JPMorgan closing 25% of First Republic Bank branches
JPMorgan Chase says 21 First Republic locations will be shuttered by the end of 2023
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JPMorgan Chase and Co. plans to shut down roughly a quarter of the branches of its recently acquired First Republic Bank by the end of the year, a JPMorgan spokesperson confirmed Thursday.
A pedestrian walks past a First Republic Bank in San Francisco on April 26, 2023. First Republic Bank was purchased by JPMorgan on May 1 amid fears that it would become the latest lender to collapse amid a regional banking crisis. (AP Photo/Jeff Chiu / AP Newsroom)
The spokesperson said JPMorgan will close 21 former First Republic locations, explaining that ones being shuttered "have relatively low transaction volumes and are generally within a short drive from another First Republic office." They did not reveal which locations will be closed.
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According to Reuters, which first reported the news, the 100-or-so employees impacted by the branch closures will be offered six-month transition assignments. After that, the former First Republic workers will be able to apply for jobs at JPMorgan, which currently has 13,000 open positions.
The JPMorgan Chase Tower on Park Avenue on midtown Manhattan. JPMorgan is the largest bank in the U.S. (Tim Clayton/Corbis via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 244.97 | +4.17 | +1.73% |
JPMorgan, the nation's largest bank, has been working to integrate First Republic into its operations since acquiring the lender on May 1, after it was taken over by regulators amid fears that it would collapse after it was caught up in the contagion of the regional banking crisis brought on by bank runs on Silicon Valley Bank and Signature Bank in March.
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Last week, JPMorgan informed roughly 1,000 First Republic employees that they would soon be out of a job after vowing to give workers of the former lender an update on their future employment status within 30 days of buying the bank.
Pedestrians walk by a First Republic bank on April 26, 2023, in San Francisco, California. The bank was acquired by JPMorgan on May 1 amid fears it would collapse. (Photo by Justin Sullivan/Getty Images / Getty Images)
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JPMorgan was able to offer jobs to nearly 85% of First Republic workers, a spokesperson said at the time.
Reuters contributed to this report.