SAN FRANCISCO (AP) — First Republic Bank said Wednesday that its fourth-quarter net income rose 14 percent, as the bank made more money off its loans and investments and recorded a hefty gain on the sale of loans.
Its results topped Wall Street estimates and its shares briefly traded at a new high.
The San Francisco-based bank earned $103.6 million, or 77 cents per share, up from $90.7 million, or 68 cents per share, in the same quarter last year.
Analysts, on average, expected a profit of 73 cents per share, according to FactSet.
Net interest income rose 6 percent to $302.3 million, as interest on its loans rose 2 percent to $294.8 million. Net interest income combines interest on loans that the bank collects and interest on deposits and debt that the bank pays out. It is a measure of the bank's ability to profit from its lending.
Meanwhile, noninterest income, which includes revenue from fees and other sources, jumped 89 percent to $55.6 million, helped by a $17.7 million gain on the sale of loans and a 37 percent jump in investment advisory fees to $16.3 million.