The acquisition includes approximately $92 billion of deposits and majority of First Republic Bank's assets, including around $173 billion of loans and $30 billion of securities.
JPMorgan CEO Jamie Dimon says the acquisition will modestly benefit the company overall, be accretive to shareholders, and is complementary to its existing franchise.
Purchase will minimize costs to the FDIC's deposit insurance fund, estimated to be around $13 billion.
What to look for:
JPMorgan's acquisition of First Republic Bank's assets and deposits will also provide a significant amount of liquidity to help weather potential economic storms in the future.