Shut down last month, First Republic Bank is in the process of being integrated into JPMorgan; a process that is expected to take 12 months. The purchase saw JPMorgan receive $173 billion of the failed bank’s loans, $30 billion of securities, and $92 billion of deposits.

Currently the largest lender in the U.S., JPMorgan expressed optimism regarding the purchase, particularly given the large influx of incoming deposits by investors who sought the safety of large, established banking institutions.

First Republic Bank was the third major U.S. bank to collapse since March in what has been a sector-wide crisis. In addition to applying additional pressure to mid-sized banks and sending financial stocks tumbling, this instability had added to concerns of an impending recession.

The post JPMorgan Expects Income Boost From First Republic Bank Deal appeared first on theprimarymarket.com.

Commercial bank lending declined by $15.7 billion for the week ending May 3. This comes after lending increased by $41.9 billion the previous week. On an unadjusted basis, however, loans and leases were up slightly.

Deposits also declined on a seasonally adjusted basis for the week ending May 3. Without adjustments, however, they were up by $67.3 billion.

This data comes after a Fed report revealed that nearly half of U.S. banks have tightened terms on their commercial and industrial loans for medium and large businesses in the first quarter.

Using a report known as an H.8., economists and policymakers have been monitoring loan and deposit data to gauge the overall stability of the banking sector. The divergence between adjusted and unadjusted data has made it challenging for them to draw conclusions.

The post U.S. Bank Lending Fell Marginally Following Failure of First Republic Bank appeared first on theprimarymarket.com.

JPMorgan agreed to seize $173 billion in assets, $30 billion in securities, and all $92 billion of First Republic Bank’s deposits. In exchange, the FDIC agreed to share some of First Republic’s losses on its residential and commercial loans, thereby giving JPMorgan Chase some protection when it comes to assets going bad.

The largest U.S. bank, JPMorgan Chase fought off the likes of Bank of America and PNC Financial Services Group to win the auction for First Republic Bank’s assets.

Data from the FDIC suggests that the failure of First Republic Bank will cost an estimated $13 billion. This is in addition to the $22 billion losses incurred from the failure of Silicon Valley Bank and Signature Bank in March.

The post JPMorgan Acquires Bulk of First Republic Bank Assets in Largest Banking Failure Since 2008 appeared first on theprimarymarket.com.

Among those in the running are JPMorgan Chase and Bank of America, two of the largest U.S. banks, as well as Citizens Financial Group Inc and PNC Financial Services Group. Given until Friday to submit non-binding bids, the winner of the auction is expected to be announced late on Sunday along with the details of the sale. U.S. regulators are expected to seize the struggling bank around the same time that the announcement is made.

First Republic Bank landed itself in financial trouble last month, after which it decided to pursue a loan deal without any government assistance. This approach proved fruitless, with the auction process for the bank commencing last week.

The post First Republic Auction Gets Underway appeared first on theprimarymarket.com.

Bank of America and JPMorgan Chase, the two largest banks in the United States, have expressed interest in pursuing a deal, Yahoo Finance reported. Both banks are expected to be preparing bids which will need to be submitted before the FDIC’s deadline of 12 p.m. ET Sunday in order to be considered. This follows reports on Friday that Pittsburgh-based PNC, the sixth largest U.S. bank, is also considering a bid.

Doubts over the future of First Republic Bank emerged in March when the banking sector’s stability was rocked across the board. In an effort to weather the storm, the San Francisco-based lender took out loans from the Federal Reserve and the Federal Home Loan Bank in addition to taking $30 billion in uninsured deposits from 11 of the largest U.S. banks.

The post JP Morgan, Bank of America Considering Bids for First Republic appeared first on theprimarymarket.com.

Unlike several other mid-sized banks like Signature Bank and Silicon Valley Bank, First Republic managed to avoid collapse at the height of the banking crisis in March. It received assistance from big banks at the time, but this proved insufficient.

In the first-quarter earnings report shared on Monday, First Republic revealed disappointing numbers that included a deposit outflow of $100 billion. The bank’s stock lost 50% of its value in the aftermath and continued to fall as the week went by.

The government and First Republic advisors have discussed a number of potential rescue plans in recent days, including the creation of a “bad bank” and selling assets. However, none of those options seem to be viable, and the bank will enter the FDIC receivership.

“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement provided to CNBC when reached out for a comment.

First Republic shares closed at $3.51 on Friday, down 43.30% compared to the day prior and 97.11% down year to date. The stock continued its fall in after-hours trading, dropping additional 41.03%

The post FDIC Set to Take Over First Republic After Rescue Attempts Fail appeared first on theprimarymarket.com.

According to an earnings report shared on Tuesday, First Republic has lost 40.8% of deposits during the first quarter of 2023. Following the collapse of several mid-sized banks like Silicon Valley Bank, customers feared that the same could happen to the First Republic and decided to take their money elsewhere. This resulted in $100 billion in net outflows.

There are now legitimate questions about whether the First Republic can keep itself from folding. The bank is reportedly considering a number of strategies to remain afloat, including selling some of its assets, increasing the number of insured deposits, and trimming its workforce.

Bloomberg reported on Tuesday that the creation of a “bad bank” is another option considered by First Republic executives. “Bad banks” usually buy bad loans and other non-performing assets from other financial institutions and then try to extract additional value from them.

First Republic’s stock closed at $16.00 per share on Monday before gradually sliding in after-hours trading. It opened at $12.24 on Tuesday morning and sank to a historic low of $8.10 by the end of the day. The bank’s shares are now 93.34% down year-to-date.

The post First Republic Stock Drops Almost 50% After Outflow of $100 Billion in Deposits appeared first on theprimarymarket.com.

There are several reasons why First Republic Bank is no longer looking for a buyer. The main one is that potential buyers are scared off by the massive hole in its balance sheet that amounts to $12 billion. The suitors would want “reassurance of a government backstop” for these losses that they have to write down, something that doesn’t seem likely at the moment.

First Republic Bank executives have now decided to continue business as usual while attempting to improve the bank’s health and make it a more desirable asset in the future. In case this happens, another sale attempt will likely follow. The option of remaining independent is also on the table.

After Silicon Valley Bank and Signature Bank collapsed in early March, many believed First Republic Bank could follow the same path. However, this scenario was avoided thanks to funding injection by the Federal Reserve and JPMorgan Chase & Co. This allowed the company to get access to $70 billion in unused liquidity that allowed it to continue its operation.

The post First Republic Bank Is No Longer Looking For a Buyer appeared first on theprimarymarket.com.

Shut down last month, First Republic Bank is in the process of being integrated into JPMorgan; a process that is expected to take 12 months. The purchase saw JPMorgan receive $173 billion of the failed bank’s loans, $30 billion of securities, and $92 billion of deposits.

Currently the largest lender in the U.S., JPMorgan expressed optimism regarding the purchase, particularly given the large influx of incoming deposits by investors who sought the safety of large, established banking institutions.

First Republic Bank was the third major U.S. bank to collapse since March in what has been a sector-wide crisis. In addition to applying additional pressure to mid-sized banks and sending financial stocks tumbling, this instability had added to concerns of an impending recession.

The post JPMorgan Expects Income Boost From First Republic Bank Deal appeared first on theprimarymarket.com.

Commercial bank lending declined by $15.7 billion for the week ending May 3. This comes after lending increased by $41.9 billion the previous week. On an unadjusted basis, however, loans and leases were up slightly.

Deposits also declined on a seasonally adjusted basis for the week ending May 3. Without adjustments, however, they were up by $67.3 billion.

This data comes after a Fed report revealed that nearly half of U.S. banks have tightened terms on their commercial and industrial loans for medium and large businesses in the first quarter.

Using a report known as an H.8., economists and policymakers have been monitoring loan and deposit data to gauge the overall stability of the banking sector. The divergence between adjusted and unadjusted data has made it challenging for them to draw conclusions.

The post U.S. Bank Lending Fell Marginally Following Failure of First Republic Bank appeared first on theprimarymarket.com.

JPMorgan agreed to seize $173 billion in assets, $30 billion in securities, and all $92 billion of First Republic Bank’s deposits. In exchange, the FDIC agreed to share some of First Republic’s losses on its residential and commercial loans, thereby giving JPMorgan Chase some protection when it comes to assets going bad.

The largest U.S. bank, JPMorgan Chase fought off the likes of Bank of America and PNC Financial Services Group to win the auction for First Republic Bank’s assets.

Data from the FDIC suggests that the failure of First Republic Bank will cost an estimated $13 billion. This is in addition to the $22 billion losses incurred from the failure of Silicon Valley Bank and Signature Bank in March.

The post JPMorgan Acquires Bulk of First Republic Bank Assets in Largest Banking Failure Since 2008 appeared first on theprimarymarket.com.

Among those in the running are JPMorgan Chase and Bank of America, two of the largest U.S. banks, as well as Citizens Financial Group Inc and PNC Financial Services Group. Given until Friday to submit non-binding bids, the winner of the auction is expected to be announced late on Sunday along with the details of the sale. U.S. regulators are expected to seize the struggling bank around the same time that the announcement is made.

First Republic Bank landed itself in financial trouble last month, after which it decided to pursue a loan deal without any government assistance. This approach proved fruitless, with the auction process for the bank commencing last week.

The post First Republic Auction Gets Underway appeared first on theprimarymarket.com.

Bank of America and JPMorgan Chase, the two largest banks in the United States, have expressed interest in pursuing a deal, Yahoo Finance reported. Both banks are expected to be preparing bids which will need to be submitted before the FDIC’s deadline of 12 p.m. ET Sunday in order to be considered. This follows reports on Friday that Pittsburgh-based PNC, the sixth largest U.S. bank, is also considering a bid.

Doubts over the future of First Republic Bank emerged in March when the banking sector’s stability was rocked across the board. In an effort to weather the storm, the San Francisco-based lender took out loans from the Federal Reserve and the Federal Home Loan Bank in addition to taking $30 billion in uninsured deposits from 11 of the largest U.S. banks.

The post JP Morgan, Bank of America Considering Bids for First Republic appeared first on theprimarymarket.com.

Unlike several other mid-sized banks like Signature Bank and Silicon Valley Bank, First Republic managed to avoid collapse at the height of the banking crisis in March. It received assistance from big banks at the time, but this proved insufficient.

In the first-quarter earnings report shared on Monday, First Republic revealed disappointing numbers that included a deposit outflow of $100 billion. The bank’s stock lost 50% of its value in the aftermath and continued to fall as the week went by.

The government and First Republic advisors have discussed a number of potential rescue plans in recent days, including the creation of a “bad bank” and selling assets. However, none of those options seem to be viable, and the bank will enter the FDIC receivership.

“We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement provided to CNBC when reached out for a comment.

First Republic shares closed at $3.51 on Friday, down 43.30% compared to the day prior and 97.11% down year to date. The stock continued its fall in after-hours trading, dropping additional 41.03%

The post FDIC Set to Take Over First Republic After Rescue Attempts Fail appeared first on theprimarymarket.com.

According to an earnings report shared on Tuesday, First Republic has lost 40.8% of deposits during the first quarter of 2023. Following the collapse of several mid-sized banks like Silicon Valley Bank, customers feared that the same could happen to the First Republic and decided to take their money elsewhere. This resulted in $100 billion in net outflows.

There are now legitimate questions about whether the First Republic can keep itself from folding. The bank is reportedly considering a number of strategies to remain afloat, including selling some of its assets, increasing the number of insured deposits, and trimming its workforce.

Bloomberg reported on Tuesday that the creation of a “bad bank” is another option considered by First Republic executives. “Bad banks” usually buy bad loans and other non-performing assets from other financial institutions and then try to extract additional value from them.

First Republic’s stock closed at $16.00 per share on Monday before gradually sliding in after-hours trading. It opened at $12.24 on Tuesday morning and sank to a historic low of $8.10 by the end of the day. The bank’s shares are now 93.34% down year-to-date.

The post First Republic Stock Drops Almost 50% After Outflow of $100 Billion in Deposits appeared first on theprimarymarket.com.

There are several reasons why First Republic Bank is no longer looking for a buyer. The main one is that potential buyers are scared off by the massive hole in its balance sheet that amounts to $12 billion. The suitors would want “reassurance of a government backstop” for these losses that they have to write down, something that doesn’t seem likely at the moment.

First Republic Bank executives have now decided to continue business as usual while attempting to improve the bank’s health and make it a more desirable asset in the future. In case this happens, another sale attempt will likely follow. The option of remaining independent is also on the table.

After Silicon Valley Bank and Signature Bank collapsed in early March, many believed First Republic Bank could follow the same path. However, this scenario was avoided thanks to funding injection by the Federal Reserve and JPMorgan Chase & Co. This allowed the company to get access to $70 billion in unused liquidity that allowed it to continue its operation.

The post First Republic Bank Is No Longer Looking For a Buyer appeared first on theprimarymarket.com.