Analyst Note| Eric Compton, CFA |
After incorporating the latest quarterly results, we are decreasing our fair value estimate for First Republic Bank to $185 per share from $195. This was primarily driven by a re-evaluation of our interest rate sensitivity assumptions following earnings (we decreased them slightly). Our fair value estimate equates to 2.7 times tangible book value as of December. This is generally below consensus but above the current market price after the bank's recent sell-off.