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CEO Joe Ficalora says the thrift has ways it can buy time to announce a transformative acquisition or benefit from a change in the definition of what it requires to be a systemically important institution. With OneWest off the table, industry observers wonder if the thrift can find the deal its been looking for.
July 23
First Republic Bank in San Francisco expects its four-quarter average assets to reach $50 billion late next year.
The $46.2 billion-asset company also disclosed in a regulatory filing that it expects to lower its core efficiency ratio to 57% to 61%, compared to a previous goal of 59% to 62%. First Republic launched a cost-containment initiative this quarter.
Financial institutions that have $50 billion in asset for four consecutive quarters are considered a
Julianna Balicka, an analyst at Keefe, Bruyette & Woods, viewed First Republic's latest disclosures favorably. In a note to clients, she said the company's growth trajectory suggests that it could have solid loan growth next year. (First Republic previously said it expected to hit that mark during the second half of next year.)
Balicka also wrote in her note that current cost containment efforts could offset some of the expected regulatory expense tied to exceeding $50 billion in assets.
