First Republic Bank

FRCB: PINX (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$8.52	Fsgz	Clddbhgrh

First Republic: Lowering Our Fair Value in Aftermath of Revelations From First-Quarter Earnings

Eric Compton

Apr 27, 2023

We are lowering our fair value estimate for First Republic Bank to $0 per share from $3. While we had previously believed that there was roughly an 85% chance that the shares would be worth zero, we think that percentage is even higher currently. At this point, we feel that there is a material probability that the bank does not make it, and even if First Republic does survive, we think that the dilution of existing shareholders that would be required to resize the balance sheet would get current shareholders close to $0 as well.

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