Business Wire | Jan 14, 2022 07:02AM EST

First Republic Reports 2021 Results

Jan. 14, 2022

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 14, 2022--First Republic Bank (NYSE: FRC) today announced financial results for the quarter and year ended December 31, 2021.

"This was a terrific year for First Republic," said Mike Roffler, Co-CEO (Acting) and President. "Loans, deposits and wealth management assets all grew nicely for both the fourth quarter and the full year. First Republic continues to succeed by executing a client-centric business model focused on exceptional service."

Full Year Highlights

Financial Results

- Revenues were $5.0 billion, up 28.5%.

- Net interest income was $4.1 billion, up 26.1%.

- Net income was $1.5 billion, up 38.9%.

- Diluted earnings per share ("EPS") of $7.68, up 32.2%.

- Loan originations totaled $64.8 billion, our best year ever.

- Tangible book value per share was $67.10, up 17.1%.

- Efficiency ratio was 62.5%, compared to 61.9% last year.

Continued Capital and Credit Strength

- Tier 1 leverage ratio was 8.76%.

- Tier 1 capital raised of $2.8 billion, net.

- Nonperforming assets remained at a low 8 basis points of total assets at year-end.

- Net charge-offs were only $2.1 million, or less than 1 basis point of average loans.

Continued Franchise Growth

- Loans totaled $135.0 billion, up 19.9%.

- Deposits were $156.3 billion, up 36.0%.

- Wealth management assets were $279.4 billion, up 43.7%.

- Wealth management revenues were $760 million, up 44.4%.

Quarterly Highlights

- Compared to last year's fourth quarter:

- Revenues were $1.4 billion, up 26.4%.

- Net interest income was $1.1 billion, up 25.4%.

- Net income was $400 million, up 35.5%.

- Diluted EPS of $2.02, up 26.3%.

- Loan originations were $16.9 billion, our best quarter ever.

- Net charge-offs were less than $100,000.

- Compared to the prior quarter:

- Net interest margin was 2.68%, compared to 2.65%.

- Efficiency ratio was 63.3%, compared to 61.3%.

- Wealth management assets were up 11.0%.

"Credit quality, liquidity and capital remain strong, and we're pleased to have raised $2.8 billion in net new Tier 1 capital in 2021," said Olga Tsokova, Chief Financial Officer (Acting) and Chief Accounting Officer. "Net interest income increased 26% and tangible book value per share rose 17% in 2021."

Quarterly Cash Dividend of $0.22 per Share

The Bank declared a cash dividend for the fourth quarter of $0.22 per share of common stock, which is payable on February 10, 2022 to shareholders of record as of January 27, 2022.

Strong Asset Quality

Credit quality remains strong. Nonperforming assets were at a low 8 basis points of total assets at December 31, 2021.

The provision for credit losses for the full year was $59 million, with net loan charge-offs of only $2.1 million. For the quarter, the provision for credit losses was $24 million, which was primarily driven by loan growth.

Continued Book Value Growth and Capital Strength

Book value per common share at December 31, 2021 was $68.34, up 16.6% from a year ago. Tangible book value per common share at December 31, 2021 was $67.10, up 17.1% from a year ago.

The Bank's Tier 1 leverage ratio was 8.76%at December 31, 2021, compared to 8.55% at September 30, 2021.

During the fourth quarter, the Bank issued $740 million of 4.500% Noncumulative Perpetual Series N Preferred Stock, which qualifies as Tier 1 capital.

Total common stock sold and preferred stock issued, net of preferred stock redeemed, added $2.8 billion of Tier 1 capital in 2021, and contributed to the 35.3% increase in total equity year-over-year.

Continued Franchise Growth

Loan Originations

Loan originations were $16.9 billion for the quarter, up slightly from the same quarter a year ago. For 2021, loan originations totaled $64.8 billion, up 23.0% compared to the prior year. The increase for the year was primarily due to increases in single family lending and capital call lines of credit.

Single family loan originations were 42% of the total loan origination volume for the quarter and 46% for the full year, and had a weighted average loan-to-value ratio of 59% for the full year. In addition, multifamily and commercial real estate loans originated were 14% of total originations for the quarter and 11% for the year, and had a weighted average loan-to-value ratio of 49% for the year.

Loans totaled $135.0 billion at December 31, 2021, up 19.9% compared to a year ago, primarily due to increases in single family, capital call lines of credit, multifamily and stock secured loans, partially offset by a decrease in PPP loans.

Deposit Growth

Total deposits increased to $156.3 billion, up 36.0% compared to a year ago, and had an average rate paid of 5 basis points during the quarter.

At December 31, 2021, checking deposit balances were 71.7% of total deposits.

Investments

Total investment securities at December 31, 2021 were $25.7 billion, a 6.3% increase compared to the prior quarter and a 38.7% increase compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $30.4 billion at December 31, 2021, and represented 17.0% of quarterly average total assets.

Wealth Management

Total wealth management assets were $279.4 billion at December 31, 2021, up 11.0% compared to the prior quarter and up 43.7% compared to a year ago. The increases in wealth management assets were due to net client inflow and market appreciation.

Wealth management revenues totaled $207 million for the quarter, up 37.1% compared to last year's fourth quarter. For 2021, wealth management revenues were $760 million, an increase of 44.4% compared to the prior year. Such revenues represented 15.2% of the Bank's total revenues for the quarter and 15.1% of the Bank's total revenues for the year.

Wealth management assets at December 31, 2021 included investment management assets of $109.1 billion, brokerage assets and money market mutual funds of $151.9 billion, and trust and custody assets of $18.4 billion.

Income Statement and Key Ratios

Revenue Growth

Total revenues were $1.4 billion for the quarter, up 26.4% compared to the fourth quarter a year ago, and were $5.0 billion for 2021, up 28.5% compared to the prior year.

Net Interest Income Growth

Net interest income was $1.1 billion for the quarter, up 25.4% compared to the fourth quarter a year ago, and was $4.1 billion for 2021, up 26.1% compared to the prior year. The increases in net interest income resulted primarily from growth in average interest-earning assets, modestly offset by decreases in net interest margin.

Net Interest Margin

The net interest margin increased to 2.68% in the fourth quarter, from 2.65% in the prior quarter. For 2021, the net interest margin was 2.67%, compared to 2.72% for the prior year. The increase for the quarter was primarily due to reduced interest expense that resulted from prepaid FHLB advances in the fourth quarter of 2021. The decline for the year was primarily due to significantly higher average cash balances during the year.

Noninterest Income

Noninterest income was $247 million for the quarter, up 31.6% compared to the fourth quarter a year ago, and was $920 million for 2021, up 40.6% compared to the prior year. The increases were primarily driven by higher wealth management fees and income from investments in life insurance.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $866 million for the quarter, up 29.9% compared to the fourth quarter a year ago, and was $3.1 billion for 2021, up 29.7% compared to the prior year, primarily due to continued investments in the expansion of the franchise, including hiring additional colleagues to support our growth and information systems initiatives.

The efficiency ratio was 63.3% for the quarter, compared to 61.6% for the fourth quarter a year ago. The increase was primarily due to higher compensation costs. For 2021, the efficiency ratio was 62.5%, compared to 61.9% for 2020.

Income Taxes

The Bank's effective tax rate for the fourth quarter of 2021 was 16.1%, compared to 22.1% for the fourth quarter a year ago. The effective tax rate for 2021 was 19.1%, compared to 20.2% for 2020. The decreases were primarily due to research and development tax credits from prior years' amended tax returns filed in the fourth quarter of 2021.

Conference Call Details

First Republic Bank's fourth quarter 2021 earnings conference call is scheduled for January 14, 2022 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (888) 204-4368 and provide confirmation code 3634481 approximately 15 minutes prior to the start time (to allow time for registration). International callers should dial +1 (856) 344-9299 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 for the live presentation, a replay of the call will be available beginning January 14, 2022 at 11:00 a.m. PT / 2:00 p.m. ET through January 21, 2022 at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (888) 203-1112 and use confirmation code 3634481#. 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; expectations regarding our executive transitions; 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 including in connection with the search for our next chief executive officer; natural or other disasters, including earthquakes, wildfires, pandemics or acts of terrorism affecting the markets in which we operate; the adverse effects of climate change on our business, clients and counterparties; 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.

Non-GAAP Financial Measures

Our management uses and believes that investors benefit from using certain non-GAAP measures of our financial performance, which include tangible book value per common share, return on average tangible common shareholders' equity, and net interest income on a fully taxable-equivalent basis. Management believes that tangible book value per common share and return on average tangible common shareholders' equity are useful additional measures to evaluate our performance and capital position without the impact of goodwill and other intangible assets and preferred stock. In addition, to facilitate relevant comparisons of net interest income from taxable and tax-exempt interest-earning assets, when calculating yields and net interest margin, we adjust interest income on tax-exempt securities and tax-advantaged loans so such amounts are fully equivalent to interest income on taxable sources. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information that is not otherwise required by GAAP or other applicable requirements. These non-GAAP financial measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP. A reconciliation of the non-GAAP calculation of the financial measure to the most comparable GAAP financial measure is presented in relevant tables in this document.

Explanatory Note

Some amounts presented within this document may not recalculate due to rounding.

CONSOLIDATED STATEMENTS OF INCOME

Quarter Quarter Ended Ended Year Ended December 31, September December 31, 30,

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

Interest income:

Loans $ 992 $ 845 $ 947 $ 3,725 $ 3,245

Investments 165 138 161 624 576

Other 4 6 5 19 24

Cash and cash equivalents 6 2 5 17 8

Total interest income 1,167 991 1,118 4,385 3,853



Interest expense:

Deposits 20 30 22 95 276

Borrowings 27 68 44 176 315

Total interest expense 47 98 66 271 591



Net interest income 1,120 893 1,052 4,114 3,262

Provision for credit 24 35 34 59 157losses

Net interest income afterprovision for credit 1,096 858 1,018 4,055 3,105losses



Noninterest income:

Investment management fees 150 114 149 554 395

Brokerage and investment 19 11 23 74 51fees

Insurance fees 7 6 6 19 12

Trust fees 7 5 6 25 19

Foreign exchange fee 24 15 26 88 50income

Deposit fees 7 6 7 27 24

Loan and related fees 9 7 8 33 28

Gain (loss) on investment (3 ) - 2 1 4securities

Income from investments in 27 18 20 85 53life insurance

Other income - 6 4 14 19

Total noninterest income 247 188 251 920 655



Noninterest expense:

Salaries and employee 544 416 514 2,003 1,495benefits

Information systems 99 79 91 362 299

Occupancy 66 57 67 254 221

Professional fees 27 18 27 101 66

Advertising and marketing 21 14 14 64 43

FDIC assessments 13 12 14 52 44

Other expenses 96 71 71 311 258

Total noninterest expense 866 667 798 3,147 2,426



Income before provision 477 379 471 1,828 1,334for income taxes

Provision for income taxes 77 84 101 350 270

Net income 400 295 370 1,478 1,064

Dividends on preferred 32 16 25 99 59stock

Net income available to $ 368 $ 279 $ 345 $ 1,379 $ 1,005common shareholders



Basic earnings per common $ 2.05 $ 1.61 $ 1.94 $ 7.78 $ 5.85share

Diluted earnings per $ 2.02 $ 1.60 $ 1.91 $ 7.68 $ 5.81common share



Weighted average 179 173 178 177 172shares-basic

Weighted average 182 175 180 180 173shares-diluted

CONSOLIDATED BALANCE SHEETS

As of

($ in millions)

December 31,2021

September 30,2021

December 31,2020

ASSETS

Cash and cash equivalents

$

12,947

$

12,279

$

5,095

Debt securities available-for-sale

3,381

2,961

1,906

Debt securities held-to-maturity, net

22,292

21,192

16,603

Equity securities (fair value)

28

32

21

Loans:

Single family

76,793

73,491

61,370

Home equity lines of credit

2,584

2,429

2,450

Single family construction

993

985

788

Multifamily

15,966

15,417

13,769

Commercial real estate

8,531

8,486

8,018

Multifamily/commercial construction

1,927

2,064

2,024

Capital call lines of credit

10,999

9,088

8,150

Tax-exempt

3,680

3,578

3,366

Other business

3,961

3,554

3,340

PPP

545

876

1,841

Stock secured

3,435

3,120

2,518

Other secured

2,457

2,261

1,819

Unsecured

3,085

3,026

3,113

Total loans

134,956

128,375

112,566

Allowance for credit losses

(694

)

(668

)

(635

)

Loans, net

134,262

127,707

111,931

Loans held for sale

1

4

21

Investments in life insurance

2,650

2,628

2,061

Tax credit investments

1,220

1,181

1,132

Premises, equipment and leasehold improvements, net

454

431

403

Goodwill and other intangible assets

222

223

228

Other assets

3,630

3,933

3,101

Total Assets

$

181,087

$

172,571

$

142,502

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Noninterest-bearing checking

$

70,840

$

65,833

$

46,281

Interest-bearing checking

41,248

34,089

30,603

Money market checking

20,303

21,861

16,779

Money market savings and passbooks

16,573

15,947

12,585

Certificates of deposit

7,357

7,596

8,681

Total Deposits

156,321

145,326

114,929

Long-term FHLB advances

3,700

7,700

11,755

Senior notes

998

998

996

Subordinated notes

779

779

778

Other liabilities

3,391

2,966

2,293

Total Liabilities

165,189

157,769

130,751

Shareholders' Equity:

Preferred stock

3,633

2,893

1,545

Common stock

2

2

2

Additional paid-in capital

5,725

5,685

4,835

Retained earnings

6,569

6,242

5,346

Accumulated other comprehensive income (loss)

(31

)

(20

)

23

Total Shareholders' Equity

15,898

14,802

11,751

Total Liabilities and Shareholders' Equity

$

181,087

$

172,571

$

142,502

CONSOLIDATED BALANCE SHEETS

As of

December September December($ in millions) 31, 30, 31, 2021 2021 2020

ASSETS

Cash and cash equivalents $ 12,947 $ 12,279 $ 5,095

Debt securities available-for-sale 3,381 2,961 1,906

Debt securities held-to-maturity, net 22,292 21,192 16,603

Equity securities (fair value) 28 32 21



Loans:

Single family 76,793 73,491 61,370

Home equity lines of credit 2,584 2,429 2,450

Single family construction 993 985 788

Multifamily 15,966 15,417 13,769

Commercial real estate 8,531 8,486 8,018

Multifamily/commercial construction 1,927 2,064 2,024

Capital call lines of credit 10,999 9,088 8,150

Tax-exempt 3,680 3,578 3,366

Other business 3,961 3,554 3,340

PPP 545 876 1,841

Stock secured 3,435 3,120 2,518

Other secured 2,457 2,261 1,819

Unsecured 3,085 3,026 3,113

Total loans 134,956 128,375 112,566

Allowance for credit losses (694 ) (668 ) (635 )

Loans, net 134,262 127,707 111,931



Loans held for sale 1 4 21

Investments in life insurance 2,650 2,628 2,061

Tax credit investments 1,220 1,181 1,132

Premises, equipment and leasehold 454 431 403 improvements, net

Goodwill and other intangible assets 222 223 228

Other assets 3,630 3,933 3,101

Total Assets $ 181,087 $ 172,571 $ 142,502



LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Noninterest-bearing checking $ 70,840 $ 65,833 $ 46,281

Interest-bearing checking 41,248 34,089 30,603

Money market checking 20,303 21,861 16,779

Money market savings and passbooks 16,573 15,947 12,585

Certificates of deposit 7,357 7,596 8,681

Total Deposits 156,321 145,326 114,929



Long-term FHLB advances 3,700 7,700 11,755

Senior notes 998 998 996

Subordinated notes 779 779 778

Other liabilities 3,391 2,966 2,293

Total Liabilities 165,189 157,769 130,751



Shareholders' Equity:

Preferred stock 3,633 2,893 1,545

Common stock 2 2 2

Additional paid-in capital 5,725 5,685 4,835

Retained earnings 6,569 6,242 5,346

Accumulated other comprehensive (31 ) (20 ) 23 income (loss)

Total Shareholders' Equity 15,898 14,802 11,751

Total Liabilities and Shareholders' $ 181,087 $ 172,571 $ 142,502 Equity

Quarter Ended December 31,

Quarter Ended September 30,

2021

2020

2021

Average Balances, Yields and Rates

Average Balance

Interest Income/ Expense (1)

Yield/ Rates (2)

Average Balance

Interest Income/ Expense (1)

Yield/ Rates (2)

Average Balance

Interest Income/ Expense (1)

Yield/ Rates (2)

($ in millions)

Assets:

Interest-bearing deposits with banks

$

15,342

$

6

0.15

%

$

6,966

$

2

0.10

%

$

13,384

$

5

0.15

%

Investment securities:

U.S. Government-sponsored agency securities

100

0

1.59

%

50

0

1.57

%

100

0

1.59

%

Agency residential and commercial MBS

7,011

29

1.65

%

5,786

32

2.23

%

6,200

28

1.84

%

Other residential and commercial MBS

25

0

1.82

%

35

0

2.08

%

28

0

2.25

%

Tax-exempt municipal securities

14,869

146

3.93

%

11,815

124

4.20

%

14,173

141

3.97

%

Taxable municipal securities

1,670

12

2.99

%

824

7

3.29

%

1,670

13

2.98

%

Other investment securities

1,405

10

2.86

%

76

1

2.68

%

1,405

10

2.86

%

Total investment securities

25,080

197

3.15

%

18,586

164

3.53

%

23,576

192

3.26

%

Loans:

Residential real estate

78,436

545

2.78

%

62,280

452

2.90

%

75,143

528

2.81

%

Multifamily

15,479

154

3.90

%

13,596

125

3.60

%

15,126

135

3.49

%

Commercial real estate

8,525

83

3.82

%

7,910

79

3.89

%

8,357

82

3.82

%

Multifamily/commercial construction

2,044

24

4.70

%

2,032

24

4.70

%

2,052

26

5.01

%

Business

17,210

139

3.15

%

13,383

116

3.39

%

15,928

129

3.17

%

PPP

732

9

4.65

%

2,004

14

2.82

%

1,123

11

4.01

%

Other

8,578

45

2.03

%

7,253

41

2.23

%

8,158

43

2.06

%

Total loans

131,004

999

3.02

%

108,458

851

3.11

%

125,887

954

3.00

%

FHLB stock

143

4

11.17

%

413

6

5.55

%

266

5

6.99

%

Total interest-earning assets

171,569

1,206

2.79

%

134,423

1,023

3.02

%

163,113

1,156

2.81

%

Noninterest-earning cash

426

453

391

Goodwill and other intangibles

223

228

224

Other assets

6,967

5,706

6,891

Total noninterest-earning assets

7,616

6,387

7,506

Total Assets

$

179,185

$

140,810

$

170,619

Liabilities and Shareholders' Equity:

Deposits:

Interest-bearing checking

$

36,896

1

0.01

%

$

28,332

2

0.03

%

$

33,642

1

0.01

%

Money market checking

21,925

5

0.10

%

16,890

8

0.19

%

21,861

6

0.11

%

Money market savings and passbooks

16,935

6

0.15

%

12,259

6

0.19

%

15,831

6

0.16

%

CDs

7,482

8

0.42

%

8,814

14

0.63

%

7,779

9

0.46

%

Total interest-bearing deposits (3)

83,238

20

0.10

%

66,295

30

0.18

%

79,113

22

0.11

%

Borrowings:

Short-term borrowings

-

-

-

%

9

0

0.17

%

0

0

0.09

%

Long-term FHLB advances

4,582

12

1.06

%

13,298

53

1.58

%

8,545

28

1.29

%

Senior notes

998

6

2.42

%

996

6

2.42

%

997

6

2.42

%

Subordinated notes

779

9

4.68

%

778

9

4.68

%

779

10

4.68

%

Total borrowings

6,359

27

1.72

%

15,081

68

1.80

%

10,321

44

1.66

%

Total interest-bearing liabilities (4)

89,597

47

0.21

%

81,376

98

0.48

%

89,434

66

0.29

%

Noninterest-bearing checking

71,308

45,545

64,008

Other noninterest-bearing liabilities

3,044

2,341

2,904

Total noninterest-bearing liabilities

74,352

47,886

66,912

Preferred shareholders' equity

3,158

1,552

2,730

Common shareholders' equity

12,078

9,996

11,543

Total Liabilities and Shareholders' Equity

$

179,185

$

140,810

$

170,619

Net interest spread (5)

2.58

%

2.54

%

2.52

%

Net interest income (fully taxable-equivalent basis) and net interest margin (6)

$

1,159

2.68

%

$

925

2.73

%

$

1,090

2.65

%

Reconciliation of tax-equivalent netinterest income to net interest income: (7)

Municipal securities tax-equivalent

adjustment

(32

)

(25

)

(31

)

Business loans tax-equivalent adjustment

(7

)

(7

)

(7

)

Net interest income

$

1,120

$

893

$

1,052

Supplemental information:

Total deposits (interest-bearing and

noninterest-bearing)

$

154,546

$

20

0.05

%

$

111,840

$

30

0.11

%

$

143,121

$

22

0.06

%

Total deposits (interest-bearing and

noninterest-bearing) and borrowings

$

160,905

$

47

0.12

%

$

126,921

$

98

0.31

%

$

153,442

$

66

0.17

%

Quarter Ended December 31, Quarter Ended September 30,

2021 2020 2021

Interest Yield/ Interest Yield/ Interest Yield/Average Balances, Average Income/ Rates ^ Average Income/ Rates Average Income/ RatesYields and Rates Balance Expense (2) Balance Expense ^ ^(2) Balance Expense ^ ^(2) ^(1) (1) (1)

($ in millions)

Assets:

Interest-bearing $ 15,342 $ 6 0.15 % $ 6,966 $ 2 0.10 % $ 13,384 $ 5 0.15 %deposits with banks

Investment securities:

U.S.Government-sponsored 100 0 1.59 % 50 0 1.57 % 100 0 1.59 %agency securities

Agency residential 7,011 29 1.65 % 5,786 32 2.23 % 6,200 28 1.84 %and commercial MBS

Other residential 25 0 1.82 % 35 0 2.08 % 28 0 2.25 %and commercial MBS

Tax-exempt municipal 14,869 146 3.93 % 11,815 124 4.20 % 14,173 141 3.97 %securities

Taxable municipal 1,670 12 2.99 % 824 7 3.29 % 1,670 13 2.98 %securities

Other investment 1,405 10 2.86 % 76 1 2.68 % 1,405 10 2.86 %securities

Total investment 25,080 197 3.15 % 18,586 164 3.53 % 23,576 192 3.26 %securities



Loans:

Residential real 78,436 545 2.78 % 62,280 452 2.90 % 75,143 528 2.81 %estate

Multifamily 15,479 154 3.90 % 13,596 125 3.60 % 15,126 135 3.49 %

Commercial real 8,525 83 3.82 % 7,910 79 3.89 % 8,357 82 3.82 %estate

Multifamily/commercial 2,044 24 4.70 % 2,032 24 4.70 % 2,052 26 5.01 %construction

Business 17,210 139 3.15 % 13,383 116 3.39 % 15,928 129 3.17 %

PPP 732 9 4.65 % 2,004 14 2.82 % 1,123 11 4.01 %

Other 8,578 45 2.03 % 7,253 41 2.23 % 8,158 43 2.06 %

Total loans 131,004 999 3.02 % 108,458 851 3.11 % 125,887 954 3.00 %

FHLB stock 143 4 11.17 % 413 6 5.55 % 266 5 6.99 %

Totalinterest-earning 171,569 1,206 2.79 % 134,423 1,023 3.02 % 163,113 1,156 2.81 %assets



Noninterest-earning 426 453 391 cash

Goodwill and other 223 228 224 intangibles

Other assets 6,967 5,706 6,891

Totalnoninterest-earning 7,616 6,387 7,506 assets

Total Assets $ 179,185 $ 140,810 $ 170,619



Liabilities andShareholders' Equity:

Deposits:

Interest-bearing $ 36,896 1 0.01 % $ 28,332 2 0.03 % $ 33,642 1 0.01 %checking

Money market 21,925 5 0.10 % 16,890 8 0.19 % 21,861 6 0.11 %checking

Money market savings 16,935 6 0.15 % 12,259 6 0.19 % 15,831 6 0.16 %and passbooks

CDs 7,482 8 0.42 % 8,814 14 0.63 % 7,779 9 0.46 %

Totalinterest-bearing 83,238 20 0.10 % 66,295 30 0.18 % 79,113 22 0.11 %deposits ^(3)



Borrowings:

Short-term - - - % 9 0 0.17 % 0 0 0.09 %borrowings

Long-term FHLB 4,582 12 1.06 % 13,298 53 1.58 % 8,545 28 1.29 %advances

Senior notes 998 6 2.42 % 996 6 2.42 % 997 6 2.42 %

Subordinated notes 779 9 4.68 % 778 9 4.68 % 779 10 4.68 %

Total borrowings 6,359 27 1.72 % 15,081 68 1.80 % 10,321 44 1.66 %

Totalinterest-bearing 89,597 47 0.21 % 81,376 98 0.48 % 89,434 66 0.29 %liabilities ^(4)



Noninterest-bearing 71,308 45,545 64,008 checking

Othernoninterest-bearing 3,044 2,341 2,904 liabilities

Totalnoninterest-bearing 74,352 47,886 66,912 liabilities



Preferred 3,158 1,552 2,730 shareholders' equity

Common shareholders' 12,078 9,996 11,543 equity

Total Liabilitiesand Shareholders' $ 179,185 $ 140,810 $ 170,619 Equity



Net interest spread 2.58 % 2.54 % 2.52 %^(5)

Net interest income(fullytaxable-equivalent $ 1,159 2.68 % $ 925 2.73 % $ 1,090 2.65 %basis) and netinterest margin^ (6)



Reconciliation oftax-equivalent netinterest income to net interest income:^(7)

Municipal securitiestax-equivalent (32 ) (25 ) (31 ) adjustment

Business loans )tax-equivalent (7 (7 ) (7 ) adjustment

Net interest income $ 1,120 $ 893 $ 1,052



Supplemental information:

Total deposits(interest-bearingand $ 154,546 $ 20 0.05 % $ 111,840 $ 30 0.11 % $ 143,121 $ 22 0.06 %

noninterest-bearing)

Total deposits(interest-bearingand $ 160,905 $ 47 0.12 % $ 126,921 $ 98 0.31 % $ 153,442 $ 66 0.17 %

noninterest-bearing)and borrowings

Year Ended December 31,

2021

2020

Average Balances, Yields and Rates

Average Balance

Interest Income/ Expense (1)

Yields/Rates

Average Balance

Interest Income/ Expense (1)

Yields/Rates

($ in millions)

Assets:

Interest-bearing deposits with banks

$

12,876

$

17

0.13

%

$

4,018

$

8

0.19

%

Investment securities:

U.S. Government-sponsored agency securities

98

2

1.56

%

193

5

2.56

%

Agency residential and commercial MBS

6,125

117

1.91

%

6,348

160

2.51

%

Other residential and commercial MBS

29

1

2.00

%

26

1

2.29

%

Tax-exempt municipal securities

13,704

549

4.01

%

11,329

486

4.29

%

Taxable municipal securities

1,510

45

2.98

%

738

25

3.32

%

Other investment securities

1,157

32

2.80

%

52

1

2.77

%

Total investment securities

22,623

746

3.30

%

18,686

678

3.62

%

Loans:

Residential real estate

72,679

2,048

2.82

%

56,628

1,703

3.01

%

Multifamily

14,735

539

3.61

%

13,093

489

3.68

%

Commercial real estate

8,260

321

3.83

%

7,752

313

3.97

%

Multifamily/commercial construction

2,067

105

4.99

%

1,935

95

4.82

%

Business

16,033

520

3.20

%

12,846

465

3.56

%

PPP

1,418

51

3.58

%

1,432

33

2.26

%

Other

7,938

169

2.10

%

6,842

173

2.48

%

Total loans

123,130

3,753

3.03

%

100,528

3,271

3.23

%

FHLB stock

266

19

7.14

%

442

24

5.40

%

Total interest-earning assets

158,895

4,535

2.84

%

123,674

3,981

3.20

%

Noninterest-earning cash

404

439

Goodwill and other intangibles

225

231

Other assets

6,671

5,104

Total noninterest-earning assets

7,300

5,774

Total Assets

$

166,195

$

129,448

Liabilities and Shareholders' Equity:

Deposits:

Interest-bearing checking

$

33,977

6

0.02

%

$

24,143

16

0.07

%

Money market checking

20,662

25

0.12

%

14,848

56

0.38

%

Money market savings and passbooks

15,308

25

0.17

%

10,659

32

0.30

%

CDs

7,926

39

0.49

%

11,754

172

1.46

%

Total interest-bearing deposits (3)

77,873

95

0.12

%

61,404

276

0.45

%

Borrowings:

Short-term borrowings

0

0

0.09

%

311

5

1.52

%

Long-term FHLB advances

8,609

116

1.34

%

14,330

250

1.74

%

Senior notes

997

24

2.42

%

938

23

2.44

%

Subordinated notes

779

36

4.68

%

778

37

4.68

%

Total borrowings

10,385

176

1.70

%

16,357

315

1.92

%

Total interest-bearing liabilities (4)

88,258

271

0.31

%

77,761

591

0.76

%

Noninterest-bearing checking

61,325

38,796

Other noninterest-bearing liabilities

2,847

2,131

Total noninterest-bearing liabilities

64,172

40,927

Preferred shareholders' equity

2,502

1,268

Common shareholders' equity

11,263

9,492

Total Liabilities and Shareholders' Equity

$

166,195

$

129,448

Net interest spread (5)

2.53

%

2.44

%

Net interest income (fully taxable-equivalent basis) and net interest margin (6)

$

4,264

2.67

%

$

3,390

2.72

%

Reconciliation of tax-equivalent net interest incometo net interest income: (7)

Municipal securities tax-equivalent adjustment

(122

)

(101

)

Business loans tax-equivalent adjustment

(28

)

(27

)

Net interest income

$

4,114

$

3,262

Supplemental information:

Total deposits (interest-bearing and noninterest-bearing)

$

139,198

$

95

0.07

%

$

100,200

$

276

0.28

%

Total deposits (interest-bearing and noninterest-bearing) and

borrowings

$

149,583

$

271

0.18

%

$

116,557

$

591

0.51

%

__________

Year Ended December 31,

2021 2020

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

($ in millions)

Assets:

Interest-bearing $ 12,876 $ 17 0.13 % $ 4,018 $ 8 0.19 %deposits with banks

Investment securities:

U.S.Government-sponsored 98 2 1.56 % 193 5 2.56 %agency securities

Agency residential 6,125 117 1.91 % 6,348 160 2.51 %and commercial MBS

Other residential 29 1 2.00 % 26 1 2.29 %and commercial MBS

Tax-exempt municipal 13,704 549 4.01 % 11,329 486 4.29 %securities

Taxable municipal 1,510 45 2.98 % 738 25 3.32 %securities

Other investment 1,157 32 2.80 % 52 1 2.77 %securities

Total investment 22,623 746 3.30 % 18,686 678 3.62 %securities



Loans:

Residential real 72,679 2,048 2.82 % 56,628 1,703 3.01 %estate

Multifamily 14,735 539 3.61 % 13,093 489 3.68 %

Commercial real 8,260 321 3.83 % 7,752 313 3.97 %estate

Multifamily/commercial 2,067 105 4.99 % 1,935 95 4.82 %construction

Business 16,033 520 3.20 % 12,846 465 3.56 %

PPP 1,418 51 3.58 % 1,432 33 2.26 %

Other 7,938 169 2.10 % 6,842 173 2.48 %

Total loans 123,130 3,753 3.03 % 100,528 3,271 3.23 %

FHLB stock 266 19 7.14 % 442 24 5.40 %

Totalinterest-earning 158,895 4,535 2.84 % 123,674 3,981 3.20 %assets



Noninterest-earning 404 439 cash

Goodwill and other 225 231 intangibles

Other assets 6,671 5,104

Totalnoninterest-earning 7,300 5,774 assets

Total Assets $ 166,195 $ 129,448



Liabilities andShareholders' Equity:

Deposits:

Interest-bearing $ 33,977 6 0.02 % $ 24,143 16 0.07 %checking

Money market 20,662 25 0.12 % 14,848 56 0.38 %checking

Money market savings 15,308 25 0.17 % 10,659 32 0.30 %and passbooks

CDs 7,926 39 0.49 % 11,754 172 1.46 %

Totalinterest-bearing 77,873 95 0.12 % 61,404 276 0.45 %deposits ^(3)



Borrowings:

Short-term 0 0 0.09 % 311 5 1.52 %borrowings

Long-term FHLB 8,609 116 1.34 % 14,330 250 1.74 %advances

Senior notes 997 24 2.42 % 938 23 2.44 %

Subordinated notes 779 36 4.68 % 778 37 4.68 %

Total borrowings 10,385 176 1.70 % 16,357 315 1.92 %

Totalinterest-bearing 88,258 271 0.31 % 77,761 591 0.76 %liabilities ^(4)



Noninterest-bearing 61,325 38,796 checking

Othernoninterest-bearing 2,847 2,131 liabilities

Totalnoninterest-bearing 64,172 40,927 liabilities



Preferred 2,502 1,268 shareholders' equity

Common shareholders' 11,263 9,492 equity

Total Liabilitiesand Shareholders' $ 166,195 $ 129,448 Equity



Net interest spread 2.53 % 2.44 %^(5)

Net interest income(fullytaxable-equivalent $ 4,264 2.67 % $ 3,390 2.72 %basis) and netinterest margin^ (6)



Reconciliation oftax-equivalent netinterest income to net interest income:^(7)

Municipal securitiestax-equivalent (122 ) (101 ) adjustment

Business loanstax-equivalent (28 ) (27 ) adjustment

Net interest income $ 4,114 $ 3,262



Supplemental information:

Total deposits(interest-bearing $ 139,198 $ 95 0.07 % $ 100,200 $ 276 0.28 %andnoninterest-bearing)

Total deposits(interest-bearingandnoninterest-bearing) $ 149,583 $ 271 0.18 % $ 116,557 $ 591 0.51 %and

borrowings

__________

Note: Certain prior period amounts have been reclassified to conform to the current period presentation.(1)

Interest income on tax-exempt securities and loans has been adjusted to the fully taxable-equivalent basis using the statutory federal income tax rate in effect for each respective period presented.

(2)

Yields/rates are annualized.

(3)

Refer to supplemental information in this table for average balances, interest expense and rates for total deposits (interest-bearing and noninterest-bearing).

(4)

Refer to supplemental information in this table for average balances, interest expense and rates for total deposits (interest-bearing and noninterest-bearing) and borrowings.

(5)

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

(6)

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

(7)

Fully taxable-equivalent net interest income is considered a non-GAAP financial measure, and is reconciled to GAAP net interest income in this table.

Note: Certain prior period amounts have been reclassified to conform to thecurrent period presentation.^ Interest income on tax-exempt securities and loans has been adjusted to(1) the fully taxable-equivalent basis using the statutory federal income tax rate in effect for each respective period presented.

^ Yields/rates are annualized.(2)

^ Refer to supplemental information in this table for average balances,(3) interest expense and rates for total deposits (interest-bearing and noninterest-bearing).

^ Refer to supplemental information in this table for average balances,(4) interest expense and rates for total deposits (interest-bearing and noninterest-bearing) and borrowings.

^ Net interest spread represents the average yield on interest-earning(5) assets less the average rate on interest-bearing liabilities.

^ Net interest margin represents net interest income on a fully(6) taxable-equivalent basis divided by total average interest-earning assets.

^ Fully taxable-equivalent net interest income is considered a non-GAAP(7) financial measure, and is reconciled to GAAP net interest income in this table.

Quarter EndedDecember 31,

Quarter EndedSeptember 30,

Year EndedDecember 31,

Selected Financial Data and Ratios

2021

2020

2021

2021

2020

($ in millions, except per share amounts)

Selected Financial Data and Ratios:

Return on average assets (1), (2)

0.89

%

0.84

%

0.86

%

0.89

%

0.82

%

Return on average common shareholders' equity (1)

12.08

%

11.12

%

11.87

%

12.24

%

10.59

%

Return on average tangible common shareholders' equity (1), (3)

12.31

%

11.38

%

12.10

%

12.49

%

10.86

%

Average equity to average assets

8.50

%

8.20

%

8.37

%

8.28

%

8.31

%

Dividends per common share

$

0.22

$

0.20

$

0.22

$

0.86

$

0.79

Dividend payout ratio

10.9

%

12.5

%

11.5

%

11.2

%

13.6

%

Efficiency ratio (4)

63.3

%

61.6

%

61.3

%

62.5

%

61.9

%

Net loan charge-offs (recoveries)

$

0.1

$

(0.6

)

$

0.3

$

2.1

$

2.4

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

0.00

%

0.00

%

0.00

%

0.00

%

0.00

%

Selected Ratios (period-end):

Book value per common share

$

68.34

$

58.61

$

66.44

Tangible book value per common share (5)

$

67.10

$

57.30

$

65.19

Allowance for loan credit losses to:

Total loans

0.51

%

0.56

%

0.52

%

Nonaccrual loans

500.5

%

344.9

%

524.4

%

__________

Quarter Quarter Ended Ended Year Ended December 31, September December 31, 30,

Selected Financial 2021 2020 2021 2021 2020Data and Ratios

($ in millions,except per share amounts)

Selected Financial Data and Ratios:

Return on average 0.89 % 0.84 % 0.86 % 0.89 % 0.82 %assets ^(1), (2)

Return on averagecommon 12.08 % 11.12 % 11.87 % 12.24 % 10.59 %shareholders'equity ^(1)

Return on averagetangible common 12.31 % 11.38 % 12.10 % 12.49 % 10.86 %shareholders'equity ^(1), (3)

Average equity to 8.50 % 8.20 % 8.37 % 8.28 % 8.31 %average assets

Dividends per $ 0.22 $ 0.20 $ 0.22 $ 0.86 $ 0.79 common share

Dividend payout 10.9 % 12.5 % 11.5 % 11.2 % 13.6 %ratio

Efficiency ratio ^ 63.3 % 61.6 % 61.3 % 62.5 % 61.9 %(4)



Net loancharge-offs $ 0.1 $ (0.6 ) $ 0.3 $ 2.1 $ 2.4 (recoveries)

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



Selected Ratios (period-end):

Book value per $ 68.34 $ 58.61 $ 66.44 common share

Tangible book valueper common share ^ $ 67.10 $ 57.30 $ 65.19 (5)



Allowance for loan credit losses to:

Total loans 0.51 % 0.56 % 0.52 %

Nonaccrual loans 500.5 % 344.9 % 524.4 %

__________

(1)

For periods less than a year, ratios are annualized.

(2)

Return on average assets is the ratio of net income to average assets.

(3)

Refer to "Return on Average Common Shareholders' Equity and Return on Average Tangible Common Shareholders' Equity" table in this document for a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure.

(4)

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

(5)

Refer to "Book Value per Common Share and Tangible Book Value per Common Share" table in this document for a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure.

^ For periods less than a year, ratios are annualized.(1)

^ Return on average assets is the ratio of net income to average assets.(2)

Refer to "Return on Average Common Shareholders' Equity and Return on^ Average Tangible Common Shareholders' Equity" table in this document for(3) a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure.

^ Efficiency ratio is the ratio of noninterest expense to the sum of net(4) interest income and noninterest income.

^ Refer to "Book Value per Common Share and Tangible Book Value per Common(5) Share" table in this document for a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure.

Quarter EndedDecember 31,

Quarter EndedSeptember 30,

Year EndedDecember 31,

Effective Tax Rate

2021

2020

2021

2021

2020

Effective tax rate, prior to excess tax benefits-stock awards and research and development tax credits from amended tax returns

22.0

%

22.5

%

23.2

%

22.3

%

21.5

%

Excess tax benefits-stock awards

(1.5

)

(0.4

)

(1.8

)

(2.1

)

(1.3

)

Research and development tax credits from amended tax returns

(4.4

)

-

-

(1.1

)

-

Effective tax rate

16.1

%

22.1

%

21.4

%

19.1

%

20.2

%

Quarter Quarter Ended Ended Year Ended December 31, September December 31, 30,

Effective Tax Rate 2021 2020 2021 2021 2020

Effective tax rate, prior toexcess tax benefits-stockawards and research and 22.0 % 22.5 % 23.2 % 22.3 % 21.5 %development tax credits fromamended tax returns

Excess tax benefits-stock (1.5 ) (0.4 ) (1.8 ) (2.1 ) (1.3 )awards

Research and development taxcredits from amended tax (4.4 ) - - (1.1 ) - returns

Effective tax rate 16.1 % 22.1 % 21.4 % 19.1 % 20.2 %

Provision (Reversal of Provision) for Credit Losses

Quarter EndedDecember 31,

Quarter EndedSeptember 30,

Year EndedDecember 31,

2021

2020

2021

2021

2020

($ in millions)

Debt securities held-to-maturity

$

-

$

1

$

-

$

2

$

2

Loans

26

29

32

61

143

Unfunded loan commitments

(2

)

5

2

(4

)

12

Total provision

$

24

$

35

$

34

$

59

$

157

Quarter Quarter Ended Ended Year EndedProvision (Reversal of Provision) December 31, September December 31,for Credit Losses 30,

2021 2020 2021 2021 2020

($ in millions)

Debt securities held-to-maturity $ - $ 1 $ - $ 2 $ 2

Loans 26 29 32 61 143

Unfunded loan commitments (2 ) 5 2 (4 ) 12

Total provision $ 24 $ 35 $ 34 $ 59 $ 157

Quarter EndedDecember 31,

Quarter EndedSeptember 30,

Year EndedDecember 31,

Mortgage Loan Sales

2021

2020

2021

2021

2020

($ in millions)

Loans sold:

Flow sales:

Agency

$

15

$

152

$

18

$

79

$

233

Non-agency

-

-

-

1

32

Total flow sales

15

152

18

80

265

Bulk sales:

Non-agency

-

-

-

-

673

Securitizations

-

-

-

-

300

Total loans sold

$

15

$

152

$

18

$

80

$

1,238

Gain on sale of loans:

Amount (1)

$

0.1

$

2.4

$

0.1

$

0.6

$

17.0

Gain as a percentage of loans sold

0.45

%

1.58

%

0.80

%

0.72

%

1.37

%

__________

Quarter Quarter Ended Ended Year Ended December 31, September December 31, 30,

Mortgage Loan Sales 2021 2020 2021 2021 2020

($ in millions)

Loans sold:

Flow sales:

Agency $ 15 $ 152 $ 18 $ 79 $ 233

Non-agency - - - 1 32

Total flow sales 15 152 18 80 265



Bulk sales:

Non-agency - - - - 673



Securitizations - - - - 300



Total loans sold $ 15 $ 152 $ 18 $ 80 $ 1,238



Gain on sale of loans:

Amount ^(1) $ 0.1 $ 2.4 $ 0.1 $ 0.6 $ 17.0

Gain as a percentage of 0.45 % 1.58 % 0.80 % 0.72 % 1.37 %loans sold

__________

(1)

Included in other noninterest income on the consolidated statements of income.

^(1) Included in other noninterest income on the consolidated statements of income.

Quarter EndedDecember 31,

Quarter EndedSeptember 30,

Year EndedDecember 31,

Loan Originations

2021

2020

2021

2021

2020

($ in millions)

Single family

$ 7,013

$ 7,778

$ 6,998

$ 29,575

$ 23,986

Home equity lines of credit

617

619

589

2,440

1,905

Single family construction

245

224

283

968

639

Multifamily

1,723

1,017

1,199

4,815

3,701

Commercial real estate

597

438

725

2,094

1,414

Multifamily/commercial construction

190

304

356

1,129

1,301

Capital call lines of credit

3,690

3,854

3,129

12,871

9,448

Tax-exempt

130

306

38

590

919

Other business

650

771

533

2,729

2,549

PPP

-

-

-

725

1,982

Stock secured

966

670

753

3,205

2,467

Other secured

546

413

547

2,130

1,375

Unsecured

517

312

304

1,539

998

Total loans originated

$ 16,884

$ 16,706

$ 15,454

$ 64,810

$ 52,684

Quarter Quarter Ended Ended Year Ended December 31, September December 31, 30,

Loan Originations 2021 2020 2021 2021 2020

($ in millions)

Single family $ $ $ 6,998 $ $ 7,013 7,778 29,575 23,986

Home equity lines of credit 617 619 589 2,440 1,905

Single family construction 245 224 283 968 639

Multifamily 1,723 1,017 1,199 4,815 3,701

Commercial real estate 597 438 725 2,094 1,414

Multifamily/commercial 190 304 356 1,129 1,301construction

Capital call lines of credit 3,690 3,854 3,129 12,871 9,448

Tax-exempt 130 306 38 590 919

Other business 650 771 533 2,729 2,549

PPP - - - 725 1,982

Stock secured 966 670 753 3,205 2,467

Other secured 546 413 547 2,130 1,375

Unsecured 517 312 304 1,539 998

Total loans originated $ $ $ 15,454 $ $ 16,884 16,706 64,810 52,684

As of

Asset Quality Information

December 31,2021

September 30,2021

June 30,2021

March 31,2021

December 31,2020

($ in millions)

Nonperforming assets:

Nonaccrual loans

$

139

$

127

$

133

$

173

$

184

Other real estate owned

-

-

-

1

-

Total nonperforming assets

$

139

$

127

$

133

$

174

$

184

Nonperforming assets to total assets

0.08

%

0.07

%

0.08

%

0.11

%

0.13

%

Accruing loans 90 days or more past due

$

-

$

-

$

-

$

1

$

-

Restructured accruing loans

$

13

$

10

$

11

$

12

$

11

As of

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

($ in millions)

Nonperforming assets:

Nonaccrual loans $ 139 $ 127 $ 133 $ 173 $ 184

Other real estate owned - - - 1 -

Total nonperforming $ 139 $ 127 $ 133 $ 174 $ 184 assets



Nonperforming assets to 0.08 % 0.07 % 0.08 % 0.11 % 0.13 %total assets



Accruing loans 90 days or $ - $ - $ - $ 1 $ - more past due



Restructured accruing $ 13 $ 10 $ 11 $ 12 $ 11 loans

As of

Loan Servicing Portfolio

December 31,2021

September 30,2021

June 30,2021

March 31,2021

December 31,2020

($ in millions)

Loans serviced for investors

$ 4,677

$ 5,117

$ 5,640

$ 6,314

$ 7,094

As of

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

($ in millions)

Loans serviced for $ 4,677 $ 5,117 $ $ 6,314 $ 7,094investors 5,640

Return on Average Common Shareholders' Equity and

Return on Average Tangible Common Shareholders'

Equity (1), (2)

Quarter EndedDecember 31,

Quarter EndedSeptember 30,

Year EndedDecember 31,

2021

2020

2021

2021

2020

($ in millions)

Average common shareholders' equity (a)

$

12,078

$

9,996

$

11,543

$

11,263

$

9,492

Less: Average goodwill and other intangible assets

(223

)

(228

)

(224

)

(225

)

(231

)

Average tangible common shareholders' equity (b)

$

11,855

$

9,768

$

11,319

$

11,038

$

9,261

Net income available to common shareholders (c)

$

368

$

279

$

345

$

1,379

$

1,005

Return on average common shareholders' equity (c) / (a)

12.08

%

11.12

%

11.87

%

12.24

%

10.59

%

Return on average tangible common shareholders' equity (c) / (b)

12.31

%

11.38

%

12.10

%

12.49

%

10.86

%

__________

Return onAverage Common QuarterShareholders' Quarter Ended Ended Year EndedEquity and December 31, September December 31, 30,Return onAverage TangibleCommonShareholders' 2021 2020 2021 2021 2020Equity ^(1), (2)

($ in millions)



Average commonshareholders' $ 12,078 $ 9,996 $ 11,543 $ 11,263 $ 9,492 equity (a)

Less: Averagegoodwill and (223 ) (228 ) (224 ) (225 ) (231 )other intangibleassets

Average tangiblecommon $ 11,855 $ 9,768 $ 11,319 $ 11,038 $ 9,261 shareholders'equity (b)



Net incomeavailable to $ 368 $ 279 $ 345 $ 1,379 $ 1,005 commonshareholders (c)



Return onaverage common 12.08 % 11.12 % 11.87 % 12.24 % 10.59 %shareholders'equity (c) / (a)

Return onaverage tangiblecommon 12.31 % 11.38 % 12.10 % 12.49 % 10.86 %shareholders'equity (c) / (b)

__________

(1)

Return on average tangible common shareholders' equity is considered a non-GAAP financial measure, and is reconciled to GAAP return on average common shareholders' equity in this table.

(2)

For periods less than a year, ratios are annualized.

^ Return on average tangible common shareholders' equity is considered a(1) non-GAAP financial measure, and is reconciled to GAAP return on average common shareholders' equity in this table.

^ For periods less than a year, ratios are annualized.(2)

As of

Book Value per Common Share and Tangible Book

Value per Common Share (1)

December 31,2021

September 30,2021

June 30,2021

March 31,2021

December 31,2020

(in millions, except per share amounts)

Total shareholders' equity

$

15,898

$

14,802

$

13,275

$

12,942

$

11,751

Less: Preferred stock

(3,633

)

(2,893

)

(2,143

)

(2,143

)

(1,545

)

Total common shareholders' equity (a)

12,265

11,909

11,132

10,799

10,206

Less: Goodwill and other intangible assets

(222

)

(223

)

(224

)

(226

)

(228

)

Total tangible common shareholders' equity (b)

$

12,043

$

11,686

$

10,908

$

10,573

$

9,978

Number of shares of common stock outstanding (c)

179

179

177

176

174

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

$

68.34

$

66.44

$

62.99

$

61.26

$

58.61

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

$

67.10

$

65.19

$

61.72

$

59.98

$

57.30

__________

As of

Book Value perCommon Shareand Tangible December September DecemberBook 31, 30, June 30, March 31, 31, 2021 2021 2021 2021 2020Value perCommon Share ^(1)

(in millions,except per share amounts)



Totalshareholders' $ 15,898 $ 14,802 $ 13,275 $ 12,942 $ 11,751 equity

Less:Preferred (3,633 ) (2,893 ) (2,143 ) (2,143 ) (1,545 )stock

Total commonshareholders' 12,265 11,909 11,132 10,799 10,206 equity (a)

Less: Goodwilland other (222 ) (223 ) (224 ) (226 ) (228 )intangibleassets

Total tangiblecommon $ 12,043 $ 11,686 $ 10,908 $ 10,573 $ 9,978 shareholders'equity (b)



Number ofshares ofcommon stock 179 179 177 176 174 outstanding(c)



Book value percommon share $ 68.34 $ 66.44 $ 62.99 $ 61.26 $ 58.61 (a) / (c)

Tangible bookvalue per $ 67.10 $ 65.19 $ 61.72 $ 59.98 $ 57.30 common share(b) / (c)

__________

(1)

Tangible book value per common share is considered a non-GAAP financial measure, and is reconciled to GAAP book value per common share in this table.

^ Tangible book value per common share is considered a non-GAAP financial(1) measure, and is reconciled to GAAP book value per common share in this table.

As of

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

December 31,2021 (3)

September 30,2021

June 30,2021

March 31,2021

December 31,2020

($ in millions)

Capital Ratios:

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

8.76

%

8.55

%

8.05

%

8.32

%

8.14

%

Common Equity Tier 1 capital to risk-weighted assets

9.65

%

9.81

%

9.51

%

9.64

%

9.67

%

Tier 1 capital to risk-weighted assets

12.56

%

12.25

%

11.38

%

11.60

%

11.18

%

Total capital to risk-weighted assets

13.72

%

13.45

%

12.60

%

12.87

%

12.55

%

Regulatory Capital:

Common Equity Tier 1 capital

$

12,045

$

11,674

$

10,875

$

10,549

$

9,895

Tier 1 capital

$

15,678

$

14,566

$

13,018

$

12,691

$

11,440

Total capital

$

17,124

$

15,994

$

14,421

$

14,082

$

12,842

Assets:

Average assets

$

178,969

$

170,373

$

161,637

$

152,465

$

140,493

Risk-weighted assets

$

124,820

$

118,941

$

114,406

$

109,413

$

102,321

__________

As of

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

($ in millions)



Capital Ratios:

Tier 1leverageratio (Tier 1 8.76 % 8.55 % 8.05 % 8.32 % 8.14 %capital toaverageassets)

Common EquityTier 1capital to 9.65 % 9.81 % 9.51 % 9.64 % 9.67 %risk-weightedassets

Tier 1capital to 12.56 % 12.25 % 11.38 % 11.60 % 11.18 %risk-weightedassets

Total capitalto 13.72 % 13.45 % 12.60 % 12.87 % 12.55 %risk-weightedassets



Regulatory Capital:

Common EquityTier 1 $ 12,045 $ 11,674 $ 10,875 $ 10,549 $ 9,895 capital

Tier 1 $ 15,678 $ 14,566 $ 13,018 $ 12,691 $ 11,440 capital

Total capital $ 17,124 $ 15,994 $ 14,421 $ 14,082 $ 12,842



Assets:

Average $ 178,969 $ 170,373 $ 161,637 $ 152,465 $ 140,493 assets

Risk-weighted $ 124,820 $ 118,941 $ 114,406 $ 109,413 $ 102,321 assets

__________

(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 December 31, 2021 are preliminary.

^ As defined by regulatory capital rules.(1)

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

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

As of

Wealth Management Assets

December 31,2021

September 30,2021

June 30,2021

March 31,2021

December 31,2020

($ in millions)

First Republic Investment Management

$

109,130

$

101,105

$

99,459

$

90,819

$

83,596

Brokerage and investment:

Brokerage

128,258

115,793

112,359

101,478

88,059

Money market mutual funds

23,673

18,074

13,109

11,435

9,003

Total brokerage and investment

151,931

133,867

125,468

112,913

97,062

Trust Company:

Trust

13,695

12,220

11,496

10,986

9,910

Custody

4,687

4,533

4,439

4,216

3,889

Total Trust Company

18,382

16,753

15,935

15,202

13,799

Total Wealth Management Assets

$

279,443

$

251,725

$

240,862

$

218,934

$

194,457

View source version on businesswire.com: https://www.businesswire.com/news/home/20220114005074/en/

CONTACT: Investors: Andrew Greenebaum / Lasse Glassen Addo Investor Relations agreenebaum@addo.com lglassen@addo.com (310) 829-5400

CONTACT: Media: Greg Berardi Blue Marlin Partners gberardi@firstrepublic.com (415) 239-7826