First Republic Bank Closed, FDIC Takes Control, San Francisco CA, 2024

WASHINGTON — In a major move to shore up the stability of the U.S. banking system, the Federal Deposit Insurance Corporation (FDIC) announced that JPMorgan Chase Bank, National Association, Columbus, Ohio, will assume all deposits of shuttered First Republic Bank, San Francisco, California.

The California Department of Financial Protection and Innovation closed First Republic Bank today, appointing the FDIC as receiver. This move comes in response to the escalating banking crisis that has seen several high-profile bank failures recently.

Under the agreement, JPMorgan Chase will reopen 84 First Republic Bank branches across eight states as branches of its own institution. Customers of First Republic Bank will automatically become depositors of JPMorgan Chase, with full access to their accounts and deposits, which are insured by the FDIC up to applicable limits.

As of April 13, 2023, First Republic Bank held approximately $229.1 billion in total assets and $103.9 billion in total deposits. JPMorgan Chase will also assume substantially all of First Republic Bank’s assets, including a significant loss-share transaction on single-family, residential, and commercial loans.

This transaction is expected to minimize disruptions for loan customers, as well as maximize recoveries on the assets by keeping them in the private sector. The FDIC estimates that the cost to the Deposit Insurance Fund will be about $13 billion, which is consistent with the least-cost requirements of the Federal Deposit Insurance Act.

With this takeover, JPMorgan Chase solidifies its position as a key player in the banking industry, providing much-needed stability amidst ongoing financial turmoil.