California's First Republic Bank Sold To JPMorgan In 2nd-Largest U.S. Bank Failure

By Chris Jennewein, Times of San Diego

May 1, 2023

Customers of First Republic Bank, including its six locations in San Diego County, awoke Monday to find themselves customers of JPMorgan Chase after federal regulators seized the San Francisco-based institution in the second-largest bank failure in U.S. history.

First Republic was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver. The FDIC, in turn, entered into an agreement to sell the bank’s assets to JPMorgan Chase.

As a result, First Republic Bank branches opened Monday morning as branches of JPMorgan Chase, with customers being assured their deposits and assets are safe.

“JPMorgan will protect all deposits, insured and uninsured, bringing our financial strength, capabilities and capital to support First Republic’s clients and the U.S. banking system,” Chase said in a statement. “JPMorgan Chase has been a leader in financial services for more than 200 years, and we look forward to continuing to serve you and be deserving of your trust and business.”

Chase noted that all banking offices will be operating as usual, and customers can continue to manage their funds through FirstRepublic.com or on the bank’s mobile app.

JPMorgan will make a payment of $10.6 billion to the FDIC as part of a deal that will see it take control of most of the assets of the bank, which has a coveted client base made up of the wealthy.

It will cost FDIC’s Deposit Insurance Fund about $13 billion, according to the regulator’s initial estimate.

First Republic is the fourth and biggest U.S. bank to fail this year, following the collapse of Silicon Valley Bank, Signature Bank and San Diego’s Silvergate Bank.

City News Service and Reuters contributed to this article.

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