First Republic Bank Stock Crashed on Wall Street

The shares of First Republic Bank (FRB), one of the U.S. banks hardest hit by the recent financial crisis, fell 15 percent in pre-opening electronic trading on Wall Street on Wednesday.

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At the end of trading on Tuesday, its shares fell almost 50 percent, after this institution released its accounts, which show a huge loss of deposits. Earlier, on Monday, this San Francisco-based institution presented figures on its recent financial performance.

Its latest report shows a substantial deterioration in business in the first quarter (Q1) following last month's banking crisis leading to the closure of Silicon Valley Bank (SVB) Bank and Signature Bank.

"With the closure of several banks in March, we experienced unprecedented deposit outflows. We are working to restructure our balance sheet and reduce our expenses and short-term borrowings," said Neal Holland, chief financial officer of First Republic Bank.

The bank's financial results showed that its revenues in Q1 was US$1.2 billion, 15.9 percent lower from the previous quarter and 13.4 percent less than the same period of 2022.

The net interest income in Q1 was US$923 million, down 21.4 percent quarter on quarter and 19.4 percent year on year, respectively. Particularly, the net income in Q1 was US$269 million with a 32.9 percent plunge compared to the same period last year.

As of March 31, First Republic Bank had US$104.47 billion of deposits, down 40.8 percent from Dec. 31, 2022, though it had received US$30 billion of uninsured deposits on March 16 from 11 U.S. large banks, which aimed to enhance liquidity and confidence in this bank.