FRC - First Republic's Differentiated Model Continues To Stand Out During Challenging Times
- First Republic probably won't have the best earnings relative to analyst expectations for Q3, but the mid-single-digit pre-provision growth compares very well, as does the 19% loan growth.
- Credit remains virtually pristine and overall deferrals and risk exposures to COVID-19 remain low.
- Most of the bank's loan growth is in the mortgage space, but management seems to be selectively taking advantage of some opportunities in multi-family and CRE.
- First Republic's valuation makes it a more borderline buy/hold call, but I believe the quality and the relative growth potential keep it in the former category.
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First Republic's Differentiated Model Continues To Stand Out During Challenging Times