First Republic: Short-Term Margin Compression Will Result in Long-Term Gains
First Republic is largely in the business of serving high-net-worth individuals in the coastal regions -- think San Francisco, Los Angeles, New York City, Boston, and other similar markets.
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It does this by providing a high-touch customer service model that its customers love, leading them to come back to the bank for return business and refer their friends to the bank, which leads to lower customer acquisition costs.
Source Fool.com