NYSE:FRC

Stock Analysis Report

First Republic Bank

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 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

FRCIndustryMarket
7 Day-0.03%-0.3%0.06%
30 Day0.3%-0.5%1.7%
90 Day8.6%0.6%9.0%
1 Year14.3%13.5%14.4%11.1%21.8%19.3%
3 Year26.2%23.5%24.7%15.7%49.5%39.9%
5 Year114.9%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

Valuation

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

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0.7%

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

NamePositionTenureCompensationOwnership
James Herbert
Founder35.1yrsUS$11.38m0.58% $117.4m
Hafize Erkan
President & Director1yrsUS$9.05m0.0068% $1.4m
Michael Roffler
Executive VP & CFO5.1yrsUS$5.40m0.026% $5.3m
Michael Selfridge
Chief Banking Officer & Senior EVP7.9yrsUS$6.08m0.019% $3.8m
Jason Bender
Executive VP & COO4.1yrsno data0.024% $4.8m
Olga Tsokova
Senior VP & Chief Accounting Officer4.4yrsno data0.0018% $368.5k
Jim Hughes
Executive VP & Chief Information Officer2.1yrsno datano data
Mollie Richardson
Chief Administrative Officer4.1yrsno data0.0079% $1.6m
Michael Ioanilli
VP & Director of Investor Relations0yrsno datano data
Edward Dobranski
Executive VP28.1yrsUS$1.11m0.00058% $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

NamePositionTenureCompensationOwnership
James Herbert
Founder35.1yrsUS$11.38m0.58% $117.4m
Hafize Erkan
President & Director1yrsUS$9.05m0.0068% $1.4m
Roger Walther
Chairman Emeritus0yrsno datano data
Katherine August-deWilde
Vice Chairman of the Board4.1yrsUS$437.20k0.11% $22.8m
George Parker
Independent Director10.1yrsUS$289.30k0.017% $3.4m
Frank Fahrenkopf
Independent Director10.1yrsUS$303.70k0.018% $3.6m
Pamela Joyner
Independent Director10.1yrsUS$286.40k0.026% $5.2m
Sandra Hernández
Independent Director9.3yrsUS$291.00k0.0085% $1.7m
Reynold Levy
Lead Outside Director3.8yrsUS$337.90k0.0071% $1.4m
Boris Groysberg
Independent Director5.1yrsUS$271.00k0.0049% $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

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
F1RC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:45
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.