First Republic Bank Suspends Preferred Dividends Amid Short Seller Analysis

First Republic Bank has suspended payment of the quarterly cash dividend on each series of its outstanding noncumulative perpetual preferred stock as a measure of prudent oversight. The bank has seven different preferred shares listed and the dividend suspension could cause concern for investors. Deposits have been falling and lending has been curtailed, leading to estimates of a modest loss for the year ending December 31, 2023. While the preferred shares may offer an asymmetrical return profile, they are still considered risky.