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BumRushDaShow

(129,753 posts) Sat Apr 27, 2024, 07:10 AM Apr 27

Republic First Bank seized by regulators, sold to Fulton Bank

Source: Axios

11 hours ago

Republic First, a small Pennsylvania lender doing business as Republic Bank, was seized Friday by regulators who sold most of its assets and liabilities to rival Fulton Bank.

Why it matters: The Fed's rate hikes have slashed the value of many banks' assets. When those banks are losing money, as Republic was, they're likely to fail.

The big picture: Republic was much smaller than banks that failed last year, like Silicon Valley Bank, First Republic, and Signature Bank. It had only about $6 billion in assets across 32 branches in Pennsylvania, New York and New Jersey.

Its equity value — the value of its assets minus the value of its liabilities — was $96 million at the end of 2023, but that number didn't take into account $262 million in mark-to-market losses on its bond portfolio.
An attempted $35 million rescue fell apart in March.
The FDIC said its insurance fund is set to take a loss of $667 million on the deal.

4 replies

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Republic First Bank seized by regulators, sold to Fulton Bank (Original Post) BumRushDaShow Apr 27 OP

Rate hikes been going on for 3 years. This is plain old mismanagement. sybylla Apr 27 #1

Remember when 45's administration changed Dodd-Frank's "stress test" threshold BumRushDaShow Apr 27 #2

Yep. Safety protocols put in place after the Depression were there for a reason. sybylla Apr 27 #3

That's the bank Jackson Hewitt was using BWdem4life Apr 27 #4

sybylla

(8,528 posts)

1. Rate hikes been going on for 3 years. This is plain old mismanagement.

Reply to BumRushDaShow (Original post)

Sat Apr 27, 2024, 12:39 PM

Apr 27

JFC.

BumRushDaShow

(129,753 posts)

2. Remember when 45's administration changed Dodd-Frank's "stress test" threshold

Reply to sybylla (Reply #1)

Sat Apr 27, 2024, 12:53 PM

Apr 27

from banks having assets of $10 billion or more to those having $250 billion or more? Although this bank was just below the original threshold (at $6 billion), there's a concern that some of the bigger regional banks may start to fold (particularly any that dabbled in crypto, which although is on a positive rampage, may rampage the other way at any time).

sybylla

(8,528 posts)

3. Yep. Safety protocols put in place after the Depression were there for a reason.

Reply to BumRushDaShow (Reply #2)

Sat Apr 27, 2024, 02:07 PM

Apr 27

As soon as everyone starts to suspect that their financial institution is potentially unsafe, they are going to start burying money in the back yard again. And there will be a run.

BWdem4life

(1,708 posts)

4. That's the bank Jackson Hewitt was using

Reply to BumRushDaShow (Original post)

Sat Apr 27, 2024, 04:00 PM

Apr 27

for its Refund Advance and Assisted Refund (JH fees paid out of the refund, an additional $54.95 "bank fee" mostly paid by low income clients).

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