Silicon Valley Bank drops another 45%, weighing on the bank sector again

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Shares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again on fears more banks would incur heavy losses on their bond portfolios.

SVB's CEO Greg Becker held a call with clients Thursday evening to calm their fears after a 60% tumble in the stock, CNBC has learned. The shares were down another 45% in premarket trading Friday.

The SPDR S&P Regional Banking ETF was off another 1.5% Friday following an 8% tumble on Thursday. The Financial Select SPDR Fund was down by 1.25% following a 4% decline on Friday. Signature Bank, which does a lot of business with the crypto sector, was off 4% in premarket trading following a 12% tumble Thursday. First Republic Bank was of 3% following a 17% tumble on Thursday.

Major banks were also under pressure with JPMorgan Chase losing another 1% early Friday after tumbling 5% on Thursday.

«Current pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other banks,» wrote analysts Manan Gosalia and Betsy Graseck with Morgan Stanley in a note Friday. «The funding pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other regional banks.»

SVB said in a letter from Becker on Wednesday that it sold «substantially all» of its available-for-sale securities made up of mostly U.S. Treasurys. The bank said it was looking to raise $2.25 billion between common equity and convertible preferred shares. Investment fund General Atlantic has already committed to contribute $500 million.

The bank also previously reported more than $90 billion in held-to-maturity securities, which wouldn't necessarily incur losses unless it was forced to sell