Webster Bank was the only bank in the top 10 deposit-holders in Connecticut that registered an increase in deposits as bank customers scurried to spread their money around after the bank failures this spring, according to the latest FDIC deposit data.
Boston-based Berkshire Bank has acquired yet another former First Republic staffer, part of a campaign the bank said aims to produce more deposits for the bank over the long term.
In the deal, JPMorgan acquired 84 First Republic branches, bringing it $92 billion in deposits and $203 billion in loans and other securities.
Citizens Bank scored a significant win in the local battles to capitalize on disruption caused by SVB’s and First Republic’s failures Monday when it announced it had hired about 50 wealth managers who used to work at the latter bank.
The recent failures of a trio of midsize banks has once again raised questions about whether senior executives in the U.S. are being rewarded more for short-term gains – like rising stock prices – than for ensuring their companies’ long-term health.
While JPMorgan Chase wants to retain much of the wealth management business it acquired following First Republic Bank’s failure, the bank does not plan to continue First Republic’s low-pricing model on jumbo mortgages.
Regulators seized troubled First Republic Bank early Monday. But despite having only one Connecticut branch, it was still among Fairfield County’s top residential mortgage lenders.
Depositors at First Republic Bank pulled more than $100 billion out of the bank during last month’s crisis, as fears swirled that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank.
Treasury Secretary Janet Yellen is trying to project calm after regional bank failures, saying the U.S. banking system is “sound” but additional rescue arrangements “could be warranted” if any new failures at smaller institutions pose a risk to financial stability.
Eleven of the biggest U.S. banks Thursday announced a $30 billion rescue package for First Republic Bank in an effort to prevent it from becoming the third to fail in less than a week and head off a broader banking crisis.
Citizens Bank, M&T Bank and First Republic Bank have provided some of the initial funding for a new public-private partnership that will offer low-interest loans to Connecticut small businesses and nonprofit organizations.
Days after one of First Republic Bank’s co-CEOs took a medical leave of absence, the other co-CEO has resigned.
