First Republic Bank 3Q14 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

The Bay Area is booming

“All of First Republic’s urban coastal markets are performing very well. This is especially true of the San Francisco Bay Area, our largest market, which represents 46% of the bank’s loan portfolio. A few statistics about the San Francisco region are worth noting. The Bay Area has the highest GDP per capita in the United States. More Fortune 500 companies are located in the Bay Area than any other U.S. region, with the exception of New York, which is First Republic’s second largest market.

The Bay Area has the largest number of top 10 ranked graduate programs in business, law, medicine and engineering in the nation, as well as the highest concentration of venture capital in the world. The vibrancy of the San Francisco Bay Area economy is a key driver of both our private banking and private business banking”

Enough housing inventory for our clients to find houses

“We realize there’s lot of talk about inventory issues. What we’re finding is that our clients seem to be winning the purchases perhaps with our help and our commitment letters. So there is enough inventory for the clients that we are working with to buy houses and that’s terrific.”

When the stock market goes down it does affect purchase volumes, but normally refis take their place

“Generally when there is a decline in the stock market, there is a pause in purchase activity. But when there is a decline in purchase activity because of stock market variations like this and rates are down, we see an uptick in refi activity and we usually get more than our share.”

A couple thousand clients represent 40% of deposits

“Couple thousand clients spread across the bank where we have very deep relationships with.”