First Republic Bank in San Francisco reported higher second-quarter profit, driven by higher loan revenue and wealth management fees.
The $53.1 billion-asset bank's net income rose 9.3% to $117 million, or 80 cents per share, from a year earlier. That was a three cents better than the average estimate of analysts polled by Bloomberg.
Net interest income, after a provision for loan losses, rose 15% to $358.1 million. Income from loans rose 4.8% to $334 million, and investment income rose 52% to $77.2 million. The net interest margin narrowed by eight basis points to 3.30%.
Noninterest income rose 4.4% to $80.2 million, on higher revenue from investment advisory fees, income from life insurance, loan fees, brokerage fees and other categories.
Noninterest expense rose 18% to $263.1 million, from rise in salaries and employee benefits and an increase in professional fees. The efficiency ratio worsened by 35 basis points to 57.8%.