Business Wire | Apr 14, 2021 07:01AM EDT

First Republic Reports First Quarter 2021 Results

Apr. 14, 2021

SAN FRANCISCO--(BUSINESS WIRE)--Apr. 14, 2021--First Republic Bank (NYSE: FRC) today announced financial results for the quarter ended March 31, 2021.

"First Republic is off to a very strong start in 2021, driven by strong growth in loans, deposits and wealth management assets," said Jim Herbert, Founder, Chairman and CEO. "Our client-centric business model continues to perform very well."

Quarterly Highlights

Financial Results

- Year-over-year:

- Revenues were $1.1 billion, up 23.8%.

- Net interest income was $938.8 million, up 24.8%.

- Net income was $334.8 million, up 53.1%.

- Diluted earnings per share of $1.79, up 49.2%.

- Tangible book value per share was $59.98, up 14.5%.

- Loan originations totaled $15.7 billion, our strongest first quarter ever.

- Net interest margin was 2.67%, compared to 2.73% for the prior quarter.

- Efficiency ratio was 63.5% for both the first quarter of 2021 and 2020.

- Increased quarterly dividend by 10% to $0.22 per share.

Continued Capital and Credit Strength

- Tier 1 leverage ratio was 8.32%.

- Nonperforming assets were at a low 11 basis points of total assets.

- Net charge-offs were only $487,000, or less than 1 basis point of average loans.

Continued Franchise Development

- Year-over-year:

- Loans totaled $118.1 billion, up 23.9%, excluding loans held for sale.

- Deposits were $127.9 billion, up 36.5%.

- Wealth management assets were $218.9 billion, up 58.8%.

- Wealth management revenues were $159.6 million, up 18.7%.

"We're pleased with the very strong growth of revenue and earnings per share during the first quarter," said Mike Roffler, Chief Financial Officer. "We also increased the quarterly dividend for the 10th consecutive year and accessed the capital markets twice during the quarter, which contributed to the 25% increase in total equity year-over-year."

Quarterly Cash Dividend of $0.22 per Share

The Bank announced an increase of $0.02 in its quarterly cash dividend to $0.22 per share of common stock, our 10th consecutive year of quarterly dividend increases. The first quarter dividend is payable on May 13, 2021 to shareholders of record as of April 29, 2021.

Strong Asset Quality

Credit quality remains strong. Nonperforming assets were only 11 basis points of total assets at March 31, 2021. The Bank had modest net loan charge-offs of only $487,000 for the quarter.

During the first quarter, the Bank recorded a reversal of provision for credit losses of $14.6 million, which was primarily driven by a substantially improved economic outlook since year-end 2020 and the significant resumption of regular, consistent loan payments on COVID-19 loan modifications following the end of the modification period.

Continued Capital Strength and Book Value Growth

The Bank's Tier 1 leverage ratio was 8.32%at March 31, 2021, compared to 8.14% at December 31, 2020.

During the first quarter, the Bank issued $747.5 million of 4.250% Noncumulative Perpetual Preferred Stock, which qualifies as Tier 1 capital, and redeemed all of the outstanding shares of its 5.50% Noncumulative Perpetual Preferred Stock, which totaled $150.0 million.

In addition, the Bank sold 2,012,500 new shares of common stock in an underwritten public offering, which added approximately $331.3 million to common equity.

Total common stock sold and preferred stock issued, net of preferred stock redeemed, added approximately $914.2 million of Tier 1 capital in the quarter and contributed to the 25% increase in total equity year-over-year.

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

Book value per common share at March 31, 2021 was $61.26, up 14.0% from a year ago. Tangible book value per common share at March 31, 2021 was $59.98, up 14.5% from a year ago.

Continued Franchise Development

Loan Originations

Loan originations were $15.7 billion for the quarter, up 52.4% from the same quarter a year ago, primarily due to increases in single family and business lending, as well as loan originations under the Small Business Administration's Paycheck Protection Program ("PPP").

Single family loan originations were 44% of the total volume for the quarter and had a weighted average loan-to-value ratio of 57%. In addition, multifamily and commercial real estate loans originated were 7% of total originations, and had a weighted average loan-to-value ratio of 49%.

Loans totaled $118.1 billion at March 31, 2021, up 23.9% compared to a year ago, excluding loans held for sale, primarily due to increases in single family loans (71% of growth), business and multifamily loans, as well as PPP loans.

COVID-19 Loan Modifications Continue to Decline

Remaining loan modifications to those borrowers experiencing financial challenges as a result of COVID-19 (not classified as troubled debt restructurings) totaled $967 million, and were less than 1% of total loans as of March 31, 2021, down from a peak of approximately 4% of total loans as of June 30, 2020.

The Bank has limited loan 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 March 31, 2021, only 2.1% of total loans. As of March 31, 2021, the Bank had modifications of these portfolios totaling $141 million, only 0.1% of total loans.

Deposit Growth

Total deposits increased to $127.9 billion, up 36.5% compared to a year ago, and had an average rate paid of 9 basis points during the quarter.

At March 31, 2021, checking deposit balances were 67.5% of total deposits.

Investments

Total investment securities at March 31, 2021 were $21.7 billion, a 17.0% increase compared to the prior quarter and a 15.4% increase compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $23.3 billion at March 31, 2021, and represented 15.3% of quarterly average total assets.

Wealth Management

Total wealth management assets were $218.9 billion at March 31, 2021, up 12.6% compared to the prior quarter and up 58.8% 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 $159.6 million for the quarter, up 18.7% compared to last year's first quarter. Such revenues represented 14.1% of the Bank's total revenues for the quarter.

Wealth management assets at March 31, 2021 included investment management assets of $90.8 billion, brokerage assets and money market mutual funds of $112.9 billion, and trust and custody assets of $15.2 billion.

Income Statement and Key Ratios

Revenue Growth

Total revenues were $1.1 billion for the quarter, up 23.8% compared to the first quarter a year ago.

Net Interest Income Growth

Net interest income was $938.8 million for the quarter, up 24.8% compared to the first quarter a year ago. The increase in net interest income resulted primarily from growth in average interest-earning assets, partially offset by a decrease in net interest margin.

Net Interest Margin

The net interest margin declined to 2.67% in the first quarter, from 2.73% in the prior quarter. The decrease was primarily due to higher average cash balances during the quarter.

Noninterest Income

Noninterest income was $195.9 million for the quarter, up 19.4% compared to the first quarter a year ago. The increase was primarily driven by higher wealth management fees and higher income from investments in life insurance.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $720.4 million for the quarter, up 23.8% compared to the first quarter a year ago. The increase was primarily due to increased salaries and benefits and information systems costs from the continued investments in the expansion of the franchise, and higher professional fees.

The efficiency ratio was 63.5% for both the first quarter of 2021 and 2020.

Income Taxes

The Bank's effective tax rate for the first quarter of 2021 was 21.9%, compared to 22.1% for the prior quarter, and 19.5% for the first quarter a year ago. The increase from a year ago was primarily the result of lower excess tax benefits from a decrease in stock option exercises by employees, and growth in pre-tax income greater than interest income on tax-exempt municipal securities.

Conference Call Details

First Republic Bank's first quarter 2021 earnings conference call is scheduled for April 14, 2021 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (800) 458-4121 and provide confirmation code 8396045 approximately 15 minutes prior to the start time (to allow time for registration). International callers should dial +1 (856) 344-9290 and provide 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 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 April 14, 2021, at 11:00 a.m. PT / 2:00 p.m. ET, through April 21, 2021, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (888) 203-1112 and use confirmation code 8396045#. 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 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, wildfires, 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 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 Quarter Ended Ended March 31, December 31,

(in thousands, except per share 2021 2020 2020amounts)

Interest income:

Loans $ 873,170 $ 796,652 $ 845,150

Investments 140,711 148,569 138,429

Other 5,189 6,960 5,754

Cash and cash equivalents 2,894 3,940 1,819

Total interest income 1,021,964 956,121 991,152



Interest expense:

Deposits 27,571 118,845 30,405

Borrowings 55,611 85,144 68,019

Total interest expense 83,182 203,989 98,424



Net interest income 938,782 752,132 892,728

Provision (reversal of provision) (14,608 ) 62,370 35,066 for credit losses

Net interest income after provision(reversal of provision) for credit 953,390 689,762 857,662 losses



Noninterest income:

Investment management fees 119,042 99,296 114,287

Brokerage and investment fees 14,564 15,826 11,489

Insurance fees 3,074 2,157 5,569

Trust fees 5,731 4,976 5,366

Foreign exchange fee income 17,167 12,184 14,688

Deposit fees 6,169 6,597 6,115

Loan and related fees 7,485 6,114 7,167

Loan servicing fees, net 1,488 1,652 1,248

Gain on sale of loans 309 1,925 2,412

Gain on investment securities 655 2,628 88

Income from investments in life 16,549 8,160 16,997 insurance

Other income 3,618 2,529 2,211

Total noninterest income 195,851 164,044 187,637



Noninterest expense:

Salaries and employee benefits 463,404 361,204 415,767

Information systems 83,516 70,715 79,331

Occupancy 57,549 53,641 56,627

Professional fees 21,254 13,117 18,015

Advertising and marketing 12,633 11,843 13,762

FDIC assessments 11,900 10,185 11,650

Other expenses 70,140 61,312 70,892

Total noninterest expense 720,396 582,017 666,044



Income before provision for income 428,845 271,789 379,255 taxes

Provision for income taxes 94,012 53,103 83,695

Net income 334,833 218,686 295,560

Dividends on preferred stock 18,525 13,020 16,072

Net income available to common $ 316,308 $ 205,666 $ 279,488 shareholders



Basic earnings per common share $ 1.81 $ 1.20 $ 1.61

Diluted earnings per common share $ 1.79 $ 1.20 $ 1.60



Weighted average shares-basic 174,820 170,835 173,111

Weighted average shares-diluted 176,951 172,039 174,708

CONSOLIDATED BALANCE SHEETS

As of

($ in thousands)

March 31,2021

December 31,2020

March 31,2020

ASSETS

Cash and cash equivalents

$

8,889,492

$

5,094,754

$

3,949,378

Debt securities available-for-sale

2,428,833

1,906,315

1,243,798

Debt securities held-to-maturity

19,240,358

16,610,212

17,534,920

Less: Allowance for credit losses

(8,024

)

(6,902

)

(5,087

)

Debt securities held-to-maturity, net

19,232,334

16,603,310

17,529,833

Equity securities (fair value)

21,221

20,566

19,575

Loans:

Single family

65,178,442

61,370,246

49,063,193

Home equity lines of credit

2,392,314

2,449,533

2,703,919

Single family construction

841,962

787,854

779,239

Multifamily

14,141,208

13,768,957

12,823,392

Commercial real estate

8,065,262

8,018,158

7,715,266

Multifamily/commercial construction

2,101,119

2,024,420

1,839,445

Capital call lines of credit

8,653,802

8,149,946

7,512,231

Tax-exempt

3,454,471

3,365,572

3,087,751

Other business

3,679,420

3,340,048

3,094,922

PPP

2,142,253

1,841,376

-

Stock secured

2,519,637

2,518,338

1,919,971

Other secured

1,862,529

1,818,550

1,531,705

Unsecured

3,050,999

3,113,267

3,214,028

Total loans

118,083,418

112,566,265

95,285,062

Allowance for credit losses

(620,825

)

(635,019

)

(541,906

)

Loans, net

117,462,593

111,931,246

94,743,156

Loans held for sale

-

20,679

354,873

Investments in life insurance

2,328,844

2,061,362

1,460,909

Tax credit investments

1,127,465

1,131,905

1,106,693

Premises, equipment and leasehold improvements, net

412,331

403,482

392,953

Goodwill and other intangible assets

225,925

227,512

232,985

Other real estate owned

1,334

-

1,071

Other assets

3,667,588

3,101,003

2,879,705

Total Assets

$

155,797,960

$

142,502,134

$

123,914,929

LIABILITIES AND EQUITY

Liabilities:

Deposits:

Noninterest-bearing checking

$

53,806,762

$

46,281,112

$

36,920,635

Interest-bearing checking

32,542,600

30,603,221

20,941,790

Money market checking

19,210,069

16,778,884

12,636,674

Money market savings and passbooks

14,097,001

12,584,522

9,052,690

Certificates of deposit

8,250,521

8,681,061

14,140,550

Total Deposits

127,906,953

114,928,800

93,692,339

Long-term FHLB advances

10,505,000

11,755,000

16,250,000

Senior notes

996,668

996,145

994,742

Subordinated notes

778,423

778,313

777,990

Other liabilities

2,669,186

2,293,230

1,840,093

Total Liabilities

142,856,230

130,751,488

113,555,164

Shareholders' Equity:

Preferred stock

2,142,500

1,545,000

1,145,000

Common stock

1,763

1,741

1,714

Additional paid-in capital

5,191,932

4,834,172

4,543,650

Retained earnings

5,626,958

5,346,355

4,652,089

Accumulated other comprehensive income (loss)

(21,423

)

23,378

17,312

Total Shareholders' Equity

12,941,730

11,750,646

10,359,765

Total Liabilities and Shareholders' Equity

$

155,797,960

$

142,502,134

$

123,914,929

CONSOLIDATED BALANCE SHEETS

As of

($ in thousands) March 31, December 31, March 31, 2021 2020 2020

ASSETS

Cash and cash $ 8,889,492 $ 5,094,754 $ 3,949,378 equivalents

Debt securities 2,428,833 1,906,315 1,243,798 available-for-sale



Debt securities 19,240,358 16,610,212 17,534,920 held-to-maturity

Less: Allowance for (8,024 ) (6,902 ) (5,087 ) credit losses

Debt securitiesheld-to-maturity, 19,232,334 16,603,310 17,529,833 net



Equity securities 21,221 20,566 19,575 (fair value)



Loans:

Single family 65,178,442 61,370,246 49,063,193

Home equity lines 2,392,314 2,449,533 2,703,919 of credit

Single family 841,962 787,854 779,239 construction

Multifamily 14,141,208 13,768,957 12,823,392

Commercial real 8,065,262 8,018,158 7,715,266 estate

Multifamily/commercial 2,101,119 2,024,420 1,839,445 construction

Capital call lines 8,653,802 8,149,946 7,512,231 of credit

Tax-exempt 3,454,471 3,365,572 3,087,751

Other business 3,679,420 3,340,048 3,094,922

PPP 2,142,253 1,841,376 -

Stock secured 2,519,637 2,518,338 1,919,971

Other secured 1,862,529 1,818,550 1,531,705

Unsecured 3,050,999 3,113,267 3,214,028

Total loans 118,083,418 112,566,265 95,285,062

Allowance for (620,825 ) (635,019 ) (541,906 ) credit losses

Loans, net 117,462,593 111,931,246 94,743,156



Loans held for sale - 20,679 354,873

Investments in life 2,328,844 2,061,362 1,460,909 insurance

Tax credit 1,127,465 1,131,905 1,106,693 investments

Premises, equipmentand leasehold 412,331 403,482 392,953 improvements, net

Goodwill and other 225,925 227,512 232,985 intangible assets

Other real estate 1,334 - 1,071 owned

Other assets 3,667,588 3,101,003 2,879,705

Total Assets $ 155,797,960 $ 142,502,134 $ 123,914,929



LIABILITIES AND EQUITY

Liabilities:

Deposits:

Noninterest-bearing $ 53,806,762 $ 46,281,112 $ 36,920,635 checking

Interest-bearing 32,542,600 30,603,221 20,941,790 checking

Money market 19,210,069 16,778,884 12,636,674 checking

Money marketsavings and 14,097,001 12,584,522 9,052,690 passbooks

Certificates of 8,250,521 8,681,061 14,140,550 deposit

Total Deposits 127,906,953 114,928,800 93,692,339



Long-term FHLB 10,505,000 11,755,000 16,250,000 advances

Senior notes 996,668 996,145 994,742

Subordinated notes 778,423 778,313 777,990

Other liabilities 2,669,186 2,293,230 1,840,093

Total Liabilities 142,856,230 130,751,488 113,555,164



Shareholders' Equity:

Preferred stock 2,142,500 1,545,000 1,145,000

Common stock 1,763 1,741 1,714

Additional paid-in 5,191,932 4,834,172 4,543,650 capital

Retained earnings 5,626,958 5,346,355 4,652,089

Accumulated othercomprehensive (21,423 ) 23,378 17,312 income (loss)

Total Shareholders' 12,941,730 11,750,646 10,359,765 Equity

Total Liabilitiesand Shareholders' $ 155,797,960 $ 142,502,134 $ 123,914,929 Equity

Quarter Ended March 31,

Quarter Ended December 31,

2021

2020

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

$

11,448,652

$

2,894

0.10

%

$

1,853,579

$

3,940

0.85

%

$

6,965,598

$

1,819

0.10

%

Investment securities:

U.S. Government-sponsored agency securities

93,889

339

1.45

%

307,449

2,207

2.87

%

50,000

196

1.57

%

Agency residential and commercial MBS

5,625,748

30,536

2.17

%

6,746,664

47,186

2.80

%

5,786,312

32,237

2.23

%

Other residential and commercial MBS

32,992

154

1.87

%

3,834

32

3.33

%

35,437

184

2.08

%

Municipal securities

13,349,101

134,990

4.04

%

11,358,749

122,542

4.32

%

12,638,677

130,938

4.14

%

Other investment securities (3)

429,289

2,568

2.39

%

43,783

320

2.92

%

76,272

511

2.68

%

Total investment securities

19,531,019

168,587

3.45

%

18,460,479

172,287

3.73

%

18,586,698

164,066

3.53

%

Loans:

Residential real estate (4)

65,458,977

469,010

2.87

%

51,300,013

404,982

3.16

%

61,523,322

445,028

2.89

%

Multifamily (5)

13,922,237

122,829

3.53

%

12,565,723

118,944

3.74

%

13,596,444

125,042

3.60

%

Commercial real estate

8,032,825

77,879

3.88

%

7,574,573

78,609

4.11

%

7,909,682

78,599

3.89

%

Multifamily/commercial construction

2,867,284

31,100

4.34

%

2,550,647

30,285

4.70

%

2,788,321

31,588

4.43

%

Business (6)

15,076,564

123,741

3.28

%

12,390,386

122,971

3.93

%

13,382,558

115,809

3.39

%

PPP

1,989,987

15,766

3.17

%

-

-

-

%

2,004,127

14,419

2.82

%

Other (7)

7,347,624

39,685

2.16

%

6,453,056

47,572

2.92

%

7,253,376

41,385

2.23

%

Total loans

114,695,498

880,010

3.07

%

92,834,398

803,363

3.44

%

108,457,830

851,870

3.11

%

FHLB stock

344,990

5,189

6.10

%

406,974

6,960

6.88

%

412,789

5,754

5.55

%

Total interest-earning assets

146,020,159

1,056,680

2.90

%

113,555,430

986,550

3.46

%

134,422,915

1,023,509

3.02

%

Noninterest-earning cash

413,625

443,255

452,927

Goodwill and other intangibles

226,683

234,078

228,315

Other assets

6,091,492

4,721,313

5,706,213

Total noninterest-earning assets

6,731,800

5,398,646

6,387,455

Total Assets

$

152,751,959

$

118,954,076

$

140,810,370

Liabilities and Equity:

Deposits:

Checking

$

83,679,569

2,074

0.01

%

$

53,863,519

8,432

0.06

%

$

73,876,676

2,214

0.01

%

Money market checking

18,888,949

7,644

0.16

%

12,724,620

29,302

0.93

%

16,890,334

8,214

0.19

%

Money market savings and passbooks

13,640,388

6,310

0.19

%

9,750,489

15,567

0.64

%

12,259,216

5,925

0.19

%

CDs

8,413,083

11,543

0.56

%

14,185,945

65,544

1.86

%

8,813,489

14,052

0.63

%

Total deposits

124,621,989

27,571

0.09

%

90,524,573

118,845

0.53

%

111,839,715

30,405

0.11

%

Borrowings:

Short-term borrowings

6

-

0.18

%

1,231,827

4,700

1.53

%

8,638

4

0.17

%

Long-term FHLB advances

11,321,666

40,463

1.45

%

13,420,604

66,566

1.99

%

13,298,478

52,873

1.58

%

Senior notes (8)

996,412

6,038

2.42

%

765,308

4,773

2.49

%

995,892

6,034

2.42

%

Subordinated notes (8)

778,369

9,110

4.68

%

777,938

9,105

4.68

%

778,260

9,108

4.68

%

Total borrowings

13,096,453

55,611

1.72

%

16,195,677

85,144

2.11

%

15,081,268

68,019

1.80

%

Total interest-bearing liabilities

137,718,442

83,182

0.24

%

106,720,250

203,989

0.77

%

126,920,983

98,424

0.31

%

Noninterest-bearing liabilities

2,637,481

2,030,107

2,341,078

Preferred equity

1,963,583

1,145,000

1,552,609

Common equity

10,432,453

9,058,719

9,995,700

Total Liabilities and Equity

$

152,751,959

$

118,954,076

$

140,810,370

Net interest spread (9)

2.65

%

2.69

%

2.71

%

Net interest income (fully taxable-equivalent basis) and net interest margin (10)

$

973,498

2.67

%

$

782,561

2.74

%

$

925,085

2.73

%

Reconciliation of tax-equivalent net interest

income to reported net interest income:

Municipal securities tax-equivalent adjustment

(27,876

)

(23,718

)

(25,638

)

Business loans tax-equivalent adjustment

(6,840

)

(6,711

)

(6,719

)

Net interest income, as reported

$

938,782

$

752,132

$

892,728

Quarter Ended March 31, Quarter Ended December 31,

2021 2020 2020

Average Balances, Interest Yields Interest Yields Interest YieldsYields Average Income/ / Average Income/ / Average Income/ /and Rates Balance Expense Rates Balance Expense Rates Balance Expense Rates ^(1) ^(2) ^(1) ^(2) ^(1) ^(2)

($ in thousands)

Assets:

Cash and cash $ 11,448,652 $ 2,894 0.10 % $ 1,853,579 $ 3,940 0.85 % $ 6,965,598 $ 1,819 0.10 %equivalents

Investment securities:

U.S.Government-sponsored 93,889 339 1.45 % 307,449 2,207 2.87 % 50,000 196 1.57 %agency securities

Agency residential 5,625,748 30,536 2.17 % 6,746,664 47,186 2.80 % 5,786,312 32,237 2.23 %and commercial MBS

Other residential 32,992 154 1.87 % 3,834 32 3.33 % 35,437 184 2.08 %and commercial MBS

Municipal securities 13,349,101 134,990 4.04 % 11,358,749 122,542 4.32 % 12,638,677 130,938 4.14 %

Other investment 429,289 2,568 2.39 % 43,783 320 2.92 % 76,272 511 2.68 %securities^ (3)

Total investment 19,531,019 168,587 3.45 % 18,460,479 172,287 3.73 % 18,586,698 164,066 3.53 %securities



Loans:

Residential real 65,458,977 469,010 2.87 % 51,300,013 404,982 3.16 % 61,523,322 445,028 2.89 %estate ^(4)

Multifamily ^(5) 13,922,237 122,829 3.53 % 12,565,723 118,944 3.74 % 13,596,444 125,042 3.60 %

Commercial real 8,032,825 77,879 3.88 % 7,574,573 78,609 4.11 % 7,909,682 78,599 3.89 %estate

Multifamily/commercial 2,867,284 31,100 4.34 % 2,550,647 30,285 4.70 % 2,788,321 31,588 4.43 %construction

Business ^(6) 15,076,564 123,741 3.28 % 12,390,386 122,971 3.93 % 13,382,558 115,809 3.39 %

PPP 1,989,987 15,766 3.17 % - - - % 2,004,127 14,419 2.82 %

Other ^(7) 7,347,624 39,685 2.16 % 6,453,056 47,572 2.92 % 7,253,376 41,385 2.23 %

Total loans 114,695,498 880,010 3.07 % 92,834,398 803,363 3.44 % 108,457,830 851,870 3.11 %

FHLB stock 344,990 5,189 6.10 % 406,974 6,960 6.88 % 412,789 5,754 5.55 %

Totalinterest-earning 146,020,159 1,056,680 2.90 % 113,555,430 986,550 3.46 % 134,422,915 1,023,509 3.02 %assets



Noninterest-earning 413,625 443,255 452,927 cash

Goodwill and other 226,683 234,078 228,315 intangibles

Other assets 6,091,492 4,721,313 5,706,213

Totalnoninterest-earning 6,731,800 5,398,646 6,387,455 assets

Total Assets $ 152,751,959 $ 118,954,076 $ 140,810,370



Liabilities and Equity:

Deposits:

Checking $ 83,679,569 2,074 0.01 % $ 53,863,519 8,432 0.06 % $ 73,876,676 2,214 0.01 %

Money market 18,888,949 7,644 0.16 % 12,724,620 29,302 0.93 % 16,890,334 8,214 0.19 %checking

Money market savings 13,640,388 6,310 0.19 % 9,750,489 15,567 0.64 % 12,259,216 5,925 0.19 %and passbooks

CDs 8,413,083 11,543 0.56 % 14,185,945 65,544 1.86 % 8,813,489 14,052 0.63 %

Total deposits 124,621,989 27,571 0.09 % 90,524,573 118,845 0.53 % 111,839,715 30,405 0.11 %



Borrowings:

Short-term 6 - 0.18 % 1,231,827 4,700 1.53 % 8,638 4 0.17 %borrowings

Long-term FHLB 11,321,666 40,463 1.45 % 13,420,604 66,566 1.99 % 13,298,478 52,873 1.58 %advances

Senior notes^ (8) 996,412 6,038 2.42 % 765,308 4,773 2.49 % 995,892 6,034 2.42 %

Subordinated notes ^ 778,369 9,110 4.68 % 777,938 9,105 4.68 % 778,260 9,108 4.68 %(8)

Total borrowings 13,096,453 55,611 1.72 % 16,195,677 85,144 2.11 % 15,081,268 68,019 1.80 %

Totalinterest-bearing 137,718,442 83,182 0.24 % 106,720,250 203,989 0.77 % 126,920,983 98,424 0.31 %liabilities



Noninterest-bearing 2,637,481 2,030,107 2,341,078 liabilities

Preferred equity 1,963,583 1,145,000 1,552,609

Common equity 10,432,453 9,058,719 9,995,700

Total Liabilities $ 152,751,959 $ 118,954,076 $ 140,810,370 and Equity



Net interest spread 2.65 % 2.69 % 2.71 %^(9)

Net interest income(fullytaxable-equivalent $ 973,498 2.67 % $ 782,561 2.74 % $ 925,085 2.73 %basis) and netinterest margin^(10)



Reconciliation of tax-equivalent netinterest income to reported net interestincome:

Municipal securities tax-equivalent (27,876 ) (23,718 ) (25,638 ) adjustment

Business loans tax-equivalent (6,840 ) (6,711 ) (6,719 ) adjustment

Net interest income, as reported $ 938,782 $ 752,132 $ 892,728

__________

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

(5) Includes multifamily loans held for sale.

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

(7) Includes stock secured, other secured and unsecured loans.

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

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

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

__________

^(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 equitysecurities.

^(4) Includes single family, home equity lines of credit, and single familyconstruction loans. Also includes single family loans held for sale.

^(5) Includes multifamily loans held for sale.

^(6) Includes capital call lines of credit, tax-exempt and other businessloans.

^(7) Includes stock secured, other secured and unsecured loans.

^(8) Average balances include unamortized issuance discounts and costs.Interest expense includes amortization of issuance discounts and costs.

^(9) Net interest spread represents the average yield on interest-earningassets less the average rate on interest-bearing liabilities.

^(10) Net interest margin represents net interest income on a fullytaxable-equivalent basis divided by total average interest-earning assets.

Quarter Ended March 31,

Quarter Ended December 31,

Operating Information

2021

2020

2020

($ in thousands, except per share amounts)

Net income to average assets (1)

0.89

%

0.74

%

0.84

%

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

12.30

%

9.13

%

11.12

%

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

12.57

%

9.37

%

11.38

%

Dividends per common share

$

0.20

$

0.19

$

0.20

Dividend payout ratio

11.2

%

15.9

%

12.5

%

Efficiency ratio (2)

63.5

%

63.5

%

61.6

%

Net loan charge-offs (recoveries)

$

487

$

202

$

(600

)

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

0.00

%

0.00

%

(0.00

)

%

Allowance for loan credit losses to:

Total loans

0.53

%

0.57

%

0.56

%

Nonaccrual loans

359.3

%

432.1

%

344.9

%

__________

(1) Ratios are annualized.

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

Quarter Quarter Ended Ended March 31, December 31,

Operating Information 2021 2020 2020

($ in thousands, except per share amounts)

Net income to average assets ^(1) 0.89 % 0.74 % 0.84 %

Net income available to common shareholders 12.30 % 9.13 % 11.12 %to average common equity ^(1)

Net income available to common shareholders 12.57 % 9.37 % 11.38 %to average tangible common equity ^(1)

Dividends per common share $ 0.20 $ 0.19 $ 0.20

Dividend payout ratio 11.2 % 15.9 % 12.5 %

Efficiency ratio ^(2) 63.5 % 63.5 % 61.6 %



Net loan charge-offs (recoveries) $ 487 $ 202 $ (600 )

Net loan charge-offs (recoveries) to average 0.00 % 0.00 % (0.00 ) %total loans ^(1)



Allowance for loan credit losses to:

Total loans 0.53 % 0.57 % 0.56 %

Nonaccrual loans 359.3 % 432.1 % 344.9 %

__________

^(1) Ratios are annualized.

^(2) Efficiency ratio is the ratio of noninterest expense to the sum of netinterest income and noninterest income.

Quarter Ended March 31,

Quarter Ended December 31,

Effective Tax Rate

2021

2020

2020

Effective tax rate, prior to excess tax benefits-stock awards

22.6

%

21.3

%

22.5

%

Excess tax benefits-stock awards

(0.7

)

(1.8

)

(0.4

)

Effective tax rate

21.9

%

19.5

%

22.1

%

Quarter Quarter Ended Ended March 31, December 31,

Effective Tax Rate 2021 2020 2020

Effective tax rate, prior to excess tax 22.6 % 21.3 % 22.5 %benefits-stock awards

Excess tax benefits-stock awards (0.7 ) (1.8 ) (0.4 )

Effective tax rate 21.9 % 19.5 % 22.1 %



Provision (Reversal of Provision) for Credit Losses

Quarter Ended March 31,

Quarter Ended December 31,

2021

2020

2020

($ in thousands)

Debt securities held-to-maturity

$

1,122

$

418

$

1,186

Loans

(13,707

)

47,679

29,672

Unfunded loan commitments

(2,023

)

14,273

4,208

Total provision (reversal of provision)

$

(14,608

)

$

62,370

$

35,066

Quarter Quarter Ended EndedProvision (Reversal of Provision) for March 31, DecemberCredit Losses 31,

2021 2020 2020

($ in thousands)

Debt securities held-to-maturity $ 1,122 $ 418 $ 1,186

Loans (13,707 ) 47,679 29,672

Unfunded loan commitments (2,023 ) 14,273 4,208

Total provision (reversal of provision) $ (14,608 ) $ 62,370 $ 35,066

Quarter Ended March 31,

Quarter Ended December 31,

Mortgage Loan Sales

2021

2020

2020

($ in thousands)

Loans sold:

Flow sales:

Agency

$

42,402

$

25,774

$

152,210

Non-agency

1,073

31,870

-

Total flow sales

43,475

57,644

152,210

Bulk sales:

Non-agency

-

437,669

-

Total loans sold

$

43,475

$

495,313

$

152,210

Gain on sale of loans:

Amount

$

309

$

1,925

$

2,412

Gain as a percentage of loans sold

0.71

%

0.39

%

1.58

%

Quarter Ended Quarter Ended March 31, December 31,

Mortgage Loan Sales 2021 2020 2020

($ in thousands)

Loans sold:

Flow sales:

Agency $ 42,402 $ 25,774 $ 152,210

Non-agency 1,073 31,870 -

Total flow sales 43,475 57,644 152,210



Bulk sales:

Non-agency - 437,669 -



Total loans sold $ 43,475 $ 495,313 $ 152,210



Gain on sale of loans:

Amount $ 309 $ 1,925 $ 2,412

Gain as a percentage of loans sold 0.71 % 0.39 % 1.58 %

Quarter Ended March 31,

Quarter Ended December 31,

Loan Originations

2021

2020

2020

($ in thousands)

Single family

$

6,902,192

$

3,519,336

$

7,777,589

Home equity lines of credit

623,661

395,508

619,257

Single family construction

224,504

109,162

223,909

Multifamily

791,070

781,303

1,016,575

Commercial real estate

313,991

451,858

437,947

Multifamily/commercial construction

310,824

620,921

303,054

Capital call lines of credit

3,131,317

2,385,229

3,854,094

Tax-exempt

213,967

100,019

305,826

Other business

1,025,154

619,779

771,484

PPP

688,948

-

-

Stock secured

710,038

592,560

669,840

Other secured

438,989

413,824

412,902

Unsecured

345,848

322,888

312,809

Total loans originated

$

15,720,503

$

10,312,387

$

16,705,286

Quarter Ended Quarter Ended March 31, December 31,

Loan Originations 2021 2020 2020

($ in thousands)

Single family $ 6,902,192 $ 3,519,336 $ 7,777,589

Home equity lines of credit 623,661 395,508 619,257

Single family construction 224,504 109,162 223,909

Multifamily 791,070 781,303 1,016,575

Commercial real estate 313,991 451,858 437,947

Multifamily/commercial 310,824 620,921 303,054 construction

Capital call lines of credit 3,131,317 2,385,229 3,854,094

Tax-exempt 213,967 100,019 305,826

Other business 1,025,154 619,779 771,484

PPP 688,948 - -

Stock secured 710,038 592,560 669,840

Other secured 438,989 413,824 412,902

Unsecured 345,848 322,888 312,809

Total loans originated $ 15,720,503 $ 10,312,387 $ 16,705,286

As of

Asset Quality Information

March 31,2021

December 31,2020

September 30,2020

June 30,2020

March 31,2020

($ in thousands)

Nonperforming assets:

Nonaccrual loans

$

172,794

$

184,132

$

164,247

$

164,930

$

125,418

Other real estate owned

1,334

-

-

1,071

1,071

Total nonperforming assets

$

174,128

$

184,132

$

164,247

$

166,001

$

126,489

Nonperforming assets to total assets

0.11

%

0.13

%

0.12

%

0.13

%

0.10

%

Accruing loans 90 days or more past due

$

851

$

-

$

935

$

3,764

$

-

Restructured accruing loans

$

11,658

$

11,253

$

11,378

$

11,501

$

13,418

As of

Asset Quality March 31, December September June 30, March 31,Information 2021 31, 30, 2020 2020 2020 2020

($ in thousands)

Nonperforming assets:

Nonaccrual $ 172,794 $ 184,132 $ 164,247 $ 164,930 $ 125,418 loans

Other real 1,334 - - 1,071 1,071 estate owned

Totalnonperforming $ 174,128 $ 184,132 $ 164,247 $ 166,001 $ 126,489 assets



Nonperformingassets to 0.11 % 0.13 % 0.12 % 0.13 % 0.10 %total assets



Accruingloans 90 days $ 851 $ - $ 935 $ 3,764 $ - or more pastdue



Restructuredaccruing $ 11,658 $ 11,253 $ 11,378 $ 11,501 $ 13,418 loans

March 31, 2021

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

$

274

$

5

59

%

$

1.2

232

Home equity lines of credit

15

-

62

%

$

0.7

22

Single family construction

2

-

75

%

$

2.2

1

Multifamily

199

1

50

%

$

6.2

32

Commercial real estate

274

1

46

%

$

6.5

42

Multifamily/commercial construction

19

1

38

%

$

19.0

1

Capital call lines of credit

-

-

n/a

$

-

-

Tax-exempt

135

1

n/a

$

19.3

7

Other business

32

-

n/a

$

1.3

24

Stock secured

-

-

n/a

$

-

-

Other secured

4

-

n/a

$

0.3

13

Unsecured (8)

13

-

n/a

$

0.1

118

Total

$

967

$

9

492

__________

(1) COVID-19 loan modifications are not classified as troubled debt restructurings.

(2) Includes 93 loans totaling $28 million that have completed their deferral period, but for which a regular payment is not yet due.

(3) Includes 294 loans totaling $566 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 March 31, 2021,

$3.3 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 March 31, 2021 totaled $12 million for initial relief, and

$7 million for additional relief beyond the initial modification period.

(6) Represents interest payments not made during the deferral period through March 31, 2021.

(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.

March 31, 2021

COVID-19 Loan Modifications ^ Unpaid Deferred LTV Average Number(1), (2), (3), (4), (5) Principal Interest ^(7) Loan of Balance ^(6) Size Loans

($ in millions)

Single family $ 274 $ 5 59 % $ 1.2 232

Home equity lines of credit 15 - 62 % $ 0.7 22

Single family construction 2 - 75 % $ 2.2 1

Multifamily 199 1 50 % $ 6.2 32

Commercial real estate 274 1 46 % $ 6.5 42

Multifamily/commercial 19 1 38 % $ 19.0 1 construction

Capital call lines of credit - - n/a $ - -

Tax-exempt 135 1 n/a $ 19.3 7

Other business 32 - n/a $ 1.3 24

Stock secured - - n/a $ - -

Other secured 4 - n/a $ 0.3 13

Unsecured ^(8) 13 - n/a $ 0.1 118

Total $ 967 $ 9 492

__________

^(1) COVID-19 loan modifications are not classified as troubled debtrestructurings.

^(2) Includes 93 loans totaling $28 million that have completed their deferralperiod, but for which a regular payment is not yet due.

^(3) Includes 294 loans totaling $566 million that received additional reliefbeyond their initial modification period.

^(4) Excludes loans that have completed their deferral period and returned to aregular payment schedule or are no longer outstanding. As of March 31, 2021,

$3.3 billion of loans have completed their deferral period or are no longeroutstanding, and 99% of the outstanding loans were current.

^(5) Loan modifications requested by borrowers that were in process but not yetcompleted as of March 31, 2021 totaled $12 million for initial relief, and

$7 million for additional relief beyond the initial modification period.

^(6) Represents interest payments not made during the deferral period throughMarch 31, 2021.

^(7) Weighted average loan-to-value ("LTV") ratios for real estate securedloans are based on appraised value at the time of origination.

^(8) Consists of household debt refinance loans.

March 31, 2021

Loan Industry Information

Unpaid Principal Balance

LTV

Average Loan Size

Number of Loans

Personal Guarantee %

($ in millions)

Retail

$

1,862

49

%

$

2.7

713

77

%

Hotel

420

48

%

$

6.6

65

73

%

Restaurant (1)

215

49

%

$

1.1

204

94

%

Total (2)

$

2,497

982

__________

(1) Approximately 72% of loans to restaurants are real estate secured.

(2) Amounts in the table above exclude $62 million of loans to hotels and $240 million of loans to restaurants under the PPP.

March 31, 2021

Unpaid Average Number PersonalLoan Industry Information Principal LTV Loan of Guarantee Balance Size Loans %

($ in millions)

Retail $ 1,862 49 % $ 2.7 713 77 %

Hotel 420 48 % $ 6.6 65 73 %

Restaurant ^(1) 215 49 % $ 1.1 204 94 %

Total ^(2) $ 2,497 982

__________

^(1) Approximately 72% of loans to restaurants are real estate secured.

^(2) Amounts in the table above exclude $62 million of loans to hotels and $240million of loans to restaurants under the PPP.

As of

Loan Servicing Portfolio

March 31,2021

December 31,2020

September 30,2020

June 30,2020

March 31,2020

($ in millions)

Loans serviced for investors

$

6,314

$

7,094

$

7,799

$

8,316

$

9,203

As of

Loan Servicing March 31, December September June 30, March 31,Portfolio 2021 31, 30, 2020 2020 2020 2020

($ in millions)

Loans serviced for $ 6,314 $ 7,094 $ 7,799 $ 8,316 $ 9,203 investors

As of

Book Value per Common Share and Tangible

Book Value per Common Share

March 31,2021

December 31,2020

September 30,2020

June 30,2020

March 31,2020

(in thousands, except per share amounts)

Total shareholders' equity

$

12,941,730

$

11,750,646

$

11,344,609

$

10,575,928

$

10,359,765

Less: Preferred stock

2,142,500

1,545,000

1,645,000

1,145,000

1,145,000

Total common shareholders' equity (a)

10,799,230

10,205,646

9,699,609

9,430,928

9,214,765

Less: Goodwill and other intangible assets

225,925

227,512

229,185

230,975

232,985

Total tangible common shareholders' equity (b)

$

10,573,305

$

9,978,134

$

9,470,424

$

9,199,953

$

8,981,780

Number of shares of common stock outstanding (c)

176,287

174,124

172,188

172,094

171,395

Book value per common share (a) / (c)

$

61.26

$

58.61

$

56.33

$

54.80

$

53.76

Tangible book value per common share (b) / (c)

$

59.98

$

57.30

$

55.00

$

53.46

$

52.40

As of

Book Valueper CommonShare andTangible March 31, December 31, September 30, June 30, March 31, 2021 2020 2020 2020 2020Book Valueper CommonShare

(inthousands,except per shareamounts)



Totalshareholders' $ 12,941,730 $ 11,750,646 $ 11,344,609 $ 10,575,928 $ 10,359,765 equity

Less:Preferred 2,142,500 1,545,000 1,645,000 1,145,000 1,145,000 stock

Total commonshareholders' 10,799,230 10,205,646 9,699,609 9,430,928 9,214,765 equity (a)

Less:Goodwill andother 225,925 227,512 229,185 230,975 232,985 intangibleassets

Totaltangiblecommon $ 10,573,305 $ 9,978,134 $ 9,470,424 $ 9,199,953 $ 8,981,780 shareholders'equity (b)



Number ofshares ofcommon stock 176,287 174,124 172,188 172,094 171,395 outstanding(c)



Book valueper common $ 61.26 $ 58.61 $ 56.33 $ 54.80 $ 53.76 share (a) /(c)

Tangible bookvalue per $ 59.98 $ 57.30 $ 55.00 $ 53.46 $ 52.40 common share(b) / (c)

As of

Regulatory Capital Ratios and Components (1), (2)

March 31, 2021 (3)

December 31,2020

September 30,2020

June 30,2020

March 31,2020

($ in thousands)

Capital Ratios:

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

8.32

%

8.14

%

8.38

%

8.15

%

8.46

%

Common Equity Tier 1 capital to risk-weighted assets

9.64

%

9.67

%

9.78

%

9.80

%

9.87

%

Tier 1 capital to risk-weighted assets

11.60

%

11.18

%

11.50

%

11.04

%

11.14

%

Total capital to risk-weighted assets

12.87

%

12.55

%

12.94

%

12.49

%

12.62

%

Regulatory Capital:

Common Equity Tier 1 capital

$

10,548,615

$

9,894,870

$

9,375,688

$

9,103,771

$

8,887,905

Tier 1 capital

$

12,691,115

$

11,439,870

$

11,020,688

$

10,248,771

$

10,032,905

Total capital

$

14,082,378

$

12,842,344

$

12,396,304

$

11,604,141

$

11,365,654

Assets:

Average assets

$

152,465,399

$

140,493,283

$

131,517,445

$

125,690,830

$

118,626,842

Risk-weighted assets

$

109,412,853

$

102,321,489

$

95,823,385

$

92,870,859

$

90,072,400

__________

(1) As defined by regulatory capital rules.

(2) Beginning in 2020, ratios and amounts reflect the Bank's election to delay the estimated impact of the Current Expected Credit Losses ("CECL") allowance methodology on its regulatory capital, average assets and risk-weighted assets over a five-year transition period ending December 31, 2024.

(3) Ratios and amounts as of March 31, 2021 are preliminary.

As of

RegulatoryCapital March 31, December 31, September 30, June 30, March 31,Ratios and 2021 ^(3) 2020 2020 2020 2020Components ^(1), (2)

($ in thousands)



Capital Ratios:

Tier 1leverageratio (Tier 1 8.32 % 8.14 % 8.38 % 8.15 % 8.46 %capital toaverageassets)

Common EquityTier 1capital to 9.64 % 9.67 % 9.78 % 9.80 % 9.87 %risk-weightedassets

Tier 1capital to 11.60 % 11.18 % 11.50 % 11.04 % 11.14 %risk-weightedassets

Total capitalto 12.87 % 12.55 % 12.94 % 12.49 % 12.62 %risk-weightedassets



Regulatory Capital:

Common EquityTier 1 $ 10,548,615 $ 9,894,870 $ 9,375,688 $ 9,103,771 $ 8,887,905 capital

Tier 1 $ 12,691,115 $ 11,439,870 $ 11,020,688 $ 10,248,771 $ 10,032,905 capital

Total capital $ 14,082,378 $ 12,842,344 $ 12,396,304 $ 11,604,141 $ 11,365,654



Assets:

Average $ 152,465,399 $ 140,493,283 $ 131,517,445 $ 125,690,830 $ 118,626,842 assets

Risk-weighted $ 109,412,853 $ 102,321,489 $ 95,823,385 $ 92,870,859 $ 90,072,400 assets

__________

^(1) As defined by regulatory capital rules.

^(2) Beginning in 2020, ratios and amounts reflect the Bank's election to delaythe estimated impact of the Current Expected Credit Losses ("CECL") allowancemethodology on its regulatory capital, average assets and risk-weighted assetsover a five-year transition period ending December 31, 2024.

^(3) Ratios and amounts as of March 31, 2021 are preliminary.

As of

Wealth Management Assets

March 31,2021

December 31,2020

September 30,2020

June 30,2020

March 31,2020

($ in millions)

First Republic Investment Management

$

90,819

$

83,596

$

74,661

$

68,124

$

60,056

Brokerage and investment:

Brokerage

101,478

88,059

76,769

70,178

60,189

Money market mutual funds

11,435

9,003

4,416

5,933

6,893

Total brokerage and investment

112,913

97,062

81,185

76,111

67,082

Trust Company:

Trust

10,986

9,910

8,687

7,905

7,288

Custody

4,216

3,889

3,651

3,646

3,461

Total Trust Company

15,202

13,799

12,338

11,551

10,749

Total Wealth Management Assets

$

218,934

$

194,457

$

168,184

$

155,786

$

137,887

View source version on businesswire.com: https://www.businesswire.com/news/home/20210414005210/en/

CONTACT: Investors: Andrew Greenebaum / Lasse Glassen Addo Investor Relations agreenebaum@addoir.com lglassen@addoir.com (310) 829-5400 Media: Greg Berardi Blue Marlin Partners gberardi@firstrepublic.com (415) 239-7826