First Republic Bank

FRCB: PINX (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$1.19	Klqnr	Xxppdxpks

Lowering Our Fair Value Estimate for First Republic, We See Little Left for Shareholders

Eric Compton

Apr 27, 2023

Business Strategy and Outlook

First Republic Bank is one of the more unusual banks under our coverage. It has a uniquely focused business model, with a high service offering aimed at wealthy clients concentrated in costal urban areas. The bank was exclusively led by its founder, Jim Herbert, until mid-2021, and has been able to churn out remarkably high organic growth year after year, resulting in compounded asset growth of roughly 20% over the past 10 years compared with an industry growth rate of closer to 5%.

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