Shares of First Republic Bank (NYSE:FRC) have fallen victim to the debacle around the SVB Financial Group (SIVB). Besides the similarities, that of being a regional bank and having multiple technology names as its clients, investors likely remember that as recent as February the bank raised $350 million by selling 2.5 million shares at $143 per share. That capital raise was opportunistic, adding to capital ratios, not because of credit losses but to fund continued growth.
A Small Intro
Since its founding in 1985, the San Francisco-based bank has been consistently profitable as it believes heavily on intimate relationships as well as great underwriting quality, with net charge-offs consistently coming in below the industry averages. Despite this discipline, the company has seen very strong growth in recent years, quickly growing its asset base.
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