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First Republic Bank in San Francisco is planning to open as many as seven new offices on the East Coast this year and another three on West Coast as it looks to boost its market share among affluent households in the California, New York and Boston markets.
March 6
Rising mortgage lending and a growing wealth management business is propelling profits at First Republic Bank (FRC) in San Francisco.
Earnings at the $32.5 billion-asset company rose 10.6% to $97 million in the third quarter, compared with a year earlier.
Net interest income was $298.8 million, up 11.1% from a year earlier, though its interest margin fell 35 basis points, to 4.13%, due to declining yields on assets.
First Republic sold $774 million in primarily longer-term, fixed-rate home loans during the quarter, a nearly 352% increase from a year ago, and an increase of 77.5% from the second quarter. The bank recorded net gains of $12.5 million on the loans in the third quarter, an increase of 184% from the prior quarter.
Noninterest expense climbed 23.2% from a year earlier to $178.3 million, primarily because of an increase in personnel to support growth in its lending and wealth management businesses, the company said.
Noninterest income rose 20%, to $43.8 million. The increase reflected a rise in fees in investment advisory, trust and foreign exchange services, according to the company. First Republic recorded $24.8 billion in wealth management assets, 34.8% higher than a year earlier.
