US regulators have announced the closure of Republic Bank, the first bank failure of 2024. The FDIC (Federal Deposit Insurance Corporation) has stepped in to protect $6 billion in assets and $4 billion in customer deposits.
Assets Transferred to Fulton Bank
Fulton Bank, a former rival of Republic Bank, will take over the bank’s assets immediately. Republic Bank’s 32 branches in New Jersey, Pennsylvania, and New York will reopen as Fulton Bank branches on Saturday or Monday during normal business hours.
Access to Funds
Customers can access their funds through checks, ATM withdrawals, or debit card use. Checks drawn on Republic Bank will continue to be processed, and loan payments should be made as usual.
FDIC Costs
The FDIC expects the failure of Republic Bank to cost around $667 million, which will be deducted from its Deposit Insurance Fund.
Concerns about Banking Industry
The failure of Republic Bank raises concerns about the health of the banking industry, particularly its exposure to the commercial real estate market and unrealized losses on US Treasuries.
