San Francisco-based First Republic Bank (FRC) has reported robust financial results for the second quarter ended June 30. The company offers trust and wealth management, real estate lending, relationship-based preferred banking, preferred business banking and personalized banking services.
Earnings per share (EPS) increased 39.3% year-over-year to $1.95, surpassing analysts’ expectations of $1.73. (See First Republic stock chart on TipRanks)
Quarterly revenues surged nearly 34% year-over-year to $1.2 billion and were almost in line with the Street’s estimates of $1.18 billion. Wealth management revenues too rose 61.2% to $183.6 million.
The Founder, Chairman and Co-CEO of First Republic Bank, Jim Herbert, said, “First Republic’s brand of exceptional client service resulted in significant growth in single-family loans, deposits and wealth management assets.”
Following the announcement of the second-quarter results, KBW analyst Christopher McGratty maintained a Buy rating on the stock and raised the price target from $215 to $225 (14.25% upside potential).
In a research note to investors, the analyst said, “The company offers the unique combination of industry-leading balance sheet and revenue growth, as well as pristine credit quality.”
Overall, the stock has a Hold consensus based on 6 Buys, 6 Holds and 3 Sells. The average First Republic Bank price target of $197.86 implies the stock is fully valued at current levels. The company’s shares have gained 81.1% over the past year.
According to TipRanks’ Smart Score rating system, the company scores a 4 out of 10, suggesting that the stock is likely to perform in line with market averages.
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