Earnings Reports To Watch: First Republic Bank (NYSE:FRC)

First Republic Bank (NYSE:FRC) reported earnings for the three months ended Mar2016 on April 14, 2016. The company earned $0.88 per share on revenue of $559M. Analysts had been modeling earning per share of $0.8 with $542.35M in revenue.

First Republic Bank (FRC) on April 14, 2016 announced financial results for the quarter ended March 31, 2016.

“We’re quite pleased with first quarter results,” said Jim Herbert, Chairman and CEO.  “Earnings, loans, deposits and wealth management assets all grew nicely.  Credit quality and capital levels remain very strong.”

Quarterly Highlights

Financial Results

• Compared to last year’s first quarter:


• Revenues were $519.6 million, up 22.8%.


• Net income was $148.9 million, up 28.4%.


• Diluted earnings per share (“EPS”) of $0.88, up 23.9%.


• Loan originations totaled $4.8 billion, our highest first quarter ever.


• Loans sold totaled $477.7 million.


• Core net interest margin was 3.14%, compared to 3.02% for the prior quarter. (2)


• Efficiency ratio was 61.4%.

Continued Financial and Credit Strength

• Tier 1 leverage ratio was 9.38%.


• Common Equity Tier 1 ratio was 10.61%.


• Tangible book value per share was $31.05, up 11.0% from a year ago.


• Nonperforming assets were low at 10 basis points of total assets.


• Credit quality remains very strong, with net recoveries of $29,000 for the quarter.

Franchise Development

• Loans outstanding, excluding loans held for sale, totaled $45.4 billion, up 16.2% from a year ago.


• Deposits were $50.9 billion, up 27.5% from a year ago.


• Checking balances represented 64.0% of total deposits.


• Wealth management assets were $73.4 billion, up 30.3% from a year ago.


• Wealth management revenues were $68.9 million, up 31.4% from a year ago.

“Revenues grew 23% from a year ago and were driven by strong performance across all lines of business,” said Chief Financial Officer Mike Roffler.  “Net interest margin improved and our efficiency ratio remains stable.”

First Republic Bank earnings per share showed an increasing trend of 3.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 433%.Analysts project EPS growth over the next 5 years at 13%. It has EPS annual growth over the past 5 fiscal years of 8.3% when sales grew 9.5. It reported 16.4% sales growth, and 17.7% EPS growth in the last quarter.

The stock is trading at $72.41, up 28.86% from 52-week low of $56.32. The stock trades down -0.89% from its peak of $73.22 and 2.93% above the consensus price target of $74.53. Its volume clocked up at 1.07 million shares which is higher than the average volume of 0.81 million shares. Its market capitalization currently stands at $10.62B.