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 First Republic Reports Strong Quarterly and Annual Results
   Friday, January 13, 2017 8:00:01 AM ET

First Republic Bank (FRC ) today announced financial results for the quarter and year ended December 31, 2016.

"Results for the fourth quarter 2016 and full year were very strong and were a record in many respects," said Jim Herbert, Chairman and CEO. "Asset quality remains excellent. We are also pleased to have completed the acquisition of Gradifi, the leading provider of student debt repayment benefit plans."

Full Year Highlights

Financial Results

- Revenues for the year were $2.2 billion, up 20.1%.

- Net income was $673.4 million, up 29.0%.

- Diluted earnings per share ("EPS") of $3.93, up 23.6%.

- Loan originations were a record $25.7 billion for the year.



- Efficiency ratio of 60.5%, compared to 59.5% for the prior year.

Continued Capital and Credit Strength

- Common Equity Tier 1 ratio was 10.75%.

- Total regulatory capital has grown 27.3% from a year ago (23.8% (1) after the redemption of Series A Preferred Stock).

- Tangible book value per share was $35.35, up 17.2% from a year ago.

- Nonperforming assets remained very low at 7 basis points of total assets.

- Net charge-offs were only $1.9 million for the year, less than a basis point of average loans.

Continued Franchise Development

- Loans outstanding, excluding loans held for sale, totaled $52.0 billion, up 17.8% from a year ago.

- Deposits were $58.6 billion, up 22.4% from a year ago.

- Wealth management assets were $83.6 billion, up 15.6% from a year ago.

- Wealth management revenues were $291.3 million, up 25.7% from a year ago.

- Acquired Gradifi, Inc. ("Gradifi"), the leading provider of student debt repayment benefit plans nationwide, in December 2016.

Quarterly Highlights

- Compared to last year’s fourth quarter:

- Revenues were $599.5 million, up 21.1%.

- Net income was $179.1 million, up 27.9%.

- Diluted EPS of $1.03, up 22.6%.

- Loan originations were a record $7.9 billion for the quarter.

- Net interest margin was 3.16% for both the fourth quarter of 2016 and the prior quarter.

- Core net interest margin was 3.08%, compared to 3.11% for the prior quarter. (2)

- Efficiency ratio was 60.1%, compared to 60.5% for the prior quarter.

- Wealth management assets were $83.6 billion, up 4.2% from the prior quarter.

"Revenue growth was strong, and net interest margin remained stable," said Mike Roffler, Chief Financial Officer. "During the fourth quarter, we were pleased to complete another successful common stock offering, bringing total new capital raised in 2016 to over $1 billion."

Quarterly Cash Dividend Declared

The Bank declared a cash dividend for the fourth quarter of $0.16 per share of common stock, which is payable on February 9, 2017 to shareholders of record as of January 26, 2017.

Continued Strong Asset Quality

Credit quality remains very strong. Nonperforming assets were 7 basis points of total assets at December 31, 2016.

The Bank had net charge-offs for the quarter of $207,000, while adding $10.5 million to its allowance for loan losses due to continued loan growth. Net charge-offs for the year were $1.9 million. A total of $47.2 million was added to the Bank’s allowance for loan losses during the year.

Continued Capital Strength

Total regulatory capital has grown 27.3% from a year ago (23.8% (1) after the redemption of Series A Preferred Stock).

The Bank’s Common Equity Tier 1 ratio was 10.75%at December 31, 2016, compared to 10.52% last quarter.

During the fourth quarter, the Bank issued and sold approximately 4.0 million new shares of common stock in an underwritten public offering, which added approximately $325 million to common equity.

Tangible Book Value Growth

Tangible book value per common share at December 31, 2016 was $35.35, up 17.2% from a year ago.

Continued Franchise Development

Loan Originations

Loan originations were a record $7.9 billion for the quarter, compared to $4.7 billion for the fourth quarter a year ago. For 2016, loans originations totaled $25.7 billion, compared to $19.7 billion for the prior year.

Loans outstanding, excluding loans held for sale, totaled $52.0 billion at December 31, 2016, up 4.3% for the quarter and up 17.8% compared to a year ago.

Deposit Growth

Total deposits increased to $58.6 billion, up 6.4% for the quarter and up 22.4% compared to a year ago.

At December 31, 2016, checking accounts totaled 63.7% of deposits.

The average rate paid on deposits was 15 basis points for both the fourth quarter and the prior quarter.

Investments

Total investment securities at December 31, 2016 were $15.2 billion, up 18.4% for the quarter and up 45.0% compared to a year ago.

The growth in investments reflected the completion of increasing our level of high-quality liquid assets to 12.7% of average total assets for the fourth quarter. High-quality liquid assets totaled $9.0 billion at December 31, 2016, up 34.5% for the quarter and up 55.5% compared to a year ago.

Mortgage Banking Activity

During the fourth quarter, the Bank sold $801.0 million of loans and recorded a gain on sale of $818,000. For the year ended December 31, 2016, the Bank sold $3.1 billion of loans and recorded a gain on sale of $4.8 million.

Loans serviced for investors at year-end totaled $11.7 billion, up 10.7% from a year ago. Net loan servicing fees for the year were $13.5 million.

Continued Expansion of Wealth Management

Wealth management revenues totaled $79.8 million for the quarter, up 18.8% compared to last year’s fourth quarter. For the year ended December 31, 2016, wealth management revenues were $291.3 million, an increase of 25.7% compared to the prior year. Such revenues represented 13% of total revenues for both the quarter and the year. Wealth management revenues for 2016 include the full benefit of the Constellation Wealth Advisors acquisition on October 1, 2015.

Total wealth management assets were $83.6 billion at December 31, 2016, up 4.2% for the quarter and up 15.6% compared to a year ago. The growth in wealth management assets was primarily due to net new assets from both existing and new clients.

Wealth management assets included investment management assets of $41.2 billion, brokerage assets and money market mutual funds of $34.3 billion, and trust and custody assets of $8.2 billion.

Gradifi Acquisition

To further expand First Republic’s franchise, the Bank completed the acquisition of Gradifi, the leading provider of student debt repayment benefit plans nationwide. Gradifi is now a wholly-owned subsidiary of the Bank.

Income Statement and Key Ratios

Highlights

Strong Revenue Growth

Total revenues were $599.5 million for the quarter, up 21.1% compared to the fourth quarter a year ago and $2.2 billion for 2016, up 20.1% compared to the prior year.

Continued Net Interest Income Growth

Net interest income was $490.6 million for the quarter, up 21.2% compared to the fourth quarter a year ago and $1.8 billion for 2016, up 19.8% compared to the prior year. The increase in net interest income resulted primarily from growth in average earning assets.

Net Interest Margin

For 2016, the Bank’s net interest margin was 3.20%, compared to 3.21% for the prior year. The net interest margin was 3.16% for both the fourth quarter of 2016 and the prior quarter.

The core net interest margin was 3.14% for 2016, compared to 3.09% for the prior year. The core net interest margin was 3.08% for the quarter, compared to 3.11% for the prior quarter. (2)

Noninterest Income

Noninterest income was $108.8 million for the quarter, up 20.7% compared to the fourth quarter a year ago. Noninterest income was $394.8 million for 2016, up 21.5% compared to the prior year. The increases were primarily from increased wealth management revenues.

Efficiency Ratio

The Bank’s efficiency ratio was 60.1% for the quarter, compared to 60.5% for the prior quarter and 60.8% for the fourth quarter a year ago. For all of 2016, the efficiency ratio was 60.5%, compared to 59.5% for 2015.

Noninterest expense was $360.2 million for the quarter, up 19.7% from the fourth quarter of last year. For 2016, noninterest expense was $1.3 billion, up 22.0% from the prior year. The increases were primarily due to increased salaries and benefits from the continued investments in the expansion of the franchise and regulatory compliance activities, along with growth across all areas of the Bank.

Income Tax Rate

The Bank’s effective tax rate for the fourth quarter of 2016 was 21.7%, compared to 15.0% for the prior quarter. The increase in the effective tax rate was primarily due to lower tax benefits from exercised stock options.

The effective tax rate for 2016 was 18.6%, compared to 24.4% in 2015. The decrease in 2016 was due to the adoption of Accounting Standards Codification 718, "Compensation--Stock Compensation," along with higher levels of income associated with tax-advantaged investments.

__________

(1) Regulatory capital growth excluding the $199.5 million 6.70% Series A Preferred Stock, which will be redeemed on January 30, 2017.

(2) Core net interest margin is a non-GAAP financial measure that excludes the positive impact of purchase accounting and also the special FHLB dividends received in the fourth quarter of 2016 and in the second quarter of 2015. See non-GAAP reconciliation under section "Use of Non-GAAP Financial Measures."

Conference Call Details

First Republic Bank’s fourth quarter and full year 2016 earnings conference call is scheduled for January 13, 2017 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (855) 224-3902 approximately 10 minutes prior to the start time (to allow time for registration) and use conference ID #44886677. International callers should dial (734) 823-3244 and enter the same conference ID number.

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 January 13, 2017, at 10:00 a.m. PT / 1:00 p.m. ET, through January 20, 2017, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (855) 859-2056 and use conference ID #44886677. International callers should dial (404) 537-3406 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, with a commitment to responsiveness and action. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, New York City, Greenwich and Palm Beach. First Republic offers a complete line of banking and wealth management services for individuals and businesses. 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. 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 and include statements about economic performance in our markets, growth in our loan originations and wealth management assets, our progress in preparing for, and our compliance with, any enhanced regulatory requirements, and our projected tax rate. 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 materially from those discussed in the forward-looking statements include, but are not limited to: our ability to deal with significant competition for banking and wealth management customers; our projections for certain financial items; expectations concerning the bank and wealth management industries; our ability to recruit and retain key managers, employees and board members; earthquakes and other natural disasters in our markets; interest rate and credit risk; our plans or objectives for future operations, products or services; our ability to maintain and follow high underwriting standards; economic conditions generally and in our markets; economic and market conditions affecting the valuation of our investment securities portfolio; real estate prices generally and in our markets; our geographic and product concentrations; our opportunities for growth; expectations about the performance of any new offices; demand for our products and services; projections about loan premiums and discounts; our future provisions for loan losses; projections about future levels of loan originations or loan repayments; projections regarding costs; our regulatory compliance and future regulatory requirements; the phase-in of the Basel III Capital Rules; legislative and regulatory actions affecting us and the financial services industry; our ability to avoid litigation and its associated costs and liabilities; new accounting standards; future FDIC special assessments or changes to regular assessments; fraud, cybersecurity and privacy risks; and our ability to successfully execute on initiatives relating to enhancements of our technology. 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. 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. 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                                                                                                    Quarter Ended                                                                                                 Year Ended
                                                                                                                                                                   December 31,                                                                                                     September 30,                                                                                                December 31,
                                                                                                                   ------------------------------------------------------------------------------------------------------------                                          ----------------------------------                                          ----------------------------------------------------------------------------------------------------
(in thousands, except per share amounts)                                                                      2016                                 2015                                                                        2016                                                                         2016                             2015
--------------------------------------------------- --------------------                                           ---------------------------------                                          ---------------------------------                                          ----------------------------------                                          ------------------------------------                                          ----------------------
Interest income:
   Loans                                                                                                             $ 418,423                                                                  $ 357,446                                                                   $ 403,299                                                                   $ 1,573,403                                                                         $  1,361,654
   Investments                                                                                                         106,994                                                                     77,333                                                                      94,684                                                                       378,719                                                                              268,682
   Other                                                                                                                 9,819                                                                      3,697                                                                       3,701                                                                        19,266                                                                               27,464
   Cash and cash equivalents                                                                                             2,358                                                   2,730                                                    2,630                                                      9,485                                                             6,292
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
      Total interest income                                                                                            537,594                                                 441,206                                                  504,314                                                  1,980,873                                                         1,664,092
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Interest expense:
   Deposits                                                                                                             21,206                                                                     16,638                                                                      19,661                                                                        73,765                                                                               61,072
   Borrowings                                                                                                           25,763                                                  19,869                                                   24,049                                                     89,946                                                            86,357
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
      Total interest expense                                                                                            46,969                                                  36,507                                                   43,710                                                    163,711                                                           147,429
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Net interest income                                                                                                    490,625                                                                    404,699                                                                     460,604                                                                     1,817,162                                                                            1,516,663
Provision for loan losses                                                                                               10,500                                                  12,045                                                   18,000                                                     47,192                                                            55,439
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
Net interest income after provision for loan losses                                                                    480,125                                                 392,654                                                  442,604                                                  1,769,970                                                         1,461,224
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Noninterest income:
   Investment management fees                                                                                           59,855                                                                     49,814                                                                      56,843                                                                       224,626                                                                              178,738
   Brokerage and investment fees                                                                                        10,151                                                                      7,654                                                                       6,627                                                                        31,868                                                                               19,659
   Trust fees                                                                                                            3,374                                                                      3,259                                                                       3,015                                                                        12,365                                                                               10,745
   Foreign exchange fee income                                                                                           6,384                                                                      6,413                                                                       5,460                                                                        22,406                                                                               22,517
   Deposit fees                                                                                                          5,341                                                                      4,914                                                                       5,278                                                                        20,699                                                                               19,311
   Gain on sale of loans                                                                                                   818                                                                      1,480                                                                       1,785                                                                         4,828                                                                                9,725
   Loan servicing fees, net                                                                                              3,022                                                                      3,752                                                                       3,182                                                                        13,465                                                                               13,040
   Loan and related fees                                                                                                 3,650                                                                      3,161                                                                       3,709                                                                        14,097                                                                               12,393
   Income from investments in life insurance                                                                            17,515                                                                      9,289                                                                      12,065                                                                        48,119                                                                               35,474
   Gain (loss) on investment securities, net                                                                            (1,363 )                                                                     (515 )                                                                      (663 )                                                                       1,055                                                                                  821
   Other income (loss)                                                                                                      87                                                     930                                                      (30 )                                                                       1,284                                                             2,630
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
      Total noninterest income                                                                                         108,834                                                  90,151                                                   97,271                                                    394,812                                                           325,053
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Noninterest expense:
   Salaries and employee benefits                                                                                      201,087                                                                    168,424                                                                     193,340                                                                       763,625                                                                              596,593
   Information systems                                                                                                  43,083                                                                     33,416                                                                      38,917                                                                       153,207                                                                              119,114
   Occupancy                                                                                                            32,277                                                                     27,220                                                                      30,945                                                                       119,139                                                                              106,856
   Professional fees                                                                                                    14,798                                                                     16,487                                                                      12,466                                                                        52,740                                                                               73,022
   FDIC assessments                                                                                                     13,000                                                                      9,500                                                                      11,800                                                                        44,200                                                                               35,250
   Advertising and marketing                                                                                            10,167                                                                      7,617                                                                       7,169                                                                        32,783                                                                               25,562
   Amortization of intangibles                                                                                           5,839                                                                      6,933                                                                       6,116                                                                        25,002                                                                               21,760
   Other expenses                                                                                                       39,923                                                  31,327                                                   36,983                                                    146,490                                                           117,452
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                       360,174                                                 300,924                                                  337,736                                                  1,337,186                                                         1,095,609
      Total noninterest expense
                                                                                                                   ----------  --------------------                                           ----------  --------------------                                           -----------  --------------------                                           -------------  --------------------                                           --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Income before provision for income taxes                                                                               228,785                                                                    181,881                                                                     202,139                                                                       827,596                                                                              690,668
Provision for income taxes                                                                                              49,667                                                  41,835                                                   30,321                                                    154,168                                                           168,523
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
Net income                                                                                                             179,118                                                                    140,046                                                                     171,818                                                                       673,428                                                                              522,145
Dividends on preferred stock                                                                                            17,376                                                  15,314                                                   17,377                                                     68,589                                                            58,928
                                                                                                                   --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
Net income available to common shareholders                                                                          $ 161,742                                               $ 124,732                                                $ 154,441                                                $   604,839                                                      $    463,217
                                                                                                                   === ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Basic earnings per common share                                                                                      $    1.06                                               $    0.87                                                $    1.03                                                $      4.07                                                      $       3.27
                                                                                                                   === ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
Diluted earnings per common share                                                                                    $    1.03                                               $    0.84                                                $    1.00                                                $      3.93                                                      $       3.18
                                                                                                                   === ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
Dividends per common share                                                                                           $    0.16                                               $    0.15                                                $    0.16                                                $      0.63                                                      $       0.59
                                                                                                                   === ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Weighted average shares--basic                                                                             151,990                                                 144,006                                                  149,800                                                    148,752                                                           141,689
                                                                                                                   ================================                                           ================================                                           =================================                                           ===================================                                           ======================
Weighted average shares--diluted                                                                           157,217                                                 147,814                                                  154,824                                                    154,095                                                           145,510
                                                                                                                   ================================                                           ================================                                           =================================                                           ===================================                                           ======================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                    
                                                                                                                                                               CONSOLIDATED BALANCE SHEETS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               
                                                                                                                                               
                                                                                                                                                                                                                                                 As of
                                                                                                                                              ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                            December 31,                               September 30,                              December 31,
($ in thousands)                                                                                                                             2016                                                                             2016                                                                             2015
------------------------------------------------------------------------------ --------------------                                           ----------------------------------------                                          --------------------------------------                                          ----------------------------------------
ASSETS
------------------------------------------------------------------------------
Cash and cash equivalents                                                                                                                           $  2,107,722                                                                    $  1,386,967                                                                      $  1,131,110
Securities purchased under agreements to resell                                                                                                              100                                                                             100                                                                               100
Investment securities available-for-sale                                                                                                               2,007,258                                                                       1,710,571                                                                         2,910,801
Investment securities held-to-maturity                                                                                                                13,150,157                                                                      11,094,535                                                                         7,540,678
                                                                                                                                                                                                                                                                                                                 
Loans:
   Single family (1-4 units)                                                                                                                          26,234,768                                                                      24,923,746                                                                        23,092,346
   Home equity lines of credit                                                                                                                         2,622,231                                                                       2,575,253                                                                         2,370,188
   Multifamily (5+ units)                                                                                                                              6,688,203                                                                       6,227,304                                                                         5,371,484
   Commercial real estate                                                                                                                              5,484,620                                                                       5,205,888                                                                         4,462,834
   Single family construction                                                                                                                            496,631                                                                         496,357                                                                           436,774
   Multifamily/commercial construction                                                                                                                   929,076                                                                         847,303                                                                           693,364
   Business                                                                                                                                            6,886,816                                                                       7,128,758                                                                         6,232,378
   Stock secured                                                                                                                                         821,708                                                                         871,195                                                                           521,005
   Other secured                                                                                                                                         723,250                                                                         684,328                                                                           541,637
   Unsecured                                                                                                                                           1,130,614                                                      925,066                                                        423,795  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
      Total unpaid principal balance                                                                                                                  52,017,917                                                   49,885,198                                                     44,145,805  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
   Net unaccreted discount                                                                                                                               (75,975 )                                                                       (85,645 )                                                                        (108,499 )
   Net deferred fees and costs                                                                                                                            66,375                                                                          59,262                                                                            46,263
   Allowance for loan losses                                                                                                                            (306,398 )                                                                      (296,105 )                                                                        (261,058 )
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
      Loans, net                                                                                                                                      51,701,919                                                   49,562,710                                                     43,822,511  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
                                                                                                                                                                                                                                                                                                                 
Loans held for sale                                                                                                                                      407,226                                                                         514,291                                                                            48,681
Investments in life insurance                                                                                                                          1,273,172                                                                       1,266,194                                                                         1,168,596
Tax credit investments                                                                                                                                 1,121,416                                                                       1,071,255                                                                         1,006,836
Prepaid expenses and other assets                                                                                                                        923,224                                                                         845,229                                                                           817,410
Premises, equipment and leasehold improvements, net                                                                                                      207,592                                                                         190,213                                                                           172,008
Goodwill                                                                                                                                                 203,177                                                                         171,616                                                                           171,616
Other intangible assets                                                                                                                                  112,399                                                                         118,238                                                                           137,400
Mortgage servicing rights                                                                                                                                 62,410                                                                          60,432                                                                            53,538
Other real estate owned                                                                                                                           --                                                        1,196                                                 --  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
         Total Assets                                                                                                                               $ 73,277,772                                                 $ 67,993,547                                                   $ 58,981,285  
                                                                                                                                              ======= ========== ====================                                           ===== ========== ====================                                           ======= ========== ====================
                                                                                                                                                                                                                                                                                                                 
LIABILITIES AND EQUITY
------------------------------------------------------------------------------
Liabilities:
Deposits:
   Noninterest-bearing checking                                                                                                                     $ 22,740,303                                                                    $ 20,965,249                                                                      $ 18,252,007
   Interest-bearing checking                                                                                                                          14,575,890                                                                      12,747,952                                                                        12,027,363
   Money market checking                                                                                                                               7,969,787                                                                       8,381,381                                                                         5,756,821
   Money market savings and passbooks                                                                                                                  8,203,340                                                                       8,126,741                                                                         7,270,396
   Certificates of deposit                                                                                                                             5,113,061                                                    4,840,374                                                      4,586,878  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
                                                                                                                                                      58,602,381                                                   55,061,697                                                     47,893,465  
      Total Deposits
                                                                                                                                              -----------------  --------------------                                           ---------------  --------------------                                           -----------------  --------------------
                                                                                                                                                                                                                                                                                                                 
Short-term borrowings                                                                                                                                    100,000                                                                         200,000                                                                           100,000
Long-term FHLB advances                                                                                                                                5,900,000                                                                       4,600,000                                                                         4,000,000
Senior notes                                                                                                                                             397,955                                                                         397,755                                                                           397,159
Subordinated notes                                                                                                                                       387,380                                                                         387,329                                                                    --
Debt related to variable interest entities                                                                                                                25,980                                                                          26,981                                                                            29,643
Other liabilities                                                                                                                                        955,424                                                      875,287                                                        855,335  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
      Total Liabilities                                                                                                                               66,369,120                                                   61,549,049                                                     53,275,602  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
                                                                                                                                                                                                                                                                                                                 
Shareholders’ Equity:
   Preferred stock                                                                                                                                     1,139,525                                                                       1,139,525                                                                           989,525
   Common stock                                                                                                                                            1,543                                                                           1,501                                                                             1,461
   Additional paid-in capital                                                                                                                          3,301,705                                                                       2,962,355                                                                         2,770,265
   Retained earnings                                                                                                                                   2,459,540                                                                       2,322,296                                                                         1,949,652
   Accumulated other comprehensive income (loss)                                                                                                           6,339                                                       18,821                                                         (5,220 )
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
      Total Shareholders’ Equity                                                                                            6,908,652                                                    6,444,498                                                      5,705,683  
                                                                                                                                              ---------------------------------------                                           -------------------------------------                                           ---------------------------------------
         Total Liabilities and Shareholders’ Equity                                                                      $ 73,277,772                                                 $ 67,993,547                                                   $ 58,981,285  
                                                                                                                                              ======= ========== ====================                                           ===== ========== ====================                                           ======= ========== ====================
                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                          
                                                                                                                                                                    Quarter Ended                                                                       Quarter Ended                                                                           Year Ended
                                                                                                                                                                    December 31,                                                                        September 30,                                                                          December 31,
                                                                                                                                        ---------------------------------------------------------------------                                          ---------------                                          --------------------------------------------------------------------------
Operating Information and Yields/Rates                                                                                 2016              2015                                                      2016                                                   2016                2015
------------------------------------------------------------------------ --------------------                                           ---------                                          ------------------                                          ---------------                                          -----------                                          ---------------------
($ in thousands)
Operating Information
------------------------------------------------------------------------
Net income to average assets (3)                                                                                                          1.00 %                                                      0.93 %                                                1.02 %                                                  1.02 %                                                      0.96    %
Net income available to common shareholders to average common equity (3)                                                                 11.51 %                                                     10.74 %                                               11.62 %                                                 11.67 %                                                     10.72    %
Dividend payout ratio                                                                                                                     15.6 %                                                      17.8 %                                                16.0 %                                                  16.1 %                                                      18.5    %
Efficiency ratio (4)                                                                                                                      60.1 %                                                      60.8 %                                                60.5 %                                                  60.5 %                                                      59.5    %
                                                                                                                                                                                                                                                                                                                                                                      
Net loan charge-offs (recoveries)                                                                                                        $ 207                                                   $   1,395                                                $  626                                                 $ 1,852                                                   $   1,723
Net loan charge-offs to average total loans (3)                                                                                           0.00 %                                                      0.01 %                                                0.01 %                                                  0.00 %                                                      0.00    %
                                                                                                                                                                                                                                                                                                                                                                      
Yields/Rates (3)
------------------------------------------------------------------------
Cash and cash equivalents                                                                                                                 0.53 %                                                      0.28 %                                                0.48 %                                                  0.50 %                                                      0.26    %
Investment securities (5), (6)                                                                                                            3.97 %                                                      4.39 %                                                4.22 %                                                  4.16 %                                                      4.58    %
Loans (5), (7)                                                                                                                            3.33 %                                                      3.39 %                                                3.35 %                                                  3.38 %                                                      3.42 %
FHLB stock (8)                                                                                                                           26.45 %                                                     10.49 %                                                8.48 %                                                 12.51 %                                                     14.29 %
                                                                                                                                        --------                                           -----------------                                           --------------                                           ----------                                           --------------------
                                                                                                                                                                                                                                                                                                                                                                      
   Total interest-earning assets                                                                                                          3.44 %                                                      3.36 %                                                3.43 %                                                  3.46 %                                                      3.49    %
                                                                                                                                                                                                                                                                                                                                                                      
Checking                                                                                                                                  0.01 %                                                      0.01 %                                                0.02 %                                                  0.01 %                                                      0.00 %
Money market checking and savings                                                                                                         0.13 %                                                      0.07 %                                                0.12 %                                                  0.10 %                                                      0.07    %
CDs (7)                                                                                                                                   1.17 %                                                      1.24 %                                                1.15 %                                                  1.18 %                                                      1.24    %
                                                                                                                                        --------                                           -----------------                                           --------------                                           ----------                                           --------------------
   Total deposits                                                                                                                         0.15 %                                                      0.14 %                                                0.15 %                                                  0.14 %                                                      0.14    %
                                                                                                                                                                                                                                                                                                                                                                      
Short-term borrowings                                                                                                                     1.80 %                                                      1.31 %                                                1.18 %                                                  0.66 %                                                      0.73    %
Long-term FHLB advances                                                                                                                   1.46 %                                                      1.55 %                                                1.49 %                                                  1.54 %                                                      1.57    %
Senior notes (9)                                                                                                                          2.59 %                                                      2.59 %                                                2.59 %                                                  2.59 %                                                      2.59    %
Subordinated notes (9)                                                                                                                    4.57 %                                            -- %                                                4.60 %                                                  4.56 %                                            --    %
Other borrowings                                                                                                                          1.83 %                                                      1.67 %                                                1.23 %                                                  1.69 %                                                      1.62    %
                                                                                                                                        --------                                           -----------------                                           --------------                                           ----------                                           --------------------
   Total borrowings                                                                                                                       1.75 %                                                      1.63 %                                                1.70 %                                                  1.62 %                                                      1.62    %
                                                                                                                                        --------                                           -----------------                                           --------------                                           ----------                                           --------------------
                                                                                                                                                                                                                                                                                                                                                                      
   Total interest-bearing liabilities                                                                                                     0.30 %                                                      0.27 %                                                0.29 %                                                  0.28 %                                                      0.31    %
                                                                                                                                                                                                                                                                                                                                                                      
Net interest spread                                                                                                                       3.14 %                                                      3.09 %                                                3.14 %                                                  3.18 %                                                      3.18    %
                                                                                                                                                                                                                                                                                                                                                                      
Net interest margin (5)                                                                                                                   3.16 %                                                      3.10 %                                                3.16 %                                                  3.20 %                                                      3.21    %
                                                                                                                                                                                                                                                                                                                                                                      
Core net interest margin (non-GAAP) (2), (5)                                                                                              3.08 %                                                      3.02 %                                                3.11 %                                                  3.14 %                                                      3.09    %
__________
(3)   For periods less than a year, ratios are annualized.
(4)                      Efficiency ratio is the ratio of noninterest expense to the sum of
                         net interest income and noninterest income.
(5)                      Calculated on a fully taxable-equivalent basis.
(6)                      Includes securities purchased under agreements to resell.
(7)                      Yield/rate includes accretion/amortization of purchase accounting
                         discounts/premiums. For CDs, the premiums were fully amortized as
                         of June 30, 2015, therefore there was no amortization in 2016.
(8)                      Yield for the quarter and year ended December 31, 2016 includes a
                         special FHLB dividend of $5.9 million. Yield for the year ended
                         December 31, 2015 includes a special FHLB dividend of $9.1 million.
(9)                      Rate includes amortization of issuance discounts and costs.
                          
                                                                                                                                                                                                 
                                                                                                                                                     Quarter Ended                                                                                                    Quarter Ended                                                                                                         Year Ended
                                                                                                                                                     December 31,                                                                                                     September 30,                                                                                                        December 31,
                                                                                                     ------------------------------------------------------------------------------------------------------------                                          ----------------------------------                                          --------------------------------------------------------------------------------------------------------------------
Mortgage Loan Sales                                                                             2016                                 2015                                                                        2016                                                                         2016                                     2015
------------------------------------- --------------------                                           ---------------------------------                                          ---------------------------------                                          ----------------------------------                                          ------------------------------------                                          --------------------------------------
($ in thousands)
Loans sold:
   Agency                                                                                              $ 180,188                                                                  $  73,244                                                                   $ 137,949                                                                   $   434,094                                                                     $   273,128
   Non-agency                                                                                            620,819                                                 294,359                                                  810,006                                                  2,713,333                                                    2,156,132  
                                                                                                     --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           -------------------------------------
      Total loans sold                                                                                 $ 801,007                                               $ 367,603                                                $ 947,955                                                $ 3,147,427                                                  $ 2,429,260  
                                                                                                     === ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                      
Gain on sale of loans:
   Amount                                                                                              $     818                                                                  $   1,480                                                                   $   1,785                                                                   $     4,828                                                                     $     9,725
   Gain as a percentage of loans sold                                                                       0.10                    %                                                  0.40                    %                                                   0.19 %                                                                        0.15                    %                                                       0.40                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                  
                                                                                                                                                                                                                                                            As of
                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      December 31,                         September 30,                         June 30,                            March 31,                       December 31,
Loan Servicing Portfolio                                                               2016                                                                       2016                                                                      2016                                                                      2016                                                                    2015
---------------------------- --------------------                                           ------------------------------                                             ------------------------------                                             ----------------------------                                             -----------------------------                                             --------------------------
($ in millions)
Loans serviced for investors                                                                   $ 11,655                                                $ 11,494                                              $ 11,061                                               $ 10,654                                                  $               10,531
                                                                                            ==== ====== ====================                                           ==== ====== ====================                                           == ====== ====================                                           === ====== ====================                                           ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                               
                                                                                                                                              Quarter Ended                                                                                                        Quarter Ended                                                                                                    Year Ended
                                                                                                                                              December 31,                                                                                                         September 30,                                                                                                   December 31,
                                                                                           ------------------------------------------------------------------------------------------------------------------                                          ------------------------------------                                          ---------------------------------------------------------------------------------------------------------
Loan Originations                                                                       2016                                    2015                                                                          2016                                                                          2016                                2015
--------------------------- --------------------                                           ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          -------------------------------------                                          --------------------------
($ in thousands)
Single family (1-4 units)                                                                     $ 3,064,315                                                                   $ 1,635,350                                                                   $ 2,805,361                                                                   $ 10,615,621                                                                   $            7,633,653
Home equity lines of credit                                                                       452,445                                                                       398,267                                                                       454,529                                                                      1,815,252                                                                                1,575,262
Multifamily (5+ units)                                                                            742,991                                                                       302,435                                                                       566,528                                                                      2,542,551                                                                                1,461,123
Commercial real estate                                                                            446,677                                                                       292,369                                                                       311,466                                                                      1,354,527                                                                                1,344,072
Construction                                                                                      480,480                                                                       305,085                                                                       410,538                                                                      1,342,404                                                                                1,291,902
Business                                                                                        2,137,549                                                                     1,343,953                                                                     1,529,400                                                                      5,572,410                                                                                5,138,716
Stock and other secured                                                                           328,105                                                                       270,259                                                                       207,241                                                                      1,401,559                                                                                  808,567
Unsecured                                                                                         281,740                                                    161,753                                                    190,836                                                   1,076,550                                                               418,667
                                                                                           -----------------------------------                                           -----------------------------------                                           -----------------------------------                                           ------------------------------------                                           --------------------------
   Total loans originated                                                                     $ 7,934,302                                                $ 4,709,471                                                $ 6,475,899                                                $ 25,720,874                                                $           19,671,962
                                                                                           ==== ========= ====================                                           ==== ========= ====================                                           ==== ========= ====================                                           ==== ========== ====================                                           ==== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                          
                                             
                                                                                                                                                                                                                                                                                 As of
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       December 31,                              September 30,                         June 30,                            March 31,                           December 31,
Asset Quality Information                                                                               2016                                                                            2016                                                                      2016                                                                      2016                                                                        2015
--------------------------------------- --------------------                                           -----------------------------------------                                             ------------------------------                                             ----------------------------                                             -----------------------------                                             ----------------------------------
($ in thousands)
Nonperforming assets:
   Nonaccrual loans                                                                                          $         49,020                                                                   $ 52,759                                                                 $ 57,953                                                                  $ 59,203                                                                      $  73,545
   Other real estate owned                                                                                     --                                                   1,196                                                 1,196                                                  1,393                                              --  
                                                                                                       -------------------------------------------                                           --------------------------------                                           ------------------------------                                           -------------------------------                                           ------------------------------------
      Total nonperforming assets                                                                             $         49,020                                                $ 53,955                                              $ 59,149                                               $ 60,596                                                   $  73,545  
                                                                                                       ======= ============== ====================                                           ==== ====== ====================                                           == ====== ====================                                           === ====== ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                            
Nonperforming assets to total assets                                                                                     0.07 %                                                                     0.08 %                                                                   0.09 %                                                                    0.10 %                                                                         0.12 %
                                                                                                                                                                                                                                                                                                                                                                                                                            
Accruing loans 90 days or more past due                                                                      $ --                                                                   $  3,083                                                                 $    451                                                                  $  3,189                                                                      $   4,199
                                                                                                                                                                                                                                                                                                                                                                                                                            
Restructured accruing loans                                                                                  $         14,278                                                                   $ 13,968                                                                 $ 11,822                                                                  $ 13,978                                                                      $  14,043
                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                  
                                                                                                                                                                                                                                                                           As of
                                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      December 31,                        September 30,                        June 30,                           March 31,                       December 31,
Book Value Ratios                                                                                      2016                                                                      2016                                                                     2016                                                                     2016                                                                    2015
-------------------------------------------- --------------------                                           -----------------------------                                             -----------------------------                                             ----------------------------                                             ----------------------------                                             --------------------------
(in thousands, except per share amounts)
Number of shares of common stock outstanding                                                                   154,292                                                150,109                                               149,722                                               146,314                                                                 146,110
                                                                                                            ===============================                                           ===============================                                           ==============================                                           ==============================                                           ============================
Book value per common share                                                                                    $ 37.39                                                $ 35.34                                               $ 34.51                                               $ 33.12                                                  $                32.28
                                                                                                            ==== ===== ====================                                           ==== ===== ====================                                           === ===== ====================                                           === ===== ====================                                           ====== ====================
Tangible book value per common share                                                                           $ 35.35                                                $ 33.41                                               $ 32.53                                               $ 31.05                                                  $                30.16
                                                                                                            ==== ===== ====================                                           ==== ===== ====================                                           === ===== ====================                                           === ===== ====================                                           ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                              
                                                                                                                                                                                                                                                                                       As of
                                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                        2016                                                                                                                                             2015
                                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------
                                                                                                                                                        December 31 (10)                                        September 30              June 30             March 31                                                    December 31
                                                                                                                        --------------------------------------------------------------------------------                                          ---------------------                                          -----------------                                          -----------------                                          --------------------
Capital Ratios                                                                                            Actual                  Fully                                                                                                                                                   Actual
                                                                                                                                                                                      Phased-in (11)
-------------------------------------------------------- --------------------                                           --------------                                             ------------------                                             ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Tier 1 leverage ratio (Tier 1 capital to average assets)                                                                         9.37  %                                                      9.31    %                                                      9.26    %                                                    9.58  %                                                    9.38  %                                                        9.21 %
Common Equity Tier 1 capital to risk-weighted assets                                                                            10.75  %                                                     10.64    %                                                     10.52    %                                                   10.74  %                                                   10.61  %                                                       10.76 %
Tier 1 capital to risk-weighted assets                                                                                          12.97  %                                                     12.87    %                                                     12.88    %                                                   13.23  %                                                   13.24  %                                                       13.13 %
Total capital to risk-weighted assets                                                                                           14.35  %                                                     14.25    %                                                     14.33    %                                                   13.86  %                                                   13.88  %                                                       13.78 %
                                                                                                                                                                                                                                                                                                                                                                                                                                        
Regulatory Capital (12)                                   
-------------------------------------------------------- --------------------
($ in thousands)
Common Equity Tier 1 capital                                                                                             $  5,496,610                                                 $  5,446,945                                                   $  5,046,133                                                 $  4,916,224                                               $  4,592,972                                                   $  4,502,206
Tier 1 capital                                                                                                           $  6,631,429                                                 $  6,586,470                                                   $  6,180,343                                                 $  6,055,749                                               $  5,732,497                                                   $  5,491,731
Total capital                                                                                                            $  7,337,771                                                 $  7,292,812                                                   $  6,875,478                                                 $  6,346,692                                               $  6,010,910                                                   $  5,765,254
                                                                                                                                                                                                                                                                                                                                                                                                                                        
Assets (12)                                               
-------------------------------------------------------- --------------------
($ in thousands)
Average assets                                                                                                           $ 70,779,234                                                 $ 70,734,276                                                   $ 66,758,108                                                 $ 63,191,099                                               $ 61,092,211                                                   $ 59,603,505
Risk-weighted assets                                                                                                     $ 51,132,230                                                 $ 51,180,885                                                   $ 47,969,927                                                 $ 45,785,355                                               $ 43,298,200                                                   $ 41,839,779
__________
(10)   Ratios and amounts as of December 31, 2016 are preliminary.
(11)                      Certain adjustments required under the Basel III Capital Rules
                          will be phased in through the end of 2018. The ratios and amounts
                          shown in this column are calculated assuming a fully phased-in
                          basis of all such adjustments as if they were effective as of
                          December 31, 2016.
(12)                      As defined by regulatory capital rules.
                           
                                             
                                                                                                                                                                                                                                                                          As of
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 December 31,                         September 30,                          June 30,                            March 31,                         December 31,
Wealth Management Assets                                                                          2016                                                                       2016                                                                       2016                                                                      2016                                                                      2015
--------------------------------------- --------------------                                           ------------------------------                                             ------------------------------                                             -----------------------------                                             -----------------------------                                             ------------------------------
($ in millions)
First Republic Investment Management                                                                      $ 41,154                                                                   $ 40,103                                                                  $ 38,288                                                                  $ 36,872                                                                         $               35,230
                                                                                                                                                                                                                                                                                                                                                                                                                  
Brokerage and investment:
   Brokerage                                                                                                32,218                                                                     31,058                                                                    28,644                                                                    27,296                                                                                         26,059
   Money market mutual funds                                                                                 2,048                                                   1,902                                                  1,610                                                  1,906                                                                       4,155
                                                                                                       --------------------------------                                           --------------------------------                                           -------------------------------                                           -------------------------------                                           --------------------------------
      Total brokerage and investment                                                                        34,266                                                  32,960                                                 30,254                                                 29,202                                                                      30,214
                                                                                                       --------------------------------                                           --------------------------------                                           -------------------------------                                           -------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                  
Trust Company:
   Trust                                                                                                     3,754                                                                      3,171                                                                     3,434                                                                     3,343                                                                                          3,375
   Custody                                                                                                   4,406                                                   3,954                                                  3,835                                                  4,004                                                                       3,474
                                                                                                       --------------------------------                                           --------------------------------                                           -------------------------------                                           -------------------------------                                           --------------------------------
      Total Trust Company                                                                                    8,160                                                   7,125                                                  7,269                                                  7,347                                                                       6,849
                                                                                                       --------------------------------                                           --------------------------------                                           -------------------------------                                           -------------------------------                                           --------------------------------
         Total Wealth Management Assets                                                                   $ 83,580                                                $ 80,188                                               $ 75,811                                               $ 73,421                                                      $               72,293
                                                                                                       ==== ====== ====================                                           ==== ====== ====================                                           === ====== ====================                                           === ====== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                   
                                                                                                                                                           Quarter Ended                                                                                                             Quarter Ended                                                                                                     Year Ended
                                                                                                                                                           December 31,                                                                                                              September 30,                                                                                                    December 31,
                                                                                                     -------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------                                          -------------------------------------------------------------------------------------------------------
Average Balance Sheet                                                                              2016                                        2015                                                                             2016                                                                             2016                               2015
------------------------------------- --------------------                                           ------------------------------------                                             -------------------------------------                                             ------------------------------------                                             ------------------------------------                                             --------------------
($ in thousands)
Assets:
Cash and cash equivalents                                                                                 $  1,773,312                                                                      $  3,921,839                                                                     $  2,162,287                                                                     $  1,913,466                                                                         $  2,425,747
Investment securities (13)                                                                                  14,343,171                                                                         9,442,168                                                                       12,082,827                                                                       12,172,626                                                                            7,963,001
Loans (14)                                                                                                  51,107,467                                                                        43,042,968                                                                       49,030,453                                                                       47,912,320                                                                           40,889,434
FHLB stock                                                                                                     147,697                                                        139,784                                                       173,543                                                       154,036                                                           192,135
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
   Total interest-earning assets                                                                            67,371,647                                                     56,546,759                                                    63,449,110                                                    62,152,448                                                        51,470,317
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Noninterest-earning cash                                                                                       312,323                                                                           287,695                                                                          277,963                                                                          283,292                                                                              263,627
Goodwill and other intangibles                                                                                 294,699                                                                           312,665                                                                          292,824                                                                          298,014                                                                              235,044
Other assets                                                                                                 3,091,686                                                      2,694,402                                                     3,002,033                                                     3,001,916                                                         2,504,807
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
   Total noninterest-earning assets                                                                          3,698,708                                                                         3,294,762                                                                        3,572,820                                                                        3,583,222                                                                            3,003,478
                                                                                                                                                                                                                                                                                                                                                               
                                                                                                     ---------------------------------------                                          ----------------------------------------                                          ---------------------------------------                                          ---------------------------------------                                          ----------------------
      Total Assets                                                                                        $ 71,070,355                                                   $ 59,841,521                                                  $ 67,021,930                                                  $ 65,735,670                                                      $ 54,473,795
                                                                                                     ====== ========== ====================                                           ======= ========== ====================                                           ====== ========== ====================                                           ====== ========== ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Liabilities and Equity:
Checking                                                                                                  $ 35,547,235                                                                      $ 30,189,409                                                                     $ 33,276,648                                                                     $ 33,150,987                                                                         $ 25,993,413
Money market checking and savings                                                                           16,751,447                                                                        13,607,852                                                                       15,921,781                                                                       14,979,993                                                                           12,905,039
CDs (14)                                                                                                     4,911,972                                                      4,485,104                                                     4,688,438                                                     4,642,625                                                         4,086,327
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
   Total deposits                                                                                           57,210,654                                                     48,282,365                                                    53,886,867                                                    52,773,605                                                        42,984,779
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Short-term borrowings                                                                                          103,261                                                                           100,000                                                                          174,205                                                                          499,253                                                                              120,339
Long-term FHLB advances                                                                                      4,953,261                                                                         4,302,174                                                                        4,794,022                                                                        4,459,836                                                                            4,772,192
Senior notes (15)                                                                                              397,857                                                                           397,064                                                                          397,657                                                                          397,559                                                                              396,774
Subordinated notes (15)                                                                                        387,356                                                                    --                                                                          256,805                                                                          161,920                                                                       --
Other borrowings                                                                                                26,700                                                         30,211                                                        27,557                                                        28,076                                                            32,017
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
   Total borrowings                                                                                          5,868,435                                                      4,829,449                                                     5,650,246                                                     5,546,644                                                         5,321,322
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                           
   Total interest-bearing liabilities                                                                       63,079,089                                                     53,111,814                                                    59,537,113                                                    58,320,249                                                        48,306,101
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Noninterest-bearing liabilities                                                                              1,262,604                                                                         1,133,650                                                                        1,055,656                                                                        1,109,027                                                                              899,116
Preferred equity                                                                                             1,139,525                                                                           989,525                                                                        1,139,525                                                                        1,123,132                                                                              949,525
Common equity                                                                                                5,589,137                                                      4,606,532                                                     5,289,636                                                     5,183,262                                                         4,319,053
                                                                                                     --------------------------------------                                           ---------------------------------------                                           --------------------------------------                                           --------------------------------------                                           ----------------------
      Total Liabilities and Equity                                                                        $ 71,070,355                                                   $ 59,841,521                                                  $ 67,021,930                                                  $ 65,735,670                                                      $ 54,473,795
                                                                                                     ====== ========== ====================                                           ======= ========== ====================                                           ====== ========== ====================                                           ====== ========== ====================                                           ========== ==========
__________
(13)   Includes securities purchased under agreements to resell.
(14)                      Average balances are presented net of purchase accounting
                          discounts or premiums. For CDs, the premiums were fully amortized
                          as of June 30, 2015.
(15)                      Average balances include unamortized issuance discounts and costs.
                           
                                                                                                                                                                                                                          
                                                                                                                                                                       Quarter Ended                                                                                                         Quarter Ended                                                                                                   Year Ended
                                                                                                                                                                       December 31,                                                                                                          September 30,                                                                                                  December 31,
                                                                                                                   --------------------------------------------------------------------------------------------------------------------                                          -------------------------------------                                          -----------------------------------------------------------------------------------------------------
Purchase Accounting Accretion and Amortization (16)                                                             2016                                     2015                                                                           2016                                                                           2016                              2015
--------------------------------------------------- --------------------                                           ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             --------------------
($ in thousands)
Accretion/amortization to net interest income:
   Loans                                                                                                                 $   6,487                                                                      $   9,974                                                                      $   7,804                                                                      $  29,248                                                                         $     43,467
   Deposits                                                                                                         --                                              --                                              --                                              --                                                             1,006
                                                                                                                   ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ----------------------
      Total                                                                                                              $   6,487                                                   $   9,974                                                   $   7,804                                                   $  29,248                                                      $     44,473
                                                                                                                   ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                
Amortization to noninterest expense:
   Intangible assets                                                                                                     $   2,368                                                   $   3,007                                                   $   2,530                                                   $  10,434                                                      $     12,993
                                                                                                                   ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                
Net pre-tax impact of purchase accounting                                                                                $   4,119                                                   $   6,967                                                   $   5,274                                                   $  18,814                                                      $     31,480
                                                                                                                   ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ========== ==========
__________
(16)   Related to the Bank’s re-establishment as an independent institution.
                           

Use of Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles in the United States ("GAAP") and the prevailing practices in the banking industry. Due to the application of purchase accounting from the Bank’s re-establishment as an independent institution, management has historically used certain non-GAAP (i.e., core) measures and ratios that excluded the impact of these net positive purchase accounting items to evaluate our performance, including net income, earnings per share, revenues, yield on average loans, cost of average deposits, net interest margin and the efficiency ratio. However, due to the diminishing impact of these positive purchase accounting items since the beginning of 2016, only the yield on average loans and net interest margin are presented on a non-GAAP, or core, basis.

The accretion and amortization of the fair value adjustments recorded in purchase accounting from the Bank’s re-establishment as an independent institution affect our net interest margin and yield on average loans as we accrete loan discounts to interest income and amortize premiums on CDs to interest expense.

In addition, in the fourth quarter of 2016 and in the second quarter of 2015, the Bank received special dividends from the FHLB of $5.9 million and $9.1 million, respectively. Management has also excluded the positive impact of these items from the non-GAAP net interest margin.

We believe these two non-GAAP measures, when taken together with the corresponding GAAP measures, provide meaningful supplemental information regarding our performance. Our management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing our operating results and related trends. However, these non-GAAP measures should be considered in addition to, and not as a substitute for or preferable to, the measurements prepared in accordance with GAAP. In the tables below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures to the non-GAAP financial measures, or a reconciliation of the non-GAAP calculation of the financial measure:

                                                                                                                                                                                                                         
                                                                                                                                                                       Quarter Ended                                                                                                           Quarter                                                                                                              Year Ended
                                                                                                                                                                       December 31,                                                                                                             Ended                                                                                                              December 31,
                                                                                                                                                                                                                                                                                            September 30,
                                                                                                                    ----------------------------------------------------------------------------------------------------------                                                  ----------------------------------                                             ------------------------------------------------------------------------------------------------------------
Yield on Average Loans                                                                                           2016                                    2015                                                                          2016                                                                           2016                                     2015
---------------------------------------------------- --------------------                                           ---------------------------------                                             ---------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------
($ in thousands)
Interest income on loans                                                                                              $    418,423                                                                  $    357,446                                                                   $    403,299                                                                   $  1,573,403                                                                   $  1,361,654
Add: Tax-equivalent adjustment on loans                                                                                     11,403                                                     10,571                                                      11,513                                                      44,535                                                      38,657  
                                                                                                                    -----------------------------------                                           -----------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Interest income on loans (tax-equivalent basis)                                                                            429,826                                                                       368,017                                                                        414,812                                                                      1,617,938                                                                      1,400,311
Less: Accretion                                                                                                             (6,487 )                                                                      (9,974 )                                                                       (7,804 )                                                                      (29,248 )                                                                      (43,467 )
                                                                                                                    -----------------------------------                                           -----------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Core interest income on loans (tax-equivalent basis)                                                                  $    423,339                                               $    358,043                                                $    407,008                                                $  1,588,690                                                $  1,356,844  
(non-GAAP)
                                                                                                                    === ========== ====================                                           === ========== ====================                                           ==== ========== ====================                                           ==== ========== ====================                                           ==== ========== ====================
Average loans                                                                                                         $ 51,107,467                                                                  $ 43,042,968                                                                   $ 49,030,453                                                                   $ 47,912,320                                                                   $ 40,889,434
Add: Average unaccreted loan discounts                                                                                      83,195                                                    114,338                                                      90,723                                                      94,537                                                     131,111  
                                                                                                                    -----------------------------------                                           -----------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Average loans (non-GAAP)                                                                                              $ 51,190,662                                               $ 43,157,306                                                $ 49,121,176                                                $ 48,006,857                                                $ 41,020,545  
                                                                                                                    === ========== ====================                                           === ========== ====================                                           ==== ========== ====================                                           ==== ========== ====================                                           ==== ========== ====================
Yield on average loans--reported (5)                                                                              3.33                    %                                                     3.39                    %                                                      3.35                    %                                                      3.38                    %                                                      3.42                    %
Contractual yield on average loans (non-GAAP) (5)                                                                             3.27                    %                                                     3.28                    %                                                      3.28                    %                                                      3.31                    %                                                      3.31                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                              
Net Interest Margin                              
----------------------------------------------- --------------------
($ in thousands)
Net interest income                                                                                              $    490,625                                                                      $    404,699                                                                      $    460,604                                                                   $  1,817,162                                                                   $  1,516,663
Add: Tax-equivalent adjustment                                                                                         46,693                                                         36,927                                                         44,443                                                     172,424                                                     134,352  
                                                                                                               -----------------------------------                                           ---------------------------------------                                           ---------------------------------------                                           ------------------------------------                                           ------------------------------------
Net interest income (tax-equivalent basis)                                                                            537,318                                                                           441,626                                                                           505,047                                                                      1,989,586                                                                      1,651,015
Less: Accretion/amortization                                                                                           (6,487 )                                                                          (9,974 )                                                                          (7,804 )                                                                      (29,248 )                                                                      (44,473 )
Less: Special FHLB dividend                                                                                            (5,920 )                                                                  --                                                 --                                                      (5,920 )                                                                       (9,134 )
                                                                                                               -----------------------------------                                           ---------------------------------------                                           ---------------------------------------                                           ------------------------------------                                           ------------------------------------
Core net interest income (tax-equivalent basis)                                                                  $    524,911                                                   $    431,652                                                   $    497,243                                                $  1,954,418                                                $  1,597,408  
(non-GAAP)
                                                                                                               === ========== ====================                                           ======= ========== ====================                                           ======= ========== ====================                                           ==== ========== ====================                                           ==== ========== ====================
Average interest-earning assets                                                                                  $ 67,371,647                                                                      $ 56,546,759                                                                      $ 63,449,110                                                                   $ 62,152,448                                                                   $ 51,470,317
Add: Average unaccreted loan discounts                                                                                 83,195                                                        114,338                                                         90,723                                                      94,537                                                     131,111  
                                                                                                               -----------------------------------                                           ---------------------------------------                                           ---------------------------------------                                           ------------------------------------                                           ------------------------------------
Average interest-earning assets (non-GAAP)                                                                       $ 67,454,842                                                   $ 56,661,097                                                   $ 63,539,833                                                $ 62,246,985                                                $ 51,601,428  
                                                                                                               === ========== ====================                                           ======= ========== ====================                                           ======= ========== ====================                                           ==== ========== ====================                                           ==== ========== ====================
Net interest margin--reported (5)                                                                            3.16                    %                                                         3.10                    %                                                         3.16                    %                                                      3.20                    %                                                      3.21                    %
Core net interest margin (non-GAAP) (5)                                                                                  3.08                    %                                                         3.02                    %                                                         3.11                    %                                                      3.14                    %                                                      3.09                    %

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170113005104r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170113005104/en/

SOURCE: First Republic Bank

Investors: 
Addo Investor Relations 
Andrew Greenebaum, 310-829-5400 
agreenebaum@addoir.com 
Lasse Glassen, 310-829-5400 
lglassen@addoir.com 
or 
Media: 
Blue Marlin Partners 
Greg Berardi, 415-239-7826 
greg@bluemarlinpartners.com


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