First Republic Bank

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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
FoundedFebruary 5, 1985; 39 years ago (1985-02-05)
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)
SubsidiariesGradifi
Capital ratioTier 1 8.51% (Q4 2022)
Websitefirstrepublic.com
Footnotes / references
[1]

First Republic Bank is a commercial bank and provider of wealth management services headquartered in San Francisco. It caters to high-net-worth individuals. It operates 93 offices in 11 states primarily in New York, California, Massachusetts, and Florida.[1] As of December 31, 2022, the company had $166 billion in outstanding loans receivable, including $102 billion in loans secured by residential real estate, $34 billion in loans secured by income-producing commercial real estate, $18 billion in business loans, and $10 billion in other loans. Collateral securing loans was overwhelmingly in the metro areas of Boston, New York City, San Francisco, and Los Angeles.[1]

History

First Republic was founded in February 1985 by Jim Herbert, previously the founder and CEO of San Francisco Bancorp, which he sold to Atlantic Financial. First Republic began operations on July 1, 1985, as a California-chartered industrial loan company. It 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 savings and loan association in Nevada.[2]

In 1996, First Republic sought to shift to a banking charter to expand its offerings. It lobbied 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.[3]

In 1998, First Republic acquired Trainer Worthman & Co., and in December 2001, it acquired Starbuck, Tisdale & Associates for $13 million in cash and stock. In January 2000, First Republic acquired an 18% interest in Froley, Levy Investment Company Inc., and in 2002, it purchased the investment firm for $17 million in cash and stock.[4]

In 2004, it acquired the Private Client Asset Management division of Bay Isle Financial from Janus Capital Group.[5]

In 2006, the bank acquired Bank of Walnut Creek.[6]

In September 2007, First Republic was acquired by Merrill Lynch for $1.8 billion in cash and stock.[7][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]

In November 2012, First Republic acquired Luminous Capital, a wealth management firm with $5.5 billion in assets, for $125 million.[13]

In 2015, First Republic acquired Constellation Wealth Partners for $115 million.[14]

In December 2016, the bank acquired Gradifi, a then 2-year old startup that works with companies to help employees pay off student loan debt that counted PricewaterhouseCoopers, Natixis Global Asset Management, and Penguin Random House as customers.[15][16]

In March 2018, the bank invested in CommonBond, a student loan financier.[17]

In May 2018, the company leased more office space at Rockefeller Center in New York City.[18]

In 2019, 50 client advisors, who were part of First Republic's Luminous acquisition, with $17 billion of assets under management, left the company.[19]

During the March 2023 United States bank failures, Fitch Ratings and S&P Global Ratings downgraded First Republic's credit rating, citing "a high proportion of uninsured deposits" from wealthy customers who are more likely to move their money elsewhere and a loan-to-deposit ratio of 111%, meaning that it has lent out more money than it has in deposits from customers.[20][21] To alleviate concerns of a possible bank run and support any withdrawals of deposits, on March 16, 2023, eleven American banks including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and Truist Financial deposited $30 billion with First Republic.[20][22][23] Despite the deposits, shares of the company continued to decline on March 17.[24]

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: [25][26][27][28][29][30][31][32][33][34] Net Income: [35][36][37] Assets: [38][36][37] Market cap: [39] Average Stock Price: [40] Dividends per common share: [36][41][42][43]

References

  1. ^ a b c "First Republic Bank 2022 Form 10-K Annual Report". First Republic.
  2. ^ "First Republic acquires Silver State thrift". American Banker. 30 December 1993.
  3. ^ "Nevada Bank Charter – Revisiting the Law". First Republic Bank.
  4. ^ "First Republic buys LA firm for $17M". American City Business Journals. 1 February 2002. Archived from the original on 29 September 2003.
  5. ^ "Janus to Sell Private Client Asset Management Division of Bay" (Press release). Business Wire. 30 June 2004.
  6. ^ "First Republic Bank completes acquisition of Bank of Walnut Creek". American City Business Journals. 16 October 2006.
  7. ^ "Merrill Lynch and First Republic Bank Successfully Close Merger; Final Results of Election Regarding Merger Consideration Announced" (Press release). Business Wire. 21 September 2007.
  8. ^ McLaughlin, Tim (29 January 2007). "Merrill to buy First Republic for $1.8 bln". Reuters.
  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. ^ "First Republic to Acquire Luminous Capital" (Press release). PR Newswire. 2 November 2012.
  14. ^ "First Republic To Acquire Constellation Wealth Advisors" (Press release). PR Newswire. 17 June 2015.
  15. ^ Obrien, Kelly J. (12 December 2016). "First Republic Bank scoops up Boston student debt startup in the Boston Business Journal". American City Business Journals.
  16. ^ Kellard, Joseph (12 December 2016). "First Republic Buys Student-Debt Startup Gradifi in American Banker". American Banker.
  17. ^ Stoller, Kristin (21 March 2018). "Student Lender CommonBond Raises $50M to Invest in Technology, Blockchain". Forbes.
  18. ^ "First Republic Bank Renews and Expands to 280K SF in Rock Center". 29 May 2018.
  19. ^ Marsh, Ann (6 June 2019). "$17B gone: The biggest-ever advisory team exit and the bank that lost it". American Banker.
  20. ^ a b Egan, Matt; Morrow, Allison; Goldman, David (16 March 2023). "11 big banks create $30B rescue package for First Republic Bank". CNN.
  21. ^ Gura, David (16 March 2023). "First Republic becomes the latest bank to be rescued, this time by its rivals". NPR.
  22. ^ Weil, Jonathan (10 March 2023). "First Republic Hit by Silicon Valley Bank Failure". The Wall Street Journal.
  23. ^ Rushe, Dominic (16 March 2023). "US banks launch $30bn rescue of First Republic to stem spiraling crisis". The Guardian. ISSN 0261-3077.
  24. ^ Reyes, Max; Weinstein, Austin; Versprille, Allyson (17 March 2023). "First Republic's $30 Billion Rescue Fails to Soothe Investor Fear". Bloomberg.com. Retrieved 17 March 2023.
  25. ^ "FORM 10-K - FIRST REPUBLIC BANK (2009, 2010)". First Republic. 1 March 2011. p. 84.{{cite web}}: CS1 maint: url-status (link)
  26. ^ "FORM 10-K - FIRST REPUBLIC BANK (2011)". First Republic. 20 March 2012. p. 39.
  27. ^ "FIRST REPUBLIC BANK REPORTS RECORD ANNUAL AND QUARTERLY EARNINGS - Press Release (2011, 2012)". First Republic. 16 January 2013. p. 15.
  28. ^ "FORM 10-K - FIRST REPUBLIC BANK (2013, 2014, 2015)". First Republic. 26 February 2016. p. 103.{{cite web}}: CS1 maint: url-status (link)
  29. ^ "FIRST REPUBLIC REPORTS STRONG QUARTERLY AND ANNUAL RESULTS - Press Release (2016)" (PDF). First Republic. 13 January 2017. p. 1.
  30. ^ "FIRST REPUBLIC REPORTS STRONG 2017 RESULTS - Press Release (2017)" (PDF). First Republic. 16 January 2018. p. 1.
  31. ^ "FIRST REPUBLIC REPORTS STRONG 2018 RESULTS - Press Release (2018)". First Republic. 15 January 2019. p. 1.
  32. ^ "FIRST REPUBLIC REPORTS STRONG 2019 RESULTS - Press Release (2019)". First Republic. 14 January 2020. p. 1.
  33. ^ "FIRST REPUBLIC REPORTS 2020 RESULTS - Press Release (2020)" (PDF). First Republic. 14 January 2021. p. 1.
  34. ^ "FIRST REPUBLIC REPORTS 2021 RESULTS - Press Release (2021)". First Republic. 14 January 2022. p. 1.
  35. ^ "FORM 10-K - FIRST REPUBLIC BANK (2009, 2010)". First Republic. 1 March 2011. p. 54.
  36. ^ a b c "FORM 10-K - FIRST REPUBLIC BANK (2011-2015)". First Republic. 26 February 2016. p. 52.
  37. ^ a b "2021 First Republic Bank Annual Report (2016-2021)" (PDF). First Republic. p. 4.
  38. ^ "FORM 10-K - FIRST REPUBLIC BANK (2009, 2010)". First Republic. 1 March 2011. p. 49.
  39. ^ "Market capitalization of First Republic Bank (FRC)". Companies Marketcap.
  40. ^ "First Republic Bank - Stock Price History | FRC". Macrotrends LLC.
  41. ^ "FORM 10-K - FIRST REPUBLIC BANK (2013-2017)". First Republic. 28 February 2018. p. 52.
  42. ^ "FORM 10-K - FIRST REPUBLIC BANK (2018-2020)" (PDF). First Republic. 26 February 2021.
  43. ^ "FORM 10-K - FIRST REPUBLIC BANK (2018-2020)". First Republic. 28 February 2022. p. 69.

External links

Media related to First Republic Bank at Wikimedia Commons

  • Official website
  • Business data for First Republic Bank:
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