Shares of First Republic fell sharply and hit a record low Tuesday, as investors questioned how the bank would stabilize itself after losing about 40% of its deposits during the first quarter.
The decline comes after the bank’s first-quarter earnings report, which showed that First Republic’s deposits shrank by 40.8% during the quarter as customers pulled out their money following the collapse of Silicon Valley Bank.
First Republic’s quarter-end deposits included a $30 billion infusion from 11 larger banks that were meant to stabilize the broader financial system. Excluding those funds, First Republic’s net outflows would have topped $100 billion.
First Republic’s stock fell more than 40% on Tuesday, extending its year-to-date losses beyond 90%. It hit a record intraday low at $8.27 per share.