By Caitlin McCabe
Shares of $First Republic Bank(FRC-N)$ plunged in premarket trading, leading losses among regional banks, despite efforts by U.S. regulators to calm investors after the collapse of Silicon Valley Bank.
First Republic shares shed half their value premarket, down almost 51%. The bank said Sunday that it had shored up its finances with additional funding from the Federal Reserve and JPMorgan Chase.
Other U.S. financial institutions, both big and small, were hit hard in Monday's premarket session. Among the other notable moves:
-- PacWest Bancorp's stock tumbled 27% -- Western Alliance Bancorp's shares slid 17% -- Charles Schwab's shares lost 6.7% -- Bank of America's stock fell 4.4% -- Citizens Financial Group's stock declined 2.7% -- Wells Fargo's stock slid 2.3%
The 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] in recent days, investors have been dumping shares of banks that have potentially similar profiles.
First 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. SVB, Signature and Silvergate were each exposed to problems, in part, because of their concentrated customer bases.
First Republic's executive chairman and CEO said in a joint statement that its "capital and liquidity positions are very strong" and that "its capital remains well above the regulatory threshold for well-capitalized banks."
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March 13, 2023 05:55 ET (09:55 GMT)
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