First Republic shares sink to new low in survival fight
First Republic Bank's market value dipped below $1 billion for the first time Wednesday
Not a single bank can withstand this: Andreas Steno
Steno Research CEO Andreas Steno reacts to First Republic Banks performance on Making Money.
Shares for First Republic Bank dropped to an all-time low on Wednesday as the San Francisco-based bank fights for survival and is seeking a lifeline after becoming engulfed in the banking crisis that hit regional lenders following the collapse of Silicon Valley Bank (SVB).
A person walks past a First Republic bank branch in Manhattan on April 24, 2023 in New York City. The bank's shares have been in a free fall this week after the lender revealed it lost 40% of deposits amid the regional banking crisis. (Photo by Spencer Platt/Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FRC | NO DATA AVAILABLE | - | - | - |
First Republic's market value fell below $1 billion for the first time ever, plummeting to around $886 million amid doubts that the troubled lender can be saved.
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Wednesday's selloff – which triggered halts in trading multiple times – follows a free fall that began Monday after the closing bell following the bank's revelation that its deposits dropped 40% in the first quarter as panicked customers pulled their funds amid fears of a growing crisis when SVB was seized by regulators last month.
FDIC representatives speak with customers outside the Silicon Valley Bank headquarters in Santa Clara, California, March 13, 2023. (REUTERS/Brittany Hosea-Small / Fox News)
First Republic reported that its deposits totaled $104.5 billion at the end of March – down 35.5% year over year and a drop of 40.8% compared to Dec. 31, 2022. That figure includes the infusion of $30 billion in uninsured deposits from 11 of the largest U.S. banks that were provided to stabilize the bank amid the crisis in March.
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The Federal Deposit Insurance Corporation swooped in to take control of SVB amid its run on the bank, but regulators were reportedly reluctant to take the same actions to seize First Republic as of Wednesday morning.
A person walks past the Park Avenue location of the First Republic Bank, in New York City March 10, 2023. (Reuters/David 'Dee' Delgado / Reuters Photos)
Citing sources, CNBC reported Wednesday that the U.S. government is currently unwillingly to step in and begin rescuing First Republic.
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Meanwhile, a source familiar told Reuters the bank is looking at its options, including selling assets.
Reuters contributed to this report.