JPMorgan Chase & Co acquired First Republic Bank (substantial majority of assets) for $10.6 billion paid to the FDIC; acquired about $173 billion of loans and $30 billion of securities, assumed roughly $92 billion of deposits and $28 billion of FHLB advances, a transaction completed in May 2023, structured as all cash. The deal was a Asset purchase.
First Republic Bank (substantial majority of assets) operates in Consumer & wealth banking, is based in San Francisco, California, USA. After First Republic Bank was placed into FDIC receivership during the 2023 regional-banking stress, JPMorgan Chase acquired the substantial majority of its assets and assumed certain liabilities from the FDIC. JPMorgan took on about $173 billion of loans and $30 billion of securities and assumed roughly $92 billion of deposits, paid $10.6 billion to the FDIC, and entered into loss-share arrangements with the FDIC on most acquired loans. JPMorgan did not assume First Republic's corporate debt or preferred stock.
Deploying JPMorgan's fortress balance sheet to invest through the cycle, adding an attractive wealth-oriented client franchise with FDIC loss protection.
Affluent, deposit-rich client base and loss-share protection from the FDIC Consumer & Community Banking and Asset & Wealth Management
Advisory firms were not disclosed for this transaction.