First Republic Bank in San Francisco said its second-quarter earnings rose 21% from a year earlier, to $15.4 million, because of strong loan growth.
Processing Content
Loans increased 23.7%, to $7.4 billion, First Republic said Thursday. However, the net interest margin shrank 16 basis points, to 3.19%, because of higher funding costs. As a result, net interest income rose only 16%, to $62.2 million.
During the quarter, the $10.4 billion-asset company opened trust and wealth management offices in Seattle and Portland, Ore., and it announced a deal to buy the $570 million-asset Bank of Walnut Creek. The deal is expected to close next quarter.
