US regulators have announced the first bank failure of 2024, with the FDIC stepping in to protect $6 billion in assets and $4 billion in customer deposits at Republic Bank in Philadelphia. To ensure the continuation of banking services, the assets will be immediately transferred to Fulton Bank, a former rival also based in Philadelphia. The 32 branches of Republic Bank in New Jersey, Pennsylvania, and New York will reopen under the name of Fulton Bank on either Saturday or Monday, depending on their normal operating hours. During this transition period, depositors can still access their funds through checks, ATMs, and debit cards. Checks drawn on Republic Bank will still be processed, and loan customers should continue making their payments as usual.

This bank failure comes after the high-profile collapses of Silicon Valley Bank, Signature Bank, and First Republic last year, all of which were significant events in American banking history. The FDIC estimates that the failure of Republic Bank will cost approximately $667 million, which will be deducted from the FDIC’s Deposit Insurance Fund (DIF).

Concerns about the overall health of the banking industry have persisted this year due to worries about its exposure to the troubled commercial real estate market and unrealized losses on US Treasuries. Despite these challenges, regulators are taking steps to protect customers and ensure the stability of the banking system.