\"noreferrer noopener\">Strickland said<\/a>. \u201cSome of the failures we saw last year were really banks with a certain specialization. I think there\u2019s an importance of being diversified.\u201d<\/p>\n<p>Conversely, Joseph Lynak, a banking attorney from Dorsey &#038; Whitney, told <em>Fox News <\/em>that it was an ominous sign for the future.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>\u201cThis bank failure indicates that additional failures will occur and will range between <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/svb-collapse-yellen-says-us-could-backstop-small-banks-if-problems-grow\/\" title=\"SVB collapse: Yellen says US could backstop small banks if problems grow\">smaller community banks<\/a> and larger banks,\u201d <a target=\"_blank\" href=\"https:\/\/www.foxbusiness.com\/markets\/republic-first-seizure-signals-more-bank-failures-to-come-expert-says\" rel=\"noreferrer noopener\">Lynyak said<\/a>. \u201cThe cause is twofold: higher-cost deposits exceeding the yield on low-yield treasury securities and similar investments held by banks, and the deteriorating commercial real estate market and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/big-u-s-banks-see-loan-growth-slowing-as-outlook-for-demand-economy-darkens\/\" title=\"Big U.S. banks see loan growth slowing as outlook for demand, economy darkens\">commercial real estate loans<\/a>.\u201d<\/p>\n<p>The FDIC reportedly <a target=\"_blank\" href=\"https:\/\/www.fdic.gov\/news\/press-releases\/fulton-bank-na-lancaster-pennsylvania-assumes-substantially-all-deposits\" rel=\"noreferrer noopener\">facilitated an arrangement <\/a>with Fulton Bank to \u201cassume substantially all of the deposits and purchase substantially all of the assets of Republic Bank.\u201d<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week marked the first bank failure of 2024 as Republic First Bank, based in Philadelphia, was seized and closed by federal regulators. The financial institution faced financial challenges from declining deposits and mortgage lending issues. Seeking funds to sustain operations, the bank succumbed to the pressure, highlighting the fragility of the banking sector<\/p>\n","protected":false},"author":2677,"featured_media":2234228,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/04\/AP23121652548616-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2234227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/04\/AP23121652548616-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2234227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2677"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2234227"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2234227\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2234228"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2234227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2234227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2234227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}