First Republic Bank in San Francisco expects its four-quarter average assets to reach $50 billion late next year.
The $46.2 billion-asset company also disclosed in a regulatory filing that it expects to lower its core efficiency ratio to 57% to 61%, compared to a previous goal of 59% to 62%. First Republic launched a cost-containment initiative this quarter.
Financial institutions that have $50 billion in asset for four consecutive quarters are considered a systemically important financial institution under the Dodd-Frank Act.
Julianna Balicka, an analyst at Keefe, Bruyette & Woods, viewed First Republic's latest disclosures favorably. In a note to clients, she said the company's growth trajectory suggests that it could have solid loan growth next year. (First Republic previously said it expected to hit that mark during the second half of next year.)
Balicka also wrote in her note that current cost containment efforts could offset some of the expected regulatory expense tied to exceeding $50 billion in assets.