The FDIC has since become the receiver and the bank’s assets have been transferred to Fulton Bank, insuring that Republic’s branches will still remain open.
The FDIC said in a press release:
Philadelphia-based Republic First Bank (doing business as Republic Bank) was closed today by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank.
Republic Bank’s 32 branches in New Jersey, Pennsylvania and New York will reopen as branches of Fulton Bank on Saturday (for branches with normal Saturday hours) or on Monday during normal business hours. This evening and over the weekend, depositors of Republic Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on Republic Bank will continue to be processed and loan customers should continue to make their payments as usual.
Depositors of Republic Bank will become depositors of Fulton Bank so customers do not need to change their banking relationship in order to retain their deposit insurance coverage. Customers of Republic Bank should continue to use their existing branches until they receive notice from Fulton Bank that it has completed systems changes that will allow its branch offices to process their accounts as well.
As of January 31, 2024, Republic Bank had approximately $6 billion in total assets and $4 billion in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) related to the failure of Republic Bank will be $667 million. The FDIC determined that compared to other alternatives, Fulton Bank’s acquisition of Republic Bank is the least costly resolution for the DIF, an insurance fund created by Congress in 1933 and managed by the FDIC to protect the deposits at the nation’s banks. Republic Bank is the first U.S. bank failure this year; the last failure was Citizens Bank, Sac City, Iowa on November 3, 2023.
Colin Robertson, a mortgage expert, explained in a statement on X why this bank most likely failed:
[…] It was apparently because of its mortgage biz, which like First Republic Bank, relied upon growing its “jumbo residential mortgage portfolio at below-market interest rates.”Per a company presentation, the previous management “Developed an active mortgage lending business, specializing in jumbo mortgage products with aggressive rates, which had higher risk and lower risk-adjusted rates of return than other asset classes.” This strategy was deployed as recently as the the first half of 2022.
Just a year later, their “new strategy” was to “Wind down and exit the mortgage origination business” entirely. The move appeared to be too little too late…
AUTHOR COMMENTARY
The WinePress has urgently warned since 2021 that a collapsing commercial real estate (CRE) market would topple the banks; and earlier this month I had primed readers to be prepared for a new wave of banks, big, medium, and small to start failing due to overexposure to CRE mortgages, and other loans and contracts going sour due to higher interests; having gorged on tons of securities, loans, treasuries, and derivatives during the near-0% interest rate cycle. It’s barely been a month since I said we’d start to see collapses, and welp, here we are…
Proverbs 22:26 Be not thou one of them that strike hands, or of them that are sureties for debts. [27] If thou hast nothing to pay, why should he take away thy bed from under thee?
At the time of this publication, there is now wavering if the Federal Reserve will begin cutting interest rates by June/July, due to the garbage inflation and jobs number that are being reported. To me, I suspect that the Fed will still start some cuts in the summer, and by then more banks will start collapsing and defaulting, which will give the Feds to perfect alibi to justify rate cuts. We shall see what transpires, however.
Again, for the umpteenth time, get your money out of these places. Keep only the amounts you need to maintain a balance, pay bills, and make some purchases, but keep most of it out if in the event your bank collapses and/or is hit with bank runs.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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I tried telling my mom that but she said I wish I could but everything we do is online, and they gotten into debt to move hear a year ago were we are now and they know the sin of mortgages but then they (not all the time but not rarely ether) stile get into more debt! and I try to say get your money out of the banks whenever I can, but I worry they’re not going to lesion, and it will be too late by the time they do……. (I’ll try my best to save up).
I hate to say it, but most people have consigned and know in their heart it’s over for them, and so now they are just living day-by-day vicariously because they ruined their lives through the deceitfulness of sin and riches.
Yeah, I wish they would stop, and they are talking about getting out of debt but what’s the point of getting out of debt if you continue to get in debt…. Oh well (it’s all I can say) -_-
So we take our money out and lock it up in a safe in our homes and then they turn digital on us and the money is useless, right? We are damned if we do and damned if we don’t these day. Let’s just get on out of here soon.