Source:https:\/\/techcrunch.com\/2023\/04\/25\/first-republic-results-svb-impact\/<\/a><\/br>
\nFirst Republic\u2019s results are proof that the SVB meltdown was brutal for smaller banks<\/br>
\n2023-04-25 21:54:39<\/br><\/p>\n

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Shares of First<\/span> Republic Bank are off 29% in early-morning trading as investors digest its first-quarter earnings results, which came out yesterday after the bell. The bank reported revenue and profit<\/a> above analysts\u2019 expectations<\/a>, but for investors, other concerns outweighed the good results.<\/p>\n

Chief among those concerns is a massive decline in the bank\u2019s deposit base. Deposits help provide a foundation for banks to lend against and therefore derive net interest income on the difference collected on loaned capital and interest paid out to depositors.<\/p>\n

Let\u2019s take a look at how things have been at First Republic. The bank closed 2022 with $176.4 billion worth of deposits against $166.9 billion in loans, but by the end of Q1 2023, it had $104.5 billion in deposits against $173.3 billion in loans.<\/p>\n

This massive decline in First Republic\u2019s deposit base was triggered by the dramatic implosion of Silicon Valley Bank<\/a>, which collapsed after a run on its own deposits, leaving the startup and venture capital worlds<\/a> absolutely rattled.<\/p>\n

First Republic came under pressure quickly afterward, as its customers were concerned that it might follow SVB into receivership<\/a>, and saw unusually large outflows from its own deposit base. The company\u2019s share price was decimated in the process, falling from around $115 on March 8 (when SVB announced after hours<\/a> that it was making a series of financial moves, which helped precipitate the bank run) to $16 at the end of trading yesterday.<\/p>\n

This morning, the bank\u2019s shares are down to around $11.26 apiece.<\/p>\n<\/p><\/div>\n

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Science, Tech, Technology<\/br>
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\nSource:https:\/\/techcrunch.com\/2023\/04\/25\/first-republic-results-svb-impact\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/04\/25\/first-republic-results-svb-impact\/ First Republic\u2019s results are proof that the SVB meltdown was brutal for smaller banks 2023-04-25 21:54:39 Shares of First Republic Bank are off 29% in early-morning trading as investors digest its first-quarter earnings results, which came out yesterday after the bell. The bank reported revenue and profit above analysts\u2019 expectations, but for investors, other […]<\/p>\n","protected":false},"author":1,"featured_media":30047,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-30046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\n