First Republic Bank, headquartered in San Francisco, was a commercial bank and wealth management firm serving affluent clients. Operating 93 branches across 11 states, it primarily served customers in New York, California, Massachusetts, and Florida. Amidst the 2023 United States banking crisis, the FDIC closed First Republic Bank on May 1, 2023, and it was subsequently acquired by JPMorgan Chase.
February 1985: Founding of First Republic Bank
Jim Herbert, who had previously founded and led San Francisco Bancorp, established First Republic Bank in February 1985.
July 1, 1985: First Republic Bank Commences Operations
First Republic Bank officially began its operations on July 1, 1985, as a California-chartered industrial loan company.
1987: General Atlantic's Early Investment
General Atlantic made an early investment of approximately $5 million in First Republic Bank in 1987, demonstrating their early confidence in the firm's potential.
1996: Pursuit of Banking Charter Expansion
In 1996, First Republic Bank initiated efforts to obtain a banking charter to broaden its range of financial services.
1998: Acquisition of Trainer Worthman & Co.
First Republic Bank expanded its operations in 1998 by acquiring Trainer Worthman & Co., a financial services company.
January 2000: Investment in Froley, Revy Investment Company Inc.
First Republic Bank made an initial investment in Froley, Revy Investment Company Inc. in January 2000, acquiring an 18% stake in the firm.
December 2001: Acquisition of Starbuck, Tisdale & Associates
First Republic Bank acquired Starbuck, Tisdale & Associates, a financial services firm, for $13 million in a cash and stock deal in December 2001.
2002: Acquisition of Froley, Revy Investment Company Inc.
First Republic Bank completed the acquisition of Froley, Revy Investment Company Inc. in 2002, purchasing the investment firm for $17 million in a combination of cash and stock.
2004: Acquisition of Bay Isle Financial's Private Client Asset Management Division
In 2004, First Republic Bank further expanded its asset management capabilities by acquiring the Private Client Asset Management division from Bay Isle Financial, a subsidiary of Janus Capital Group.
2006: Acquisition of Bank of Walnut Creek
First Republic Bank acquired Bank of Walnut Creek in 2006, further expanding its presence.
September 2007: Merrill Lynch Acquires First Republic Bank
In September 2007, Merrill Lynch acquired First Republic Bank for $1.8 billion in a cash and stock transaction.
2009: Start of Financial Data Reporting Period
This entry marks the beginning of the period from 2009 to 2022, for which financial data such as total revenue, net income, assets, and dividends per common share, were sourced from the company's annual reports, earnings releases, and SEC Form 10-Ks.
July 2010: Sale of First Republic Bank to Private Investors
Bank of America, which had acquired Merrill Lynch and subsequently First Republic Bank, sold First Republic to a consortium of private investors in July 2010 for approximately $1 billion. The investor group included Colony Capital, General Atlantic, and key figures like James Herbert and Katherine August DeWilde.
December 2010: First Republic Bank's Second Initial Public Offering
First Republic Bank once again became a publicly traded company in December 2010, successfully completing its second initial public offering and raising $280.5 million.
November 2012: Acquisition of Luminous Capital
In November 2012, First Republic Bank acquired Luminous Capital, a prominent wealth management firm managing $5.5 billion in assets, for a sum of $125 million.
2015: Acquisition of Constellation Wealth Partners
Continuing its strategic expansion, First Republic Bank acquired Constellation Wealth Partners in 2015 for $115 million, further strengthening its position in the wealth management sector.
December 2016: Acquisition of Gradifi
In December 2016, under the leadership of then-chief investment officer Hafize Gaye Erkan, First Republic Bank acquired Gradifi, a two-year-old startup focused on assisting companies in helping their employees manage and repay student loan debt.
March 2018: Investment in CommonBond
First Republic Bank made a strategic investment in CommonBond, a student loan financing company, in March 2018.
2019: Departure of Client Advisors
In 2019, a group of 50 client advisors, who had joined First Republic Bank through the Luminous Capital acquisition and collectively managed $17 billion in assets, left the company.
2022: End of Financial Data Reporting Period
This entry marks the end of the period, from 2009 to 2022, for which financial data was tracked and reported.
March 2023: Credit Rating Downgrades
During the March 2023 United States bank failures, First Republic Bank's credit rating was downgraded by both Fitch Ratings and S&P Global Ratings. The agencies cited concerns about the bank's high proportion of uninsured deposits from affluent clients, who are considered more likely to withdraw their funds in times of uncertainty, and a loan-to-deposit ratio of 111%, indicating that the bank had lent out more money than it held in customer deposits.
March 16, 2023: $30 Billion Deposit from Eleven American Banks
In an effort to stabilize First Republic Bank and address concerns about its financial health, eleven major American banks, including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and Truist Financial, deposited a combined $30 billion into the bank on March 16, 2023.
May 1, 2023: First Republic Bank Seizure and Sale
On May 1, 2023, amidst the 2023 United States banking crisis, First Republic Bank was closed by the FDIC and its assets were sold to JPMorgan Chase.