JPMorgan acquired a "substantial amount" of First Republic Bank's assets and deposits.
The Federal Deposit Insurance Corporation (FDIC) took control of the troubled bank and oversaw its sale through a bidding process over the weekend. Per TechCrunch, First Republic's assets and deposits were worth $330B.
- Starting today, 84 branches of First Republic will be rebranded to JPMorgan Chase, with the bank assuring that all depositors will have full access to their funds.
- JPMorgan will assume $92B worth of deposits, $173B worth of loans, and $30B of securities.
- FDIC will need to bear $13B in losses at First Republic.
- Per Axios, First Republic's banking structure had similarities with SVB, with 57% of its business loan portfolio allocated to VC and PE firms last year.
- First Republic is the third U.S. bank to fail this year, after Silicon Valley Bank's and Signature Bank's collapse earlier in May.
- First Republic started to spiral last week after it announced that customers withdrew $100B worth of deposits in Q1 2023 following the downfall of SVB.
- By Friday, the bank's shares had plummeted to $3.51 per share, 97% down YTD.
- The NYSE had to halt trading of First Republic's shares multiple times last week due to the steep downfall in share prices