Relaunching Coverage of First Republic With $41 FVE and Very High Uncertainty Rating

We are relaunching coverage of First Republic. We emphasize that there is a high degree of uncertainty about the future value of First Republic and have increased our Morningstar Uncertainty Rating for the bank to Very High. The bank could largely maintain its deposit base and eventually recover to previous profitability expectations (fair value estimate of $120), it could only partially maintain the deposit base and suffer more permanent declines to profitability but still remain a viable franchise (fair value estimate of $88), it could see a material and permanent impairment in the profitability and brand of the franchise (fair value estimate of $23), or it could lose enough of its deposit base that under the right circumstances it could be worth $0 for current equityholders.