First Republic Says Everything Is Fine. Why the Stock Market Is Worried.

First Republic Bank

worked to reassure clients about the safety of its business Sunday evening after the collapse of Silicon Valley Bank last week sparked fears of contagion in the banking industry.

“In light of recent industry events, the last few days have caused uncertainty in the financial markets. 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,” Chairman Jim Herbert and CEO Mike Roffler wrote in a letter to clients that was posted to the bank’s website.