Shares of First Republic Bank experienced a historic drop, falling 49.38%, the lowest ever recorded for the trading of the bank's shares, CNBC reports.
The decline was triggered by news that customers withdrew over $100bn in deposits during the first quarter, causing investors to lose interest in the bank. The bank's shares have decreased by 93% since the beginning of the year.
At the end of the first quarter, First Republic Bank reported a 40% drop in deposits to $104.5bn, down from $176.4bn at the end of 2022. The bank is now exploring strategic options to rebalance its balance sheet, and other banks and federal officials are looking for solutions to stabilize it.
First Republic Bank intends to sell $50bn to $100bn in assets, such as long-term securities and mortgages, to strengthen its balance sheet, according to Bloomberg. The bank's outflow of deposits began in March 2023 due to the collapse of other banks in the US. It was also reported that loans by US banks decreased by $105bn.
Comments (0)