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.