First Republic Reports 2020 Results

Revenues Increased 17% Year-Over-Year

Tangible Book Value Per Share Increased 14% Year-Over-Year

SAN FRANCISCO--(BUSINESS WIRE)--First Republic Bank (NYSE: FRC) today announced financial results for the quarter and year ended December 31, 2020.

“First Republic had another very successful year,” said Founder, Chairman and CEO Jim Herbert. “Founded in 1985, this was our 35^th consecutive year of profitability. First Republic continues to deliver safe, consistent growth, reflecting the strength of our client focused service model.”

Full Year Highlights

Financial Results

– Revenues were $3.9 billion, up 17.2%.

– Net interest income was $3.3 billion, up 18.0%.

– Net income was $1.1 billion, up 14.4%.

– Diluted earnings per share of $5.81, up 11.7%.

– Loan originations totaled $50.7 billion (excluding $2.0 billion of originations under the Small Business Administration’s Paycheck Protection Program (“PPP”)).

– Tangible book value per share was $57.30, up 14.1%.

– Efficiency ratio was 61.9%, compared to 64.2% last year.

Continued Capital and Credit Strength

– Tier 1 leverage ratio was 8.14%.

– Nonperforming assets remained at a low 13 basis points of total assets.

– Net charge-offs were only $2.4 million, or less than 1 basis point of average loans.

Continued Franchise Development

– Loans totaled $110.7 billion, up 21.9% (excluding PPP and for sale loans).

– Deposits were $114.9 billion, up 27.5%.

– Wealth management assets were $194.5 billion, up 28.7%.

– Wealth management revenues were $526.5 million, up 11.9%.

Quarterly Highlights

– Compared to last year’s fourth quarter:

– Revenues were $1.1 billion, up 23.1%.

– Net interest income was $892.7 million, up 24.0%.

– Net income was $295.6 million, up 20.0%.

– Diluted earnings per share of $1.60, up 15.1%.

– Loan originations were $16.7 billion.

– Net recoveries were $600,000.

– Net interest margin was 2.73%, compared to 2.71% for the prior quarter.

– Efficiency ratio was 61.6%, compared to 60.7% for the prior quarter.

– Wealth management assets were $194.5 billion, up 15.6% from the prior quarter.

“We’re very pleased with the double-digit growth of revenue, net interest income and earnings per share, both for the full year and the fourth quarter,” said Mike Roffler, Chief Financial Officer. “We remain focused on maintaining our capital strength and successfully raised, net, over $900 million in new Tier 1 capital in 2020.”

Quarterly Cash Dividend of $0.20 per Share

The Bank declared a cash dividend for the fourth quarter of $0.20 per share of common stock, which is payable on February 11, 2021 to shareholders of record as of January 28, 2021. The current quarterly dividend is an increase over last year’s fourth quarter dividend, our 9^th consecutive year of dividend increases.

Strong Asset Quality

Credit quality remains strong. Nonperforming assets were only 13 basis points of total assets at December 31, 2020.

The provision for credit losses for the full year was $157.1 million, with net loan charge-offs of only $2.4 million. For the quarter, the provision for credit losses was $35.1 million, which was driven by loan growth.

Continued Capital Strength

The Bank’s Tier 1 leverage ratio was 8.14% at December 31, 2020, compared to 8.38% at September 30, 2020.

During the fourth quarter, the Bank redeemed all of the outstanding shares of its 5.70% Noncumulative Perpetual Series F Preferred Stock, which totaled $100.0 million. In addition, the Bank sold 1,725,000 new shares of common stock in an underwritten public offering, which added approximately $225.4 million to common equity. Total common stock sold and preferred stock issued in 2020, net of preferred stock redeemed, added $908.0 million of Tier 1 capital in 2020.

The Bank has not and does not engage in common stock buybacks.

Tangible Book Value Growth

Tangible book value per common share at December 31, 2020 was $57.30, up 14.1% from a year ago.

Continued Franchise Development

Loan Originations

Loan originations were $16.7 billion for the quarter, up 48.8% from the same quarter a year ago. For 2020, loan originations (excluding PPP loans) totaled $50.7 billion, up 33.6% compared to the prior year. The increases were primarily due to increases in single family and business lending.

Single family loan originations were 47% of the total volume for the quarter and the full year (excluding PPP loans) and had a weighted average loan-to-value ratio of 56% for the full year. In addition, multifamily and commercial real estate loans originated were 9% of total originations for the quarter and 10% for the year (excluding PPP loans), and had a weighted average loan-to-value ratio of 50% for the year.

Loans, excluding PPP loans and loans held for sale, totaled $110.7 billion at December 31, 2020, up 21.9% compared to a year ago primarily due to increases in single family loans (67% of growth), business and multifamily loans.

COVID-19 Loan Modifications

Remaining loan modifications at year-end to those borrowers experiencing financial challenges as a result of COVID-19 (not classified as troubled debt restructurings) totaled $1.3 billion, and were 1.1% of total loans as of December 31, 2020. Such remaining modifications decreased 67% since September 30, 2020.

The Bank has limited exposure to several of the areas most directly impacted by COVID-19, such as the retail, hotel and restaurant industries, which totaled $2.5 billion as of December 31, 2020, only 2.2% of total loans. As of December 31, 2020, the Bank had modifications of these portfolios for $160 million, or 6%.

Deposit Growth

Total deposits increased to $114.9 billion, up 27.5% compared to a year ago, and had an average rate paid of 11 basis points during the quarter.

At December 31, 2020, checking deposit balances were 66.9% of total deposits.

Investments

Total investment securities at December 31, 2020 were $18.5 billion, a slight decrease compared to the prior quarter and a slight increase compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $18.1 billion at December 31, 2020, and represented 12.8% of quarterly average total assets.

Wealth Management

Total wealth management assets were $194.5 billion at December 31, 2020, up 15.6% for the quarter and up 28.7% compared to a year ago. The increases in wealth management assets were due to both net client inflow and market appreciation.

Wealth management revenues totaled $151.4 million for the quarter, up 17.9% compared to last year’s fourth quarter. For 2020, wealth management revenues were $526.5 million, an increase of 11.9% compared to the prior year. Such revenues represented 14.0% of the Bank’s total revenues for the quarter and 13.4% of the Bank’s total revenues for the year.

Wealth management assets at December 31, 2020 included investment management assets of $83.6 billion, brokerage assets and money market mutual funds of $97.1 billion, and trust and custody assets of $13.8 billion.

Income Statement and Key Ratios

Revenue Growth

Total revenues were $1.1 billion for the quarter, up 23.1% compared to the fourth quarter a year ago, and were $3.9 billion for 2020, up 17.2% compared to the prior year.

Net Interest Income Growth

Net interest income was $892.7 million for the quarter, up 24.0% compared to the fourth quarter a year ago, and was $3.3 billion for 2020, up 18.0% compared to the prior year. The increases in net interest income resulted primarily from growth in average interest-earning assets. The increase for the year was partially offset by a decrease in net interest margin.

Net Interest Margin

The net interest margin increased to 2.73% in the fourth quarter, from 2.71% in the prior quarter. For 2020, the net interest margin was 2.72%, compared to 2.83% for the prior year. The decrease for the year was primarily due to average yields on earning assets declining more than the offsetting decrease in average funding costs.

Noninterest Income

Noninterest income was $187.6 million for the quarter, up 19.3% compared to the fourth quarter a year ago, and was $654.2 million for 2020, up 13.3% compared to the prior year. The increase for the quarter was primarily driven by higher wealth management fees. The increase for the year was primarily driven by higher wealth management fees and an elevated gain on sale of loans, partially offset by lower loan servicing fees.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $666.0 million for the quarter, up 19.2% compared to the fourth quarter a year ago, and was $2.4 billion for 2020, up 13.0% compared to the prior year. The increases were primarily due to increased salaries and benefits and information systems costs from the continued investments in the expansion of the franchise. The increase for the year was partially offset by lower travel and entertainment, as well as advertising and marketing expenses.

The efficiency ratio was 61.6% for the quarter, compared to 63.7% for the fourth quarter a year ago. For 2020, the efficiency ratio was 61.9%, compared to 64.2% for 2019.

Income Taxes

The Bank’s effective tax rate for the fourth quarter of 2020 was 22.1%, compared to 19.6% for the prior quarter, and 20.3% for the fourth quarter a year ago. The increase from the prior quarter was primarily due to an increase from state taxes, and a tax refund from an amended tax return in the third quarter of 2020. The increase from the fourth quarter a year ago was primarily the result of lower excess tax benefits from a decrease in stock option exercises by employees, as well as an increase from state taxes.

The effective tax rate for 2020 was 20.2%, compared to 17.9% for 2019. The increase for the year was primarily the result of lower excess tax benefits from a decrease in stock option exercises by employees, partially offset by a tax refund from an amended tax return.

Conference Call Details

First Republic Bank’s fourth quarter 2020 earnings conference call is scheduled for January 14, 2021 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial [phone] and use confirmation code 3942335 approximately 15 minutes prior to the start time (to allow time for registration). International callers should dial [phone] 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 https://ir.firstrepublic.com/events-calendar. To listen to the live webcast, please visit the site at least 15 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, 2021, at 11:00 a.m. PT / 2:00 p.m. ET, through January 21, 2021, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial [phone] and use confirmation code 3942335#. International callers should dial [phone] 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 https://ir.firstrepublic.com/events-calendar.

The Bank’s press releases are available after release in the Newsroom and 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, as well as for unfunded loan commitments; changes in nonperforming assets; expectations regarding the impact and duration of COVID-19; 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; natural or other disasters, including earthquakes, fires, pandemics or acts of terrorism affecting the markets in which we operate; the negative impacts and disruptions resulting from COVID-19 on our colleagues and clients, the communities we serve and the domestic and global economy, which may have an adverse effect on our business, financial position and results of operations; 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 some reference rates, such as the London Interbank Offered Rate and the 11th District Monthly Weighted Average Cost of Funds Index, as well as other alternative reference rates; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; 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, Quarterly Reports on Form 10-Q 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 December 31,					Quarter Ended September 30,			Year Ended December 31,
(in thousands, except per share amounts)	2020		2019			2020			2020			2019
Interest income:
Loans	$	845,150	$	780,326		$	811,708		$	3,244,796		$	2,986,210
Investments	138,429		146,080			142,971			576,484			547,988
Other	5,754		5,679			6,116			23,889			21,446
Cash and cash equivalents	1,819		4,869			1,181			7,504			23,835
Total interest income	991,152		936,954			961,976			3,852,673			3,579,479
Interest expense:
Deposits	30,405		128,705			54,355			276,085			500,557
Borrowings	68,019		88,131			77,341			314,036			314,755
Total interest expense	98,424		216,836			131,696			590,121			815,312
Net interest income	892,728		720,118			830,280			3,262,552			2,764,167
Provision for credit losses	35,066		9,579			28,538			157,091			61,690
Net interest income after provision for credit losses	857,662		710,539			801,742			3,105,461			2,702,477
Noninterest income:
Investment management fees	114,287		97,106			96,638			395,304			359,332
Brokerage and investment fees	11,489		12,416			10,796			50,517			41,035
Insurance fees	5,569		4,186			2,216			11,655			12,708
Trust fees	5,366		4,328			4,543			19,484			16,549
Foreign exchange fee income	14,688		10,365			12,575			49,552			41,026
Deposit fees	6,115		6,609			5,753			23,713			26,071
Loan and related fees	7,167		6,175			7,171			27,908			19,819
Loan servicing fees, net	1,248		1,788			144			(1,401		)	11,348
Gain on sale of loans	2,412		69			13,797			16,987			535
Gain (loss) on investment securities	88		(1,541		)	(405		)	3,840			(3,436		)
Income from investments in life insurance	16,997		14,034			20,546			53,503			45,570
Other income (loss)	2,211		1,810			(2,791		)	3,171			6,663
Total noninterest income	187,637		157,345			170,983			654,233			577,220
Noninterest expense:
Salaries and employee benefits	415,767		325,094			373,225			1,494,400			1,245,526
Information systems	79,331		69,278			74,549			298,632			273,337
Occupancy	56,627		50,474			55,543			220,752			192,678
Professional fees	18,015		22,476			19,845			66,494			68,099
Advertising and marketing	13,762		17,615			8,909			43,135			65,961
FDIC assessments	11,650		10,912			11,003			44,113			38,759
Other expenses	70,892		62,996			65,136			258,203			262,101
Total noninterest expense	666,044		558,845			608,210			2,425,729			2,146,461
Income before provision for income taxes	379,255		309,039			364,515			1,333,965			1,133,236
Provision for income taxes	83,695		62,709			71,378			269,814			202,907
Net income	295,560		246,330			293,137			1,064,151			930,329
Dividends on preferred stock	16,072		10,708			14,816			58,725			49,070
Net income available to common shareholders	$	279,488	$	235,622		$	278,321		$	1,005,426		$	881,259
Basic earnings per common share	$	1.61	$	1.40		$	1.62		$	5.85		$	5.25
Diluted earnings per common share	$	1.60	$	1.39		$	1.61		$	5.81		$	5.20
Weighted average shares—basic	173,111		168,544			172,142			171,933			167,908
Weighted average shares—diluted	174,708		169,776			172,932			173,053			169,551

CONSOLIDATED BALANCE SHEETS
	As of
($ in thousands)	December 31, 2020			September 30, 2020			December 31, 2019 ^(1)
ASSETS
Cash and cash equivalents	$	5,094,754		$	3,691,149		$	1,699,557
Debt securities available-for-sale	1,906,315			1,711,202			1,282,169
Debt securities held-to-maturity	16,610,212			16,929,422			17,147,633
Less: Allowance for credit losses	(6,902		)	(5,716		)	—
Debt securities held-to-maturity, net	16,603,310			16,923,706			17,147,633
Equity securities (fair value)	20,566			20,478			19,586
Loans: ^(1)
Single family	61,370,246			56,628,359			47,985,651
Home equity lines of credit	2,449,533			2,431,991			2,501,432
Single family construction	787,854			739,091			761,589
Multifamily	13,768,957			13,392,531			12,353,359
Commercial real estate	8,018,158			7,781,797			7,449,058
Multifamily/commercial construction	2,024,420			2,038,949			1,695,954
Capital call lines of credit	8,149,946			6,203,877			5,570,322
Tax-exempt	3,365,572			3,276,705			3,042,193
Other business	3,340,048			2,982,532			3,034,301
PPP	1,841,376			2,091,102			—
Stock secured	2,518,338			2,311,754			1,897,511
Other secured	1,818,550			1,780,652			1,433,399
Unsecured	3,113,267			3,102,311			3,072,062
Total loans	112,566,265			104,761,651			90,796,831
Allowance for credit losses	(635,019		)	(604,747		)	(496,104		)
Loans, net	111,931,246			104,156,904			90,300,727
Loans held for sale	20,679			33,655			23,304
Investments in life insurance	2,061,362			1,949,360			1,434,642
Tax credit investments	1,131,905			1,099,713			1,100,509
Premises, equipment and leasehold improvements, net	403,482			390,241			386,841
Goodwill and other intangible assets	227,512			229,185			235,269
Other assets	3,101,003			3,020,178			2,633,397
Total Assets	$	142,502,134		$	133,225,771		$	116,263,634
LIABILITIES AND EQUITY
Liabilities:
Deposits:
Noninterest-bearing checking	$	46,281,112		$	41,538,676		$	33,124,265
Interest-bearing checking	30,603,221			26,081,189			19,696,859
Money market checking	16,778,884			15,868,769			12,790,707
Money market savings and passbooks	12,584,522			11,419,289			10,586,355
Certificates of deposit	8,681,061			9,495,453			13,935,060
Total Deposits	114,928,800			104,403,376			90,133,246
Short-term borrowings	—			5,000			800,000
Long-term FHLB advances	11,755,000			13,505,000			12,200,000
Senior notes	996,145			995,626			497,719
Subordinated notes	778,313			778,204			777,885
Other liabilities	2,293,230			2,193,956			2,003,677
Total Liabilities	130,751,488			121,881,162			106,412,527
Shareholders’ Equity:
Preferred stock	1,545,000			1,645,000			1,145,000
Common stock	1,741			1,722			1,686
Additional paid-in capital	4,834,172			4,571,499			4,214,915
Retained earnings	5,346,355			5,102,229			4,484,375
Accumulated other comprehensive income	23,378			24,159			5,131
Total Shareholders’ Equity	11,750,646			11,344,609			9,851,107
Total Liabilities and Shareholders’ Equity	$	142,502,134		$	133,225,771		$	116,263,634
____________
^(1) For comparability, the Bank has adjusted certain prior period loan amounts to conform to the current period presentation under the Current Expected Credit Losses (“CECL”) methodology.

	Quarter Ended December 31,														Quarter Ended September 30,
	2020							2019 ^(4)							2020
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	$	6,965,598	$	1,819		0.10	%	$	1,377,686	$	4,869		1.40	%	$	4,427,985	$	1,181		0.11	%
Investment securities:
U.S. Government-sponsored agency securities	50,000		196			1.57	%	461,671		3,239			2.81	%	202,174		1,186			2.35	%
Agency residential and commercial MBS	5,786,312		32,237			2.23	%	6,826,144		47,764			2.80	%	6,250,577		37,437			2.40	%
Other residential and commercial MBS	35,437		184			2.08	%	4,276		39			3.66	%	37,860		201			2.13	%
Municipal securities	12,638,677		130,938			4.14	%	10,981,068		116,245			4.23	%	12,309,647		129,097			4.19	%
Other investment securities^(3)	76,272		511			2.68	%	43,840		322			2.94	%	44,782		309			2.76	%
Total investment securities	18,586,698		164,066			3.53	%	18,316,999		167,609			3.66	%	18,845,040		168,230			3.57	%
Loans: ^(4)
Residential real estate ^(5)	61,523,322		445,028			2.89	%	48,938,892		391,415			3.20	%	56,906,612		421,545			2.96	%
Multifamily ^(6)	13,596,444		125,042			3.60	%	12,043,858		118,431			3.85	%	13,312,631		124,759			3.67	%
Commercial real estate	7,909,682		78,599			3.89	%	7,414,885		78,229			4.13	%	7,801,603		78,412			3.93	%
Multifamily/commercial construction	2,788,321		31,588			4.43	%	2,415,923		28,931			4.69	%	2,739,717		30,608			4.37	%
Business ^(7)	13,382,558		115,809			3.39	%	11,556,437		121,665			4.12	%	12,538,201		110,487			3.45	%
PPP	2,004,127		14,419			2.82	%	—		—			—	%	2,091,580		10,825			2.03	%
Other ^(8)	7,253,376		41,385			2.23	%	6,085,084		48,261			3.10	%	6,995,592		41,735			2.33	%
Total loans	108,457,830		851,870			3.11	%	88,455,079		786,932			3.52	%	102,385,936		818,371			3.16	%
FHLB stock	412,789		5,754			5.55	%	394,487		5,678			5.71	%	457,808		6,116			5.31	%
Total interest-earning assets	134,422,915		1,023,509			3.02	%	108,544,251		965,088			3.52	%	126,116,769		993,898			3.12	%
Noninterest-earning cash	452,927							362,139							433,852
Goodwill and other intangibles	228,315							256,614							230,051
Other assets	5,706,213							4,581,436							5,074,504
Total noninterest-earning assets	6,387,455							5,200,189							5,738,407
Total Assets	$	140,810,370						$	113,744,440						$	131,855,176
Liabilities and Equity:
Deposits:
Checking	$	73,876,676	2,214			0.01	%	$	51,333,186	8,777			0.07	%	$	64,895,753	2,413			0.01	%
Money market checking and savings	29,149,550		14,139			0.19	%	21,298,741		49,682			0.93	%	26,220,043		13,675			0.21	%
CDs	8,813,489		14,052			0.63	%	13,694,721		70,246			2.04	%	11,334,100		38,267			1.34	%
Total deposits	111,839,715		30,405			0.11	%	86,326,648		128,705			0.59	%	102,449,896		54,355			0.21	%
Borrowings:
Short-term borrowings	8,638		4			0.17	%	3,056,545		13,530			1.76	%	5,030		0			0.00	%
Long-term FHLB advances	13,298,478		52,873			1.58	%	11,488,043		62,146			2.15	%	14,739,238		62,201			1.68	%
Senior notes^(9)	995,892		6,034			2.42	%	497,610		3,351			2.69	%	995,373		6,032			2.42	%
Subordinated notes ^(9)	778,260		9,108			4.68	%	777,834		9,104			4.68	%	778,151		9,108			4.68	%
Total borrowings	15,081,268		68,019			1.80	%	15,820,032		88,131			2.21	%	16,517,792		77,341			1.86	%
Total interest-bearing liabilities	126,920,983		98,424			0.31	%	102,146,680		216,836			0.84	%	118,967,688		131,696			0.44	%
Noninterest-bearing liabilities	2,341,078							2,093,561							2,082,793
Preferred equity	1,552,609							899,728							1,226,522
Common equity	9,995,700							8,604,471							9,578,173
Total Liabilities and Equity	$	140,810,370						$	113,744,440						$	131,855,176
Net interest spread ^(10)						2.71	%						2.68	%						2.68	%
Net interest income (fully taxable-equivalent basis) and net interest margin^(11)			$	925,085		2.73	%			$	748,252		2.73	%			$	862,202		2.71	%
Reconciliation of tax-equivalent net interest income to reported net interest income:
Tax-equivalent adjustment			(32,357		)					(28,134		)					(31,922		)
Net interest income, as reported			$	892,728						$	720,118						$	830,280

	Year Ended December 31,
	2020							2019 ^(4)
Average Balances, Yields and Rates	Average Balance		Interest Income/Expense ^(1)			Yields/ Rates		Average Balance		Interest Income/Expense ^(1)			Yields/ Rates
($ in thousands)
Assets:
Cash and cash equivalents	$	4,018,429	$	7,504		0.19	%	$	1,268,405	$	23,835		1.88	%
Investment securities:
U.S. Government-sponsored agency securities	193,246		4,957			2.56	%	818,000		24,066			2.94	%
Agency residential and commercial MBS	6,348,004		159,520			2.51	%	6,735,598		191,869			2.85	%
Other residential and commercial MBS	26,215		600			2.29	%	4,450		170			3.83	%
Municipal securities	12,066,413		510,825			4.23	%	9,218,509		409,127			4.44	%
Other investment securities^(3)	52,204		1,447			2.77	%	26,848		726			2.70	%
Total investment securities	18,686,082		677,349			3.62	%	16,803,405		625,958			3.73	%
Loans: ^(4)
Residential real estate ^(5)	55,885,085		1,676,247			3.00	%	44,655,754		1,465,364			3.28	%
Multifamily ^(6)	13,092,607		489,402			3.68	%	11,248,189		439,408			3.85	%
Commercial real estate	7,751,600		313,254			3.97	%	7,088,827		301,831			4.20	%
Multifamily/commercial construction	2,678,312		121,949			4.48	%	2,319,279		114,902			4.89	%
Business ^(7)	12,845,826		465,101			3.56	%	11,302,160		503,782			4.40	%
PPP	1,432,501		32,903			2.26	%	—		—			—	%
Other ^(8)	6,841,682		172,808			2.48	%	5,559,309		187,536			3.33	%
Total loans	100,527,613		3,271,664			3.23	%	82,173,518		3,012,823			3.64	%
FHLB stock	442,338		23,889			5.40	%	331,862		21,446			6.46	%
Total interest-earning assets	123,674,462		3,980,406			3.20	%	100,577,190		3,684,062			3.64	%
Noninterest-earning cash	438,893							347,065
Goodwill and other intangibles	231,084							266,062
Other assets	5,103,458							4,376,016
Total noninterest-earning assets	5,773,435							4,989,143
Total Assets	$	129,447,897						$	105,566,333
Liabilities and Equity:
Deposits:
Checking	$	62,938,940	16,186			0.03	%	$	48,097,161	30,318			0.06	%
Money market checking and savings	25,506,568		87,908			0.34	%	20,113,724		196,582			0.98	%
CDs	11,754,513		171,991			1.46	%	12,769,459		273,657			2.14	%
Total deposits	100,200,021		276,085			0.28	%	80,980,344		500,557			0.62	%
Borrowings:
Short-term borrowings	310,392		4,704			1.52	%	2,278,831		50,361			2.21	%
Long-term FHLB advances	14,330,041		250,031			1.74	%	9,738,767		209,816			2.15	%
Senior notes ^(9)	938,185		22,873			2.44	%	680,199		18,169			2.67	%
Subordinated notes ^(9)	778,099		36,428			4.68	%	777,681		36,409			4.68	%
Total borrowings	16,356,717		314,036			1.92	%	13,475,478		314,755			2.34	%
Total interest-bearing liabilities	116,556,738		590,121			0.51	%	94,455,822		815,312			0.86	%
Noninterest-bearing liabilities	2,130,829							1,859,115
Preferred equity	1,267,951							929,849
Common equity	9,492,379							8,321,547
Total Liabilities and Equity	$	129,447,897						$	105,566,333
Net interest spread ^(10)						2.69	%						2.78	%
Net interest income (fully taxable-equivalent basis) and net interest margin^(11)			$	3,390,285		2.72	%			$	2,868,750		2.83	%
Reconciliation of tax-equivalent net interest income to reported net interest income:
Tax-equivalent adjustment			(127,733		)					(104,583		)
Net interest income, as reported			$	3,262,552						$	2,764,167

__________

^(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) For comparability, the Bank has adjusted certain prior period loan amounts to conform to the current period presentation under CECL.

^(5) Includes single family, home equity lines of credit, and single family construction loans. Also includes single family loans held for sale.

^(6) Includes multifamily loans held for sale.

^(7) Includes capital call lines of credit, tax-exempt and other business loans.

^(8) Includes stock secured, other secured and unsecured loans.

^(9) Average balances include unamortized issuance discounts and costs. Interest expense includes amortization of issuance discounts and costs.

^(10) Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities.

^(11) Net interest margin represents net interest income on a fully taxable-equivalent basis divided by total average interest-earning assets.

	Quarter Ended December 31,								Quarter Ended September 30,			Year Ended December 31,
Operating Information	2020				2019				2020			2020			2019
($ in thousands, except per share amounts)
Net income to average assets ^(1)	0.84			%	0.86			%	0.88		%	0.82		%	0.88		%
Net income available to common shareholders to average common equity ^(1)	11.12			%	10.86			%	11.56		%	10.59		%	10.59		%
Net income available to common shareholders to average tangible common equity ^(1)	11.38			%	11.20			%	11.84		%	10.86		%	10.94		%
Dividends per common share	$	0.20			$	0.19			$	0.20		$	0.79		$	0.75
Dividend payout ratio	12.5			%	13.7			%	12.4		%	13.6		%	14.4		%
Efficiency ratio ^(2), (3)	61.6			%	63.7			%	60.7		%	61.9		%	64.2		%
Net loan charge-offs (recoveries)	$	(600	)		$	(1,060	)		$	1,687		$	2,387		$	4,634
Net loan charge-offs (recoveries) to average total loans ^(1)	(0.00		)	%	(0.00		)	%	0.01		%	0.00		%	0.01		%
Allowance for loan credit losses to:
Total loans	0.56			%	0.55			%	0.58		%	0.56		%	0.55		%
Nonaccrual loans	344.9			%	346.5			%	368.2		%	344.9		%	346.5		%
__________
^(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.
^(3) The provision for unfunded loan commitments is included in the provision for credit losses for 2020 periods. For 2019 periods, the provision for unfunded loan commitments is included in other noninterest expense.

	Quarter Ended December 31,						Quarter Ended September 30,			Year Ended December 31,
Effective Tax Rate	2020			2019			2020			2020			2019
Effective tax rate, prior to excess tax benefits and tax refund from an amended tax return	22.5		%	21.6		%	21.1		%	21.9		%	21.4		%
Excess tax benefits—stock options	—			(1.2	)		(0.1	)		(0.6	)		(2.9	)
Excess tax benefits—other stock awards	(0.4	)		(0.1	)		(0.1	)		(0.7	)		(0.6	)
Total excess tax benefits	(0.4	)		(1.3	)		(0.2	)		(1.3	)		(3.5	)
Tax refund from an amended tax return	—			—			(1.3	)		(0.4	)		—
Effective tax rate	22.1		%	20.3		%	19.6		%	20.2		%	17.9		%

Provision for Credit Losses	Quarter Ended December 31,				Quarter Ended September 30,		Year Ended December 31,
	2020		2019		2020		2020		2019
($ in thousands)
Debt securities held-to-maturity	$	1,186	$	—	$	333	$	2,233	$	—
Loans	29,672		9,579		22,437		142,977		61,690
Unfunded loan commitments ^(1)	4,208		—		5,768		11,881		—
Total provision	$	35,066	$	9,579	$	28,538	$	157,091	$	61,690
__________
^(1) The provision for unfunded loan commitments is included in the provision for credit losses for 2020 periods. For 2019 periods, the provision for unfunded loan commitments is included in other noninterest expense, which is not presented in this table.

	Quarter Ended December 31, 2020								Year Ended December 31, 2020
Allowance for Credit Losses	Debt Securities Held-to- Maturity		Loans		Unfunded Loan Commitments ^(1)		Total		Debt Securities Held-to- Maturity		Loans			Unfunded Loan Commitments ^(1)		Total
($ in thousands)
Balance at beginning of period ^(2)	$	5,716	$	604,747	$	23,370	$	633,833	$	4,669	$	494,429		$	15,697	$	514,795
Provision for credit losses	1,186		29,672		4,208		35,066		2,233		142,977			11,881		157,091
Net (charge-offs) recoveries	—		600		—		600		—		(2,387		)	—		(2,387		)
Balance at end of period	$	6,902	$	635,019	$	27,578	$	669,499	$	6,902	$	635,019		$	27,578	$	669,499
__________
^(1) The allowance for credit losses on unfunded loan commitments is included in other liabilities.
^(2) For the year ended December 31, 2020, represents the balance after the cumulative effect adjustment from the adoption of CECL.

	Quarter Ended December 31,						Quarter Ended September 30,			Year Ended December 31,
Mortgage Loan Sales	2020			2019			2020			2020			2019
($ in thousands)
Loans sold:
Flow sales:
Agency	$	152,210		$	34,519		$	44,118		$	232,912		$	85,945
Non-agency	—			7,717			—			31,870			50,983
Total flow sales	152,210			42,236			44,118			264,782			136,928
Bulk sales:
Non-agency	—			—			235,732			673,401			152,119
Securitizations	—			—			—			300,116			—
Total loans sold	$	152,210		$	42,236		$	279,850		$	1,238,299		$	289,047
Gain on sale of loans:
Amount ^(1)	$	2,412		$	69		$	13,797		$	16,987		$	535
Gain as a percentage of loans sold ^(1)	1.58		%	0.16		%	4.93		%	1.37		%	0.19		%
__________
^(1) The gain for the quarter ended September 30, 2020 and full year 2020 included $10.3 million related to realized discounts on previously purchased loans when these loans were sold. Excluding these discounts of $10.3 million, the gain as a percentage of loans sold was 1.24% and 0.54% for the quarter ended September 30, 2020 and full year 2020, respectively.

	Quarter Ended December 31,				Quarter Ended September 30,		Year Ended December 31,
Loan Originations	2020		2019 ^(1)		2020		2020 ^(2)		2019 ^(1)
($ in thousands)
Single family	$	7,777,589	$	5,275,965	$	6,813,850	$	23,985,959	$	16,405,784
Home equity lines of credit	619,257		456,150		432,443		1,904,945		1,524,031
Single family construction	223,909		133,368		186,833		639,222		588,429
Multifamily	1,016,575		1,214,394		955,951		3,700,649		3,320,158
Commercial real estate	437,947		401,084		193,228		1,413,716		1,710,820
Multifamily/commercial construction	303,054		340,650		245,220		1,300,609		1,175,922
Capital call lines of credit	3,854,094		1,708,006		1,803,907		9,448,577		7,171,710
Tax-exempt	305,826		52,550		328,711		918,610		287,020
Other business	771,484		512,954		243,788		2,549,308		1,621,666
PPP	—		—		—		1,981,797		—
Stock secured	669,840		650,240		685,250		2,467,066		1,769,385
Other secured	412,902		170,231		189,386		1,374,842		1,011,232
Unsecured	312,809		308,360		159,379		998,346		1,377,319
Total loans originated	$	16,705,286	$	11,223,952	$	12,237,946	$	52,683,646	$	37,963,476
__________
^(1) For comparability, the Bank has adjusted certain prior period amounts to conform to the current period presentation under CECL.
^(2) Excluding PPP loan originations, total loan originations were $50.7 billion for the year ended December 31, 2020.

	As of
Asset Quality Information	December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019
($ in thousands)
Nonperforming assets:
Nonaccrual loans	$	184,132		$	164,247		$	164,930		$	125,418		$	143,181
Other real estate owned	—			—			1,071			1,071			—
Total nonperforming assets	$	184,132		$	164,247		$	166,001		$	126,489		$	143,181
Nonperforming assets to total assets	0.13		%	0.12		%	0.13		%	0.10		%	0.12		%
Accruing loans 90 days or more past due	$	—		$	935		$	3,764		$	—		$	—
Restructured accruing loans	$	11,253		$	11,378		$	11,501		$	13,418		$	13,287

	December 31, 2020
COVID-19 Loan Modifications ^(1), (2), (3), (4), (5)	Unpaid Principal Balance		Deferred Interest ^(6)		LTV ^(7)		Average Loan Size		Number of Loans
($ in millions)
Single family	$	407	$	5	63	%	$	1.2	354
Home equity lines of credit	11		—		55	%	$	0.4	25
Single family construction	2		—		75	%	$	2.0	1
Multifamily	291		1		53	%	$	5.6	52
Commercial real estate	297		1		50	%	$	5.5	54
Multifamily/commercial construction	35		—		35	%	$	8.9	4
Capital call lines of credit	—		—		n/a		$	—	—
Tax-exempt	150		—		n/a		$	30.0	5
Other business	59		—		n/a		$	1.5	39
Stock secured	—		—		n/a		$	—	—
Other secured	3		—		n/a		$	0.3	11
Unsecured ^(8)	15		—		n/a		$	0.1	153
Total	$	1,270	$	7					698
__________
^(1) COVID-19 loan modifications are not classified as troubled debt restructurings.
^(2) Includes 164 loans totaling $222 million that have completed their deferral period, but for which a regular payment is not yet due.
^(3) Includes 269 loans totaling $504 million that received additional relief beyond their initial modification period.
^(4) Excludes loans that have completed their deferral period and returned to a regular payment schedule or are no longer outstanding. As of December 31, 2020, $3.1 billion of loans have completed their deferral period or are no longer outstanding, and 99% of the outstanding loans were current.
^(5) Loan modifications requested by borrowers that were in process but not yet completed as of December 31, 2020 totaled $53 million for initial relief, and $39 million for additional relief beyond the initial modification period.
^(6) Represents interest payments not made during the deferral period through December 31, 2020.
^(7) Weighted average loan-to-value (“LTV”) ratios for real estate secured loans are based on appraised value at the time of origination.
^(8) Consists of household debt refinance loans.

	December 31, 2020
Loan Industry Information	Unpaid Principal Balance		LTV		Average Loan Size		Number of Loans	Personal Guarantee %
($ in millions)
Retail	$	1,831	49	%	$	2.7	703	77	%
Hotel	416		48	%	$	6.6	65	72	%
Restaurant ^(1)	219		49	%	$	1.1	210	93	%
Total ^(2)	$	2,466					978
__________
^(1) Approximately 70% of loans to restaurants are real estate secured.
^(2) Amounts in the table above exclude $43 million of loans to hotels and $132 million of loans to restaurants under the PPP.

	As of
Loan Servicing Portfolio	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
($ in millions)
Loans serviced for investors	$	7,094	$	7,799	$	8,316	$	9,203	$	9,298

Common Shares, Book Value per Common Share and Tangible Book Value per Common Share	As of
	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
(in thousands, except per share amounts)
Number of shares of common stock outstanding	174,124		172,188		172,094		171,395		168,621
Book value per common share	$	58.61	$	56.33	$	54.80	$	53.76	$	51.63
Tangible book value per common share	$	57.30	$	55.00	$	53.46	$	52.40	$	50.24

	As of
Capital Ratios	December 31, 2020 ^(1), (2)			September 30, 2020 ^(2)			June 30, 2020 ^(2)			March 31, 2020 ^(2)			December 31, 2019
Tier 1 leverage ratio (Tier 1 capital to average assets)	8.14		%	8.38		%	8.15		%	8.46		%	8.39		%
Common Equity Tier 1 capital to risk-weighted assets	9.67		%	9.78		%	9.80		%	9.87		%	9.86		%
Tier 1 capital to risk-weighted assets	11.18		%	11.50		%	11.04		%	11.14		%	11.21		%
Total capital to risk-weighted assets	12.55		%	12.94		%	12.49		%	12.62		%	12.73		%
Regulatory Capital ^(3)
($ in thousands)
Common Equity Tier 1 capital	$	9,894,870		$	9,375,688		$	9,103,771		$	8,887,905		$	8,371,192
Tier 1 capital	$	11,439,870		$	11,020,688		$	10,248,771		$	10,032,905		$	9,516,192
Total capital	$	12,842,344		$	12,396,304		$	11,604,141		$	11,365,654		$	10,802,209
Assets ^(3)
($ in thousands)
Average assets	$	140,493,283		$	131,517,445		$	125,690,830		$	118,626,842		$	113,403,507
Risk-weighted assets	$	102,321,489		$	95,823,385		$	92,870,859		$	90,072,400		$	84,885,943
__________
^(1) Ratios and amounts as of December 31, 2020 are preliminary.
^(2) In accordance with the CECL Capital Rule, the Bank elected to delay the estimated impact of CECL on its regulatory capital and risk-weighted assets over a five-year transition period ending December 31, 2024. Ratios and amounts for 2020 periods have been adjusted to exclude the following impacts attributed to the adoption of CECL: decreases in retained earnings, increases in allowance for credit losses on loans, held-to-maturity debt securities and unfunded loan commitments, decreases in average assets, and increases in risk-weighted assets.
^(3) As defined by regulatory capital rules.

	As of
Wealth Management Assets	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		December 31, 2019
($ in millions)
First Republic Investment Management	$	83,596	$	74,661	$	68,124	$	60,056	$	66,029
Brokerage and investment:
Brokerage	88,059		76,769		70,178		60,189		68,807
Money market mutual funds	9,003		4,416		5,933		6,893		4,268
Total brokerage and investment	97,062		81,185		76,111		67,082		73,075
Trust Company:
Trust	9,910		8,687		7,905		7,288		7,121
Custody	3,889		3,651		3,646		3,461		4,818
Total Trust Company	13,799		12,338		11,551		10,749		11,939
Total Wealth Management Assets	$	194,457	$	168,184	$	155,786	$	137,887	$	151,043