First Republic Bank shares plunge 60% as fears persist over regional banks

() — Shares of First Republic Bank plunged nearly 60% in premarket trading on Monday, even after the regional lender announced measures to bolster its balance sheet.

Shares of other regional banks and financial firms are also faltering, indicating lingering jitters despite an aggressive federal response announced Sunday night to protect Silicon Valley Bank and Signature Bank clients.

Investors are on high alert for banks with problems similar to those that caused the collapse of Silicon Valley Bank last week.

PacWest Bancorp plunged 35% in premarket trading, while Charles Schwab lost 8%.

San Francisco-based First Republic announced Sunday new funds from the Federal Reserve and JPMorgan Chase to strengthen its balance sheet. The moves mean First Republic now has $70 billion of unused liquidity, power it can use to respond to potential customer withdrawals.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” Jim Herbert, First Republic founder and CEO, and Mike Roffler said in a statement. , its CEO.

First Republic has $213 billion in assets. The lender contacted his clients over the weekend to reassure them.

“In light of recent industry developments, the past few days have caused uncertainty in financial markets,” First Republic senior executives said in an email to clients seen by . “We want to take a moment to reinforce the safety and stability of First Republic, reflected in the continued strength of our capital, liquidity and operations.”

The federal bank bailout announced Sunday should help take some of the pressure off the banking system, Isaac Boltansky, BTIG’s director of policy research, told .

“But it is not a permanent solution and it will not be the final chapter of this story,” he said.