First Republic shares fall despite the deposit infusion, dragging other regional banks down with them

shares of First Republic were under pressure on Friday even though the ailing regional bank received help from other financial institutions.

As of 1:39 p.m. ET, the stock was down about 24% and was the year’s worst performer SPDR S&P Regional Banking ETF (KRE) – which declined 5.7%. PacWest And Western Alliance lost more than 15% each KeyCorp 8% slipped.

Those losses come even after 11 other banks pledged to pay $30 billion into First Republic as a vote of confidence in the company.

“This action by America’s largest banks reflects their trust in First Republic and in banks of all sizes, and demonstrates their deep commitment to helping banks serve their customers and communities,” said the group, which includes Goldman Sachs, Morgan Stanley and Citigroup include in a statement.

Of course, there were concerns that the infusion might not be enough to shore up First Republic going forward.

Atlantic Equities downgraded First Republic to neutral, noting that the bank may need $5 billion in additional capital.

“Management is evaluating various strategic options, which may include a complete sale or the sale of parts of the loan portfolio. The limited information provided suggests that the balance sheet has increased significantly, which may well necessitate a capital increase,” wrote analyst John Heagerty.

Meanwhile, analysts at Wedbush have set a $5 price target for First Republic, stating that an acquisition could wipe out most of its stock value.

“A distressed M&A sale could result in minimal, if any, residual value for common shareholders due to FRC’s significant negative tangible book value after accounting for fair value valuations of its loans and securities.”

– CNBC’s Michael Bloom contributed to this report.