Market-watchers keep close eye on First Republic as banking fallout continues

Attention has turned to San Francisco-based First Republic Bank after its shares fell starkly Monday in the wake of Silicon Valley Bank’s shutdown, which marked the largest U.S. bank collapse since the 2008 financial crisis. 

Shares in First Republic fell by more than 60 percent, putting it among a number of regional banks who saw their shares drop amid concerns sparked by the abrupt failure of Santa Clara-based Silicon Valley Bank and New York-based Signature Bank. 

Shares in First Republic, which had assets totaling more than $212 billion as of the end of last year, fell despite efforts from the bank’s leadership to reassure customers of its strength.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” leaders said in a statement Sunday, announcing the bank was receiving additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co. 

Reuters reported that about 70 percent of First Republics deposits are uninsured, the third-highest amid medium-sized banks after Silicon Valley and Signature. 

A number of outlets and market-watchers have noted First Republic Bank’s stark drop in shares, and some have asked whether the bank could be next.

California regulators closed down the tech-focused Silicon Valley Bank on Friday, and Signatur shut suddenly on Sunday after a surge of withdraws. The banks’ shutterings have stoked questions and concerns about the state of the broader U.S. banking system.