This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

First Republic Reports Strong Second Quarter Results

At June 30, 2012, checking and savings accounts were 86% of total deposits, compared to 82% at year-end. Such accounts increased 13% since year-end, from $18.5 billion to $20.8 billion.

The contractual rate paid on all deposits averaged 0.38% during the second quarter of 2012, compared to 0.40% for the first quarter of 2012 and 0.73% during the second quarter a year ago, with the reduction in the average rate paid coming both from an improved deposit mix and lower market rates of interest.

At June 30, 2012, 96% of deposits were core deposits (excluding CDs greater than $250,000 and any brokered deposits).

Wealth management expansion

Total wealth management assets were $23.3 billion at June 30, 2012, up 6% for the quarter and 14% since year-end. Fees earned on wealth management assets, including investment advisory, trust and brokerage fees, were up 25% in the second quarter of 2012 compared to last year’s second quarter.

The Bank offers investment management services for individuals, endowments, businesses and 401(k) plans through First Republic Investment Management. At June 30, 2012, clients had $9.9 billion of assets under management, up 11% for the quarter and 25% since year-end.

Client assets held at First Republic Securities Company and in money market mutual funds were $8.4 billion at June 30, 2012, flat compared to the prior quarter and up 8% since year-end.

The Bank also offers personal trust and custody services through First Republic Trust Company. At June 30, 2012, First Republic Trust Company administered $4.9 billion of trust and custody assets, up 6% for the quarter and 7% since year-end.

Mortgage banking and servicing activity

The Bank sold $436 million of longer-term, fixed-rate home loans during the second quarter of 2012 and recorded net gains of $4.8 million. By comparison, during the second quarter a year ago, the Bank sold $266 million of loans and recorded net gains of $427,000. The higher level of gain on sales was driven primarily by improving secondary market conditions for the Bank’s single family loans.

3 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs