First Republic Bank (NYSE:FRC) is a California based commercial bank and trust. The bank focuses on what it calls relationship-based Preferred Banking. As of September 2010, the bank had $22B in total assets, $19B in deposits, $2B in equity, and $17.2B in assets under management. First Republic operates 61 offices located in 8 metropolitan areas. In terms of total deposits, First Republic is the 44th largest bank in the United States.
Because First Republic focuses on relationship banking, its customers tend to be high net worth individuals who want large single family mortgage loans. In order to best serve these clients, FRC is located along the coastal regions which have only 20% of all US households, but 53% of all US households with at least $1M in investable assets. This group of customers also tend to have a higher credit rating, and so the company is able to generate a stronger, more stable revenue base.
The company's initial public offering of stock on the NYSE occurred on December 8, 2010. The company offered approximately 11M shares each for $25.50. This was within the initial price range of $24-$27. The IPO raised a total of well above the initial range of below the initial range of $9-$11. The IPO raised a total of $280.5M. The lead underwriters of the deal were Bank of America (BAC), Morgan Stanley (MS), and J P Morgan Chase (JPM).
First Republic's total assets remained relatively stable from 2009 to 2008, rising by approximately $250M to $19.9B. Interest income on the other hand rose to $1.2B in 2009, a 35% increase over the 2008 interest income figure of $899M.