Why First Republic Bank Stock (FRC) Is Getting Hammered

First Republic Bank FRC shares are trading lower by 19.26% to $4.99 Friday morning following a report suggesting the most likely outcome for the bank is FDIC receivership.

What's Going On?

Per a report by CNBC, sources familiar with the matter said that "the most likely outcome for the troubled bank is for the Federal Deposit Insurance Corporation to take it into receivership." The stock has been halted twice for volatility Friday morning following the report.

First Republic shares are lower by a marked 96% on a year-to-date basis amid a loss in confidence in regional banks following the collapse of Silicon Valley Bank and Signature Bank.

See Also: Is First National Bank Headed Below $3? A Look At The Technicals

FRC on Monday announced a decline in deposits and revenue for the first quarter and said it will reduce its workforce by 20-25%.

The company also on Monday also said it would not take questions on its conference call and withdrew all previous guidance.

With a number of headlines impacting the stock this week, among the most notable this week was FRC's announcement of an unprecedented deposit outflow of $100 billion in the quarter, excluding $30 billion in time deposits obtained from major U.S. banks.

Additionally, the U.S. government said earlier this week it is unwilling to inject additional capital into First Republic Bank, CNBC reported Wednesday, after the bank lost $100 billion in deposits during the first quarter...Read More

According to data from Benzinga Pro, FRC has a 52-week high of $171.09 and a 52-week low of $4.60.