• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick First Republic bank says deposits tumbled 40% to $104.5 billion in the first quarter
Editor's Pick

First Republic bank says deposits tumbled 40% to $104.5 billion in the first quarter

by April 26, 2023
by April 26, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Troubled regional bank First Republic said Monday that its deposits fell 40.8% to $104.5 billion in the first quarter, which saw the collapse of two other mid-sized banks and sparked fear from customers about widespread bank failures.

The deposit flight at First Republic was worse than Wall Street expected, with analysts estimating the figure at the end of the first quarter to be about $145 billion, according to the consensus estimate from FactSet’s StreetAccount. Analysts’ deposit estimates ranged from $100 billion to $206 billion, according to FactSet.

First Republic said Monday that deposit flows have since stabilized.

“Deposit activity began to stabilize beginning the week of March 27, 2023, and has remained stable through Friday, April 21, 2023. Total deposits were $102.7 billion as of April 21, 2023, down only 1.7% from March 31, 2023, primarily reflecting seasonal client tax payments that occur each April,” the release said.

The deposit figure for the end of March included $30 billion in time deposits from 11 larger banks that was announced on March 16 in an attempt to stabilize the broader banking system. If those deposits were excluded, First Republic’s deposits would have fallen by more than 50%.

“I would also like to reiterate our appreciation for the group of America’s largest banks who placed $30 billion in uninsured deposits with us, as well as for our state and federal regulators who have continued to provide us with expert support,” CEO Michael Roffler said on the earnings call.

Roffler also said that First Republic has maintained over 97% of “client relationships” from the start of the quarter despite the outflows. He did not provide further detail on that point, and took no questions on the call.

As part of its earnings release, First Republic announced that it was cutting expenses through reductions in executive compensation, condensing office space and cutting head count by 20% to 25% in the second quarter.

First Republic also said in the release it is “pursuing strategic options to expedite its progress while reinforcing its capital position.” The shares, which jumped 12% during regular trading, were off about 20% in extended trading.

This post appeared first on NBC NEWS
You Might Also Like
  • Frustrated pharmacists could go on strike in rare protest
  • Target launches paid membership program as it chases new revenue streams
  • How new professional sports leagues like SailGP are putting women at the fore
  • The plane that crashed in South Korea is one of the world’s most popular aircraft
Share
0
FacebookTwitterPinterestWhatsapp

previous post
First Republic’s stock sinks as analysts monitor banking sector stress, despite some improvements
next post
UPSidedown Earnings Sink Stocks

You may also like

Digital health companies pummeled by Wall Street in 2024 as...

December 26, 2024

Embraer CEO says jet maker studying possibilities for a new...

October 21, 2024

American Airlines scraps traditional frequent flyer award chart in dynamic...

April 8, 2023

Why buying a house is still financially beneficial even with...

November 12, 2023

S&P 500, Nasdaq close at all-time highs ahead of inflation...

July 10, 2024

The Fed may soon cut interest rates. That could make...

July 11, 2024

Are consumers pulling back on spending? It depends which CEO...

May 21, 2024

Amazon.com’s Ring will pay $5.8 million after employees spied on...

June 2, 2023

Trial of former FTX head Sam Bankman-Fried set to begin...

October 2, 2023

Stanley tumbler ‘quenchers’ maker is being sued over lead claims

February 23, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Collapsed crypto exchange Mt. Gox is...

    July 3, 2024

    Growing chorus calls for Lululemon to...

    June 10, 2023

    Jenny Craig will be revived by...

    July 6, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here