First Republic earnings call not going well


Flattish for most of the session following this morning's earnings miss, First Republic (FRC -13.7%) tumbles amid the earnings call, with management noting the elevated expenses associated with getting over $50B in assets (and thus being subject to heightened regulatory scrutiny).

The bank says its efficiency ratio - guided at 59-62% - will remain elevated until sometime in 2016.

New York Community Bank (NYCB -3%) - also around that $50B level - is sliding in concert.

Previously: First Republic Bank misses by $0.07, misses on revenue

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Comments (5)
  • ECapo
    , contributor
    Comments (737) | Send Message
     
    I wonder what this means for NYCB now. They have been expecting this for years.
    16 Jul 2014, 03:19 PM Reply Like
  • Bogie 1
    , contributor
    Comments (145) | Send Message
     
    It means nothing, with Ficalora getting $8 plus million a year in dividends plus $17 plus million in non-exercised options and $3m per year base salary, do you think something matters to this old stodgy board? It will be business as usual.
    16 Jul 2014, 04:06 PM Reply Like
  • Dan Terry
    , contributor
    Comments (37) | Send Message
     
    Good opportunity to stock up on NYCB, I will be buying on this dip/news that is not even about NYCB, they are a separate bank and happen to do very good business in very wealthy areas of the country.
    16 Jul 2014, 04:12 PM Reply Like
  • madmax02
    , contributor
    Comments (31) | Send Message
     
    i agree this has got to be an over reaction
    Buy??? yup
    16 Jul 2014, 04:34 PM Reply Like
  • mjkapan
    , contributor
    Comments (11) | Send Message
     
    I guess the big question is what will happen to the share price when/if earnings dip below the $.25 dividend payout. Fear of lowering that dividend could have a significant impact on what the market perceives.
    17 Jul 2014, 02:42 PM Reply Like
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