First Republic Bank Posts Higher Profit In Q3 - Update

(RTTNews) - First Republic Bank (FRC) Tuesday reported an increase in third-quarter profit, reflecting higher revenues and lower loan loss provisions. The bank also boosted its quarterly cash dividend.

In the third quarter, net income available to shareholders rose to $101.59 million or $0.75 per share from $97.03 million or $0.72 per share in the previous year. On an adjusted basis, earnings for the recent quarter were $0.64 per share, while the company posted $0.54 per share a year earlier.

On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $0.76 for the quarter. Analysts' estimates typically exclude special items.

Total revenues grew 5.6 percent to $361.8 million from $342.7 million in the prior year. Core revenues were $331.2 million, an increase of 12 percent from a year ago. Analysts expected the company to report third-quarter revenue of $320.72 million.

Net interest income increased to $308.21 million from $298.82 million a year earlier. Total non-interest income was $53.63 million, up from $43.84 million last year.

Net interest margin decreased to 3.50 percent from 4.13 percent a year ago.

Jim Herbert, chairman and chief executive officer of the company said, "Year-over-year, core net interest income was up 10% and core diluted EPS were up 19%. We're quite pleased with our deposit and loan growth, and our asset quality remains excellent."

Total wealth management assets increased 5.2 percent to $38.2 billion, and wealth management fees earned for the quarter totaled $33.8 million, up 68.4 percent compared to the third quarter last year.

Provision for loan losses declined to $10.02 million from $16.51 million in the preceding year.

The bank also declared a quarterly cash dividend of $0.12 per share, up from $0.10 paid last year, to shareholders of record on November 1, 2013, payable on November 15.

FRC closed Monday's regular trading at $47.68 on the NYSE.