First Republic Bank (NYSE: FRC) reported its Q4 results, with EPS of $1.88 coming in better than the consensus estimate of $1.80. Revenue was $1.4 billion, compared to the consensus estimate of $1.43 billion.

According to the analysts at RBC Capital, in a difficult rate environment for First Republic’s operating model, results were decent with continued strong loan growth helping offset some of the expected margin pressures. In addition, expense control was excellent, while fee revenues posted modest improvement. Credit remains very healthy relative to peers, with a growth-driven provision. The analysts adjusted their estimates lower due to the continued margin pressure but also noted they believe the stock deserves a continued premium valuation.

Their 2023 EPS estimate moved from $7.10 to $6.05 and their 2024 EPS estimate from $9.10 to $8.60. Their price target was lowered to $135 from $140 while the Sector Perform rating was reiterated.