Shares of First Republic Bank (NYSE:FRC) cratered by more than 75% at the time of writing, which can be attributed to contagion fears from the collapse of Silicon Valley Bank (NASDAQ:SIVB). It also didn’t help that First Republic caught a downgrade from analyst David Long of Raymond James, who changed his rating from Buy to Hold.
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Long believes that “deposit balances will remain under pressure,” which will impact the company’s earnings power. Nevertheless, he still believes that FRC will eventually return to growth and profitability.
Furthermore, the bank was able to secure some additional liquidity over the weekend from JPMorgan Chase (NYSE:JPM) and the Federal Reserve, thus bringing its total unused liquidity to $70 billion.
A look at the past five trading days shows just how quickly things can go south in the stock market. FRC was a $115 stock just last week but is now hovering under $20 per share, equating to an 82.69% drop over this timeframe.
