NYSE:FRC

Stock Analysis Report

First Republic Bank

Market Cap

US$15.5b

Last Updated

2019/08/19 00:26 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.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.

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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

-1.4%

NYSE:FRC

-2.5%

US Banks

-0.7%

US Market

1 Year Return

-12.4%

NYSE:FRC

-14.2%

US Banks

-0.5%

US Market

FRC outperformed the Banks industry which returned -14.2% over the past year.

FRC underperformed the Market in United States of America which returned -0.4% over the past year.

Share holder returns

FRCIndustryMarket
7 Day-1.4%-2.5%-0.7%
30 Day-5.1%-6.1%-3.0%
90 Day-8.8%-3.8%0.9%
1 Year-11.7%-12.4%-11.8%-14.2%1.7%-0.5%
3 Year27.5%24.7%42.1%32.4%39.5%30.4%
5 Year96.1%88.0%53.3%36.7%54.1%37.0%

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

2 weeks ago | Simply Wall St

Introducing First Republic Bank (NYSE:FRC), The Stock That Zoomed 108% In The Last Five Years

2 weeks ago | Simply Wall St

Don't Ignore The Fact That This Insider Just Sold Some Shares In First Republic Bank (NYSE:FRC)

1 month ago | Simply Wall St

How Does First Republic Bank (NYSE:FRC) Stand Up To These Simple Dividend Safety Checks?

Valuation

Is First Republic Bank undervalued based on future cash flows and its price relative to the stock market?

18.26x

Price to Earnings (PE) ratio

Intrinsic Value Based on Future Cash Flows

First Republic Bank's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

First Republic Bank's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).

Price Based on Earnings

First Republic Bank is overvalued based on earnings compared to the US Banks industry average.

First Republic Bank is overvalued based on earnings compared to the United States of America market.

Price Based on Expected Growth

First Republic Bank is poor value based on expected growth next year.

Price Based on Value of Assets

First Republic Bank is overvalued based on assets compared to the US Banks industry average.

Next Steps

Future Growth

How is First Republic Bank expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Estimates

Future Annual Growth Analysis

First Republic Bank's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

First Republic Bank's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

First Republic Bank's revenue growth is expected to exceed the United States of America market average.

First Republic Bank's earnings growth is positive but not above the United States of America market average.

First Republic Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.

Earnings per Share Growth Estimates

Future Return on Equity

First Republic Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Next Steps

Past Performance

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

15.6%

Historical annual earnings growth

Earnings and Revenue History

Past Earnings Growth Analysis

First Republic Bank's year on year earnings growth rate has been positive over the past 5 years.

First Republic Bank's 1-year earnings growth is less than its 5-year average (11.3% vs 15.6%)

First Republic Bank's earnings growth has not exceeded the US Banks industry average in the past year (11.3% vs 33.3%).

Return on Equity

First Republic Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Return on Assets

First Republic Bank used its assets less efficiently than the US Banks industry average last year based on Return on Assets.

Return on Capital Employed

Unable to establish if First Republic Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.

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

Information is not available.

Information is not available.

Financial Institutions Analysis

First Republic Bank has an acceptable proportion of non-loan assets held.

First Republic Bank has a sufficient allowance for bad loans.

First Republic Bank's liabilities are made up of primarily low risk sources of funding.

First Republic Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at First Republic Bank are broadly funded by customer deposits.

First Republic Bank has an acceptable level of bad loans (less than 2%).

Next Steps

Dividend

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

0.86%

Expected Dividend Yield

Dividend Yield and Payments Analysis

First Republic Bank's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

First Republic Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

First Republic Bank is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

First Republic Bank is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.

Current Payout to Shareholders

No need to calculate the sustainability of First Republic Bank's dividends as it is not paying a notable one for United States of America.

Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (6.9x coverage).

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?

3.9yrs

Average management tenure

CEO

Jim Herbert (75yo)

34.6yrs

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

Jim's remuneration is about average for companies of similar size in United States of America.

Jim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

Management Age and Tenure

3.9yrs

Average Tenure

49yo

Average Age

The tenure for the First Republic Bank management team is about average.

Board Age and Tenure

8.8yrs

Average Tenure

72.5yo

Average Age

The tenure for the First Republic Bank board of directors is about average.

Insider Trading

First Republic Bank individual insiders have only sold shares in the past 3 months.

Recent Insider Transactions

SellUS$698,62509 Aug 19
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares7,500
Max PriceUS$93.15
SellUS$252,00031 Jul 19
Edward Dobranski
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,520
Max PriceUS$100.00
SellUS$357,30030 Jul 19
Hafize Erkan
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares3,573
Max PriceUS$100.00
SellUS$1,549,97226 Jul 19
David Lichtman
EntityIndividual
Shares15,790
Max PriceUS$99.00
SellUS$383,61918 Jul 19
Stephanie Bontemps
EntityIndividual
Shares4,033
Max PriceUS$95.12
SellUS$624,06020 Apr 19
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares6,000
Max PriceUS$104.01
SellUS$47,05216 Apr 19
David Lichtman
EntityIndividual
Shares459
Max PriceUS$102.51
SellUS$217,99816 Apr 19
James Herbert
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,170
Max PriceUS$100.46
SellUS$385,67610 Apr 19
Frank Fahrenkopf
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,755
Max PriceUS$102.71
SellUS$607,62010 Apr 19
James Herbert
EntityIndividual
Role
Chief Executive Officer
Founder
Shares6,000
Max PriceUS$101.27
SellUS$205,96010 Apr 19
Sandra Hernández
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$102.98
BuyUS$78,19010 Apr 19
Stephanie Bontemps
EntityIndividual
Shares754
Max PriceUS$103.70
SellUS$316,35009 Apr 19
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares3,000
Max PriceUS$105.45
SellUS$519,35027 Feb 19
David Lichtman
EntityIndividual
Shares5,000
Max PriceUS$103.87
SellUS$301,98020 Feb 19
Michael Roffler
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,000
Max PriceUS$100.66
SellUS$12,988,99719 Feb 19
Katherine August-deWilde
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares129,868
Max PriceUS$101.17
SellUS$2,010,60012 Feb 19
David Lichtman
EntityIndividual
Shares20,000
Max PriceUS$100.98
SellUS$597,70008 Feb 19
Edward Dobranski
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares5,977
Max PriceUS$100.00
SellUS$412,98505 Feb 19
James Herbert
EntityIndividual
Role
Chief Executive Officer
Founder
Shares4,197
Max PriceUS$98.40
SellUS$152,71704 Feb 19
Robert Thornton
EntityIndividual
Shares1,552
Max PriceUS$98.40
SellUS$48,11804 Feb 19
Stephanie Bontemps
EntityIndividual
Shares489
Max PriceUS$98.40
SellUS$146,51804 Feb 19
Jason Bender
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,489
Max PriceUS$98.40
SellUS$20,46704 Feb 19
Edward Dobranski
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares208
Max PriceUS$98.40
SellUS$149,86304 Feb 19
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares1,523
Max PriceUS$98.40
SellUS$122,31104 Feb 19
Michael Roffler
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,243
Max PriceUS$98.40
SellUS$80,68804 Feb 19
Mollie Richardson
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares820
Max PriceUS$98.40
SellUS$167,18204 Feb 19
David Lichtman
EntityIndividual
Shares1,699
Max PriceUS$98.40
SellUS$809,70204 Feb 19
Hafize Erkan
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares8,249
Max PriceUS$98.40
SellUS$486,25031 Jan 19
Robert Thornton
EntityIndividual
Shares5,000
Max PriceUS$97.25
SellUS$964,60023 Jan 19
Hafize Erkan
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares10,000
Max PriceUS$96.46
SellUS$188,57302 Jan 19
James Herbert
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,170
Max PriceUS$86.90
SellUS$9,44603 Dec 18
David Lichtman
EntityIndividual
Shares100
Max PriceUS$94.46
SellUS$55,35403 Dec 18
Hafize Erkan
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares586
Max PriceUS$94.46
SellUS$23,42603 Dec 18
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares248
Max PriceUS$94.46
SellUS$38,26305 Nov 18
Olga Tsokova
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares415
Max PriceUS$92.20
SellUS$484,01205 Nov 18
Edward Dobranski
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares5,261
Max PriceUS$92.00
SellUS$360,00016 Oct 18
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares4,000
Max PriceUS$90.00
SellUS$208,32001 Oct 18
James Herbert
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,170
Max PriceUS$96.00

Ownership Breakdown

Management Team

  • Jim Herbert (75yo)

    Founder

    • Tenure: 34.6yrs
    • Compensation: US$11.38m

  • Ed Dobranski (69yo)

    Executive VP

    • Tenure: 27.6yrs
    • Compensation: US$1.11m

  • Mike Selfridge (52yo)

    Chief Banking Officer & Senior EVP

    • Tenure: 7.4yrs
    • Compensation: US$6.08m

  • Jason Bender (50yo)

    Executive VP & COO

    • Tenure: 3.6yrs

  • Olga Tsokova (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 3.9yrs

  • Mike Roffler (48yo)

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$5.40m

  • Hafize Erkan (39yo)

    President & Director

    • Tenure: 0.5yrs
    • Compensation: US$9.05m

  • Mollie Richardson (40yo)

    Chief Administrative Officer

    • Tenure: 3.6yrs

  • Jim Hughes

    Executive VP & Chief Information Officer

    • Tenure: 1.6yrs

  • Michael Ioanilli

    VP & Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Roger Walther (83yo)

    Chairman Emeritus

    • Tenure: 0.0yrs

  • Jim Herbert (75yo)

    Founder

    • Tenure: 34.6yrs
    • Compensation: US$11.38m

  • Katherine August-deWilde (71yo)

    Vice Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$437.20k

  • George Parker (80yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$289.30k

  • Frank Fahrenkopf (80yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: US$303.70k

  • Pamela Joyner (61yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: US$286.40k

  • Sandra Hernández (62yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$291.00k

  • Reynold Levy (74yo)

    Lead Outside Director

    • Tenure: 3.3yrs
    • Compensation: US$337.90k

  • Hafize Erkan (39yo)

    President & Director

    • Tenure: 0.5yrs
    • Compensation: US$9.05m

  • Boris Groysberg (47yo)

    Director

    • Tenure: 4.6yrs
    • 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
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$15.486b
  • Shares outstanding: 168.22m
  • 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.PRDNYSE (New York Stock Exchange)DEP 1/40 PFD D %USUSDApr 2013
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 Analysis2019/08/19 00:26
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.