The share price of First Republic Bank is under scrutiny as deposits decline by more than $100 billion.
Following the recently released quarterly data, First Republic Bank’s share price experienced a significant decline
Tuesday’s pre-market session saw a 20% decline in the price of First Republic Bank’s stock. The dramatic drop in First Republic Bank’s share price is a result of the recently released quarterly earnings. The majority of First Republic Bank’s losses in the most recent quarter—more than $100 billion—occurred following the collapse of the Silicon Valley Bank.
On Monday, First Republic Bank (FRC) closed 12% higher, but today is a very different story for the bank with a $2.61 billion market worth.
Customers’ deposits at First Republic Bank totaled 176 billion as of or for the quarter that ended on December 31, 2022. As of or for the Quarter Ended March 31, 2023, the deposit base decreased to $104 billion, which includes $30 billion in time deposits obtained from significant U.S. banks. Over $100 billion in deposits were lost by First Republic Bank in the space of three months.
- Over the previous year, revenues decreased by 13.4% to $1.2 billion.
- It decreased 19.4% to $923 million in net interest income. (1) Net income decreased by 32.9% to $269 million.
- Earnings per share after dilution of $1.23 were down 38.5%.
- The book value per share increased 10.4% to $76.97.
- The net interest margin dropped from 2.45% in the previous quarter to 1.77% this one. (1) The efficiency ratio increased to 70.4% from 63.9% in the previous quarter.
Capital Status and Creditworthiness
- Leverage on Tier 1 was 8.25 percent.
- The percentage for Common Equity Tier 1 was 9.32%.
- 06% of total assets were non-performing assets.
- The net recoveries totaled $2,000,000.
Money Management
- Wealth management assets increased by 5.6% year over year to $289.5 billion.
- Revenues from wealth management increased by 0.7% to $223 million.
Account Statement
- On a yearly basis, loans increased by 22.6% to $173.3 billion.
- Deposits totaled $104.5 billion, a 35.5% decrease. (2) Loans increased by $101.2 billion to $106.7 billion.
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