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First Republic Reports Strong First Quarter 2019 Results

SAN FRANCISCO--(BUSINESS WIRE)--

Year-Over-Year Net Interest Income Increased 15% and Wealth Management Assets Increased 24%

First Republic Bank (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 Ended
December 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

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 $ 1,445,058 $ 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 Ended
December 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 Ended
December 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 Ended
December 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 Ended
December 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

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