The California Department of Financial Protection and Innovation (DFPI) said on Monday it had closed First Republic Bank and agreed a deal to sell its assets to JPMorgan Chase & Co and National Association.

DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of First Republic and said it accepted a bid from JPMorgan Chase Bank, National Association, Columbus, Ohio, to assume all deposits.

First Republic Bank is the third major US bank to fail in two months.

JPMorgan Chase Bank will take over assets

Meanwhile, the Federal Deposit Insurance Corp. said that JPMorgan Chase Bank will take over all deposits and "substantially all of the assets of First Republic Bank."

First Republic Bank's 84 branches in eight states will reopen Monday as branches of JPMorgan Chase Bank. Regulators had been working to find a way forward before US stock markets opened Monday.

San Francisco-based First Republic has struggled since the collapses of Silicon Valley Bank and Signature Bank in early March. They added to worries that the bank may not survive as an independent entity for much longer.