JPMorgan Chase is set to acquire the assets of First Republic Bank (FRB) after the bank failed to recover from its financial woes.

Following a bid submitted by JPMorgan and other banks, the California Department of Financial Protection and Innovation closed FRB on May 1 and entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) as the receiver.

The FDIC then entered into a purchase and assumption agreement with JPMorgan to protect depositors.

As part of the agreement, JPMorgan will assume all assets of First Republic Bank, including uninsured deposits. This includes the 84 locations of FRB in eight states, which will reopen as JPMorgan Chase.

Loss-sharing agreement was also agreed upon for residential and commercial loans acquired by the FRB. Depositors of FRB will now become part of JPMorgan and have access to their total deposits insured by FDIC.

FRB’s financial struggles came to light on April 26 when news of a government receivership surfaced, causing the bank’s shares to plummet 20% in hours. After several volatile days, regulators closed the bank, making FRB the latest U.S. bank to collapse in 2023.