First Republic Bank

But its stock plunged more than 60% in premarket trading Monday despite the attempts to reassure customers about the strength of its business. First Republic ...

[eight times](https://www.nasdaqtrader.com/trader.aspx?id=tradehalts) in the first 45 minutes of trading despite the attempts to reassure customers about the strength of its business. worked overtime Sunday to reassure clients about the safety of its business after the collapse of Silicon Valley Bank last week sparked fears of contagion in the banking industry. ](https://www.barrons.com/market-data/stocks/frc)

Shares of First Republic Bank plunged in premarket trading, leading losses among regional banks, despite efforts by U.S. regulators to calm investors after ...

Among the other notable moves:\n\nWestern Alliance Bancorp's shares slid 68%\nPacWest Bancorp's stock tumbled 44%\nComerica's stock fell 23%\nZion Bancorporation's stock fell 27%\nFifth Third Bancorp's stock lost 10%\nCharles Schwab's shares lost 11%\nBank of America's stock fell 4.2%\nWells Fargo's stock slid 3.1%\n\nThe premarket moves extend a volatile stretch of trading for First Republic, which tumbled 29% in the final two sessions of last week. After the quick collapse of Silicon Valley Bank, in addition to the closures of Signature Bank and Silvergate Capital in recent days, investors have been dumping shares of banks that have potentially similar profiles.\n\nFirst Republic's customers are businesses and wealthy individuals on the coasts, many of whom were no longer content to leave their money in accounts that earned little yield when other high-interest alternatives exist. regulators to calm investors after the collapse of Silicon Valley Bank.\n\nFirst Republic shares were recently down 63% premarket after sliding more than 70% earlier.

First Republic Bank shares plunged by about 60% in premarket trading on Monday even after the regional lender announced steps to shore up its balance sheet.

“In light of recent industry events, the last few days have caused uncertainty in the financial markets,” First Republic senior executives said in an email to clients viewed by CNN. “But it doesn’t change the fact that there’s still problems — you’re just basically buying time to sort the problems out in a better way.” The same protections would be in place for customers of Signature, a New York regional lender that folded when depositors were apparently spooked by SVB’s demise. “It’s a confidence-crisis risk,” he said. First Republic lists $213 billion in assets. First Republic shares fell more than 60% and were briefly halted for volatility.

As of the time of writing, equity shares of First Republic are off more than 65%, and trading has been halted as mentioned.

Turmoil continued to engulf shares in regional banks as investors who saw equity stakes wiped out at Silicon Valley Bank and Signature Bank rushed out of the ...

[JPMorgan Chase](https://fortune.com/company/jpmorgan-chase/) & Co., [Bank of America](https://fortune.com/company/bank-of-america-corp/) Corp. [Comerica](https://fortune.com/company/comerica/) Inc. and [Wells Fargo](https://fortune.com/company/wells-fargo/) & Co. [HSBC Holdings](https://fortune.com/company/hsbc-holdings/) Plc agreed to [buy the UK arm](https://fortune.com/2023/03/13/silicon-valley-bank-uk-canada-china-collapse/) of Silicon Valley Bank. economists said they [no longer expect](https://www.bloomberg.com/news/articles/2023-03-13/fed-half-point-hike-looks-less-likely-as-financial-risks-flare) the Fed to deliver a rate increase next week. A senior US Treasury official said some institutions had issues similar to the failed [Silicon Valley Bank](https://fortune.com/company/svb-financial-group/). PacWest [Bancorp](https://fortune.com/company/bancorp/) lost more than 40%, Western Alliance Bancorp sank 30%, [Charles Schwab](https://fortune.com/company/charles-schwab/) Corp. [Credit Suisse Group](https://fortune.com/company/credit-suisse-group/) AG slumped as much as 15%. “This is a difficult position Fed is in, on the one hand it needs to keep hiking to arrest inflation, but also it needs to protect the financial system. [backstop for banks](https://www.bloomberg.com/news/articles/2023-03-12/us-moves-to-help-depositors-offer-bank-backstop-in-wake-of-svb), investors remained on edge that more seizures were possible. [Nasdaq](https://fortune.com/company/nasdaq/) futures trimmed their advance and the Cboe Volatility Index spiked, set for the highest since end-October. [First Republic Bank](https://fortune.com/company/first-republic-bank/) remained under pressure, with shares plunging 70% in US premarket trading even after the lender moved to try and [quell concern ](https://www.bloomberg.com/news/articles/2023-03-13/first-republic-says-fed-jpmorgan-push-liquidity-to-70-billion)about its liquidity after the failure of SVB.

The stocks of other regional banks, including Zions, Pacific West and Western Alliance, also took a beating.

Kathy Hochul said Monday in a [tweet](https://twitter.com/GovKathyHochul/status/1635277077133008896). [2008](https://apnews.com/article/08aeb5a6c9d542ccb6d6154d4fa1e3a6) at the height of the financial crisis. In a statement on Sunday, CEO Mike Roffler said the bank "continues to fund loans, process transactions and fully serve the needs of clients." The bank's closure marked the largest failure of a financial institution since Washington Mutual in [regulators in New York shuttered Signature Bank](https://www.cbsnews.com/news/signature-bank-new-york-closed-silicon-valley-bank/). "No bank is immune, but this pressure will likely be most pronounced among banks with a larger mix of rate sensitive customers."

Is it safe to say the word “bank” yet without causing shares of any players in the sector to fall dramatically? Probably not, as the market activity around ...

Long believes that eventually First Republic can get back to “driving growth and improved profitability,” so long as the panic amongst bank depositors cools down following the bank regulators’ support. It is very important to do your own analysis before making any investment. (To watch Long’s track record, Probably not, as the market activity around First Republic Bank ( [FRC stock forecast](https://www.tipranks.com/stocks/frc/forecast)) Additionally, that figure does not factor in the possibility for more liquidity under the Federal Reserve’s announced Bank Term Funding Program.

CNBC reported Monday (March 13) that First Republic Bank Executive Chairman Jim Herbert told the network's Jim Cramer that the bank was meeting withdrawal ...

“This filing reiterates First Republic’s continued safety and stability and strong capital and liquidity positions,” the bank said in its Friday filing to the SEC. [filing](https://ir.firstrepublic.com/static-files/295faa27-f208-4936-81ff-6c8bfa0fb6b5) with the Securities and Exchange Commission (SEC) that its deposit base is well diversified, its liquidity position remains strong, and its investment portfolio is stable and accounts for less than 15% of total bank assets. [press release](https://news.firstrepublic.com/news-releases/news-release-details/first-republic-bank-strengthens-and-diversifies-liquidity) that it had gained access to additional liquidity from both JPMorgan Chase and the Federal Reserve Bank and that its capital and liquidity remained “very strong.” “First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” Herbert and First Republic Bank CEO and President [reported](https://www.cnbc.com/2023/03/13/frc-tells-cnbc-the-bank-isnt-seeing-that-many-depositors-leave-jpm-funding-working.html) Monday (March 13) that First Republic Bank Executive Chairman Jim Herbert told the network’s Jim Cramer that the bank was meeting withdrawal demands with the help of additional funding, was not seeing “massive” outflows and was experiencing “business as usual.” [stock](https://www.google.com/search?q=%22first+republic+bank%22+stock&rlz=1C1RXQR_enUS968US968&oq=%22first+republic+bank%22+stock&aqs=chrome..69i57j0i131i433i512j0i3j0i131i433i512j0i3l6.6478j1j4&sourceid=chrome&ie=UTF-8) was down about 64% Monday after the failure of two other banks: [Silicon Valley Bank on Friday](https://www.pymnts.com/digital-first-banking/2023/state-regulator-closes-silicon-valley-bank-and-appoints-fdic-receiver/) (March 10) and [Signature Bank on Sunday](https://www.pymnts.com/news/banking/2023/signature-bank-shut-down-and-placed-under-fdic-control/) (March 12).

Will recent bank failures lead to contagion, or will the problem be contained? Speculative investors can bet on First Republic Bank (NYSE:FRC) if they're ...

On the other hand, it’s reassuring that the company has the backing of the Federal Reserve Bank and JPMorgan Chase. At the same time, it’s perfectly understandable if more cautious investors choose to stay far away from First Republic Bank and seek other financial stocks. Fortunately, there are reasons to believe — though there are no guarantees, of course — that First Republic Bank may weather the crisis. While this magnitude of volatility is happening, investors might not be able to assign a meaningful P/E ratio to First Republic Bank, and it’s hard to know whether the company’s [3.5% dividend yield](https://www.tipranks.com/stocks/frc/dividends) is reliable. In any event, First Republic Bank’s management insists that the company remains well-capitalized and financially sound. This doesn’t necessarily mean that everyone should invest in First Republic Bank right now. Investors are already aware of this, and the billion-dollar question is whether the company can continue and succeed as a going concern. The fallout from the SVB fiasco includes collateral damage, and First Republic Bank and its shareholders are sitting on heavy losses at the moment. [First Republic Bank stock declined around 62%](https://www.tipranks.com/stocks/frc) on Monday after already having lost substantial value on Thursday and Friday of last week. The question is: are you really willing to bank on a comeback with First Republic Bank? Regional bank stocks are sometimes considered to be a fairly safe bet. Speculative investors can bet on First Republic Bank (

First Republic Bank shares plummeted on Monday despite efforts to reassure investors, amid turmoil from the collapse of Silicon Valley Bank.

Shares at Credit Suisse Group tumbled as well, without any evidence of a clear link to the SVB crisis. Silicon Valley Bank Germany Branch will not be allowed to sell assets or make payments because it’s at risk of not being able to fulfill commitments to creditors, BaFin said in a statement. The German operations aren’t considered to be systemically relevant, BaFin said. and German debt, underlining concerns over the potential for rising interest rates to uncover hidden risks elsewhere. The assurances failed to win over investors, with many rushing for safety in U.S. The KBW Bank Index dropped 12% for the biggest slide in three years.

Following Silicon Valley Bank's collapse, SF-based First Republic Bank saw its own stock price crater Monday morning amid a wider bank selloff.

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Shares of San Francisco-based First Republic Bank lost more than half their value, igniting fears that it may be the next bank to collapse.

"I feel confident enough that I'm not taking money out," Ken Routon of Campbell said. The worry over First Republic, the 14th largest bank in the U.S. There were multiple social media posts over the weekend showing people lining up at First Republic locations in Southern California to withdraw their money.

The short-term local currency bank deposit rating of Prime-1 and short-term counterparty risk assessment of Prime-1(cr) were also placed on review for downgrade ...

Alternatively, please see the Rating Methodologies page on [https://ratings.moodys.com](https://ratings.moodys.com) for a copy of this methodology. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. First Republic's BCA and ratings could be downgraded if the bank's deposit base has eroded markedly, triggering asset sales, loss crystallization and a higher reliance on market funding. An upgrade of First Republic's ratings is unlikely given the current review for downgrade. The review for downgrade reflects the extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows. An additional offset to these funding risks is the creation of Federal Reserve and Treasury Department's new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks and other eligible depository institutions pledging qualifying assets owned prior to the facility's announcement date. First Republic's long term local and foreign currency counterparty risk rating of A3, long-term local currency bank deposit rating of A1, long-term counterparty risk assessment of A2(cr), baseline credit assessment (BCA) and adjusted BCA of a3 were placed on review for downgrade. Such crystallization of losses, if it were to happen, could materially weigh on the bank's profitability and capital, which at the same date were modest compared to peers, with a return on asset of 0.78% and a tangible common equity (TCE) over risk-weighted asset ratio of 9.1%. New York, March 13, 2023 -- Moody's Investors Service (Moody's) has today placed all long-term ratings and assessments of First Republic Bank (First Republic) on review for downgrade.

First Republic Bank's asset base is more weighted toward loans and will not suffer the same immediate devaluation as Silicon Valley Bank.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. You'll note that First Republic's Q4 loan yield of ~3.5% is much less than SVB's ~6% (again, thanks to First Republic's penchant for relatively lower-risk real estate loans as opposed to speculative tech lending). I'll emphasize again here: First Republic has more than 2x the loan volume of SVB, and less than a quarter of its loan exposure. [FRC](https://seekingalpha.com/symbol/FRC)) has been pinpointed as the next domino to fall in the wake of Silicon Valley Bank's ( [SIVB](https://seekingalpha.com/symbol/SIVB)). But while the housing market is certainly in a cooldown phase, it's hardly the same signals as in 2008. The storyline here is simple: awash in post-pandemic deposits from startups that had raised fresh VC funding in the tech boom of the past few years, SVB was taking in deposits faster than it could lend the money out, so it turned to bonds and bills as a supposedly risk-free way to earn yield on those deposits (on which it paid an average of 2.33% in the fourth quarter). Home prices are staying aloft; sellers are staying on the sidelines because they don't want to let go of lower interest rates, and supply remains low. So overall, First Republic's balance sheet has much more benign exposure to mark-to-market losses as SVB. Aggregate Bond Index ETF and one of the most popular bond ETFs in the market, illustrates what a big hole SVB was facing if the majority of its assets were similarly devalued. Now, since First Republic's focus here is loans, we would be remiss not to discuss credit quality. Note that First Republic is a very small bank whose overall balance sheet only amounts to ~$200 billion. What we'll discuss next is the difference in the two banks' asset bases.

The stock traded 20% higher in the premarket and was one of the best-performing names in the SPDR S&P Regional Banking ETF (KRE) — which was up 5%.

Correction: The Fed on Sunday announced the Bank Term Funding Program. One of those is the Fed's Bank Term Funding Program, which will allow banks to exchange certain high-quality assets for cash without booking mark-to-market losses. regulators took extraordinary measures to backstop all depositors in the now-failed Silicon Valley Bank. [First Republic led the way lower, losing 61.8%](https://www.cnbc.com/2023/03/13/first-republic-drops-bank-stocks-decline.html). Executive Chairman Jim Herbert told CNBC's Jim Cramer that the bank was [not seeing big outflows and was operating as usual](https://www.cnbc.com/2023/03/13/frc-tells-cnbc-the-bank-isnt-seeing-that-many-depositors-leave-jpm-funding-working.html). [PacWest](/quotes/PACW/) jumped 35%, [KeyCorp](/quotes/KEY/) gained 16%, and [Zions Bancorp](/quotes/ZION/) advanced 11%.

Shares of First Republic Bank, a financial institution in the United States that does business with startups, are rebounding today after a punishing start ...