First Republic Bank

About

First Republic Bank was a California-based financial institution founded in 1985 by Jim Herbert. It specialized in providing banking services to high-net-worth individuals, offering private banking, business banking, real estate lending, and wealth management solutions. The bank operated in several states, including California, New York, Massachusetts, and Florida, focusing on personalized services for its affluent clientele. First Republic's business model relied heavily on deposits from wealthy clients to fund large loans, particularly in residential real estate. However, it faced significant challenges due to a high loan-to-deposit ratio and exposure to interest rate risks. Following the collapse of Silicon Valley Bank, First Republic experienced a massive withdrawal of deposits, leading to its eventual seizure by the FDIC and acquisition by JPMorgan Chase in May 2023. Despite its challenges, the bank was known for its comprehensive financial services and client-centric approach.