Silicon Valley Bank ranked second in the US for just over a month. First Republic Bank a California lender that catered to wealthy customers knocked the bank off its top spot.
First Republic was taken over by the Federal Deposit Insurance Corp. on Monday morning after it failed to repair the damage caused by a flood in customer withdrawals, and falling asset prices. After weeks of talks, the US regulator reached an agreement with JPMorgan Chase & Co. for the bank to be taken over by the company’s assets, including $173 billion in loans, $30 billion in securities and $92 billion deposits.
First Republic’s 229 billion assets on April 13 places it behind Washington Mutual Inc.. collapsed with $307 billion of such holdings in 2008 and total deposits of $288 billion. The FDIC had seized Seattle-based company’s banking operations at that time and sold them to JPMorgan in 2008 for $1.9 billion.
Three of the largest FDIC failures in this century have occurred over the last few weeks, with the collapses at Silicon Valley Bank and Signature Bank early in March. Silicon Valley Bank’s assets were $167 billion at the time of failure.