DPST - Another Bank Failure What It Means
2024-04-30 05:58:15 ET
Summary
- The Pennsylvania Department of Banking and Securities closed Republic First Bank Friday after the closing bell, making the bank the first FDIC-insured institution to fail in 2024.
- The failure of Republic First Bank highlighted yet again the ongoing problems in the regional and community banking systems.
- CRE delinquency rates continue to rise and banks face large 'unrealized losses' on their bond portfolios thanks to higher interest rates.
- What that could mean for economic growth and the markets is discussed in the paragraphs below.
Quietly after the bell on Friday, the Pennsylvania Department of Banking and Securities shut down Republic First Bancorp ( FRBK ) . The bank had 32 branches in New Jersey, Pennsylvania, and New York and roughly $6 billion in assets and $4 billion in deposits. The branches when they reopen will do so under the banner of Fulton Bank ( FULT ) . The closure will cost the FDIC (AKA, the taxpayers) some $677 million....
Another Bank Failure, What It Means