First Republic Bank released its first-quarter financial results, which revealed a 40% decline in deposits compared to the end of 2022 in the wake of the recent banking crisis.
First Republic reported that its deposits totaled $104.5 billion at the end of March – down 35.5% year over year and a drop of 40.8% compared to Dec. 31, 2022. That figure includes the
in uninsured deposits from 11 of the largest U.S. banks that were provided to stabilize the bank amid the crisis in March.The bank noted that it began "experiencing unprecedented deposit outflows" following Silicon Valley Bank’s collapse in March. exacerbated by a large base of uninsured deposits in excess of the Federal Deposit Insurance Corporation’s $250,000 threshold and over-exposure to interest rate risk from long-term Treasury securities.
In the wake of the turmoil, First Republic is moving to "increase insured deposits, reduce borrowings from the Federal Reserve Bank, and decrease loan balances to correspond with the reduced reliance on uninsured deposits." As of March 31, First Republic had an estimated $19.8 billion in uninsured deposits, or 27% of total deposits, when excluding the $30 billion in uninsured deposits from other banks. When including the capital infusion from other banks, uninsured deposits represented about $49.8 billion of the $104.5 billion in total deposits, or about 48% of the deposit base.
At the end of last year, First Republic had about $118.8 billion in uninsured deposits, which made up about 67% of its total deposits. For comparison, Silicon Valley Bank had uninsured deposits that made up more than 93% of its total deposits at the end of 2022 before the bank run began.
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