FRC - Next few days said to be crucial for future of First Republic Bank - report
2023-04-25 09:36:34 ET
The next few days are expected to be crucial for the fate of First Republic Bank ( NYSE: FRC ) after the bank on Monday reported net deposit outflows of $72 billion during the quarter. First Republic plunged 27%.
One scenario being considered is to create a special purpose entity with banks that supported First Republic ( FRC ) a month ago with $30 billion in deposits, to buy the bank's "underwater" loans on its balance sheet above where they would be marked, according to CNBC's David Faber, who cited people familiar. If this occurs. First Republic ( FRC ) may go out and raise new equity.
San Francisco-based First Republic ( FRC ) has faced increased withdrawals after Silicon Valley Bank, Silvergate Bank, and Signature Bank failed in March.
Montgomery Janney analyst Timothy Coffey downgraded the First Republic to sell on Tuesday, citing worse-than-expected Q1 results.
More on First Republic Bank:
- Stock slides after deposits sank by more than $70B in Q1
- Decent Q1 Earnings But Rising Funding Costs Pose Headwind
- Q1 Earnings: Equity Likely Worthless, Avoid
For further details see:
Next few days said to be crucial for future of First Republic Bank - report