First Republic (FRC) Poised For Growth: Should You Hold?

Banks constitute a major part in the broad Finance sector. Recent developments in the banking sector, including the Fed interest rate hike and the approval of Financial Choice Act, are driving factors for investors to add banking stocks to their portfolio.

Therefore, First Republic Bank (NYSE:FRC) can be one such stock. Though the company recorded escalating expenses, it has been growing through considerable top-line strength on growth in loans and deposits balances.

First Republic’s future prospects look promising driven by consistent growth in loans and deposits, along with anticipated lesser regulations. Further, the company continues to benefit from an improving net interest income and non-interest income.

With the gradual change in the rate environment, margin pressure for First Republic seems to be easing with the expectation of same in the near term. Also, the company has been benefiting from improved loan yields.

However, escalating operating expenses have been a concern for First Republic. Notably, cost savings from completed build-out of systems and processes required for crossing $50 billion in total assets are being invested into digital initiatives, including mobile banking applications and data analytics. As such, operating costs are likely to remain elevated in the near term.

Other Stocks to Consider

BOK Financial Corporation (NASDAQ:BOKF) , Comerica Incorporated (NYSE:CMA) and BancFirst Corporation (NASDAQ:BANF) are the stocks worth considering, with their estimates witnessing upward revisions for the last 30 days.

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Comerica Incorporated (CMA): Free Stock Analysis Report

BOK Financial Corporation (BOKF): Free Stock Analysis Report

BancFirst Corporation (BANF): Free Stock Analysis Report

FIRST REPUBLIC BANK (FRC): Free Stock Analysis Report

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