J.P. Morgan Chase & Co.'s takeover of beleaguered First Republic Bank will add just over $1 billion to its overall retirement plan assets.
The New York-based banking giant announced Monday it had purchased the San Francisco-based First Republic, whose well-documented recent free fall included an injection of $30 billion from 11 U.S. banks that delayed the collapse.
J.P. Morgan Chase said in a news release they acquired the substantial majority of First Republic's assets from the Federal Deposit Insurance Corp., which includes about $173 billion in loans and the assumption of about $92 billion in deposits including $30 billion of large bank deposits, which will be repaid following the closing of the acquisition or eliminated in the consolidation of assets.
As of Dec. 31, 2021, the First Republic Bank 401(k) Plan had $1.1 billion in assets, according to the bank's most recent Form 5500 filing. As of that date, the record keeper of that plan was Vanguard Group.
As of that same date, J.P. Morgan Chase had a total of $42.5 billion in 401(k) plan assets, according to its most recent 11-K filing with the SEC, with Empower Retirement as its record keeper.
J.P. Morgan Chase did not say in the news release how it might assume or merge First Republic's retirement plan assets.
Samantha Wong, senior benefits analyst at First Republic and administrator of its 401(k) plan, could not be immediately reached for further information.
There is no record of First Republic sponsoring any defined benefit plan assets. As of Dec. 31, J.P. Morgan Chase had a total of $19.9 billion in global defined benefit plan assets, according to its most recent 10-K filing.
In March, Sweden's biggest pension fund, Alecta, announced it had sold all of its shares in First Republic Bank at a loss of 7.5 billion Swedish kronor ($726 million).
J.P. Morgan Chase spokesman Joseph Evangelisti could not be immediately reached for further information.