First Republic Bank (NYSE:FRC) announced that its first-quarter 2023 revenue fell 13.4% to $1.2 billion, while its diluted earnings per share for the period dropped 38.5% to $1.23, as the company experienced unprecedented deposit outflows following the collapse of two other mid-sized banks that sparked fear from customers.
The private business banker and wealth manager noted that deposits plunged 40% to $104.5 billion in the quarter, worse than the $145 billion FactSet consensus estimate, although the company said that figure has stabilized since.
“With the stabilization of our deposit base and the strength of our credit quality and capital position, we continue to take steps to strengthen our business,” First Republic Bank (NYSE:FRC) CEO Mike Roffler and executive chairman Jim Herbert said in a joint statement.
The deposit figure for the end of March included $30 billion in time deposits from 11 larger banks announced on March 16 in an attempt to stabilize the broader banking system, CNBC reported.
First Republic also said it was cutting expenses through reductions in executive compensation, condensing office space and cutting its headcount by 20% to 25% in the second quarter.
Shares of First Republic Bank (NYSE:FRC) fell 17% in after-hours trading after gaining 12% in Monday’s regular session.
Contact Sean at sean@proactiveinvestors.com