First Republic Bank stock fell 58% premarket on regional bank contagion fears

First Republic Bank (FRC) stock is down 60% pre-market despite recent measures by US regulators to bolster confidence in the banking system following the collapse of Silicon Valley Bank.

On Sunday, First Republic announced that it had accessed additional liquidity from the Federal Reserve Bank and JPMorgan Chase.

“Total available unused liquidity to fund operations is now more than $70 billion. This excludes additional liquidity that First Republic is eligible to receive under the new Bank Term Funding Program announced by the Federal Reserve today,” said First Republic.

The bank’s uninsured deposits at the end of 2022 totaled $119.5 billion, or 67% of its total deposits, according to the bank’s financial statements.

First Republic’s announcement came after San Francisco-based peer SVB, owned by Silicon Valley Financial (SIVB), was shut down by regulators last Friday as depositors flocked to get their money out. Many of Silicon Valley Bank’s clients were startups and venture capital firms with accounts well in excess of $250,000, the amount normally insured by the Federal Deposit Insurance Corporation, or FDCI.

On Sunday, financial regulators said SVB’s depositors would be made whole and announced new facilities to stop payouts of deposits across the banking system.

“Today, we are taking decisive action to protect the American economy by strengthening public confidence in our banking system,” said the joint statement from US Treasury Secretary Janet Yellen, Fed Chair Jerome Powell and FDIC Chairman Martin Gruenberg

Regulators also announced a systemic risk exemption for Signature Bank ( SBNY ), which was shut down Sunday by its state charter authority.

Regional lenders PacWest Bancorp ( PACW ) and Western Alliance ( WAL ) are also down more than 35% and 50%, respectively.

Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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