The U.S. Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic under receivership imminently, a person familiar with the matter said on Friday, Azernews reports with reference to Reuters.

The U.S. banking regulator has decided that the troubled regional lender's position has deteriorated and there is no more time to pursue a rescue through the private sector, the source said, requesting anonymity because the matter is confidential.

First Republic and FDIC representatives did not immediately respond to requests for comment.