First Republic Bank (FRC) Bank of America Merrill Lynch Banking & Financial Services Conference Call November 15, 2011 2:05 pm ET Executives Ericka Penala – Bank of America Merrill Lynch James H. Herbert, II – Chairman of the Board & Chief Executive Officer Founding Analysts Unidentified Analysts PresentationEricka Penala – Bank of America Merrill Lynch
I’m Ericka Penala and I’m the regional banking analyst here at Bank of America Merrill Lynch. It is my pleasure to introduce up next Chairman and Chief Executive Officer Jim Herbert of First Republic Bank. Headquartered in San Francisco with $26 billion in assets, First Republic focuses on serving high net worth customers in urban coastal cities on the east and west coast. The bank completed its initial public offering in December 2010 and continues to be one of the fastest growing banks in the industry while offering among the best [inaudible] metrics throughout its life cycle. With that, I’d like to turn the presentation over to Jim. James H. Herbert, II I’m going to go through a slide presentation and I’ll do that fairly quickly and informally hopefully and then we’ll open up for questions. Just to stand back for a second, we started the bank with 10 people, it was de novo in 1985, it was actually an industrial loan company initially not federally insured. We’ve grown ever since but we have focused on high net worth individuals through home mortgage for a long time. Where, as Ericka said, we’re about $27 billion now, we have deposits of $22 billion and importantly, our credit is very clean. We’ve been under 15 basis points. We did sell the bank, we were public in ’86, we sold to Merrill Lynch at the end of ’06, closed in ’07 and that was an interesting experience and we bought the bank back recently successfully. The good news is when we went into Merrill and BofA the deal was struck in a way that kept the bank intact. Basically, that was the idea from the beginning so we were able to buy back quite a clean isolated entity.