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Friday's Bank Stocks: First Republic falls more than 7% after earnings

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Friday's Bank Stocks: First Republic falls more than 7% after earnings

First Republic Bank fell 7.05% to $94.97 on Friday, Oct. 13, after reporting third-quarter 2017 earnings.

The San Francisco-based company's net income applicable to common shares rose to $185.7 million, or $1.14 per share, from net income of $154.4 million, or $1.00 per share, a year ago.

In a research note, FIG Partners analyst Timothy Coffey wrote that "results in the quarter and our reduced forward expectations both reflect headwinds to efficiencies and margin." Coffey lowered his fourth-quarter EPS estimate to $1.21 from $1.24.

On an earnings call, executives said competitive loan pricing and high demand created pressure around the bank's net interest margin, which ticked up slightly to 3.16% from the previous quarter. The company's efficiency ratio rose to 62.4%, up from 61.9% in the linked quarter and up from 60.5% a year ago.

Elsewhere on the earnings front, Wells Fargo & Co. fell 2.75% to $53.69 after reporting about a 2% drop in revenue from the year-ago period, and Bank of America Corp. gained 1.49% to $25.83 after posting estimate-beating net income.

As a whole, bank and thrift stocks edged lower Friday. The SNL U.S. Bank Index fell 0.41% to 572.25 and the SNL U.S. Thrift Index dipped 0.18% to 943.99.

Citigroup Inc. slid 0.36% to $72.11, and JPMorgan Chase & Co. slipped 0.14% to $95.86.

Among other notable movers, First Financial Bankshares Inc. gained 2.02% to $45.40, Ameris Bancorp fell 1.80% to $49.05, and East West Bancorp Inc. slipped 1.50% to $58.63.

There were no notable movers in the thrift space.

In other news, the Consumer Financial Protection Bureau has confirmed that Assistant Director of Enforcement Anthony Alexis is leaving the agency.

In broader markets, the Dow Jones Industrial Average added 0.13% to 22,871.72, the Nasdaq Composite Index added 0.22% to 6,605.80 and the S&P 500 rose 0.09% to 2,553.17.

S&P Dow Jones Indices and S&P Global Market Intelligence are owned by S&P Global Inc.

Market prices and index values are current as of the time of publication and are subject to change.