The rise and fall of the First Republic Bank – A year in review
Since the beginning of 2023, First Republic Bank has experienced a tumultuous period, reflecting broader challenges in the regional banking sector. From a period of relative stability to a dramatic collapse and acquisition, here’s how the brand's perception among American consumers has progressed.
At the start of January 2023, First Republic Bank's Index score (average of Impression, Quality, Value, Satisfaction, Recommend and Reputation scores) was 1.1. The bank maintained a steady image, with scores fluctuating slightly but staying positive. However, the broader banking sector started showing signs of stress, primarily due to rising interest rates and exposure to long-term, low-interest mortgages.
On March 10, 2023, Silicon Valley Bank (SVB) was closed by California regulators, leading to a ripple effect throughout the banking industry. Two days later, Signature Bank, heavily involved in the crypto sector, was also closed by state regulators. Amidst the growing turmoil, First Republic Bank sought to reassure its clients and stakeholders. By mid-April, a $30 billion rescue package was secured from major U.S. banks like JPMorgan Chase, Bank of America, and Citigroup. Despite these efforts, Index scores began to decline, reflecting eroding consumer confidence.
On May 1, 2023, California regulators seized First Republic Bank after massive deposit outflows and mounting losses. The Federal Deposit Insurance Corporation (FDIC) took control and quickly facilitated the sale of most of the bank’s assets to JPMorgan Chase. This event coincided with a significant low point, with Index score plummeting to -5.4 on May 25 as consumer perception hit rock bottom.
Following the acquisition, JPMorgan Chase moved swiftly to integrate First Republic’s operations. On April 8, 2024, Index scores reached 2.7 - the highest it has been since January 2023.
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Methodology: YouGov BrandIndex collects data on thousands of brands every day. First Republic Bank’s Index score is the average of Impression, Quality, Value, Satisfaction, Recommend and Reputation scores. Scores are based on an average daily sample size of 2441-2836 US adults between January 1, 2023, to July 1, 2024. The figures are based on a 4-week moving average.
Cover photo credit – CNBC/ Getty Images
