First Republic said Sunday that it had more than US$70 billion ($94.58 billion) in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co. Still, its stock fell 21% Wednesday in New York trading to a decade-low of US$31.16, giving it a market value of US$5.8 billion.
“The additional borrowing capacity from the Federal Reserve, continued access to funding through the Federal Home Loan Bank, and ability to access additional financing through JPMorgan Chase & Co. increases, diversifies and further strengthens First Republic’s existing liquidity profile,” the bank said in Sunday’s statement.
The lender specialises in private banking and wealth management and has made an effort to differentiate itself from Silicon Valley Bank, which has been seized by US regulators. Unlike SVB, which counted startups and venture firms among its biggest clients, First Republic said that no sector represents more than 9% of total business deposits.
