FRC - Why Shares of First Republic Are Rebounding This Week
2023-03-30 14:08:44 ET
After what has been a brutal month for the bank, shares of First Republic (NYSE: FRC) rebounded this week and were trading about 11% higher as of 1:43 p.m. ET on Thursday, according to data from S&P Global Market Intelligence .
First Republic got caught up in some of the same issues that ultimately brought down SVB Financial and Signature Bank earlier this month.
Namely, it had a lot of uninsured deposits and billions in unrealized losses in its bond portfolio that could wipe out a substantial amount of shareholder equity if the bank ever had to sell these bonds to cover deposit outflows. Many analysts also surmise that serving similar markets and customers as SVB didn't help, either. First Republic reportedly saw $70 billion of deposit outflows, and the stock is down almost 89% over the last month.
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Why Shares of First Republic Are Rebounding This Week