First Republic Stock Falls Again. But PacWest, Other Regiona

First Republic Stock Falls Again. But PacWest, Other Regional Banks Boosted by Deposit Inflows.

S hares of First Republic Bank fell again in the Wednesday premarket after having plunged to a record low following its results.

First Republic (ticker: FRC) was down 2% at $7.97 in premarket trading after dropping 49% Tuesday. The lender had said that its deposits declined more than 40% in the first quarter and revealed plans to cut as much as 25% of its workforce. The bank is also looking to sell $50 billion to $100 billion in assets to shrink its balance sheet, Bloomberg reported. First Republic was contacted for a comment. 

The report from First Republic reignited the market jitters that plagued regional banks in March after Silicon Valley Bank and Signature Bank (SBNY) failed. While calm was restored after the Federal Reserve created a new tool to give banks more liquidity, and larger lenders led by JPMorgan Chase (JPM) added deposits at First Republic, the latest disclosures have shaken confidence again.

Other regional banks now appear to be benefiting from withdrawals at First Republic. PacWest Bancorp (PACW) was up 18.4% after it said its deposit balance had increased by $1.8 billion in the past few weeks. Western Alliance (WAL) rose 1.8% in early trading after saying last week that inflows had picked up.

Other regional lenders, which had been dragged down by First Republic on concerns about contagion, aren’t moving as much. Zions Bancorp (ZION) was flat and KeyCorp (KEY) climbed about 0.4%.

Write to Brian Swint at [e-mail]