First Republic Bank Q3 Profit Up 20%

(RTTNews) - First Republic Bank (FRC) on Thursday reported a 20 percent increase in profit for the third quarter from last year, reflecting higher revenues and a gain on sales of investments from portfolio repositioning.

Jim Herbert, Chairman and CEO of First Republic Bank said, "We are very pleased with the third quarter. Core EPS, even after excluding a one-time gain on the sales of investment securities, were our second highest ever. Loan volume during the quarter was quite strong and asset quality remained excellent."

For the third quarter, net income available to common shareholders of the San Francisco, California-based company was $122.12 million or $0.86 per share, up from $101.36 million or $0.74 per share in the same period last year.

On an adjusted basis, earnings per share for the quarter were $0.81, compared to $0.63 in the prior-year quarter. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

The latest quarter's results benefited from a gain on sale of investments from portfolio repositioning of $23.6 million or $0.10 per share.

Total revenues for the quarter rose 22 percent to $440.66 million from $361.84 million in the year-ago period. Core revenues were $423.18 million, up 20.5 percent from last year. Analysts had a consensus revenue estimate of $434.91 million for the quarter.

Net interest income rose 9 percent from the year-ago period to $336.0 million. Core net interest income increased 15 percent from last year to $320.2 million.

Non-interest income surged 95 percent from the prior-year period to $104.67 million. Non-interest income, excluding a gain on sale of investment securities, increased 50 percent over the year-ago period to $81.1 million.

Total non-interest expense increased 24 percent from last year to $238.384 million. Provision for loan losses increased 34 percent to $13.52 million from $10.02 million in the prior-year quarter.

The bank's Tier 1 leverage ratio was 9.51 percent at the end of the quarter, compared to 9.73 percent at the end of the preceding quarter.

The company declared a quarterly cash dividend for the third quarter of $0.14 per share, payable on November 13 to shareholders of record as of October 30, 2014.

FRC is currently trading at $46.21, down $0.15 or 0.32 percent on a volume of 1.16 million shares.