First Republic Bank stock plunges 60% as regional bank fears continue

(CNN) -- First Republic Bank shares plunged by about 60% in premarket trading on Monday even after the regional lender announced steps to shore up its balance sheet.

Shares of other regional banks and financial firms are also stumbling, signaling continued nervousness despite the aggressive federal response announced Sunday night to protect depositors at Silicon Valley Bank and Signature Bank.

Investors are on high-alert for banks with similar issues to the ones that collapsed Silicon Valley Bank last week.

PacWest Bancorp tumbled 35% in premarket trading, while Charles Schwab lost 8%.

San Francisco-based First Republic announced fresh funding from the Federal Reserve and JPMorgan Chase on Sunday to strengthen its balance sheet. The moves mean First Republic now has $70 billion in unused liquidity, firepower it can use to respond to potential customer withdrawals.

"First Republic's capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks," Jim Herbert, First Republic's founder and executive chairman, and CEO Mike Roffler said in a statement.

First Republic lists $213 billion in assets. The lender reached out to customers over the weekend in a bid to reassure them.

"In light of recent industry events, the last few days have caused uncertainty in the financial markets," First Republic senior executives said in an email to clients viewed by CNN. "We want to take a moment to reinforce the safety and stability of First Republic, reflected in the continued strength of our capital, liquidity and operations."

The federal bank rescue announced Sunday should help ease some of the pressure on the banking system, Isaac Boltansky, director of policy research at BTIG, told CNN.

"But this is not a permanent solution and this will not be the final chapter in this story," he said.