First Republic Bank deposits tumble more than $100 billion as it explores options

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Source: Reuters

First Republic Bank deposits tumble more than $100 billion as it explores options

Mehnaz Yasmin and Nupur Anand
Mon, April 24, 2023 at 4:19 PM EDT·4 min read

(Reuters) -First Republic Bank shares sank more than 20% after the closing bell on Monday as it said deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet.

The deposit slump overshadowed profits that beat expectations for the beleaguered company, shored up through deposits from U.S. banking giants last month after two regional lenders collapsed.

San Francisco-based First Republic plans to shrink its balance sheet and slash expenses by cutting executive compensation, paring back office space, and laying off nearly 20% to 25% of employees in the second quarter, it said Monday.

The company also aims to increase its insured deposits and cut borrowings from the Federal Reserve Bank.

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Read more: https://news.yahoo.com/first-republic-bank-deposits-falls-201922849.html