FRC - First Republic stock extends decline after talks of private share sales reported

2023-03-17 17:38:50 ET

First Republic ( NYSE: FRC ) shares slid 12% in Friday after-hours trading after a media report that the struggling lender is in talks to raise capital from other banks or private equity firms through the issuance of new shares.

The after-hours stock dccline followed a 33% tumble in Friday's regular-session trading. In the past week, First Republic ( FRC ) shares sank 80%.

The terms of any potential deal are still being discussed, the New York Times reported, citing two people with knowledge of the process. A full sale of the bank is also possible, one of the people said.

The report comes just a day after some of the U.S.'s largest banks agreed to deposit some $30B at First Republic ( FRC ), in an effort to support the bank which has seen a surge in withdrawals. But at the same time the bank said it would suspend its dividend while it focuses on reducing its borrowings and evaluates the composition and size of its balances sheet.

More on the recent banking turmoil:

• SVB Financial files for Chapter 11 bankruptcy protection
• U.S. banking system remains sound, Yellen assures Senate panel
• First Republic Bank plunges amid report it’s evaluating possible sale
• SA contributor The Freedonia Cooperative assesses the fallout from SVB Financial Group's collapse

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