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LOS ANGELES (CNS) - The California Department of Financial Protection and Innovation closed First Republic Bank Monday and appointed the Federal Deposit Insurance Corporation as receiver. The FDIC is entering into an agreement with JPMorgan Chase Bank to purchase all the deposits and assets of First Republic Bank.
First Republic Bank operated 10 branches in Los Angeles and has 84 offices in eight states. They will all open Monday as branches of JPMorgan Chase Bank. All deposits of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to their deposits, according to a news release from the FDIC.
The FDIC will insure deposits and assures customers do not need to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.
First Republic Bank had approximately $229.1 billion in total assets and $103.9 billion in total deposits as of April 13, 2023, according to the FDIC.
First Republic Bank was based in San Francisco. It is the third and biggest U.S. bank to fail this year, following the collapse of Silicon Valley Bank in March and Signature Bank. First Citizens Bank eventually acquired Silicon Valley Bank and a subsidiary of New York Community Bank bought most of Signature Bank after they were taken into receivership by the FDIC.
First Republic Bank had 7,213 employees as of 2022 and served customers in Connecticut, Florida, Massachusetts, New York, Oregon, Wyoming in addition to California.
On Friday, shares of First Republic Bank stock closed at $3.51, down more than 97% to date. Trading of the bank's shares was halted on the New York Stock Exchange several dozen times last week because of its value was so volatile. The bank announced on April 24 it lost $100 billion worth of deposits during the first three months of the year.