Annie Gaus

Kevin Truong

Matt Smith

Regulators are preparing to take control of First Republic Bank, according to <a href="http://First Republic Will Be Seized by Regulators in Stunning Downfall for Once-Prized Institution, Report Says" target="_blank" rel="noreferrer noopener">a report from Reuters</a>, potentially marking an astonishing downfall for a Bay Area institution whose affluent clientele and customer loyalty once made it the envy of the banking sector.

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Regulators are preparing to take control of First Republic Bank, according to <a href="http://First Republic Will Be Seized by Regulators in Stunning Downfall for Once-Prized Institution, Report Says" target="_blank" rel="noreferrer noopener">a report from Reuters</a>, potentially marking an astonishing downfall for a Bay Area institution whose affluent clientele and customer loyalty once made it the envy of the banking sector.

&#8220;We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,&#8221; a First Republic spokesperson said in a statement.

"We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients," a First Republic spokesperson said in a statement.

&#8220;We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,&#8221; a First Republic spokesperson said in a statement.

The <a href="https://www.wsj.com/articles/jpmorgan-pnc-bid-to-buy-first-republic-as-part-of-fdic-takeover-aeb936a0?mod=mhp @annie gaus">Wall Street Journal reported late Friday</a> that JPMorgan Chase and PNC Financial Services Group were vying to buy First Republic in a deal that would transpire after the government seized the bank.

The <a href="https://www.wsj.com/articles/jpmorgan-pnc-bid-to-buy-first-republic-as-part-of-fdic-takeover-aeb936a0?mod=mhp @annie gaus">Wall Street Journal reported late Friday</a> that JPMorgan Chase and PNC Financial Services Group were vying to buy First Republic in a deal that would transpire after the government seized the bank.

On Monday, First Republic told shareholders that it had lost about $100 billion in deposits after Silicon Valley Bank&#8217;s collapse, as anxiety around uninsured deposits led wealthy clients and businesses to pull assets and park them in larger banks customers consider to be safer. The bank had been forced to borrow heavily to make up for the losses.

On Monday, First Republic told shareholders that it had lost about $100 billion in deposits after Silicon Valley Bank's collapse, as anxiety around uninsured deposits led wealthy clients and businesses to pull assets and park them in larger banks customers consider to be safer. The bank had been forced to borrow heavily to make up for the losses.

On Monday, First Republic told shareholders that it had lost about $100 billion in deposits after Silicon Valley Bank&#8217;s collapse, as anxiety around uninsured deposits led wealthy clients and businesses to pull assets and park them in larger banks customers consider to be safer. The bank had been forced to borrow heavily to make up for the losses.

A coalition of banks deposited $30 billion into the bank on March 16, which helped to <a href="https://sfstandard.com/business/first-republic-bank-stabilizes-but-more-problems-are-lurking-around-the-corner/">temporarily stabilize the bank</a> but failed to instill much confidence among shareholders.

A coalition of banks deposited $30 billion into the bank on March 16, which helped to <a href="https://sfstandard.com/business/first-republic-bank-stabilizes-but-more-problems-are-lurking-around-the-corner/">temporarily stabilize the bank</a> but failed to instill much confidence among shareholders.

First Republic&#8217;s stock sunk to historic lows throughout March and April amid scrutiny of its losses and seemingly similar profile to Silicon Valley Bank, a regional bank catering to startups and venture capitalists with a high percentage of uninsured deposits. Its stock closed at $3.51 per share on Friday, down more than 95% since March 8, when news of Silicon Valley Bank&#8217;s troubles first emerged.

First Republic's stock sunk to historic lows throughout March and April amid scrutiny of its losses and seemingly similar profile to Silicon Valley Bank, a regional bank catering to startups and venture capitalists with a high percentage of uninsured deposits. Its stock closed at $3.51 per share on Friday, down more than 95% since March 8, when news of Silicon Valley Bank's troubles first emerged.

First Republic&#8217;s stock sunk to historic lows throughout March and April amid scrutiny of its losses and seemingly similar profile to Silicon Valley Bank, a regional bank catering to startups and venture capitalists with a high percentage of uninsured deposits. Its stock closed at $3.51 per share on Friday, down more than 95% since March 8, when news of Silicon Valley Bank&#8217;s troubles first emerged.

First Republic executives, government officials and financial institutions had urgently sought to <a href="https://sfstandard.com/business/first-republic-is-hanging-on-for-dear-life-where-does-the-bank-go-from-here/">cobble together a deal this week</a> that might have involved selling off underwater assets, such as fixed-rate mortgages, to other institutions in the hopes of avoiding a shutdown. First Republic executives had also announced plans to lay off up to <a href="https://sfstandard.com/business/first-republic-to-lay-off-up-25-of-employees-after-unprecedented-deposit-loss/">25% of its staff</a>, cut executive pay and trim real estate holdings.

First Republic executives, government officials and financial institutions had urgently sought to <a href="https://sfstandard.com/business/first-republic-is-hanging-on-for-dear-life-where-does-the-bank-go-from-here/">cobble together a deal this week</a> that might have involved selling off underwater assets, such as fixed-rate mortgages, to other institutions in the hopes of avoiding a shutdown. First Republic executives had also announced plans to lay off up to <a href="https://sfstandard.com/business/first-republic-to-lay-off-up-25-of-employees-after-unprecedented-deposit-loss/">25% of its staff</a>, cut executive pay and trim real estate holdings.

Although First Republic was hoping for a white knight in the form of a buyer, the distressed assets on the bank&#8217;s books would have to be marked down as losses, making it a less attractive target.

Although First Republic was hoping for a white knight in the form of a buyer, the distressed assets on the bank's books would have to be marked down as losses, making it a less attractive target.

Although First Republic was hoping for a white knight in the form of a buyer, the distressed assets on the bank&#8217;s books would have to be marked down as losses, making it a less attractive target.

Founded in 1985 by Jim Herbert, San Francisco-based First Republic was known for high-touch customer service that extended into banking, wealth management and loans to individuals and businesses. As the company floundered in recent weeks, customers took to social media to voice <a href="https://sfstandard.com/business/first-republic-bank-stabilizes-but-more-problems-are-lurking-around-the-corner/">support for the bank</a>.

Founded in 1985 by Jim Herbert, San Francisco-based First Republic was known for high-touch customer service that extended into banking, wealth management and loans to individuals and businesses. As the company floundered in recent weeks, customers took to social media to voice <a href="https://sfstandard.com/business/first-republic-bank-stabilizes-but-more-problems-are-lurking-around-the-corner/">support for the bank</a>.

First Republic was the <a href="https://sfstandard.com/technology/first-republic-bank-san-francisco-banking-sector-worries/">Bay Area&#8217;s third-largest bank</a> and the 14th-largest in the U.S. at the end of last year, with 44% of its deposits originating in the Bay Area. At the end of last year, it held $98.8 billion worth of loans in single-family homes, $21.6 billion in multifamily properties and another $14 billion in construction and development loans.

First Republic was the <a href="https://sfstandard.com/technology/first-republic-bank-san-francisco-banking-sector-worries/">Bay Area's third-largest bank</a> and the 14th-largest in the U.S. at the end of last year, with 44% of its deposits originating in the Bay Area. At the end of last year, it held $98.8 billion worth of loans in single-family homes, $21.6 billion in multifamily properties and another $14 billion in construction and development loans.

First Republic was the <a href="https://sfstandard.com/technology/first-republic-bank-san-francisco-banking-sector-worries/">Bay Area&#8217;s third-largest bank</a> and the 14th-largest in the U.S. at the end of last year, with 44% of its deposits originating in the Bay Area. At the end of last year, it held $98.8 billion worth of loans in single-family homes, $21.6 billion in multifamily properties and another $14 billion in construction and development loans.

The company had 7,213 employees at the end of last year.

The company had 7,213 employees at the end of last year.

First Republic&#8217;s collapse would be the <a href="https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/">third banking failure since March</a>. Silicon Valley Bank and New York-based Signature Bank failed within two days of each other in early March.

First Republic's collapse would be the <a href="https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/">third banking failure since March</a>. Silicon Valley Bank and New York-based Signature Bank failed within two days of each other in early March.

First Republic&#8217;s collapse would be the <a href="https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/">third banking failure since March</a>. Silicon Valley Bank and New York-based Signature Bank failed within two days of each other in early March.

&#8216;It Didn’t Look Good&#8217;

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Ludwig Chincarini, a professor of finance at the University of San Francisco, said he did a back-of-the-envelope calculation for First Republic’s valuation after the announcement that the bank would lay off up to a quarter of its workforce after losing some $100 million in deposits.

Ludwig Chincarini, a professor of finance at the University of San Francisco, said he did a back-of-the-envelope calculation for First Republic’s valuation after the announcement that the bank would lay off up to a quarter of its workforce after losing some $100 million in deposits.

While his assessment doesn’t include an evaluation of First Republic’s brand or potential losses from its mortgages and bond portfolios, what he got back was a valuation under zero.

While his assessment doesn’t include an evaluation of First Republic’s brand or potential losses from its mortgages and bond portfolios, what he got back was a valuation under zero.

“It didn’t look good, and that’s not accounting for other effects like people withdrawing more money after the bad news they put out,” Chincarini said. “It was fairly clear they would either have to get bought or they will probably go into receivership.”

“It didn’t look good, and that’s not accounting for other effects like people withdrawing more money after the bad news they put out,” Chincarini said. “It was fairly clear they would either have to get bought or they will probably go into receivership.”

Still, he doesn’t believe that First Republic’s downfall would create additional contagion in the banking system, at least any more than already existed, as it was common knowledge that the bank was teetering.

Still, he doesn’t believe that First Republic’s downfall would create additional contagion in the banking system, at least any more than already existed, as it was common knowledge that the bank was teetering.

Morris Pearl, chairman of Patriotic Millionaires and a former BlackRock managing director&nbsp;who helped the federal government assess the impact of bailouts during the Great Financial Crisis, said the bank failures are indicative of regulators needing to be more “proactive” with the “power and will” to step in when they see bad risk-management practices.

Morris Pearl, chairman of Patriotic Millionaires and a former BlackRock managing director&nbsp;who helped the federal government assess the impact of bailouts during the Great Financial Crisis, said the bank failures are indicative of regulators needing to be more “proactive” with the “power and will” to step in when they see bad risk-management practices.

“First Republic had some $100 billion in withdrawals, and they got $30 billion deposited by other big banks, who are now probably wondering if they’re getting their money back,&#8221; Pearl said. &#8220;They couldn’t sell stuff fast enough to make up the difference, plus there were other areas of the business that were failing.&#8221;

“First Republic had some $100 billion in withdrawals, and they got $30 billion deposited by other big banks, who are now probably wondering if they’re getting their money back," Pearl said. "They couldn’t sell stuff fast enough to make up the difference, plus there were other areas of the business that were failing."

“First Republic had some $100 billion in withdrawals, and they got $30 billion deposited by other big banks, who are now probably wondering if they’re getting their money back,&#8221; Pearl said. &#8220;They couldn’t sell stuff fast enough to make up the difference, plus there were other areas of the business that were failing.&#8221;

Pearl said that federal officials raising the depository limit past $250,000 is a likely and necessary outcome of the recent banking sector volatility.

Pearl said that federal officials raising the depository limit past $250,000 is a likely and necessary outcome of the recent banking sector volatility.

“The bank had really good customer service, but a lot of people aren’t willing to take a chance on a bank even with rumors of a failure,” Pearl said. “If people don’t have confidence in the bank, they’re not going to put their money in.”

“The bank had really good customer service, but a lot of people aren’t willing to take a chance on a bank even with rumors of a failure,” Pearl said. “If people don’t have confidence in the bank, they’re not going to put their money in.”

Brian Dolan, CEO of the Boston staffing company WorkReduce, spent part of his San Diego vacation Friday lining up at a First Republic Bank branch to make a withdrawal.

Brian Dolan, CEO of the Boston staffing company WorkReduce, spent part of his San Diego vacation Friday lining up at a First Republic Bank branch to make a withdrawal.

“I was there right at closing time, and I could hear bank personnel commenting on all the withdrawals that had been going on that day,” said Dolan.

“I was there right at closing time, and I could hear bank personnel commenting on all the withdrawals that had been going on that day,” said Dolan.

With news of a possible FDIC takeover emerging Friday, he decided to go to the nearest teller window to make sure his company didn’t have more on deposit than $250,000.

With news of a possible FDIC takeover emerging Friday, he decided to go to the nearest teller window to make sure his company didn’t have more on deposit than $250,000.

Dolan had been postponing such a move while preparing to shift various lines of banking business to another institution, a time-consuming process.

Dolan had been postponing such a move while preparing to shift various lines of banking business to another institution, a time-consuming process.

“That’s why we were sitting here with money in a&nbsp; risky bank,” he said. “We have been looking to move our funds out of the First Republic since the Silicon Valley Bank collapse, because it seemed relatively clear that there were issues.”

“That’s why we were sitting here with money in a&nbsp; risky bank,” he said. “We have been looking to move our funds out of the First Republic since the Silicon Valley Bank collapse, because it seemed relatively clear that there were issues.”

Stacy Small, owner of the Santa Rosa travel agency Elite Travel Club, was on a plane back from Bali on March 13 when she got a text from a friend sharing news of First Republic’s troubles. Two days later, she opened an account with Chase and transferred funds in order to make sure she didn’t have deposits with First Republic greater than $250,000, the maximum insured by the Federal Deposit Insurance Corporation.

Stacy Small, owner of the Santa Rosa travel agency Elite Travel Club, was on a plane back from Bali on March 13 when she got a text from a friend sharing news of First Republic’s troubles. Two days later, she opened an account with Chase and transferred funds in order to make sure she didn’t have deposits with First Republic greater than $250,000, the maximum insured by the Federal Deposit Insurance Corporation.

“My reaction is one of sadness, but I can’t say I am surprised,” Small said Friday.

“My reaction is one of sadness, but I can’t say I am surprised,” Small said Friday.

Small had opened her First Republic account in 2010 upon recommendations from friends.

Small had opened her First Republic account in 2010 upon recommendations from friends.

“For me, now, it’s more of an emotional thing,&#8221; she said. &#8220;I was just starting my business, and I was fortunate to be in a position to bank with people who I could call or email.”

“For me, now, it’s more of an emotional thing," she said. "I was just starting my business, and I was fortunate to be in a position to bank with people who I could call or email.”

“For me, now, it’s more of an emotional thing,&#8221; she said. &#8220;I was just starting my business, and I was fortunate to be in a position to bank with people who I could call or email.”

First Republic Bank will be seized by regulators, reports say

George Kelly

The failed San Francisco-founded First Republic Bank has closed a dozen branches in the city and several nearby areas, according to listings on its site and other media reports.

The failed San Francisco-founded First Republic Bank has closed a dozen branches in the city and several nearby areas, according to listings on its site and other media reports.

Those closures came sooner than an <a href="https://sfstandard.com/2023/06/02/here-are-the-san-francisco-first-republic-bank-branches-set-to-close/">initial year-end estimate</a> provided in June.&nbsp;JPMorgan Chase&nbsp;<a href="https://sfstandard.com/business/regulators-seize-first-republic-and-sell-assets-to-jpmorgan-chase/">entered into a deal to purchase</a>&nbsp;the failed bank on May 1 after it was seized by regulators, capping a steep decline for the San Francisco-based lender, which became the largest bank to close since the Great Financial Crisis.&nbsp;

Here are the San Francisco First Republic Bank branches set to close

Those closures came sooner than an <a href="https://sfstandard.com/2023/06/02/here-are-the-san-francisco-first-republic-bank-branches-set-to-close/">initial year-end estimate</a> provided in June.&nbsp;JPMorgan Chase&nbsp;<a href="https://sfstandard.com/business/regulators-seize-first-republic-and-sell-assets-to-jpmorgan-chase/">entered into a deal to purchase</a>&nbsp;the failed bank on May 1 after it was seized by regulators, capping a steep decline for the San Francisco-based lender, which became the largest bank to close since the Great Financial Crisis.&nbsp;

From its 1985 founding, it grew to become the third-largest bank in the Bay Area and the 14th-largest in the country at the end of last year. It catered to high-net-worth individuals, with roughly 40% of its deposits originating in the Bay Area, and was known for&nbsp;<a href="https://sfstandard.com/business/first-republic-takeover-deals-yet-another-blow-to-bay-area-real-estate/">attractive mortgage rates</a>&nbsp;and high-touch customer service, gaining a base of loyal customers and longtime employees.

From its 1985 founding, it grew to become the third-largest bank in the Bay Area and the 14th-largest in the country at the end of last year. It catered to high-net-worth individuals, with roughly 40% of its deposits originating in the Bay Area, and was known for&nbsp;<a href="https://sfstandard.com/business/first-republic-takeover-deals-yet-another-blow-to-bay-area-real-estate/">attractive mortgage rates</a>&nbsp;and high-touch customer service, gaining a base of loyal customers and longtime employees.

As part of that acquisition, JPMorgan announced plans to shut down 21 First Republic locations across eight states—roughly a quarter of the bank’s branches—<a href="https://archive.ph/QSUyM#selection-713.0-720.0" target="_blank" rel="noreferrer noopener">Reuters reported</a>.

As part of that acquisition, JPMorgan announced plans to shut down 21 First Republic locations across eight states—roughly a quarter of the bank’s branches—<a href="https://archive.ph/QSUyM#selection-713.0-720.0" target="_blank" rel="noreferrer noopener">Reuters reported</a>.

“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” a JPMorgan spokesperson said in a statement. “Clients should expect to continue to receive the <a href="https://sfstandard.com/2023/05/25/first-republic-employees-laid-off-in-brief-scripted-phone-calls/">same level of service</a> with seamless access to their money.”

&#8216;Cutthroat&#8217;: First Republic Bank employees laid off in brief, scripted calls

“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” a JPMorgan spokesperson said in a statement. “Clients should expect to continue to receive the <a href="https://sfstandard.com/2023/05/25/first-republic-employees-laid-off-in-brief-scripted-phone-calls/">same level of service</a> with seamless access to their money.”

A major lender and employer in the Bay Area, First Republic was considered a cornerstone of the region&#8217;s real estate sector.

A major lender and employer in the Bay Area, First Republic was considered a cornerstone of the region's real estate sector.

A major lender and employer in the Bay Area, First Republic was considered a cornerstone of the region&#8217;s real estate sector.

READ MORE:&nbsp;<a href="https://sfstandard.com/2023/05/02/first-republic-takeover-deals-yet-another-blow-to-bay-area-real-estate/">First Republic Bank Takeover Another Blow to Bay Area Real Estate Industry</a>

First Republic Bank takeover another blow to Bay Area real estate industry

READ MORE:&nbsp;<a href="https://sfstandard.com/2023/05/02/first-republic-takeover-deals-yet-another-blow-to-bay-area-real-estate/">First Republic Bank Takeover Another Blow to Bay Area Real Estate Industry</a>

The bank offered low-rate mortgages to affluent clients and understood the nuances of Bay Area business, making it the lender of choice for many individuals, startups and small businesses.

The bank offered low-rate mortgages to affluent clients and understood the nuances of Bay Area business, making it the lender of choice for many individuals, startups and small businesses.

It was also embedded in San Francisco&#8217;s pool of affordable housing, offering a $100 million revolving credit facility&nbsp;to the San Francisco Housing Accelerator Fund,&nbsp;which assists nonprofits in acquiring and renovating low-income housing.&nbsp;

It was also embedded in San Francisco's pool of affordable housing, offering a $100 million revolving credit facility&nbsp;to the San Francisco Housing Accelerator Fund,&nbsp;which assists nonprofits in acquiring and renovating low-income housing.&nbsp;

It was also embedded in San Francisco&#8217;s pool of affordable housing, offering a $100 million revolving credit facility&nbsp;to the San Francisco Housing Accelerator Fund,&nbsp;which assists nonprofits in acquiring and renovating low-income housing.&nbsp;

In San Francisco, the following locations have closed:

In San Francisco, the following locations have closed:

•&nbsp;Embarcadero, One Embarcadero Center

•&nbsp;Embarcadero, One Embarcadero Center

•&nbsp;Market Square, 1355 Market St., Suite 140

•&nbsp;Market Square, 1355 Market St., Suite 140

•&nbsp;Transbay, 405 Howard St.

•&nbsp;Eighth &amp; Irving, 653 Irving St.

•&nbsp;Eighth &amp; Irving, 653 Irving St.

•&nbsp;19th &amp; Irving, 1809 Irving St.

•&nbsp;19th &amp; Irving, 1809 Irving St.

Closures elsewhere in the Bay Area:

Closures elsewhere in the Bay Area:

•&nbsp;Burlingame, 1155 California Drive, Burlingame

•&nbsp;Burlingame, 1155 California Drive, Burlingame

•&nbsp;Sunnyvale, 201 W. El Camino Real, Sunnyvale

•&nbsp;Sunnyvale, 201 W. El Camino Real, Sunnyvale

•&nbsp;Mill Valley, 750 Redwood Highway Frontage Road, Mill Valley

•&nbsp;Mill Valley, 750 Redwood Highway Frontage Road, Mill Valley

•&nbsp;San Ramon, 3130 Crow Canyon Place, San Ramon

•&nbsp;San Ramon, 3130 Crow Canyon Place, San Ramon

•&nbsp;Walnut Creek, 1400 Civic Drive, Walnut Creek

•&nbsp;Walnut Creek, 1400 Civic Drive, Walnut Creek

These San Francisco Bay Area First Republic Bank branches just closed

Regulators continued their search for a solution to First Republic Bank&#8217;s woes over the weekend before stock markets were set to open Monday.

Regulators continued their search for a solution to First Republic Bank's woes over the weekend before stock markets were set to open Monday.

Regulators continued their search for a solution to First Republic Bank&#8217;s woes over the weekend before stock markets were set to open Monday.

San Francisco-based <a href="https://sfstandard.com/business/first-republic-is-hanging-on-for-dear-life-where-does-the-bank-go-from-here/">First Republic has struggled</a> since the collapse of Silicon Valley Bank and Signature Bank in early March, as investors and depositors have grown increasingly worried that the bank may not survive as an independent entity for much longer. The bank&#8217;s stock closed at $3.51 on Friday, a fraction of the roughly $170 a share it traded for a year ago.

San Francisco-based <a href="https://sfstandard.com/business/first-republic-is-hanging-on-for-dear-life-where-does-the-bank-go-from-here/">First Republic has struggled</a> since the collapse of Silicon Valley Bank and Signature Bank in early March, as investors and depositors have grown increasingly worried that the bank may not survive as an independent entity for much longer. The bank's stock closed at $3.51 on Friday, a fraction of the roughly $170 a share it traded for a year ago.

San Francisco-based <a href="https://sfstandard.com/business/first-republic-is-hanging-on-for-dear-life-where-does-the-bank-go-from-here/">First Republic has struggled</a> since the collapse of Silicon Valley Bank and Signature Bank in early March, as investors and depositors have grown increasingly worried that the bank may not survive as an independent entity for much longer. The bank&#8217;s stock closed at $3.51 on Friday, a fraction of the roughly $170 a share it traded for a year ago.

Gary Cohn, a former Goldman Sachs president who served as President Donald Trump&#8217;s top economic adviser, told CBS News&#8217;s Face the Nation on Sunday that the Federal Deposit Insurance Corporation &#8220;would prefer to sell the bank in its entirety than in pieces.&#8221;

Gary Cohn, a former Goldman Sachs president who served as President Donald Trump's top economic adviser, told CBS News's Face the Nation on Sunday that the Federal Deposit Insurance Corporation "would prefer to sell the bank in its entirety than in pieces."

Gary Cohn, a former Goldman Sachs president who served as President Donald Trump&#8217;s top economic adviser, told CBS News&#8217;s Face the Nation on Sunday that the Federal Deposit Insurance Corporation &#8220;would prefer to sell the bank in its entirety than in pieces.&#8221;

&#8220;What will most likely happen is the FDIC will seize control and then simultaneously resell the asset to the successful bidder,&#8221; Cohn said.

"What will most likely happen is the FDIC will seize control and then simultaneously resell the asset to the successful bidder," Cohn said.

&#8220;What will most likely happen is the FDIC will seize control and then simultaneously resell the asset to the successful bidder,&#8221; Cohn said.

Cohn said he believed it will be a &#8220;much faster process&#8221; than what happened with Silicon Valley Bank.

Cohn said he believed it will be a "much faster process" than what happened with Silicon Valley Bank.

Cohn said he believed it will be a &#8220;much faster process&#8221; than what happened with Silicon Valley Bank.

First Republic reported total assets of $233 billion as of March 31. At the end of last year, the Federal Reserve ranked First Republic 14th in size among U.S. commercial banks.

First Republic reported total assets of $233 billion as of March 31. At the end of last year, the Federal Reserve ranked First Republic 14th in size among U.S. commercial banks.

Before Silicon Valley Bank failed, First Republic had a banking franchise that was the envy of most of the industry. Its clients—mostly the rich and powerful—rarely defaulted on their loans. The 72-branch bank has made much of its money making low-cost loans to the rich, which reportedly included Meta Platforms CEO Mark Zuckerberg.

Before Silicon Valley Bank failed, First Republic had a banking franchise that was the envy of most of the industry. Its clients—mostly the rich and powerful—rarely defaulted on their loans. The 72-branch bank has made much of its money making low-cost loans to the rich, which reportedly included Meta Platforms CEO Mark Zuckerberg.

Flush with deposits from the well-heeled, First Republic saw total assets more than double from $102 billion at the end of 2019&#8217;s first quarter, when its full-time workforce was 4,600.

Flush with deposits from the well-heeled, First Republic saw total assets more than double from $102 billion at the end of 2019's first quarter, when its full-time workforce was 4,600.

Flush with deposits from the well-heeled, First Republic saw total assets more than double from $102 billion at the end of 2019&#8217;s first quarter, when its full-time workforce was 4,600.

But the vast majority of First Republic&#8217;s deposits, like those in Silicon Valley and Signature Bank, were uninsured—that is, above the $250,000 limit set by the FDIC. And that began to fuel worries about the franchise among analysts and investors. If First Republic were to fail, its depositors would be at risk of not getting all their money back.

But the vast majority of First Republic's deposits, like those in Silicon Valley and Signature Bank, were uninsured—that is, above the $250,000 limit set by the FDIC. And that began to fuel worries about the franchise among analysts and investors. If First Republic were to fail, its depositors would be at risk of not getting all their money back.

But the vast majority of First Republic&#8217;s deposits, like those in Silicon Valley and Signature Bank, were uninsured—that is, above the $250,000 limit set by the FDIC. And that began to fuel worries about the franchise among analysts and investors. If First Republic were to fail, its depositors would be at risk of not getting all their money back.

Those fears were crystalized in the bank&#8217;s recent quarterly results. The bank said depositors pulled more than $100 billion out of the bank during April&#8217;s crisis. San Francisco-based First Republic said that it was only able to stanch the bleeding after a group of large banks stepped in to save it with $30 billion in uninsured deposits.

Those fears were crystalized in the bank's recent quarterly results. The bank said depositors pulled more than $100 billion out of the bank during April's crisis. San Francisco-based First Republic said that it was only able to stanch the bleeding after a group of large banks stepped in to save it with $30 billion in uninsured deposits.

Those fears were crystalized in the bank&#8217;s recent quarterly results. The bank said depositors pulled more than $100 billion out of the bank during April&#8217;s crisis. San Francisco-based First Republic said that it was only able to stanch the bleeding after a group of large banks stepped in to save it with $30 billion in uninsured deposits.

Since the crisis, First Republic has been looking for a way to <a href="https://sfstandard.com/business/first-republic-stock-hits-new-lows-as-bank-desperately-searches-for-solutions/">quickly turn itself around</a>. The bank planned to sell off unprofitable assets, including the low interest mortgages that it provided to wealthy clients. It also announced plans to lay off up to a quarter of its workforce, which totaled about 7,200 employees at the end of 2022.

Since the crisis, First Republic has been looking for a way to <a href="https://sfstandard.com/business/first-republic-stock-hits-new-lows-as-bank-desperately-searches-for-solutions/">quickly turn itself around</a>. The bank planned to sell off unprofitable assets, including the low interest mortgages that it provided to wealthy clients. It also announced plans to lay off up to a quarter of its workforce, which totaled about 7,200 employees at the end of 2022.

But investors have remained skeptical. The bank&#8217;s executives have taken no questions from investors or analysts since the bank reported its results, causing the stock to sink further.

But investors have remained skeptical. The bank's executives have taken no questions from investors or analysts since the bank reported its results, causing the stock to sink further.

But investors have remained skeptical. The bank&#8217;s executives have taken no questions from investors or analysts since the bank reported its results, causing the stock to sink further.

And it&#8217;s hard to profitably restructure a balance sheet when a firm has to sell off assets quickly and has fewer bankers to find opportunities for the bank to invest in. It took years for banks like Citigroup and Bank of America to return to profitability after the global financial crisis 15 years ago, and those banks had the benefit of a government-aided backstop to keep them going.

And it's hard to profitably restructure a balance sheet when a firm has to sell off assets quickly and has fewer bankers to find opportunities for the bank to invest in. It took years for banks like Citigroup and Bank of America to return to profitability after the global financial crisis 15 years ago, and those banks had the benefit of a government-aided backstop to keep them going.

And it&#8217;s hard to profitably restructure a balance sheet when a firm has to sell off assets quickly and has fewer bankers to find opportunities for the bank to invest in. It took years for banks like Citigroup and Bank of America to return to profitability after the global financial crisis 15 years ago, and those banks had the benefit of a government-aided backstop to keep them going.

PNC Financial Services Group, JPMorgan Chase and Citizens Financial Group submitted final bids for First Republic on Sunday, <a href="https://www.reuters.com/business/finance/pnc-jpm-putting-final-bids-first-republic-fdic-auction-sources-2023-04-30/" target="_blank" rel="noreferrer noopener">Reuters first reported</a>.

PNC Financial Services Group, JPMorgan Chase and Citizens Financial Group submitted final bids for First Republic on Sunday, <a href="https://www.reuters.com/business/finance/pnc-jpm-putting-final-bids-first-republic-fdic-auction-sources-2023-04-30/" target="_blank" rel="noreferrer noopener">Reuters first reported</a>.

A deal is expected to be announced before stock markets open Monday, multiple sources told the news outlet.

A deal is expected to be announced before stock markets open Monday, multiple sources told the news outlet.

First Republic Bank up in the air as regulators juggle its fate

At least three First Republic Bank locations in San Francisco will be shut down by the end of the year, employees at the branches confirmed.&nbsp;

At least three First Republic Bank locations in San Francisco will be shut down by the end of the year, employees at the branches confirmed.&nbsp;

JPMorgan Chase <a href="https://sfstandard.com/business/regulators-seize-first-republic-and-sell-assets-to-jpmorgan-chase/">entered into a deal to purchase</a> the failed bank on May 1 after it was seized by regulators.&nbsp;

JPMorgan Chase <a href="https://sfstandard.com/business/regulators-seize-first-republic-and-sell-assets-to-jpmorgan-chase/">entered into a deal to purchase</a> the failed bank on May 1 after it was seized by regulators.&nbsp;

The takeover capped off a steep decline for the San Francisco-based lender, which became the largest bank to close since the Great Financial Crisis. First Republic was founded in San Francisco in 1985 and made a name for itself by catering to a high-net-worth clientele, particularly within its Bay Area home base.&nbsp;

The takeover capped off a steep decline for the San Francisco-based lender, which became the largest bank to close since the Great Financial Crisis. First Republic was founded in San Francisco in 1985 and made a name for itself by catering to a high-net-worth clientele, particularly within its Bay Area home base.&nbsp;

As part of the acquisition, JPMorgan planned to shut down 21 First Republic locations across eight states—roughly a quarter of the bank’s branches—<a href="https://archive.ph/QSUyM#selection-713.0-720.0" target="_blank" rel="noreferrer noopener">Reuters reported</a>. Around 100 employees will be given six-month transition contracts.

As part of the acquisition, JPMorgan planned to shut down 21 First Republic locations across eight states—roughly a quarter of the bank’s branches—<a href="https://archive.ph/QSUyM#selection-713.0-720.0" target="_blank" rel="noreferrer noopener">Reuters reported</a>. Around 100 employees will be given six-month transition contracts.

“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” a JPMorgan spokesperson said in a statement. “Clients should expect to continue to receive the same level of service with seamless access to their money.”

“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” a JPMorgan spokesperson said in a statement. “Clients should expect to continue to receive the same level of service with seamless access to their money.”

JPMorgan executives previously said that the First Republic name and brand will be retired once its integration is completed. First Republic operated 84 branches across the country and 14 in San Francisco at the time of its acquisition. JPMorgan did not disclose what locations would be closed.&nbsp;&nbsp;

JPMorgan executives previously said that the First Republic name and brand will be retired once its integration is completed. First Republic operated 84 branches across the country and 14 in San Francisco at the time of its acquisition. JPMorgan did not disclose what locations would be closed.&nbsp;&nbsp;

The running list of confirmed branch closures in San Francisco according to employees are:

The running list of confirmed branch closures in San Francisco according to employees are:

<ul class="wp-block-list">
<li>First Republic (Sunset) location at 1809 Irving St.</li>



<li>First Republic (Noe Valley) location at 1354 Castro St.</li>



<li>First Republic (Transbay) location at 405 Howard St.</li>
</ul>

First Republic (Sunset) location at 1809 Irving St.

core/list-item

<li>First Republic (Sunset) location at 1809 Irving St.</li>

First Republic (Noe Valley) location at 1354 Castro St.

<li>First Republic (Noe Valley) location at 1354 Castro St.</li>

First Republic (Transbay) location at 405 Howard St.

<li>First Republic (Transbay) location at 405 Howard St.</li>

core/list

<ul><li>First Republic (Sunset) location at 1809 Irving St.</li><li>First Republic (Noe Valley) location at 1354 Castro St.</li><li>First Republic (Transbay) location at 405 Howard St.</li></ul>

Among the locations that employees confirmed will remain open in San Francisco are:

Among the locations that employees confirmed will remain open in San Francisco are:

<ul class="wp-block-list">
<li>First Republic (West Portal) location at 279 West Portal Ave.</li>



<li>First Republic (Laurel Village) location at 3533 California St.</li>



<li>First Republic (Presidio) location at 558 Presidio Blvd.</li>



<li>First Republic (Pine) location at 111 Pine St.&nbsp;</li>
</ul>

First Republic (West Portal) location at 279 West Portal Ave.

<li>First Republic (West Portal) location at 279 West Portal Ave.</li>

First Republic (Laurel Village) location at 3533 California St.

<li>First Republic (Laurel Village) location at 3533 California St.</li>

First Republic (Presidio) location at 558 Presidio Blvd.

<li>First Republic (Presidio) location at 558 Presidio Blvd.</li>

First Republic (Pine) location at 111 Pine St.&nbsp;

<li>First Republic (Pine) location at 111 Pine St.&nbsp;</li>

<ul><li>First Republic (West Portal) location at 279 West Portal Ave.</li><li>First Republic (Laurel Village) location at 3533 California St.</li><li>First Republic (Presidio) location at 558 Presidio Blvd.</li><li>First Republic (Pine) location at 111 Pine St.&nbsp;</li></ul>

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