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First Republic Bank in San Francisco reported flat fourth-quarter profits as strong deposit growth and gains in both interest and fee income were largely offset by higher expenses.
January 15 -
Royal Bank of Canada's deal for City National showed that buyers will pay up for banks that cater to the wealthy. That's why First Republic, Boston Private and Signature Bank may soon find themselves facing offers they can't refuse.
February 6 -
James Herbert's bank is thriving by delivering top-notch service and maintaining strict underwriting standards at a time when many banks are struggling to increase revenues and undercutting each other to win loan business.
December 21
First Republic Bank reported higher
The company said in a press release Thursday that its first-quarter net income rose 1% from a year earlier, to $115.9 million. Earnings per share of 71 cents beat the average estimate of analysts polled by Bloomberg by 2 cents.
At $51.1 billion in assets, First Republic has set in motion a process for becoming a systemically important financial institution. The company said it is on a course to reach SIFI status later this year.
Net interest income jumped 9%, to $348 million, as loans grew 13%, to $38.8 billion. The net interest margin compressed by 16 basis points, to 3.21%.
A rise in fee revenue also helped to compensate for lower loan yields. Noninterest income jumped 23%, to $74.9 million, as the company expanded its investment advisory business.
Higher costs weighed down profits. Noninterest expenses rose 18%, to $255.7 million, mostly from salaries and employee benefits. Professional fees also increased as the company made compliance-related investments tied to eventually becoming a SIFI.
