2. First Republic Bank Shares of First Republic Bank ( FRC) of San Francisco closed at $32.31 Tuesday, returning 6% year-to-date, following a 5% return during 2011. After being acquired by Bank of America ( BAC) as part of that company's purchase of Merrill Lynch in January 2009, First Republic was sold in July 2010 to an investor group that included Colony Financial ( CLNY) and General Atlantic LLC, and was led by First Republic's original management team. First Republic completed a public offering of common shares in December of 2010. First Republic has been the strongest earner among the four banks listed here, with ROA ranging between 1.28% and 1.42% and ROE ranging from 13.08% to 15.12% over the past five quarters, according to Thomson Reuters Bank Insight. The bank had $30.1 billion in total assets as of June 30, with offices in California, Oregon, Connecticut, Massachusetts and New York, focusing on private banking. "They have a very big client acquisition strategy," says Coffey, "with a bunch of relationship managers marketing products to high net worth individuals, leading with mortgage product." Although "their footprint is in coastal areas, 35% of their business comes from the San Francisco/Silicon Valley area," the analyst says, "and with venture capital directed toward Silicon Valley companies, and with M&A and a functioning IPO market," there are many newly affluent potential customers for First Republic to target. The bank reported second-quarter net income available to common stockholders of $80.6 million, or 60 cents a share, declining from $89.3 million, or 67 cents a share, in the first quarter, and $84.8 million, or 64 cents a share, in the second quarter of 2011. The earnings decline in the most recent quarter mainly reflected $13.2 million, or 10 cents a share, in charges related to the redemption of $60 million in Series D preferred stock of First Republic Preferred Capital Corp. First Republic said that "excluding the impact of purchase accounting, net income for the second quarter of 2012 was $70.9 million, up 31% from last year's second quarter." After the bank reported its second-quarter results in July, Coffey said that "net Interest Income and non-interest income were both near the highest estimates on the Street, at $301 million and $37 million, respectively," and that "NII of $290.6 million, a 3% increase from the previous quarter, resulted from a 7% sequential increase in gross loans to $25 billion," while "non-interest income, including gain on sales of mortgages, increased 12% to $36.6 million due to a 25% increase in gain on sale and a 13% increase in wealth management fees." First Republic's shares trade for 1.7 times their reported June 30 tangible book value of $19.58, and for 11 times the consensus 2013 EPS estimate of $2.88. The consensus 2012 EPS estimate is $2.69. Coffey rates the bank "outperform," with a price target of $39, and estimates First Republic will earn $2.76 a share for all of 2012, followed by 2013 EPS of $3.28. FRC data by YCharts Interested in more on First Republic Bank? See TheStreet Ratings' report card for this stock.