First Republic Bank (NYSE:FRC) Q4 2019 Earnings Conference Call - Final Transcript

Jan 14, 2020 • 10:00 am ET


First Republic Bank (NYSE:FRC) Q4 2019 Earnings Conference Call - Final Transcript


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Michael J. Roffler

to be in the mid-teens. Our net interest margin is expected to be in the range of 2.65% to 2.75%, which assumes an unchanged fed funds rate throughout 2020. Assuming the present shape of the yield curve and competitive dynamics, we currently expect to operate in the middle-to-lower half of that range.

The efficiency ratio is expected to be in the range of 63.5% to 64.5%. As a reminder, our first quarter efficiency ratio is typically higher due to the seasonal impact of payroll taxes and benefits. With respect to income taxes, the full year tax rate is expected to be 20% to 21%. The tax rate in the first half of 2020 is expected to be a little lower due to the anticipated exercise of stock options that predominantly expire on July 1, 2020.

Overall, it was a very strong year that speaks to the sustainable power of our business model. Now, I will turn the call back to Jim.

James H. Herbert, II

Thank you, Gaye and Mike. It was a terrific year by every measure. For almost 35 years, our simple, straightforward, very client-centric business model has been consistently profitable. Delivering exceptional client satisfaction one client at a time year in and year out is the driver of our growth. We're very proud of the entire First Republic team and their ability to work in such unison to deliver this exceptional client service once again.

We continue to maintain a culture of collaboration and remain intensely focused on supporting the success of our clients. Looking ahead, we expect to continue delivering the same safe, stable organic growth, coupled with our very conservative underwriting standards and strong capital at all times.

Now, we'd be happy to take your questions.