The first bank failure of 2024 happened last week when Republic First Bank, a financial institution based out of Philadelphia, was seized and closed by federal regulators.
The bank reportedly 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.
The bank was considered high risk due to its inability to secure funding. The Pennsylvania Department of Banking and Securities cited “unsafe and unsound conditions to protect depositors” in its decision to shutter the bank. The DoBS immediately named the Federal Deposit Insurance Corporation “as receiver of the bank.”
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The FDIC
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