FILE – A television screen displaying financial news, including the stock price of First Republic Bank, is seen inside one of the bank’s branches in New York’s Financial District, on March 16, 2023. Customers of the bank pulled more than $100 billion in deposits out of the bank during the March crisis, as fears swirled that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank.InternationalIndiaAfricaWASHINGTON (SPUTNIK) – First Republic Bank’s stock nosedived by close to 50% after depositors withdrew more than $100 billion in the past quarter amid the Silicon Valley Bank crisis. First Republic’s stock closed down 49.19% to $8.13 per share on Tuesday, a day after reporting that deposits fell by over 40%. The bank in its Q1 earnings summary said it would reduce its 7,200-person workforce by up to 25%. Analysts grew even more worried when First Republic leaders closed yesterday’s earnings call without fielding any questions.
"The conference call did not go well," Chris Marinac, an analyst at Janney Montgomery Scott, told US media on Tuesday. "I think the market didn’t like the lack of questions."
First Republic’s downward ride may not be over based on analyst reactions with some suggesting a complete failure may be near. “With still a large level of uncertainty in outcomes and expected losses beyond the next year, we recommend investors sell shares as the outlook appears largely unclear,” Citi analyst Arren Cyganovich told US outlets.
First Republic drew massive attention after Silicon Valley Bank (SVB) and Signature Bank collapsed last month, jeopardizing the trust Americans have in US regional banks and leading many customers to move millions of dollars in deposits to bigger institutions.