Troubled First Republic Bank's deposits down nearly 41% in Q1 amid US banking crisis

By Ovunc Kutlu

ISTANBUL (AA) - The troubled First Republic Bank saw deposits fall 40.8% in the first quarter when financial hurdles at four US banking institutions caused a crisis.

The US-based commercial and wealth management institution's total deposits stood at $104.5 billion as of the three quarters ending March 31, which was down from $176.4 billion recorded in the final three quarters of 2022.

On an annual basis, total deposits were down 35.5% from just over $162 billion during the January-March period of 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.

Eleven major banks in the US poured $30 billion in deposits March 16 to save First Republic Bank.

"With the closure of several banks in March, we experienced unprecedented deposit outflows," First Republic Bank Chief Financial Officer Neal Holland said in the statement.

"We moved swiftly and leveraged our high quality loan and securities portfolios to secure additional liquidity. We are working to restructure our balance sheet and reduce our expenses and short-term borrowings," he added.

First Republic Bank posted revenues of $1.2 billion in the first quarter, down 14% from almost $1.4 billion during the same period last year.

Net income fell 32.9% to 269 million, from $401 million, during the same period.