JPMorgan Chase will shutter 21 branches of First Republic Bank by the end of 2023, representing about a quarter of the bank's 84 branches in eight states. Chase acquires First Republic Bank as a part of a government backed deal when regulators seized First Republic Bank in May, according to a Reuters report.

Chase has informed nearly 1,000 employees that they will lose their jobs, while some have been offered temporary roles. Almost 100 employees will be offered six-month transition assignments, and following that they can apply for other roles at JPMorgan, which has 13,000 vacancies.

"These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office," a Chase spokesperson told Reuters.

First Republic lost $100 billion deposits in March, the same month that Silicon Valley Bank collapsed during a major deposit run. In May, Chase officially acquired $92 billion in deposits and $203 billion in loans and securities from First Republic Bank.

When CEO Jamie Dimon was asked during an annual shareholder meeting if Chase would acquire more struggling banks, he said that situation was "unlikely."

Copyright © 2023 Networld Media. All rights reserved., source Industry News