What You Need To Know About the First US Bank Failure of 2024

Fulton Financial (FULT) shares surged Monday after the bank said it acquired the debt and deposits of Philadelphia-based Republic First Bank following the first bank failure of 2024. Republic First Bank was seized by regulators Friday after a deal for $35 million in funding reportedly fell apart earlier this year.12

After a deal was reached with Fulton, the Federal Deposit Insurance Corporation (FDIC) said the Fulton deal was the least costly path for the Deposit Insurance Fund (DIF). It estimated the failure will cost the DIF about $667 million.

Republic Bank had struggled amid an elevated interest rate environment, reporting last year that rising rates in the face of the Fed's rate hikes to curb inflation hurt its commercial real estate portfolio.3

Commercial real estate, a sector that has been under stress in the wake of the COVID-19 pandemic, accounted for nearly half of Republic Bank's loan boo