First Republic Discloses it’s a Zombie

April 25, 2023

by Wolf Richter Wolf Street

Shares, after jumping 12% during the day in anticipation of something wonderful, plunged 22% after-hours, now within a hair of the low in March.

First Republic, the San Francisco bank that started teetering in March when Silicon Valley Bank was felled by its well-connected big depositors, reported earnings this evening. And it looks like it has handled the run on the bank for now: It’s still standing, though its deposits had plunged by 41% (by $72 billion) by March 31, compared to December 31.

But those deposits include the $30 billion that 11 large banks deposited at the bank in March to prop it up and keep contagion from spreading.