First Republic's dramatic slide continues, stock falls nearly 30% as bank looks for rescue deal

First Republic's stock sank again on Wednesday as investors kept an eye on a potential rescue deal for the troubled regional bank.

Its shares were down 28% on Wednesday, extending losses of nearly 50% on Tuesday. The stock has fallen more than 90% year to date and hit an all-time low Wednesday, being halted multiple times for volatility.

First Republic's stock was under pressure again on Wednesday.

This week's drop for First Republic comes after the San Francisco-based lender late Monday said it lost roughly 40% of its deposits in the first quarter. First Republic was seen by customers and investors alike as a risky bank after the collapse last month of Silicon Valley Bank, which had a similar financial profile.

First Republic also said in its quarterly report Monday that it was reviewing strategic options to help reshape its balance sheet.

The steep decline in deposits came despite a group of 11 larger banks infusing $30 billion of deposits into First Republic in an attempt to instill confidence and prevent bank runs from spreading. Advisors to First Republic are trying to convince at least a few of those banks to provide further support by buying some of First Republic's assets at above-market rates, CNBC has learned.

Those purchases would result in losses for the other banks, but First Republic's advisors are trying to sell the banks on the idea that letting First Republic fail would be even more expensive if it led to still higher regulatory costs and fees.

If First Republic is successful in selling off some of its assets, it will then look to raise equity, according to sources, which would dilute current shareholders.

Sources told CNBC's David Faber on Wednesday that government officials are currently unwilling to intervene in the First Republic rescue process.

— CNBC's Hugh Son contributed reporting.