First Republic Bank Is a Bank Stock You Should Know
First Republic Bank (NYSE: FRC) is definitely a stock you want on your radar. The $128 billion asset bank focuses on serving high-net-worth individuals in wealthy markets such as Boston, New York City, Los Angeles, and San Francisco. Not only was it one of the top performing bank stocks over the last decade, but it is also one of the few banks still growing earnings during the coronavirus pandemic. It's trading just a few dollars lower than where it started the year. Here's why.
While most banks are reporting a significant decline in profits or losses, First Republic has actually managed to grow its earnings, despite the heavy economic downturn that has resulted from the pandemic. The bank reported net income in the second quarter of $256.8 million, up about $38 million from the second quarter of 2019. That's after increasing its dividend after the first quarter of the year. One main contributor to its second-quarter success was the ability to increase loan volume -- and net interest income -- by about $50 million year over year.
Image source: First Republic Bank.
Source Fool.com
