U.S. largest banks support First Republic Bank

22/03/2023 News

First Republic Bank, a leading private bank and wealth management company, announced it will receive uninsured deposits totaling $30 billion on March 16, 2023 from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and U.S. Bank. 

This support from America’s largest banks reflects confidence in First Republic and its ability to continue to provide unwavering exceptional service to its clients and communities.

Jim Herbert, Founder and Executive Chairman, and Mike Roffler, CEO and President of First Republic Bank said, “We would like to share our deep appreciation for Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and U.S. Bank. Their collective support strengthens our liquidity position, reflects the ongoing quality of our business, and is a vote of confidence for First Republic and the entire U.S. banking system. In addition, we want to share our sincerest thanks to our colleagues, clients, and communities for their continued and overwhelming support during this period.”

As previously announced, First Republic (the “Bank”) obtained additional liquidity through additional borrowing capacity. It has since drawn on this borrowing capacity following recent industry events.

• As of March 15, 2023, the Bank had a cash position of approximately $34 billion, not including the $30 billion of uninsured deposits from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and U.S. Bank with an initial term of 120 days at market rates.

• From March 10 to March 15, 2023, Bank borrowings from the Federal Reserve varied from $20 billion to $109 billion at an overnight rate of 4.75%.

• Since close of business on March 9, 2023, the Bank has also increased short-term borrowings from the Federal Home Loan Bank by $10 billion at a rate of 5.09%.

Insured deposits from close of business on March 8, 2023 to close of business on March 15, 2023 have remained stable. Daily deposit outflows have slowed considerably.

The Bank is focused on reducing its borrowings and evaluating the composition and size of its balance sheet going forward. Consistent with this focus and during this period of recovery, the Bank’s Board of Directors has determined to suspend its common stock dividend.

Related news & insights

SME Banking
23/02/2024 News

Griffin launches Foundations: BaaS integration for UK companies

Griffin, a leading UK bank and Banking as a Service (BaaS) platform, has introduced Foundations, an early access program tailored...

ESG
19/02/2024 News

MicroBank's social impact financing soars in 2023

MicroBank, the social banking arm of CaixaBank, experienced a significant surge in its social impact financing in 2023, with a...

SME Banking
18/02/2024 News

Grasshopper Bank harnesses AI to fortify risk assessment capabilities

The collaboration aims to enhance Grasshopper's risk assessment capabilities through Greenlite's AI-enhanced due diligence suite.

SME Banking
16/02/2024 News

CBA partners with Ruminati to empower farmers in emissions management

Through a pilot program, selected livestock and mixed farming customers gain access to an emissions calculator to measure their baseline...

SME Banking
13/02/2024 News

Diaspora Nigerians launch venture fund and SME Bank to boost Nigerian economy

With annual diaspora remittances expected to surpass $20 billion, the coalition sees an opportunity to leverage these funds for economic...

SME Banking
12/02/2024 News

Bank of America's EBI program: Empowering millions in corporate America

Launched in 2020, the program offers top-notch financial education, rewards, and banking and investing tools to bolster employees' financial well-being.

SME Banking
09/02/2024 Interview

NewTech Friday: Rubyx – Transforming digital lending for small businesses in Africa

Rubyx was one of the outstanding fintech startups selected for the 2023 edition of the CATAPULT: Inclusion Africa by the...

SME Banking
08/02/2024 News

Virgin Money launches self-certification scheme for sustainable businesses

This initiative, integrated into the Sustainable Business Coach app, assists businesses in demonstrating their commitment to sustainability while providing practical...