trending Market Intelligence /marketintelligence/en/news-insights/trending/Xzw_RvcAGYj5MU0Zin9hmQ2 content esgSubNav
In This List

First Republic Bank no longer under FDIC's de novo scrutiny

Blog

Spotlight on sustainability: How banks can overcome the challenges of achieving net-zero emissions by 2050

Blog

Insight Weekly: US election scenarios; borrowing costs rise; commercial REIT fears

Podcast

Street Talk | Episode 100 - KBW CEO offers optimism for bears fearful of bank liquidity, credit

Blog

Insight Weekly: Stocks endure more pain; bank branch M&A slows; debt ratios fall


First Republic Bank no longer under FDIC's de novo scrutiny

San Francisco-based First Republic Bank is no longer considered a de novo bythe FDIC, thanks to a recent change by the regulator announced in April.

First Republic, established in 2010, was scheduled to besubject to de novo regulatory conditions for a seven-year period that would endJune 30, 2017, but the FDIC recently shortened that de novo period to threeyears. On May 4, the regulator told the bank it is no longer considered a denovo and is no longer subject to those conditions, according to FirstRepublic's Form 10-Q filed May 6.

Among other things, the bank was subject to an 8% Tier 1leverage ratio requirement as a de novo. It now needs a minimum of 4% and aratio of 5% to be considered well-capitalized. As of March 31, First Republic'sTier 1 leverage ratio was 9.38%, or 9.31% when adjusted for fully phased-inBasel III standards.