Regulators closed Silicon Valley Bank after deposit outflows and securities losses forced the 16th largest U.S. bank into crisis, rattling the wider lending industry on Friday as shares of several other regional banks came under intense pressure.

SVB's collapse is the largest bank failure since Washington Mutual during the 2008 financial crisis and the second largest behind Washington Mutual in U.S. history.

Shares of SVB Financial (SIVB), parent company of troubled lender Silicon Valley Bank, were halted early Friday before the bank fell under the control of the Federal Deposit Insurance Corporation (FDIC).

SVB stock plummeted 68% during Friday's premarket trading session before the halt. Other halts included Signature Bank (SBNY), a New York institution that serves some cryptocurrency clients. Signature shares resumed trading at 10:28 New York time. They rose to a high of $89.59 before dropping more than 22% through Friday to trade at $70.42.

"There are recent developments that concern a few banks that I'm monitoring very carefully," Treasury Secretary Janet Yellen said of the situation Friday.

Concerns about the banking industry spread across the lending world Friday as investors turned their focus to several other regional banks. First Republic Bank (FRC), a San Francisco lender that serves some companies in the venture world and also targets high-net worth clients from the tech industry, saw shares fall as much as 49% early Friday.

It released a filing Friday stating its "deposits base is strong and very-well diversified," with no sector representing more than 9% of total deposits. Technology-related deposits account for 4% of total deposits while real estate has the largest share. The bank said its investment portfolio is less than 15% of total bank assets with less than 2% categorized as available for sale. A key capital ratio was 8.51%, according to its 2022 annual report.

"First Republic has consistently maintained a strong capital position with capital levels significantly higher than the regulatory requirements for being considered well-capitalized," the bank said.

That didn't stop investors from punishing the stock. After being halted 13 times between 9:30 a.m. and 12:26 p.m., First Republic Bank shares lost 14.8% through the day to close at $81.76 per share.

Regional banks Western Alliance Bancorp (WAL) and PacWest Bancorp (PACW) were also under scrutiny Friday. Western Alliance Bancorp (WAL) fell 20.88% after being halted 20 different times on the NYSE. PacWest Bancorp (PACW) sold off 37.91% after half as many halts.