First Republic Bank’s depositors pulled more than $100 billion out of the San Francisco-based lender during last month’s crisis, amid concerns about the health of the world banking system.
In March, Silicon Valley Bank, which was the 16th-largest lender in the U.S, collapsed in the biggest failure of an American bank since 2008. New York’s Signature Bank followed suit.
First Republic said Monday (April 24) that it was only after a group of large banks stepped in to save it by depositing $30 billion in uninsured deposits that the bank was able to staunch the bleeding.
First Republic plans to shrink its balance sheet and slash expenses by cutting executive compensation, paring back office space, and laying off nearly 20% to 25% of employees in the second quarter, it also said.
“We continue to take steps to strengthen our business,” Jim Herbert, the bank’s executive chairman and Mike Roffler, the bank’s CEO, said in a joint statement.