JPMorgan And First Republic Bank Shares Are Moving Monday: What's Going On?

JP Morgan Chase & Co JPM shares are trading higher Monday after the bank acquired the deposits and assets of First Republic Bank FRC.

What Happened: JPMorgan won a weekend auction for First Republic. The bank acquired a substantial majority of assets and assumed deposits and other liabilities of First Republic from the Federal Deposit Insurance Corporation (FDIC). 

In a statement Monday morning, JPMorgan chairman and CEO Jamie Dimon touted the takeover as an act of support for the U.S. financial system. 

"Our government invited us and others to step up, and we did," Dimon said.  

"Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund."

Dimon noted that the acquisition will benefit JPMorgan as it further advances the company's wealth strategy and complements the bank overall. 

The acquisition includes $173 billion in loans and $30 billion in securities, as well as assumption of about $92 billion in deposits. JPMorgan expects to recognize an upfront gain of $2.6 billion and remain well capitalized with a CET1 ratio in line with its first-quarter 2024 target of 13.5%. 

Dimon and CFO Jeremy Barnum will hold a conference call with investors at 8:30 a.m. ET.

See Also: Nasdaq, S&P 500 Futures On Edge Over First Republic Failure, Tech Earnings: Analyst Pins Hopes On Fed's Next Move

JPMorgan's Morgan Health also announced a $25 million investment in Kindbody Monday morning. Morgan Health Ventures managing director Cheryl Pegus will join Kindbody's board. 

JPM Price Action: JPMorgan has a 52-week high of $144.34 and a 52-week low of $101.30.

The stock was up 4.13% at $143.95 at the time of writing, according to Benzinga Pro.

Photo: eflon from Flickr.