The financial report of First Republic Bank (NYSE: FCR), one of the American financial institutions that sparked a global wave of concern about the financial system's stability in March, has found itself in trouble again.

According to the financial report for the first quarter of 2023 published this week, First Republic customers withdrew over $100 billion in deposits from their accounts, fearing the institution's bankruptcy . As a result, the already heavily discounted FCR shares fell by another 50% in a single day on Wall Street.

First Republic Bank's Revenues, Net Profit, and Deposits Down

The report published by First Republic shows that revenues in the first three months of 2023 fell 13.4% to $1.2 billion, while net profit was $269 million, shrinking 32.9%. On the other hand, the value of deposits contracted 35.5% to $104.5 billion.

Diluted earnings per share amounted to $1.23, dropping 38.5%, while book value per share grew 10.4% to $76.97.

"With the closure of several banks in March, we experienced unprecedented deposit outflows," said Neal Holland, the Chief Financial Officer of First Republic. "We moved swiftly and leveraged our high-quality loan and securities portfolios to secure additional liquidity . We are working to restructure our balance sheet and reduce our expenses and short-term borrowings."

In response to the financial report, FRC shares fell 49% on Tuesday, closing the day at $8.10, deepening the historical lows.

The company is now considering disposing of assets worth between $50 and even $100 billion to improve its poor condition.

First Republic Bank Announces Restructuring Plan

As part of the asset sale, First Republic is considering offloading long-term mortgage loans and securities to reduce the gap between liabilities and assets. This was one of the main factors that led the institution to the verge of bankruptcy in March after a run on deposits.

Potential buyers include other large banks that could count on preferred shares or warrants as an incentive to purchase the troubled unit's assets, Bloomberg reported.

"With the stabilization of our deposit base and the strength of our credit quality and capital position, we continue to take steps to strengthen our business," said Mike Roffler, the CEO and President of First Republic. "We remain fully committed to serving our communities, and we are grateful for the ongoing support of our clients and colleagues."

Additionally, the institution aims to cut costs, including laying off 20-25% of its employees in the coming months. Even more drastic cuts were announced earlier by others of the major investment banks.

Problems following the publication of the quarterly report affected Credit Suisse, which lost CHF 1.3 billion in Q1 2023, and UBS, which took over the troubled bank. Its revenues shrank 52% in the past quarter.