JPMorgan Chase Bank Assumes First Republic Bank's Deposits and Nearly All Assets

JPMorgan Chase Bank assumed all of First Republic Bank's deposits and nearly all assets, making all depositors of First Republic Bank depositors of JPMorgan Chase Bank as of Monday, May 1, 2023.

In a Press Release, the FDIC said that the California Department of Financial Protection and Innovation closed First Republic Bank, San Francisco, California and appointed the FDIC as its receiver. According to the FDIC, the purchase and assumption agreement with JPMorgan Chase Bank followed a "highly competitive" bidding process in accordance with the least-cost requirements of the Federal Deposit Insurance Act. The resulting estimated cost to Deposit Insurance Fund is $13 billion.

The FDIC made clear that customers of the former First Republic Bank can maintain their banking relationship and that they will continue to have full access to their deposits. In addition, customer deposits will continue to be insured by the FDIC.

The FDIC and JPMorgan Chase Bank are also entering into a loss-share transaction with regard to First Republic Bank's single family, residential and commercial loans, which is projected to (i) maximize recoveries on assets by keeping them in the private sector and (ii) minimize disruptions to borrowers.