Seeking Alpha • Feb 07

First Republic Bank slips 2% after the bell on stock offering

First Republic Bank (NYSE:FRC) said Tuesday it will sell 2M shares in an underwritten public offering, sending its stock 2.1% lower after the bell. The company granted the underwriters a 30-day option to buy up to an additional 300K shares. Net proceeds will be used for general corporate purposes, which may include funding loans or buying investment securities. The offering is expected to close on or about February 10. Earlier, First Republic (FRC) Q4 results topped estimates.

Seeking Alpha • Jan 24

First Republic Bank goes ex dividend tomorrow

First Republic Bank (NYSE:FRC) has declared $0.27/share quarterly dividend, in line with previous. Payable Feb. 9; for shareholders of record Jan. 26; ex-div Jan. 25. See FRC Dividend Scorecard, Yield Chart, & Dividend Growth.

Seeking Alpha • Jan 12

First Republic Bank Q4 2022 Earnings Preview

First Republic Bank (NYSE:FRC) is scheduled to announce Q4 earnings results on Friday, January 13th, before market open. The consensus EPS Estimate is $1.79 and the consensus Revenue Estimate is $1.44B (+2.9% Y/Y). Over the last 1 year, FRC has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 17 downward. Revenue estimates have seen 0 upward revisions and 11 downward.

Seeking Alpha • Dec 08

First Republic Paying A Steep Cost For Growth

Summary First Republic is seeing a significant contraction in net interest spreads at a time when many peers are still benefiting from their rate leverage. The bank has a strong core deposit franchise, but simply cannot grow deposits fast enough to maintain a double-digit loan growth rate, and management is turning to higher-cost funding. First Republic is trading short-term pain for long-term gain, choosing to start/grow lending relationships with customers when many other banks are pulling back. Spread weakness will undermine earnings (and sentiment) likely until mid-2023, but the shares do still have longer-term appeal, particularly if you believe in the long-term value of those new banking relationships. Using pullbacks to pick up shares of well-run companies is usually a good strategy over the long term, but it has absolutely not been working with First Republic Bank (FRC) here of late. This bank is choosing to prioritize long-term growth over short-term profits, steering into rapidly-rising funding costs to continue acquiring customers and grow the loan book. While I believe this will prove to be a sound decision over the long term, it has hammered the near-term earnings prospects and valuation. The shares have fallen another 25% since my last update (and over 40% since I flipped from neutral to positive in mid-2021), dramatically underperforming its peer group. I've underestimated just how willing this bank would be to pay the short-term costs for long-term growth, but I do still believe in the longer-term story here. I think the shares remain undervalued, but I could see sentiment and near-term earnings pressure weighing on the stock at least through mid-2023, given where we are in the rate cycle. Rates Continue To Rise, And First Republic Will Be Paying A Higher Price For Growth I started off this phase of the cycle writing (in reference to First Republic and others) that deposit betas were likely to surprise as the cycle developed, with banks ultimately having to pay more for deposits than sell-side analysts or bank managements expected. That's happening now, and it's happening faster than even my relatively bearish expectations. Since the Fed began hiking rates, the top CD rates have increased by around 260bp, with a beta of close to 70% that is now above the prior cycle's beta (around 65% between November 2015 and December 2018). There's relatively little cash on bank balance sheets now (around 4% or so of assets), and loan/deposit ratios are likewise growing as strong lending growth has soaked up surplus liquidity on the balance sheets. This is a challenge for most banks, and particularly those that lack strong core deposit franchises and/or wish to continue to fund exceptional loan growth. First Republic actually has a high-quality deposit franchise, with non-interest-bearing deposits making up over 40% of deposits (versus a peer average closer to 30%), but the loan/deposit ratio is now above 90% (versus peers in the 70%s and 80%s), and there's simply no way that the bank can grow regular core deposits at anything close to the rate needed to fund the targeted double-digit loan growth. First Republic will be increasingly forced to turn to higher-cost sources of funding to support that loan growth. While many banks are increasing their use of FHLB advances, management has stated its preference to grow CD balances over FHLB advances - while CDs are getting increasingly expensive (the bank is now paying around 3.75% for some CDs versus an average of 1.26% in the third quarter), management wants the relationships that go with those CDs. This is really the crux of what First Republic is doing now - paying today for deposits (and customer relationships) to fund future growth and future customer relationships. To a large extent, this makes sense. Historically, once somebody becomes a First Republic customer, they remain a customer (an annual attrition rate of less than 1%), and they tend to do more business with First Republic over time - the relationship may start with a mortgage or student loan, but then grows into mortgages for vacation homes, business loans, loans for children's educations and so on. Higher Costs, With More Limited Loan Rate And Operating Leverage Having to pay more for deposits is one thing, and First Republic's 28% cumulative interest-bearing deposit beta was on the upper end of the range of banks I follow in Q3'22, but First Republic's near-term earnings challenges are magnified by the impact that these higher deposit costs are having (and will have) on overall net spreads. Loan yields improved only 26bp yoy and qoq to 3%, about half the rate of improvement for a swath of comparable banks, and this issue is going to linger. Relative to many peers, First Republic has a much larger residential mortgage lending business and a much smaller business (C&I) lending operation, and that's hurting the bank as it leads to a larger fixed-rate exposure and less leverage to rapidly-repricing C&I loans. With that, First Republic is looking at around 25bp of NIM contraction in Q4'22 when most peers will show 10bp-20bp of expansion, and that will continue into the first half of 2023 (albeit not at the same pace). At the same time, there are not a lot of levers the company can pull to offset spread pressure. The wealth management business is growing well enough but isn't large enough to offset the spread income challenges. Likewise, while First Republic's efficiency ratio isn't bad, there's not much the company can do on costs apart from around $100M in expenses it considers deferrable. An Opportunity To Gain Share Management is still looking to grow loans at a mid-teens rate in 2023, and that's a notable difference for a bank of this size relative to its peers. Many banks are now tapping the brakes on loan growth, not just in response to more cautious customers, but in view of a worsening macro environment and increasing credit risks. This approach strikes me as roughly analogous to Buffett's often-repeated exhortation to "be greedy when others are fearful". Many banks will claim that they're still looking to lend money to high-quality clients, but the reality is that many banks lack the granularity and visibility into credit trends that they'd like to claim and are responding to this weakening macro environment by curtailing lending on a larger scale. As this plays out, First Republic stands ready to cherry-pick attractive lending/long-term business opportunities from among those customers that can't get their current bank to answer the phone. Stepping up to lend when other banks don't want to will strike many readers as aggressive and risky. I'd point to First Republic's long-standing credit history - a cumulative loss of about 8bp on $439B in cumulative lending, including 3bp of losses on $234B of cumulative lending in the residential loan business.

Analysis Article • Dec 05

Here's Why We Think First Republic Bank (NYSE:FRC) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Seeking Alpha • Oct 14

First Republic Bank GAAP EPS of $2.21 beats by $0.02, revenue of $1.57B beats by $20M

First Republic Bank press release (NYSE:FRC): Q3 GAAP EPS of $2.21 beats by $0.02. Revenue of $1.57B (+17.2% Y/Y) beats by $20M. Tangible book value per share was $72.54, up 11.3%. Net interest margin was 2.71%, compared to 2.80% for the prior quarter. Efficiency ratio was 60.3%, compared to 60.5% for the prior quarter. Tier 1 leverage ratio was 8.59%.

Seeking Alpha • Sep 03

RiverPark Advisors - First Republic Bank: Compounding Revenues At +18%

Summary First Republic’s competitive strategy of doing only a handful of things well results in a superior value proposition to its customers. FRC compounded revenues at an +18% rate from 2016 to 2021. Recently, the dramatic rise in long-term interest rates has caused mortgage industry underwriting volumes to plummet. Despite this, First Republic turned in an astonishing +23% growth rate in mortgage originations during the second quarter of 2022. First Republics’ prudent and deliberate approach to trade-offs offers competitive differentiation that should continue to drive exceptional growth over the long term. The following segment was excerpted from this fund letter. First Republic Bank (FRC) First Republic Bank is one of the most differentiated business models in our large cap universe. What makes the Company so different is not necessarily the activities that it does, but the activities it does not do. These trade-offs are an incredibly important strategic decision that every company must make. However, in our experience, rarely are these forgone activities lauded or even recognized as critical differentiators. The Company does mention these foregone activities, on page 45 of its most recent investor presentation appendix. When we consider the financial industry, especially banking, is fraught with competition, simply being better than any of the other massive money-center banks is not enough to sustain many decades or even years of superior performance. Rather than try to outcompete every bank in the country, First Republic’s competitive strategy of doing only a handful of things well, results in a superior value proposition to its customers. These trade-offs are easy to understand, but difficult to copy, given widespread competitive and institutional imperatives that pressure management teams to revert to the mean. First Republic organizes its entire business around keeping long-term relationships with its bankers and clients. This strategic decision contrasts with competitors that have underlying strategic goals to drive as much client activity as possible. As a result, client development activities at First Republic look very different from those of its competitors. For example, while most companies strive – or at least market – to provide excellent client service by bombarding clients with digital touchpoints, First Republic will not open an account with its typical well-healed client without first engaging in a personal conversation. For many, this sounds like an arduous and inefficient task that can be handled or even automated by scores of digital software solutions. Paradoxically, First Republic has outgrown its peers over the past several years. The Company compounded revenues at an +18% rate from 2016 to 2021 and is now one of largest single family mortgage lenders in the U.S. Despite this impressive top-line growth, particularly in first mortgages, First Republic doesn’t even make the top-10 list of annual mortgage volume generators. In contrast to the vast majority in the banking industry that sells its mortgages to government-sponsored enterprises ((GSE)), First Republic keeps nearly all its mortgage underwriting loans on its balance sheet. Part of this is because of necessity – First Republic underwrites mostly non-conforming or “jumbo” mortgages that are ineligible to be purchased by GSEs. But the strategic decision to avoid the correspondent mortgage industry aligns the Company with its customers and shareholders because a long-term servicer and underwriter relationship favors more prudent underwriting standards and more favorable long-term economics. This is borne out in the Company’s industry-low, net charge off ratios over the past few business cycles. And more recently, the dramatic rise in long-term interest rates has caused mortgage industry underwriting volumes to plummet – mostly due to a decline in refinance activity. Despite this, and admittedly to our surprise, First Republic turned in an astonishing +23% growth rate in mortgage originations during the second quarter of 2022. That is not to say things won’t slow from here, given the continued rise in rates, but it was another important, contrasting data point of how the Company’s business model differs from most large money-center peers. Competitors’ overwhelming reliance on the securitization markets as well as mortgage correspondent mass-market focus was in no small part to blame for the industry slowdown. As First Republic keeps these functions in-house and focuses mostly on jumbo mortgage financing, there were no third parties or vendor partner upheavals that the Company had to contend with to continue providing its customers with reliable mortgage underwriting service. Of course, to execute this client-centric approach of providing superior customer service, the Company’s entire capital structure must align to this goal. For example, banks are required to hold a larger buffer of capital for on-balance sheet mortgages than, for example, a mortgage-backed security. As a result, First Republic has less capacity to repurchase shares by holding on to mortgages. But again, paradoxically, First Republic equity has traded at premium earnings multiple relative to banking peers for the past several years, despite rivals that have been repurchasing tens of billions in shares. In addition, and unlike nearly all large cap banks in the U.S., First Republic does not offer any kind of credit card product to its personal banking customers. We think the advantages of this trade-off are multifold. First, credit cards are a low touch business, where most of the interactions are between the customer and a merchant, so First Republic has very little ability to influence the customer experience in that framework. Second, credit card receivables take up a disproportionate amount of balance sheet capacity compared to other forms of lending, albeit at higher interest rates.

Seeking Alpha • Aug 23

First Republic names MUFG Union exec as CFO, starting November

First Republic Bank (NYSE:FRC) said Tuesday Neal Holland, currently with MUFG Union Bank (MUFG), will become executive vice president and chief financial officer as of Nov. 2, 2022. Holland is currently CFO of Union Bank and MUFG Americas. He has held roles of increasing responsibility at the company during the past 14 years. In addition, Olga Tsokova will become deputy CFO, also as of Nov. 2, and will continue to serve as executive vice president and chief accounting officer. Tsokova, who is also in the role of acting CFO since January 2022, joined First Republic (FRC) in 2015 as chief accounting officer. In March, Mike Roffler became the company's CEO.

Seeking Alpha • 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.

Seeking Alpha • Jul 13

First Republic Bank Q2 2022 Earnings Preview

First Republic Bank (NYSE:FRC) is scheduled to announce Q2 earnings results on Thursday, July 14th, before market open. EPS Estimate is $2.08 (+13.0% Y/Y) and the consensus Revenue Estimate is $1.48B (+16.5% Y/Y). has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time. upward revisions and 5 downward. Revenue estimates have seen 7 upward revisions and 5 downward.

Seeking Alpha • May 14

First Republic Bank Continues To Cushion The Blow Of Inflationary Pressures

First Republic Bank shows impeccable performance despite macroeconomic pressures. Inflation and interest rate hikes may hamper its growth. But, its solid and intact fundamentals will help it withstand drastic changes. The downtrend in the stock price remains visible and divorced from its fundamentals. Dividend payments are consistent since the company has adequate means to sustain them.

Analysis Article • Apr 17

Here's Why I Think First Republic Bank (NYSE:FRC) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Seeking Alpha • Feb 23

A Rare Opportunity At First Republic

The sudden and unexplained departure of co-CEO Gaye Erkan has shaken the Street and undermined a strong operating story predicated in part by steady, no-drama management from the top. First Republic's fourth quarter core pre-provision profits were a little soft, but the bank should generate several years of double-digit core earnings growth. First Republic is less "absolutely cheap" and more "a lot cheaper than it typically is", and this concern over executive turnover looks like an opportunity.

Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

Historical stock prices
Current Share Price	US$0.15
52 Week High	US$163.30
52 Week Low	US$0.04
Beta	1.29
1 Month Change	-57.14%
3 Month Change	-50.20%
1 Year Change	-99.91%
3 Year Change	-99.87%
5 Year Change	-99.85%
Change since IPO	-99.46%

	FRCB	US Banks	US Market
7D	-40.5%	-0.3%	1.4%
1Y	-99.9%	24.7%	25.7%

FRCB volatility
FRCB Average Weekly Movement	34.5%
Banks Industry Average Movement	3.3%
Market Average Movement	7.2%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.1%

FRCB fundamental statistics
Market cap	US$27.98m
Earnings (TTM)	US$1.37b
Revenue (TTM)	US$5.57b

FRCB income statement (TTM)
Revenue	US$5.57b
Cost of Revenue	US$0
Gross Profit	US$5.57b
Other Expenses	US$4.19b
Earnings	US$1.37b

Earnings per share (EPS)	7.36
Gross Margin	100.00%
Net Profit Margin	24.65%
Debt/Equity Ratio	592.9%

Data	Last Updated (UTC time)
Company Analysis	2023/08/24 20:55
End of Day Share Price	2023/08/24 00:00
Earnings	2023/03/31
Annual Earnings	2022/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
null null	Argus Research Company
David George	Baird
Jason Goldberg	Barclays

This company listing is no longer active

First Republic Bank (FRCB) Stock Overview

Risk Analysis

First Republic Bank Competitors

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Price History & Performance

Recent News & Updates

Hagens Berman Files Securities Fraud Class Action Against First Republic Bank

First Republic Bank(OTCPK:FRCB) dropped from S&P 500 Value

First Republic Bank(OTCPK:FRCB) dropped from FTSE All-World Index (USD)

First Republic Bank(NYSE:FRC) dropped from S&P 500 Banks (Industry Group)

Consensus revenue estimates fall by 22%

First quarter 2023 earnings: EPS and revenues exceed analyst expectations

Recent updates

Hagens Berman Files Securities Fraud Class Action Against First Republic Bank

First Republic Bank(OTCPK:FRCB) dropped from S&P 500 Value

First Republic Bank(OTCPK:FRCB) dropped from FTSE All-World Index (USD)

First Republic Bank(NYSE:FRC) dropped from S&P 500 Banks (Industry Group)

Consensus revenue estimates fall by 22%

First quarter 2023 earnings: EPS and revenues exceed analyst expectations

Price target decreased by 17% to US$87.42

Consensus EPS estimates fall by 39%

Consensus EPS estimates fall by 14%

Price target decreased by 19% to US$118

Senior EVP & Chief Credit Officer recently sold US$983k worth of stock

Investor sentiment deteriorates as stock falls 20%

Full year 2022 earnings: EPS exceeds analyst expectations

Senior EVP & Chief Credit Officer recently sold US$594k worth of stock

Founder & Executive Chairman exercised options and sold US$1.3m worth of stock

First Republic Bank slips 2% after the bell on stock offering

Independent Lead Outside Director recently sold US$111k worth of stock

First Republic Bank goes ex dividend tomorrow

Founder & Executive Chairman recently sold US$2.6m worth of stock

Consensus EPS estimates fall by 13%

First Republic Bank Announces Management Changes

Upcoming dividend of US$0.27 per share

Full year 2022 earnings: EPS exceeds analyst expectations

First Republic Bank Q4 2022 Earnings Preview

First Republic Adds Eric Yamin and Keith Caparelli to Investment Management Division

First Republic Bank to Report Q4, 2022 Results on Jan 13, 2023

First Republic Paying A Steep Cost For Growth

Now 21% undervalued after recent price drop

Here's Why We Think First Republic Bank (NYSE:FRC) Is Well Worth Watching

President recently sold US$1.3m worth of stock

Now 22% undervalued after recent price drop

Founder & Executive Chairman recently sold US$2.3m worth of stock

Investor sentiment deteriorated over the past week

Upcoming dividend of US$0.27 per share

Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind

Price target decreased to US$161

First Republic Bank GAAP EPS of $2.21 beats by $0.02, revenue of $1.57B beats by $20M

RiverPark Advisors - First Republic Bank: Compounding Revenues At +18%

First Republic names MUFG Union exec as CFO, starting November

Senior EVP & Chief Banking Officer recently sold US$418k worth of stock

First Republic Bank prices ~$353.3M stock offering

Insider recently sold US$308k worth of stock

Upcoming dividend of US$0.27 per share

Second quarter 2022 earnings: EPS and revenues exceed analyst expectations

First Republic Bank Q2 2022 Earnings Preview

Insider exercised options and sold US$811k worth of stock

Independent Director recently sold US$124k worth of stock

Senior EVP & Chief Credit Officer exercised options and sold US$25k worth of stock

First Republic Bank Continues To Cushion The Blow Of Inflationary Pressures

Senior EVP & Chief Banking Officer recently sold US$641k worth of stock

Senior EVP & Chief Banking Officer recently sold US$641k worth of stock

Upcoming dividend of US$0.27 per share

Here's Why I Think First Republic Bank (NYSE:FRC) Is An Interesting Stock

First quarter 2022 earnings: EPS and revenues exceed analyst expectations

Senior EVP & Chief Credit Officer exercised options and sold US$8.9k worth of stock

Senior EVP & Chief Credit Officer exercised options and sold US$8.9k worth of stock

Senior EVP & Chief Credit Officer exercised options and sold US$21k worth of stock

Senior EVP & Chief Credit Officer exercised options and sold US$21k worth of stock

A Rare Opportunity At First Republic

Senior EVP & Chief Credit Officer exercised options and sold US$499k worth of stock

Now 20% undervalued after recent price drop

Senior EVP & Chief Banking Officer recently sold US$267k worth of stock

Founder & Co-CEO (Leave Of Absence) exercised options and sold US$550k worth of stock