Shares of First Republic Bank of San Francisco plunged Monday on news that its third-quarter earnings would fall short of estimates.
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The $10.4 billion-asset company said that it expects earnings per share of 56 cents to 58 cents, and it attributed 7 cents of the expected shortfall to a reduction in its effective tax rate. Analysts polled by Thomson Financial had predicted earnings of 62 cents for the quarter that ended Sept. 30.
In Monday's announcement First Republic cited net interest margin pressure brought on by a rise in interest rates, as well as costs associated with its deal to acquire the $570 million-asset Bank of Walnut Creek.
In heavy trading, the stock was closed at $38.75 late Monday, down 9% from Friday's close.
