First Republic Bank FRC shares are trading lower Tuesday after the company reported a decline in deposits and announced plans to cut its workforce and reduce spending.
The Details: First Republic said first-quarter revenue fell 13.4% year-over-year to $1.2 billion, which beat consensus estimates of $1.15 billion, according to Benzinga Pro. The bank reported quarterly earnings of $1.23 per share, which beat estimates of 85 cents per share.
Net interest income was down 19.4% year-over-year. Net interest margin was 1.77% compared to 2.45% in the prior quarter. Wealth management assets totaled $289.5 billion, up 5.6% year-over-year.
Loans totaled $173.3 billion, up 22.6% year-over-year. Deposits were down 35.5% year-over-year to $104.5 billion and borrowings were up $101.2 billion to $106.7 billion.
First Republic also said it plans to cut between 20% and 25% of its workforce in the second quarter and significantly reduce executive officer compensation, as well as cut back office space and non-essential projects.
Following the print, Barclays analyst Jason Goldberg maintained First Republic with an Equal-Weight and lowered the price target from $17 to $15. Wedbush analyst David Chiaverini maintained the bank stock with a Neutral and an $8 price target.
FRC Price Action: First Republic has a 52-week high of $171.04 and a 52-week low of $11.52. FRC shares are down more than 86% year-to-date.
The stock was down 22% at $12.48 Tuesday morning, according to Benzinga Pro.
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