First Republic Bank stock fell about 30% in Tuesday’s trading, dragging other regional banks down with it.
First Republic (stock ticker: FRC) was prompted by its first-quarter earnings report, which revealed the size of deposit losses.
The stock is on track to drop by the most since March 20, when it fell 47%, and at $11.25 it’s now close to…
First Republic Bank stock fell about 30% in Tuesday’s trading, dragging other regional banks down with it.
First Republic (stock ticker: FRC) was prompted by its first-quarter earnings report, which revealed the size of deposit losses.
The stock is on track to drop by the most since March 20, when it fell 47%, and at $11.25 it is now close to a record low.
Results published after the bell on Monday showed the lender had to borrow at high rates from the Federal Reserve and others to cover huge outflows. While the turmoil surrounding bank stocks has mostly subsided after the failures of Silicon Valley Bank and Signature Bank, the First Republic report threatens to shake confidence again.
The concern is that other regional banks may face similar financing problems. Northern Trust (NTRS) is down more than 9% in recent trading, the second-worst performance on record
Standard & Poor’s 500
on Tuesday and is on track to post its worst percentage decline since March 16, 2020.
The SPDR S&P Regional Banking Exchange Traded Fund (KRE) is down 2.3% in recent trading. PacWest Bancorp (PACW) declined 4.3%. Western Alliance Bancorp (WAL) fell 4%, and Zions Bancorp (ZION) fell 3.2%.
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KeyCorp (KEY) stock fell 4.6%, and Comerica (CMA) stock fell 4.2%.
Regional banks generally reported mixed results for the first quarter. Western Alliance managed to beat expectations last week, but Zions and KeyCorp missed out.
In Europe, the UBS Group (UBS) reported a Sharp drop in profits after agreeing to take over rival Credit Suisse Group (CS) in a state-brokered deal when it faced collapse last month. UBS’s American Depositary Receipts fell 3.4%.
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