First Republic Bank Sees Significant Drop in Deposits in Q1
First Republic Bank has reported a significant drop in deposits in the first quarter of 2021. According to the bank’s financial statement, deposits tumbled 40% to $104.5 billion, compared to the same period last year.
The bank attributed the decline to the economic uncertainty caused by the COVID-19 pandemic. As businesses and individuals have been forced to cut back on spending, the bank has seen a decrease in deposits.
The bank also noted that the decline in deposits was partially offset by an increase in loan originations. The bank reported that loan originations increased by 8% in the first quarter, compared to the same period last year.
First Republic Bank is one of the largest banks in the United States, and the decline in deposits is a sign of the economic impact of the pandemic. The bank is hoping that the economy will recover in the coming months, and that deposits will begin to increase again. In the meantime, the bank is focusing on increasing loan originations to make up for the decline in deposits.