First Republic Bank (NYSE:FRC) stock rose 2.91% (As on July 15, 10:57:19 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 22. Credit quality remains very strong. Nonperforming assets were at a very low 7 basis points of total assets at June 30, 2022. The Bank had modest net loan charge-offs of only $1.3 million for the quarter. During the second quarter, the Bank recorded a provision for credit losses of $31 million, which was primarily driven by loan growth. Book value per common share at June 30, 2022 was $71.03, up 12.8% from a year ago. Tangible book value per common share at June 30, 2022 was $69.81, up 13.1% from a year ago.

Moreover, loan originations were $22.0 billion for the quarter, our best quarter ever. This was up 31.1% from the same quarter a year ago, primarily due to increases in single family and multifamily lending. Single family loan originations were 48% of the total loan origination volume for the quarter and had a weighted average loan-to-value ratio of 61%. In addition, multifamily and commercial real estate loans originated were 14% of total originations and had a weighted average loan-to-value ratio of 52%. Loans totaled $151.5 billion at June 30, 2022, up 23.1% compared to a year ago. The loan growth was primarily due to increases in single family, multifamily, stock secured and capital call lines of credit, partially offset by a decrease in loans under the Small Business Administration’s Paycheck Protection Program (“PPP”). Total investment securities at June 30, 2022 were $31.2 billion, a 2.9% increase compared to the prior quarter and a 36.1% increase compared to a year ago. Total deposits increased to $165.6 billion, up 23.0% compared to a year ago.

FRC in the second quarter of FY 22 has reported the adjusted earnings per share of $2.16, beating the analysts’ estimates for the adjusted earnings per share of $2.05, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 22.6 percent to $1.51 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $1.46 billion.

Additionally, the company declared a cash dividend for the second quarter of $0.27 per share of common stock, which is payable on August 11, 2022 to shareholders of record as of July 28, 2022.

FRC currently expects to be in the top half of the net interest margin range of 2.65% to 2.75% for the full year 2022.