tiprankstipranks
Market News

First Republic Bank Tops Q3 Expectations; Shares Jump 2%

First Republic Bank (FRC), a provider of private banking, private business banking, and private wealth management services, reported better-than-expected third-quarter results backed by steady growth in assets across all of its segments as well as excellent credit quality. Shares jumped 2.1% on the news, closing at $204.85 on October 13.

The bank reported earnings of $1.91 per share, up 18.6% year-over-year, and meaningfully outpaced analyst estimates of $1.84 per share.

Furthermore, revenue climbed 30.1% compared to the year-ago period to $1.3 billion and surpassed the Street’s estimate of $1.27 billion. Net Interest Income grew 26.7% year-over-year to $1.1 billion, driven by growth in average interest-earning assets.

During the quarter, the bank’s loan originations grew to $15.5 billion and the net interest margin was 2.65%. Also, the bank’s non-performing assets were very low at 7 basis points of total assets.

Additionally, the bank declared a quarterly cash dividend of $0.22 per common share payable on November 12 to shareholders of record on October 28. (See Insiders’ Hot Stocks on TipRanks)

Commenting on the results, Jim Herbert, Founder, Chairman, and Co-CEO of FRC, said, “First Republic had another strong quarter of growth in loans, deposits and wealth management assets. Our client-centric business model continues to perform very well across all our segments and markets.”

In response to FRC’s financial performance, Wedbush analyst David Chiaverini maintained a Buy rating on the stock while lowering the price target to $235 (14.7% upside potential) from $320.

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 6 Holds. The average First Republic Bank price target of $218.70 implies 6.8% upside potential to current levels. Shares have gained 69.1% over the past year.

Related News:
IBM Board Approves Kyndryl Separation
Boeing Announces Q3 Jet Deliveries; Shares Fall
International Paper Increases Share Buyback Program by 2B, Slashes Quarterly Dividend

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More