First Republic Bank (NYSE: FRC) stock fell over 0.5% on 14th July, 2021 (as of 13:10:28 UTC-4 · USD ; Source: Google finance) post second quarter of FY 21. Moreover, on a year-over-year basis, total non-performing assets declined 20% to $132.8 million. The provision for loan losses stood at $16.1 million due to loan growth, down 48% from the year-ago quarter. The non-performing assets to total assets ratio was 0.08%, down from the year-ago quarter’s 0.13%. Net loan charge-offs were $1.2 million, up 11% year over year. As of Jun 30, 2021, the company’s Tier 1 leverage ratio was 8.05%, on the back of a contraction of 123 basis points from the prior-year quarter.
Net income available to common shareholders rose 44% year on year to $349.5 million. At quarter end, the Tier 1 leverage ratio was 8.05% and the HQLA was 14.3% of total average assets during the second quarter. Business loans and line commitments, excluding PPP loans, had risen 27% year over year. Capital call outstanding balances were down quarter over quarter, mainly due to a reduction in the utilization rate from 40% to 36%. Total deposits were up 37% from a year ago, on the back of client activity, as well as a very meaningful impact from both fiscal and monetary policy. Further, the net interest margin for the second quarter was 2.68%. The Net Interest Income rose 27.5% year over year to $1 billion, primarily supported by growth in average interest-earning assets. As of Jun 30, 2021, net loans grew 4% sequentially to $122.5 billion, while total deposits were up 5% to $134.6 billion. First Republic’s total wealth management assets were $240.9 billion as of Jun 30, 2021, which reflects a 10% sequential rise. This increase was mainly aided by market appreciation and net client inflow.
FRC in the second quarter of FY 21 has reported the adjusted earnings per share of $1.95, while reported the adjusted revenue growth of 34 percent to $1.2 billion in the second quarter of FY 21. The company expects net interest margin for the full-year 2021 to be in the range of 2.65% to 2.75%.