Regulators have seized First Republic Bank and sold all its deposits and most of its assets to JPMorgan Chase.
First Republic, a bank with headquarters in San Francisco, was placed into receivership on Monday, making it the third regional US bank to fail in recent weeks after Silicon Valley Bank and Signature Bank.
All of First Republic’s deposits, which as of April 13 totaled $103.9 billion, were the subject of a bid from JPMorgan. About $92 billion in actual deposits, both insured and uninsured, are being assumed. JPMorgan will also acquire a sizable portion of First Republic Bank’s assets, including $30 billion in securities and about $173 billion in loans.
The FDIC estimates a $13 billion hit to its deposit insurance fund.
In response to our government’s invitation, JPMorgan Chase CEO Jamie Dimon says, “We stepped up.” Our ability to execute the transaction with the least amount of expense to the Deposit Insurance Fund was made possible by our financial stability, skill set, and business strategy.
As First Republic struggled in the weeks following the SVB collapse and customers withdrew $100 billion in deposits, its stock price lost more than 90% of its value.
The 84 First Republic locations spread across eight states will reopen as JPMorgan Chase locations.