First Republic Bank
Market Cap
US$20.1b
Last Updated
2020/02/21 00:45 UTC
Data Sources
Company Financials +
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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable track record.
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
Stable Share Price: FRC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.03%
FRC
-0.3%
US Banks
0.06%
US Market
1 Year Return
13.5%
FRC
11.1%
US Banks
19.3%
US Market
Return vs Industry: FRC exceeded the US Banks industry which returned 11.1% over the past year.
Return vs Market: FRC underperformed the US Market which returned 19.3% over the past year.
Shareholder returns
| FRC | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.03% | -0.3% | 0.06% |
| 30 Day | 0.3% | -0.5% | 1.7% |
| 90 Day | 8.6% | 0.6% | 9.0% |
| 1 Year | 14.3%13.5% | 14.4%11.1% | 21.8%19.3% |
| 3 Year | 26.2%23.5% | 24.7%15.7% | 49.5%39.9% |
| 5 Year | 114.9%106.5% | 74.9%55.1% | 73.1%54.1% |
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
1 week ago | Simply Wall St
The Executive VP & COO of First Republic Bank (NYSE:FRC), Jason Bender, Just Sold 27% Of Their Holding2 weeks ago | Simply Wall St
Here's Why I Think First Republic Bank (NYSE:FRC) Is An Interesting Stock1 month ago | Simply Wall St
First Republic Bank Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For Next YearValuation
Is First Republic Bank undervalued compared to its fair value and its price relative to the market?
22.42x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FRC ($117.69) is trading above our estimate of fair value ($93.38)
Significantly Below Fair Value: FRC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FRC is poor value based on its PE Ratio (22.4x) compared to the Banks industry average (12.6x).
PE vs Market: FRC is poor value based on its PE Ratio (22.4x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: FRC is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: FRC is overvalued based on its PB Ratio (2.3x) 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 19 analysts?
9.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FRC's forecast earnings growth (9.7% per year) is above the savings rate (1.7%).
Earnings vs Market: FRC's earnings (9.7% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: FRC's earnings are forecast to grow, but not significantly.
Revenue vs Market: FRC's revenue (12.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: FRC's revenue (12.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FRC's Return on Equity is forecast to be low in 3 years time (10.4%).
Next Steps
Past Performance
How has First Republic Bank performed over the past 5 years?
15.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FRC has high quality earnings.
Growing Profit Margin: FRC's current net profit margins (26.9%) are higher than last year (26.8%).
Past Earnings Growth Analysis
Earnings Trend: FRC's earnings have grown by 15.4% per year over the past 5 years.
Accelerating Growth: FRC's earnings growth over the past year (10.7%) is below its 5-year average (15.4% per year).
Earnings vs Industry: FRC earnings growth over the past year (10.7%) underperformed the Banks industry 12.2%.
Return on Equity
High ROE: FRC's Return on Equity (9.4%) is considered low.
Return on Assets
Return on Capital Employed
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 has a low level of unsold assets or inventory.
Debt Coverage by Assets: FRC's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: FRC's level of assets compared to its equity is moderate.
Allowance for Bad Loans: FRC has a sufficient allowance for bad loans.
Low Risk Liabilities: FRC's liabilities are made up of primarily low risk sources of funding.
Loan Level: FRC has an acceptable proportion of non-loan assets held.
Low Risk Deposits: FRC's loans are broadly funded by customer deposits.
Level of Bad Loans: FRC 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?
0.65%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FRC's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: FRC's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (3.71%).
Stability and Growth of Payments
Stable Dividend: FRC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: FRC 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 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's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Jim Herbert (75yo)
35.1yrs
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 ($USD10.79M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 35.1yrs | US$11.38m | 0.58% $117.4m | |
| President & Director | 1yrs | US$9.05m | 0.0068% $1.4m | |
| Executive VP & CFO | 5.1yrs | US$5.40m | 0.026% $5.3m | |
| Chief Banking Officer & Senior EVP | 7.9yrs | US$6.08m | 0.019% $3.8m | |
| Executive VP & COO | 4.1yrs | no data | 0.024% $4.8m | |
| Senior VP & Chief Accounting Officer | 4.4yrs | no data | 0.0018% $368.5k | |
| Executive VP & Chief Information Officer | 2.1yrs | no data | no data | |
| Chief Administrative Officer | 4.1yrs | no data | 0.0079% $1.6m | |
| VP & Director of Investor Relations | 0yrs | no data | no data | |
| Executive VP | 28.1yrs | US$1.11m | 0.00058% $116.8k |
4.4yrs
Average Tenure
49yo
Average Age
Experienced Management: FRC's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 35.1yrs | US$11.38m | 0.58% $117.4m | |
| President & Director | 1yrs | US$9.05m | 0.0068% $1.4m | |
| Chairman Emeritus | 0yrs | no data | no data | |
| Vice Chairman of the Board | 4.1yrs | US$437.20k | 0.11% $22.8m | |
| Independent Director | 10.1yrs | US$289.30k | 0.017% $3.4m | |
| Independent Director | 10.1yrs | US$303.70k | 0.018% $3.6m | |
| Independent Director | 10.1yrs | US$286.40k | 0.026% $5.2m | |
| Independent Director | 9.3yrs | US$291.00k | 0.0085% $1.7m | |
| Lead Outside Director | 3.8yrs | US$337.90k | 0.0071% $1.4m | |
| Independent Director | 5.1yrs | US$271.00k | 0.0049% $990.9k |
9.3yrs
Average Tenure
72.5yo
Average Age
Experienced Board: FRC's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FRC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.
Top Shareholders
Company Information
First Republic Bank's company bio, employee growth, exchange listings and data sources
Key Information
- Name: First Republic Bank
- Ticker: FRC
- Exchange: NYSE
- Founded: 1985
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$20.139b
- Shares outstanding: 171.12m
- Website: https://www.firstrepublic.com
Number of Employees
Location
- First Republic Bank
- 111 Pine Street
- 2nd Floor
- San Francisco
- California
- 94111
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FRC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2010 |
| FRC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 2010 |
| 81R | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2010 |
| FRC.PRF | NYSE (New York Stock Exchange) | DEP SHS 1/40 P | US | USD | May 2015 | |
| FRC.PRG | NYSE (New York Stock Exchange) | DEP PFD SER G | US | USD | Feb 2016 | |
| FRC.PRH | NYSE (New York Stock Exchange) | DEP SHS RP PFD H | US | USD | May 2017 | |
| FRC.PRI | NYSE (New York Stock Exchange) | 5.5% NON CUM PERP REP SER I | US | USD | Jun 2018 | |
| F1RC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 2020 |
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 States. It operates through two segments, Commercial Banking and Wealth Management. The company offers deposit products, such as checking, money market checking, savings, passbook deposits, and individual retirement accounts, as well as certificates of deposit. It also provides a range of lending products that comprise residential mortgage loans, home equity lines of credit, multifamily loans, commercial real estate loans, personal loans, business loans, and smaller loans and lines of credit to businesses and individuals. The company’s loans are secured by single family residences, multifamily buildings, and commercial real estate properties. In addition, it provides wealth management services, which include various investment strategies and products, online investment management services, trust and custody services, online brokerage, financial and estate planning, and access to alternative investments, as well as investing, insurance, and foreign exchange services; and treasury management services. Additionally, the company offers online and mobile banking services; student loan refinancing services; and ATM and debit cards. As of December 31, 2018, the company offered its services through 82 offices, including 75 preferred banking licensed deposit-taking offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; Jackson; and Wyoming, as well as 7 offices that provided lending, wealth management, and trust services. First Republic Bank was founded in 1985 and is headquartered in San Francisco, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 00:45 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.