Wednesday, July 24, 2024

First Republic shares fell again, while other regional banks rose

Shares of First Republic Bank fell again in the premarket on Wednesday after hitting record lows following its results.

First Republic (ticker: FRC ) fell 2% to $7.97 in premarket trading after plunging 49% on Tuesday. The lender had said its deposits fell more than 40% in the first quarter and revealed plans to cut up to 25% of its workforce. The bank is looking to sell $50 billion to $100 billion in assets to shrink its balance sheet, Bloomberg reported. First Republic has been contacted for comment…

Shares of First Republic Bank fell again in the premarket on Wednesday after hitting record lows following its results.

First Republic (ticker: FRC ) fell 2% to $7.97 in premarket trading after plunging 49% on Tuesday. The lender had said its deposits fell more than 40% in the first quarter and revealed plans to cut up to 25% of its workforce. The bank is looking to sell $50 billion to $100 billion in assets to shrink its balance sheet, Bloomberg reported. First Republic has been contacted for comment.

First Republic’s report reignited the market jitters that hit regional banks in March after the failure of Silicon Valley Bank and Signature Bank ( SBNY ). Calm returned after the Federal Reserve created a new tool to provide banks with more liquidity, and big lenders led by JPMorgan Chase (JPM) added deposits to the First Republic, with recent revelations shaking confidence again.

Other regional banks are now benefiting from the withdrawal at First Republic. PacWest Bancorp ( PACW ) jumped 18.4% after it said its deposit balances increased by $1.8 billion over the past few weeks. Western Alliance ( WAL ) rose 1.8% in early trade after it said inflows picked up last week.

Other regional lenders, dragged down by First Republic because of contagion concerns, haven’t moved as much. Zions Bancorp ( ZION ) was flat and KeyCorp ( KEY ) rose about 0.4%.

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Write to Brian Swint at [email protected]

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