First Republic shares rise more than 20% in volatile trading as regional bank stocks try to rebound
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A First Republic Bank branch in New York, US, on Friday, March 10, 2023. Jeenah Moon | Bloomberg | Getty Images

Shares of First Republic rose sharply on Tuesday as regional banks attempted to rebound from a deep sell-off, but some of the stocks struggled to hold their ground as the day progressed. First Republic ended the day with a 27.8% gain after climbing more than 60% earlier in the session. PacWest was up nearly 34% after following a similar trajectory, and Charles Schwab added about 9%. However, the SPDR S&P Regional Banking ETF (KRE) rose just 2% as other regional banks struggled to hold onto their gains. The volatility was evident in Zions Bancorp. and Western Alliance, which each turned negative briefly in afternoon trading after rising earlier in the session. The banks then finished the day with gains of 4% and 14%, respectively.

Stock Chart Icon Stock chart icon Regional bank stocks saw their rebound shrink on Tuesday afternoon.

Those moves come after regional banks fell sharply Monday, even though U.S. regulators took extraordinary measures to backstop all depositors in the now-failed Silicon Valley Bank. The KRE suffered its biggest one-day loss since March 2020, tumbling 12.3%. First Republic led the way lower on Monday, falling 61.8%. Executive Chairman Jim Herbert told CNBC's Jim Cramer that the bank was not seeing big outflows and was operating as usual. The bank also announced Sunday it received additional liquidity from JPMorgan and the Federal Reserve. After Tuesday's move, First Republic's stock is still down more than 50% for the week.

Stock Chart Icon Stock chart icon First Republic's rebound on Tuesday did not erase all of its losses from the prior day.