Analyst Note| Eric Compton |
No-moat-rated First Republic Bank reported fourth-quarter earnings of $1.88 per share, ahead of the FactSet consensus of $1.79 and just ahead of our own estimate of $1.83. Revenue came in at $1.44 billion compared with our own estimate of $1.49 billion. Net interest margins, or NIM, and the efficiency ratio both deteriorated in the quarter, which was expected. Deposit pricing increased from 0.74% to 1.63% in the period, while the bank’s NIM went from 2.71% to 2.45%.