Another Bank Collapse
U.S. regulators have seized Republic First Bancorp $Republic First Bancorp(FRBK.US$ and agreed to sell it to Fulton Bank, underscoring the challenges facing regional banks a year after the collapse of three peers.
Republic Bank had about $6 billion in total assets and $4 billion in total deposits, as of Jan. 31, 2024. The FDIC estimated the cost of the failure to its fund will be $667 million.
Republic Bank had about $6 billion in total assets and $4 billion in total deposits, as of Jan. 31, 2024. The FDIC estimated the cost of the failure to its fund will be $667 million.
Apart from deposits, Republic also had borrowings and other liabilities of approximately $1.3 billion, Fulton said in a statement.Fulton said the deal almost doubles its presence in the Philadelphia market with combined company deposits of approximately $8.6 billion.
The bank's stock price has tumbled from just over $2 at the start of the year to about 1 cent on Friday, leaving it with a market capitalization below $2 million.Its shares were delisted from the Nasdaq in August and now trade over the counter.
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ZnWC : Thanks for sharing. I wonder what impact the bank collapse will have on Fed decision to rate cut.
Mcsnacks H Tupack ZnWC: None. The banks equity is like 6 billion dollars. Chump change for the Fed to even think about considering it.
ZnWC Mcsnacks H Tupack: You need something big like a financial crisis and pandemic before they start cutting interest rate
Mcsnacks H Tupack ZnWC: That's not a good thing tho. Financial crisis creates inflation because they have to interject money into the economy thru spending.