SAN FRANCISCO--(BUSINESS WIRE)--First Republic Bank (NYSE: FRC) today announced financial results for the quarter and year ended December 31, 2019.
“2019 was another very strong year across the board,” said Founder, Chairman and CEO Jim Herbert. “Loans, deposits and wealth management assets all grew nicely. Our results continue to reflect the strength of our unique, client-focused service model.”
Full Year Highlights
Financial Results
– Revenues were $3.3 billion, up 9.7%.
– Net interest income was $2.8 billion, up 10.5%.
– Net income was $930.3 million, up 9.0%.
– Diluted earnings per share of $5.20, up 8.1%.
– Loan originations totaled $38.0 billion, our best year ever.
– Tangible book value per share was $50.24, up 11.0%.
– Efficiency ratio was 64.2%, compared to 63.0% last year.
Continued Capital and Credit Strength
– Tier 1 leverage ratio was 8.39%, compared to 8.68% a year ago.
– Nonperforming assets remained at a low 12 basis points of total assets.
– Net charge-offs were only $4.6 million, or less than 1 basis point of average loans.
Continued Franchise Development
– Loans, excluding loans held for sale, totaled $90.8 billion, up 19.7%.
– Deposits were $90.1 billion, up 14.0%.
– Wealth management assets were $151.0 billion, up 19.7%.
– Wealth management revenues were $470.7 million, up 8.5%.
Quarterly Highlights
– Compared to last year’s fourth quarter:
– Revenues were $877.5 million, up 8.2%.
– Net interest income was $720.1 million, up 7.9%.
– Net income was $246.3 million, up 6.4%.
– Diluted EPS of $1.39, up 7.8%.
– Loan originations were $11.2 billion, our best quarter ever.
– Net recoveries were $1.1 million.
– Net interest margin was 2.73%, compared to 2.80% for the prior quarter.
– Efficiency ratio was 63.7%, compared to 63.8% for the prior quarter.
– Wealth management assets were $151.0 billion, up 7.7% from the prior quarter.
“We’re pleased with revenue growth of 9.7% and net interest income growth of 10.5% for the year, despite a very challenging interest rate environment in 2019,” said Chief Financial Officer Mike Roffler. “Capital and credit quality remain excellent.”
Quarterly Cash Dividend Declared
The Bank declared a cash dividend for the fourth quarter of $0.19 per share of common stock, which is payable on February 13, 2020 to shareholders of record as of January 30, 2020.
Very Strong Asset Quality
Credit quality remains strong. Nonperforming assets were only 12 basis points of total assets at December 31, 2019.
The Bank had net recoveries for the quarter of $1.1 million, while adding $9.6 million to its allowance for loan losses due to continued loan growth. During the full year, the Bank had net charge-offs of only $4.6 million, while adding $61.7 million to its allowance for loan losses.
Continued Capital Strength
The Bank’s Tier 1 leverage ratio was 8.39% at December 31, 2019, compared to 8.68% a year ago.
During the fourth quarter, the Bank redeemed all of the outstanding shares of its 5.50% Noncumulative Perpetual Series D Preferred Stock, which totaled $190.0 million. In addition, the Bank issued $395.0 million of 4.70% Noncumulative Perpetual Series J Preferred Stock, which qualifies as Tier 1 capital.
Tangible Book Value Growth
Tangible book value per common share at December 31, 2019 was $50.24, up 11.0% from a year ago.
Continued Franchise Development
Loan Originations
Loan originations were $11.2 billion for the quarter, up 42.5% compared to the same quarter a year ago. For 2019, loan originations totaled $38.0 billion, up 20.7% compared to the prior year. The increase for the quarter was primarily due to increases in single family, stock and other secured, and multifamily lending. The increase for the year was primarily due to increases in single family, stock and other secured, and commercial real estate lending.
Loans, excluding loans held for sale, totaled $90.8 billion at December 31, 2019, up 19.7% compared to a year ago, primarily due to increases in single family, multifamily, commercial real estate and business loans.
Deposit Growth
Total deposits increased to $90.1 billion, up 14.0% compared to a year ago.
At December 31, 2019, checking accounts totaled 58.6% of deposits.
Investments
Total investment securities at December 31, 2019 were $18.4 billion, up 5.9% compared to the prior quarter and up 13.6% compared to a year ago.
High-quality liquid assets, including eligible cash, totaled $14.5 billion at December 31, 2019, and represented 12.7% of average total assets.
Wealth Management
Wealth management revenues totaled $128.4 million for the quarter, up 7.3% compared to last year’s fourth quarter. For all of 2019, wealth management revenues were $470.7 million, an increase of 8.5% compared to the prior year. Such revenues represented 14.6% of the Bank’s total revenues for the quarter and 14.1% of the Bank’s total revenues for the year.
Total wealth management assets were $151.0 billion at December 31, 2019, up 7.7% for the quarter and up 19.7% compared to a year ago. The increases in wealth management assets were driven by market appreciation and net new assets from existing and new clients.
Wealth management assets included investment management assets of $66.0 billion, brokerage assets and money market mutual funds of $73.1 billion, and trust and custody assets of $11.9 billion.
Income Statement and Key Ratios
Revenue Growth
Total revenues were $877.5 million for the quarter, up 8.2% compared to the fourth quarter a year ago and were $3.3 billion for 2019, up 9.7% compared to the prior year.
Net Interest Income Growth
Net interest income was $720.1 million for the quarter, up 7.9% compared to the fourth quarter a year ago, and was $2.8 billion for 2019, up 10.5% compared to the prior year. The increases in net interest income resulted primarily from growth in average earning assets.
Net Interest Margin
The net interest margin was 2.73% for the fourth quarter, compared to 2.80% for the prior quarter. For 2019, the net interest margin was 2.83%, compared to 2.96% for the prior year. The decrease for the quarter was primarily due to a greater decline in the average yield on loans, compared to a modest decrease in total funding costs. The decrease for the year was primarily due to an increase in total funding costs, partially offset by an increase in the average yield on loans.
Noninterest Income
Noninterest income was $157.3 million for the quarter, up 9.6% compared to the fourth quarter a year ago, and was $577.2 million for 2019, up 6.2% compared to the prior year. The increases were primarily from growth in wealth management fees and income from investments in life insurance.
Noninterest Expense and Efficiency Ratio
Noninterest expense was $558.8 million for the quarter, up 12.1% compared to the fourth quarter a year ago, and was $2.1 billion for 2019, up 12.0% compared to the prior year. The increases were primarily due to increased salaries and benefits, occupancy and information systems expenses from the continued investments in the expansion of the franchise.
The efficiency ratio was 63.7% for the quarter, compared to 61.5% for the fourth quarter a year ago. For 2019, the efficiency ratio was 64.2%, compared to 63.0% for 2018.
Income Taxes
The Bank’s effective tax rate for the fourth quarter of 2019 was 20.3%, compared to 19.4% for the fourth quarter a year ago.
The effective tax rate for 2019 was 17.9%, compared to 18.8% for 2018. The decrease for the year was primarily the result of higher excess tax benefits from an increase in stock options exercised by employees.
Conference Call Details
First Republic Bank’s fourth quarter and full year 2019 earnings conference call is scheduled for January 14, 2020 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (800) 353-6461 and use confirmation code 7083625# approximately 10 minutes prior to the start time (to allow time for registration). International callers should dial +1 (334) 323-0501 and enter the same confirmation code.
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 January 14, 2020, at 11:00 a.m. PT / 2:00 p.m. ET, through January 21, 2020, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (888) 203-1112 and use confirmation code 7083625#. International callers should dial +1 (719) 457-0820 and enter the same confirmation code. 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.
Forward-looking statements involving such risks and uncertainties include, but are not limited to, statements regarding: projections of loans, assets, deposits, liabilities, revenues, expenses, tax liabilities, net income, capital expenditures, liquidity, dividends, capital structure, investments or other financial items; expectations regarding the banking and wealth management industries; descriptions of plans or objectives of management for future operations, products or services; forecasts of future economic conditions generally and in our market areas in particular, which may affect the ability of borrowers to repay their loans and the value of real property or other property held as collateral for such loans; our opportunities for growth and our plans for expansion (including opening new offices); expectations about the performance of any new offices; projections about the amount and the value of intangible assets, as well as amortization of recorded amounts; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; projections about future levels of loan originations or loan repayments; projections regarding costs, including the impact on our efficiency ratio; and descriptions of assumptions underlying or relating to any of the foregoing.
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 and credit losses on our loans and debt securities; 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; 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 |
|
Quarter Ended |
|
Year Ended |
||||||||||||||
December 31, |
|
September 30, |
|
December 31, |
||||||||||||||||
(in thousands, except per share amounts) |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
Interest income: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans |
|
$ |
780,326 |
|
|
$ |
677,450 |
|
|
$ |
764,468 |
|
|
$ |
2,986,210 |
|
|
$ |
2,442,469 |
|
Investments |
|
146,080 |
|
|
134,380 |
|
|
134,099 |
|
|
547,988 |
|
|
540,753 |
|
|||||
Other |
|
5,679 |
|
|
10,122 |
|
|
5,779 |
|
|
21,446 |
|
|
25,187 |
|
|||||
Cash and cash equivalents |
|
4,869 |
|
|
6,703 |
|
|
5,430 |
|
|
23,835 |
|
|
23,197 |
|
|||||
Total interest income |
|
936,954 |
|
|
828,655 |
|
|
909,776 |
|
|
3,579,479 |
|
|
3,031,606 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
128,705 |
|
|
96,188 |
|
|
134,917 |
|
|
500,557 |
|
|
290,040 |
|
|||||
Borrowings |
|
88,131 |
|
|
65,264 |
|
|
79,874 |
|
|
314,755 |
|
|
240,458 |
|
|||||
Total interest expense |
|
216,836 |
|
|
161,452 |
|
|
214,791 |
|
|
815,312 |
|
|
530,498 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
720,118 |
|
|
667,203 |
|
|
694,985 |
|
|
2,764,167 |
|
|
2,501,108 |
|
|||||
Provision for loan losses |
|
9,579 |
|
|
25,089 |
|
|
16,711 |
|
|
61,690 |
|
|
76,092 |
|
|||||
Net interest income after provision for loan losses |
|
710,539 |
|
|
642,114 |
|
|
678,274 |
|
|
2,702,477 |
|
|
2,425,016 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment management fees |
|
97,106 |
|
|
91,937 |
|
|
83,582 |
|
|
359,332 |
|
|
341,539 |
|
|||||
Brokerage and investment fees |
|
12,416 |
|
|
8,097 |
|
|
12,673 |
|
|
41,035 |
|
|
31,867 |
|
|||||
Insurance fees |
|
4,186 |
|
|
5,444 |
|
|
2,712 |
|
|
12,708 |
|
|
10,090 |
|
|||||
Trust fees |
|
4,328 |
|
|
3,939 |
|
|
4,105 |
|
|
16,549 |
|
|
14,633 |
|
|||||
Foreign exchange fee income |
|
10,365 |
|
|
10,223 |
|
|
11,685 |
|
|
41,026 |
|
|
35,606 |
|
|||||
Deposit fees |
|
6,609 |
|
|
6,484 |
|
|
6,563 |
|
|
26,071 |
|
|
24,974 |
|
|||||
Loan and related fees |
|
6,175 |
|
|
3,871 |
|
|
5,341 |
|
|
19,819 |
|
|
15,713 |
|
|||||
Loan servicing fees, net |
|
1,788 |
|
|
3,446 |
|
|
2,347 |
|
|
11,348 |
|
|
13,302 |
|
|||||
Gain on sale of loans |
|
69 |
|
|
579 |
|
|
122 |
|
|
535 |
|
|
5,616 |
|
|||||
Gain (loss) on investment securities |
|
(1,541 |
) |
|
(1,313 |
) |
|
(683 |
) |
|
(3,436 |
) |
|
5,202 |
|
|||||
Income from investments in life insurance |
|
14,034 |
|
|
9,973 |
|
|
12,152 |
|
|
45,570 |
|
|
40,670 |
|
|||||
Other income |
|
1,810 |
|
|
867 |
|
|
1,608 |
|
|
6,663 |
|
|
4,233 |
|
|||||
Total noninterest income |
|
157,345 |
|
|
143,547 |
|
|
142,207 |
|
|
577,220 |
|
|
543,445 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
325,094 |
|
|
281,021 |
|
|
309,655 |
|
|
1,245,526 |
|
|
1,109,228 |
|
|||||
Information systems |
|
69,278 |
|
|
63,999 |
|
|
66,612 |
|
|
273,337 |
|
|
241,752 |
|
|||||
Occupancy |
|
50,474 |
|
|
40,078 |
|
|
50,722 |
|
|
192,678 |
|
|
152,258 |
|
|||||
Professional fees |
|
22,476 |
|
|
15,338 |
|
|
17,507 |
|
|
68,099 |
|
|
60,058 |
|
|||||
Advertising and marketing |
|
17,615 |
|
|
19,888 |
|
|
15,912 |
|
|
65,961 |
|
|
60,463 |
|
|||||
FDIC assessments |
|
10,912 |
|
|
8,847 |
|
|
9,748 |
|
|
38,759 |
|
|
58,122 |
|
|||||
Other expenses |
|
62,996 |
|
|
69,411 |
|
|
63,794 |
|
|
262,101 |
|
|
234,838 |
|
|||||
Total noninterest expense |
|
558,845 |
|
|
498,582 |
|
|
533,950 |
|
|
2,146,461 |
|
|
1,916,719 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before provision for income taxes |
|
309,039 |
|
|
287,079 |
|
|
286,531 |
|
|
1,133,236 |
|
|
1,051,742 |
|
|||||
Provision for income taxes |
|
62,709 |
|
|
55,661 |
|
|
51,687 |
|
|
202,907 |
|
|
197,914 |
|
|||||
Net income |
|
246,330 |
|
|
231,418 |
|
|
234,844 |
|
|
930,329 |
|
|
853,828 |
|
|||||
Dividends on preferred stock |
|
10,708 |
|
|
16,228 |
|
|
12,787 |
|
|
49,070 |
|
|
57,725 |
|
|||||
Net income available to common shareholders |
|
$ |
235,622 |
|
|
$ |
215,190 |
|
|
$ |
222,057 |
|
|
$ |
881,259 |
|
|
$ |
796,103 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share |
|
$ |
1.40 |
|
|
$ |
1.31 |
|
|
$ |
1.32 |
|
|
$ |
5.25 |
|
|
$ |
4.89 |
|
Diluted earnings per common share |
|
$ |
1.39 |
|
|
$ |
1.29 |
|
|
$ |
1.31 |
|
|
$ |
5.20 |
|
|
$ |
4.81 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares—basic |
|
168,544 |
|
|
164,804 |
|
|
168,272 |
|
|
167,908 |
|
|
162,948 |
|
|||||
Weighted average shares—diluted |
|
169,776 |
|
|
167,100 |
|
|
169,346 |
|
|
169,551 |
|
|
165,612 |
|
|||||
CONSOLIDATED BALANCE SHEETS |
||||||||||||
|
|
As of |
||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
||||||
($ in thousands) |
|
2019 |
|
2019 |
|
2018 |
||||||
ASSETS |
|
|
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
1,699,557 |
|
|
$ |
2,181,600 |
|
|
$ |
2,811,159 |
|
Debt securities available-for-sale |
|
1,282,169 |
|
|
1,401,105 |
|
|
1,779,116 |
|
|||
Debt securities held-to-maturity |
|
17,147,633 |
|
|
16,002,722 |
|
|
14,436,973 |
|
|||
Equity securities (fair value) |
|
19,586 |
|
|
19,736 |
|
|
18,719 |
|
|||
|
|
|
|
|
|
|
||||||
Loans: |
|
|
|
|
|
|
||||||
Single family (1-4 units) |
|
47,985,651 |
|
|
44,882,363 |
|
|
37,955,252 |
|
|||
Home equity lines of credit |
|
2,501,432 |
|
|
2,530,740 |
|
|
2,542,713 |
|
|||
Multifamily (5+ units) |
|
12,428,452 |
|
|
11,725,331 |
|
|
10,357,839 |
|
|||
Commercial real estate |
|
7,537,085 |
|
|
7,504,334 |
|
|
6,677,440 |
|
|||
Single family construction |
|
761,589 |
|
|
743,699 |
|
|
645,924 |
|
|||
Multifamily/commercial construction |
|
1,532,834 |
|
|
1,442,896 |
|
|
1,576,582 |
|
|||
Business |
|
11,646,816 |
|
|
11,564,863 |
|
|
10,998,503 |
|
|||
Stock secured |
|
1,897,511 |
|
|
1,610,914 |
|
|
1,432,911 |
|
|||
Other secured |
|
1,433,399 |
|
|
1,293,084 |
|
|
1,105,751 |
|
|||
Unsecured |
|
3,072,062 |
|
|
3,006,586 |
|
|
2,572,367 |
|
|||
Total loans |
|
90,796,831 |
|
|
86,304,810 |
|
|
75,865,282 |
|
|||
Allowance for loan losses |
|
(496,104 |
) |
|
(485,465 |
) |
|
(439,048 |
) |
|||
Loans, net |
|
90,300,727 |
|
|
85,819,345 |
|
|
75,426,234 |
|
|||
|
|
|
|
|
|
|
||||||
Loans held for sale |
|
23,304 |
|
|
31,693 |
|
|
98,985 |
|
|||
Investments in life insurance |
|
1,434,642 |
|
|
1,425,057 |
|
|
1,376,579 |
|
|||
Tax credit investments |
|
1,100,509 |
|
|
1,039,061 |
|
|
1,057,541 |
|
|||
Premises, equipment and leasehold improvements, net |
|
386,841 |
|
|
373,693 |
|
|
332,483 |
|
|||
Goodwill and other intangible assets |
|
235,269 |
|
|
264,658 |
|
|
273,974 |
|
|||
Other assets |
|
2,633,397 |
|
|
2,470,065 |
|
|
1,593,441 |
|
|||
Total Assets |
|
$ |
116,263,634 |
|
|
$ |
111,028,735 |
|
|
$ |
99,205,204 |
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
||||||
Noninterest-bearing checking |
|
$ |
33,124,265 |
|
|
$ |
32,720,317 |
|
|
$ |
30,033,658 |
|
Interest-bearing checking |
|
19,696,859 |
|
|
17,438,402 |
|
|
17,089,520 |
|
|||
Money market checking |
|
12,790,707 |
|
|
11,242,205 |
|
|
10,317,436 |
|
|||
Money market savings and passbooks |
|
10,586,355 |
|
|
10,277,249 |
|
|
10,245,107 |
|
|||
Certificates of deposit |
|
13,935,060 |
|
|
14,042,346 |
|
|
11,377,515 |
|
|||
Total Deposits |
|
90,133,246 |
|
|
85,720,519 |
|
|
79,063,236 |
|
|||
|
|
|
|
|
|
|
||||||
Short-term borrowings |
|
800,000 |
|
|
775,000 |
|
|
100,000 |
|
|||
Long-term FHLB advances |
|
12,200,000 |
|
|
10,900,000 |
|
|
8,700,000 |
|
|||
Senior notes |
|
497,719 |
|
|
497,494 |
|
|
896,432 |
|
|||
Subordinated notes |
|
777,885 |
|
|
777,781 |
|
|
777,475 |
|
|||
Other liabilities |
|
2,003,677 |
|
|
2,926,735 |
|
|
990,284 |
|
|||
Total Liabilities |
|
106,412,527 |
|
|
101,597,529 |
|
|
90,527,427 |
|
|||
|
|
|
|
|
|
|
||||||
Shareholders’ Equity: |
|
|
|
|
|
|
||||||
Preferred stock |
|
1,145,000 |
|
|
940,000 |
|
|
940,000 |
|
|||
Common stock |
|
1,686 |
|
|
1,685 |
|
|
1,649 |
|
|||
Additional paid-in capital |
|
4,214,915 |
|
|
4,198,442 |
|
|
4,024,306 |
|
|||
Retained earnings |
|
4,484,375 |
|
|
4,281,249 |
|
|
3,731,205 |
|
|||
Accumulated other comprehensive income (loss) |
|
5,131 |
|
|
9,830 |
|
|
(19,383 |
) |
|||
Total Shareholders’ Equity |
|
9,851,107 |
|
|
9,431,206 |
|
|
8,677,777 |
|
|||
Total Liabilities and Shareholders’ Equity |
|
$ |
116,263,634 |
|
|
$ |
111,028,735 |
|
|
$ |
99,205,204 |
|
|
|
|
Quarter Ended December 31, |
|
Quarter Ended September 30, |
|||||||||||||||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|||||||||||||||||||||||||||
|
|
Average |
|
Interest Income/ |
|
Yields/ |
|
Average |
|
Interest Income/ |
|
Yields/ |
|
Average |
|
Interest Income/ |
|
Yields/ |
|||||||||||||||
Average Balances, Yields and Rates |
|
Balance |
|
Expense (1) |
|
Rates (2) |
|
Balance |
|
Expense (1) |
|
Rates (2) |
|
Balance |
|
Expense (1) |
|
Rates (2) |
|||||||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents |
|
$ |
1,377,686 |
|
|
$ |
4,869 |
|
|
1.40 |
% |
|
$ |
1,275,293 |
|
|
$ |
6,702 |
|
|
2.09 |
% |
|
$ |
1,161,441 |
|
|
$ |
5,430 |
|
|
1.86 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Government-sponsored agency securities |
|
461,671 |
|
|
3,239 |
|
|
2.81 |
% |
|
1,044,914 |
|
|
7,772 |
|
|
2.98 |
% |
|
740,893 |
|
|
5,375 |
|
|
2.90 |
% |
||||||
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agency residential and commercial MBS |
|
6,826,144 |
|
|
47,764 |
|
|
2.80 |
% |
|
7,098,381 |
|
|
50,849 |
|
|
2.87 |
% |
|
6,593,422 |
|
|
46,762 |
|
|
2.84 |
% |
||||||
Other residential and commercial MBS |
|
4,276 |
|
|
39 |
|
|
3.66 |
% |
|
4,611 |
|
|
44 |
|
|
3.78 |
% |
|
4,473 |
|
|
43 |
|
|
3.84 |
% |
||||||
Municipal securities |
|
10,981,068 |
|
|
116,245 |
|
|
4.23 |
% |
|
8,087,947 |
|
|
94,909 |
|
|
4.69 |
% |
|
9,184,274 |
|
|
101,154 |
|
|
4.41 |
% |
||||||
Other investment securities (3) |
|
43,840 |
|
|
322 |
|
|
2.94 |
% |
|
18,955 |
|
|
120 |
|
|
2.54 |
% |
|
24,977 |
|
|
156 |
|
|
2.49 |
% |
||||||
Total investment securities |
|
18,316,999 |
|
|
167,609 |
|
|
3.66 |
% |
|
16,254,808 |
|
|
153,694 |
|
|
3.78 |
% |
|
16,548,039 |
|
|
153,490 |
|
|
3.71 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential real estate |
|
48,938,892 |
|
|
391,415 |
|
|
3.20 |
% |
|
39,587,922 |
|
|
325,318 |
|
|
3.28 |
% |
|
45,754,902 |
|
|
374,690 |
|
|
3.27 |
% |
||||||
Multifamily |
|
12,112,107 |
|
|
119,386 |
|
|
3.86 |
% |
|
10,243,384 |
|
|
97,696 |
|
|
3.73 |
% |
|
11,446,955 |
|
|
112,624 |
|
|
3.85 |
% |
||||||
Commercial real estate |
|
7,501,102 |
|
|
79,527 |
|
|
4.15 |
% |
|
6,612,822 |
|
|
70,319 |
|
|
4.16 |
% |
|
7,366,320 |
|
|
79,213 |
|
|
4.21 |
% |
||||||
Construction |
|
2,261,457 |
|
|
26,678 |
|
|
4.62 |
% |
|
2,145,727 |
|
|
26,464 |
|
|
4.83 |
% |
|
2,152,911 |
|
|
26,599 |
|
|
4.83 |
% |
||||||
Business |
|
11,556,437 |
|
|
121,665 |
|
|
4.12 |
% |
|
10,694,770 |
|
|
121,711 |
|
|
4.45 |
% |
|
11,551,439 |
|
|
129,314 |
|
|
4.38 |
% |
||||||
Other |
|
6,085,084 |
|
|
48,261 |
|
|
3.10 |
% |
|
4,943,880 |
|
|
42,791 |
|
|
3.39 |
% |
|
5,704,872 |
|
|
48,746 |
|
|
3.34 |
% |
||||||
Total loans |
|
88,455,079 |
|
|
786,932 |
|
|
3.52 |
% |
|
74,228,505 |
|
|
684,299 |
|
|
3.64 |
% |
|
83,977,399 |
|
|
771,186 |
|
|
3.63 |
% |
||||||
FHLB stock (4) |
|
394,487 |
|
|
5,678 |
|
|
5.71 |
% |
|
293,331 |
|
|
10,122 |
|
|
13.69 |
% |
|
321,778 |
|
|
5,779 |
|
|
7.13 |
% |
||||||
Total interest-earning assets |
|
108,544,251 |
|
|
965,088 |
|
|
3.52 |
% |
|
92,051,937 |
|
|
854,817 |
|
|
3.68 |
% |
|
102,008,657 |
|
|
935,885 |
|
|
3.63 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-earning cash |
|
362,139 |
|
|
|
|
|
|
344,749 |
|
|
|
|
|
|
335,648 |
|
|
|
|
|
||||||||||||
Goodwill and other intangibles |
|
256,614 |
|
|
|
|
|
|
275,645 |
|
|
|
|
|
|
266,032 |
|
|
|
|
|
||||||||||||
Other assets |
|
4,581,436 |
|
|
|
|
|
|
3,572,767 |
|
|
|
|
|
|
4,409,665 |
|
|
|
|
|
||||||||||||
Total noninterest-earning assets |
|
5,200,189 |
|
|
|
|
|
|
4,193,161 |
|
|
|
|
|
|
5,011,345 |
|
|
|
|
|
||||||||||||
Total Assets |
|
$ |
113,744,440 |
|
|
|
|
|
|
$ |
96,245,098 |
|
|
|
|
|
|
$ |
107,020,002 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Checking |
|
$ |
51,333,186 |
|
|
8,777 |
|
|
0.07 |
% |
|
$ |
45,218,239 |
|
|
5,720 |
|
|
0.05 |
% |
|
$ |
48,666,948 |
|
|
8,501 |
|
|
0.07 |
% |
|||
Money market checking and savings |
|
21,298,741 |
|
|
49,682 |
|
|
0.93 |
% |
|
18,960,266 |
|
|
37,051 |
|
|
0.78 |
% |
|
20,536,777 |
|
|
53,046 |
|
|
1.02 |
% |
||||||
CDs |
|
13,694,721 |
|
|
70,246 |
|
|
2.04 |
% |
|
10,720,940 |
|
|
53,417 |
|
|
1.98 |
% |
|
13,170,046 |
|
|
73,370 |
|
|
2.21 |
% |
||||||
Total deposits |
|
86,326,648 |
|
|
128,705 |
|
|
0.59 |
% |
|
74,899,445 |
|
|
96,188 |
|
|
0.51 |
% |
|
82,373,771 |
|
|
134,917 |
|
|
0.65 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Short-term borrowings |
|
3,056,545 |
|
|
13,530 |
|
|
1.76 |
% |
|
650,543 |
|
|
3,868 |
|
|
2.36 |
% |
|
2,204,262 |
|
|
12,520 |
|
|
2.25 |
% |
||||||
Long-term FHLB advances |
|
11,488,043 |
|
|
62,146 |
|
|
2.15 |
% |
|
9,201,630 |
|
|
46,365 |
|
|
2.00 |
% |
|
9,796,739 |
|
|
54,901 |
|
|
2.22 |
% |
||||||
Senior notes (5) |
|
497,610 |
|
|
3,351 |
|
|
2.69 |
% |
|
896,223 |
|
|
5,931 |
|
|
2.65 |
% |
|
497,384 |
|
|
3,350 |
|
|
2.69 |
% |
||||||
Subordinated notes (5) |
|
777,834 |
|
|
9,104 |
|
|
4.68 |
% |
|
777,427 |
|
|
9,099 |
|
|
4.68 |
% |
|
777,730 |
|
|
9,103 |
|
|
4.68 |
% |
||||||
Total borrowings |
|
15,820,032 |
|
|
88,131 |
|
|
2.21 |
% |
|
11,525,823 |
|
|
65,263 |
|
|
2.25 |
% |
|
13,276,115 |
|
|
79,874 |
|
|
2.39 |
% |
||||||
Total interest-bearing liabilities |
|
102,146,680 |
|
|
216,836 |
|
|
0.84 |
% |
|
86,425,268 |
|
|
161,451 |
|
|
0.74 |
% |
|
95,649,886 |
|
|
214,791 |
|
|
0.89 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing liabilities |
|
2,093,561 |
|
|
|
|
|
|
982,269 |
|
|
|
|
|
|
2,037,177 |
|
|
|
|
|
||||||||||||
Preferred equity |
|
899,728 |
|
|
|
|
|
|
1,129,130 |
|
|
|
|
|
|
940,000 |
|
|
|
|
|
||||||||||||
Common equity |
|
8,604,471 |
|
|
|
|
|
|
7,708,431 |
|
|
|
|
|
|
8,392,939 |
|
|
|
|
|
||||||||||||
Total Liabilities and Equity |
|
$ |
113,744,440 |
|
|
|
|
|
|
$ |
96,245,098 |
|
|
|
|
|
|
$ |
107,020,002 |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest spread (6) |
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
2.94 |
% |
|
|
|
|
|
2.74 |
% |
||||||||||||
Net interest income (fully taxable-equivalent basis) and net interest margin (7) |
|
|
|
$ |
748,252 |
|
|
2.73 |
% |
|
|
|
$ |
693,366 |
|
|
2.98 |
% |
|
|
|
$ |
721,094 |
|
|
2.80 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reconciliation of tax-equivalent net interest income to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Tax-equivalent adjustment |
|
(28,134 |
) |
|
|
|
|
|
(26,163 |
) |
|
|
|
|
|
(26,109 |
) |
|
|
||||||||||||||
Net interest income, as reported |
|
$ |
720,118 |
|
|
|
|
|
|
$ |
667,203 |
|
|
|
|
|
|
$ |
694,985 |
|
|
|
|||||||||||
|
|
||||||||||||||||||||||
|
|
Year Ended December 31, |
||||||||||||||||||||
|
|
2019 |
|
2018 |
||||||||||||||||||
|
|
Average |
|
Interest Income/ |
|
Yields/ |
|
Average |
|
Interest Income/ |
|
Yields/ |
||||||||||
Average Balances, Yields and Rates |
Balance |
|
Expense (1) |
|
Rates |
|
Balance |
|
Expense (1) |
|
Rates |
|||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
|
$ |
1,268,405 |
|
|
$ |
23,835 |
|
|
1.88 |
% |
|
$ |
1,325,174 |
|
|
$ |
23,197 |
|
|
1.75 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury and other U.S. Government agency securities |
|
— |
|
|
— |
|
|
— |
% |
|
4,694 |
|
|
87 |
|
|
1.85 |
% |
||||
U.S. Government-sponsored agency securities |
|
818,000 |
|
|
24,066 |
|
|
2.94 |
% |
|
1,072,391 |
|
|
31,761 |
|
|
2.96 |
% |
||||
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency residential and commercial MBS |
|
6,735,598 |
|
|
191,869 |
|
|
2.85 |
% |
|
7,370,501 |
|
|
203,505 |
|
|
2.76 |
% |
||||
Other residential and commercial MBS |
|
4,450 |
|
|
170 |
|
|
3.83 |
% |
|
5,027 |
|
|
265 |
|
|
5.28 |
% |
||||
Municipal securities |
|
9,218,509 |
|
|
409,127 |
|
|
4.44 |
% |
|
8,126,173 |
|
|
382,662 |
|
|
4.71 |
% |
||||
Other investment securities (3) |
|
26,848 |
|
|
726 |
|
|
2.70 |
% |
|
19,617 |
|
|
480 |
|
|
2.44 |
% |
||||
Total investment securities |
|
16,803,405 |
|
|
625,958 |
|
|
3.73 |
% |
|
16,598,403 |
|
|
618,760 |
|
|
3.73 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential real estate |
|
44,655,754 |
|
|
1,465,364 |
|
|
3.28 |
% |
|
37,184,625 |
|
|
1,185,240 |
|
|
3.19 |
% |
||||
Multifamily |
|
11,309,622 |
|
|
443,174 |
|
|
3.86 |
% |
|
9,602,522 |
|
|
357,780 |
|
|
3.67 |
% |
||||
Commercial real estate |
|
7,157,799 |
|
|
306,401 |
|
|
4.22 |
% |
|
6,352,419 |
|
|
265,664 |
|
|
4.12 |
% |
||||
Construction |
|
2,188,874 |
|
|
106,566 |
|
|
4.80 |
% |
|
1,954,078 |
|
|
93,613 |
|
|
4.73 |
% |
||||
Business |
|
11,302,160 |
|
|
503,782 |
|
|
4.40 |
% |
|
9,579,793 |
|
|
417,636 |
|
|
4.30 |
% |
||||
Other |
|
5,559,309 |
|
|
187,536 |
|
|
3.33 |
% |
|
4,520,492 |
|
|
148,873 |
|
|
3.25 |
% |
||||
Total loans |
|
82,173,518 |
|
|
3,012,823 |
|
|
3.64 |
% |
|
69,193,929 |
|
|
2,468,806 |
|
|
3.54 |
% |
||||
FHLB stock (4) |
|
331,862 |
|
|
21,446 |
|
|
6.46 |
% |
|
293,359 |
|
|
25,187 |
|
|
8.59 |
% |
||||
Total interest-earning assets |
|
100,577,190 |
|
|
3,684,062 |
|
|
3.64 |
% |
|
87,410,865 |
|
|
3,135,950 |
|
|
3.57 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-earning cash |
|
347,065 |
|
|
|
|
|
|
347,639 |
|
|
|
|
|
||||||||
Goodwill and other intangibles |
|
266,062 |
|
|
|
|
|
|
281,633 |
|
|
|
|
|
||||||||
Other assets |
|
4,376,016 |
|
|
|
|
|
|
3,501,575 |
|
|
|
|
|
||||||||
Total noninterest-earning assets |
|
4,989,143 |
|
|
|
|
|
|
4,130,847 |
|
|
|
|
|
||||||||
Total Assets |
|
$ |
105,566,333 |
|
|
|
|
|
|
$ |
91,541,712 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Checking |
|
$ |
48,097,161 |
|
|
30,318 |
|
|
0.06 |
% |
|
$ |
43,793,120 |
|
|
21,892 |
|
|
0.05 |
% |
||
Money market checking and savings |
|
20,113,724 |
|
|
196,582 |
|
|
0.98 |
% |
|
17,774,302 |
|
|
108,290 |
|
|
0.61 |
% |
||||
CDs |
|
12,769,459 |
|
|
273,657 |
|
|
2.14 |
% |
|
9,220,835 |
|
|
159,858 |
|
|
1.73 |
% |
||||
Total deposits |
|
80,980,344 |
|
|
500,557 |
|
|
0.62 |
% |
|
70,788,257 |
|
|
290,040 |
|
|
0.41 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings |
|
2,278,831 |
|
|
50,361 |
|
|
2.21 |
% |
|
793,606 |
|
|
15,277 |
|
|
1.93 |
% |
||||
Long-term FHLB advances |
|
9,738,767 |
|
|
209,816 |
|
|
2.15 |
% |
|
9,039,658 |
|
|
165,081 |
|
|
1.83 |
% |
||||
Senior notes (5) |
|
680,199 |
|
|
18,169 |
|
|
2.67 |
% |
|
895,584 |
|
|
23,709 |
|
|
2.65 |
% |
||||
Subordinated notes (5) |
|
777,681 |
|
|
36,409 |
|
|
4.68 |
% |
|
777,280 |
|
|
36,391 |
|
|
4.68 |
% |
||||
Total borrowings |
|
13,475,478 |
|
|
314,755 |
|
|
2.34 |
% |
|
11,506,128 |
|
|
240,458 |
|
|
2.09 |
% |
||||
Total interest-bearing liabilities |
|
94,455,822 |
|
|
815,312 |
|
|
0.86 |
% |
|
82,294,385 |
|
|
530,498 |
|
|
0.64 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing liabilities |
|
1,859,115 |
|
|
|
|
|
|
939,028 |
|
|
|
|
|
||||||||
Preferred equity |
|
929,849 |
|
|
|
|
|
|
1,004,110 |
|
|
|
|
|
||||||||
Common equity |
|
8,321,547 |
|
|
|
|
|
|
7,304,189 |
|
|
|
|
|
||||||||
Total Liabilities and Equity |
|
$ |
105,566,333 |
|
|
|
|
|
|
$ |
91,541,712 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest spread (6) |
|
|
|
|
|
2.78 |
% |
|
|
|
|
|
2.92 |
% |
||||||||
Net interest income (fully taxable-equivalent basis) and net interest margin (7) |
|
|
|
$ |
2,868,750 |
|
|
2.83 |
% |
|
|
|
$ |
2,605,452 |
|
|
2.96 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of tax-equivalent net interest income to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-equivalent adjustment |
|
|
|
(104,583 |
) |
|
|
|
|
|
(104,344 |
) |
|
|
||||||||
Net interest income, as reported |
|
|
|
$ |
2,764,167 |
|
|
|
|
|
|
$ |
2,501,108 |
|
|
|
||||||
|
||||||||||||||||||||||
(1) Interest income is presented on a fully taxable-equivalent basis. |
||||||||||||||||||||||
(2) Yields/rates are annualized. |
||||||||||||||||||||||
(3) Includes corporate debt securities, mutual funds and marketable equity securities. |
||||||||||||||||||||||
(4) Yield for the quarter and year ended December 31, 2018 includes an FHLB special dividend of $4.8 million. |
||||||||||||||||||||||
(5) Average balances include unamortized issuance discounts and costs. Interest expense includes amortization of issuance discounts and costs. |
||||||||||||||||||||||
(6) Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities. |
||||||||||||||||||||||
(7) Net interest margin represents net interest income on a fully taxable-equivalent basis divided by total average interest-earning assets. |
||||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
||||||||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
||||||||||||||
Operating Information |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
($ in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income to average assets (1) |
|
0.86 |
% |
|
0.95 |
% |
|
0.87 |
% |
|
0.88 |
% |
|
0.93 |
% |
|||||
Net income available to common shareholders to average common equity (1) |
|
10.86 |
% |
|
11.08 |
% |
|
10.50 |
% |
|
10.59 |
% |
|
10.90 |
% |
|||||
Net income available to common shareholders to average tangible common equity (1) |
|
11.20 |
% |
|
11.49 |
% |
|
10.84 |
% |
|
10.94 |
% |
|
11.34 |
% |
|||||
Dividends per common share |
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.19 |
|
|
$ |
0.75 |
|
|
$ |
0.71 |
|
Dividend payout ratio |
|
13.7 |
% |
|
14.0 |
% |
|
14.5 |
% |
|
14.4 |
% |
|
14.8 |
% |
|||||
Efficiency ratio (2) |
|
63.7 |
% |
|
61.5 |
% |
|
63.8 |
% |
|
64.2 |
% |
|
63.0 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loan charge-offs (recoveries) |
|
$ |
(1,060 |
) |
|
$ |
1,866 |
|
|
$ |
4,341 |
|
|
$ |
4,634 |
|
|
$ |
2,976 |
|
Net loan charge-offs (recoveries) to average total
|
|
(0.00 |
%) |
|
0.01 |
% |
|
0.02 |
% |
|
0.01 |
% |
|
0.00 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses to: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans |
|
0.55 |
% |
|
0.58 |
% |
|
0.56 |
% |
|
0.55 |
% |
|
0.58 |
% |
|||||
Nonaccrual loans |
|
346.5 |
% |
|
944.9 |
% |
|
354.5 |
% |
|
346.5 |
% |
|
944.9 |
% |
|||||
(1) For periods less than a year, ratios are annualized. |
||||||||||||||||||||
(2) Efficiency ratio is the ratio of noninterest expense to the sum of net interest income and noninterest income. |
||||||||||||||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|||||||||
|
|
December 31, |
|
September 30, |
|
December 31, |
|||||||||
Effective Tax Rate |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|||||
Effective tax rate, prior to excess tax benefits |
|
21.6 |
% |
|
20.7 |
% |
|
21.4 |
% |
|
21.4 |
% |
|
21.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Excess tax benefits—stock options |
|
(1.2 |
)% |
|
(1.2 |
)% |
|
(3.3 |
)% |
|
(2.9 |
)% |
|
(1.3 |
)% |
Excess tax benefits—other stock awards |
|
(0.1 |
)% |
|
(0.1 |
)% |
|
(0.1 |
)% |
|
(0.6 |
)% |
|
(0.9 |
)% |
Total excess tax benefits |
|
(1.3 |
)% |
|
(1.3 |
)% |
|
(3.4 |
)% |
|
(3.5 |
)% |
|
(2.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Effective tax rate |
|
20.3 |
% |
|
19.4 |
% |
|
18.0 |
% |
|
17.9 |
% |
|
18.8 |
% |
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
||||||||||||||
December 31, |
|
September 30, |
|
December 31, |
||||||||||||||||
Mortgage Loan Sales |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans sold: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Flow sales: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency |
|
$ |
34,519 |
|
|
$ |
4,945 |
|
|
$ |
25,214 |
|
|
$ |
85,945 |
|
|
$ |
42,081 |
|
Non-agency |
|
7,717 |
|
|
6,785 |
|
|
11,932 |
|
|
50,983 |
|
|
172,077 |
|
|||||
Total flow sales |
|
42,236 |
|
|
11,730 |
|
|
37,146 |
|
|
136,928 |
|
|
214,158 |
|
|||||
Bulk sales: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-agency |
|
— |
|
|
— |
|
|
— |
|
|
152,119 |
|
|
773,041 |
|
|||||
Securitizations |
|
— |
|
|
251,931 |
|
|
— |
|
|
— |
|
|
251,931 |
|
|||||
Total loans sold |
|
$ |
42,236 |
|
|
$ |
263,661 |
|
|
$ |
37,146 |
|
|
$ |
289,047 |
|
|
$ |
1,239,130 |
|
Gain on sale of loans: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount |
|
$ |
69 |
|
|
$ |
579 |
|
|
$ |
122 |
|
|
$ |
535 |
|
|
$ |
5,616 |
|
Gain as a percentage of loans sold |
|
0.16 |
% |
|
0.22 |
% |
|
0.33 |
% |
|
0.19 |
% |
|
0.45 |
% |
|||||
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
||||||||||||||
December 31, |
September 30, |
December 31, |
||||||||||||||||||
Loan Originations |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Single family (1-4 units) |
|
$ |
5,275,965 |
|
|
$ |
2,709,197 |
|
|
$ |
4,872,598 |
|
|
$ |
16,405,784 |
|
|
$ |
10,784,654 |
|
Home equity lines of credit |
|
456,150 |
|
|
380,710 |
|
|
359,154 |
|
|
1,524,031 |
|
|
1,542,747 |
|
|||||
Multifamily (5+ units) |
|
1,226,394 |
|
|
856,577 |
|
|
710,983 |
|
|
3,340,258 |
|
|
3,321,334 |
|
|||||
Commercial real estate |
|
447,254 |
|
|
355,137 |
|
|
556,151 |
|
|
1,823,687 |
|
|
1,235,819 |
|
|||||
Construction |
|
415,848 |
|
|
471,904 |
|
|
549,518 |
|
|
1,631,384 |
|
|
1,694,788 |
|
|||||
Business (1) |
|
2,273,510 |
|
|
2,390,545 |
|
|
2,814,189 |
|
|
9,080,396 |
|
|
9,379,905 |
|
|||||
Stock and other secured |
|
820,471 |
|
|
365,374 |
|
|
662,522 |
|
|
2,780,617 |
|
|
2,101,390 |
|
|||||
Unsecured |
|
308,360 |
|
|
348,235 |
|
|
438,278 |
|
|
1,377,319 |
|
|
1,382,552 |
|
|||||
Total loans originated |
|
$ |
11,223,952 |
|
|
$ |
7,877,679 |
|
|
$ |
10,963,393 |
|
|
$ |
37,963,476 |
|
|
$ |
31,443,189 |
|
|
(1)
|
Origination amounts for certain business lines of credit (i.e. capital call lines of credit) reflect the Bank's contractual obligations in effect during the reporting period and exclude amounts that are contingent upon future credit approvals. Prior periods presented have also been adjusted to exclude the contingent amounts for these lines of credit. |
|
As of |
|||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
Loan Servicing Portfolio |
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
($ in millions) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans serviced for investors |
|
$ |
9,298 |
|
|
$ |
10,080 |
|
|
$ |
10,746 |
|
|
$ |
11,326 |
|
|
$ |
11,573 |
|
|
|
As of |
||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
Asset Quality Information |
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans |
|
$ |
143,181 |
|
|
$ |
136,928 |
|
|
$ |
144,993 |
|
|
$ |
51,081 |
|
|
$ |
46,465 |
|
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Total nonperforming assets |
|
$ |
143,181 |
|
|
$ |
136,928 |
|
|
$ |
144,993 |
|
|
$ |
51,081 |
|
|
$ |
46,465 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets |
|
0.12 |
% |
|
0.12 |
% |
|
0.14 |
% |
|
0.05 |
% |
|
0.05 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing loans 90 days or more past due |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructured accruing loans |
|
$ |
13,287 |
|
|
$ |
14,964 |
|
|
$ |
12,176 |
|
|
$ |
10,208 |
|
|
$ |
11,514 |
|
|
|
As of |
||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
Book Value and Capital Ratios |
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of shares of common stock outstanding |
|
168,621 |
|
|
168,450 |
|
|
168,176 |
|
|
167,393 |
|
|
164,902 |
|
|||||
Book value per common share |
|
$ |
51.63 |
|
|
$ |
50.41 |
|
|
$ |
49.23 |
|
|
$ |
48.42 |
|
|
$ |
46.92 |
|
Tangible book value per common share |
|
$ |
50.24 |
|
|
$ |
48.84 |
|
|
$ |
47.64 |
|
|
$ |
46.81 |
|
|
$ |
45.26 |
|
|
|
As of |
||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
Capital Ratios |
2019 (1) |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
Tier 1 leverage ratio (Tier 1 capital to average assets) |
|
8.39 |
% |
|
8.50 |
% |
|
8.69 |
% |
|
8.84 |
% |
|
8.68 |
% |
|||||
Common Equity Tier 1 capital to risk-weighted assets |
|
9.86 |
% |
|
9.91 |
% |
|
10.19 |
% |
|
10.54 |
% |
|
10.38 |
% |
|||||
Tier 1 capital to risk-weighted assets |
|
11.21 |
% |
|
11.05 |
% |
|
11.39 |
% |
|
11.82 |
% |
|
11.70 |
% |
|||||
Total capital to risk-weighted assets |
|
12.73 |
% |
|
12.61 |
% |
|
13.02 |
% |
|
13.50 |
% |
|
13.43 |
% |
|||||
Regulatory Capital (2) |
|
|
|
|
|
|
|
|
|
|
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Equity Tier 1 capital |
|
$ |
8,371,192 |
|
|
$ |
8,124,179 |
|
|
$ |
7,934,602 |
|
|
$ |
7,776,620 |
|
|
$ |
7,379,997 |
|
Tier 1 capital |
|
$ |
9,516,192 |
|
|
$ |
9,064,179 |
|
|
$ |
8,874,602 |
|
|
$ |
8,716,620 |
|
|
$ |
8,319,997 |
|
Total capital |
|
$ |
10,802,209 |
|
|
$ |
10,340,902 |
|
|
$ |
10,138,375 |
|
|
$ |
9,960,317 |
|
|
$ |
9,549,738 |
|
Assets (2) |
|
|
|
|
|
|
|
|
|
|
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Average assets |
|
$ |
113,403,507 |
|
|
$ |
106,659,003 |
|
|
$ |
102,097,363 |
|
|
$ |
98,582,697 |
|
|
$ |
95,905,266 |
|
Risk-weighted assets |
|
$ |
84,885,953 |
|
|
$ |
81,994,651 |
|
|
$ |
77,889,111 |
|
|
$ |
73,753,991 |
|
|
$ |
71,116,459 |
|
|
||||||||||||||||||||
(1) Ratios and amounts as of December 31, 2019 are preliminary. |
||||||||||||||||||||
(2) As defined by regulatory capital rules. |
||||||||||||||||||||
|
|
As of |
||||||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||
Wealth Management Assets |
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
($ in millions) |
|
|
|
|
|
|
|
|
|
|
||||||||||
First Republic Investment Management |
|
$ |
66,029 |
|
|
$ |
61,204 |
|
|
$ |
61,192 |
|
|
$ |
66,675 |
|
|
$ |
60,591 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Brokerage and investment: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Brokerage |
|
68,807 |
|
|
63,053 |
|
|
61,583 |
|
|
59,391 |
|
|
53,046 |
|
|||||
Money market mutual funds |
|
4,268 |
|
|
4,402 |
|
|
3,312 |
|
|
2,818 |
|
|
2,358 |
|
|||||
Total brokerage and investment |
|
73,075 |
|
|
67,455 |
|
|
64,895 |
|
|
62,209 |
|
|
55,404 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trust Company: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Trust |
|
7,121 |
|
|
6,366 |
|
|
6,319 |
|
|
5,955 |
|
|
5,350 |
|
|||||
Custody |
|
4,818 |
|
|
5,210 |
|
|
5,225 |
|
|
5,060 |
|
|
4,868 |
|
|||||
Total Trust Company |
|
11,939 |
|
|
11,576 |
|
|
11,544 |
|
|
11,015 |
|
|
10,218 |
|
|||||
Total Wealth Management Assets |
|
$ |
151,043 |
|
|
$ |
140,235 |
|
|
$ |
137,631 |
|
|
$ |
139,899 |
|
|
$ |
126,213 |
|