First Republic Bank crisis: Palm Beach clients claimed confidence, but others have bailed
Troubled First Republic Bank was teetering Wednesday as its stock plummeted another 20% in early trading amid talk the bank is needs a rescue.
The bank's shares, which sold for as much as $147 each in early February, were trading for under $5 at one point on Wednesday.
The San Francisco-based bank is not a household name in Palm Beach County, which is dominated by large retail institutions like Wells Fargo. But it has been a preferred bank among deep-pocketed residents and snowbirds in the Town of Palm Beach, some who whom were featured in ads touting the bank.
In a story early this month, Palm Beach Post senior real estate columnist Alexandra Clough wrote about how the banking industry's financial woes had created jitters among the millionaires and billionaires who had deposited big sums in First Republic. But some of those customers told Clough they would stick with the bank.
Read Clough's subscriber-only story now: Palm Beach VIPs courted by First Republic Bank pledge loyalty despite turmoil
Others have not been as confident or loyal as he ones who spoke publicly with Clough.
On Monday, First Republic revealed it had seen a 40% drop in total deposits since Jan. 1. That followed the March collapse of another institution, Silicon Valley Bank, and subsequent assistance to other institutions in deepening financial straits.
First Republic also disclosed it was looking at strategic options to to shore up its balance sheet. This despite an infusion of $30 billion worth from almost a dozen other institutions in order to shore up the bank and boost confidence in its safety and operations.
Antonio Fins is a politics and business editor at The Palm Beach Post, part of the USA TODAY Florida Network. You can reach him at afins@pbpost.com. Help support our journalism. Subscribe today.
This article originally appeared on Palm Beach Post: First Republic in trouble despite Palm Beach clients investments
