First Republic Bank has reported the loss of at least 35 advisors over the past month following the uncertainty in the regional banking sector. The departures have resulted in the loss of around 20% of First Republic's assets under management (AUM). 90% of wealth professionals have remained with First Republic, and the bank expects to retain a portion of the assets tied to advisors that have left.
The departures include a team managing $13 billion and David S. Breslin, senior vice president and wealth manager, according to AdvisorHub. The loss of assets and key personnel may challenge First Republic's future growth and profitability, particularly if clients follow these departed advisors to other firms. However, the bank's executives are confident that First Republic's strong reputation in the industry for its focus on personalized service and high-net-worth clients could help to mitigate some of these effects.
It remains to be seen whether the bank's purchase by JP Morgan will stem the tide of advisor departures. JP Morgan has been working very hard to attempt to convince advisors to remain on board.
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