MW Regulators preparing to seize and sell Republic First Bank: report
By Bill Peters
Several banks have considered bids for the troubled regional bank, according to the Wall Street Journal.
Regulators are preparing to seize Republic First Bancorp. and sell it to another financial institution, the Wall Street Journal reported Friday, as cracks continue to emerge in the regional-banking industry.
An announcement on the matter could come as soon as Friday, the Journal reported. The publication said it was not yet clear which other lender would buy the company, which is based in Philadelphia and runs Republic Bank branches in the Northeast, adding that any deal could still fall through.
Republic First Bancorp. $(FRBK)$ did not immediately respond to a request for comment.
The bank, which the Journal said has struggled with rising interest rates that have led to losses on bonds, managed to avoid an auction by the Federal Deposit Insurance Corp. last year after arranging a $35 million capital infusion from an investor. But that deal collapsed earlier this year, and Bloomberg reported on Wednesday that the FDIC was in discussions with possible buyers for the bank.
Several banks have considered bids for Republic First, the Journal said Friday, citing people familiar with the matter. Those sources said the most interested potential buyers are expected to be midsize banks that operate in similar territory to Republic First.
The move by regulators would follow last year's series of failures by much larger regional banks, including Silicon Valley Bank and Signature Bank. The struggling First Republic Bank was acquired by JPMorgan Chase & Co. $(JPM)$ last year.
This year has New York Community Bancorp. $(NYCB)$ encounter similar problems, with the lender struggling with its exposure to the ailing commercial real-estate market and maneuvering to stay afloat following a steep stock selloff.
-Bill Peters
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April 26, 2024 19:20 ET (23:20 GMT)
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