JPMorgan to close 21 First Republic Bank branches

JPMORGAN will shut 21 branches of First Republic Bank by the end of the year as it integrates the failed lender into its operations, a JPMorgan spokesperson said on Thursday (Jun 1).

The locations account for about a quarter of First Republic’s 84 branches across eight states. The lender, which was the largest to collapse since the 2008 financial crisis, was seized by regulators in May and sold to JPMorgan.

“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” the spokesperson said.

About 100 employees who are affected by the branch closures will be offered six-month transition assignments. After that, they will be eligible to apply for other roles at JPMorgan, which currently has 13,000 vacancies.

Last week, nearly 1,000 employees were notified that they would lose their jobs, according to a source familiar with the situation, while some others have been offered temporary roles for periods ranging from three months to a year.

JPMorgan is the largest US lender, with more than 296,000 employees and 4,800 branches. It plans to invest in opening more locations while also expanding its digital offerings, executives told investors last month. REUTERS

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL