SBNY - First Republic Bank shares under pressure amid woes regarding SVB Signature collapse

2023-03-13 06:19:18 ET

• First Republic ( NYSE: FRC ) shares fell 61.03% in premarket trading, amid fear that Silicon Valley Bank's woes would spread to other banks in the tech-focused region, despite government intervention.
• Investors have grown wary of First Republic for reasons similar to those that caused concern at SVB.
• 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 ( FRC ) said it has enhanced and diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase ( JPM ), bringing the San Francisco-based bank's total available, unused liquidity to fund operation to more than $70B.
• First Republic set to hit multi-year lows; trades down 66% at $28.09 as of 4:43am in New York.
• On Friday, First Republic ( FRC ) shared sank as much as 52% after SVB Financial's ( SIVB ) Silicon Valley Bank failed.
• Elsewhere Sunday, U.S. regulators shut down New York-based Signature Bank , a big lender in the crypto industry, in a bid to prevent the spreading banking crisis.
• Also on the move: PacWest Bancorp ( PACW ) dropped 30% and Western Alliance Bancorp ( WAL ) fell 17.9%.
• More on SVB track: ' HSBC acquires Silicon Valley Bank UK for £1 '; ' PNC, RBC not to bid for Silicon Valley Bank '; ' Janet Yellen says U.S. is not considering bailing out Silicon Valley Bank '.
• Relevant read: First Republic Bank: Uncertainty Prevails .

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