Troubled regional bank First Republic says that its deposits fell 40.8% in the first quarter, which saw the collapse of two other mid-sized banks.
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.
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