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.
Without the $30 billion of deposits provided by big banks, the decline in deposits would have been almost $102 billion.
The lender earned $1.23 a share in the first three months ended March, comfortably above the 85 cents per share analysts estimated for the quarter, according to Refinitiv data. This will discourage potential buyers of the bank because "a large mortgage portfolio at incredibly low rates generating little revenue is not very attractive," said Robert Conzo, CEO of New York-based investment advisory firm, The Wealth Alliance.
The bank's choices are limited when it comes to selling assets. Divesting the mortgage arm would likely result in losses, while selling the wealth management unit would get rid of one of its most lucrative businesses, said David Smith, an analyst at Autonomous Research.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
First Republic Bank deposits tumble more than $100 billion as it explores options By Reuters*FIRST REPUBLIC BANK LOST OVER $100 BILLION IN CUSTOMER DEPOSITS IN Q1 FOLLOWING SILICON VALLEY BANK'S COLLAPSE $FRC
Les mer »
First Republic Bank deposits tumble more than $100 bln as it explores optionsFirst Republic Bank shares sank more than 20% after the closing bell on Monday after the lender said deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet.
Les mer »
First Republic Lost $100 Billion in Deposits in Banking PanicBreaking: First Republic said it lost more than $100 billion in customer deposits following Silicon Valley Bank’s collapse. Shares fell more than 20% after hours.
Les mer »
First Republic clients pulled $100 billion in deposits during banking panicCustomers of First Republic Bank pulled more than $100 billion in deposits out of the bank during last month's crisis, as fears swirled that it could be the third bank to fail after the collapse of Silicon Valley Bank and Signature Bank.
Les mer »
First Republic bank says deposits tumbled 40% to $104.5 billion in the first quarterThe lender said things have stabilized since last month's banking emergency, but it will still reduce headcount by 20% to 25% in the second quarter.
Les mer »
James Avery's first-ever Fiesta medal now selling for more than $100 on eBayJames Avery recently released its first-ever Fiesta medal as a giveaway to the first 100 customers at its various locations, and the medal is now one of Fiesta's most expensive and sought-after pin-ons.
Les mer »