Time will tell whether the failure of PENNSYLVANIA-based REPUBLIC FIRST BANK is an isolated instance or is a harbinger of what lies ahead.
-NW

Bank Failure: MAYBE nothing to see here this time
BY DAVID HAGGITH
Citizen Watch Report
April 27, 2024

[snip]

Regulators seized their first bank of the year on the same day that regulators are telling other regulators and financial institutions to ready themselves for possible trouble in the major financial clearing houses. (At least, same day in terms of when it hit the news.)

...As for Republic First, the small regional bank that failed in the Pennsylvania area, there are no indications in initial announcements that commercial real-estate played an outsized role in the bank’s failure, and 4-5 good seizures of this kind a year are normal. So, with this being the first of the year to be seized by the FDIC, and sold as meat that ran past its sell-by date to Fulton Bank, based in Lancaster, Pennsylvania, there are no immediate fears to be had from the announcement unless something more endemic or systemic is revealed in the days ahead. Just your garden-variety bank failure for now.

The bank’s failure is expected to cost the deposit insurance fund $667 million.

A pittance. The last FDIC seizure was of Citizens Bank, based in Iowa, last November.