First Republic

Record loan originations and strong growth in wealth assets under management more than offset a double-digit increase in expenses at the San Francisco company.

Fifth Third and First Republic are among the investors in the company’s $50 million equity round.

Wealth management assets, deposits and fee income swelled at the San Francisco bank, but interest and noninterest costs rose along with them.

The San Francisco bank has pulled in 10,000 new households with loan products geared toward young professionals.

Flush with cash, many commercial firms are also opting to pay down debt rather than take on new loans, and those seeking financing aren’t always turning to banks to meet their needs.

Expenses also rose, as well as the provision for loan losses, but credit quality remained spotless at the lender to the wealthy.

James Herbert, 72, has once again postponed retirement. The longtime CEO was scheduled to step down at yearend, but the company says he will remain at the helm through 2020.

Record loan originations and the continued accumulation of wealth management assets added up to 12% earnings growth at the San Francisco bank.