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First Republic Bank ($FRC) may present a good buying opportunity
*As of writing this article, the price is $31.4.
I’m tracking this periodically, so please follow for any new updates!
Summary:
I believe a price below $35 presents a good risk/return profile for $FRC due to recent news developments.
At a glance:
Total Asset:
212 Billion (as of 31st of December 2022 per their 10-K)
Total Deposit:
176.4 Billion (as of 31st of December 2022)
Can they survive?
Per the 2022 10-K:
Estimated uninsured deposits totaled $119.5 billion as of December 31, 2022
This means 67% of their deposits are uninsured by the Federal Deposit Insurance Corporation (FDIC), as they exceed the $250,000 FDIC insurance limit.
This places them only behind Signature Bank (SBNY), Silicon Valley Bank (SIVB), and Citibank ©, where the first two have already collapsed. However, FRC’s uninsured percentage is still significantly…
