Why First Republic Bank Stock Is Falling After Hours

First Republic Bank FRC shares are trading lower in Monday's after-hours session after the bank reported first-quarter results showing a significant decline in deposits. The company also announced plans to cut its workforce and rein in spending. 

What Happened: First Republic said first-quarter revenue fell 13.4% year-over-year to $1.2 billion, which beat consensus estimates of $1.15 billion, according to Benzinga Pro. The bank reported quarterly earnings of $1.23 per share, which beat estimates of 85 cents per share.

Net interest income was down 19.4% year-over-year. Net interest margin was 1.77% compared to 2.45% in the prior quarter. Wealth management assets totaled $289.5 billion, up 5.6% year-over-year. 

Loans totaled $173.3 billion, up 22.6% year-over-year. Deposits were down 35.5% year-over-year to $104.5 billion and borrowings were up $101.2 billion to $106.7 billion.

The stock appears to be reacting negatively to the drop in deposits on a year-over-year basis. 

Founder and executive chairman Jim Herbert and president and CEO Mike Roffler said, "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."

First Republic said it plans to cut between 20% and 25% of its workforce in the second quarter and significantly reduce executive officer compensation, as well as cut back office space and non-essential projects.

First Republic will hold a conference call to discuss these results at 4:30 p.m. ET.

See Also: Trading Strategies For First Republic Stock After Q1 Earnings

FRC Price Action: First Republic has a 52-week high of $171.04 and a 52-week low of $11.52. FRC shares are down more than 85% year-to-date.

The bank stock was down 5.87% after hours at $15.11, according to Benzinga Pro.

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