Jp Morgan Chase & Co. · NYSE:JPM
Jp Morgan Chase & — Merger or Acquisition (May 2023)
11 slides from Jp Morgan Chase &'s merger presentation, May 1, 2023
Slide 1: JPMorgan Chase acquires substantial majority of assets and assumes certain liabilities of First Republic Bank
JPMorgan Chase acquires substantial majority of assets and assumes certain liabilities of First Republic Bank May 1, 2023
Slide 2: Fortress principles position us to invest through cycles – organically and inorganically
Fortress principles position us to invest through cycles – organically and inorganically FORTRESS BALANCE SHEET¹ CET1 capital ratios² Standardized RWA³ $1.7T Standardized 13.8% | Advanced 13.9% Cash and marketable securities⁴ $1.4T Total Loss-Absorbing Capacity² $488B Average loans $1.1T PROVEN OPER
Slide 3: Transaction overview
Transaction overview KEY TRANSACTION DETAILS1 BALANCE SHEET ($B)1 JPMorgan Chase acquired substantial majority of assets and assumed certain Pre- Post- liabilities of First Republic Bank from the FDIC closing closing² $173B of loans and $30B of securities Assets Approximately $92B of deposits
Slide 4: Transaction assumptions and pro forma impact
Transaction assumptions and pro forma impact >$500mm Transaction assumptions net income accretion¹ One-time gain of $2.6B post-tax at closing, not including expected restructuring costs of Accretive to $2.0B over the course of 2023 and 2024 tangible book value per share Fair value marks on a
Slide 5: Transaction rationale
Transaction rationale Increases penetration with U.S. high net worth clients Accelerates key Accelerates U.S. wealth strategy by adding J.P. Morgan wealth centers in attractive locations growth opportunities Complementary to JPMorgan Chase’s #1 business bank >$500mm net income accretion1 Fin
Slide 6: Transaction complements J.P. Morgan and Chase franchises, particularly in wealth
Transaction complements J.P. Morgan and Chase franchises, particularly in wealth FIRST REPUBLIC HAS PRIME LOCATIONS IN CORE JPMORGAN CHASE MARKETS¹ HIGH-QUALITY LOAN PORTFOLIO² JPMorgan Chase branches Other First Republic branches CRE 8% Capital call 6% lines and business 12% MT WA $172.9B ME 60% VT
Slide 7: Comprehensive due diligence to support transaction assumptions and integration plan
Comprehensive due diligence to support transaction assumptions and integration plan Due diligence Integration plan Senior management led due diligence process across business and functional areas First Republic clients may bank as usual, and feel confident that their deposits are backed by Ove
Slide 8: Key takeaways
Key takeaways 1 Fortress principles allow us to participate in attractive opportunities for shareholders as well as play a constructive role in the banking landscape Transaction is complementary to J.P. Morgan and Chase franchises 2 Accelerates growth initiatives in U.S. wealth strategy Adds prime l
Slide 9: Notes on non-GAAP financial measures
Notes on non-GAAP financial measures 1. Tangible common equity (“TCE”), return on tangible common equity (“ROTCE”) and tangible book value per share (“TBVPS”), are each non GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred
Slide 10: Additional notes on slides 1 and 5
Additional notes on slides 1 and 5 Slide 1 – Fortress principles position us to invest through cycles – organically and inorganically 2. Represents the estimated Basel III common equity Tier 1 (“CET1”) capital and ratio and Total Loss-Absorbing Capacity for the current period. Reflects the Current E
Slide 11: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase & Co.’s management and are subject to significant risks an