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Regulators close Philadelphia-based Republic First Bank, first US bank failure this year
WASHINGTON (AP) — 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.
The First National Bank of Lindsay was closed Oct. 18, the Federal Deposit Insurance Corp. was named receiver, and the bank’s insured deposits were transferred to First Bank & Trust Co. in Duncan.
The Office of the Comptroller of the Currency closed the bank after uncovering “false and deceptive bank records suggesting fraud,” which the OCC stated led to depletion of the bank’s capital. The OCC found that the bank was in an unsafe or unsound condition to conduct business, and the bank’s assets were less than its obligations to its creditors and others.
The Comptroller’s office referred the matter to the U.S. Department of Justice for investigation.
