Introduction to Problem Banks eBook

8/22/24, 12:30 PM

Sentencing of Kansas failed-bank CEO delayed

The FDIC said the agreement caused a $54.2 million hit to its Deposit Insurance Fund.

There were five failures overall last year, including three large regional banks that struggled under the weight of high interest rates and deposit runs. Those downfalls started with Silicon Valley Bank and Signature Bank in March, followed by First Republic Bank in May. Republic First Bank in April marked the lone failure so far this year. It was closed by its state regulator and taken over by the FDIC. The Philadelphia-based bank had struggled to maintain adequate capital and faced proxy challenges from investor groups.

Fulton Bank in Lancaster, Pennsylvania, assumed substantially all of Republic First's $6 billion of assets and $4 billion of deposits, according to the FDIC.

There were no bank failures in 2022 or the year before. But four banks failed in each of 2019 and 2020, according to FDIC data.

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