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FRC

First Republic Bank NYSE:FRC Stock Report

Last Price

US$163.96

Market Cap

US$29.8b

7D

0.8%

1Y

-19.5%

Updated

06 Aug, 2022

Data

Company Financials +
FRC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

FRC Stock Overview

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

First Republic Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for First Republic Bank
Historical stock prices
Current Share PriceUS$163.96
52 Week HighUS$222.86
52 Week LowUS$133.37
Beta1.11
1 Month Change8.45%
3 Month Change13.15%
1 Year Change-19.53%
3 Year Change73.72%
5 Year Change68.39%
Change since IPO487.25%

Recent News & Updates

Aug 02

First Republic Bank prices ~$353.3M stock offering

First Republic Bank (NYSE:FRC) shares dropped ~3% pre-market on Tuesday after the firm priced its underwritten public offering of 2.25M shares of its common stock at ~$157/share for expected gross proceeds of ~$353.3M. Underwriters have been granted a 30-day option to purchase up to an additional 337,500 shares from First Republic. Net proceeds from the offering will be used for general corporate purposes, which may include, among other things, funding loans or purchasing investment securities for its portfolio. The offering is expected to close on or about August 4, 2022.

Shareholder Returns

FRCUS BanksUS Market
7D0.8%0.3%1.0%
1Y-19.5%-14.1%-12.9%

Return vs Industry: FRC underperformed the US Banks industry which returned -14.1% over the past year.

Return vs Market: FRC underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is FRC's price volatile compared to industry and market?
FRC volatility
FRC Average Weekly Movement4.4%
Banks Industry Average Movement3.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: FRC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FRC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19856,452Mike Rofflerhttps://www.firstrepublic.com

First Republic Bank, together with its subsidiaries, provides private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. It operates in two segments, Commercial Banking and Wealth Management. The company accepts deposit products, such as noninterest-bearing checking, interest-bearing checking, money market checking accounts, money market savings accounts, and passbook accounts, as well as certificates of deposit.

First Republic Bank Fundamentals Summary

How do First Republic Bank's earnings and revenue compare to its market cap?
FRC fundamental statistics
Market CapUS$29.83b
Earnings (TTM)US$1.47b
Revenue (TTM)US$5.48b

20.3x

P/E Ratio

2.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FRC income statement (TTM)
RevenueUS$5.48b
Cost of RevenueUS$0
Gross ProfitUS$5.48b
Other ExpensesUS$4.01b
EarningsUS$1.47b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.07
Gross Margin100.00%
Net Profit Margin26.83%
Debt/Equity Ratio74.7%

How did FRC perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

12%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FRC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FRC?

Other financial metrics that can be useful for relative valuation.

FRC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does FRC's PE Ratio compare to its peers?

FRC PE Ratio vs Peers
The above table shows the PE ratio for FRC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.9x
SIVB SVB Financial Group
15.8x21.9%US$24.4b
MTB M&T Bank
21.1x13.6%US$31.5b
HBAN Huntington Bancshares
11.7x2.2%US$19.4b
FITB Fifth Third Bancorp
10.3x6.3%US$23.8b
FRC First Republic Bank
20.3x13.7%US$29.8b

Price-To-Earnings vs Peers: FRC is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (13.9x).


Price to Earnings Ratio vs Industry

How does FRC's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: FRC is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the US Banks industry average (9.8x)


Price to Earnings Ratio vs Fair Ratio

What is FRC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.3x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: FRC is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).


Share Price vs Fair Value

What is the Fair Price of FRC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FRC ($163.96) is trading below our estimate of fair value ($233.27)

Significantly Below Fair Value: FRC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRC's forecast earnings growth (13.7% per year) is above the savings rate (1.9%).

Earnings vs Market: FRC's earnings (13.7% per year) are forecast to grow faster than the US market (12.8% per year).

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

Revenue vs Market: FRC's revenue (12.2% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: FRC's revenue (12.2% 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 (11.2%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FRC has high quality earnings.

Growing Profit Margin: FRC's current net profit margins (26.8%) are lower than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: FRC's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: FRC's earnings growth over the past year (20.1%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: FRC earnings growth over the past year (20.1%) exceeded the Banks industry 9.2%.


Return on Equity

High ROE: FRC's Return on Equity (9.8%) is considered low.


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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: FRC's Assets to Equity ratio (12x) is moderate.

Allowance for Bad Loans: FRC has a sufficient allowance for bad loans (532%).

Low Risk Liabilities: 91% of FRC's liabilities are made up of primarily low risk sources of funding.

Loan Level: FRC has an appropriate level of Loans to Assets ratio (76%).

Low Risk Deposits: FRC's Loans to Deposits ratio (91%) is appropriate.

Level of Bad Loans: FRC has an appropriate level of bad loans (0.1%).


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FRC's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: FRC's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (4.09%).


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

Earnings 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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.6yrs

Average management tenure


CEO

Mike Roffler (51 yo)

0.58

Tenure

US$7,335,897

Compensation

Mr. Michael J. Roffler, also known as Mike, serves as Chief Executive Officer at First Republic Bank since March 13, 2022 and serves as its Director since January 2022. He had been the Chief Financial Offi...


CEO Compensation Analysis

Compensation vs Market: Mike 's total compensation ($USD7.34M) is below average for companies of similar size in the US market ($USD13.00M).

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


Leadership Team

Experienced Management: FRC's management team is seasoned and experienced (7.6 years average tenure).


Board Members

Experienced Board: FRC's board of directors are considered experienced (9.4 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 2.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: First Republic Bank
  • Ticker: FRC
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$29.830b
  • Shares outstanding: 181.93m
  • Website: https://www.firstrepublic.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.