First Republic Bank shares dive 50% with sudden withdrawal amid US banking crisis

By Ovunc Kutlu

ISTANBUL (AA) - First Republic Bank saw shares dive almost 50% on Wednesday with sudden withdrawals amid weak first quarter results surrounding the US banking crisis.

The US-based commercial and wealth management institution saw its stock price plummet to as low as $6.03 at 10.03 a.m. EDT -- down 48% from a peak Tuesday at $11.60.

The sudden decline in its stock price came after the bank reported Monday that it saw deposits fall 40.8% in the first quarter when financial hurdles at four US banking institutions caused a crisis.

First Republic Bank's total deposits stood at $104.5 billion in the first three months ending March 31, which was down from $176.4 billion recorded in the final three months of 2022.

Total deposits were down 35.5% from just over $162 billion during the January-March period last year, according to the bank's financial results released late Monday.

After the sudden demise of Silicon Valley Bank and Signature Bank in March, financial difficulties rapidly enveloped First Republic Bank and Silvergate Bank.