Year-Over-Year Net Interest Income Increased
15% and Wealth Management Assets Increased 24%
First Republic Bank (NYSE: FRC) today announced financial
results for the quarter ended March 31, 2019.
“Loans, deposits and wealth management assets have all grown
nicely compared to a year ago,” said Jim Herbert, Chairman, CEO
& Founder. “We are delivering exceptional, differentiated
client service, which is reflected in continued strong household
acquisition across the franchise.”
Quarterly Highlights
Financial Results
– Year-over-year:
– Revenues were $807.4 million, up 12.0%.
– Net interest income was $675.0 million, up
14.8%.
– Net income was $226.6 million, up
13.8%.
– Diluted earnings per share of $1.26, up
11.5%.
– Tangible book value per share was $46.81,
up 12.9%.
– Loan originations totaled $6.7 billion.
– Net interest margin was 2.97%, compared to 2.98% for the prior
quarter.
– Efficiency ratio was 65.0%.
Continued Capital and Credit Strength
– Common Equity Tier 1 ratio was 10.54%, compared to 10.47% a
year ago.
– Increased quarterly dividend to $0.19 per share in April
2019.
– Nonperforming assets remained very low at 5 basis points of
total assets.
– Net charge-offs were only $127,000, or less than 1 basis point
of average loans.
Continued Franchise Development
– Year-over-year:
– Loans, excluding loans held for sale,
totaled $77.3 billion, up 18.5%.
– Deposits were $81.6 billion, up 14.5%.
– Wealth management assets were $139.9
billion, up 23.8%.
– Wealth management revenues were $107.2
million, up 7.7%.
“We are pleased to have exceeded $100 billion in total bank
assets through organic growth driven by exceptional client
service,” said Mike Roffler, Chief Financial Officer. “Credit
quality and capital strength remain excellent.”
Increased Quarterly Cash Dividend to
$0.19 per Share
The Bank announced an increase in its quarterly cash dividend to
$0.19 per share of common stock. This first quarter dividend is
payable on May 9, 2019 to shareholders of record as of
April 25, 2019.
Very Strong Asset
Quality
Credit quality remains very strong. Nonperforming assets were
only 5 basis points of total assets at March 31, 2019.
The Bank had net charge-offs for the quarter of $127,000, while
adding $14.2 million to its allowance for loan losses.
Continued Capital Strength and Access
to Capital Markets
The Bank’s Common Equity Tier 1 ratio was 10.54% at
March 31, 2019, compared to 10.47% a year ago.
During the first quarter, the Bank issued 2,000,000 shares of
common stock in an “at-the-market” offering, which added $170.6
million to common equity.
Tangible Book Value
Growth
Tangible book value per common share at March 31, 2019 was
$46.81, up 12.9% from a year ago.
Continued Franchise
Development
Loan Originations
Loan originations were $6.7 billion for the quarter, compared to
$7.3 billion for the same quarter a year ago.
Loans, excluding loans held for sale, totaled $77.3 billion at
March 31, 2019, up 18.5% compared to a year ago primarily due
to increases in single family, multifamily and business loans.
Deposit Growth
Total deposits increased to $81.6 billion, up 14.5% compared to
a year ago.
At March 31, 2019, checking accounts totaled 59.2% of
deposits.
Investments
Total investment securities at March 31, 2019 were $16.1
billion, a 2.7% decrease compared to a year ago.
High-quality liquid assets, including eligible cash, totaled
$15.3 billion at March 31, 2019, and represented 15.5% of
average total assets.
Mortgage Banking Activity
During the first quarter, the Bank sold $180.6 million of loans
and recorded a gain on sale of $359,000, compared to loan sales of
$161.4 million and a gain of $689,000 during the first quarter of
last year.
Loans serviced for investors at quarter-end totaled $11.3
billion, down 7.1% from a year ago.
Continued Expansion of Wealth
Management
Wealth management revenues totaled $107.2 million for the
quarter, up 7.7% compared to last year’s first quarter. Such
revenues represented 13.3% of the Bank’s total revenues for the
quarter.
Total wealth management assets were $139.9 billion at
March 31, 2019, up 10.8% for the quarter and up 23.8% compared
to a year ago. The increases in wealth management assets both for
the quarter and year were driven by market appreciation and net new
assets from existing and new clients.
Wealth management assets included investment management assets
of $66.7 billion, brokerage assets and money market mutual funds of
$62.2 billion, and trust and custody assets of $11.0 billion.
Income Statement and Key
Ratios
Strong Revenue Growth
Total revenues were $807.4 million for the quarter, up 12.0%
compared to the first quarter a year ago.
Strong Net Interest Income
Growth
Net interest income was $675.0 million for the quarter, up 14.8%
compared to the first 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 2.97% for the first quarter,
compared to 2.98% for the prior quarter.
Noninterest Income
Noninterest income was $132.3 million for the quarter, slightly
down compared to the first quarter a year ago. The first quarter of
2018 included a $10.7 million gain on sale of investment securities
as part of a portfolio repositioning.
Noninterest Expense
Noninterest expense was $524.8 million for the quarter, up 13.7%
compared to the first 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, partially offset by a decrease in FDIC
assessments due to the elimination of an FDIC surcharge.
Efficiency Ratio
The efficiency ratio was 65.0% for the quarter, compared to
64.0% for the first quarter a year ago. The efficiency ratio
remained very stable compared to last year. Excluding the $10.7
million gain on sale of investment securities as part of a
portfolio repositioning, the efficiency ratio would have been 65.0%
in the first quarter of 2018.
Income Taxes
The Bank’s effective tax rate for the first quarter of 2019 was
15.6%, compared to 19.4% for the prior quarter, and 19.2% for the
first quarter a year ago. The decreases were primarily the result
of higher tax benefits from an increase in stock option exercises
by employees.
Conference Call Details
First Republic Bank’s first quarter 2019 earnings conference
call is scheduled for April 12, 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 April 12, 2019, at 10:00 a.m.
PT / 1:00 p.m. ET, through April 19, 2019, at 8:59 p.m. PT / 11:59
p.m. ET. To access the replay, dial (844) 512-2921 and use
conference ID #13689082. 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 March 31,
Quarter EndedDecember
31,
(in thousands, except per share amounts) 2019
2018 2018 Interest income: Loans $ 700,088 $ 541,313
$ 677,450 Investments 133,765 138,270 134,380 Other 5,175 4,978
10,122 Cash and cash equivalents 7,989 3,913 6,703
Total interest income 847,017 688,474 828,655
Interest expense: Deposits 107,747 50,387 96,188
Borrowings 64,232 50,329 65,264 Total interest
expense 171,979 100,716 161,452 Net
interest income 675,038 587,758 667,203 Provision for loan losses
14,200 13,000 25,089 Net interest income after
provision for loan losses 660,838 574,758 642,114
Noninterest income: Investment management fees 84,924
78,117 91,937 Brokerage and investment fees 7,659 8,858 8,097
Insurance fees 2,114 1,674 5,444 Trust fees 3,889 3,489 3,939
Foreign exchange fee income 8,631 7,397 10,223 Deposit fees 6,320
5,985 6,484 Loan and related fees 4,007 3,617 3,871 Loan servicing
fees, net 3,788 3,519 3,446 Gain on sale of loans 359 689 579 Gain
(loss) on investment securities, net (149 ) 9,197 (1,313 ) Income
from investments in life insurance 9,335 9,477 9,973 Other income
1,441 1,083 867 Total noninterest income
132,318 133,102 143,547 Noninterest
expense: Salaries and employee benefits 313,253 277,024 281,021
Information systems 67,170 58,964 63,999 Occupancy 43,895 36,172
40,078 Professional fees 11,681 13,414 15,338 Advertising and
marketing 15,734 11,928 19,888 FDIC assessments 8,903 15,532 8,847
Other expenses 64,176 48,547 69,411 Total
noninterest expense 524,812 461,581 498,582
Income before provision for income taxes 268,344 246,279
287,079 Provision for income taxes 41,753 47,196
55,661 Net income 226,591 199,083 231,418 Dividends on
preferred stock 12,787 12,222 16,228 Net
income available to common shareholders $ 213,804 $ 186,861
$ 215,190 Basic earnings per common share $
1.28 $ 1.16 $ 1.31 Diluted earnings per common
share $ 1.26 $ 1.13 $ 1.29 Weighted
average shares—basic 167,112 161,752 164,804
Weighted average shares—diluted 169,410 164,839
167,100
CONSOLIDATED
BALANCE SHEETS
As of ($ in thousands) March 31,
2019 December 31, 2018 March
31, 2018
ASSETS
Cash and cash equivalents $ 3,693,396 $ 2,811,159 $ 3,839,931 Debt
securities available-for-sale 1,624,970 1,779,116 2,256,295 Debt
securities held-to-maturity 14,442,876 14,436,973 14,264,992 Equity
securities (fair value) 19,386 18,719 19,734 Loans: Single
family (1-4 units) 39,134,534 37,955,252 32,211,100 Home equity
lines of credit 2,502,837 2,542,713 2,575,234 Multifamily (5+
units) 10,814,000 10,357,839 9,152,736 Commercial real estate
6,802,788 6,677,440 6,173,825 Single family construction 690,370
645,924 621,847 Multifamily/commercial construction 1,507,082
1,576,582 1,256,370 Business 10,616,044 10,998,503 8,991,752 Stock
secured 1,375,454 1,432,911 1,207,646 Other secured 1,135,170
1,105,751 954,317 Unsecured 2,686,818 2,572,367
2,047,107 Total loans 77,265,097 75,865,282
65,191,934 Allowance for loan losses (453,121 ) (439,048 )
(378,778 ) Loans, net 76,811,976 75,426,234
64,813,156 Loans held for sale 9,878 98,985 686,393
Investments in life insurance 1,404,083 1,376,579 1,340,170 Tax
credit investments 1,040,924 1,057,541 1,088,602 Prepaid expenses
and other assets 2,136,675 1,538,971 1,265,806 Premises, equipment
and leasehold improvements, net 339,745 332,483 299,587 Goodwill
and other intangible assets 270,594 273,974 285,749 Mortgage
servicing rights 52,725 54,470 63,093 Total
Assets $ 101,847,228 $ 99,205,204 $ 90,223,508
LIABILITIES AND
EQUITY
Liabilities: Deposits: Noninterest-bearing checking $ 31,362,112 $
30,033,658 $ 27,496,642 Interest-bearing checking 16,912,529
17,089,520 16,809,785 Money market checking 10,559,521 10,317,436
9,088,019 Money market savings and passbooks 9,858,736 10,245,107
8,865,304 Certificates of deposit 12,919,219 11,377,515
8,995,322 Total Deposits 81,612,117 79,063,236
71,255,072 Short-term borrowings — 100,000 —
Long-term FHLB advances 8,000,000 8,700,000 8,500,000 Senior notes
896,866 896,432 895,147 Subordinated notes 777,576 777,475 777,180
Other liabilities 1,514,685 990,284 959,571
Total Liabilities 92,801,244 90,527,427 82,386,970
Shareholders’ Equity: Preferred stock 940,000 940,000
840,000 Common stock 1,674 1,649 1,619 Additional paid-in capital
4,203,473 4,024,306 3,797,419 Retained earnings 3,914,294 3,731,205
3,211,804 Accumulated other comprehensive loss (13,457 ) (19,383 )
(14,304 ) Total Shareholders’ Equity 9,045,984 8,677,777
7,836,538 Total Liabilities and Shareholders’ Equity
$ 101,847,228 $ 99,205,204 $ 90,223,508
Quarter Ended March 31, Quarter
Ended December 31, 2019 2018 2018
Average Balances, Yields and Rates
AverageBalance
InterestIncome/Expense (1)
Yields/ Rates (2)
AverageBalance
InterestIncome/Expense (1)
Yields/ Rates (2)
AverageBalance
InterestIncome/Expense (1)
Yields/ Rates (2) ($ in thousands)
Assets: Cash and cash equivalents $ 1,445,058 $ 7,989 2.24 %
$ 1,126,806 $ 3,913 1.41 % $ 1,275,293 $ 6,702 2.09 % Investment
securities:
U.S. Treasury and other U.S. Government
agency securities
— — — % 19,039 87 1.83 % — — — %
U.S. Government-sponsored agency
securities
1,044,894 7,776 2.98 % 1,156,385 8,441 2.92 % 1,044,914 7,772 2.98
% Mortgage-backed securities:
Agency residential and commercial MBS
6,854,838 49,620 2.90 % 7,610,480 50,109 2.63 % 7,098,381 50,849
2.87 %
Other residential and commercial MBS
4,528 46 4.03 % 6,074 147 9.65 % 4,611 44 3.78 % Municipal
securities 8,180,654 94,501 4.62 % 8,387,964 99,545 4.75 %
8,087,947 94,909 4.69 % Other investment securities (3) 18,989
120 2.52 % 19,986 117 2.35 % 18,955
120 2.54 %
Total investment securities
16,103,903 152,063 3.78 % 17,199,928 158,446
3.68 % 16,254,808 153,694 3.78 % Loans:
Residential real estate 40,973,253 341,784 3.34 % 34,735,775
265,529 3.06 % 39,587,922 325,318 3.28 % Multifamily 10,596,540
100,656 3.80 % 8,851,676 78,688 3.56 % 10,243,384 97,696 3.73 %
Commercial real estate 6,739,792 72,481 4.30 % 6,144,557 62,512
4.07 % 6,612,822 70,319 4.16 % Construction 2,179,144 26,755 4.91 %
1,776,131 20,625 4.65 % 2,145,727 26,464 4.83 % Business (3)
10,678,134 121,044 4.53 % 8,588,533 89,513 4.17 % 10,694,770
121,711 4.45 % Other 5,088,348 43,946 3.45 %
3,966,253 30,743 3.10 % 4,943,880 42,791
3.39 % Total loans 76,255,211 706,666 3.71 %
64,062,925 547,610 3.42 % 74,228,505 684,299
3.64 % FHLB stock (4) 278,805 5,175 7.53 %
280,962 4,978 7.19 % 293,331 10,122
13.69 % Total interest-earning assets 94,082,977 871,893
3.71 % 82,670,621 714,947 3.46 % 92,051,937
854,817 3.68 % Noninterest-earning cash
345,237 347,567 344,749 Goodwill and other intangibles 272,371
287,948 275,645 Other assets 4,196,071 3,440,748
3,572,767
Total noninterest-earning assets
4,813,679 4,076,263 4,193,161 Total Assets $
98,896,656 $ 86,746,884 $ 96,245,098
Liabilities and Equity: Deposits: Checking $ 46,516,109
6,094 0.05 % $ 42,440,377 5,509 0.05 % $ 45,218,239 5,720 0.05 %
Money market checking and savings
19,268,808 42,317 0.89 % 17,132,181 18,138 0.43 % 18,960,266 37,051
0.78 % CDs 11,384,085 59,336 2.11 % 7,641,580
26,740 1.42 % 10,720,940 53,417 1.98 % Total
deposits 77,169,002 107,747 0.57 % 67,214,138
50,387 0.30 % 74,899,445 96,188 0.51 %
Borrowings: Short-term borrowings 956,670 6,030 2.56 % 685,000
2,510 1.49 % 650,543 3,868 2.36 % Long-term FHLB advances 8,503,889
43,167 2.06 % 8,354,444 32,800 1.59 % 9,201,630 46,365 2.00 %
Senior notes (5) 896,654 5,934 2.65 % 894,940 5,923 2.65 % 896,223
5,931 2.65 % Subordinated notes (5) 777,526 9,101
4.68 % 777,133 9,096 4.68 % 777,427 9,099
4.68 % Total borrowings 11,134,739 64,232 2.33
% 10,711,517 50,329 1.90 % 11,525,823 65,263
2.25 %
Total interest-bearing liabilities
88,303,741 171,979 0.79 % 77,925,655 100,716
0.52 % 86,425,268 161,451 0.74 %
Noninterest-bearing liabilities 1,564,278 980,290 982,269 Preferred
equity 940,000 841,667 1,129,130 Common equity 8,088,637
6,999,272 7,708,431
Total Liabilities and Equity
$ 98,896,656 $ 86,746,884 $ 96,245,098
Net interest spread (6) 2.92 % 2.94 % 2.94 %
Net interest income (fully
taxable-equivalent basis) and net interest margin (7)
$ 699,914 2.97 % $ 614,231 2.97 % $ 693,366
2.98 %
Reconciliation of tax-equivalent net
interest income to reported net interest income:
Tax-equivalent adjustment
(24,876 ) (26,473 ) (26,163 )
Net interest income, as reported
$ 675,038 $ 587,758 $ 667,203
__________
(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)
Yield for the quarter ended December 31,
2018 includes an FHLB special dividend of $4.8 million.
(5)
Average balances include unamortized
issuance discounts and costs. Interest expense includes
amortization of issuance discounts and costs.
(6)
Net interest spread represents the average
yield on interest-earning assets less the average rate on
interest-bearing liabilities.
(7)
Net interest margin represents net
interest income on a fully taxable-equivalent basis divided by
total average interest-earning assets.
Quarter Ended March 31,
Quarter EndedDecember
31,
Operating Information 2019 2018
2018 ($ in thousands, except per share amounts) Net income
to average assets (1) 0.93 % 0.93 % 0.95 % Net income available to
common shareholders to average common equity (1) 10.72 % 10.83 %
11.08 % Net income available to common shareholders to average
tangible common equity (1) 11.09 % 11.29 % 11.49 % Dividends per
common share $ 0.18 $ 0.17 $ 0.18 Dividend payout ratio 14.3 % 15.0
% 14.0 % Efficiency ratio (2) 65.0 % 64.0 % 61.5 % Net loan
charge-offs $ 127 $ 154 $ 1,866 Net loan charge-offs to average
total loans (1) 0.00 % 0.00 % 0.01 % Allowance for loan
losses to: Total loans 0.59 % 0.58 % 0.58 % Nonaccrual loans 887.1
% 774.7 % 944.9 % __________
(1)
Ratios are annualized.
(2)
Efficiency ratio is the ratio of
noninterest expense to the sum of net interest income and
noninterest income.
Quarter Ended March 31,
Quarter EndedDecember
31,
Effective Tax Rate 2019 2018
2018 Effective tax rate, prior to excess tax benefits 21.9 %
21.1 % 20.7 % Excess tax benefits—stock options (6.2 )% (1.8
)%
(1.2
)%
Excess tax benefits—other stock awards (0.1 )% (0.1 )% (0.1 )%
Total excess tax benefits (6.3 )% (1.9 )% (1.3 )% Effective
tax rate 15.6 % 19.2 % 19.4 %
Quarter
Ended March 31,
Quarter EndedDecember
31,
Mortgage Loan Sales 2019 2018
2018 ($ in thousands) Loans sold: Flow sales: Agency $
11,679 $ 14,047 $ 4,945 Non-agency 16,831 55,655
6,785 Total flow sales 28,510 69,702 11,730 Bulk
sales: Non-agency 152,119 91,709 — Securitizations — —
251,931 Total loans sold $ 180,629 $
161,411 $ 263,661 Gain on sale of loans:
Amount $ 359 $ 689 $ 579 Gain as a percentage of loans sold 0.20 %
0.43 % 0.22 %
Quarter Ended March 31,
Quarter EndedDecember
31,
Loan Originations 2019 2018 2018
($ in thousands) Single family (1-4 units) $ 2,189,895 $ 2,326,712
$ 2,709,197 Home equity lines of credit 352,138 346,333 380,710
Multifamily (5+ units) 585,453 761,584 856,577 Commercial real
estate 248,828 275,683 355,137 Construction 249,572 464,806 471,904
Business 2,282,212 2,057,454 2,871,533 Stock and other secured
473,462 666,546 365,374 Unsecured 334,308 428,342
348,235 Total loans originated $ 6,715,868 $ 7,327,460
$ 8,358,667
As of Loan
Servicing Portfolio March 31, 2019
December 31, 2018 September 30,
2018 June 30, 2018 March
31, 2018 ($ in millions) Loans serviced for investors $
11,326 $ 11,573 $ 11,733 $ 12,374 $
12,192
As of Asset Quality
Information March 31, 2019 December
31, 2018 September 30, 2018
June 30, 2018 March 31, 2018 ($
in thousands) Nonperforming assets: Nonaccrual loans $ 51,081 $
46,465 $ 42,578 $ 50,920 $ 48,895 Other real estate owned —
— — — — Total nonperforming assets $
51,081 $ 46,465 $ 42,578 $ 50,920 $
48,895 Nonperforming assets to total assets 0.05 %
0.05 % 0.04 % 0.05 % 0.05 % Accruing loans 90 days or more
past due $ — $ — $ — $ — $ — Restructured accruing loans $
10,208 $ 11,514 $ 11,830 $ 11,568 $ 11,853
As of Book Value and Capital Ratios March 31,
2019
December 31,2018
September 30, 2018
June 30,2018
March 31, 2018 (in thousands, except per share
amounts) Number of shares of common stock outstanding 167,393
164,902 164,761 162,638 161,863 Book
value per common share $ 48.42 $ 46.92 $ 45.68
$ 43.88 $ 43.23 Tangible book value per common share $ 46.81
$ 45.26 $ 44.00 $ 42.15 $ 41.46
As of Capital Ratios March 31,
2019 (1)
December 31,2018
September 30, 2018 June 30,
2018 March 31, 2018
Tier 1 leverage ratio (Tier 1 capital to
average assets)
8.84 % 8.68 % 8.94 % 8.83 % 8.64 %
Common Equity Tier 1 capital to
risk-weighted assets
10.54 % 10.38 % 10.47 % 10.18 % 10.47 %
Tier 1 capital to risk-weighted assets
11.82 % 11.70 % 12.14 % 11.90 % 11.80 % Total capital to
risk-weighted assets 13.50 % 13.43 % 13.90 % 13.68 % 13.65 %
Regulatory Capital (2) ($ in thousands) Common Equity
Tier 1 capital $ 7,776,620 $ 7,379,997 $ 7,158,043 $ 6,766,573 $
6,624,101 Tier 1 capital $ 8,716,620 $ 8,319,997 $ 8,298,043 $
7,906,573 $ 7,464,101 Total capital $ 9,960,317 $ 9,549,738 $
9,505,044 $ 9,095,028 $ 8,633,859
Assets (2) ($ in
thousands) Average assets $ 98,582,697 $ 95,905,266 $ 92,771,143 $
89,560,555 $ 86,378,664 Risk-weighted assets $ 73,753,991 $
71,116,459 $ 68,370,630 $ 66,461,529 $ 63,239,135 __________
(1)
Ratios and amounts as of March 31, 2019
are preliminary.
(2)
As defined by regulatory capital
rules.
As of Wealth Management Assets
March 31, 2019 December 31, 2018
September 30, 2018 June 30,
2018 March 31, 2018 ($ in millions)
First Republic Investment Management $ 66,675 $ 60,591 $ 62,506 $
59,329 $ 55,104 Brokerage and investment: Brokerage 59,391
53,046 54,823 50,356 46,150 Money market mutual funds 2,818
2,358 3,149 1,575 2,104 Total brokerage and
investment 62,209 55,404 57,972 51,931
48,254 Trust Company: Trust 5,955 5,350 5,406 5,125 4,694
Custody 5,060 4,868 5,105 4,739 4,938
Total Trust Company 11,015 10,218 10,511 9,864
9,632 Total Wealth Management Assets $ 139,899 $
126,213 $ 130,989 $ 121,124 $ 112,990
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190412005200/en/
Investors:Andrew Greenebaum / Lasse GlassenAddo Investor
Relationsagreenebaum@addoir.comlglassen@addoir.com(310)
829-5400
Media:Greg BerardiBlue Marlin
Partnersgreg@bluemarlinpartners.com(415) 239-7826
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