First Republic Bank experienced a significant decrease in deposits this year, as customers withdrew more than $100 billion amid financial sector concerns (NYT)(BBC)(Guardian)(Reuters)(FT)(CBS). The regional bank had already received a $30 billion lifeline from big banks last month, but depositors and investors remained anxious about its stability. First Republic Bank has stated that deposits have stabilized since the tumble, which was worse than expected by Wall Street (CNBC). The bank also revealed that it lost $72 billion in deposits during the first quarter, and it expects to slash up to 25% of its workforce in the near future (Yahoo Finance)(CNN).
Wider turmoil in the banking industry and the collapse of two regional banks in April have shaken confidence in smaller institutions, placing First Republic Bank under increased scrutiny (Guardian). The bank’s shares sank by more than 20% after the closing bell on Monday, once the tumble in deposits was disclosed (Reuters).
As First Republic Bank continues to explore its options, bond prices have suggested a difficult road ahead for the bank as it prepares to release its first-quarter results (MarketWatch). Despite this turbulence, First Republic Bank remains one of the largest and most longstanding banks in the United States, with over 80 branches throughout the country (First Republic Bank).
