Following the closure of Silicon Valley Bank last week, First Republic has seen its stock crash to an all-time low, according to Forbes. Specifically, the report noted shares plummeted another 30% on Thursday, as the California-based bank is “weighing a sale.”
The report notes that the stock plummeted to $22 on Thursday morning before trading was halted on the New York Stock Exchange. Moreover, the drop signifies, “its lowest share price since going public in 2010,” according to Forbes.
First Republic Next to Fall?
The past few weeks have induced new panic in the financial sector, as several US banks have collapsed. Specifically, Silicon Valley Bank and Signature bank were closed by regulators on Sunday. The Federal Reserve announced a ballot procedure to protect depositors of the failed bank.
Per their website, First Republic is a top-25 bank in the US by asset size. They manage $212 billion in assets with $174 billion in deposits as of the end of 2022.
A banking crisis could continue, as First Republic stock has crashed to an all-time low, according to Forbes. Specifically, the report noted that shares for the California-based bank fell 30% on Thursday, reading at $22 before trading was halted on the New York Stock Exchange.
Concerningly, Forbes notes that First Republic shares are down an astronomic 81% since last Wednesday. Subsequently, equating to “by far the largest drop of any S&P 500 constitute in the period even as the index dropped 3% while other bank stocks crashed.”
Additionally, the report notes that the dropping price is connected to investor concerns. Again, the report notes that worry is seeding in “over the company’s future,” following the closure of SVB and Signature Bank. Conversely, First Republic noted on Sunday that it “secured $70 billion in further liquidity from the Federal Reserve.” However, it didn’t keep S&P Global Ratings and Fitch Ratings from lowering the bank’s rating to junk last week.