First Republic Bank’s Earnings Call Did Not Inspire Confidence

Few things inspire less confidence in investors and analysts than to tell us that you will not be giving earnings guidance about the future and that you will not be taking any questions. “Given the events of March, we are withdrawing all previously communicated financial guidance. Please note that there will be no question-and-answer session following our prepared remarks,” said Mike Ioanilli, Vice President and Director of Investor Relations at First Republic Bank’s
FRC
earnings call yesterday. The entire call, where CEO and President Mike Roffler sped read prepared remarks, took about 12 minutes. I cannot recall hearing such a short call since perhaps the financial crisis.

Since before the earnings call, when First Republic’s stock price had risen to $16, it has now declined by almost 21% to $12.68 before the market has even opened. Since March 8, when Silicon Valley Bank’s implosion became apparent, First Republic Bank’s stock has fallen 89%. It is imperative that the bank’s executives come forward and explain to market participants what is its credible plan to turn the bank around. It is in an organization’s crisis like what First Republic is going through, when we really find out what management is really like.