Who Bought First Republic Bank in Major Acquisition

First Republic Bank was sold to JPMorgan Chase in a major acquisition. This deal marked a significant shift in the banking industry.

JPMorgan Chase acquired First Republic Bank for a whopping $10.6 billion. The acquisition was a strategic move by JPMorgan to expand its presence in the wealth management and private banking sectors.

The acquisition was completed in May 2023, bringing First Republic's assets under JPMorgan's umbrella. This move is expected to benefit both banks' customers and employees.

JPMorgan Chase acquired First Republic Bank from the FDIC, effectively wiping out First Republic's equityholders.

The acquisition is a good deal for JPMorgan, which will assume all of First Republic's deposits and take over much of its assets.

JPMorgan had to pay an additional $10.6 billion to the FDIC as part of the asset assumption, while the FDIC estimates that the cost to the insurance fund will be around $13 billion.

The depositors are being made whole, which satisfied the regulators. This deal will generate an additional $500 million in annual net income for JPMorgan.

The bank is estimating an internal rate of return of over 20%, which is a good number and above several recent deals.

JPMorgan will be able to immediately make its balance sheet profitable by reworking the funding side of things.

First Republic Bank has been sold to JPMorgan Chase for $16.9 billion. This acquisition was completed on July 1, 2023.

The deal was announced in January 2023 and was subject to regulatory approval. The acquisition was approved by the Federal Reserve and the Office of the Comptroller of the Currency.

As a result of the acquisition, First Republic Bank's operations will be integrated with JPMorgan Chase's existing operations. This means that First Republic Bank's customers will have access to JPMorgan Chase's wider range of financial services and products.

The acquisition is expected to enhance JPMorgan Chase's presence in the West Coast market, where First Republic Bank has a strong presence.