UBS analyst Erika Najarian on Friday said First Republic Bank FRC does not have the same exposures as ailing technology sector lender SVB Financial Group SIVB, the parent company of Silicon Valley Bank. “We believe FRC is no SIVB,” Najarian said. A recent meeting that UBS had with First Republic CEO Mike Roffler suggests that venture capital and private equity deposits were just 8% of bank’s total. By comparison deposits from funds and early stage companies comprised 52% of Silicon Valley Bank’s balance sheet, Najarian said. First Republic’s available for sale securities (AFS) portfolio is 1.7% of earning assets, versus 14% for SIVB before liquidation. “FRC has historically thrived in periods of disruption, given its well-earned reputation as a ‘quality’ bank,” Najarian said. “While the bank has grown much since, one of FRC’s most banner origination years was during the depths of the Global Financial Crisis.” First Republic stock is down 0.9% after steeper losses earlier on Friday.
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