First Republic Bank reportedly exploring its options, including a possible sale

Last Updated: March 15, 2023 at 8:24 p.m. ET First Published: March 15, 2023 at 8:16 p.m. ET

By

Mike Murphy

First Republic Bank shares have plunged 73% over the past five trading days.
AFP/Getty Images

Embattled First Republic Bank is exploring its strategic options, including a potential sale, according to a new report.

Citing sources with knowledge of the matter, Bloomberg News reported late Wednesday that the San Francisco-based bank is also looking for ways to improve its liquidity, and noted that a potential sale would likely draw interest from larger rivals. The report added that no decision has been reached and First Republic may decide to remain independent.

A spokesperson for First Republic declined comment to MarketWatch.

Earlier Wednesday, S&P Global Ratings downgraded First Republic’s debt rating to “junk,” while Fitch Ratings also issued a downgrade.

See more: First Republic Bank downgraded to ‘junk’ by S&P and Fitch on fears further deposit flight will hurt profitability

First Republic stock FRC, -21.37% fell 21.4% to end trading Wednesday at $31.16, an 11-year low. Its shares have plunged 73% over the past five trading days, as midsized banks have been rocked by the sudden failures of Silicon Valley Bank and Signature Bank of New York.

On Sunday, First Republic said it had bolstered its financial position through “additional liquidity” from the Federal Reserve and JPMorgan Chase & Co. JPM, -4.72%, giving it more than $70 billion in unused liquidity.

“The additional borrowing capacity…increases, diversifies, and further strengthens First Republic’s existing liquidity profile,” the bank said in a statement Sunday.