First Republic Bank (NYSE: FRC) stock lost over 5% today (as of 1:20PM EDT on October 13th, 2017; Source: Google finance) as their third quarter of 2017 results failed to meet expectations. The group missed their bottom line expectations.
Despite this, First Republic Bank delivered a decent third quarter of 2017 performance, Revenues surged 20.1% yoy to $670.3 million while Net interest income enhanced 19.6% to $551.0 million during the period. Diluted earnings per share rose 14% yoy to $1.14 while Tangible book value per share increased 16.45 yoy to $38.90.
First Republic Bank Loan originations performance is the best ever which reached $7.2 billion, while Loans sold reached $822.4 million. The group’s Loans held for sale reached $716.0 million, against $202.3 million as at prior quarter-end. FNC Net interest margin fell to 3.09%, from 3.16% in the earlier quarter.
Overall regulatory capital for First Republic Bank surged 20.1% against prior corresponding period while Common Equity Tier 1 ratio rose to 10.58%, from 10.52% in pcp. Nonperforming assets continued to be low at 4 basis points of the overall assets.
Meanwhile, the group’s Loans, rose 19.3% yoy to $59.5 billion while their Deposits surged 18.8% yoy to $65.4 billion. The group continued to enhance their Wealth management assets, which rose 26.4% yoy to $101.3 billion. First Republic Bank Wealth management revenues rose 22.9% yoy to $88.4 million. Overall First Republic Bank wealth management assets surged 26.4% yoy to $101.3 billion as at September 30, 2017, driven by net new assets from current and new clients as well as market appreciation. Wealth management assets included investment management assets of $50.3 billion, brokerage assets and money market mutual funds of $41.9 billion, and trust and custody assets of $9.2 billion.
Overall investment securities for First Republic Bank as at the September 30, 2017 rose to $17.5 billion while High-quality liquid assets, including eligible cash, reached $10.6 billion as at September 30, 2017, which is 13.0% of average total assets.
First Republic Bank has a target price of $101.43, which is an upside of 4.6% (As per seven analysts consensus ratings at tipranks.com)