First Republic Bank Announces $34B Cash Position, Suspends Common Stock Dividend

First Republic Bank has announced that as of March 15, 2023, the bank has a cash position of approximately $34 billion, which does not include the $30 billion in uninsured deposits from Bank of America, City, J.P.

Morgan, Wells Fargo, Goldman Sachs, Morgan Stanley, and others, which are at an initial term of 120 days at market rates.

The bank also borrowed between March 10th and March 15th from the Federal Reserve, with those borrowings ranging from $20 billion to $109 billion at overnight rates of 4.75 percent.

They also obtained $10 billion from the federal Home Loan Bank as of March 9th at a rate of 5.

According to CNBC’s Bertha Coombs, First Republic Bank’s chair, Jim Herbert, and CEO, Mike Ruffler, issued a statement of thanks to the banks that helped shore up their facilities, saying that their collective support strengthens their liquidity position.

The bank has also suspended its common stock dividend as a result of being focused on reducing borrowings and evaluating the composition and size of their balance sheet.

The bank has reported that their daily deposit outflows have now slowed considerably, and uninsured deposits since March 8th to the close of March 15th have remained stable.

The announcement comes as the bank seeks to stabilize its financial position amid recent market volatility, with stocks down 21 at the time of reporting.