The San Francisco-based bank is down about 90% this year.
The path forward for First Republic after this month's banking crisis remains unclear, but Citigroup identified some possible scenarios for the embattled San Francisco-based bank. Citi Analyst Arren Cyganovich withdrew his neutral rating, old $132 price target and his financial estimates on First Republic, saying the stock now has an "under review" rating. While the bank hasn't specified its deposit outflows, Citi noted that they've been substantial.
"The acquiring bank would be required to recognize the fair value of the assets and liabilities at the time of acquisition, and the after-tax impact of the $27B of fair value unrealized losses would equate to $20.8B, which exceeds FRC's 4Q22 tangible common equity by $13.6B," Cyganovich wrote. "All in, we see a takeover without some form of government intervention to absorb some of the capital charge as an unlikely outcome," Cyganovich added.
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