First Republic shares fall more than 20% despite deposit infusion, dragging down regional banks

Shares of First Republic were nether unit Friday contempt the beaten-down determination slope receiving assistance from different fiscal institutions.

As of 11:12 a.m. ET, the banal was down astir 24% and was the worst performer successful the SPDR S&P Regional Banking ETF (KRE) — which dropped 5%. PacWest and Western Alliance besides mislaid much than 13% each, portion KeyCorp slid 8%.

Those losses travel adjacent aft 11 different banks pledged to deposit $30 billion successful First Republic arsenic a ballot of assurance successful the company.

"This enactment by America's largest banks reflects their assurance successful First Republic and successful banks of each sizes, and it demonstrates their wide committedness to helping banks service their customers and communities," the group, which includes Goldman Sachs, Morgan Stanley and Citigroup, said successful a statement.

First Republic Bank continued to crater connected Friday.

To beryllium sure, determination were concerns that the infusion whitethorn not beryllium capable to enactment up First Republic going forward.

Atlantic Equities downgraded First Republic to neutral, noting the slope whitethorn request an further $5 cardinal successful capital. 

"Management is exploring antithetic strategical options which whitethorn see a afloat merchantability oregon divestments of parts of the indebtedness portfolio. The constricted accusation provided implies that the equilibrium expanse has accrued substantially, which whitethorn good necessitate a superior raise," expert John Heagerty wrote.

Meanwhile, Wedbush expert enactment a $5 terms people connected First Republic, saying that a takeover could hitch retired astir of its equity value.

"A distressed M&A merchantability could effect successful minimal, if any, residual worth to communal equity holders owing to FRC's important antagonistic tangible publication worth aft taking into relationship just worth marks connected its loans and securities."

— CNBC's Michael Bloom contributed to this report.