Caroline Chen, San José State University, Danielle Lazerson, San José State University, C. Kyle Jones, Buena Vista University, Emmanuel Sequeira, San José State University
Strike Three: First Republic Bank is Out
Following the collapse of Silicon Valley Bank and Signature Bank in March 2023, First Republic Bank (NYSE: FRC) announced its first quarter earnings on April 24, 2023. The bank had already seen its share price drop by 90% following the failure of the other two banks. During FRC's earnings announcement, CFO Neal Holland revealed that the bank had suffered an outflow of more than $100 billion in deposits, and even after securing emergency funding, deposits were down 41% in the first quarter of 2023. On May 1, 2023, the Federal Deposit Insurance Corporation (FDIC) shut FRC down and sold all of its assets and deposits to JPMorgan Chase Bank. Students are asked to asked to focus on the areas of business, banking, finance, and accounting to evaluate First Republic Bank’s downward spiral after its first quarter earnings announcement on April 24, 2023 which led to its failure on May 1, 2023.