First Republic Home Lending Jumps From Year Earlier

April 14–Like it's peers, First Republic Bank had a quarter-over-quarter drop in mortgage production. But its year-over-year gain outpaced all of its competitors.

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Income before the provision for income taxes worked out to $214 million during the period that started on Jan. 1, 2017, and finished on March 31.

The results, in addition to other financial and operational metrics, were presented in the San Francisco-based company's first-quarter 2017 earnings report.

While earnings slipped from $229 million in the three months earlier, income ascended from $196 million in the same three-month period last year.

During the three months ended March 31, 2017, residential loan originations totaled $2.931 billion. Business declined from $3.517 billion in the final-three months of last year but was up from $2.239 billion in the first-three months of last year.

Among seven home lenders that have so far reported first-quarter 2017 mortgage originations, JPMorgan Chase & Co. was the only other firm to report a year-over-year increase — though just 5 percent versus First Republic's 31 percent..

The financial institution's first-quarter 2017 residential production consisted of $2.517 billion in single-family lending and $0.414 billion in home-equity lines of credit.

First Republic additionally originated $1.043 billion in commercial real estate loans during the most-recent period, less than $1.670 billion in the fourth-quarter 2016 and $1.070 billion in the first-quarter 2016.

The latest three-month period included $0.409 billion in multifamily originations, $0.396 billion in commercial mortgage production and $0.239 billion in construction lending.

The origination of all loan types was $5.6 billion, the “strongest first quarter ever.”

First Republic serviced $11.838 billion in loans for investors. The third-party servicing portfolio increased from $11.655 billion as of Dec. 31, 2016, and $10.654 billion as of the same date in 2016.

Residential assets grew to $30.060 billion as of the end of last month from an upwardly revised $28.902 billion as of year-end 2016 and an upwardly revised $26.118 billion as of March 31, 2016.

The latest residential holdings consisted of $27.418 billion in single-family loans and $2.641 billion in HELOCs.

CRE loans on the balance sheet amounted to $14.052 billion as of the end of the first-quarter 2017. CRE holdings expanded from a downwardly revised $13.556 billion the prior period and a downwardly revised $11.546 billion a year prior.

Last month's CRE assets were comprised of $6.953 billion in multifamily loans, $5.652 billion in commercial mortgages, $0.502 billion in single-family residential construction loans and $0.945 billion in multifamily construction loans.

Media and investor contacts from First Republic weren't immediately able to clarify why the prior-period asset amounts were revised from the original reports.

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