First Republic Bank (NYSE:FRC) shares dropped more than 16% on Friday on the company’s Q3 net interest income miss (net interest income looking ahead is about 4 basis points lower than the growth forecast of 2.75%).

Q3 EPS came in at $2.21, compared to the Street estimate of $2.19, and revenue at $1.5 billion, compared to the Street estimate of $1.55 billion.

Analysts at RBC Capital lowered their price target on the company’s shares to $140 from $163 following the results, highlighting that margin pressure is the near-term headwind. Other highlights included strong loan and deposit growth, clean credit, modestly higher core expenses, and a provision that was growth driven.

According to the analysts, the current margin pressure that is due to rising short-term rates and funding costs are headwinds that may not improve in the very near term. Despite the negative stock price reaction, the analysts view Q3 as a solid quarter that reflected strong loan and deposit growth trends.

The company’s outlook was mixed, as the growth trajectory was raised again to over 20% pace for the year, while the margin guidance was reduced to the low-end of the 2.65% to 2.75% range.