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First Republic Bank

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This article is about the bank based in San Francisco. For the defunct bank based in Dallas, see First Republic Bank Corporation.
First Republic Bank
Company typePublic
IndustryBanking
Financial services
Investment services
Founded1985
HeadquartersSan Francisco, CA, USA
Area served
California, Oregon, New York, Massachusetts, Connecticut, Florida, Wyoming
Key people
James H. Herbert II
Executive Chairman
Michael J. Roffler
CEO and President
ProductsConsumer Banking
Business Banking
Wealth Management
Mortgages
Revenue5,000,000,000 United States dollar (2021) Edit this on Wikidata
1,665,000,000 United States dollar (2022) Edit this on Wikidata
Total assetsUS$181.1 billion (2021)[1]
Number of employees
7,213 (2022) Edit this on Wikidata
Subsidiaries
  • First Republic Investment Management, Inc.
  • First Republic Securities Company, LLC
  • First Republic Trust Company
  • First Republic Trust Company of Delaware LLC
  • First Republic Trust Company of Wyoming LLC
Websitefirstrepublic.com

First Republic Bank is an American full-service bank and wealth management company offering personal banking, business banking, trust, and wealth management services, catering to low-risk, high net-worth clientele, and focusing on providing personalized customer experience. The bank specializes in delivering personalized relationship-based service through preferred banking or trust offices in the United States, including San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Palm Beach, Boston, Greenwich, New York City, Jackson, Wyoming, and Manhattan Beach.[1]

First Republic offers wealth management services through First Republic Wealth Advisors and First Republic Investment Management. Brokerage services are provided through First Republic Securities Company LLC and Trust services are provided through First Republic Trust Company.

Corporate history

Changes in ownership

First Republic was founded in 1985,[2] starting as a small thrift company.[3] The company went public in 1986.[4] On January 29, 2007, First Republic announced they would be purchased by Merrill Lynch for $1.8 billion.[5] The company was to be operated as a separate business of Merrill Lynch.[2] The Merrill transaction was finalized on September 21, of 2007. Robert J. McCann, president of Merrill's Global Wealth Management group stated their purpose was to accelerate their strategy of "growing our high net worth, private banking business."[6] Over the same weekend that Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection, on September 15, 2008, Merrill Lynch and its subsidiaries were acquired by Bank of America.[7]

In October 2009, just under 50% of First Republic was purchased by two private equity firms, Colony Capital and General Atlantic, and a group of other investors that included chairman James Herbert and former COO Katherine August DeWilde. The price was valued at about $1 billion. Both equity firms had prior relationships with First Republic Bank. Thomas J. Barrack, Jr., the head of Colony, had been a board member prior to the Merrill Lynch deal and General Atlantic had been an early investor in the firm putting up about $5 million in 1987.[8] The deal was consummated on July 1, 2010. The London-based news service reported that an additional $800 million was provided by the new investment consortium to meet new capital requirements established by U.S. regulators.[9]

Acquisitions and Gradifi

In 1993, First Republic acquired a small industrial loan company called the Silver State Thrift and Loan Association.[10] In 1998, it acquired Trainer Worthman & Co., and in December 2001, it acquired Starbuck, Tisdale & Associates for $13 million in cash and stocks.[11] In January 2000, First Republic acquired an 18 percent interest in Froley, Levy Investment Company Inc., and in 2002, it purchased the investment firm for $17 million in cash and stock.[11] In December 2010, the bank completed its second IPO for $280.5 million, with shares opening at $27.25.[12]

In 2015, First Republic purchased Constellation Wealth Partners for $115 million.[13][14] By April 2016,[15] First Republic had opened branches at the Facebook and Twitter Inc. headquarters in Silicon Valley.[16] It also had various high-profile customers.[17] Barron's in September 2016 decided to list First Republic Bank at 21 on its list of America's Top 40 Wealth Management Firms.[14] By December 2016, First Republic Bank had $68 billion in assets.[18]

In December 2016, the bank acquired Gradifi, a startup in Boston, for an unknown cash amount.[19][18] Then two years old, Gradifi works with companies to help their employees pay off student debt,[18] and First Republic had become a client in August 2016.[19] Becoming a wholly owned subsidiary of First Republic,[19] Gradifi continues to operate in Boston under its own name.[18][19] Gradifi retained its customer base including PricewaterhouseCoopers, Natixis Global Asset Management and Penguin Random House.[19]

Remaining a large American bank,[20] in March 2018, the bank invested in CommonBond, a student loan financier.[21] First Republic announced it would expand into Jackson, Wyoming in May 2018 with a new branch.[22] Also that month, First Republic signed a deal to double its space at Rockefeller Center in New York City.[23]

Business growth and size

First Republic opened a trust company in Delaware in 2012 and an investment office in Palm Beach, Florida, in 2013.[24][25]

In June 2018, Forbes ranked First Republic #220 on its Global 2000 list of "growth champions." Forbes also ranked it #268 on America's largest public companies. With 5,350 employees at the time, First Republic had a market cap of $14.32 billion[26] and wealth management assets totaling $126.2 billion.[27] In 2019, First Republic opened an investment office in Washington D.C.[28] In January 2020, First Republic announced the opening of a Wyoming-based trust company.[29] At the end of 2021, First Republic had $279.4 billion in wealth management assets.[30] Currently, First Republic Bank has over 80 bank locations in 11 states across the U.S. These locations are primarily in New York, California, Massachusetts, and Florida.[31]

Subsidiaries

  • First Republic Investment Management, Inc.
  • First Republic Securities Company, LLC
  • First Republic Trust Company
  • First Republic Trust Company of Delaware LLC
  • First Republic Trust Company of Wyoming LLC[29]

References

  1. ^ a b "First Republic Bank - Who we Are Release".
  2. ^ a b Merrill Lynch to Acquire First Republic Bank for $1.8 Billion, Press Release, January 29, 2007 Archived March 9, 2012, at the Wayback Machine
  3. ^ First Republic: Is It Wrong to Build a Bank for Wealthy Clients Only? in The Wall Street Journal by Rachel Louise Ensign, Anna Maria Android and Robert S August 16, 2016
  4. ^ Rauch, Joe (2010-11-29). "First Republic files IPO just months after buyout". Reuters. Retrieved 2022-09-08.
  5. ^ Reuters. "Merrill Lynch to Buy First Republic Bank for $1.8 Billion". CNBC. Retrieved 2022-09-08. {{cite web}}: |last= has generic name (help)
  6. ^ Merrill Lynch and First Republic Bank Successfully Close Merger, Press Release, September 21, 2007 Archived March 9, 2012, at the Wayback Machine
  7. ^ Weekend Merger Struck With Bank of America, , September 15, 2008
  8. ^ Bank of America Sells First Republic Bank, New York Times by Zachery , October 21, 2009
  9. ^ General Atlantic, Colony Capital close First Republic Bank deal , July 21, 2010 Archived August 12, 2011, at the Wayback Machine
  10. ^ "First Republic acquires Silver State thrift". American Banker. 1993-12-30. Retrieved 2022-09-08.
  11. ^ a b "First Republic buys LA firm for $17M". BizJournals. 2002-02-01. Archived from the original on 2003-09-29. Retrieved 2022-09-09.
  12. ^ Baldwin, Clare (2010-12-09). "First Republic shares rise in IPO debut". Reuters. Retrieved 2022-09-09.
  13. ^ "First Republic to Acquire Constellation Wealth Advisors". Yahoo Finance. 2015-06-15. Retrieved 2022-09-09.{{cite web}}: CS1 maint: url-status (link)
  14. ^ a b America's Top 40 Wealth Management Firms in Barron's by Matt Barthel, September 17, 2016
  15. ^ Wealth Management Lifts First Republic Profit in American Banker by Jacob Passy, April 14, 2016
  16. ^ Silicon Valley Elites Get Home Loans With No Money Down in Bloomberg News by Heather Perlberg and Prashant Gopal, July 27, 2016
  17. ^ First Republic: Is It Wrong to Build a Bank for Wealthy Clients Only? in The Wall Street Journal by Rachel Louise Ensign, Anna Maria Andriotis and Paul Overberg, on August 16, 2016
  18. ^ a b c d First Republic Buys Student-Debt Startup Gradifi in American Banker by Joseph Kellard on December 12, 2016
  19. ^ a b c d e First Republic Bank scoops up Boston student debt startup in the Boston Business Journal by Kelly J. Obrien, December 12, 2016
  20. ^ "Full List: Ranking America's 100 Largest Banks 2018". Forbes.
  21. ^ "Student Lender CommonBond Raises $50M to Invest in Technology, Blockchain". Forbes.
  22. ^ https://www.bizjournals.com/sanfrancisco/news/2018/05/07/first-republic-bank-wyoming-branch-frc.html [bare URL]
  23. ^ "First Republic Bank Renews and Expands to 280K SF in Rock Center". 29 May 2018.
  24. ^ Berardi, Greg (2013-02-14). "First Republic Bank Opens Office in Palm Beach". Yahoo. Retrieved 2022-09-09.{{cite web}}: CS1 maint: url-status (link)
  25. ^ MarketScreener (2012-03-12). "First Republic Bank Opens Delaware Trust Company; Appoints John McCabe as Managing Director and Senior Trust Officer". MarketScreener. Retrieved 2022-09-09.{{cite web}}: CS1 maint: url-status (link)
  26. ^ "First Republic Bank (FRC) - Market capitalization". companiesmarketcap.com. Retrieved 2022-06-15.
  27. ^ "Form 8-K – December 31, 2018 Earnings Press Release". First Republic. December 31, 2018. Retrieved June 15, 2022.{{cite web}}: CS1 maint: url-status (link)
  28. ^ Medici, Andy (2019-10-03). "California bank quietly opened an investment office in D.C." BizJournals. Retrieved 2022-09-09.{{cite web}}: CS1 maint: url-status (link)
  29. ^ a b MarketScreener. "First Republic Bank : Opens Wyoming Trust Company | MarketScreener". www.marketscreener.com. Retrieved 2022-06-15.
  30. ^ "First Republic Reports 2021 Results". www.yahoo.com. Retrieved 2022-06-15.
  31. ^ "First Republic: Preferred Banking Offices".
  • Official website
  • Business data for First Republic Bank:
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