Guilty By Association: First Republic Bank

Mar. 20, 2023 1:14 PM ETFirst Republic Bank (FRCB) StockFRCB124 Comments
Mark Dougherty
357 Followers

Summary

  • Recent bank collapses have spooked investors, with the overall banking industry taking massive losses this week.
  • Although the spotlight is being cast on Silicon Valley Bank and Credit Suisse Group AG, they have had problems lingering for quite some time.
  • First Republic Bank shares have fallen 80%, but the bank maintains a healthy balance sheet, as shown through their available-for-sale securities when compared to its equity.
  • First Republic Bank shares have been oversold and pose a unique buying opportunity.

Financial Markets Continue Volatile Week As Problems At Banks Spook Investors

Spencer Platt/Getty Images News

Investment Thesis

First Republic Bank (FRC) is guilty by association when looking at the recent bank collapses. Silicon Valley Bank of SVB Financial Group (SIVB) collapsed due to risk management negligence with regard to the duration of their

This article was written by

357 Followers
Hello, My name is Mark Dougherty. I currently have an MBA in finance, and am a CFA level I candidate. I have 7 years of work experience in financial modeling and valuation of private and public companies. I enjoy looking at long only equity positions that are considered value plays that involve a margin of safety with respect to the company intrinsic value vs market value.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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