Updates on Silicon Valley Bank and First Republic Bank

Silicon Valley Bank now a division of First Citizens Bank

On March 27, 2023, First Citizens Bank entered into an agreement with the FDIC to purchase Silicon Valley Bridge Bank (the temporary institution that was created following the failure of Silicon Valley Bank). This means that in Massachusetts, Silicon Valley Bank is now called Silicon Valley Bank, a Division of First Citizens Bank.

IOLTA customers should not see any material impact from this change in the short term, as the bank continues to operate with the same staff, products, and services as before the acquisition. IOLTA accounts are continuing to be handled in the same way and there is no need for lawyers or law firms to do anything with their IOLTA accounts. At some point, First Citizens may integrate Silicon Valley into its operations, but we do not have any information on the timing or extent of any potential future integration.

Based on prior mergers, changes are unlikely for the balance of 2023. Here is the bank’s FAQ on the acquisition: Silicon Valley Bank Client FAQs. We do not expect the transition, if or when it happens, to present any difficulties for Massachusetts lawyers.

First Republic Bank acquired by JP Morgan Chase

On May 1, 2023, JP Morgan Chase acquired a majority of the assets of First Republic Bank from the FDIC.
Information on the acquisition from the bank can be found here: First Republic JPMC Message.

JP Morgan Chase was an approved Massachusetts IOLTA institution prior to this acquisition, and continues to be authorized to hold Massachusetts IOLTA accounts. There is nothing lawyers need to do with their First Republic Bank IOLTA accounts because of this acquisition. Staff, products, and services appear to be unchanged for the time being, although it is expected in the future accounts will be integrated into JP Morgan Chase. Similar to Silicon Valley, we do not expect this transition to present any difficulties for Massachusetts lawyers.

Lawyers with any concerns or that experience any problems related to the above banking mergers are encouraged to reach out to your banking representative, or to the IOLTA Committee at 617-723-9093.

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