PNC Financial Services Group Inc (NYSE:PNC) shares are trading lower Monday after JPMorgan Chase & Co (NYSE:JPM) acquired the assets of First Republic Bank (NYSE:FRC). PNC was rumored to be a front runner for the acquisition.
What Happened: JPMorgan won a weekend auction for First Republic over PNC and other bidders. JPM acquired a substantial majority of assets and assumed deposits and other liabilities of First Republic from the Federal Deposit Insurance Corporation (FDIC).
“Our government invited us and others to step up, and we did. 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,” said Jamie Dimon, chairman and CEO of JPMorgan.
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.
See Also: Cramer Thinks JPMorgan May Be On The Moon But First Republic Shareholders ‘Ain’t Got Nothing’ To Celebrate
PNC Price Action: PNC shares were down 3.26% at $126 at the time of writing, according to Benzinga Pro.
Photo: Tony Webster from Flickr.
