First Republic Bank Deposits Plummet More Than $100B, Shares Tumble Over 27%
First Republic Bank’s deposits fell by more than $100 billion in the first quarter and said it was exploring options including restructuring its balance sheet, overshadowing better-than-expected profits and sending its shares down more than 27% on Tuesday.
Deposits fell to $104.47 billion from $176.43 billion in the fourth quarter despite the lender getting a $30 billion lifeline in combined deposits from Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
Excluding the help from major banks, the decline in deposits was almost $102 billion.
The results mark the most important quarter for the troubled bank as it prepares to increase insured deposits, cut borrowings from the Federal Reserve and loan balances, while aiming to lay off 20%-25% of its employees in the second quarter.
First Republic came into focus after Silicon Valley Bank and Signature Bank collapsed last month, sending tremors throughout US regional banks and prompting customers to move billions of dollars to bigger institutions.
“With the closure of several banks in March, we experienced unprecedented deposit outflows,” said Neal Holland, the chief financial officer.