NEW YORK, April 25 (Reuters) - The strategic options for First Republic Bank are "very challenging" because any potential sale is unlikely without the lender taking big writedowns on their mortgage loan book and securities portfolio, analysts at Fitch Ratings told Reuters.
"If someone were to acquire them... there's going to be some big writedowns that would have to be taken against some of the assets given the rate cycle," Christopher Wolfe, head of North American banks at Fitch Ratings, told Reuters.
"The options are very challenging and probably very costly, especially for shareholders. Who's going to bear the cost?"
First Republic on Monday reported a more than $100 billion plunge in deposits in the first quarter in the aftermath of the biggest crisis to hit the banking sector since 2008.
The bank said it was "pursuing strategic options" to help expedite progress on strengthening the bank, without providing details.
First Republic declined to comment. (Reporting by Saeed Azhar; Editing by Chizu Nomiyama)
