FRC
$97.04
First Republic Bank
$1.18
1.23%
Earnings Details
2nd Quarter June 2019
Tuesday, July 16, 2019 8:00:00 AM
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Summary

First Republic Bank Misses

First Republic Bank (FRC) reported 2nd Quarter June 2019 earnings of $1.24 per share on revenue of $1.0 billion. The consensus earnings estimate was $1.26 per share on revenue of $837.6 million. The Earnings Whisper number was $1.27 per share. Revenue grew 18.9% 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
$1.24
Earnings Whisper
$1.27
Consensus Estimate
$1.26
Reported Revenue
$1.03 Bil
Revenue Estimate
$837.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

First Republic Reports Strong Second Quarter 2019 Results

Strongest Loan Origination Quarter

Year-Over-Year Loans Increased 19%, Revenues Increased 10%

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

“The franchise continues to perform well,” said Jim Herbert, Chairman, CEO & Founder. “Loans and deposits grew very nicely and our client-focused business model continues to deliver strong, safe, organic growth.”

Quarterly Highlights

Financial Results

  • Year-over-year:
    • Revenues were $819.4 million, up 10.1%.
    • Net interest income was $674.0 million, up 10.2%
    • Net income was $222.6 million, up 6.1%.
    • Diluted earnings per share of $1.24, up 3.3%.
    • Tangible book value per share was $47.64, up 13.0%.
  • Loan originations totaled $9.4 billion, our strongest quarter ever.
  • Net interest margin was 2.85%, compared to 2.97% last quarter.
  • Efficiency ratio was 64.5%, compared to 65.0% last quarter.

Continued Capital and Credit Strength

  • Common Equity Tier 1 ratio was 10.19%, compared to 10.18% a year ago.
  • Nonperforming assets remained at a low 14 basis points of total assets.
  • Net charge-offs were only $1.2 million, or 1 basis point of average loans.

Continued Franchise Development

  • Year-over-year:
    • Loans, excluding loans held for sale, totaled $82.2 billion, up 18.9%.
    • Deposits were $83.4 billion, up 14.6%.
    • Wealth management assets were $137.6 billion and wealth management revenues were $120.3 million. (1)

“New client household acquisition continues to be very strong, reflecting our continuing success in delivering exceptional client service,” said Mike Roffler, Chief Financial Officer. “Credit quality and capital strength remain excellent.”

Quarterly Cash Dividend Declared

The Bank declared a cash dividend for the second quarter of $0.19 per share of common stock, which is payable on August 8, 2019 to shareholders of record as of July 25, 2019.

Very Strong Asset Quality

Credit quality remains strong. Nonperforming assets were only 14 basis points of total assets at June 30, 2019.

The Bank had net charge-offs for the quarter of $1.2 million, while adding $21.2 million to its allowance for loan losses due to continued loan growth.

Continued Capital Strength

The Bank’s Common Equity Tier 1 ratio was 10.19% at June 30, 2019, compared to 10.18% a year ago.

Tangible Book Value Growth

Tangible book value per common share at June 30, 2019 was $47.64, up 13.0% from a year ago.

Continued Franchise Development

Loan Originations

Loan originations were $9.4 billion for the quarter, a slight increase compared to the same quarter a year ago.

Loans, excluding loans held for sale, totaled $82.2 billion at June 30, 2019, up 18.9% compared to a year ago primarily due to increases in single family, business, multifamily and commercial real estate loans.

Deposit Growth

Total deposits increased to $83.4 billion, up 14.6% compared to a year ago.

At June 30, 2019, checking accounts totaled 58.3% of deposits.

Investments

Total investment securities at June 30, 2019 were $16.2 billion, a slight increase compared to the prior quarter and a slight decrease compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $13.7 billion at June 30, 2019, and represented 13.3% of average total assets.

Wealth Management

Wealth management revenues totaled $120.3 million for the quarter. Such revenues represented 14.7% of the Bank’s total revenues for the quarter.

Total wealth management assets were $137.6 billion at June 30, 2019, down 1.6% for the quarter. This net decrease in wealth management assets was driven by the departure of wealth managers previously announced on June 2, 2019, and was largely offset by more than $8 billion of client inflows and market appreciation. The Bank currently expects an outflow of approximately $4 billion of wealth management assets in the third quarter of 2019 from the departure of these wealth managers. After adjusting for these expected outflows, wealth management assets would have increased by approximately 10% year-over-year as of June 30, 2019.

Wealth management assets included investment management assets of $61.2 billion, brokerage assets and money market mutual funds of $64.9 billion, and trust and custody assets of $11.5 billion.

Income Statement and Key Ratios

Revenue Growth

Total revenues were $819.4 million for the quarter, up 10.1% compared to the second quarter a year ago.

Net Interest Income Growth

Net interest income was $674.0 million for the quarter, up 10.2% compared to the second 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 2.85% for the second quarter, compared to 2.97% for the prior quarter. The decline was primarily due to an increase in the rate paid on deposits and an increase in average short-term borrowings, while earning asset yields were stable.

Noninterest Income

Noninterest income was $145.4 million for the quarter, up 9.8% compared to the second quarter a year ago. The increase was primarily from growth in wealth management revenues, partially offset by a decrease in the gain on sale of loans.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $528.9 million for the quarter, up 11.9% compared to the second quarter a year ago. The increase was primarily due to increased salaries and benefits, information systems and other expenses from the continued investments in the expansion of the franchise.

The efficiency ratio was 64.5% for the quarter, compared to 63.5% for the second quarter a year ago.

Income Taxes

The Bank’s effective tax rate for the second quarter of 2019 was 17.4%, compared to 15.6% for the prior quarter, and 16.8% for the second quarter a year ago. The increase from the first quarter was primarily the result of lower excess tax benefits from a decrease in stock option exercises by employees. For the first six months of 2019, the Bank’s effective tax rate was 16.5%.

_________
(1) The Bank currently expects an outflow of approximately $4 billion of wealth management assets in the third quarter of 2019 from the departure of wealth managers previously announced in June 2019.

Conference Call Details

First Republic Bank’s second quarter 2019 earnings conference call is scheduled for July 16, 2019 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (877) 407-0792 approximately 10 minutes prior to the start time (to allow time for registration). International callers should dial +1 (201) 689-8263.

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 July 16, 2019, at 10:00 a.m. PT / 1:00 p.m. ET, through July 23, 2019, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (844) 512-2921 and use conference ID #13691471. International callers should dial +1 (412) 317-6671 and enter the same conference ID number. 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
June 30,

 

Quarter Ended
March 31,

 

Six Months Ended
June 30,

(in thousands, except per share amounts)

 

2019

 

2018

 

2019

2019

 

2018

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

741,328

 

 

$

589,912

 

 

$

700,088

 

 

$

1,441,416

 

 

$

1,131,225

 

Investments

 

134,044

 

 

133,992

 

 

133,765

 

 

267,809

 

 

272,262

 

Other

 

4,813

 

 

4,850

 

 

5,175

 

 

9,988

 

 

9,828

 

Cash and cash equivalents

 

5,547

 

 

5,685

 

 

7,989

 

 

13,536

 

 

9,598

 

Total interest income

 

885,732

 

 

734,439

 

 

847,017

 

 

1,732,749

 

 

1,422,913

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

129,188

 

 

62,027

 

 

107,747

 

 

236,935

 

 

112,414

 

Borrowings

 

82,518

 

 

60,719

 

 

64,232

 

 

146,750

 

 

111,048

 

Total interest expense

 

211,706

 

 

122,746

 

 

171,979

 

 

383,685

 

 

223,462

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

674,026

 

 

611,693

 

 

675,038

 

 

1,349,064

 

 

1,199,451

 

Provision for loan losses

 

21,200

 

 

19,370

 

 

14,200

 

 

35,400

 

 

32,370

 

Net interest income after provision for loan losses

 

652,826

 

 

592,323

 

 

660,838

 

 

1,313,664

 

 

1,167,081

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Investment management fees

 

93,720

 

 

82,925

 

 

84,924

 

 

178,644

 

 

161,042

 

Brokerage and investment fees

 

8,287

 

 

7,705

 

 

7,659

 

 

15,946

 

 

16,563

 

Insurance fees

 

3,696

 

 

1,121

 

 

2,114

 

 

5,810

 

 

2,795

 

Trust fees

 

4,227

 

 

3,606

 

 

3,889

 

 

8,116

 

 

7,095

 

Foreign exchange fee income

 

10,345

 

 

9,547

 

 

8,631

 

 

18,976

 

 

16,944

 

Deposit fees

 

6,579

 

 

6,280

 

 

6,320

 

 

12,899

 

 

12,265

 

Loan and related fees

 

4,296

 

 

4,134

 

 

4,007

 

 

8,303

 

 

7,751

 

Loan servicing fees, net

 

3,425

 

 

3,186

 

 

3,788

 

 

7,213

 

 

6,705

 

Gain (loss) on sale of loans

 

(15

)

 

4,045

 

 

359

 

 

344

 

 

4,734

 

Gain (loss) on investment securities

 

(1,063

)

 

(1,027

)

 

(149

)

 

(1,212

)

 

8,170

 

Income from investments in life insurance

 

10,049

 

 

9,612

 

 

9,335

 

 

19,384

 

 

19,089

 

Other income

 

1,804

 

 

1,287

 

 

1,441

 

 

3,245

 

 

2,370

 

Total noninterest income

 

145,350

 

 

132,421

 

 

132,318

 

 

277,668

 

 

265,523

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

297,524

 

 

271,935

 

 

313,253

 

 

610,777

 

 

548,959

 

Information systems

 

70,277

 

 

59,530

 

 

67,170

 

 

137,447

 

 

118,494

 

Occupancy

 

47,587

 

 

37,216

 

 

43,895

 

 

91,482

 

 

73,388

 

Professional fees

 

16,435

 

 

15,588

 

 

11,681

 

 

28,116

 

 

29,002

 

Advertising and marketing

 

16,700

 

 

15,120

 

 

15,734

 

 

32,434

 

 

27,048

 

FDIC assessments

 

9,196

 

 

16,064

 

 

8,903

 

 

18,099

 

 

31,596

 

Other expenses

 

71,135

 

 

57,104

 

 

64,176

 

 

135,311

 

 

105,651

 

Total noninterest expense

 

528,854

 

 

472,557

 

 

524,812

 

 

1,053,666

 

 

934,138

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

269,322

 

 

252,187

 

 

268,344

 

 

537,666

 

 

498,466

 

Provision for income taxes

 

46,758

 

 

42,406

 

 

41,753

 

 

88,511

 

 

89,602

 

Net income

 

222,564

 

 

209,781

 

 

226,591

 

 

449,155

 

 

408,864

 

Dividends on preferred stock

 

12,788

 

 

12,163

 

 

12,787

 

 

25,575

 

 

24,385

 

Net income available to common shareholders

 

$

209,776

 

 

$

197,618

 

 

$

213,804

 

 

$

423,580

 

 

$

384,479

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

1.25

 

 

$

1.22

 

 

$

1.28

 

 

$

2.53

 

 

$

2.37

 

Diluted earnings per common share

 

$

1.24

 

 

$

1.20

 

 

$

1.26

 

 

$

2.50

 

 

$

2.33

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares—basic

 

167,685

 

 

162,152

 

 

167,112

 

 

167,400

 

 

161,953

 

Weighted average shares—diluted

 

169,572

 

 

165,013

 

 

169,410

 

 

169,503

 

 

164,929

 

CONSOLIDATED BALANCE SHEETS

 

 

As of

($ in thousands)

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

June 30,
2018

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,220,073

 

 

$

3,693,396

 

 

$

2,811,159

 

 

$

3,993,226

 

Debt securities available-for-sale

 

1,438,061

 

 

1,624,970

 

 

1,779,116

 

 

2,163,773

 

Debt securities held-to-maturity

 

14,721,568

 

 

14,442,876

 

 

14,436,973

 

 

14,284,071

 

Equity securities (fair value)

 

19,529

 

 

19,386

 

 

18,719

 

 

19,997

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

Single family (1-4 units)

 

41,758,981

 

 

39,134,534

 

 

37,955,252

 

 

34,276,540

 

Home equity lines of credit

 

2,587,554

 

 

2,502,837

 

 

2,542,713

 

 

2,613,639

 

Multifamily (5+ units)

 

11,216,640

 

 

10,814,000

 

 

10,357,839

 

 

9,707,084

 

Commercial real estate

 

7,251,509

 

 

6,802,788

 

 

6,677,440

 

 

6,321,195

 

Single family construction

 

702,928

 

 

690,370

 

 

645,924

 

 

650,181

 

Multifamily/commercial construction

 

1,470,699

 

 

1,507,082

 

 

1,576,582

 

 

1,285,072

 

Business

 

11,686,510

 

 

10,616,044

 

 

10,998,503

 

 

9,603,626

 

Stock secured

 

1,514,855

 

 

1,375,454

 

 

1,432,911

 

 

1,380,255

 

Other secured

 

1,235,588

 

 

1,135,170

 

 

1,105,751

 

 

1,039,448

 

Unsecured

 

2,812,357

 

 

2,686,818

 

 

2,572,367

 

 

2,269,854

 

Total loans

 

82,237,621

 

 

77,265,097

 

 

75,865,282

 

 

69,146,894

 

Allowance for loan losses

 

(473,095

)

 

(453,121

)

 

(439,048

)

 

(397,377

)

Loans, net

 

81,764,526

 

 

76,811,976

 

 

75,426,234

 

 

68,749,517

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

12,502

 

 

9,878

 

 

98,985

 

 

46,753

 

Investments in life insurance

 

1,412,883

 

 

1,404,083

 

 

1,376,579

 

 

1,349,823

 

Tax credit investments

 

1,054,192

 

 

1,040,924

 

 

1,057,541

 

 

1,054,536

 

Prepaid expenses and other assets

 

2,390,649

 

 

2,136,675

 

 

1,538,971

 

 

1,533,840

 

Premises, equipment and leasehold improvements, net

 

348,609

 

 

339,745

 

 

332,483

 

 

312,278

 

Goodwill and other intangible assets

 

267,490

 

 

270,594

 

 

273,974

 

 

281,550

 

Mortgage servicing rights

 

49,554

 

 

52,725

 

 

54,470

 

 

62,096

 

Total Assets

 

$

105,699,636

 

 

$

101,847,228

 

 

$

99,205,204

 

 

$

93,851,460

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing checking

 

$

32,023,125

 

 

$

31,362,112

 

 

$

30,033,658

 

 

$

28,428,832

 

Interest-bearing checking

 

16,649,251

 

 

16,912,529

 

 

17,089,520

 

 

15,490,545

 

Money market checking

 

10,874,671

 

 

10,559,521

 

 

10,317,436

 

 

10,054,060

 

Money market savings and passbooks

 

9,921,688

 

 

9,858,736

 

 

10,245,107

 

 

8,599,957

 

Certificates of deposit

 

13,962,348

 

 

12,919,219

 

 

11,377,515

 

 

10,198,556

 

Total Deposits

 

83,431,083

 

 

81,612,117

 

 

79,063,236

 

 

72,771,950

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

 

 

 

 

100,000

 

 

600,000

 

Long-term FHLB advances

 

9,800,000

 

 

8,000,000

 

 

8,700,000

 

 

9,650,000

 

Senior notes

 

497,269

 

 

896,866

 

 

896,432

 

 

895,572

 

Subordinated notes

 

777,678

 

 

777,576

 

 

777,475

 

 

777,278

 

Other liabilities

 

1,973,963

 

 

1,514,685

 

 

990,284

 

 

880,687

 

Total Liabilities

 

96,479,993

 

 

92,801,244

 

 

90,527,427

 

 

85,575,487

 

 

 

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

Preferred stock

 

940,000

 

 

940,000

 

 

940,000

 

 

1,140,000

 

Common stock

 

1,682

 

 

1,674

 

 

1,649

 

 

1,626

 

Additional paid-in capital

 

4,186,304

 

 

4,203,473

 

 

4,024,306

 

 

3,772,323

 

Retained earnings

 

4,091,636

 

 

3,914,294

 

 

3,731,205

 

 

3,379,725

 

Accumulated other comprehensive income (loss)

 

21

 

 

(13,457

)

 

(19,383

)

 

(17,701

)

Total Shareholders’ Equity

 

9,219,643

 

 

9,045,984

 

 

8,677,777

 

 

8,275,973

 

Total Liabilities and Shareholders’ Equity

 

$

105,699,636

 

 

$

101,847,228

 

 

$

99,205,204

 

 

$

93,851,460

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30,

 

Quarter Ended March 31,

 

 

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

 

$

1,091,353

 

 

$

5,547

 

 

2.04

%

 

$

1,404,683

 

 

$

5,685

 

 

1.62

%

 

$

1,445,058

 

 

$

7,989

 

 

2.24

%

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored agency securities

 

1,031,797

 

 

7,675

 

 

2.98

%

 

1,044,897

 

 

7,772

 

 

2.98

%

 

1,044,894

 

 

7,776

 

 

2.98

%

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency residential and commercial MBS

 

6,669,868

 

 

47,724

 

 

2.86

%

 

7,423,001

 

 

50,842

 

 

2.74

%

 

6,854,838

 

 

49,620

 

 

2.90

%

 

Other residential and commercial MBS

 

4,523

 

 

43

 

 

3.78

%

 

4,753

 

 

38

 

 

3.21

%

 

4,528

 

 

46

 

 

4.03

%

 

Municipal securities

 

8,497,645

 

 

96,980

 

 

4.57

%

 

8,044,313

 

 

94,478

 

 

4.69

%

 

8,180,654

 

 

94,501

 

 

4.62

%

 

Other investment securities (3)

 

19,332

 

 

127

 

 

2.63

%

 

19,863

 

 

127

 

 

2.55

%

 

18,989

 

 

120

 

 

2.52

%

 

Total investment securities

 

16,223,165

 

 

152,549

 

 

3.76

%

 

16,536,827

 

 

153,257

 

 

3.70

%

 

16,103,903

 

 

152,063

 

 

3.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

42,851,879

 

 

357,475

 

 

3.34

%

 

36,424,028

 

 

287,872

 

 

3.16

%

 

40,973,253

 

 

341,784

 

 

3.34

%

 

Multifamily

 

11,064,723

 

 

110,508

 

 

3.95

%

 

9,389,300

 

 

87,044

 

 

3.67

%

 

10,596,540

 

 

100,656

 

 

3.80

%

 

Commercial real estate

 

7,013,324

 

 

75,180

 

 

4.24

%

 

6,276,975

 

 

65,473

 

 

4.13

%

 

6,739,792

 

 

72,481

 

 

4.30

%

 

Construction

 

2,161,475

 

 

26,534

 

 

4.86

%

 

1,893,614

 

 

22,238

 

 

4.65

%

 

2,179,144

 

 

26,755

 

 

4.91

%

 

Business

 

11,410,239

 

 

131,658

 

 

4.57

%

 

9,181,127

 

 

98,061

 

 

4.22

%

 

10,678,134

 

 

121,044

 

 

4.53

%

 

Other

 

5,346,380

 

 

46,581

 

 

3.45

%

 

4,414,474

 

 

35,746

 

 

3.20

%

 

5,088,348

 

 

43,946

 

 

3.45

%

 

Total loans

 

79,848,020

 

 

747,936

 

 

3.73

%

 

67,579,518

 

 

596,434

 

 

3.51

%

 

76,255,211

 

 

706,666

 

 

3.71

%

 

FHLB stock

 

331,218

 

 

4,813

 

 

5.83

%

 

300,068

 

 

4,850

 

 

6.48

%

 

278,805

 

 

5,175

 

 

7.53

%

 

Total interest-earning assets

 

97,493,756

 

 

910,845

 

 

3.72

%

 

85,821,096

 

 

760,226

 

 

3.53

%

 

94,082,977

 

 

871,893

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning cash

 

345,174

 

 

 

 

 

 

344,451

 

 

 

 

 

 

345,237

 

 

 

 

 

 

Goodwill and other intangibles

 

269,404

 

 

 

 

 

 

283,575

 

 

 

 

 

 

272,371

 

 

 

 

 

 

Other assets

 

4,319,976

 

 

 

 

 

 

3,472,410

 

 

 

 

 

 

4,196,071

 

 

 

 

 

 

Total noninterest-earning assets

 

4,934,554

 

 

 

 

 

 

4,100,436

 

 

 

 

 

 

4,813,679

 

 

 

 

 

 

Total Assets

 

$

102,428,310

 

 

 

 

 

 

$

89,921,532

 

 

 

 

 

 

$

98,896,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

45,813,205

 

 

6,946

 

 

0.06

%

 

$

43,377,084

 

 

5,478

 

 

0.05

%

 

$

46,516,109

 

 

6,094

 

 

0.05

%

 

Money market checking and savings

 

19,323,615

 

 

51,536

 

 

1.07

%

 

16,885,281

 

 

21,787

 

 

0.52

%

 

19,268,808

 

 

42,317

 

 

0.89

%

 

CDs

 

12,799,189

 

 

70,706

 

 

2.22

%

 

8,710,862

 

 

34,762

 

 

1.60

%

 

11,384,085

 

 

59,336

 

 

2.11

%

 

Total deposits

 

77,936,009

 

 

129,188

 

 

0.66

%

 

68,973,227

 

 

62,027

 

 

0.36

%

 

77,169,002

 

 

107,747

 

 

0.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

2,875,590

 

 

18,282

 

 

2.55

%

 

1,419,945

 

 

6,652

 

 

1.88

%

 

956,670

 

 

6,030

 

 

2.56

%

 

Long-term FHLB advances

 

9,132,967

 

 

49,601

 

 

2.18

%

 

8,904,396

 

 

39,045

 

 

1.76

%

 

8,503,889

 

 

43,167

 

 

2.06

%

 

Senior notes (4)

 

835,544

 

 

5,534

 

 

2.65

%

 

895,364

 

 

5,925

 

 

2.65

%

 

896,654

 

 

5,934

 

 

2.65

%

 

Subordinated notes (4)

 

777,628

 

 

9,101

 

 

4.68

%

 

777,230

 

 

9,097

 

 

4.68

%

 

777,526

 

 

9,101

 

 

4.68

%

 

Total borrowings

 

13,621,729

 

 

82,518

 

 

2.43

%

 

11,996,935

 

 

60,719

 

 

2.03

%

 

11,134,739

 

 

64,232

 

 

2.33

%

 

Total interest-bearing liabilities

 

91,557,738

 

 

211,706

 

 

0.93

%

 

80,970,162

 

 

122,746

 

 

0.61

%

 

88,303,741

 

 

171,979

 

 

0.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities

 

1,695,606

 

 

 

 

 

 

899,451

 

 

 

 

 

 

1,564,278

 

 

 

 

 

 

Preferred equity

 

940,000

 

 

 

 

 

 

900,989

 

 

 

 

 

 

940,000

 

 

 

 

 

 

Common equity

 

8,234,966

 

 

 

 

 

 

7,150,930

 

 

 

 

 

 

8,088,637

 

 

 

 

 

 

Total Liabilities and Equity

 

$

102,428,310

 

 

 

 

 

 

$

89,921,532

 

 

 

 

 

 

$

98,896,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (5)

 

 

 

 

 

2.79

%

 

 

 

 

 

2.92

%

 

 

 

 

 

2.92

%

 

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

 

 

 

$

699,139

 

 

2.85

%

 

 

 

$

637,480

 

 

2.95

%

 

 

 

$

699,914

 

 

2.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent adjustment

 

(25,113

)

 

 

 

 

 

(25,787

)

 

 

 

 

 

(24,876

)

 

 

 

Net interest income, as reported

 

$

674,026

 

 

 

 

 

 

$

611,693

 

 

 

 

 

 

$

675,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 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

 

$

1,267,228

 

 

$

13,536

 

 

2.15

%

 

$

1,266,512

 

 

$

9,598

 

 

1.53

%

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

%

 

9,467

 

 

87

 

 

1.84

%

U.S. Government-sponsored agency securities

 

1,038,310

 

 

15,452

 

 

2.98

%

 

1,100,333

 

 

16,213

 

 

2.95

%

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Agency residential and commercial MBS

 

6,761,842

 

 

97,343

 

 

2.88

%

 

7,516,223

 

 

100,951

 

 

2.69

%

Other residential and commercial MBS

 

4,525

 

 

88

 

 

3.91

%

 

5,410

 

 

185

 

 

6.83

%

Municipal securities

 

8,340,025

 

 

191,481

 

 

4.59

%

 

8,215,189

 

 

194,023

 

 

4.72

%

Other investment securities (3)

 

19,161

 

 

247

 

 

2.58

%

 

19,923

 

 

244

 

 

2.45

%

Total investment securities

 

16,163,863

 

 

304,611

 

 

3.77

%

 

16,866,545

 

 

311,703

 

 

3.70

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

41,917,755

 

 

699,259

 

 

3.34

%

 

35,584,566

 

 

553,401

 

 

3.11

%

Multifamily

 

10,831,925

 

 

211,164

 

 

3.88

%

 

9,121,973

 

 

165,732

 

 

3.61

%

Commercial real estate

 

6,877,314

 

 

147,661

 

 

4.27

%

 

6,211,132

 

 

127,985

 

 

4.10

%

Construction

 

2,170,260

 

 

53,289

 

 

4.88

%

 

1,835,197

 

 

42,863

 

 

4.65

%

Business

 

11,046,209

 

 

252,702

 

 

4.55

%

 

8,886,468

 

 

187,575

 

 

4.20

%

Other

 

5,218,077

 

 

90,528

 

 

3.45

%

 

4,191,601

 

 

66,488

 

 

3.15

%

Total loans

 

78,061,540

 

 

1,454,603

 

 

3.72

%

 

65,830,937

 

 

1,144,044

 

 

3.47

%

FHLB stock

 

305,157

 

 

9,988

 

 

6.60

%

 

290,568

 

 

9,828

 

 

6.82

%

Total interest-earning assets

 

95,797,788

 

 

1,782,738

 

 

3.71

%

 

84,254,562

 

 

1,475,173

 

 

3.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning cash

 

345,205

 

 

 

 

 

 

346,000

 

 

 

 

 

Goodwill and other intangibles

 

270,879

 

 

 

 

 

 

285,750

 

 

 

 

 

Other assets

 

4,258,367

 

 

 

 

 

 

3,456,666

 

 

 

 

 

Total noninterest-earning assets

 

4,874,451

 

 

 

 

 

 

4,088,416

 

 

 

 

 

Total Assets

 

$

100,672,239

 

 

 

 

 

 

$

88,342,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

46,162,715

 

 

13,040

 

 

0.06

%

 

$

42,911,318

 

 

10,987

 

 

0.05

%

Money market checking and savings

 

19,296,363

 

 

93,854

 

 

0.98

%

 

17,008,048

 

 

39,925

 

 

0.47

%

CDs

 

12,095,546

 

 

130,041

 

 

2.17

%

 

8,179,175

 

 

61,502

 

 

1.52

%

Total deposits

 

77,554,624

 

 

236,935

 

 

0.62

%

 

68,098,541

 

 

112,414

 

 

0.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

1,921,431

 

 

24,312

 

 

2.55

%

 

1,054,503

 

 

9,161

 

 

1.75

%

Long-term FHLB advances

 

8,820,165

 

 

92,768

 

 

2.12

%

 

8,630,939

 

 

71,845

 

 

1.68

%

Senior notes (4)

 

865,930

 

 

11,468

 

 

2.65

%

 

895,153

 

 

11,849

 

 

2.65

%

Subordinated notes (4)

 

777,578

 

 

18,202

 

 

4.68

%

 

777,182

 

 

18,193

 

 

4.68

%

Total borrowings

 

12,385,104

 

 

146,750

 

 

2.39

%

 

11,357,777

 

 

111,048

 

 

1.97

%

Total interest-bearing liabilities

 

89,939,728

 

 

383,685

 

 

0.86

%

 

79,456,318

 

 

223,462

 

 

0.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities

 

1,630,305

 

 

 

 

 

 

939,648

 

 

 

 

 

Preferred equity

 

940,000

 

 

 

 

 

 

871,492

 

 

 

 

 

Common equity

 

8,162,206

 

 

 

 

 

 

7,075,520

 

 

 

 

 

Total Liabilities and Equity

 

$

100,672,239

 

 

 

 

 

 

$

88,342,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest spread (5)

 

 

 

 

 

2.85

%

 

 

 

 

 

2.93

%

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

 

 

 

$

1,399,053

 

 

2.91

%

 

 

 

$

1,251,711

 

 

2.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent adjustment

 

 

 

(49,989

)

 

 

 

 

 

(52,260

)

 

 

Net interest income, as reported

 

 

 

$

1,349,064

 

 

 

 

 

 

$

1,199,451

 

 

 

__________

 

(1) Interest income is presented on a fully taxable-equivalent basis.

(2) Yields/rates are annualized.

(3) Includes 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
June 30,

 

Quarter Ended
March 31,

 

Six Months Ended
June 30,

Operating Information

 

2019

 

2018

 

2019

 

2019

 

2018

($ in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Net income to average assets (1)

 

0.87

%

 

0.94

%

 

0.93

%

 

0.90

%

 

0.93

%

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

 

10.22

%

 

11.08

%

 

10.72

%

 

10.47

%

 

10.96

%

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

 

10.56

%

 

11.54

%

 

11.09

%

 

10.82

%

 

11.42

%

Dividends per common share

 

$

0.19

 

 

$

0.18

 

 

$

0.18

 

 

$

0.37

 

 

$

0.35

 

Dividend payout ratio

 

15.4

%

 

15.0

%

 

14.3

%

 

14.8

%

 

15.0

%

Efficiency ratio (2)

 

64.5

%

 

63.5

%

 

65.0

%

 

64.8

%

 

63.8

%

 

 

 

 

 

 

 

 

 

 

 

Net loan charge-offs

 

$

1,226

 

 

$

771

 

 

$

127

 

 

$

1,353

 

 

$

925

 

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

 

0.01

%

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to:

 

 

 

 

 

 

 

 

 

 

Total loans

 

0.58

%

 

0.57

%

 

0.59

%

 

0.58

%

 

0.57

%

Nonaccrual loans

 

326.3

%

 

780.4

%

 

887.1

%

 

326.3

%

 

780.4

%

__________

 

 

 

 

 

 

 

 

 

 

(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
June 30,

 

Quarter Ended
March 31,

 

Six Months Ended
June 30,

Effective Tax Rate

 

2019

 

2018

 

2019

 

2019

 

2018

Effective tax rate, prior to excess tax benefits

 

20.9

%

 

21.5

%

 

21.9

%

 

21.4

%

 

21.3

%

 

 

 

 

 

 

 

 

 

 

 

Excess tax benefits—stock options

 

(1.3

)%

 

(1.3

)%

 

(6.2

)%

 

(3.8

)%

 

(1.5

)%

Excess tax benefits—other stock awards

 

(2.2

)%

 

(3.4

)%

 

(0.1

)%

 

(1.1

)%

 

(1.8

)%

Total excess tax benefits

 

(3.5

)%

 

(4.7

)%

 

(6.3

)%

 

(4.9

)%

 

(3.3

)%

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

17.4

%

 

16.8

%

 

15.6

%

 

16.5

%

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended
June 30,

 

Quarter Ended
March 31,

 

Six Months Ended
June 30,

Mortgage Loan Sales

 

2019

 

2018

 

2019

 

2019

 

2018

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Loans sold:

 

 

 

 

 

 

 

 

 

 

Flow sales:

 

 

 

 

 

 

 

 

 

 

Agency

 

$

14,533

 

 

$

7,724

 

 

$

11,679

 

 

$

26,212

 

 

$

21,771

 

Non-agency

 

14,503

 

 

32,865

 

 

16,831

 

 

31,334

 

 

88,520

 

Total flow sales

 

29,036

 

 

40,589

 

 

28,510

 

 

57,546

 

 

110,291

 

 

 

 

 

 

 

 

 

 

 

 

Bulk sales:

 

 

 

 

 

 

 

 

 

 

Non-agency

 

 

 

681,332

 

 

152,119

 

 

152,119

 

 

773,041

 

 

 

 

 

 

 

 

 

 

 

 

Total loans sold

 

$

29,036

 

 

$

721,921

 

 

$

180,629

 

 

$

209,665

 

 

$

883,332

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of loans:

 

 

 

 

 

 

 

 

 

 

Amount

 

$

(15

)

 

$

4,045

 

 

$

359

 

 

$

344

 

 

$

4,734

 

Gain (loss) as a percentage of loans sold

 

(0.05

)%

 

0.56

%

 

0.20

%

 

0.16

%

 

0.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended
June 30,

 

Quarter Ended
March 31,

 

Six Months Ended
June 30,

Loan Originations

 

2019

 

2018

 

2019

 

2019

 

2018

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Single family (1-4 units)

 

$

4,067,326

 

 

$

3,125,316

 

 

$

2,189,895

 

 

$

6,257,221

 

 

$

5,452,028

 

Home equity lines of credit

 

356,589

 

 

416,098

 

 

352,138

 

 

708,727

 

 

762,431

 

Multifamily (5+ units)

 

817,428

 

 

921,723

 

 

585,453

 

 

1,402,881

 

 

1,683,307

 

Commercial real estate

 

571,454

 

 

341,707

 

 

248,828

 

 

820,282

 

 

617,390

 

Construction

 

416,446

 

 

384,236

 

 

249,572

 

 

666,018

 

 

849,042

 

Business

 

2,087,326

 

 

3,097,056

 

 

2,282,212

 

 

4,369,538

 

 

5,154,510

 

Stock and other secured

 

824,162

 

 

748,450

 

 

473,462

 

 

1,297,624

 

 

1,414,996

 

Unsecured

 

296,373

 

 

318,227

 

 

334,308

 

 

630,681

 

 

746,569

 

Total loans originated

 

$

9,437,104

 

 

$

9,352,813

 

 

$

6,715,868

 

 

$

16,152,972

 

 

$

16,680,273

 

 

 

As of

Loan Servicing Portfolio

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

 

June 30,
2018

($ in millions)

 

 

 

 

 

 

 

 

 

 

Loans serviced for investors

 

$

10,746

 

 

$

11,326

 

 

$

11,573

 

 

$

11,733

 

 

$

12,374

 

 

 

As of

Asset Quality Information

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

 

June 30,
2018

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

144,993

 

 

$

51,081

 

 

$

46,465

 

 

$

42,578

 

 

$

50,920

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

144,993

 

 

$

51,081

 

 

$

46,465

 

 

$

42,578

 

 

$

50,920

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

0.14

%

 

0.05

%

 

0.05

%

 

0.04

%

 

0.05

%

 

 

 

 

 

 

 

 

 

 

 

Accruing loans 90 days or more past due

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

Restructured accruing loans

 

$

12,176

 

 

$

10,208

 

 

$

11,514

 

 

$

11,830

 

 

$

11,568

 

 

 

As of

Book Value and Capital Ratios

 

June 30,
2019

 

March 31, 2019

 

December 31,
2018

 

September 30, 2018

 

June 30,
2018

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Number of shares of common stock outstanding

 

168,176

 

 

167,393

 

 

164,902

 

 

164,761

 

 

162,638

 

Book value per common share

 

$

49.23

 

 

$

48.42

 

 

$

46.92

 

 

$

45.68

 

 

$

43.88

 

Tangible book value per common share

 

$

47.64

 

 

$

46.81

 

 

$

45.26

 

 

$

44.00

 

 

$

42.15

 

 

 

As of

Capital Ratios

 

June 30,
2019 (1)

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

 

June 30,
2018

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

 

8.69

%

 

8.84

%

 

8.68

%

 

8.94

%

 

8.83

%

Common Equity Tier 1 capital to risk-weighted assets

 

10.19

%

 

10.54

%

 

10.38

%

 

10.47

%

 

10.18

%

Tier 1 capital to risk-weighted assets

 

11.39

%

 

11.82

%

 

11.70

%

 

12.14

%

 

11.90

%

Total capital to risk-weighted assets

 

13.02

%

 

13.50

%

 

13.43

%

 

13.90

%

 

13.68

%

Regulatory Capital (2)

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 capital

 

$

7,934,602

 

 

$

7,776,620

 

 

$

7,379,997

 

 

$

7,158,043

 

 

$

6,766,573

 

Tier 1 capital

 

$

8,874,602

 

 

$

8,716,620

 

 

$

8,319,997

 

 

$

8,298,043

 

 

$

7,906,573

 

Total capital

 

$

10,138,375

 

 

$

9,960,317

 

 

$

9,549,738

 

 

$

9,505,044

 

 

$

9,095,028

 

Assets (2)

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

102,100,574

 

 

$

98,582,697

 

 

$

95,905,266

 

 

$

92,771,143

 

 

$

89,560,555

 

Risk-weighted assets

 

$

77,889,191

 

 

$

73,753,991

 

 

$

71,116,459

 

 

$

68,370,630

 

 

$

66,461,529

 

__________

 

 

 

 

 

 

 

 

 

 

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

(2) As defined by regulatory capital rules.

 

As of

Wealth Management Assets

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

 

September 30,
2018

 

June 30,
2018

($ in millions)

 

 

 

 

 

 

 

 

 

 

First Republic Investment Management

 

$

61,192

 

 

$

66,675

 

 

$

60,591

 

 

$

62,506

 

 

$

59,329

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage and investment:

 

 

 

 

 

 

 

 

 

 

Brokerage

 

61,583

 

 

59,391

 

 

53,046

 

 

54,823

 

 

50,356

 

Money market mutual funds

 

3,312

 

 

2,818

 

 

2,358

 

 

3,149

 

 

1,575

 

Total brokerage and investment

 

64,895

 

 

62,209

 

 

55,404

 

 

57,972

 

 

51,931

 

 

 

 

 

 

 

 

 

 

 

 

Trust Company:

 

 

 

 

 

 

 

 

 

 

Trust

 

6,319

 

 

5,955

 

 

5,350

 

 

5,406

 

 

5,125

 

Custody

 

5,225

 

 

5,060

 

 

4,868

 

 

5,105

 

 

4,739

 

Total Trust Company

 

11,544

 

 

11,015

 

 

10,218

 

 

10,511

 

 

9,864

 

Total Wealth Management Assets

 

$

137,631

 

 

$

139,899

 

 

$

126,213

 

 

$

130,989

 

 

$

121,124

 

 

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