"First Republic Bank, San Francisco, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver," the FDIC said in a statement.
The FDIC is now entering into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, to take over all of the deposits and the assets of First Republic Bank, it added.
As of April 13, First Republic Bank had about $229.1 billion in total assets and $103.9 billion in total deposits, according to the FDIC.
As part of the transaction, First Republic Bank’s 84 offices in eight states will reopen as branches of JPMorgan Chase Bank.
All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, and will have full access to all of their deposits, the statement noted.
"The FDIC and JPMorgan Chase Bank, National Association, are also entering into a loss-share transaction on single family, residential and commercial loans it purchased of the former First Republic Bank. The FDIC as receiver and JPMorgan Chase Bank, National Association, will share in the losses and potential recoveries on the loans covered by the loss–share agreement," it added.
The FDIC said it will continue to insure deposits at an estimated cost of about $13 billion to its insurance fund.