First Republic falls more than 40% to tape low after reporting huge deposit drop

First Republic falls more than 40% to record low after reporting massive deposit drop

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A First Republic Bank branch is imagined in Midtown Manhattan in New York City, March 13, 2023.

Mike Segar|Reuters

Shares of First Republic fell dramatically and strike a record low Tuesday, as financiers questioned how the bank would support itself after losing about 40% of its deposits throughout the very first quarter.

First Republic’s stock fell more than 40% on Tuesday, extending its year-to-date losses beyond 90%. It struck a record intraday low at $8.27 per share.

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First Republic struck a record low on Tuesday.

The decrease follows the bank’s first-quarter incomes report, which revealed that First Republic’s deposits diminished by 40.8% throughout the quarter as clients took out their cash following the collapse of Silicon Valley Bank.

First Republic’s quarter-end deposits consisted of a $30 billion infusion from 11 bigger banks that were indicated to support the wider monetary system. Excluding those funds, First Republic’s net outflows would have topped $100 billion.

The bank stated in its news release that it was “pursuing strategic options” to improve its balance sheet after the huge deposit flight. CNBC’s David Faber reported Tuesday that the next couple of days are vital for First Republic’s future as other banks and federal authorities searching for options to support the local bank.

Bloomberg News reported Tuesday that First Republic was aiming to offer up to $100 billion of loans and securities to reorganize its balance sheet.