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.

Rewards

Earnings are forecast to grow 9.34% per year

Earnings have grown 15.5% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year



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

0.5%

FRC

-0.8%

US Banks

-1.2%

US Market


1 Year Return

17.5%

FRC

15.3%

US Banks

15.5%

US Market

Return vs Industry: FRC exceeded the US Banks industry which returned 15.3% over the past year.

Return vs Market: FRC exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

FRCIndustryMarket
7 Day0.5%-0.8%-1.2%
30 Day1.3%0.5%1.4%
90 Day24.4%14.1%4.7%
1 Year18.3%17.5%18.7%15.3%18.0%15.5%
3 Year27.4%24.6%28.5%19.5%44.8%35.4%
5 Year130.2%121.0%72.2%53.1%67.3%48.9%

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?

21.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FRC ($110.97) is trading above our estimate of fair value ($88.02)

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 (21.5x) compared to the Banks industry average (12.6x).

PE vs Market: FRC is poor value based on its PE Ratio (21.5x) compared to the US market (18.3x).


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 (2.2x) 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?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRC's forecast earnings growth (9.3% per year) is above the savings rate (1.7%).

Earnings vs Market: FRC's earnings (9.3% 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 (11.2% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: FRC's revenue (11.2% 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 (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

Quality Earnings: FRC has high quality earnings.

Growing Profit Margin: FRC's current net profit margins (26.9%) are higher than last year (26.6%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: FRC earnings growth over the past year (13.1%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: FRC's Return on Equity (9.7%) 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 0.3x 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?

0.68%

Current Dividend Yield


Dividend Yield vs Market

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

Current dividend yield vs market & industry

Notable Dividend: FRC's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: FRC's dividend (0.68%) 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

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

4.3yrs

Average management tenure


CEO

Jim Herbert (75yo)

34.9yrs

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 ($USD11.38M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

4.3yrs

Average Tenure

49yo

Average Age

Experienced Management: FRC's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

9.2yrs

Average Tenure

72.5yo

Average Age

Experienced Board: FRC's board of directors are considered experienced (9.2 years average tenure).


Insider Trading

Insider Buying: FRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$982,92807 Nov 19
Edward Dobranski
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares8,876
Max PriceUS$110.74
SellUS$1,106,10007 Nov 19
Robert Thornton
EntityIndividual
Shares10,000
Max PriceUS$110.61
SellUS$221,68007 Nov 19
Olga Tsokova
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares2,000
Max PriceUS$110.84
SellUS$536,10029 Oct 19
Michael Selfridge
EntityIndividual
Role
Senior Key Executive
Chief Banking Officer & Senior EVP
Shares5,000
Max PriceUS$107.22
SellUS$209,10021 Oct 19
David Lichtman
EntityIndividual
Shares3,500
Max PriceUS$104.55
SellUS$759,46818 Oct 19
Mollie Richardson
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares7,456
Max PriceUS$101.86
SellUS$207,72018 Oct 19
Olga Tsokova
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares2,000
Max PriceUS$103.86
SellUS$775,80018 Oct 19
Hafize Erkan
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares7,500
Max PriceUS$103.44
SellUS$191,22016 Sep 19
Hafize Erkan
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares2,000
Max PriceUS$95.61
SellUS$1,920,00016 Sep 19
Jason Bender
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares20,000
Max PriceUS$96.00
SellUS$2,199,77710 Sep 19
Katherine August-deWilde
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares24,184
Max PriceUS$90.96
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$607,62010 Apr 19
James Herbert
EntityIndividual
Role
Chief Executive Officer
Founder
Shares6,000
Max PriceUS$101.27
SellUS$385,67610 Apr 19
Frank Fahrenkopf
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,755
Max PriceUS$102.71
SellUS$205,96010 Apr 19
Sandra Hernández
EntityIndividual
Role
Member of the Board of Directors
Independent 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$146,51804 Feb 19
Jason Bender
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,489
Max PriceUS$98.40
SellUS$152,71704 Feb 19
Robert Thornton
EntityIndividual
Shares1,552
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$20,46704 Feb 19
Edward Dobranski
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares208
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$48,11804 Feb 19
Stephanie Bontemps
EntityIndividual
Shares489
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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Management Team

  • Jim Herbert (75yo)

    Founder

    • Tenure: 34.9yrs
    • Compensation: US$11.38m
  • Ed Dobranski (69yo)

    Executive VP

    • Tenure: 27.9yrs
    • Compensation: US$1.11m
  • Mike Selfridge (52yo)

    Chief Banking Officer & Senior EVP

    • Tenure: 7.8yrs
    • Compensation: US$6.08m
  • Jason Bender (50yo)

    Executive VP & COO

    • Tenure: 3.9yrs
  • Olga Tsokova (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 4.3yrs
  • Mike Roffler (48yo)

    Executive VP & CFO

    • Tenure: 4.9yrs
    • Compensation: US$5.40m
  • Hafize Erkan (39yo)

    President & Director

    • Tenure: 0.8yrs
    • Compensation: US$9.05m
  • Mollie Richardson (40yo)

    Chief Administrative Officer

    • Tenure: 3.9yrs
  • Jim Hughes

    Executive VP & Chief Information Officer

    • Tenure: 1.9yrs
  • Michael Ioanilli

    VP & Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Roger Walther (83yo)

    Chairman Emeritus

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

    Founder

    • Tenure: 34.9yrs
    • Compensation: US$11.38m
  • Katherine August-deWilde (71yo)

    Vice Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$437.20k
  • George Parker (80yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$289.30k
  • Frank Fahrenkopf (80yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$303.70k
  • Pamela Joyner (61yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$286.40k
  • Sandra Hernández (62yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$291.00k
  • Reynold Levy (74yo)

    Lead Outside Director

    • Tenure: 3.6yrs
    • Compensation: US$337.90k
  • Hafize Erkan (39yo)

    President & Director

    • Tenure: 0.8yrs
    • Compensation: US$9.05m
  • Boris Groysberg (47yo)

    Independent Director

    • Tenure: 4.9yrs
    • 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$18.381b
  • Shares outstanding: 168.52m
  • 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 Analysis2019/12/06 00:22
End of Day Share Price2019/12/05 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.