First Republic Bank (NYSE:FRC) led a decline in bank shares Monday that came even after regulators’ extraordinary actions Sunday evening to backstop all depositors in failed Silicon Valley Bank and Signature Bank and offer additional funding to other troubled institutions.
San Francisco’s First Republic shares declined 33% last week. PacWest Bancorp dropped 37%, and Western Alliance Bancorp lost 29% in Monday’s premarket. Zions Bancorporation shed 11%, while KeyCorp fell 10%. Bank of America (NYSE:BAC) lost 6% in premarket trading, while Charles Schwab (NYSE:SCHW) tumbled 20% early Monday.
First Republic issued a statement in the late Friday morning seeking to calm investors, pointing to its “continued safety and stability and strong capital and liquidity positions.”
Addressing its liquidity, First Republic said: "Sources beyond a well-diversified deposit base include over $60 billion of available, unused borrowing capacity at the Federal Home Loan Bank and the Federal Reserve Bank." Regarding its financial position, First Republic said it "has consistently maintained a strong capital position with capital levels significantly higher than the regulatory requirements for being considered well-capitalized."
On Sunday, First Republic said it has enhanced and diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase (NYSE:JPM), bringing the San Francisco-based bank's total available, unused liquidity to fund operation to more than $70 Billion.
FRC shares collapsed $54.68, or 66.9%, to $27.08.
