The decline of the first share of the Republic after the flight of depositors

First Republic Bank stock fell on Tuesday after it said depositors withdrew more than $100 billion during a crisis last month, with fears it could be the third bank to fail after the collapse of the bank. Silicon Valley Bank and signature bank.

The San Francisco bank said late Monday that it was only able to Stop the bleeding After a group of large banks intervened to save him by pumping $30 billion into unsecured deposits.

First Republic shares fell more than 49 percent on Tuesday, closing at $8.10.

First Republic had nearly $290 billion in assets as of March 31, making it more than SVB at the time of its failure. The ailing bank said it now plans to sell assets and restructure its balance sheet, and lay off up to a quarter of its workforce, which totaled about 7,200 employees, at the end of 2022.

“With a still significant level of uncertainty in expected results and losses beyond next year, we recommend investors sell stocks as the outlook seems highly uncertain,” Citi analyst Arin Ciganovich said in a note to clients.

Other regional banks came under pressure on a bearish day for the markets. The S&P 500 lost 1.2% in the early afternoon on Tuesday. The Dow Jones fell 0.8 percent and the Nasdaq Technology Index fell 1.5 percent.

Prior to the failure of Silicon Valley Bank, First Republic had a banking franchise that was the envy of most of the industry. Its clients, most of whom were rich and powerful, rarely defaulted on their loans. The bank made much of its money by offering low-cost loans to the wealthy, which reportedly included Meta Platforms CEO Mark Zuckerberg.

But its privilege became a commitment when bank clients and analysts noticed that the vast majority of First Republic deposits, like those in Silicon Valley and Signature Bank, were uninsured — well above the $250,000 limit set by the FDIC. If First Republic fails, depositors run the risk of not getting all of their money back.

First Republic reported first-quarter results on Monday that showed it had $173.5 billion in deposits before the Silicon Valley bank failure on March 9. On April 21, it had $102.7 billion in deposits, including $30 billion deposited by major banks. It said its deposits had been relatively stable since late March.