First Republic Reports Strong Second Quarter 2017 Results

First Republic Bank (NYSE: FRC) today announced financial results for the quarter ended June 30, 2017.

“First Republic had a very good quarter, driven by strong growth of loans, deposits and wealth management assets,” said Jim Herbert, Chairman and CEO. “Credit quality remains excellent, and the Bank continues to be well-capitalized.”

Quarterly Highlights

Financial Results

– Year-over-year:

– Revenues were $641.3 million, up 19.9%.

– Net interest income was $532.0 million, up 20.5%.

– Net income was $186.6 million, up 13.1%.

– Diluted earnings per share of $1.06, up 9.3%.

– Tangible book value per share was $37.83, up 16.3%.

– Loan originations totaled $7.3 billion, our second best quarter ever.

– Net interest margin was 3.16%, compared to 3.13% for the prior quarter.

– Efficiency ratio was 61.9%.

Continued Capital and Credit Strength

– Total regulatory capital has grown 27.4% from a year ago.

– Common Equity Tier 1 ratio was 10.72%, compared to 10.74% a year ago.

– Nonperforming assets remained very low at 6 basis points of total assets.

– Net charge-offs were less than 1 basis point of average loans.

– Provision for loan losses totaled $23.9 million for the quarter, reflecting strong loan growth.

Continued Franchise Development

– Year-over-year:

– Loans, excluding loans held for sale, totaled $57.8 billion, up 21.3%.

– Deposits were $63.3 billion, up 23.7%.

– Wealth management assets were $95.4 billion, up 25.9%.

– Wealth management revenues were $86.3 million, up 22.2%.

“We’re very pleased with the 20% year-over-year increase in net interest income for the quarter and the 16% increase in tangible book value per share,” said Mike Roffler, Chief Financial Officer. “We continued to successfully access the capital markets and raised both debt and equity on attractive terms during the quarter.”

Quarterly Cash Dividend Declared

The Bank declared a cash dividend for the second quarter of $0.17 per share of common stock, which is payable on August 10, 2017 to shareholders of record as of July 27, 2017.

Very Strong Asset Quality

Credit quality remains very strong. Nonperforming assets were only 6 basis points of total assets at June 30, 2017.

The Bank had net charge-offs for the quarter of only $609,000, while adding $23.9 million to its allowance for loan losses. The provision for loan losses was entirely due to loan growth, including an increase in the utilization rate of business lines of credit to 37% at quarter-end, compared to 29% last quarter-end.

Continued Capital Strength and Access to Capital Markets

Total regulatory capital has grown 27.4% from a year ago.

The Bank’s Common Equity Tier 1 ratio was 10.72% at June 30, 2017, compared to 10.74% a year ago.

During the second quarter, the Bank issued $200.0 million of 5.125% Noncumulative Perpetual Series H Preferred Stock, which qualifies as Tier 1 capital, and redeemed the $150.0 million 6.20% Noncumulative Perpetual Series B Preferred Stock.

During the second quarter, the Bank completed a public offering of $500.0 million of 2.50%, fixed-rate, 5-year term, unsecured senior notes.

Tangible Book Value Growth

Tangible book value per common share at June 30, 2017 was $37.83, up 16.3% from a year ago.

Continued Franchise Development

Strong Loan Originations

Loan originations were $7.3 billion for the quarter, our second best quarter for loan volume. Loan originations were up 12.1% compared to the second quarter a year ago primarily due to increases in single family, construction and business loans.

Loans, excluding loans held for sale, totaled $57.8 billion at June 30, 2017, up 11.1% for the first six months of 2017 and up 21.3% compared to a year ago.

Deposit Growth

Total deposits increased to $63.3 billion, up 8.0% for the first six months of 2017 and up 23.7% compared to a year ago.

At June 30, 2017, checking accounts totaled 63.4% of deposits.

The average rate paid on deposits was 0.18% during the quarter, compared to 0.15% for the prior quarter and 0.13% for the second quarter a year ago.

Investments

Total investment securities at June 30, 2017 were $16.9 billion, up 11.4% for the first six months of 2017 and up 45.6% compared to a year ago.

High-quality liquid assets, including eligible cash, represented 12.8% of average total assets for the second quarter of 2017 and totaled $9.9 billion at June 30, 2017.

Mortgage Banking Activity

During the second quarter, the Bank sold $439.8 million of loans and recorded a gain on sale of $841,000, compared to loan sales of $920.8 million and a gain of $822,000 during the second quarter of last year.

Loans serviced for investors at quarter-end totaled $11.8 billion, up 6.6% from a year ago. Net loan servicing fees for the quarter were $3.6 million, up 1.9% from a year ago.

Continued Expansion of Wealth Management

Wealth management revenues totaled $86.3 million for the quarter, up 22.2% compared to last year’s second quarter. Such revenues represented 13.5% of the Bank’s total revenues for the quarter.

Total wealth management assets were $95.4 billion at June 30, 2017, up 14.2% for the first six months of 2017 and up 25.9% compared to a year ago. The growth in wealth management assets was due to both net new assets from existing and new clients and market appreciation.

Wealth management assets included investment management assets of $47.5 billion, brokerage assets and money market mutual funds of $39.1 billion, and trust and custody assets of $8.8 billion.

Income Statement and Key Ratios

Highlights

Strong Revenue Growth

Total revenues were $641.3 million for the quarter, up 19.9% compared to the second quarter a year ago.

Continued Net Interest Income Growth

Net interest income was $532.0 million for the quarter, up 20.5% compared to the second quarter a year ago. The increase in net interest income resulted primarily from growth in average earning assets.

Net Interest Margin

The Bank’s net interest margin was 3.16% for the second quarter, compared to 3.13% for the prior quarter.

Noninterest Income

Noninterest income was $109.4 million for the quarter, up 17.0% compared to the second quarter a year ago. The increase was primarily from growth in wealth management revenues.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $397.1 million for the quarter, up 24.1% from the second quarter of last year. The efficiency ratio was 61.9% for the quarter, compared to 63.0% for the prior quarter and 59.8% for the second quarter a year ago.

The increase in noninterest expense from the second quarter of last year was primarily due to increased salaries and benefits, information systems and occupancy costs from the continued investments in the expansion of the franchise.

Income Tax Rate

The Bank’s effective tax rate for the second quarter of 2017 was 15.3%, compared to 17.2% for the prior quarter. The decrease in the effective tax rate resulted from increased tax benefits from vesting of share-based awards.

Conference Call Details

First Republic Bank’s second quarter 2017 earnings conference call is scheduled for July 14, 2017 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (855) 224-3902 approximately 10 minutes prior to the start time (to allow time for registration) and use conference ID #39414733. International callers should dial (734) 823-3244 and enter the same conference ID number.

The call will also be broadcast live over the Internet and can be accessed in the Investor Relations section of First Republic’s website at firstrepublic.com. To listen to the live webcast, please visit the site at least 10 minutes prior to the start time to register, download and install any necessary audio software.

For those unable to join the live presentation, a replay of the call will be available beginning July 14, 2017, at 10:30 a.m. PT / 1:30 p.m. ET, through July 21, 2017, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (855) 859-2056 and use conference ID #39414733. International callers should dial (404) 537-3406 and enter the same conference ID number. A replay of the webcast also will be available for 90 days following the call, accessible in the Investor Relations section of First Republic Bank’s website at firstrepublic.com.

The Bank’s press releases are available after release in the Investor Relations section of First Republic Bank’s website at firstrepublic.com.

About First Republic Bank

Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service, with a solid commitment to responsiveness and action. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; and New York, New York. First Republic offers a complete line of banking products for individuals and businesses, including deposit services, as well as residential, commercial and personal loans. For more information, visit firstrepublic.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimates,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases and include statements about economic performance in our markets, growth in our loan originations and wealth management assets, our progress in preparing for, and our compliance with, any enhanced regulatory requirements, and our projected tax rate. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them.

Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: significant competition to attract and retain banking and wealth management customers, from both traditional and nontraditional financial services and technology companies; our ability to recruit and retain key managers, employees and board members; the possibility of earthquakes and other natural disasters affecting the markets in which we operate; interest rate risk and credit risk; our ability to maintain and follow high underwriting standards; economic and market conditions affecting the valuation of our investment securities portfolio, which could result in other-than-temporary impairment if the general economy deteriorates, credit ratings decline, the financial condition of issuers deteriorates, interest rates increase or the liquidity for securities is limited; real estate prices generally and in our markets; our geographic and product concentrations; demand for our products and services; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; the phase-in of the final capital rules regarding the Basel III framework, changes to the definitions and components of regulatory capital and a new approach for risk-weighted assets; legislative and regulatory actions affecting us and the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, including increased compliance costs, limitations on activities and requirements to hold additional capital; our ability to avoid litigation and its associated costs and liabilities; the impact of new accounting standards; future FDIC special assessments or changes to regular assessments; fraud, cybersecurity and privacy risks; and custom technology preferences of our customers and our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications. For a discussion of these and other risks and uncertainties, see First Republic’s FDIC filings, including, but not limited to, the risk factors in First Republic’s Annual Report on Form 10-K. These filings are available in the Investor Relations section of our website.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

CONSOLIDATED STATEMENTS OF INCOME

Quarter Ended
June 30,

Quarter Ended
March 31,

Six Months Ended
June 30,

(in thousands, except per share amounts)20172016201720172016
Interest income:
Loans $ 462,810 $ 383,431 $ 428,398 $ 891,208 $ 751,681
Investments 130,435 91,653 118,058 248,493 177,041
Other 2,784 2,931 3,371 6,155 5,746
Cash and cash equivalents 3,126 1,397 2,668 5,794 4,497
Total interest income 599,155 479,412 552,495 1,151,650 938,965
Interest expense:
Deposits 26,355 16,390 22,051 48,406 32,898
Borrowings 40,836 21,404 30,759 71,595 40,134
Total interest expense 67,191 37,794 52,810 120,001 73,032
Net interest income 531,964 441,618 499,685 1,031,649 865,933
Provision for loan losses 23,938 14,200 9,088 33,026 18,692
Net interest income after provision for loan losses 508,026 427,418 490,597 998,623 847,241
Noninterest income:
Investment management fees 68,819 55,168 60,895 129,714 107,928
Brokerage and investment fees 6,965 7,230 8,039 15,004 15,090
Trust fees 3,448 2,991 3,202 6,650 5,976
Foreign exchange fee income 7,081 5,244 5,861 12,942 10,562
Deposit fees 5,655 5,122 5,372 11,027 10,080
Loan and related fees 3,375 3,498 3,266 6,641 6,738
Loan servicing fees, net 3,577 3,512 2,771 6,348 7,261
Gain on sale of loans 841 822 3,364 4,205 2,225
Gain (loss) on investment securities, net (602 ) (187 ) (1,435 ) (2,037 ) 3,081
Income from investments in life insurance 9,538 9,513 9,635 19,173 18,539
Other income 675 544 489 1,164 1,227
Total noninterest income 109,372 93,457 101,459 210,831 188,707
Noninterest expense:
Salaries and employee benefits 221,929 183,281 221,907 443,836 369,198
Information systems 51,053 36,170 45,770 96,823 71,207
Occupancy 33,631 28,269 33,366 66,997 55,917
Professional fees 12,236 12,105 11,165 23,401 25,476
FDIC assessments 13,601 9,800 13,150 26,751 19,400
Advertising and marketing 11,560 8,257 9,026 20,586 15,447
Amortization of intangibles 5,293 6,386 5,567 10,860 13,047
Other expenses 47,797 35,814 38,588 86,385 69,584
Total noninterest expense 397,100 320,082 378,539 775,639 639,276
Income before provision for income taxes 220,298 200,793 213,517 433,815 396,672
Provision for income taxes 33,698 35,796 36,743 70,441 74,180
Net income 186,600 164,997 176,774 363,374 322,492
Dividends on preferred stock 14,344 17,376 15,152 29,496 33,836
Net income available to common shareholders $ 172,256 $ 147,621 $ 161,622 $ 333,878 $ 288,656
Basic earnings per common share $ 1.10 $ 1.00 $ 1.04 $ 2.14 $ 1.97
Diluted earnings per common share $ 1.06 $ 0.97 $ 1.01 $ 2.07 $ 1.90
Dividends per common share $ 0.17 $ 0.16 $ 0.16 $ 0.33 $ 0.31
Weighted average shares—basic 157,302 147,208 155,012 156,163 146,586
Weighted average shares—diluted 162,335 152,602 160,433 161,390 152,152

CONSOLIDATED BALANCE SHEETS

As of
($ in thousands)

June 30,
2017

March 31,
2017

June 30,
2016

ASSETS

Cash and cash equivalents $ 2,295,125 $ 2,756,385 $ 1,564,057
Investment securities available-for-sale 2,235,923 2,037,657 1,482,765
Investment securities held-to-maturity 14,642,402 13,934,204 10,110,596
Loans:
Single family (1-4 units) 29,078,735 27,418,458 24,125,707
Home equity lines of credit 2,681,502 2,641,384 2,598,858
Multifamily (5+ units) 7,453,388 6,952,664 6,019,689
Commercial real estate 5,809,698 5,652,065 5,010,932
Single family construction 523,478 502,070 448,333
Multifamily/commercial construction 987,712 945,201 786,350
Business 7,981,609 6,897,282 6,382,154
Stock secured 994,413 907,576 781,780
Other secured 837,423 758,058 619,774
Unsecured 1,412,117 1,257,442 834,029
Total loans 57,760,075 53,932,200 47,607,606
Allowance for loan losses (338,307 ) (314,978 ) (278,731 )
Loans, net 57,421,768 53,617,222 47,328,875
Loans held for sale 202,348 178,226 438,911
Investments in life insurance 1,292,238 1,282,659 1,238,646
Tax credit investments 1,113,378 1,134,172 1,058,761
Prepaid expenses and other assets 1,146,712 955,055 971,236
Premises, equipment and leasehold improvements, net 260,308 236,774 181,647
Goodwill 203,177 203,177 171,616
Other intangible assets 101,539 106,832 124,354
Mortgage servicing rights 61,383 61,988 57,203
Other real estate owned 1,930 1,196
Total Assets $ 80,978,231 $ 76,504,351 $ 64,729,863
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Noninterest-bearing checking $ 25,769,912 $ 23,622,962 $ 19,586,815
Interest-bearing checking 14,374,273 14,731,109 12,866,658
Money market checking 9,019,626 8,769,899 6,511,313
Money market savings and passbooks 8,099,880 8,527,125 7,701,456
Certificates of deposit 6,030,015 5,556,153 4,495,001
Total Deposits 63,293,706 61,207,248 51,161,243
Short-term borrowings 150,000 100,000 950,000
Long-term FHLB advances 7,550,000 5,900,000 5,050,000
Senior notes 893,865 398,157 397,555
Subordinated notes 776,895 776,803
Debt related to variable interest entities 22,519 25,326 27,199
Other liabilities 1,031,163 1,008,072 837,653
Total Liabilities 73,718,148 69,415,606 58,423,650
Shareholders’ Equity:
Preferred stock 990,000 940,000 1,139,525
Common stock 1,577 1,571 1,497
Additional paid-in capital 3,525,283 3,547,447 2,959,168
Retained earnings 2,741,041 2,595,978 2,192,313
Accumulated other comprehensive income 2,182 3,749 13,710
Total Shareholders’ Equity 7,260,083 7,088,745 6,306,213
Total Liabilities and Shareholders’ Equity $ 80,978,231 $ 76,504,351 $ 64,729,863
Quarter Ended June 30,Quarter Ended March 31,
201720162017

Average Balances, Yields
and Rates

Average
Balance

Interest
Income/
Expense (1)

Yields/
Rates (2)

Average
Balance

Interest
Income/
Expense (1)

Yields/
Rates (2)

Average
Balance

Interest
Income/
Expense (1)

Yields/
Rates (2)

($ in thousands)
Assets:
Cash and cash equivalents $ 1,321,995 $ 3,126 0.95 % $ 1,214,206 $ 1,397 0.46 % $ 1,448,729 $ 2,668 0.75 %
Investment securities 16,522,412 171,954 4.17 % 11,680,140 122,641 4.20 % 15,433,958 155,405 4.03 %
Loans 55,752,697 474,401 3.39 % 46,845,931 394,297 3.35 % 53,090,033 439,654 3.32 %
FHLB stock 221,393 2,784 5.04 % 162,320 2,931 7.26 % 161,310 3,371 8.48 %

Total interest-earning assets

73,818,497 652,265 3.52 % 59,902,597 521,266 3.47 % 70,134,030 601,098 3.43 %
Noninterest-earning cash 333,651 273,438 307,359

Goodwill and other intangibles

307,275 299,036 312,628
Other assets 3,258,671 2,965,106 3,168,192

Total noninterest-earning assets

3,899,597 3,537,580 3,788,179

Total Assets

$ 77,718,094 $ 63,440,177 $ 73,922,209
Liabilities and Equity:
Checking $ 38,014,639 $ 1,435 0.02 % $ 31,969,559 $ 579 0.01 % $ 37,351,531 $ 1,126 0.01 %

Money market checking and savings

16,336,980 7,130 0.18 % 13,687,722 2,749 0.08 % 16,299,170 4,989 0.12 %
CDs 5,774,830 17,790 1.24 % 4,423,240 13,062 1.19 % 5,346,421 15,936 1.21 %
Total deposits 60,126,449 26,355 0.18 % 50,080,521 16,390 0.13 % 58,997,122 22,051 0.15 %
Short-term borrowings 1,433,516 3,698 1.03 % 1,621,978 1,949 0.48 % 121,945 519 1.72 %
Long-term FHLB advances 6,541,209 24,439 1.50 % 4,225,824 16,746 1.59 % 5,786,111 20,615 1.44 %
Senior notes (3) 534,418 3,469 2.60 % 397,458 2,573 2.59 % 398,058 2,577 2.59 %
Subordinated notes (3) 776,850 9,093 4.68 % % 590,688 6,915 4.68 %
Other borrowings 25,147 137 2.20 % 28,788 136 1.88 % 25,876 133 2.05 %
Total borrowings 9,311,140 40,836 1.76 % 6,274,048 21,404 1.37 % 6,922,678 30,759 1.79 %

Total interest-bearing liabilities

69,437,589 67,191 0.39 % 56,354,569 37,794 0.27 % 65,919,800 52,810 0.32 %
Noninterest-bearing liabilities 1,036,242 932,418 1,040,994
Preferred equity 966,374 1,139,525 1,004,291
Common equity 6,277,889 5,013,665 5,957,124

Total Liabilities and Equity

$ 77,718,094 $ 63,440,177 $ 73,922,209

Net interest spread (4)

3.13 % 3.20 % 3.11 %

Net interest income (fully taxable-equivalent basis) and net interest margin (5)

$ 585,074 3.16 % $ 483,472 3.21 % $ 548,288 3.13 %

Reconciliation of tax-equivalent net interest income to reported net interest income:

Tax-equivalent adjustment

(53,110 ) (41,854 ) (48,603 )

Net interest income, as reported

$ 531,964 $ 441,618 $ 499,685

(1)

Interest income is presented on a fully taxable-equivalent basis.

(2)

Yields/rates are annualized.

(3)

Average balances include unamortized issuance discounts and costs. Interest expense includes amortization of issuance discounts and costs.

(4)

Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities.

(5)

Net interest margin represents net interest income on a fully taxable-equivalent basis divided by total average interest-earning assets.

Six Months Ended June 30,
20172016

Average Balances, Yields and Rates

Average Balance

Interest
Income/
Expense (1)

Yields/
Rates (2)

Average Balance

Interest
Income/
Expense (1)

Yields/
Rates (2)

($ in thousands)
Assets:
Cash and cash equivalents $ 1,385,012 $ 5,794 0.84 % $ 1,858,535 $ 4,497 0.49 %
Investment securities 15,981,192 327,359 4.10 % 11,120,721 236,710 4.26 %
Loans 54,428,721 914,055 3.35 % 45,731,980 773,300 3.36 %
FHLB stock 191,517 6,155 6.48 % 147,380 5,746 7.84 %

Total interest-earning assets

71,986,442 1,253,363 3.48 % 58,858,616 1,020,253 3.45 %
Noninterest-earning cash 320,576 271,311
Goodwill and other intangibles 309,937 302,312
Other assets 3,213,682 2,956,579
Total noninterest-earning assets 3,844,195 3,530,202
Total Assets $ 75,830,637 $ 62,388,818
Liabilities and Equity:
Checking $ 37,684,917 2,561 0.01 % $ 31,876,177 1,112 0.01 %
Money market checking and savings 16,318,179 12,119 0.15 % 13,608,463 5,071 0.07 %
CDs 5,561,809 33,726 1.22 % 4,483,314 26,715 1.20 %
Total deposits 59,564,905 48,406 0.16 % 49,967,954 32,898 0.13 %
Short-term borrowings 781,353 4,217 1.09 % 863,736 2,329 0.54 %
Long-term FHLB advances 6,165,746 45,054 1.47 % 4,041,484 32,390 1.61 %
Senior notes (3) 466,615 6,046 2.59 % 397,359 5,145 2.59 %
Subordinated notes (3) 684,284 16,008 4.68 % %
Other borrowings 25,509 270 2.12 % 29,031 270 1.86 %
Total borrowings 8,123,507 71,595 1.77 % 5,331,610 40,134 1.51 %
Total interest-bearing liabilities 67,688,412 120,001 0.36 % 55,299,564 73,032 0.27 %
Noninterest-bearing liabilities 1,038,605 1,058,373
Preferred equity 985,228 1,106,558
Common equity 6,118,392 4,924,323
Total Liabilities and Equity $ 75,830,637 $ 62,388,818
Net interest spread (4) 3.12 % 3.18 %

Net interest income (fully taxable-equivalent basis) and net interest margin (5)

$ 1,133,362 3.14 % $ 947,221 3.20 %

Reconciliation of tax-equivalent net interest income to reported net interest income:

Tax-equivalent adjustment (101,713 ) (81,288 )

Net interest income, as reported

$ 1,031,649 $ 865,933

(1)

Interest income is presented on a fully taxable-equivalent basis.

(2)

Yields/rates are annualized.

(3)

Average balances include unamortized issuance discounts and costs. Interest expense includes amortization of issuance discounts and costs.

(4)

Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities.

(5)

Net interest margin represents net interest income on a fully taxable-equivalent basis divided by total average interest-earning assets.

Quarter Ended
June 30,

Quarter Ended
March 31,
Six Months Ended
June 30,
Operating Information20172016201720172016
($ in thousands)

Net income to average assets (1)

0.96 % 1.05 % 0.97 % 0.97 % 1.04 %

Net income available to common shareholders to average common equity (1)

11.01 % 11.84 % 11.00 % 11.00 % 11.79 %
Dividend payout ratio 16.0 % 16.5 % 15.9 % 16.0 % 16.3 %
Efficiency ratio (2) 61.9 % 59.8 % 63.0 % 62.4 % 60.6 %
Net loan charge-offs $ 609 $ 1,048 $ 508 $ 1,117 $ 1,019

Net loan charge-offs to average total loans (1)

0.00 % 0.01 % 0.00 % 0.00 % 0.00 %

________________________________________________

(1)

Ratios are annualized.

(2)

Efficiency ratio is the ratio of noninterest expense to the sum of net interest income and noninterest income.

Quarter Ended
June 30,
Quarter Ended
March 31,
Six Months Ended
June 30,
Mortgage Loan Sales20172016201720172016
($ in thousands)
Loans sold:
Flow sales:
Agency $ 34,261 $ 55,729 $ 49,732 $ 83,993 $ 115,957
Non-agency 72,829 46,114 56,202 129,031 97,689
Total flow sales 107,090 101,843 105,934 213,024 213,646
Bulk sales:
Non-agency 332,735 818,920 539,821 872,556 1,184,819
Total loans sold $ 439,825 $ 920,763 $ 645,755 $ 1,085,580 $ 1,398,465
Gain on sale of loans:
Amount $ 841 $ 822 $ 3,364 $ 4,205 $ 2,225
Gain as a percentage of loans sold 0.19 % 0.09 % 0.52 % 0.39 % 0.16 %
As of
Loan Servicing PortfolioJune 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
June 30,
2016
($ in millions)
Loans serviced for investors $ 11,791 $ 11,838 $ 11,655 $ 11,494 $ 11,061
Quarter Ended
June 30,
Quarter Ended
March 31,
Six Months Ended
June 30,
Loan Originations20172016201720172016
($ in thousands)
Single family (1-4 units) $ 3,053,014 $ 2,933,128 $ 2,516,674 $ 5,569,688 $ 4,745,945
Home equity lines of credit 424,223 482,546 414,323 838,546 908,278
Multifamily (5+ units) 646,538 603,016 408,946 1,055,484 1,233,032
Commercial real estate 336,054 355,339 395,569 731,623 596,384
Construction 496,813 252,020 238,801 735,614 451,386
Business 1,654,184 1,248,255 952,428 2,606,612 1,905,461
Stock and other secured 450,674 368,242 483,522 934,196 866,213
Unsecured 236,884 266,480 230,874 467,758 603,974
Total loans originated $ 7,298,384 $ 6,509,026 $ 5,641,137 $ 12,939,521 $ 11,310,673
As of
Asset Quality InformationJune 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
June 30,
2016
($ in thousands)
Nonperforming assets:
Nonaccrual loans $ 43,384 $ 51,694 $ 49,020 $ 52,759 $ 57,953
Other real estate owned 1,930 1,196 1,196
Total nonperforming assets $ 45,314 $ 51,694 $ 49,020 $ 53,955 $ 59,149
Nonperforming assets to total assets 0.06 % 0.07 % 0.07 % 0.08 % 0.09 %
Accruing loans 90 days or more past due $ $ $ $ 3,083 $ 451
Restructured accruing loans $ 13,001 $ 14,224 $ 14,278 $ 13,968 $ 11,822
As of
Book Value RatiosJune 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
June 30,
2016
(in thousands, except per share amounts)
Number of shares of common stock outstanding 157,686 157,122 154,292 150,109 149,722
Book value per common share $ 39.76 $ 39.13 $ 37.39 $ 35.34 $ 34.51
Tangible book value per common share $ 37.83 $ 37.16 $ 35.35 $ 33.41 $ 32.53
As of
20172016
June 30 (1)March 31December 31September 30June 30
Capital RatiosActualFully
Phased-in (2)
Actual

Tier 1 leverage ratio (Tier 1 capital to average assets)

8.99 % 8.97 % 9.22 % 9.37 % 9.26 % 9.58 %

Common Equity Tier 1 capital to risk-weighted assets

10.72 % 10.63 % 11.15 % 10.83 % 10.52 % 10.74 %

Tier 1 capital to risk-weighted assets

12.49 % 12.39 % 12.94 % 13.07 % 12.88 % 13.23 %

Total capital to risk-weighted assets

14.51 % 14.41 % 15.04 % 14.46 % 14.33 % 13.86 %
Regulatory Capital (3)
($ in thousands)
Common Equity Tier 1 capital $ 5,975,457 $ 5,949,749 $ 5,852,885 $ 5,496,582 $ 5,046,133 $ 4,916,224
Tier 1 capital $ 6,960,057 $ 6,939,749 $ 6,788,885 $ 6,631,383 $ 6,180,343 $ 6,055,749
Total capital $ 8,087,714 $ 8,067,406 $ 7,892,528 $ 7,337,725 $ 6,875,478 $ 6,346,692
Assets (3)
($ in thousands)
Average assets $ 77,419,255 $ 77,398,947 $ 73,624,461 $ 70,779,188 $ 66,758,108 $ 63,191,099
Risk-weighted assets $ 55,730,798 $ 55,988,677 $ 52,476,984 $ 50,744,017 $ 47,969,927 $ 45,785,355

(1)

Ratios and amounts as of June 30, 2017 are preliminary.

(2)

Certain adjustments required under the Basel III Capital Rules will be phased in through the end of 2018. The ratios and amounts shown in this column are calculated assuming a fully phased-in basis of all such adjustments as if they were effective as of June 30, 2017.

(3)

As defined by regulatory capital rules.

As of
Wealth Management AssetsJune 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
June 30,
2016
($ in millions)
First Republic Investment Management $ 47,530 $ 44,573 $ 41,154 $ 40,103 $ 38,288
Brokerage and investment:
Brokerage 37,658 35,397 32,218 31,058 28,644
Money market mutual funds 1,402 1,795 2,048 1,902 1,610
Total brokerage and investment 39,060 37,192 34,266 32,960 30,254
Trust Company:
Trust 4,276 3,929 3,754 3,171 3,434
Custody 4,559 4,438 4,406 3,954 3,835
Total Trust Company 8,835 8,367 8,160 7,125 7,269

Total Wealth Management Assets

$ 95,425 $ 90,132 $ 83,580 $ 80,188 $ 75,811

Contacts:

Investors:
Addo Investor Relations
Andrew Greenebaum, 310-829-5400
agreenebaum@addoir.com
Lasse Glassen, 310-829-5400
lglassen@addoir.com
or
Media:
Blue Marlin Partners
Greg Berardi, 415-239-7826
greg@bluemarlinpartners.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.