FRC
$103.08
First Republic Bank
($.54)
(.52%)
Earnings Details
3rd Quarter September 2019
Tuesday, October 15, 2019 8:00:00 AM
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Summary

First Republic Bank Beats

First Republic Bank (FRC) reported 3rd Quarter September 2019 earnings of $1.31 per share on revenue of $1.1 billion. The consensus earnings estimate was $1.21 per share on revenue of $840.3 million. The Earnings Whisper number was $1.20 per share. Revenue grew 15.0% on a year-over-year basis.

First Republic Bank and its subsidiaries provides private banking, private business banking and private wealth management, including investment, trust and brokerage services.

Results
Reported Earnings
$1.31
Earnings Whisper
$1.20
Consensus Estimate
$1.21
Reported Revenue
$1.05 Bil
Revenue Estimate
$840.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

First Republic Reports Strong Third Quarter 2019 Results

Record Loan Origination Quarter; Revenues Increased 9% Year-Over-Year

SAN FRANCISCO--(BUSINESS WIRE)--First Republic Bank (NYSE: FRC) today announced financial results for the quarter ended September 30, 2019.

“Third quarter results were very strong,” said Jim Herbert, Chairman, CEO & Founder. “Loans, deposits and wealth management assets grew nicely. Our client-focused business model continues to perform very well.”

Quarterly Highlights

Financial Results

  • Year-over-year:
    • Revenues were $837.2 million, up 8.9%.
    • Net interest income was $695.0 million, up 9.5%.
    • Net income was $234.8 million, up 10.0%.
    • Diluted earnings per share of $1.31, up 10.1%.
    • Tangible book value per share was $48.84, up 11.0%.
  • Loan originations totaled $11.1 billion, our strongest quarter ever.
  • Net interest margin was 2.80%, compared to 2.85% last quarter.
  • Efficiency ratio was 63.8%, compared to 64.5% last quarter.

Continued Capital and Credit Strength

  • Common Equity Tier 1 ratio was 9.91%, compared to 10.47% a year ago.
  • Nonperforming assets remained at a low 12 basis points of total assets.
  • Net charge-offs were only $4.3 million, or 2 basis points of average loans.

Continued Franchise Development

  • Year-over-year:
    • Loans, excluding loans held for sale, totaled $86.3 billion, up 19.3%.
    • Deposits were $85.7 billion, up 14.7%.
    • Wealth management assets were $140.2 billion, up 7.1%.
    • Wealth management revenues were $114.8 million, up 4.7%.

“We’re pleased with year-over-year revenue growth of 9%,” said Mike Roffler, Chief Financial Officer. “Loan volume for the quarter was another record, and credit quality and capital strength remain excellent.”

Quarterly Cash Dividend Declared

The Bank declared a cash dividend for the third quarter of $0.19 per share of common stock, which is payable on November 14, 2019 to shareholders of record as of October 31, 2019.

Very Strong Asset Quality

Credit quality remains strong. Nonperforming assets were only 12 basis points of total assets at September 30, 2019.

The Bank had net charge-offs for the quarter of $4.3 million, while adding $16.7 million to its allowance for loan losses due to continued loan growth.

Continued Capital Strength

The Bank’s Common Equity Tier 1 ratio was 9.91% at September 30, 2019, compared to 10.47% a year ago.

As previously announced, the Bank will redeem its $190.0 million of 5.50% Noncumulative Perpetual Series D Preferred Stock on October 18, 2019.

Tangible Book Value Growth

Tangible book value per common share at September 30, 2019 was $48.84, up 11.0% from a year ago.

Continued Franchise Development

Loan Originations

Loan originations were $11.1 billion for the quarter, up 58.4% compared to the same quarter a year ago, primarily due to increases in single family and business lending.

Loans, excluding loans held for sale, totaled $86.3 billion at September 30, 2019, up 19.3% compared to a year ago, primarily due to increases in single family, multifamily, business, and commercial real estate loans.

Deposit Growth

Total deposits increased to $85.7 billion, up 14.7% compared to a year ago.

At September 30, 2019, checking accounts totaled 58.5% of deposits.

Investments

Total investment securities at September 30, 2019 were $17.4 billion, up 7.7% compared to the prior quarter and up 6.8% compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $13.6 billion at September 30, 2019, and represented 12.7% of average total assets.

Wealth Management

Wealth management revenues totaled $114.8 million for the quarter, up 4.7% compared to last year’s third quarter. Such revenues represented 13.7% of the Bank’s total revenues for the quarter.

Total wealth management assets were $140.2 billion at September 30, 2019, up 1.9% for the quarter and up 7.1% compared to a year ago. The increases in wealth management assets were driven by net new assets from existing and new clients, and market appreciation.

Wealth management assets included investment management assets of $61.2 billion, brokerage assets and money market mutual funds of $67.5 billion, and trust and custody assets of $11.6 billion.

Income Statement and Key Ratios

Revenue Growth

Total revenues were $837.2 million for the quarter, up 8.9% compared to the third quarter a year ago.

Net Interest Income Growth

Net interest income was $695.0 million for the quarter, up 9.5% compared to the third quarter a year ago. The increase in net interest income resulted primarily from growth in average earning assets.

Net Interest Margin

The net interest margin was 2.80% for the third quarter, compared to 2.85% for the prior quarter. The decline was primarily due to a more rapid decrease in the average yield on loans, compared to the offsetting decrease in total funding costs.

Noninterest Income

Noninterest income was $142.2 million for the quarter, up 5.8% compared to the third quarter a year ago. The increase was primarily from growth in brokerage and investment fees and foreign exchange fee income, partially offset by a decline in investment management fees attributable to the departure of wealth managers in the second quarter.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $534.0 million for the quarter, up 10.3% compared to the third quarter a year ago. The increase was primarily due to increased salaries and benefits, occupancy and information systems expenses from the continued investments in the expansion of the franchise.

The efficiency ratio was 63.8% for the quarter, compared to 63.0% for the third quarter a year ago. For the first nine months of 2019, the efficiency ratio was 64.4%.

Income Taxes

The Bank’s effective tax rate for the third quarter of 2019 was 18.0%, compared to 19.8% for the third quarter a year ago. For the first nine months of 2019, the Bank’s effective tax rate was 17.0%, compared to 18.6% a year ago. The decreases were primarily the result of higher excess tax benefits from an increase in stock option exercises by employees.

Conference Call Details

First Republic Bank’s third quarter 2019 earnings conference call is scheduled for October 15, 2019 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (800) 353-6461 and use confirmation code #7297625 approximately 10 minutes prior to the start time (to allow time for registration). International callers should dial +1 (334) 323-0501 and enter the same confirmation code.

The call will also be broadcast live over the Internet and can be accessed in the Investor Relations section of First Republic’s website at firstrepublic.com. To listen to the live webcast, please visit the site at least 10 minutes prior to the start time to register, download and install any necessary audio software.

For those unable to join the live presentation, a replay of the call will be available beginning October 15, 2019, at 11:00 a.m. PT / 2:00 p.m. ET, through October 22, 2019, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (888) 203-1112 and use confirmation code #7297625. International callers should dial +1 (719) 457-0820 and enter the same confirmation code. A replay of the webcast also will be available for 90 days following, accessible in the Investor Relations section of First Republic Bank’s website at firstrepublic.com.

The Bank’s press releases are available after release in the Investor Relations section of First Republic Bank’s website at firstrepublic.com.

About First Republic Bank

Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service and offers a complete line of products, including residential, commercial and personal loans, deposit services, and wealth management. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; and Jackson, Wyoming. First Republic is a constituent of the S&P 500 Index and KBW Nasdaq Bank Index. For more information, visit firstrepublic.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimates,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them.

Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: significant competition to attract and retain banking and wealth management customers, from both traditional and non-traditional financial services and technology companies; our ability to recruit and retain key managers, employees and board members; the possibility of earthquakes, fires and other natural disasters affecting the markets in which we operate; interest rate risk and credit risk; our ability to maintain and follow high underwriting standards; economic and market conditions, including those affecting the valuation of our investment securities portfolio, which could result in other-than-temporary impairment if the general economy deteriorates, credit ratings decline, the financial condition of issuers deteriorates, interest rates increase or the liquidity for securities is limited; real estate prices generally and in our markets; our geographic and product concentrations; demand for our products and services; developments and uncertainty related to the future use and availability of reference rates, such as the London Interbank Offered Rate and the 11th District Monthly Weighted Average Cost of Funds Index; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; the impact of tax reform legislation; any future changes to regulatory capital requirements; legislative and regulatory actions affecting us and the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), including increased compliance costs, limitations on activities and requirements to hold additional capital, as well as changes to the Dodd-Frank Act pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act; our ability to avoid litigation and its associated costs and liabilities; the impact of new accounting standards; future Federal Deposit Insurance Corporation (“FDIC”) special assessments or changes to regular assessments; fraud, cybersecurity and privacy risks; and custom technology preferences of our customers and our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications. For a discussion of these and other risks and uncertainties, see First Republic’s FDIC filings, including, but not limited to, the risk factors in First Republic’s Annual Report on Form 10-K and any subsequent reports filed by First Republic with the FDIC. These filings are available in the Investor Relations section of our website.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout our public filings under the Exchange Act. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

CONSOLIDATED STATEMENTS OF INCOME

 

 

 

Quarter Ended
September 30,

 

Quarter Ended
June 30,

 

Nine Months Ended
September 30,

(in thousands, except per share amounts)

 

2019

 

2018

 

2019

2019

 

2018

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

764,468

 

 

$

633,794

 

 

$

741,328

 

 

$

2,205,884

 

 

$

1,765,019

 

Investments

 

134,099

 

 

134,111

 

 

134,044

 

 

401,908

 

 

406,373

 

Other

 

5,779

 

 

5,237

 

 

4,813

 

 

15,767

 

 

15,065

 

Cash and cash equivalents

 

5,430

 

 

6,896

 

 

5,547

 

 

18,966

 

 

16,494

 

Total interest income

 

909,776

 

 

780,038

 

 

885,732

 

 

2,642,525

 

 

2,202,951

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

134,917

 

 

81,438

 

 

129,188

 

 

371,852

 

 

193,852

 

Borrowings

 

79,874

 

 

64,146

 

 

82,518

 

 

226,624

 

 

175,194

 

Total interest expense

 

214,791

 

 

145,584

 

 

211,706

 

 

598,476

 

 

369,046

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

694,985

 

 

634,454

 

 

674,026

 

 

2,044,049

 

 

1,833,905

 

Provision for loan losses

 

16,711

 

 

18,633

 

 

21,200

 

 

52,111

 

 

51,003

 

Net interest income after provision for loan losses

 

678,274

 

 

615,821

 

 

652,826

 

 

1,991,938

 

 

1,782,902

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Investment management fees

 

83,582

 

 

88,560

 

 

93,720

 

 

262,226

 

 

249,602

 

Brokerage and investment fees

 

12,673

 

 

7,207

 

 

8,287

 

 

28,619

 

 

23,770

 

Insurance fees

 

2,712

 

 

1,851

 

 

3,696

 

 

8,522

 

 

4,646

 

Trust fees

 

4,105

 

 

3,599

 

 

4,227

 

 

12,221

 

 

10,694

 

Foreign exchange fee income

 

11,685

 

 

8,439

 

 

10,345

 

 

30,661

 

 

25,383

 

Deposit fees

 

6,563

 

 

6,225

 

 

6,579

 

 

19,462

 

 

18,490

 

Loan and related fees

 

5,341

 

 

4,091

 

 

4,296

 

 

13,644

 

 

11,842

 

Loan servicing fees, net

 

2,347

 

 

3,151

 

 

3,425

 

 

9,560

 

 

9,856

 

Gain (loss) on sale of loans

 

122

 

 

303

 

 

(15

)

 

466

 

 

5,037

 

Gain (loss) on investment securities

 

(683

)

 

(1,655

)

 

(1,063

)

 

(1,895

)

 

6,515

 

Income from investments in life insurance

 

12,152

 

 

11,608

 

 

10,049

 

 

31,536

 

 

30,697

 

Other income

 

1,608

 

 

996

 

 

1,804

 

 

4,853

 

 

3,366

 

Total noninterest income

 

142,207

 

 

134,375

 

 

145,350

 

 

419,875

 

 

399,898

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

309,655

 

 

279,248

 

 

297,524

 

 

920,432

 

 

828,207

 

Information systems

 

66,612

 

 

59,259

 

 

70,277

 

 

204,059

 

 

177,753

 

Occupancy

 

50,722

 

 

38,792

 

 

47,587

 

 

142,204

 

 

112,180

 

Professional fees

 

17,507

 

 

15,718

 

 

16,435

 

 

45,623

 

 

44,720

 

Advertising and marketing

 

15,912

 

 

13,527

 

 

16,700

 

 

48,346

 

 

40,575

 

FDIC assessments

 

9,748

 

 

17,679

 

 

9,196

 

 

27,847

 

 

49,275

 

Other expenses

 

63,794

 

 

59,776

 

 

71,135

 

 

199,105

 

 

165,427

 

Total noninterest expense

 

533,950

 

 

483,999

 

 

528,854

 

 

1,587,616

 

 

1,418,137

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

286,531

 

 

266,197

 

 

269,322

 

 

824,197

 

 

764,663

 

Provision for income taxes

 

51,687

 

 

52,651

 

 

46,758

 

 

140,198

 

 

142,253

 

Net income

 

234,844

 

 

213,546

 

 

222,564

 

 

683,999

 

 

622,410

 

Dividends on preferred stock

 

12,787

 

 

17,112

 

 

12,788

 

 

38,362

 

 

41,497

 

Net income available to common shareholders

 

$

222,057

 

 

$

196,434

 

 

$

209,776

 

 

$

645,637

 

 

$

580,913

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

1.32

 

 

$

1.20

 

 

$

1.25

 

 

$

3.85

 

 

$

3.58

 

Diluted earnings per common share

 

$

1.31

 

 

$

1.19

 

 

$

1.24

 

 

$

3.81

 

 

$

3.52

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares—basic

 

168,272

 

 

163,048

 

 

167,685

 

 

167,694

 

 

162,322

 

Weighted average shares—diluted

 

169,346

 

 

165,498

 

 

169,572

 

 

169,449

 

 

165,109

 

CONSOLIDATED BALANCE SHEETS

 

 

As of

($ in thousands)

 

September 30,
2019

 

June 30,
2019

 

December 31,
2018

 

September 30,
2018

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,181,600

 

 

$

2,220,073

 

 

$

2,811,159

 

 

$

3,013,645

 

Debt securities available-for-sale

 

1,401,105

 

 

1,438,061

 

 

1,779,116

 

 

2,000,271

 

Debt securities held-to-maturity

 

16,002,722

 

 

14,721,568

 

 

14,436,973

 

 

14,294,769

 

Equity securities (fair value)

 

19,736

 

 

19,529

 

 

18,719

 

 

19,121

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

Single family (1-4 units)

 

44,882,363

 

 

41,758,981

 

 

37,955,252

 

 

36,213,714

 

Home equity lines of credit

 

2,530,740

 

 

2,587,554

 

 

2,542,713

 

 

2,543,652

 

Multifamily (5+ units)

 

11,725,331

 

 

11,216,640

 

 

10,357,839

 

 

9,779,693

 

Commercial real estate

 

7,504,334

 

 

7,251,509

 

 

6,677,440

 

 

6,459,654

 

Single family construction

 

743,699

 

 

702,928

 

 

645,924

 

 

654,643

 

Multifamily/commercial construction

 

1,442,896

 

 

1,470,699

 

 

1,576,582

 

 

1,422,746

 

Business

 

11,564,863

 

 

11,686,510

 

 

10,998,503

 

 

10,382,050

 

Stock secured

 

1,610,914

 

 

1,514,855

 

 

1,432,911

 

 

1,371,546

 

Other secured

 

1,293,084

 

 

1,235,588

 

 

1,105,751

 

 

1,101,721

 

Unsecured

 

3,006,586

 

 

2,812,357

 

 

2,572,367

 

 

2,399,078

 

Total loans

 

86,304,810

 

 

82,237,621

 

 

75,865,282

 

 

72,328,497

 

Allowance for loan losses

 

(485,465

)

 

(473,095

)

 

(439,048

)

 

(415,825

)

Loans, net

 

85,819,345

 

 

81,764,526

 

 

75,426,234

 

 

71,912,672

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

31,693

 

 

12,502

 

 

98,985

 

 

274,181

 

Investments in life insurance

 

1,425,057

 

 

1,412,883

 

 

1,376,579

 

 

1,361,473

 

Tax credit investments

 

1,039,061

 

 

1,054,192

 

 

1,057,541

 

 

1,074,834

 

Prepaid expenses and other assets

 

2,424,383

 

 

2,390,649

 

 

1,538,971

 

 

1,483,892

 

Premises, equipment and leasehold improvements, net

 

373,693

 

 

348,609

 

 

332,483

 

 

324,052

 

Goodwill and other intangible assets

 

264,658

 

 

267,490

 

 

273,974

 

 

277,625

 

Mortgage servicing rights

 

45,682

 

 

49,554

 

 

54,470

 

 

57,687

 

Total Assets

 

$

111,028,735

 

 

$

105,699,636

 

 

$

99,205,204

 

 

$

96,094,222

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing checking

 

$

32,720,317

 

 

$

32,023,125

 

 

$

30,033,658

 

 

$

29,317,754

 

Interest-bearing checking

 

17,438,402

 

 

16,649,251

 

 

17,089,520

 

 

15,517,614

 

Money market checking

 

11,242,205

 

 

10,874,671

 

 

10,317,436

 

 

9,708,305

 

Money market savings and passbooks

 

10,277,249

 

 

9,921,688

 

 

10,245,107

 

 

8,961,311

 

Certificates of deposit

 

14,042,346

 

 

13,962,348

 

 

11,377,515

 

 

11,254,268

 

Total Deposits

 

85,720,519

 

 

83,431,083

 

 

79,063,236

 

 

74,759,252

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

775,000

 

 

 

 

100,000

 

 

100,000

 

Long-term FHLB advances

 

10,900,000

 

 

9,800,000

 

 

8,700,000

 

 

9,600,000

 

Senior notes

 

497,494

 

 

497,269

 

 

896,432

 

 

896,001

 

Subordinated notes

 

777,781

 

 

777,678

 

 

777,475

 

 

777,376

 

Other liabilities

 

2,926,735

 

 

1,973,963

 

 

990,284

 

 

1,294,906

 

Total Liabilities

 

101,597,529

 

 

96,479,993

 

 

90,527,427

 

 

87,427,535

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

Preferred stock

 

940,000

 

 

940,000

 

 

940,000

 

 

1,140,000

 

Common stock

 

1,685

 

 

1,682

 

 

1,649

 

 

1,648

 

Additional paid-in capital

 

4,198,442

 

 

4,186,304

 

 

4,024,306

 

 

4,000,146

 

Retained earnings

 

4,281,249

 

 

4,091,636

 

 

3,731,205

 

 

3,546,298

 

Accumulated other comprehensive income (loss)

 

9,830

 

 

21

 

 

(19,383

)

 

(21,405

)

Total Shareholders’ Equity

 

9,431,206

 

 

9,219,643

 

 

8,677,777

 

 

8,666,687

 

Total Liabilities and Shareholders’ Equity

 

$

111,028,735

 

 

$

105,699,636

 

 

$

99,205,204

 

 

$

96,094,222

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30,

 

Quarter Ended June 30,

 

 

2019

 

2018

 

2019

Average Balances, Yields and Rates

 

Average
Balance

 

Interest Income/
Expense (1)

 

Yields/
Rates (2)

 

Average
Balance

 

Interest Income/
Expense (1)

 

Yields/
Rates (2)

 

Average
Balance

 

Interest Income/
Expense (1)

 

Yields/
Rates (2)

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,161,441

 

 

$

5,430

 

 

1.86

%

 

$

1,490,468

 

 

$

6,896

 

 

1.84

%

 

$

1,091,353

 

 

$

5,547

 

 

2.04

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored agency securities

 

740,893

 

 

5,375

 

 

2.90

%

 

1,044,897

 

 

7,776

 

 

2.98

%

 

1,031,797

 

 

7,675

 

 

2.98

%

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency residential and commercial MBS

 

6,593,422

 

 

46,762

 

 

2.84

%

 

7,355,930

 

 

51,705

 

 

2.81

%

 

6,669,868

 

 

47,724

 

 

2.86

%

Other residential and commercial MBS

 

4,473

 

 

43

 

 

3.84

%

 

4,690

 

 

37

 

 

3.16

%

 

4,523

 

 

43

 

 

3.78

%

Municipal securities

 

9,184,274

 

 

101,154

 

 

4.41

%

 

7,989,269

 

 

93,425

 

 

4.68

%

 

8,497,645

 

 

96,980

 

 

4.57

%

Other investment securities (3)

 

24,977

 

 

156

 

 

2.49

%

 

19,669

 

 

115

 

 

2.34

%

 

19,332

 

 

127

 

 

2.63

%

Total investment securities

 

16,548,039

 

 

153,490

 

 

3.71

%

 

16,414,455

 

 

153,058

 

 

3.73

%

 

16,223,165

 

 

152,549

 

 

3.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

45,754,902

 

 

374,690

 

 

3.27

%

 

37,929,270

 

 

306,521

 

 

3.23

%

 

42,856,354

 

 

357,475

 

 

3.34

%

Multifamily

 

11,446,955

 

 

112,624

 

 

3.85

%

 

9,907,089

 

 

94,352

 

 

3.73

%

 

11,064,723

 

 

110,508

 

 

3.95

%

Commercial real estate

 

7,366,320

 

 

79,213

 

 

4.21

%

 

6,369,984

 

 

67,360

 

 

4.14

%

 

7,013,324

 

 

75,180

 

 

4.24

%

Construction

 

2,152,911

 

 

26,599

 

 

4.83

%

 

1,996,313

 

 

24,286

 

 

4.76

%

 

2,161,475

 

 

26,534

 

 

4.86

%

Business

 

11,551,439

 

 

129,314

 

 

4.38

%

 

9,828,856

 

 

108,350

 

 

4.31

%

 

11,410,239

 

 

131,658

 

 

4.57

%

Other

 

5,704,872

 

 

48,746

 

 

3.34

%

 

4,744,162

 

 

39,593

 

 

3.27

%

 

5,346,380

 

 

46,581

 

 

3.45

%

Total loans

 

83,977,399

 

 

771,186

 

 

3.63

%

 

70,775,674

 

 

640,462

 

 

3.58

%

 

79,852,495

 

 

747,936

 

 

3.73

%

FHLB stock

 

321,778

 

 

5,779

 

 

7.13

%

 

298,880

 

 

5,237

 

 

6.95

%

 

331,218

 

 

4,813

 

 

5.83

%

Total interest-earning assets

 

102,008,657

 

 

935,885

 

 

3.63

%

 

88,979,477

 

 

805,653

 

 

3.59

%

 

97,498,231

 

 

910,845

 

 

3.72

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning cash

 

335,648

 

 

 

 

 

 

353,753

 

 

 

 

 

 

345,174

 

 

 

 

 

Goodwill and other intangibles

 

266,032

 

 

 

 

 

 

279,523

 

 

 

 

 

 

269,404

 

 

 

 

 

Other assets

 

4,409,665

 

 

 

 

 

 

3,518,736

 

 

 

 

 

 

4,312,290

 

 

 

 

 

Total noninterest-earning assets

 

5,011,345

 

 

 

 

 

 

4,152,012

 

 

 

 

 

 

4,926,868

 

 

 

 

 

Total Assets

 

$

107,020,002

 

 

 

 

 

 

$

93,131,489

 

 

 

 

 

 

$

102,425,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

48,666,948

 

 

8,501

 

 

0.07

%

 

$

44,102,853

 

 

5,186

 

 

0.05

%

 

$

45,813,205

 

 

6,946

 

 

0.06

%

Money market checking and savings

 

20,536,777

 

 

53,046

 

 

1.02

%

 

18,095,858

 

 

31,313

 

 

0.69

%

 

19,323,615

 

 

51,536

 

 

1.07

%

CDs

 

13,170,046

 

 

73,370

 

 

2.21

%

 

9,770,083

 

 

44,939

 

 

1.82

%

 

12,799,189

 

 

70,706

 

 

2.22

%

Total deposits

 

82,373,771

 

 

134,917

 

 

0.65

%

 

71,968,794

 

 

81,438

 

 

0.45

%

 

77,936,009

 

 

129,188

 

 

0.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

2,204,262

 

 

12,520

 

 

2.25

%

 

423,383

 

 

2,248

 

 

2.11

%

 

2,875,590

 

 

18,282

 

 

2.55

%

Long-term FHLB advances

 

9,796,739

 

 

54,901

 

 

2.22

%

 

9,681,793

 

 

46,872

 

 

1.92

%

 

9,132,967

 

 

49,601

 

 

2.18

%

Senior notes (4)

 

497,384

 

 

3,350

 

 

2.69

%

 

895,791

 

 

5,928

 

 

2.65

%

 

835,544

 

 

5,534

 

 

2.65

%

Subordinated notes (4)

 

777,730

 

 

9,103

 

 

4.68

%

 

777,328

 

 

9,098

 

 

4.68

%

 

777,628

 

 

9,101

 

 

4.68

%

Total borrowings

 

13,276,115

 

 

79,874

 

 

2.39

%

 

11,778,295

 

 

64,146

 

 

2.16

%

 

13,621,729

 

 

82,518

 

 

2.43

%

Total interest-bearing liabilities

 

95,649,886

 

 

214,791

 

 

0.89

%

 

83,747,089

 

 

145,584

 

 

0.69

%

 

91,557,738

 

 

211,706

 

 

0.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities

 

2,037,177

 

 

 

 

 

 

894,573

 

 

 

 

 

 

1,733,674

 

 

 

 

 

Preferred equity

 

940,000

 

 

 

 

 

 

1,140,000

 

 

 

 

 

 

940,000

 

 

 

 

 

Common equity

 

8,392,939

 

 

 

 

 

 

7,349,827

 

 

 

 

 

 

8,193,687

 

 

 

 

 

Total Liabilities and Equity

 

$

107,020,002

 

 

 

 

 

 

$

93,131,489

 

 

 

 

 

 

$

102,425,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (5)

 

 

 

 

 

2.74

%

 

 

 

 

 

2.90

%

 

 

 

 

 

2.79

%

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

 

 

 

$

721,094

 

 

2.80

%

 

 

 

$

660,069

 

 

2.94

%

 

 

 

$

699,139

 

 

2.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of tax-equivalent net interest income to reported net interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent adjustment

 

(26,109

)

 

 

 

 

 

(25,615

)

 

 

 

 

 

(25,113

)

 

 

Net interest income, as reported

 

$

694,985

 

 

 

 

 

 

$

634,454

 

 

 

 

 

 

$

674,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2019

 

2018

Average Balances, Yields and Rates

 

Average
Balance

 

Interest Income/
Expense (1)

 

Yields/
Rates (2)

 

Average
Balance

 

Interest Income/
Expense (1)

 

Yields/
Rates (2)

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,231,578

 

 

$

18,966

 

 

2.06

%

 

$

1,341,984

 

 

$

16,494

 

 

1.64

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and other U.S. Government agency securities

 

 

 

 

 

%

 

6,277

 

 

87

 

 

1.85

%

U.S. Government-sponsored agency securities

 

938,081

 

 

20,827

 

 

2.96

%

 

1,081,651

 

 

23,989

 

 

2.96

%

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Agency residential and commercial MBS

 

6,705,085

 

 

144,106

 

 

2.87

%

 

7,462,205

 

 

152,656

 

 

2.73

%

Other residential and commercial MBS

 

4,508

 

 

131

 

 

3.88

%

 

5,167

 

 

222

 

 

5.73

%

Municipal securities

 

8,624,534

 

 

293,060

 

 

4.53

%

 

8,139,055

 

 

287,447

 

 

4.71

%

Other investment securities (3)

 

21,121

 

 

403

 

 

2.54

%

 

19,838

 

 

359

 

 

2.41

%

Total investment securities

 

16,293,329

 

 

458,527

 

 

3.75

%

 

16,714,193

 

 

464,760

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

43,212,351

 

 

1,073,950

 

 

3.31

%

 

36,374,722

 

 

859,923

 

 

3.15

%

Multifamily

 

11,039,188

 

 

323,788

 

 

3.87

%

 

9,386,554

 

 

260,084

 

 

3.65

%

Commercial real estate

 

7,042,107

 

 

226,874

 

 

4.25

%

 

6,264,665

 

 

195,345

 

 

4.11

%

Construction

 

2,164,414

 

 

79,888

 

 

4.87

%

 

1,889,493

 

 

67,149

 

 

4.69

%

Business

 

11,216,470

 

 

382,143

 

 

4.49

%

 

9,204,049

 

 

295,925

 

 

4.24

%

Other

 

5,382,125

 

 

139,274

 

 

3.41

%

 

4,377,812

 

 

106,081

 

 

3.20

%

Total loans

 

80,056,655

 

 

2,225,917

 

 

3.69

%

 

67,497,295

 

 

1,784,507

 

 

3.51

%

FHLB stock

 

310,758

 

 

15,768

 

 

6.78

%

 

293,369

 

 

15,065

 

 

6.87

%

Total interest-earning assets

 

97,892,320

 

 

2,719,178

 

 

3.69

%

 

85,846,841

 

 

2,280,826

 

 

3.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning cash

 

341,984

 

 

 

 

 

 

348,613

 

 

 

 

 

Goodwill and other intangibles

 

269,246

 

 

 

 

 

 

283,651

 

 

 

 

 

Other assets

 

4,306,791

 

 

 

 

 

 

3,477,584

 

 

 

 

 

Total noninterest-earning assets

 

4,918,021

 

 

 

 

 

 

4,109,848

 

 

 

 

 

Total Assets

 

$

102,810,341

 

 

 

 

 

 

$

89,956,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

47,006,632

 

 

21,541

 

 

0.06

%

 

$

43,312,861

 

 

16,173

 

 

0.05

%

Money market checking and savings

 

19,714,378

 

 

146,900

 

 

1.00

%

 

17,374,636

 

 

71,238

 

 

0.55

%

CDs

 

12,457,649

 

 

203,411

 

 

2.18

%

 

8,715,306

 

 

106,441

 

 

1.63

%

Total deposits

 

79,178,659

 

 

371,852

 

 

0.63

%

 

69,402,803

 

 

193,852

 

 

0.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

2,016,744

 

 

36,832

 

 

2.44

%

 

841,818

 

 

11,409

 

 

1.81

%

Long-term FHLB advances

 

9,149,268

 

 

147,669

 

 

2.16

%

 

8,985,073

 

 

118,716

 

 

1.77

%

Senior notes (4)

 

741,731

 

 

14,818

 

 

2.66

%

 

895,368

 

 

17,777

 

 

2.65

%

Subordinated notes (4)

 

777,629

 

 

27,305

 

 

4.68

%

 

777,231

 

 

27,292

 

 

4.68

%

Total borrowings

 

12,685,372

 

 

226,624

 

 

2.39

%

 

11,499,490

 

 

175,194

 

 

2.04

%

Total interest-bearing liabilities

 

91,864,031

 

 

598,476

 

 

0.87

%

 

80,902,293

 

 

369,046

 

 

0.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities

 

1,780,107

 

 

 

 

 

 

924,458

 

 

 

 

 

Preferred equity

 

940,000

 

 

 

 

 

 

961,978

 

 

 

 

 

Common equity

 

8,226,203

 

 

 

 

 

 

7,167,960

 

 

 

 

 

Total Liabilities and Equity

 

$

102,810,341

 

 

 

 

 

 

$

89,956,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (5)

 

 

 

 

 

2.82

%

 

 

 

 

 

2.92

%

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

 

$

2,120,702

2.87

%

 

$

1,911,780

 

2.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of tax-equivalent net interest income to reported net interest income:

 

 

 

 

 

 

 

 

 

 

Tax-equivalent adjustment

 

 

 

(76,653

)

 

 

 

 

 

(77,875

)

 

 

Net interest income, as reported

 

 

 

$

2,044,049

 

 

 

 

 

 

$

1,833,905

 

 

 

__________

 

 

 

 

 

 

 

 

 

 

 

 

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

(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.

 

 

Quarter Ended
September 30,

 

Quarter Ended
June 30,

 

Nine Months Ended
September 30,

Operating Information

 

2019

 

2018

 

2019

 

2019

 

2018

($ in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Net income to average assets (1)

 

0.87

%

 

0.91

%

 

0.87

%

 

0.89

%

 

0.93

%

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

 

10.50

%

 

10.60

%

 

10.27

%

 

10.49

%

 

10.84

%

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

 

10.84

%

 

11.02

%

 

10.62

%

 

10.85

%

 

11.28

%

Dividends per common share

 

$

0.19

 

 

$

0.18

 

 

$

0.19

 

 

$

0.56

 

 

$

0.53

 

Dividend payout ratio

 

14.5

%

 

15.2

%

 

15.4

%

 

14.7

%

 

15.1

%

Efficiency ratio (2)

 

63.8

%

 

63.0

%

 

64.5

%

 

64.4

%

 

63.5

%

 

 

 

 

 

 

 

 

 

 

 

Net loan charge-offs

 

$

4,341

 

 

$

185

 

 

$

1,226

 

 

$

5,694

 

 

$

1,110

 

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

 

0.02

%

 

0.00

%

 

0.01

%

 

0.01

%

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

Total loans

 

0.56

%

 

0.57

%

 

0.58

%

 

0.56

%

 

0.57

%

Nonaccrual loans

 

354.5

%

 

976.6

%

 

326.3

%

 

354.5

%

 

976.6

%

__________

 

 

 

 

 

 

 

 

 

 

(1) Ratios are annualized.

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

 

 

Quarter Ended
September 30,

 

Quarter Ended
June 30,

 

Nine Months Ended
September 30,

Effective Tax Rate

 

2019

 

2018

 

2019

 

2019

 

2018

Effective tax rate, prior to excess tax benefits

 

21.4

%

 

20.8

%

 

20.9

%

 

21.4

%

 

21.1

%

 

 

 

 

 

 

 

 

 

 

 

Excess tax benefits—stock options

 

(3.3

)%

 

(0.9

)%

 

(1.3

)%

 

(3.6

)%

 

(1.3

)%

Excess tax benefits—other stock awards

 

(0.1

)%

 

(0.1

)%

 

(2.2

)%

 

(0.8

)%

 

(1.2

)%

Total excess tax benefits

 

(3.4

)%

 

(1.0

)%

 

(3.5

)%

 

(4.4

)%

 

(2.5

)%

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

18.0

%

 

19.8

%

 

17.4

%

 

17.0

%

 

18.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended
September 30,

 

Quarter Ended
June 30,

 

Nine Months Ended
September 30,

Mortgage Loan Sales

 

2019

 

2018

 

2019

 

2019

 

2018

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Loans sold:

 

 

 

 

 

 

 

 

 

 

Flow sales:

 

 

 

 

 

 

 

 

 

 

Agency

 

$

25,214

 

 

$

15,365

 

 

$

14,533

 

 

$

51,426

 

 

$

37,136

 

Non-agency

 

11,932

 

 

76,772

 

 

14,503

 

 

43,266

 

 

165,292

 

Total flow sales

 

37,146

 

 

92,137

 

 

29,036

 

 

94,692

 

 

202,428

 

 

 

 

 

 

 

 

 

 

 

 

Bulk sales:

 

 

 

 

 

 

 

 

 

 

Non-agency

 

 

 

 

 

 

 

152,119

 

 

773,041

 

 

 

 

 

 

 

 

 

 

 

 

Total loans sold

 

$

37,146

 

 

$

92,137

 

 

$

29,036

 

 

$

246,811

 

 

$

975,469

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of loans:

 

 

 

 

 

 

 

 

 

 

Amount

 

$

122

 

 

$

303

 

 

$

(15

)

 

$

466

 

 

$

5,037

 

Gain (loss) as a percentage of loans sold

 

0.33

%

 

0.33

%

 

(0.05

)%

 

0.19

%

 

0.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended
September 30,

 

Quarter Ended
June 30,

 

Nine Months Ended
September 30,

Loan Originations

 

2019

 

2018

 

2019

 

2019

 

2018

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Single family (1-4 units)

 

$

4,872,598

 

 

$

2,623,429

 

 

$

4,067,326

 

 

$

11,129,819

 

 

$

8,075,457

 

Home equity lines of credit

 

359,154

 

 

399,606

 

 

356,589

 

 

1,067,881

 

 

1,162,037

 

Multifamily (5+ units)

 

710,983

 

 

781,450

 

 

817,428

 

 

2,113,864

 

 

2,464,757

 

Commercial real estate

 

556,151

 

 

263,292

 

 

571,454

 

 

1,376,433

 

 

880,682

 

Construction

 

549,518

 

 

373,842

 

 

416,446

 

 

1,215,536

 

 

1,222,884

 

Business

 

2,983,097

 

 

1,978,596

 

 

2,087,326

 

 

7,352,635

 

 

7,133,106

 

Stock and other secured

 

662,522

 

 

321,020

 

 

824,162

 

 

1,960,146

 

 

1,736,016

 

Unsecured

 

438,278

 

 

287,748

 

 

296,373

 

 

1,068,959

 

 

1,034,317

 

Total loans originated

 

$

11,132,301

 

 

$

7,028,983

 

 

$

9,437,104

 

 

$

27,285,273

 

 

$

23,709,256

 

 

 

As of

Loan Servicing Portfolio

 

September 30,
2019

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

($ in millions)

 

 

 

 

 

 

 

 

 

 

Loans serviced for investors

 

$

10,080

 

 

$

10,746

 

 

$

11,326

 

 

$

11,573

 

 

$

11,733

 

 

 

 

As of

Asset Quality Information

 

September 30,
2019

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

136,928

 

 

$

144,993

 

 

$

51,081

 

 

$

46,465

 

 

$

42,578

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

136,928

 

 

$

144,993

 

 

$

51,081

 

 

$

46,465

 

 

$

42,578

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

0.12

%

 

0.14

%

 

0.05

%

 

0.05

%

 

0.04

%

 

 

 

 

 

 

 

 

 

 

 

Accruing loans 90 days or more past due

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

Restructured accruing loans

 

$

14,964

 

 

$

12,176

 

 

$

10,208

 

 

$

11,514

 

 

$

11,830

 

 

 

As of

Book Value and Capital Ratios

 

September 30,
2019

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Number of shares of common stock outstanding

 

168,450

 

 

168,176

 

 

167,393

 

 

164,902

 

 

164,761

 

Book value per common share

 

$

50.41

 

 

$

49.23

 

 

$

48.42

 

 

$

46.92

 

 

$

45.68

 

Tangible book value per common share

 

$

48.84

 

 

$

47.64

 

 

$

46.81

 

 

$

45.26

 

 

$

44.00

 

 

 

As of

Capital Ratios

 

September 30,
2019 (1)

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

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

 

8.50

%

 

8.69

%

 

8.84

%

 

8.68

%

 

8.94

%

Common Equity Tier 1 capital to risk-weighted assets

 

9.91

%

 

10.19

%

 

10.54

%

 

10.38

%

 

10.47

%

Tier 1 capital to risk-weighted assets

 

11.05

%

 

11.39

%

 

11.82

%

 

11.70

%

 

12.14

%

Total capital to risk-weighted assets

 

12.61

%

 

13.02

%

 

13.50

%

 

13.43

%

 

13.90

%

Regulatory Capital (2)

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 capital

 

$

8,124,179

 

 

$

7,934,602

 

 

$

7,776,620

 

 

$

7,379,997

 

 

$

7,158,043

 

Tier 1 capital

 

$

9,064,179

 

 

$

8,874,602

 

 

$

8,716,620

 

 

$

8,319,997

 

 

$

8,298,043

 

Total capital

 

$

10,340,902

 

 

$

10,138,375

 

 

$

9,960,317

 

 

$

9,549,738

 

 

$

9,505,044

 

Assets (2)

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

106,659,003

 

 

$

102,097,363

 

 

$

98,582,697

 

 

$

95,905,266

 

 

$

92,771,143

 

Risk-weighted assets

 

$

81,994,611

 

 

$

77,889,111

 

 

$

73,753,991

 

 

$

71,116,459

 

 

$

68,370,630

 

__________

 

 

 

 

 

 

 

 

 

 

(1) Ratios and amounts as of September 30, 2019 are preliminary.

(2) As defined by regulatory capital rules.

 

 

As of

Wealth Management Assets

 

September 30,
2019

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

($ in millions)

 

 

 

 

 

 

 

 

 

 

First Republic Investment Management

 

$

61,204

 

 

$

61,192

 

 

$

66,675

 

 

$

60,591

 

 

$

62,506

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage and investment:

 

 

 

 

 

 

 

 

 

 

Brokerage

 

63,053

 

 

61,583

 

 

59,391

 

 

53,046

 

 

54,823

 

Money market mutual funds

 

4,402

 

 

3,312

 

 

2,818

 

 

2,358

 

 

3,149

 

Total brokerage and investment

 

67,455

 

 

64,895

 

 

62,209

 

 

55,404

 

 

57,972

 

 

 

 

 

 

 

 

 

 

 

 

Trust Company:

 

 

 

 

 

 

 

 

 

 

Trust

 

6,366

 

 

6,319

 

 

5,955

 

 

5,350

 

 

5,406

 

Custody

 

5,210

 

 

5,225

 

 

5,060

 

 

4,868

 

 

5,105

 

Total Trust Company

 

11,576

 

 

11,544

 

 

11,015

 

 

10,218

 

 

10,511

 

Total Wealth Management Assets

 

$

140,235

 

 

$

137,631

 

 

$

139,899

 

 

$

126,213

 

 

$

130,989

 

 

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

Media:
Greg Berardi
Blue Marlin Partners
greg@bluemarlinpartners.com
(415) 239-7826

Source: First Republic Bank