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
TheStreet Open House

First Republic Bank's CEO Discusses Q2 2012 Results - Earnings Call Transcripts

In addition, some of the financial information discussed on this call includes non-GAAP financial measures. The bank's earnings release, which was issued this morning and is available on the bank's website, presents reconciliations to the appropriate GAAP measures and explains why the bank believes such measures are useful to investors.

And now, I'd like to turn the call over to Jim Herbert.



Jim Herbert

Thank you, Diane, and thanks to everybody for joining our call today. We are very pleased with our second quarter results. Loans, deposits and wealth management assets all grew very strongly. Credit quality remains excellent. Importantly, book value per share has increased 15% from a year ago. We are very pleased to declare an initial quarterly cash dividend of $0.10 per share. This payout rate represents approximately 15% and we would like to operate in a payout range of 15% to 20% over time.

First Republic continues to perform well across all of our businesses in each of our carefully chosen urban coastal markets. Second quarter results highlight the strength of our business model, even under the currently challenging yield conditions facing the banking industry.

Let me quickly summarize our quarterly numbers. Core net income was up 31% year over year. Core earnings per share, excluding all purchase accounting adjustments, were up 22% year over year to $0.50 per share. GAAP EPS was $0.60 per share after a $0.10 per share one-time charge, which was in connection with the redemption of our REIT preferred. Quarterly loan volume totaled $4 billion, our highest ever, and it was 62% higher than the same quarter last year. Loans outstanding increased 7% in the quarter and 10% for the first half of the year.

Deposits rose by 4% during the quarter and 8% for the first half of the year, and total wealth management assets grew by 6% in the quarter and 14% so far this year. Our asset quality remains very strong. Nonperforming assets at quarter end were at a very low 10 basis points of total assets, or 1/10 of 1%.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,071.22 -41.93 -0.24%
S&P 500 1,977.80 -5.05 -0.25%
NASDAQ 4,505.8520 -6.3420 -0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs