First Republic Bank’s stock price fell over 25% as of midday Tuesday following a Monday earnings report which showed massive deposit outflows.
The regional bank lost $102 billion of its deposits following sector turmoil in March, bringing its total deposits to $104.5 billion at the end of the first quarter of 2023, according to its earnings report. This deposit total would be significantly smaller if not for the $30 billion infusion from the largest financial institutions, including JPMorgan Chase, to save First Republic from failure.
First Republic’s quarterly profit declined one-third to $269 million from $401 million the previous year, while revenue fell 13% to $1.2 billion, according to the report.
The bank is “working to restructure our balance sheet and reduce our expenses and short-term borrowings,” finance chief Neal Holland said in a statement in the report. One cost-cutting measure will be laying off 20-25% of employees and cutting executive salaries, the bank said in an earnings call on Monday.
First Republic is discussing crafting a strategy to save itself with financial advisers and government officials that might include the sale of the bank or portions of it, or raising additional capital, according to The New York Times. The stock had risen over 10% before the report was released, though its share price has fallen over 85% since March.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.
JOIN US @NewRightNetwork on our Telegram, Twitter, Facebook Page and Groups, and other social media for instant news updates!
New Right Network depends on your support as a patriot-ran American news network. Donate now