First Republic Bank expects to cut its workforce by 20-25%, the embattled lender said late Monday.
The layoff announcement comes as First Republic reported first-quarter earnings, just weeks after a consortium of banks stepped in with $30 billion to prevent the regional lender from failing.
The bank reported earnings per share of $1.23, coming in higher than analysts’ expectations of $0.85 per share, according to Refinitiv data.
San Francisco-based First Republic reported that year-over-year revenues were down 13.4%. Net interest income, the money a bank makes from charging interest on the loans they give out minus the interest they have to pay to depositors and other lenders, was down 19.4%.
Total deposits were $104.5 billion, well short of analysts’ expectations of $136.7 billion.
First Republic has seen its share price plummet nearly 90% since March 1. The drop comes as investors scrutinize lenders with a high amount of uninsured depositors — a response to the collapse of Silicon Valley Bank and Signature Bank last month.
This story is developing and will be updated.
