Movers: Charles Schwab, Etsy, First Republic, Qualtrics, Signature Bank

Scott Peters
13 Mar, 2023
New York City

Regional and mid-sized banks with large uninsured deposits led the decline for the third day in a row despite the additional assistance provided by the Federal Reserve Bank. 

First Republic Bank plunged 75.6% to $19.95 and the San Francisco-based bank said on Sunday it has received "additional liquidity" from the Federal Reserve Bank and JPMorgan Chase & Co. 

"The total  available, unused liquidity to fund operations is now more than $70 billion. This excludes additional  liquidity First Republic is eligible to receive under the new Bank Term Funding Program announced by  the Federal Reserve today," the bank said in a filing with the SEC on Sunday. 

 “First Republic’s capital and liquidity positions are very strong, and its capital remains well  above the regulatory threshold for well-capitalized banks," added Jim Herbert, Founder and Executive Chairman and Mike Roffler, CEO and President. 

PacWest Bancorp headquartered in Los Angeles, California dropped 42.43% to $7.11 and the Phoenix, Arizona based Western Alliance Bancorp plunged 69% to $15.20. 

JPMorgan Chase decreased 1.6% to $131.60 and Bank of America fell 3.3% to $29.27. 

Signature Bank was halted after regulators seized the crypto-focused bank in New York citing systemic risk. 

Signature Bank had total deposits of $89 billion as of the end of the year 2022 and suffered an outflow of $10 billion in deposits on Friday following the collapse of the Silicon Valley Bank. 

Signature Bank had expanded to crypto assets in 2018 and about 30% of its deposits were linked to crypto currencies. 

Charles Schwab Corporation declined 10.1% to $52.74 following the wider decline in regional banks and the financial services sector. 

Schwab reiterated its financial condition and portfolio of deposits and assets are different from traditional banks. 

"Our banks’ loan-to-deposit ratio is approximately 10% and nearly all the loans are over-collateralized by first-lien mortgages or securities. 

The remainder of our assets are invested in high-quality, liquid securities in either our available-for-sale portfolio, working capital at the parent or broker-dealer subsidiaries, or in our held-to-maturity portfolio," said the company in a statement released on Monday. 

Etsy Inc declined 1.5% to $104.32 after the online marketplace operator said that the collapse of Silicon Valley Bank is causing delays in processing payments but normal processing is expected to resume as early as Monday. 

The processing difficulties for the last three days are not likely to have a material impact on its quarterly results. 

Qualtrics International surged 6.7% to $17.66 after the company agreed to go private for $18.15 a share or $12.5 billion. 

Silver Lake and Canada Pension Plan Investments agreed to acquire 100% of the cloud software firm and SAP agreed to sell its 61% stake on a fully-diluted basis in the company it acquired for $8 billion in 2018. 

Qualtrics stock has declined 33% in the last 52-week of trading.