What's Going On With First Republic Bank Stock Today?

First Republic Bank FRC shares are trading significantly higher Tuesday as part of what appears to be a relief rally in the financial sector as several bank names bounce back after facing heavy selling pressure over the last few trading sessions.

What Happened: Several banks sold off following the collapse of SVB Financial Group SIVB last week. 

When inflows turned to outflows, SVB was forced to sell some of its longer-term treasuries at a loss and propose a public offering to cover increased withdrawal requests, which sparked a bank run and ultimately led to its downfall. 

Related Link: Why Silicon Valley Bank Collapsed: A Simple Explainer

The biggest banking collapse since the 2008 financial crisis sparked fears of contagion across the broader financial sector.

Over the weekend, the Fed stepped in to inject liquidity into the situation and announced plans to create a new Bank Term Funding Program centered around protecting institutions

First Republic on Sunday announced that it had received additional funding to strengthen its balance sheet from the Federal Reserve and JP Morgan Chase & Co JPM.

In a statement, Jim Herbert, founder and executive chairman of First Republic, and Mike Roffler, CEO and president of First Republic, said: "First Republic's capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks."

FRC Price Action: First Republic shares fell more than 60% on Monday after giving up more than 30% last week. The stock is bouncing back Tuesday.

First Republic shares were up 47.4% at $45.99 at the time of writing, according to Benzinga Pro.

Photo: courtesy of First Republic.