Who is buying First Republic Bank?
JPMorgan prevailed in an auction that ran over the weekend, beating out other contenders including PNC Financial Services. As part of the deal, JPMorgan will assume the majority of First Republic's assets, including $173 billion in loans and $30 billion in securities, as well as $92 billion in deposits.
May 5, 2023. To Our Valued Clients: We are writing to share that on Monday, JPMorgan Chase acquired a substantial majority of assets and assumed certain liabilities of First Republic Bank from the FDIC. We want to ensure that you have the information you need during this transition.
According to a May report from CBS News that cited a spokesperson from JPMorgan, FRC stock holders won't receive stock in JPMorgan. That essentially means that FRC stock holders have likely been wiped out in First Republic's collapse and will bear the full brunt of their stock investment loss.
Now that the bank has failed, those shares are pretty much worth $0. See, what actually happened with First Republic is that the federal government seized its assets and sold them to JPMorgan Chase. JPMorgan will take in all of the assets, like savings accounts, that were being housed at First Republic.
Troubled First Republic Bank is bought by JPMorgan Chase after FDIC takeover : NPR.
| Holder | Shares | Date Reported |
|---|---|---|
| Lindbrook Capital, Llc | 7,826 | Dec 30, 2023 |
| JDM Financial Group LLC | 1,810 | Dec 30, 2023 |
| Hollencrest Capital Management | 1,573 | Dec 30, 2023 |
| Caldwell Sutter Capital, Inc. | 1,228 | Dec 30, 2023 |
“Our government invited us and others to step up, and we did,” Dimon said in JPMorgan Chase's statement about the deal. “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.”
The shareholders are most likely wiped out. The stock has stopped trading as of Monday, and shareholders won't receive stock in JPMorgan, according to a JPMorgan spokesman. The New York Stock Exchange said on Tuesday that it is delisting First Republic's shares.
FRC Stock 12 Months Forecast
Based on 16 Wall Street analysts offering 12 month price targets for First Republic Bank in the last 3 months. The average price target is $56.50 with a high forecast of $150.00 and a low forecast of $8.00.
JPMorgan Chase & Co. agreed to acquire First Republic Bank in a government-led deal for the failed lender, putting to rest one of the biggest troubled banks remaining after turmoil engulfed the industry in March.
Should I keep First Republic Bank stock?
The answer is yes, but it's still toxic, and there's a great deal of risk associated with First Republic Bank, which is now a penny stock. I am bearish on First Republic Bank stock and consider it to be fine for short-term traders but a no-go for serious investors.
Overall, First Republic Bank stock has a Growth Grade of A, Momentum Grade of F . Whether or not you should buy First Republic Bank stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.
First Republic Bank quote is equal to 0.362 USD at 2024-03-29. Based on our forecasts, a long-term increase is expected, the "FRC" stock price prognosis for 2028-05-17 is 12.634 USD. With a 5-year investment, the revenue is expected to be around +3389.94%. Your current $100 investment may be up to $3489.94 in 2029.
The stock will be delisted. When a bank is seized by the government, its common shareholders are wiped out. In this case, First Republic shareholders, along with its debt holders, will not receive anything. JPMorgan Chase said that it would not assume First Republic's corporate debt or preferred stock.
Yes, we are talking about JPMorgan's JPM takeover of failed First Republic Bank FRC. The company bought the bulk of First Republic's $228 billion of assets (adding to its huge $3.7 trillion assets balance) and assumed deposits worth $92 billion by paying $10.6 billion.
Is my money safe? Yes. Now that First Republic is part of JPMorgan Chase, clients benefit from JPMorgan Chase's fortress balance sheet.
In July 2010, Bank of America, which acquired Merrill Lynch and thereby acquired First Republic, sold First Republic Bank to a group of private investors including Colony Capital, General Atlantic, and chairman James Herbert and former COO Katherine August DeWilde, for approximately $1 billion. Thomas J.
Action by the largest U.S. banks reflects their confidence in the country's banking system and helps ensure First Republic has the liquidity to continue serving its customers.
Total debt on the balance sheet as of December 2022 : $15.27 B.
JPMorgan won that auction, and it's paying a cool $10.6 billion for the bank, but not without some guarantees.
How much did FDIC pay for First Republic Bank?
JPMorgan has snapped up the ailing First Republic Bank, with FDIC assistance. The Wall Street giant may add 1-2% to its net income with the deal, according to analysts. The FDIC will take a $13 billion hit to its fund and provide $50 billion in financing.
For investors who own shares in a company that goes bankrupt, the equity is wiped out, rendering their investment worthless. Big stock exchanges set limits on how low a stock can go before they take it off their platform.
Ratings - FRC
Stock does not pay a dividend. 1.0 beta (5Y monthly).
Number of shares outstanding as of March 2024 : 182,000,000
According to First Republic Bank 's latest financial reports and stock price the company's current number of shares outstanding is 182,000,000. At the end of 2022 the company had 182,000,000 shares outstanding.
A target price is an estimate of the future price of a stock. Target prices are based on earnings forecasts and assumed valuation multiples. Target prices can be used to evaluate stocks and may be even more useful than an equity analyst's rating.
