Republic First becomes the first FDIC-insured bank failure of 2024 (2024)

FAQs

Is Republic First Bank closing the first FDIC insured bank to fail in 2024? ›

On Friday, April 26, 2024, Republic First Bank dba Republic Bank (“Republic Bank”), Philadelphia, Pennsylvania, was closed by the Pennsylvania Department of Banking and Securities. The Federal Deposit Insurance Corporation (FDIC) was then appointed Receiver.

The news: Last Friday, Pennsylvania financial regulators seized and shut down Philadelphia-based Republic First Bank in the first FDIC-insured bank failure of 2024.

First Republic is now part of JPMorgan Chase.

On May 1, 2023, JPMorgan Chase acquired the substantial majority of assets and assumed the deposits and certain other liabilities of First Republic from the Federal Deposit Insurance Corporation (FDIC).

Depositors can name as many beneficiaries as they wish, however the coverage limit will not exceed $1,250,000 as of April 1, 2024. This coverage change applies to both existing and new trust accounts, for all deposit products, including CDs regardless of purchase or maturity date.

Republic was seized by state regulators Friday after a deal for $35 million in funding reportedly fell apart earlier this year. The seizure and sale comes a little over a year after a series of bank failures rocked the industry in 2023.

Is My Money Safe at First Republic Bank? According to the FDIC, all 84 branches of First Republic Bank now operate under the JPMorgan brand. All deposits were transferred to JPMorgan, and no depositors lost any money as a result of the closure.

Why did Republic First Bank fail? The lender is the first FDIC-insured institution to fail in the U.S. in 2024. The last bank failure — Citizens Bank, based in Sac City, Iowa — was in November 2023.

Washington Mutual's failure in 2008, during the financial crisis, is the largest in the country's history. It stemmed from the bank's risky mortgage lending practices. Even more recently were the failures of Silicon Valley Bank and Signature Bank in 2023.

Congress opted not to renew the bank's charter when it expired in 1811. Five years later, after the War of 1812, President James Madison signed a bill establishing the Second Bank of the United States.

Effective May 25, 2024, your First Republic commercial deposit account(s) will transition to JPMorgan Chase. After May 24, First Republic online and mobile banking will be “view only.” Your online banking activity will need to be conducted on JPMorgan Chase's digital platforms starting May 28.

Can I withdraw my money from First Republic Bank? ›

You may only make up to six withdrawals and/or transfers each monthly statement cycle by check (for accounts with check privileges), preauthorized or automatic transfer (e.g., transfers under an agreement to cover overdrafts on a linked checking account, or automatic payments to an insurance company), draft, point-of- ...

Are First Republic Bank CDs FDIC-Insured? Yes, First Republic Banks are FDIC-insured.

Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.

An account that contains more than $250,000 at one bank, or multiple accounts with the same owner or owners, is insured only up to $250,000. The protection does not come from taxes or congressional funding. Instead, banks pay into the insurance system, and the insurance provides their customers with protection.

First Republic is now part of JPMorgan Chase.

Visit chase.com/branch to view branch locations near you.

Are First Republic Bank CDs FDIC-Insured? Yes, First Republic Banks are FDIC-insured.

Regulators have closed Republic First Bank, a regional lender operating in Pennsylvania, New Jersey and New York. The Federal Deposit Insurance Corp. said Friday it had seized the Philadelphia-based bank, which did business as Republic Bank and had roughly $6 billion in assets and $4 billion in deposits as of Jan. 31.

In July 2010, Bank of America, which acquired Merrill Lynch and thereby acquired First Republic, sold First Republic Bank to a group of private investors including Colony Capital, General Atlantic, and chairman James Herbert and former COO Katherine August DeWilde, for approximately $1 billion. Thomas J.