- JPMorgan Chase (JPM) has acquired all of lender First Republic’s deposits and a “substantial majority of assets”
- JPMorgan acquired the substantial majority of First Republic Bank’s assets, including $173 billion of loans and approximately $30 billion of securities
- JPMorgan assumes $92 billion of deposits, including $30 billion of large bank deposits, which will be repaid post-close or eliminated in consolidation
- JPMorgan Chase (JPM) opened trading at US$136.56 per share
JPMorgan Chase (JPM) has acquired all of lender First Republic’s deposits and a “substantial majority of assets,”.
Highlights following the Federal Deposit Insurance Corporation’s competitive bidding process include:
- Acquisition of the substantial majority of First Republic Bank’s assets, including $173 billion of loans and approximately $30 billion of securities
- Assumption of $92 billion of deposits, including $30 billion of large bank deposits, which will be repaid post-close or eliminated in consolidation
- FDIC will provide loss share agreements covering acquired single-family residential mortgage loans and commercial loans, as well as $50 billion of five-year, fixed-rate term financing
- JPMorgan Chase is not assuming First Republic’s corporate debt or preferred stock
JPMorgan’s Chairman and CEO, Jamie Dimon stated that his team executed the transaction in a way to minimize costs.
“This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy, and it is complementary to our existing franchise.”
The acquired First Republic businesses will remain open and be overseen by JPMorgan Chase’s Consumer and Community Banking Co-CEOs, Marianne Lake and Jennifer Piepszak.
Last week, First Republic reported that deposits fell more than 40 per cent in Q1 2023, which triggered further declines in the sinking stock. Shares have plummeted 97 per cent since the year began.
JPMorgan Chase is one of the largest financial institutions in the United States, with nearly $4 trillion in assets. It is organized into four major segments–consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management.
JPMorgan Chase (JPM) opened trading at US$136.56 per share.
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