First Republic plunges to record low after deposit drop

First Republic Bank’s shares have plummeted to a record low after it suffered a 40.8% loss in deposits during Q1 2023, following the collapse of Silicon Valley Bank. In addition to this, the bank revealed that without a $30 billion infusion from 11 larger banks, their net outflows would have exceeded $100 billion. First Republic has stated that it is pursuing strategic options to reshape its balance sheet in light of the significant deposit flight. Bloomberg News has reported that the bank is considering selling up to $100 billion of loans and securities to restructure its balance sheet. CNBC’s David Faber has warned that the next few days are crucial for First Republic's future as other banks and federal officials look for solutions to stabilize the regional bank. The bank’s year-to-date losses now exceed 90%. The future of First Republic Bank remains uncertain, and investors are questioning how the bank will stabilize itself after such a significant loss of deposits.