dChan
Anonymous ID: 237774 April 24, 2023, 1:34 p.m. No.18746574   🗄️.is 🔗kun   >>7170 >>7243

>>18745353 pb Meanwhile First Republic Bank spikes

 

First Republic Bank Lost $102 Billion in Customer Deposits

 

The regional bank received a $30 billion lifeline from big banks last month, but depositors and investors remain worried about its prospects. First Republic Bank, the most imperiled U.S. lender after last month’s banking crisis, on Monday disclosed the grisly details of just how troubled its business has become.

 

The big takeaway: The bank, which caters to a well-heeled clientele on the coasts, is hanging on. During the first quarter, it lost a staggering $102 billion in customer deposits — well over half of the $176 billion it held at the end of last year — not including a temporary $30 billion lifeline it received from the nation’s biggest banks last month. First Republic reported a quarterly profit of $269 million, down one-third from a year earlier. Its shares fell 7 percent in extended trading following the release of its results. The bank said that the exodus of deposits largely stopped by the last week of March. From March 31 to April 21, the bank said that it lost only 1.7 percent of its deposits and that most of those were related to tax payments by its clients.

 

The bank’s slide began roughly six weeks ago, when the midsize lenders Silicon Valley Bank and Signature Bank were taken over by federal regulators after customers pulled a big chunk of their deposits. First Republic, based in San Francisco, was widely seen as the lender most likely to fall next, because it had many clients in the start-up industry — similar to Silicon Valley Bank — and many of its accounts held more than $250,000, the limit for federal deposit insurance. First Republic’s stock rose more than 10 percent on Monday ahead of its earnings report, but is down more than 85 percent since mid March. First Republic has been in talks with financial advisers and government officials to come up with a plan to save itself that could include selling the bank or parts of it, or raising new capital.

https://www.nytimes.com/2023/04/24/business/economy/first-republic-earnings.html

 

Closed today @ 16.00+1.74 (+12.20%)

After hours: 4:30PM EDT 14.88 -1.12 (-7.00%)

https://finance.yahoo.com/quote/FRC

Anonymous ID: 237774 April 24, 2023, 3:31 p.m. No.18747170   🗄️.is 🔗kun   >>7243

>>18746574

The bottom line is that FRC has borrowed some $100BN in emergency loans on which it is paying about 5% in blended interest. How long it can continue doing that remains to be seen, but until then it will likely wipe out about 100% of the bank's net interest income. The one potential way out is if FRC somehow manages to sell its viable loans (many of which are IO loans backed by Hampton properties) at something close to par and repays the Fed, FHLB and banking consortium. With $173m in loans (as a reminder, a lot of FRC's loan exposure is to super prime NY real estate), it may just find enough loans to pay back the emergency loans and start rebuilding its balance sheet without too much impairment. And sure enough, management just confirmed as much:

*FRC SAYS IT AIMS TO REDUCE RELIANCE ON SHORT TERM BORROWINGS

https://www.zerohedge.com/markets/first-republic-tumbles-after-deposits-plunge-more-expected-borrows-100bn-fed-fhlb

 

and all that denial going on at Credit Suisse "no we are fine we are not experiencing massive outflows..this is not going on"…it did

 

Credit Suisse lost $68 billion in assets last quarter, outflows continue

https://www.reuters.com/business/finance/credit-suisse-saw-68-billion-first-quarter-outflows-it-crumbled-2023-04-24/