First Republic Bank's Q1 deposits plummeted by over $100 billion, causing its stock price to drop more than 22% in after-hours trading.

On Monday after the US stock market closed, First Republic Bank （ $First Republic Bank(FRC.US)$ ） released its first-quarter results. Due to a sharp decline in deposits overshadowing the bank's better-than-expected profits, the stock tumbled more than 22% in after-hours trading.

Highlights

First-quarter 2023 revenues were $1.2 billion, which is down 13.4% year-over-year
Net interest income declined 19.4% annually to $923 million during the three-month period
Net income declined to $269 million or $1.23 per share in the March quarter from $401 million or $2.0 per share last year
First-quarter book value per share was $76.97, up 10.4%
Loans increased 22.6% to $173.3 billion, while total deposits declined by 35.5% annually to $104.5 billion

What's Next for First Republic Bank?

Before the earnings release, First Republic Bank's estimate revision trend was unfavorable, and the current state is now a sell. It is expected that the stock will underperform the market in the near future. It will be interesting to see how the estimates for the upcoming quarters and current fiscal year change in the next few days. Currently, the estimated earnings per share for the next quarter is $0.52 with a revenue of $628.83 million, and $0.05 for the revenue of $3.4 billion for this fiscal year. Investors should also note that the prospects of the industry will also have a significant impact on the stock performance.

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efficentupup

True and timely

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