Lender Touted By Jim Cramer Manages To Strengthen Liquidity Position As Banking Crisis Deepens

Even as the banking crisis widens in the U.S., First Republic Bank FRC said it enhanced and diversified its financial position through 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 JPM.

First Republic's total available unused liquidity to fund operations currently stands at over $70 billion, it said.

The figure excludes additional liquidity the bank is eligible to receive under the new Bank Term Funding Program announced by the Fed, the lender clarified.

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The report would be a big positive for the bank considering it was able to raise funds at a time when the banking industry is once again facing a crisis exacerbated by rising rates.

In times when banks are fearing a potential run in the aftermath of a lender becoming insolvent, the biggest relief to depositors and shareholders always happens to be additional liquidity as trust becomes a scarce commodity.

"First Republic's capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” founder and Executive Chairman Jim Herbert, and CEO Mike Roffler said in a joint statement.

“First Republic continues to fund loans, process transactions and fully serve the needs of clients by delivering exceptional service.”

Shares of First Republic Bank fell as low as $45 on Friday before rebounding and closing at $81.76. Since the release is dated Sunday, it would be interesting to see how the stock reacts when the market opens on Monday.

Last week, prominent market commentator Jim Cramer tweeted that First Republic Bank is the new focus, calling it a "very good bank." Cramer has faced some criticism in the wake of the SVB Financial Group SIVB fallout as he had highlighted SVB as one of the standout S&P 500 stocks in February.

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