California bank sees shares rise Tuesday after Monday’s decline
San Francisco-based First Republic bank opened Monday morning with a 70% plunge in its stock prices and ended the day with a 61.8% decline.
But Tuesday was a better day for the bank, which has a branch located at 1200 State St. in Santa Barbara.
First Republic ended Tuesday with a 27.8% gain. At one point, it climbed more than 60%.
And the bank reported on Sunday that it had received additional funding from JPMorgan Chase and the Federal Reserve.
First Republic Bank’s plunge on Monday follows the Silicon Valley Bank collapse last week. But the First Republic Bank decrease was less than the 87% decline experienced by Silicon Valley Bank, which was taken over by the Federal Deposit Insurance Corp.
Bank of America, JP Morgan and other major banks saw their stock prices take a dive last week, but their prices stabilized on Friday.
First Republic Bank has more than 80 branches in seven states and held $176.4 billion in deposits at the end of 2022. Of that, $119.5 billion was uninsured.
According to a report filed with the FDIC, the average deposit size for most First Republic customers is less than $200,000. The average business account holds less than $500,000.
The corporate headquarters of First Republic Bank did not respond Tuesday to the News-Press’ request for comment.
On Monday, President Joe Biden stressed that the banking system is safe, noting steps that were taken to limit the fallout from the collapse of Silicon Valley Bank. Some lawmakers have called for re-examining the rules for midsize banks.
San Francisco Gate reported that First Republic Bank mainly serves wealthy clients and has deposits less concentrated in the tech industry than Silicon Valley Bank did.
“The Tuesday rally is another hopeful sign for markets,” Business Insider reported on Tuesday. “ ‘Big Short’ investor Michael Burry has said he believes there’s little risk of contagion from SVB’s collapse for other stocks.””