FRC - First Republic Bank sinks after suspending dividend

2023-03-16 16:28:30 ET

First Republic Bank ( NYSE: FRC ) dropped 12% in after hours trading after announcing it was suspending its dividend after big banks pledged the troubled lender $30 in deposits.

"The Bank is focused on reducing its borrowings and evaluating the composition and size of its balance sheet going forward," First Republic said in a statement. "Consistent with this focus and during this period of recovery, the Bank’s Board of Directors has determined to suspend its common stock dividend."

Shares of First Republic ( FRC ) gained 10% in regulator trading, wiping out an earlier 36% drop, after the biggest U.S. banks agreed to provide $30 billion in deposits to the lender.

The largest banks, including JPMorgan ( JPM ), Bank of America ( BAC ), Citi ( C ) and Wells Fargo ( WFC ) will contribute $5 billion of deposits each, while Goldman Sachs ( GS ) and Morgan Stanley will provide $2.5 billion each. PNC Financial ( PNC ), Bank of New York Mellon ( BK ), Truist ( TFC ), U.S. Bancorp ( USB ) and State Street ( STT ) will each contribute $1 billion.

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