First Republic Bank’s Financial Ratios Will Reveal Serious Trouble

First Republic Bank’s stock price has plummeted 87% since March 8^th, when the market learned of Silicon Valley Bank’s impending demise. This is not just a case of contagion. First Republic Bank
FRC
has series issues with its asset quality and significant loan growth, as well as with its funding sources. Today’s financials, will reveal current trouble spots.

Understandably, many investors will want to know what the bank’s earnings are. Without good earnings, one cannot expect capital or liquidity to be healthy. In addition, however, I urge you to look at asset quality, funding, liquidity, and capital ratios. Together, these ratios will give us a better picture of where this bank stands.