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First Republic Bank

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This is an old revision of this page, as edited by Jimgerbig (talk | contribs) at 04:28, 17 March 2023 (→‎History: 202303170028, adding $30 billion in secured funding). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

This article is about the bank based in San Francisco. For the defunct bank based in Dallas, see First Republic Bank Corporation.
Not to be confused with Republic First Bancorp.

First Republic Bank
Company typePublic company
ISINUS33616C1009
IndustryFinancial services
FoundedJuly 1, 1985; 39 years ago (1985-07-01)[1]
HeadquartersSan Francisco, California, U.S.
Areas served
Key people
ProductsConsumer Banking
Business Banking
Wealth Management
Mortgages
RevenueIncrease US$5.0 billion
Increase US$1.47 billion (2022)
Total assetsIncrease US$212.6 billion (2022)
Number of employees
7,213 (2022)
Capital ratioTier 1 8.51% (Q4 2022)
Websitefirstrepublic.com
Footnotes / references
[2]

First Republic Bank is a commercial bank and provider of wealth management services headquartered in San Francisco. It caters to low-risk, high-net-worth individuals. It operates 93 offices in 11 states primarily in New York, California, Massachusetts, and Florida.[2]

History

First Republic was founded in 1985 by Jim Herbert[3] and began operations on July 1, 1985[1] as a California-chartered industrial thrift. First Republic became a public company via an initial public offering on the NASDAQ in August 1986, selling stock at $10 a share. In 1993, First Republic acquired Silver State Thrift, a thrift in Nevada.[4]

In 1998, it acquired Trainer Worthman & Co., and in December 2001, it acquired Starbuck, Tisdale & Associates for $13 million in cash and stocks.[5] In January 2000, First Republic acquired an 18 percent interest in Froley, Levy Investment Company Inc., and in 2002, it purchased the investment firm for $17 million in cash and stock.[5]

In 1996, First Republic sought out options to expand product offerings by shifting to a banking charter. The thrift enlisted a law firm, Lionel, Sawyer and Collins, to lobby the Nevada Legislature to pass a law allowing conversion of a Nevada thrift into a Nevada state bank. The law passed in July 1997, shortly after First Republic completed a reverse merger of the larger California-chartered thrift into the Nevada-chartered Silver State Thrift subsidiary. After the passage of the law, the Nevada thrift became a state-chartered bank, First Republic Savings Bank.[6]

In 2006, the bank acquired Bank of Walnut Creek.[7]

In September 2007, First Republic was acquired by Merrill Lynch.[8]

In July 2010, Bank of America, which acquired Merrill Lynch and thereby acquired First Republic, sold First Republic Bank to a group of private investors including Colony Capital, General Atlantic, and chairman James Herbert and former COO Katherine August DeWilde, for approximately $1 billion.[9] Thomas J. Barrack, Jr., the head of Colony, had been a board member prior to the Merrill Lynch deal and General Atlantic had been an early investor in the firm putting up about $5 million in 1987.[10] An additional $800 million was provided by the investment consortium to meet new capital requirements established by U.S. regulators.[11]

In December 2010, the bank once again became a public company via an initial public offering, raising $280.5 million.[12]

First Republic opened a trust company in Delaware in 2012 and an investment office in Palm Beach, Florida, in 2013.[13][14]

In 2015, First Republic acquired Constellation Wealth Partners for $115 million.[15][16] By April 2016,[17] First Republic had opened branches at the Facebook and Twitter Inc. headquarters in Silicon Valley.[18] It also had various high-profile customers.[19] Barron's in September 2016 listed First Republic Bank at 21 on its list of America's Top 40 Wealth Management Firms.[16] By December 2016, First Republic Bank had $68 billion in assets.[20]

In December 2016, the bank acquired Gradifi, a startup in Boston, for an unknown cash amount.[21][20] Then two years old, Gradifi works with companies to help their employees pay off student debt,[20] and First Republic had become a client in August 2016.[21] Becoming a wholly owned subsidiary of First Republic,[21] Gradifi continues to operate in Boston under its own name.[20][21] Gradifi retained its customer base including PricewaterhouseCoopers, Natixis Global Asset Management, and Penguin Random House.[21]

In March 2018, the bank invested in CommonBond, a student loan financier.[22] First Republic announced it would expand into Jackson, Wyoming, in May 2018 with a new branch.[23] Also that month, First Republic signed a deal to double its space at Rockefeller Center in New York City.[24]

In 2019, First Republic opened an investment office in Washington D.C.[25]

In January 2020, First Republic announced the opening of a Wyoming-based trust company.[26]

During the March 2023 United States bank failures, concerns arose that First Republic could also suffer a bank run.[27] Shares of the bank fluctuated wildly in the next few days,[27] alongside other US regional banks.[citation needed] This was despite efforts by the company's executives to reassure customers that the bank was well-capitalized and a bank run was not occurring, as well as the efforts of the FDIC to calm the public.[citation needed]

On March 16th 2023 First Republic secured $30 Billion in combined financial help from eleven of its larger competitors including: Citi, Bank of America, Wells Fargo, Truist, Morgan Stanley, State Street, BNY Mellon, US Bank, PNC, Goldman Sachs and to secure it continued operation.

Financials

Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Revenue (in billions) 1.072 1.002 1.183 1.341 1.468 1.649 1.841 2.2 2.6 3.0 3.3 3.9 5.0
Net Income (in millions) 346 271 354 401 462 487 522 673 758 854 930 1,064 1,478
Assets (in billions) 19.94 22.38 27.79 34.38 42.11 48.35 58.98 73.3 87.8 99.2 116.3 142.5 181.1
Market Cap (in billions) N/A 3.75 3.95 4.30 6.95 7.2 9.65 13.80 13.91 14.32 19.80 25.30 37.02
Average Stock Price N/A 26.0421 26.5584 29.9428 39.3133 47.7605 57.9133 69.2193 92.4429 92.6591 98.5723 111.1200 187.4291
Dividends per common share N/A N/A N/A 0.30 0.36 0.54 0.59 0.63 0.67 0.71 0.75 0.79 0.86

Note: The financial data for the total revenue, net income, assets, and dividends per common share is sourced from the company's annual reports, earnings releases, and SEC Form 10-Ks from 2009 to 2021. Total revenue: [28][29][30][31][32][33][34][35][36][37] Net Income: [38][39][40] Assets: [41][39][40] Market cap: [42] Average Stock Price: [43] Dividends per common share: [39][44][45][46]

References

  1. ^ a b "First Republic: Our Story". First Republic Bank.
  2. ^ a b "First Republic Bank 2022 Form 10-K Annual Report". First Republic.
  3. ^ "Client Success Stories". HBS Executive Education. Retrieved 14 February 2023.
  4. ^ "First Republic acquires Silver State thrift". American Banker. 30 December 1993.
  5. ^ a b "First Republic buys LA firm for $17M". BizJournals. 1 February 2002. Archived from the original on 29 September 2003.
  6. ^ "Nevada Bank Charter – Revisiting the Law". First Republic Bank.
  7. ^ "First Republic Bank completes acquisition of Bank of Walnut Creek". American City Business Journals. 16 October 2006.
  8. ^ "Merrill Lynch and First Republic Bank Successfully Close Merger; Final Results of Election Regarding Merger Consideration Announced" (Press release). Business Wire. 21 September 2007.
  9. ^ Kouwe, Zachery (22 October 2009). "Bank of America Sells Republic Bank to Private Equity Firms". The New York Times.
  10. ^ Kouwe, Zachery (21 October 2009). "Bank of America Sells First Republic Bank". The New York Times.
  11. ^ General Atlantic, Colony Capital close First Republic Bank deal , July 21, 2010 Archived August 12, 2011, at the Wayback Machine
  12. ^ Baldwin, Clare (9 December 2010). "First Republic shares rise in IPO debut". Reuters.
  13. ^ Berardi, Greg (14 February 2013). "First Republic Bank Opens Office in Palm Beach". Yahoo.{{cite web}}: CS1 maint: url-status (link)
  14. ^ MarketScreener (12 March 2012). "First Republic Bank Opens Delaware Trust Company; Appoints John McCabe as Managing Director and Senior Trust Officer". MarketScreener.
  15. ^ "First Republic To Acquire Constellation Wealth Advisors" (Press release). PR Newswire. 17 June 2015.
  16. ^ a b America's Top 40 Wealth Management Firms in Barron's by Matt Barthel, September 17, 2016
  17. ^ Wealth Management Lifts First Republic Profit in American Banker by Jacob Passy, April 14, 2016
  18. ^ Silicon Valley Elites Get Home Loans With No Money Down in Bloomberg News by Heather Perlberg and Prashant Gopal, July 27, 2016
  19. ^ First Republic: Is It Wrong to Build a Bank for Wealthy Clients Only? in The Wall Street Journal by Rachel Louise Ensign, Anna Maria Andriotis and Paul Overberg, on August 16, 2016
  20. ^ a b c d First Republic Buys Student-Debt Startup Gradifi in American Banker by Joseph Kellard on December 12, 2016
  21. ^ a b c d e First Republic Bank scoops up Boston student debt startup in the Boston Business Journal by Kelly J. Obrien, December 12, 2016
  22. ^ "Student Lender CommonBond Raises $50M to Invest in Technology, Blockchain". Forbes.
  23. ^ Why First Republic Bank is chasing the wealthy in Wyoming
  24. ^ "First Republic Bank Renews and Expands to 280K SF in Rock Center". 29 May 2018.
  25. ^ Medici, Andy (3 October 2019). "California bank quietly opened an investment office in D.C." BizJournals.{{cite web}}: CS1 maint: url-status (link)
  26. ^ MarketScreener. "First Republic Bank : Opens Wyoming Trust Company | MarketScreener". www.marketscreener.com.
  27. ^ a b Weil, Jonathan (10 March 2023). "First Republic Hit by Silicon Valley Bank Failure". The Wall Street Journal. Retrieved 11 March 2023.
  28. ^ "FORM 10-K - FIRST REPUBLIC BANK (2009, 2010)". First Republic. 1 March 2011. p. 84.{{cite web}}: CS1 maint: url-status (link)
  29. ^ "FORM 10-K - FIRST REPUBLIC BANK (2011)". First Republic. 20 March 2012. p. 39.
  30. ^ "FIRST REPUBLIC BANK REPORTS RECORD ANNUAL AND QUARTERLY EARNINGS - Press Release (2011, 2012)". First Republic. 16 January 2013. p. 15.
  31. ^ "FORM 10-K - FIRST REPUBLIC BANK (2013, 2014, 2015)". First Republic. 26 February 2016. p. 103.{{cite web}}: CS1 maint: url-status (link)
  32. ^ "FIRST REPUBLIC REPORTS STRONG QUARTERLY AND ANNUAL RESULTS - Press Release (2016)" (PDF). First Republic. 13 January 2017. p. 1.
  33. ^ "FIRST REPUBLIC REPORTS STRONG 2017 RESULTS - Press Release (2017)" (PDF). First Republic. 16 January 2018. p. 1.
  34. ^ "FIRST REPUBLIC REPORTS STRONG 2018 RESULTS - Press Release (2018)". First Republic. 15 January 2019. p. 1.
  35. ^ "FIRST REPUBLIC REPORTS STRONG 2019 RESULTS - Press Release (2019)". First Republic. 14 January 2020. p. 1.
  36. ^ "FIRST REPUBLIC REPORTS 2020 RESULTS - Press Release (2020)" (PDF). First Republic. 14 January 2021. p. 1.
  37. ^ "FIRST REPUBLIC REPORTS 2021 RESULTS - Press Release (2021)". First Republic. 14 January 2022. p. 1.
  38. ^ "FORM 10-K - FIRST REPUBLIC BANK (2009, 2010)". First Republic. 1 March 2011. p. 54.
  39. ^ a b c "FORM 10-K - FIRST REPUBLIC BANK (2011-2015)". First Republic. 26 February 2016. p. 52.
  40. ^ a b "2021 First Republic Bank Annual Report (2016-2021)" (PDF). First Republic. p. 4.
  41. ^ "FORM 10-K - FIRST REPUBLIC BANK (2009, 2010)". First Republic. 1 March 2011. p. 49.
  42. ^ "Market capitalization of First Republic Bank (FRC)". Companies Marketcap.
  43. ^ "First Republic Bank - Stock Price History | FRC". Macrotrends LLC.
  44. ^ "FORM 10-K - FIRST REPUBLIC BANK (2013-2017)". First Republic. 28 February 2018. p. 52.
  45. ^ "FORM 10-K - FIRST REPUBLIC BANK (2018-2020)" (PDF). First Republic. 26 February 2021.
  46. ^ "FORM 10-K - FIRST REPUBLIC BANK (2018-2020)". First Republic. 28 February 2022. p. 69.

Media related to First Republic Bank at Wikimedia Commons

  • Official website
  • Business data for First Republic Bank:
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