Lauren Justice/Bloomberg
First Republic Bank
Headquarters: San Francisco
Assets: $229.1 billion
Date: May 1, 2023
First Republic Bank had struggled in the weeks after Silicon Valley Bank and Signature Bank both failed in March. The $229.1 billion-asset institution, which had long focused on serving wealthier clients, was caught flat-footed amid rising interest rates. Its customers took out mortgages at extremely low rates during the pandemic. However, these assets fell in value as interest rates rose.
Last month, to show confidence in First Republic, a group of large banks, including JPMorgan Chase, Bank of America, Wells Fargo and Citigroup, parked $30 billion of uninsured deposits at the institution. That seemed to calm depositors, if only in the short term.
Last week, First Republic reported its first-quarter earnings, which were worse than many industry observers expected. That disclosure seemed to seal its fate as its stock price plummeted, and management said it was considering a range of options.
After First Republic was put into receivership, JPMorgan Chase purchased its deposits and "substantially all" of its assets.
