First Republic bank is expected to close its doors in 2019, the first bank in the United States to announce its closure, as the company struggles with a $2.5 billion loan to support the struggling midwest branch network.
First Republic has been one of the top-performing U.S. banks since the financial crisis.
The bank is owned by the family of former President Donald Trump and was one of his biggest donors, giving nearly $25 million over four years to help the president win reelection in November.
In an announcement on Thursday, the bank said it is shutting down the branches at its two branches in Minnesota and Indiana.
The decision to close all of the branches comes as the financial institution faces a $500 million loan that was approved in December.
The closure is the latest in a series of bank closures across the country in recent years, including Wells Fargo and Capital One.
First republic is the third-largest bank in America and a leader in the U.K. First American, the parent company of First Republic, is a subsidiary of Deutsche Bank AG.
In 2019, First Republic plans to pay off a $1.8 billion loan for the Midwest branch network, which has suffered from underfunding, delays and understaffing.
First quarter 2018 revenue was $1,918 million, compared to $1 billion in 2018, according to the company.
First Nation Bank of Minneapolis and First Nation Community Bank of Sioux Falls are among the remaining branches.
First United Bank, which also owns First Republic and is in the process of selling it, said in a statement on Thursday that it is closing two branches, with the majority of the branch network remaining intact.
First Unions Bank is closing its first branch in Minnesota, while First Nation United Bank is shutting its second branch.
FirstUnited Bank said in its statement that the two closures are necessary to address the bank’s financial condition and the company’s commitment to providing high-quality service and a stable financial environment for all customers.
The First Republic branch network was founded in 1949 and spans parts of three states and includes about 1,600 branches in the midwest, the Midwest and the Northeast.
In a statement, First Unisons Bank said that it expects to close the remaining First Republic branches in 2019.
First Union Bank is also closing branches in two states, while the bank in Sioux Falls said it will close a branch.
Bank of America announced in January that it would close all three branches, while Chase announced in May that it will shut down its Minnesota branch in 2019 and shut down all its branches in Wisconsin.
Wells Fargo announced last month that it was closing all of its branches, except for its in-person branch.
Capital One announced in December that it planned to close three branches.