FDIC-Insured Republic First Bank Fails

Republic First Bank, a small Pennsylvania lender insured by the Federal Deposit Insurance Corporation (FDIC), was shut down on Friday by the FDIC and Pennsylvania's bank regulator.

Key Details: Regulators have sold most of Republic First's assets and liabilities to rival Fulton Bank. Republic First Bank was much smaller than Silicon Valley Bank, Signature Bank, or First Republic - banks that failed in 2023. It had only about $6 million in assets across 32 branches in Pennsylvania, New Jersey, and New York. None of the depositors in Republic First are expected to lose money.

Key Quote: "This bank failure indicates that additional failures will occur and will range between smaller community banks and larger banks," said Joseph Lynyak, a banking attorney at Dorsey & Whitney.

How the Media Covered It: Fox Business (Lean Right bias) highlighted an analyst who said the closure foreshadowed more bank failures in the near future. Conversely, CNBC (Center bias) focused on an analyst who said the closure "is not a sign of broader problems among regional banks."

Why the Difference? Sources on the right are generally more negative about the state of the economy under President Joe Biden than sources on the left or in the center.