But the company's earnings were up due to lower loss provisions.

The neobank expects to turn a profit by the end of the year, but faces challenges as it copes with the government's pause on federal student loan repayment and with the difficulty of selling technology services to other businesses.

In an earnings call, the company said talks with depository institutions were already underway regarding potential residential loan sales.

About $2.9 billion of the deposits the company obtained from the failed Signature Bank had fled as of last week, and executives are forecasting that number to double. However, they say they're "cautiously optimistic" they can lure some deposits back.

The latest estimates for its market share in third-party origination channels as others have exited is 17% for correspondent and 2.2% in wholesale.

Even as First Republic Bank has sunk deeper into crisis this week — falling as much as 49% on one day alone — shares of many of its peers, including names like PacWest Bancorp and UMB Financial, have mostly held steady.

The company recorded its first quarter of production-related sequential revenue growth in roughly two years, which supplemented its income from the servicer and real estate business line.

The company also has plans to bring on board $37 billion in subservicing contracts in line with its acquisition of Rushmore Loan Management Services.

The California bank, which endured large deposit outflows in March, anticipates selling its $2.7 billion lender finance portfolio in the coming months. It's also looking at cutting facilities, employee headcount and vendor costs.

The San Francisco bank, on shaky ground after two regional peers failed last month, said that customers pulled more than 40% of their deposits last quarter. It's been forced to turn to more expensive sources of funding, which analysts said will squeeze its profitability.