Why First Republic Bank (FRC) Is Down Today

NEW YORK (TheStreet) -- First Republic Bank (FRC) was falling -15.1% to $46.69 Wednesday after missing analysts' expectations for earnings and revenue in the second quarter.

For the second quarter First Republic reported earnings of 69 cents a share, missing the Capital IQ Consensus Update of 76 cents a share by 7 cents. Revenue grew 17.2% to $388.8 million, missing analysts' estimates of $411.23 million for the quarter.

The bank forecasted its efficiency ratio at 59% to 62%, and said it will remain elevated until sometime in 2016.

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TheStreet Ratings team rates FIRST REPUBLIC BANK as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate FIRST REPUBLIC BANK (FRC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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