Stock First Republic Bank: What Most People Get Wrong About the Aftermath

Honestly, if you still have stock First Republic Bank (the old ticker was FRC, now it’s FRCB) sitting in your brokerage account, it probably feels like a ghost. A digital reminder of that chaotic spring in 2023 when the banking world seemed to be melting down. You see that tiny, stagnant number—maybe it’s $0.002 or $0.01—and you wonder if there’s some secret "Sears-style" comeback story waiting to happen.

There isn't.

Let’s be real. The bank is gone. It didn't just stumble; it was seized, stripped, and sold for parts. But for some reason, people are still trading the "Expert Market" ticker FRCB today in 2026. It’s weird. Why? Mostly because some traders hope for a "receivership dividend," while others just don't know how to let go.

The Brutal Reality of FRCB Today

When JPMorgan Chase (JPM) swooped in on May 1, 2023, they didn't buy the company. They bought the assets. They took the loans, the shiny branches in Palo Alto, and the deposits. They explicitly left the corporate debt and the preferred stock behind. This is the part most people get wrong. You don’t own a piece of a "recovering bank." You own a piece of a legal shell that owes billions more than it possesses.

According to the latest FDIC receivership balance sheets from late 2025, the "First Republic Bank" entity has a net worth deficit of roughly $16.1 billion.

Basically, it’s a hole in the ground.

In the world of bankruptcy and receivership, there is a very strict "pecking order" for who gets paid. It looks like this:

1. Administrative Liabilities: The lawyers and accountants cleaning up the mess.
2. The FDIC: They get paid back for the money they used to protect depositors.
3. Uninsured Depositors: (In this case, JPM took them on, so this is mostly settled).
4. General Creditors & Bondholders: People the bank owed money to.
5. Stockholders: That’s you.

You are fourth in line, but the line is a mile long and the bank's "vault" is empty. The FDIC subrogated claim alone is over $17 billion. Until that is paid back to the government, common stockholders get zero.

Why the Stock First Republic Bank Still "Trades"

You might look at your screen and see FRCB moving up 10% on a random Tuesday. Don't get excited. This is what we call "delusional liquidity."

Because the stock was moved to the Expert Market, it's essentially in a dark corner of the over-the-counter (OTC) world. Most retail brokers won't even let you buy more; they only let you sell to "liquidate" the position. The trades you see are often just professional firms or high-risk gamblers playing a game of musical chairs with fractions of a penny.

The Misconception of the "JPMorgan Recovery"

Some folks think that because Jamie Dimon mentioned First Republic is performing well for JPMorgan, the old stock should rise.

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Nope.

JPMorgan Chase integration is complete. The branches are Chase branches. The wealth managers are Chase employees. The profits they make from those old First Republic loans stay with JPMorgan. There is no legal mechanism for those profits to flow back to the holders of the old stock First Republic Bank. That bridge was burned the second the California Department of Financial Protection and Innovation pulled the plug.

Is There Any Tax Silver Lining?

This is actually the most common reason people still talk about the stock. If you’re holding onto these shares, they are a "realized loss" waiting to happen.

• Worthless Securities: Under IRS rules, if a security becomes totally worthless, you can treat it as if you sold it for $0 on the last day of the year.
• The Problem: Because FRCB still technically "quotes" at $0.001, some CPAs argue it isn't "technically" worthless yet.
• The Move: Many investors "sell to open" or use a "sell for a penny" service just to get the trade confirmation so they can finally write off the loss against their capital gains.

If you lost $50,000 on FRC back in 2023, that’s a massive tax shield. But you can't use it until you officially exit the position.

What Actually Happened to the Wealthy Clients?

First Republic’s whole "vibe" was high-touch service for the rich. They gave out 2% mortgages to people with $10 million in the bank. When the bank failed, those clients didn't lose their houses. JPMorgan took the loans. If you had a mortgage with First Republic, you probably just pay Chase now.

The "contagion" that people feared in 2023 was largely contained by the JPMorgan deal. But the equity wipeout was total. It’s a stark lesson: a bank can have the "best" clients in the world and still die if the math of interest rates doesn't work out.

Actionable Steps for Holders

If you are staring at a dead position of stock First Republic Bank, here is the play:

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1. Check your "Sell" ability: See if your broker (Schwab, Fidelity, etc.) allows you to place a limit order to sell your FRCB shares. Even if you get $1.00 for the whole lot, the trade confirmation is your ticket to a tax deduction.
2. Consult a Tax Pro: If you can't sell because the volume is zero, ask about "abandoning" the security. There are specific IRS forms for this.
3. Stop "DCA-ing": Do not "average down." I’ve seen people on forums thinking they are geniuses for buying a million shares for $500. They aren't. They are buying a lottery ticket for a drawing that already happened two years ago.
4. Watch the FDIC DRRIP: If you're a nerd for the details, the FDIC's "Dividends from Regional Receiverships" portal (DRRIP) occasionally updates the balance sheet. It’s a grim read, but it will show you exactly how many billions stand between you and a single cent of recovery.

The story of First Republic is a closed book. The ticker FRCB is just a lingering footnote. Understanding that the legal entity is separate from the physical bank assets is the first step in moving on from this trade.

To clean up your portfolio, contact your broker's fixed-income or OTC desk and ask for a "worthless security liquidation." Most will do it for a flat fee or even for free just to get the "trash" off their books. This allows you to claim the capital loss on your next tax filing and finally turn the page on one of the wildest banking collapses in American history.