FRC - First Republic Facing A Tighter Squeeze On Spreads

Private banking-focused First Republic (FRC) remains one of the best bank growth stories in its size bracket, but even high-quality growth stories aren’t immune to cyclical pressures. While First Republic is confident that they can maintain mid-teens loan growth, higher competition for loans is limiting yields while deposit costs continue to rise, and expected rate cuts aren’t likely to help the situation. On top of that, the departure of a significant wealth management team is yet another reminder that companies don’t grow in smooth, uninterpreted arcs very often.

I’m concerned that First Republic

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