FRC - Why First Republic Bank Stock Surged on Wednesday
2023-04-19 18:16:00 ET
Wednesday wasn't exactly a difficult Hump Day for shares of regional American lenders; in fact, it proved to be quite good for them. A prominent one that did rather well was First Republic Bank (NYSE: FRC) , the share price of which shot 12% higher thanks to some very encouraging developments posted by a big peer in its sector.
That peer is Western Alliance Bancorporation , which reported its latest set of quarterly figures after market hours on Tuesday. While the bank didn't come anywhere near the average analyst estimate for revenue despite beating on non- GAAP (adjusted) profitability, neither headline number was the main concern of many investors.
Rather, the top worry with regional banks is their deposit bases. Investors and other bank-watchers fret that depositors will pull their money from lenders seen to be more exposed to risk. With its relatively high exposure to the tech industry, Western Alliance appeared to be a business directly in the firing line.
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Why First Republic Bank Stock Surged on Wednesday