JTC Acquires First Republic Trust Company of Delaware from JP Morgan Chase in $21m Deal

JTC, a leading fund, corporate, and private wealth services provider, is acquiring First Republic Trust Company of Delaware from JP Morgan Chase in a $21 million all-cash deal.

JTC, a leading provider of fund, corporate, and private wealth services based in Jersey, has announced its plans to acquire First Republic Trust Company of Delaware (FRTC-DE) from JP Morgan Chase in a significant all-cash transaction valued at $21 million. This strategic move by JTC is seen as a key step in expanding its presence in the US private client services market.

Describing the acquisition of FRTC-DE as "highly complementary" to its existing portfolio, which includes South Dakota Trust Company (SDTC) and New York Private Trust Company (NYPTC), JTC aims to leverage the strengths of FRTC-DE to enhance its private client services division. With FRTC-DE bringing in assets worth $9 billion under administration, JTC sees this as an opportunity to further solidify its position in the US market.

The deal, subject to customary closing conditions, will see FRTC-DE integrated into JTC's private client services division, offering a wide range of services including private office solutions, corporate services, accounting, regulatory reporting, and family governance services. This move is expected to enable JTC to expand its market share and strengthen its foothold in the US private client services sector.

JP Morgan Chase had acquired First Republic Trust Company as part of its takeover of First Republic Bank last year, paying $10.6 billion to the US Federal Deposit Insurance Corporation (FDIC) for the purchase. Despite the challenges posed by the acquisition, FRTC-DE managed to generate revenues of $10.2 million and a net income of $4.5 million by the end of December.

The acquisition of First Republic Trust Company of Delaware by JTC represents a strategic move to enhance its private client services division and expand its presence in the US market. With FRTC-DE's strong portfolio of assets and services, JTC is well-positioned to capitalize on the opportunities in the private client services sector.