First Republic Bank Sold to JPMorgan Chase

By
Taylor Tompkins
Taylor Tompkins
Full Bio

Taylor Tompkins has worked for more than a decade as a journalist covering business, finance, and the economy. She has logged thousands of hours interviewing experts, analyzing data, and writing articles to help readers understand economic forces. She is the Economics Editor for news at Investopedia.

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Published May 01, 2023
A person walks past a First Republic bank branch in Manhattan on April 24, 2023 in New York City.

Spencer Platt/Getty Images

More than a month after the first signs of danger, First Republic Bank (FRC) was seized by Federal Deposit Insurance Corporation (FDIC) and sold to JPMorgan Chase.

Key Takeaways

  • First Republic Bank was seized over the weekend and sold to JPMorgan Chase.
  • Depositors will have full access to all of their deposits, as all 84 branches in eight states will reopen as branches of JPMorgan Chase.
  • The San Francisco-based firm has been wobbling since Silicon Valley Bank's collapse and had already received billions in deposits from other institutions in hopes of stabilization.

Government officials stepped in early Monday after efforts from the bank's executives failed to reach a deal. The FDIC then sold all of the bank's deposits and most of its assets. According to regulators, First Republic Bank's 84 branches in eight states will reopen as branches of JPMorgan Chase. Depositors will have full access to all of their deposits on Monday, May 1, 2023.

The San Francisco-based bank has been at the center of the regional banking crisis since the collapse of Silicon Valley Bank in early March. The company was the focus of a rescue deal, with 11 of the largest U.S. banks depositing a total of $30 billion in the firm. Deposits fell more than 40% in the first quarter, even with the money from other institutions.

Other banks had been reluctant to make a deal because their rescue deposits were uninsured. The FDIC's involvement likely made them be more willing to engage in talks.

It had already been a tumultuous week for the firm's share price, which was down more than 75% as at Friday's close. Trading had been paused multiple times throughout the day, as had been done for a few days throughout the week. First Republic shares have lost about 98% of their value since the start of the year.

First Republic YTD chart

YCharts

In the last month, short selling First Republic stock increased by 19.2%, with 9.26 million shares worth $53 million shorted, according to research from S3 Partners. Those wanting to bet against the firm were struggling to find stocks to short, Bloomberg reported.

Article Sources
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  1. FDIC. "JPMorgan Chase Bank, National Association, Columbus, Ohio Assumes All the Deposits of First Republic Bank, San Francisco, California."

  2. First Republic Bank. "First Republic Reports First Quarter 2023 Results."

  3. Bloomberg. "First Republic Short Sellers Are Struggling to Find Stock to Bet Against."

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