First Republic Bank beat first quarter on strong credit quality and lending (NYSE:FRC)


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Bank of the First Republic (NYSE: FRC) First-quarter results beat Wall Street expectations as credit quality remains strong and loan originations “have been the best ever,” said Mike Roffler, CEO and President.

Loan originations in the first quarter reached a record $17.81 billion, compared to $15.72 billion in the first quarter of 2021, mainly due to the increase in single-family and multi-family loans.

Interest income of $1.18 billion in Q1 increased from $1.02 billion in the same period a year ago, driven by growth in average interest earning assets.

Total wealth management assets of $274.19 billion increased from $218.93 billion a year ago.

Deposits of $162.1 billion in the first quarter compared to $156.32 billion in the first quarter a year ago. Loans totaled $141.3 billion versus $118.08 billion in Q1 2021.

The bank’s Tier 1 leverage ratio was 8.70% at the end of March compared to 8.32% in Q1 2021.

Tangible book value per share in Q1 of $68.47 versus $59.58 in the prior year quarter.

The first quarter efficiency ratio of 62.0% decreased slightly from 63.5% in the first quarter of 2021.

Analyst reaction“Growth is impressive given that the first quarter is FRC’s seasonally weak quarter and should ease concerns about slowing growth in a rising rate environment,” Jefferies analyst Casey Haire wrote in a statement. note to customers on Wednesday.

Conference call at 10:00 a.m. ET.

Earlier, First Republic Bank’s EPS of $2.00 beat the consensus of $1.89.


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