The shares of First Republic Bank fell in trading on Wednesday by nearly 20% to $ 6.34, compared to its close in yesterday's session, as it fell by 49.4% to $ 8.10 per share, losing about $ 7.4 in one day, amid expectations that the bank will be a new victim in the current US banking crisis, while regulators did not announce the suspension of trading the stock.
This comes two days after the bank announced a decline in its deposits by 40.8% during the first quarter of 2023 on a quarterly basis, to $ 104.5 billion.
In March, the bank was hit by a massive outflow of deposits following the collapse of Silicon Valley and Signature and signs that First Republic was the next victim.
U.S. bank giants led by JPMorgan tried to rescue First Republic with a plan to inject liquidity and calm markets, but recent data on the bank's deposits exacerbated the crisis.
First Republic is the 14th largest commercial bank in the United States with total assets exceeding $212 billion (Reuters)
First Republic has suffered a cumulative loss of 90 percent since the beginning of this month amid fears that the San Francisco-based bank could fall victim to the same forces that caused the recent collapse of U.S. banks, which collapsed when customers rushed to withdraw their money.
First Republic is the 14th largest commercial bank in the United States with total assets of more than $212 billion, according to US Federal Reserve data.
A survey conducted by Anatolia for the bank's financial data shows that its bank deposits amounted to about $ 2023 billion on the eve of the banking crisis on the eighth of March 174, before a sharp downward journey began with the collapse of Silicon Valley.
According to previous statements by US regulators, US officials continue to monitor the bank's safety and progress in reconciling its situation.
The figures released as the bank announced its quarterly results this year indicate that the bank's deposits are stable and not prone to collapse even with the sudden and intense scramble to withdraw deposits, as the largest US banks deposited $ 30 billion this month in an attempt to help the bank and prevent it from collapsing.
But First Republic still has structural problems with its balance sheet, and representatives of the Federal Reserve and the Federal Deposit Insurance Corporation declined to comment on the bank's rate plunge for three days in a row, nor did the U.S. Treasury Department comment.