First Republic Reports Strong Second Quarter Results

First Republic Bank (“First Republic” or the “Bank”) (NYSE: FRC) today announced financial results for the second quarter ended June 30, 2012.

“First Republic reported excellent second quarter results due to strong growth in loans, deposits and wealth management assets,” said Jim Herbert, Chairman and CEO of First Republic Bank. “Credit quality remained exceptionally good, and we were very successful in expanding the franchise and acquiring new clients.”

Quarterly Cash Dividend Declared

The Bank declared an initial quarterly cash dividend of $0.10 per share. The dividend is payable on August 15, 2012 to shareholders of record on August 1, 2012. Mr. Herbert noted, “First Republic is pleased to declare its initial common stock dividend, which reflects the strength of our business and capital position.”

Financial Highlights

• Book value per share increased by 15% year over year to $20.74 per share.
• Asset quality remains strong; nonperforming assets remained steady at only 10 basis points of total assets.
• Loans outstanding were $25.5 billion at June 30, 2012, up 7% for the quarter and 10% since year-end.
• Net income was $97.9 million for the second quarter of 2012, compared to $84.8 million for last year’s second quarter. Diluted earnings per share (“EPS”) were $0.60 for the second quarter of 2012, after a $0.10 per share one-time charge following the redemption of the Series D preferred stock of First Republic Preferred Capital Corporation (“FRPCC”).
• Excluding the impact of purchase accounting, net income for the second quarter of 2012 was $70.9 million, up 31% from last year’s second quarter. On this non-GAAP basis, and also excluding the one-time FRPCC preferred stock redemption charge, the second quarter diluted EPS were $0.50, up 22% over last year’s second quarter. ⁽¹⁾
• For the six months ended June 30, 2012, net income was $189.7 million, an increase of 9% compared to the same period in 2011, and diluted EPS were $1.27, following the $0.10 per share one-time preferred stock redemption charge.
• For the six months ended June 30, 2012, excluding the impact of purchase accounting, net income was $139.0 million, an increase of 28% compared to the same period in 2011. On this non-GAAP basis, and also excluding the one-time FRPCC preferred stock redemption charge, diluted EPS were $0.99, up 21% compared to 2011. ⁽¹⁾
• Loan originations were $4.0 billion for the second quarter of 2012, our highest quarter ever; for the six months ended June 30, 2012, loan originations were $7.1 billion.
• Deposits were $24.2 billion at June 30, 2012, up 4% for the quarter and 8% since year-end.
• Wealth management assets were $23.3 billion at June 30, 2012, up 6% for the quarter and 14% since year-end.
• Net interest margin was 4.27% for the quarter, compared to 4.39% for the prior quarter and 4.67% for last year’s second quarter.
• Excluding the impact of purchase accounting, the net interest margin was 3.48% for the quarter, compared to 3.64% for the prior quarter and 3.54% for last year’s second quarter. ⁽¹⁾
• The efficiency ratio was 52.4% for the second quarter of 2012, compared to 52.5% for the prior quarter and 48.9% for last year’s second quarter.
• Excluding the impact of purchase accounting, the efficiency ratio was 60.5% for the second quarter of 2012, compared to 59.6% for the prior quarter and 59.1% for last year’s second quarter. ⁽¹⁾

“In the second quarter, First Republic delivered strong results across all segments of the franchise – private banking, business banking and wealth management,” said Katherine August-deWilde, President and Chief Operating Officer. “In particular, we reported our highest loan volume and wealth management revenue for a single quarter. Business banking also continued to perform well.”

1 2 3 4 5 6 7 8 Next › Last »