2 MAY, 2023
By RankiaPro Europe
JPMorgan Chase (NYSE: JPM) yesterday announced it has acquired the substantial majority of assets and assumed the deposits and certain other liabilities of First Republic Bank from the Federal Deposit Insurance Corporation (FDIC). In carrying out this transaction, JPMorgan Chase supports the U.S. financial system through its significant strength and execution capabilities. As part of the purchase, JPMorgan Chase assumes all deposits – insured and uninsured.
“Our government invited us and others to step up, and we did. Our financial strength, capabilities, and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund. This acquisition modestly benefits our company overall, it is accretive to shareholders, it helps further advance our wealth strategy, and it is complementary to our existing franchise.”Jamie Dimon, Chairman and CEO of JPMorgan Chase.
Key transaction elements following the FDIC’s competitive bidding process include:
First Republic branches will open on Monday, May 1, as normal, and clients will continue to receive uninterrupted service, including digital and mobile banking capabilities.
As a result of this transaction, JPMorgan Chase expects to:
The transaction is expected to be modestly EPS accretive and generate more than $500 million of incremental net income per year, not including the approximately $2.6 billion one-time post-tax gain or approximately $2.0 billion of post-tax restructuring costs expected over the course of 2023 and 2024.
The acquired First Republic businesses will be overseen by JPMorgan Chase’s Consumer and Community Banking (CCB) Co-CEOs, Marianne Lake and Jennifer Piepszak.
“First Republic has built a strong reputation for serving clients with integrity and exceptional service. We look forward to welcoming First Republic employees. As always, we are committed to treating employees with respect, care and transparency.”Marianne Lake and Jennifer Piepszak, JPMorgan Chase’s Consumer and Community Banking (CCB) Co-CEOs