FRC - Why First Republic Bank Plunged by More Than 40% Today
2023-04-25 15:49:33 ET
Shares of First Republic Bank (NYSE: FRC) had plunged by about 46% as of 3:38 p.m. ET Tuesday after the beleaguered regional bank released its first-quarter results Monday night.
First Republic has been in the spotlight since early March, as its business model bears many similarities to the handful of regional banks that went bust around that time. Specifically, First Republic has a large volume of uninsured deposits, as well as lots of fixed-rate, long-duration assets such as mortgages. Back in March, a consortium of the country's 11 largest banks come together to save the bank with a $30 billion deposit injection.
The first-quarter release showed that capital injection was absolutely necessary, and suggests that it may not have been sufficient to stave off more trouble for the bank in the near future.
For further details see:
Why First Republic Bank Plunged by More Than 40% Today