Yesterday, shares of First Republic fell more than 49% to a record low of $8.10 per share at closing as investors questioned how the bank would stabilize itself after losing about 40% of its deposits during the first quarter. The bank’s year-to-date losses have now surpassed 90%.
The decline followed the release of the bank’s first-quarter earnings report, which showed that First Republic’s deposits shrank by 40.8% during the quarter as customers pulled out their money following the collapse of Silicon Valley Bank.
Related: The Silicon Valley Bank Collapse: How You Can Protect Yourself
First Republic’s quarter-end deposits included a $30 billion infusion from 11 larger banks that were meant to stabilize the broader financial system.
In a press release, the bank said that it was “pursuing strategic options” to reshape its balance sheet after the massive deposit flight. The next few days are crucial for First Republic’s future, as other banks and federal officials continue looking for solutions to stabilize the situation.
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Market Recap Week of 4/17/2023 Through 4/21/2023