NYSE:FRC.PRG

Stock Analysis Report

Executive Summary

First Republic Bank, together with its subsidiaries, provides private banking, private business banking, real estate lending, and wealth management services to clients in metropolitan areas in the United States.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has First Republic Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.2%

FRC.PRG

2.9%

US Banks

0.07%

US Market


1 Year Return

10.9%

FRC.PRG

8.6%

US Banks

8.9%

US Market

Return vs Industry: FRC.PRG exceeded the US Banks industry which returned 8.6% over the past year.

Return vs Market: FRC.PRG exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

FRC.PRGIndustryMarket
7 Day0.2%2.9%0.07%
30 Day1.9%3.4%-0.3%
90 Day1.7%2.1%-1.6%
1 Year17.1%10.9%11.8%8.6%11.3%8.9%
3 Year15.5%-2.0%54.8%44.1%46.3%36.8%
5 Yearn/a70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is First Republic Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is First Republic Bank undervalued compared to its fair value and its price relative to the market?

20.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRC.PRG ($26.14) is trading above our estimate of fair value ($17.67)

Significantly Below Fair Value: FRC.PRG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FRC.PRG is poor value based on its PE Ratio (20.6x) compared to the Banks industry average (12.6x).

PE vs Market: FRC.PRG is poor value based on its PE Ratio (20.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FRC.PRG is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: FRC.PRG is overvalued based on its PB Ratio (2.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Republic Bank forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRC.PRG's forecast earnings growth (9.1% per year) is above the savings rate (2.7%).

Earnings vs Market: FRC.PRG's earnings (9.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: FRC.PRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: FRC.PRG's revenue (11.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FRC.PRG's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRC.PRG's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has First Republic Bank performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRC.PRG's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: FRC.PRG's earnings growth over the past year (13.1%) is below its 5-year average (15.5% per year).

Earnings vs Industry: FRC.PRG earnings growth over the past year (13.1%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: FRC.PRG's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: FRC.PRG's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate FRC.PRG's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is First Republic Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FRC.PRG has a low level of unsold assets or inventory.

Debt Coverage by Assets: FRC.PRG's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: FRC.PRG's level of assets compared to its equity is moderate.

Allowance for Bad Loans: FRC.PRG has a sufficient allowance for bad loans.

Low Risk Liabilities: FRC.PRG's liabilities are made up of primarily low risk sources of funding.

Loan Level: FRC.PRG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FRC.PRG's loans are broadly funded by customer deposits.

Level of Bad Loans: FRC.PRG has an appropriate level of bad loans (0.16%)


Next Steps

Dividend

What is First Republic Bank's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FRC.PRG's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FRC.PRG's dividend (0.72%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: FRC.PRG is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: FRC.PRG is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FRC.PRG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FRC.PRG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of First Republic Bank's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Jim Herbert (75yo)

34.8yrs

Tenure

US$11,383,073

Compensation

Mr. James H. Herbert, II, also known as Jim, serves as a Member of the Federal Advisory Council at Federal Reserve Bank of San Francisco since April 12, 2018. He co-founded First Republic Bank in 1985 and  ...


CEO Compensation Analysis

Compensation vs. Market: Jim's total compensation ($USD11.38M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.1yrs

Average Tenure

49yo

Average Age

Experienced Management: FRC.PRG's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

72.5yo

Average Age

Experienced Board: FRC.PRG's board of directors are considered experienced (9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jim Herbert (75yo)

    Founder

    • Tenure: 34.8yrs
    • Compensation: US$11.38m
  • Ed Dobranski (69yo)

    Executive VP

    • Tenure: 27.8yrs
    • Compensation: US$1.11m
  • Mike Selfridge (52yo)

    Chief Banking Officer & Senior EVP

    • Tenure: 7.6yrs
    • Compensation: US$6.08m
  • Jason Bender (50yo)

    Executive VP & COO

    • Tenure: 3.8yrs
  • Olga Tsokova (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.1yrs
  • Mike Roffler (48yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$5.40m
  • Hafize Erkan (39yo)

    President & Director

    • Tenure: 0.7yrs
    • Compensation: US$9.05m
  • Mollie Richardson (40yo)

    Chief Administrative Officer

    • Tenure: 3.8yrs
  • Jim Hughes

    Executive VP & Chief Information Officer

    • Tenure: 1.8yrs
  • Michael Ioanilli

    VP & Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Roger Walther (83yo)

    Chairman Emeritus

    • Tenure: 0yrs
  • Jim Herbert (75yo)

    Founder

    • Tenure: 34.8yrs
    • Compensation: US$11.38m
  • Katherine August-deWilde (71yo)

    Vice Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$437.20k
  • George Parker (80yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$289.30k
  • Frank Fahrenkopf (80yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$303.70k
  • Pamela Joyner (61yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$286.40k
  • Sandra Hernández (62yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$291.00k
  • Reynold Levy (74yo)

    Lead Outside Director

    • Tenure: 3.4yrs
    • Compensation: US$337.90k
  • Hafize Erkan (39yo)

    President & Director

    • Tenure: 0.7yrs
    • Compensation: US$9.05m
  • Boris Groysberg (47yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$271.00k

Company Information

First Republic Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Republic Bank
  • Ticker: FRC.PRG
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$17.894b
  • Shares outstanding: 168.45m
  • Website: https://www.firstrepublic.com

Number of Employees


Location

  • First Republic Bank
  • 111 Pine Street
  • 2nd Floor
  • San Francisco
  • California
  • 94111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRCNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2010
FRC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2010
81RDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2010
FRC.PRFNYSE (New York Stock Exchange)DEP SHS 1/40 PUSUSDMay 2015
FRC.PRGNYSE (New York Stock Exchange)DEP PFD SER GUSUSDFeb 2016
FRC.PRHNYSE (New York Stock Exchange)DEP SHS RP PFD HUSUSDMay 2017
FRC.PRINYSE (New York Stock Exchange)5.5% NON CUM PERP REP SER IUSUSDJun 2018

Biography

First Republic Bank, together with its subsidiaries, provides private banking, private business banking, real estate lending, and wealth management services to clients in metropolitan areas in the United S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:26
End of Day Share Price2019/10/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.