First Republic Reports Strong First Quarter 2019 Results

Year-Over-Year Net Interest Income Increased 15% and Wealth Management Assets Increased 24%

SAN FRANCISCO--(BUSINESS WIRE)--First Republic Bank (NYSE: FRC) today announced financial results for the quarter ended March 31, 2019.

“Loans, deposits and wealth management assets have all grown nicely compared to a year ago,” said Jim Herbert, Chairman, CEO & Founder. “We are delivering exceptional, differentiated client service, which is reflected in continued strong household acquisition across the franchise.”

Quarterly Highlights

Financial Results

– Year-over-year:

– Revenues were $807.4 million, up 12.0%.

– Net interest income was $675.0 million, up 14.8%.

– Net income was $226.6 million, up 13.8%.

– Diluted earnings per share of $1.26, up 11.5%.

– Tangible book value per share was $46.81, up 12.9%.

– Loan originations totaled $6.7 billion.

– Net interest margin was 2.97%, compared to 2.98% for the prior quarter.

– Efficiency ratio was 65.0%.

Continued Capital and Credit Strength

– Common Equity Tier 1 ratio was 10.54%, compared to 10.47% a year ago.

– Increased quarterly dividend to $0.19 per share in April 2019.

– Nonperforming assets remained very low at 5 basis points of total assets.

– Net charge-offs were only $127,000, or less than 1 basis point of average loans.

Continued Franchise Development

– Year-over-year:

– Loans, excluding loans held for sale, totaled $77.3 billion, up 18.5%.

– Deposits were $81.6 billion, up 14.5%.

– Wealth management assets were $139.9 billion, up 23.8%.

– Wealth management revenues were $107.2 million, up 7.7%.

“We are pleased to have exceeded $100 billion in total bank assets through organic growth driven by exceptional client service,” said Mike Roffler, Chief Financial Officer. “Credit quality and capital strength remain excellent.”

Increased Quarterly Cash Dividend to $0.19 per Share

The Bank announced an increase in its quarterly cash dividend to $0.19 per share of common stock. This first quarter dividend is payable on May 9, 2019 to shareholders of record as of April 25, 2019.

Very Strong Asset Quality

Credit quality remains very strong. Nonperforming assets were only 5 basis points of total assets at March 31, 2019.

The Bank had net charge-offs for the quarter of $127,000, while adding $14.2 million to its allowance for loan losses.

Continued Capital Strength and Access to Capital Markets

The Bank’s Common Equity Tier 1 ratio was 10.54% at March 31, 2019, compared to 10.47% a year ago.

During the first quarter, the Bank issued 2,000,000 shares of common stock in an “at-the-market” offering, which added $170.6 million to common equity.

Tangible Book Value Growth

Tangible book value per common share at March 31, 2019 was $46.81, up 12.9% from a year ago.

Continued Franchise Development

Loan Originations

Loan originations were $6.7 billion for the quarter, compared to $7.3 billion for the same quarter a year ago.

Loans, excluding loans held for sale, totaled $77.3 billion at March 31, 2019, up 18.5% compared to a year ago primarily due to increases in single family, multifamily and business loans.

Deposit Growth

Total deposits increased to $81.6 billion, up 14.5% compared to a year ago.

At March 31, 2019, checking accounts totaled 59.2% of deposits.

Investments

Total investment securities at March 31, 2019 were $16.1 billion, a 2.7% decrease compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $15.3 billion at March 31, 2019, and represented 15.5% of average total assets.

Mortgage Banking Activity

During the first quarter, the Bank sold $180.6 million of loans and recorded a gain on sale of $359,000, compared to loan sales of $161.4 million and a gain of $689,000 during the first quarter of last year.

Loans serviced for investors at quarter-end totaled $11.3 billion, down 7.1% from a year ago.

Continued Expansion of Wealth Management

Wealth management revenues totaled $107.2 million for the quarter, up 7.7% compared to last year’s first quarter. Such revenues represented 13.3% of the Bank’s total revenues for the quarter.

Total wealth management assets were $139.9 billion at March 31, 2019, up 10.8% for the quarter and up 23.8% compared to a year ago. The increases in wealth management assets both for the quarter and year were driven by market appreciation and net new assets from existing and new clients.

Wealth management assets included investment management assets of $66.7 billion, brokerage assets and money market mutual funds of $62.2 billion, and trust and custody assets of $11.0 billion.

Income Statement and Key Ratios

Strong Revenue Growth

Total revenues were $807.4 million for the quarter, up 12.0% compared to the first quarter a year ago.

Strong Net Interest Income Growth

Net interest income was $675.0 million for the quarter, up 14.8% compared to the first quarter a year ago. The increase in net interest income resulted primarily from growth in average earning assets.

Net Interest Margin

The net interest margin was 2.97% for the first quarter, compared to 2.98% for the prior quarter.

Noninterest Income

Noninterest income was $132.3 million for the quarter, slightly down compared to the first quarter a year ago. The first quarter of 2018 included a $10.7 million gain on sale of investment securities as part of a portfolio repositioning.

Noninterest Expense

Noninterest expense was $524.8 million for the quarter, up 13.7% compared to the first quarter a year ago. The increase was primarily due to increased salaries and benefits, information systems and other expenses from the continued investments in the expansion of the franchise, partially offset by a decrease in FDIC assessments due to the elimination of an FDIC surcharge.

Efficiency Ratio

The efficiency ratio was 65.0% for the quarter, compared to 64.0% for the first quarter a year ago. The efficiency ratio remained very stable compared to last year. Excluding the $10.7 million gain on sale of investment securities as part of a portfolio repositioning, the efficiency ratio would have been 65.0% in the first quarter of 2018.

Income Taxes

The Bank’s effective tax rate for the first quarter of 2019 was 15.6%, compared to 19.4% for the prior quarter, and 19.2% for the first quarter a year ago. The decreases were primarily the result of higher tax benefits from an increase in stock option exercises by employees.

Conference Call Details

First Republic Bank’s first quarter 2019 earnings conference call is scheduled for April 12, 2019 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial [phone] approximately 10 minutes prior to the start time (to allow time for registration). International callers should dial [phone].

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 April 12, 2019, at 10:00 a.m. PT / 1:00 p.m. ET, through April 19, 2019, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial [phone] and use conference ID #13689082. International callers should dial [phone] and enter the same conference ID number. A replay of the webcast also will be available for 90 days following, 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 and offers a complete line of products, including residential, commercial and personal loans, deposit services, and wealth management. 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; New York, New York; and Jackson, Wyoming. First Republic is a constituent of the S&P 500 Index and KBW Nasdaq Bank Index. 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 (the “Exchange Act”). 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. 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 non-traditional financial services and technology companies; our ability to recruit and retain key managers, employees and board members; the possibility of earthquakes, fires 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, including those 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; developments and uncertainty related to the future use and availability of reference rates, such as the London Interbank Offered Rate and the 11th District Monthly Weighted Average Cost of Funds Index; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; the impact of tax reform legislation; any future changes to regulatory capital requirements; legislative and regulatory actions affecting us and the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), including increased compliance costs, limitations on activities and requirements to hold additional capital, as well as changes to the Dodd-Frank Act pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act; our ability to avoid litigation and its associated costs and liabilities; the impact of new accounting standards; future Federal Deposit Insurance Corporation (“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 and any subsequent reports filed by First Republic with the FDIC. 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. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout our public filings under the Exchange Act. 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 March 31,					Quarter Ended December 31,
(in thousands, except per share amounts)	2019			2018		2018
Interest income:
Loans	$	700,088		$	541,313	$	677,450
Investments	133,765			138,270		134,380
Other	5,175			4,978		10,122
Cash and cash equivalents	7,989			3,913		6,703
Total interest income	847,017			688,474		828,655
Interest expense:
Deposits	107,747			50,387		96,188
Borrowings	64,232			50,329		65,264
Total interest expense	171,979			100,716		161,452
Net interest income	675,038			587,758		667,203
Provision for loan losses	14,200			13,000		25,089
Net interest income after provision for loan losses	660,838			574,758		642,114
Noninterest income:
Investment management fees	84,924			78,117		91,937
Brokerage and investment fees	7,659			8,858		8,097
Insurance fees	2,114			1,674		5,444
Trust fees	3,889			3,489		3,939
Foreign exchange fee income	8,631			7,397		10,223
Deposit fees	6,320			5,985		6,484
Loan and related fees	4,007			3,617		3,871
Loan servicing fees, net	3,788			3,519		3,446
Gain on sale of loans	359			689		579
Gain (loss) on investment securities, net	(149		)	9,197		(1,313		)
Income from investments in life insurance	9,335			9,477		9,973
Other income	1,441			1,083		867
Total noninterest income	132,318			133,102		143,547
Noninterest expense:
Salaries and employee benefits	313,253			277,024		281,021
Information systems	67,170			58,964		63,999
Occupancy	43,895			36,172		40,078
Professional fees	11,681			13,414		15,338
Advertising and marketing	15,734			11,928		19,888
FDIC assessments	8,903			15,532		8,847
Other expenses	64,176			48,547		69,411
Total noninterest expense	524,812			461,581		498,582
Income before provision for income taxes	268,344			246,279		287,079
Provision for income taxes	41,753			47,196		55,661
Net income	226,591			199,083		231,418
Dividends on preferred stock	12,787			12,222		16,228
Net income available to common shareholders	$	213,804		$	186,861	$	215,190
Basic earnings per common share	$	1.28		$	1.16	$	1.31
Diluted earnings per common share	$	1.26		$	1.13	$	1.29
Weighted average shares—basic	167,112			161,752		164,804
Weighted average shares—diluted	169,410			164,839		167,100

CONSOLIDATED BALANCE SHEETS
	As of
($ in thousands)	March 31, 2019			December 31, 2018			March 31, 2018
ASSETS
Cash and cash equivalents	$	3,693,396		$	2,811,159		$	3,839,931
Debt securities available-for-sale	1,624,970			1,779,116			2,256,295
Debt securities held-to-maturity	14,442,876			14,436,973			14,264,992
Equity securities (fair value)	19,386			18,719			19,734
Loans:
Single family (1-4 units)	39,134,534			37,955,252			32,211,100
Home equity lines of credit	2,502,837			2,542,713			2,575,234
Multifamily (5+ units)	10,814,000			10,357,839			9,152,736
Commercial real estate	6,802,788			6,677,440			6,173,825
Single family construction	690,370			645,924			621,847
Multifamily/commercial construction	1,507,082			1,576,582			1,256,370
Business	10,616,044			10,998,503			8,991,752
Stock secured	1,375,454			1,432,911			1,207,646
Other secured	1,135,170			1,105,751			954,317
Unsecured	2,686,818			2,572,367			2,047,107
Total loans	77,265,097			75,865,282			65,191,934
Allowance for loan losses	(453,121		)	(439,048		)	(378,778		)
Loans, net	76,811,976			75,426,234			64,813,156
Loans held for sale	9,878			98,985			686,393
Investments in life insurance	1,404,083			1,376,579			1,340,170
Tax credit investments	1,040,924			1,057,541			1,088,602
Prepaid expenses and other assets	2,136,675			1,538,971			1,265,806
Premises, equipment and leasehold improvements, net	339,745			332,483			299,587
Goodwill and other intangible assets	270,594			273,974			285,749
Mortgage servicing rights	52,725			54,470			63,093
Total Assets	$	101,847,228		$	99,205,204		$	90,223,508
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Noninterest-bearing checking	$	31,362,112		$	30,033,658		$	27,496,642
Interest-bearing checking	16,912,529			17,089,520			16,809,785
Money market checking	10,559,521			10,317,436			9,088,019
Money market savings and passbooks	9,858,736			10,245,107			8,865,304
Certificates of deposit	12,919,219			11,377,515			8,995,322
Total Deposits	81,612,117			79,063,236			71,255,072
Short-term borrowings	—			100,000			—
Long-term FHLB advances	8,000,000			8,700,000			8,500,000
Senior notes	896,866			896,432			895,147
Subordinated notes	777,576			777,475			777,180
Other liabilities	1,514,685			990,284			959,571
Total Liabilities	92,801,244			90,527,427			82,386,970
Shareholders’ Equity:
Preferred stock	940,000			940,000			840,000
Common stock	1,674			1,649			1,619
Additional paid-in capital	4,203,473			4,024,306			3,797,419
Retained earnings	3,914,294			3,731,205			3,211,804
Accumulated other comprehensive loss	(13,457		)	(19,383		)	(14,304		)
Total Shareholders’ Equity	9,045,984			8,677,777			7,836,538
Total Liabilities and Shareholders’ Equity	$	101,847,228		$	99,205,204		$	90,223,508

	Quarter Ended March 31,														Quarter Ended December 31,
	2019							2018							2018
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	$	1,445,058	$	7,989		2.24	%	$	1,126,806	$	3,913		1.41	%	$	1,275,293	$	6,702		2.09	%
Investment securities:
U.S. Treasury and other U.S. Government agency securities	—		—			—	%	19,039		87			1.83	%	—		—			—	%
U.S. Government-sponsored agency securities	1,044,894		7,776			2.98	%	1,156,385		8,441			2.92	%	1,044,914		7,772			2.98	%
Mortgage-backed securities:
Agency residential and commercial MBS	6,854,838		49,620			2.90	%	7,610,480		50,109			2.63	%	7,098,381		50,849			2.87	%
Other residential and commercial MBS	4,528		46			4.03	%	6,074		147			9.65	%	4,611		44			3.78	%
Municipal securities	8,180,654		94,501			4.62	%	8,387,964		99,545			4.75	%	8,087,947		94,909			4.69	%
Other investment securities^(3)	18,989		120			2.52	%	19,986		117			2.35	%	18,955		120			2.54	%
Total investment securities	16,103,903		152,063			3.78	%	17,199,928		158,446			3.68	%	16,254,808		153,694			3.78	%
Loans:
Residential real estate	40,973,253		341,784			3.34	%	34,735,775		265,529			3.06	%	39,587,922		325,318			3.28	%
Multifamily	10,596,540		100,656			3.80	%	8,851,676		78,688			3.56	%	10,243,384		97,696			3.73	%
Commercial real estate	6,739,792		72,481			4.30	%	6,144,557		62,512			4.07	%	6,612,822		70,319			4.16	%
Construction	2,179,144		26,755			4.91	%	1,776,131		20,625			4.65	%	2,145,727		26,464			4.83	%
Business ^(3)	10,678,134		121,044			4.53	%	8,588,533		89,513			4.17	%	10,694,770		121,711			4.45	%
Other	5,088,348		43,946			3.45	%	3,966,253		30,743			3.10	%	4,943,880		42,791			3.39	%
Total loans	76,255,211		706,666			3.71	%	64,062,925		547,610			3.42	%	74,228,505		684,299			3.64	%
FHLB stock ^(4)	278,805		5,175			7.53	%	280,962		4,978			7.19	%	293,331		10,122			13.69	%
Total interest-earning assets	94,082,977		871,893			3.71	%	82,670,621		714,947			3.46	%	92,051,937		854,817			3.68	%
Noninterest-earning cash	345,237							347,567							344,749
Goodwill and other intangibles	272,371							287,948							275,645
Other assets	4,196,071							3,440,748							3,572,767
Total noninterest-earning assets	4,813,679							4,076,263							4,193,161
Total Assets	$	98,896,656						$	86,746,884						$	96,245,098
Liabilities and Equity:
Deposits:
Checking	$	46,516,109	6,094			0.05	%	$	42,440,377	5,509			0.05	%	$	45,218,239	5,720			0.05	%
Money market checking and savings	19,268,808		42,317			0.89	%	17,132,181		18,138			0.43	%	18,960,266		37,051			0.78	%
CDs	11,384,085		59,336			2.11	%	7,641,580		26,740			1.42	%	10,720,940		53,417			1.98	%
Total deposits	77,169,002		107,747			0.57	%	67,214,138		50,387			0.30	%	74,899,445		96,188			0.51	%
Borrowings:
Short-term borrowings	956,670		6,030			2.56	%	685,000		2,510			1.49	%	650,543		3,868			2.36	%
Long-term FHLB advances	8,503,889		43,167			2.06	%	8,354,444		32,800			1.59	%	9,201,630		46,365			2.00	%
Senior notes^(5)	896,654		5,934			2.65	%	894,940		5,923			2.65	%	896,223		5,931			2.65	%
Subordinated notes ^(5)	777,526		9,101			4.68	%	777,133		9,096			4.68	%	777,427		9,099			4.68	%
Total borrowings	11,134,739		64,232			2.33	%	10,711,517		50,329			1.90	%	11,525,823		65,263			2.25	%
Total interest-bearing liabilities	88,303,741		171,979			0.79	%	77,925,655		100,716			0.52	%	86,425,268		161,451			0.74	%
Noninterest-bearing liabilities	1,564,278							980,290							982,269
Preferred equity	940,000							841,667							1,129,130
Common equity	8,088,637							6,999,272							7,708,431
Total Liabilities and Equity	$	98,896,656						$	86,746,884						$	96,245,098
Net interest spread ^(6)						2.92	%						2.94	%						2.94	%
Net interest income (fully taxable-equivalent basis) and net interest margin^(7)			$	699,914		2.97	%			$	614,231		2.97	%			$	693,366		2.98	%
Reconciliation of tax-equivalent net interest income to reported net interest income:
Tax-equivalent adjustment			(24,876		)					(26,473		)					(26,163		)
Net interest income, as reported			$	675,038						$	587,758						$	667,203

__________
^(1)	Interest income is presented on a fully taxable-equivalent basis.
^(2)	Yields/rates are annualized.
^(3)	Includes mutual funds and marketable equity securities.
^(4)	Yield for the quarter ended December 31, 2018 includes an FHLB special dividend of $4.8 million.
^(5)	Average balances include unamortized issuance discounts and costs. Interest expense includes amortization of issuance discounts and costs.
^(6)	Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
^(7)	Net interest margin represents net interest income on a fully taxable-equivalent basis divided by total average interest-earning assets.

	Quarter Ended March 31,						Quarter Ended December 31,
Operating Information	2019			2018			2018
($ in thousands, except per share amounts)
Net income to average assets ^(1)	0.93		%	0.93		%	0.95		%
Net income available to common shareholders to average common equity ^(1)	10.72		%	10.83		%	11.08		%
Net income available to common shareholders to average tangible common equity ^(1)	11.09		%	11.29		%	11.49		%
Dividends per common share	$	0.18		$	0.17		$	0.18
Dividend payout ratio	14.3		%	15.0		%	14.0		%
Efficiency ratio ^(2)	65.0		%	64.0		%	61.5		%
Net loan charge-offs	$	127		$	154		$	1,866
Net loan charge-offs to average total loans ^(1)	0.00		%	0.00		%	0.01		%
Allowance for loan losses to:
Total loans	0.59		%	0.58		%	0.58		%
Nonaccrual loans	887.1		%	774.7		%	944.9		%
__________

^(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 March 31,				Quarter Ended December 31,
Effective Tax Rate	2019		2018		2018
Effective tax rate, prior to excess tax benefits	21.9	%	21.1	%	20.7	%
Excess tax benefits—stock options	(6.2	)%	(1.8	)%	(1.2	)%
Excess tax benefits—other stock awards	(0.1	)%	(0.1	)%	(0.1	)%
Total excess tax benefits	(6.3	)%	(1.9	)%	(1.3	)%
Effective tax rate	15.6	%	19.2	%	19.4	%

	Quarter Ended March 31,						Quarter Ended December 31,
Mortgage Loan Sales	2019			2018			2018
($ in thousands)
Loans sold:
Flow sales:
Agency	$	11,679		$	14,047		$	4,945
Non-agency	16,831			55,655			6,785
Total flow sales	28,510			69,702			11,730
Bulk sales:
Non-agency	152,119			91,709			—
Securitizations	—			—			251,931
Total loans sold	$	180,629		$	161,411		$	263,661
Gain on sale of loans:
Amount	$	359		$	689		$	579
Gain as a percentage of loans sold	0.20		%	0.43		%	0.22		%

	Quarter Ended March 31,				Quarter Ended December 31,
Loan Originations	2019		2018		2018
($ in thousands)
Single family (1-4 units)	$	2,189,895	$	2,326,712	$	2,709,197
Home equity lines of credit	352,138		346,333		380,710
Multifamily (5+ units)	585,453		761,584		856,577
Commercial real estate	248,828		275,683		355,137
Construction	249,572		464,806		471,904
Business	2,282,212		2,057,454		2,871,533
Stock and other secured	473,462		666,546		365,374
Unsecured	334,308		428,342		348,235
Total loans originated	$	6,715,868	$	7,327,460	$	8,358,667

	As of
Loan Servicing Portfolio	March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
($ in millions)
Loans serviced for investors	$	11,326	$	11,573	$	11,733	$	12,374	$	12,192

	As of
Asset Quality Information	March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
($ in thousands)
Nonperforming assets:
Nonaccrual loans	$	51,081		$	46,465		$	42,578		$	50,920		$	48,895
Other real estate owned	—			—			—			—			—
Total nonperforming assets	$	51,081		$	46,465		$	42,578		$	50,920		$	48,895
Nonperforming assets to total assets	0.05		%	0.05		%	0.04		%	0.05		%	0.05		%
Accruing loans 90 days or more past due	$	—		$	—		$	—		$	—		$	—
Restructured accruing loans	$	10,208		$	11,514		$	11,830		$	11,568		$	11,853

	As of
Book Value and Capital Ratios	March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
(in thousands, except per share amounts)
Number of shares of common stock outstanding	167,393		164,902		164,761		162,638		161,863
Book value per common share	$	48.42	$	46.92	$	45.68	$	43.88	$	43.23
Tangible book value per common share	$	46.81	$	45.26	$	44.00	$	42.15	$	41.46

	As of
Capital Ratios	March 31, 2019 ^(1)			December 31, 2018			September 30, 2018			June 30, 2018			March 31, 2018
Tier 1 leverage ratio (Tier 1 capital to average assets)	8.84		%	8.68		%	8.94		%	8.83		%	8.64		%
Common Equity Tier 1 capital to risk-weighted assets	10.54		%	10.38		%	10.47		%	10.18		%	10.47		%
Tier 1 capital to risk-weighted assets	11.82		%	11.70		%	12.14		%	11.90		%	11.80		%
Total capital to risk-weighted assets	13.50		%	13.43		%	13.90		%	13.68		%	13.65		%
Regulatory Capital ^(2)
($ in thousands)
Common Equity Tier 1 capital	$	7,776,620		$	7,379,997		$	7,158,043		$	6,766,573		$	6,624,101
Tier 1 capital	$	8,716,620		$	8,319,997		$	8,298,043		$	7,906,573		$	7,464,101
Total capital	$	9,960,317		$	9,549,738		$	9,505,044		$	9,095,028		$	8,633,859
Assets ^(2)
($ in thousands)
Average assets	$	98,582,697		$	95,905,266		$	92,771,143		$	89,560,555		$	86,378,664
Risk-weighted assets	$	73,753,991		$	71,116,459		$	68,370,630		$	66,461,529		$	63,239,135
__________

^(1)	Ratios and amounts as of March 31, 2019 are preliminary.
^(2)	As defined by regulatory capital rules.

	As of
Wealth Management Assets	March 31, 2019		December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
($ in millions)
First Republic Investment Management	$	66,675	$	60,591	$	62,506	$	59,329	$	55,104
Brokerage and investment:
Brokerage	59,391		53,046		54,823		50,356		46,150
Money market mutual funds	2,818		2,358		3,149		1,575		2,104
Total brokerage and investment	62,209		55,404		57,972		51,931		48,254
Trust Company:
Trust	5,955		5,350		5,406		5,125		4,694
Custody	5,060		4,868		5,105		4,739		4,938
Total Trust Company	11,015		10,218		10,511		9,864		9,632
Total Wealth Management Assets	$	139,899	$	126,213	$	130,989	$	121,124	$	112,990