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sf_warriors t1_je7r16c wrote

Imo FRC will rise or fall after 04/13 ER, only an ER can reveal actual balance sheet of theirs. AFAIK It is a very well run and a reputed bank in SF, among all banks in the SF bayarea they are the pay masters and also hire the best talent. They have a very sticky customer base with industry leading customer satisfaction ratings, hence in-spite all this, we hear on social media a lot of their customers are sticking with them through this crisis.

People playing with puts/shorting be mindful that FRC is a very respected name among banking circles(i had worked for their competitors, 2 of the big 3 banks).

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diqster t1_je863r3 wrote

Not sticky at all. FRC makes you deposit a certain amount of assets in order to get favorable mortgage loan rates. Those deposits get bupkis for interest. Once your loan closes you can move the money elsewhere. They're not going to say you broke the covenant and foreclose on your underwater Bay Area home. Even during good times they would never do that. I know because I did it and asked friends if they did it, and they all said yes everyone does. Only the olds are keeping their money there and after last month I doubt even that's the case.

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sf_warriors t1_je8bfhq wrote

The kind of customers that bank with FRC are not in for those cheap tricks, they are wealthy and on an avg each account has $170,000 in deposits, the minimum balance to hold is $3,500 or else a $25 is charged.

Anyways 4/13 is not too far.

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diqster t1_je8g2fj wrote

Sure. Tell me what I already know. Former FRC client. You can get the mortgage then move the deposits somewhere to get a decent rate. I did it. Lots of others clearly did too. First Republic isn't offering anything that even a bottom tier private bank like Chase Private Client already is.

FRC had some nice ineterst only jumbo loans but other banks in the area already offer it. Ironically one of my banks now is SVB lol.

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sf_warriors t1_je8jhqo wrote

Firstly you need to understand that FRC is in the wrong news because 68% of its customer base hold more than $250,000 in their accounts, I am hearing from my sources that avg uninsured account is $11 million.

Only on 4/13 we will know how many of those 68% uninsured depositors are intact and how many left, they move the scale as the bank previously held $170 billion deposits and $205 billion assets in loans and bonds

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irongi8nt t1_je8h88y wrote

Chase doesn't do Jumbos, they are hard to find.

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diqster t1_je8hfkv wrote

Bay Area even Star One will give you a jumbo deal. Chase Private Client definitely does jumbos.

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slick2hold t1_jec0k11 wrote

FRC is also a spin off of BofA. If anything, if FRC was as conservative as bofa is then the longs have a great deal of excitement. As OP noted 30b is sitting with these guys from other banks. The 30b is free money sitting there wo any guarantees of getting it all back. The big banks will make sure it doesn't go under. Mind you, the risk is not the same as equity holders and shouldn't be equated in any manner. If FRC goes under the banks will get most of the 30b back...equity holders will get back zero.

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