April 29 (Reuters) – Fulton Financial’s (FULT.O), opens new tab shares pared gains on Monday after it launched a common stock offering to support its acquisition of the deposits and assets of Republic First from regulators, which marked the first U.S. bank failure of 2024.
Regional banks have been struggling to retain deposits as customers seek the safety of larger ‘too-big-to-fail’ rivals, while higher interest rates have also diminished the value of their loan books due to increased unrealized losses.
Republic Bank’s troubles included low liquidity, not filing annual reports detailing year-end financials with the U.S. SEC and being targeted by multiple activist investors since 2021.
The beleaguered lender, which had about $6 billion and $4 billion in total assets and deposits, respectively, was closed on Friday by the Pennsylvania Department of Banking and Securities. The Federal Deposit Insurance Corporation was appointed its receiver.
Source: REUTER
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