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 First Republic Reports Strong 2017 Results
   Tuesday, January 16, 2018 8:00:06 AM ET

--Wealth Management Assets Increased 28% Year-Over-Year

First Republic Bank (FRC ) today announced financial results for the quarter and year ended December 31, 2017.

"2017 was another strong year for growth in deposits, loans and wealth management assets," said Jim Herbert, Chairman and CEO. "Our stable, client-centric business model continues to perform well across the franchise."

Full Year Highlights

Financial Results

- Revenues were $2.6 billion, up 18.1%.

- Net income was $757.7 million, up 12.5%.

- Diluted earnings per share of $4.31, up 9.7%.

- Loan originations totaled $27.6 billion, our strongest year ever.



- Efficiency ratio was 62.8%.

- Tangible book value per share was $40.43, up 14.4%.

Continued Capital and Credit Strength

- Total regulatory capital has grown 15.4% (1) from a year ago.

- Common Equity Tier 1 ratio was 10.63%, compared to 10.83% a year ago.

- Nonperforming assets remained very low at 4 basis points of total assets.

- Net charge-offs were only $647,000, or less than 1 basis point of average loans.

Continued Franchise Development

- Loans, excluding loans held for sale, totaled $62.8 billion, up 20.8%.

- Deposits were $68.9 billion, up 17.6%.

- Wealth management assets were $107.0 billion, up 28.0%.

- Wealth management revenues were $356.4 million, up 22.4%.

Quarterly Highlights

- Compared to last year’s fourth quarter:

- Revenues were $699.2 million, up 16.6%.

- Net interest income was $568.9 million, up 15.9%.

- Net income was $194.3 million, up 8.5%.

- Diluted EPS of $1.10, up 6.8%.

- Loan originations were $7.4 billion, our second best quarter ever.

- Loans sold totaled $969.2 million for the quarter.

- Net credit recoveries were $1.1 million.

- Net interest margin was 3.08%, compared to 3.09% for the prior quarter.

- Efficiency ratio was 63.7%, compared to 62.4% for the prior quarter.

- Wealth management assets were $107.0 billion, up 5.5% from the prior quarter.

"We are very pleased that both revenue and net interest income grew 18% for the year," said Mike Roffler, Chief Financial Officer. "Asset quality remains excellent and capital is strong."

Quarterly Cash Dividend Declared

The Bank declared a cash dividend for the fourth quarter of $0.17 per share of common stock, which is payable on February 8, 2018 to shareholders of record as of January 25, 2018.

Very Strong Asset Quality

Credit quality remains very strong. Nonperforming assets were only 4 basis points of total assets at December 31, 2017.

The Bank had net recoveries for the quarter of $1.1 million, while adding $17.0 million to its allowance for loan losses due to continued loan growth. For 2017, the Bank had net charge-offs of only $647,000, while adding $60.2 million to its allowance for loan losses.

Continued Capital Strength

Total regulatory capital has grown 15.4% (1) from a year ago.

The Bank’s Common Equity Tier 1 ratio was 10.63%at December 31, 2017, compared to 10.83% a year ago.

During the fourth quarter, the Bank issued and sold 2,875,000 new shares of common stock in an underwritten public offering, which added approximately $275.2 million to common equity.

Tangible Book Value Growth

Tangible book value per common share at December 31, 2017 was $40.43, up 14.4% from a year ago.

Continued Franchise Development

Strong Loan Originations

Loan originations were $7.4 billion for the quarter, compared to a record $7.9 billion for the same quarter a year ago. For 2017, loan originations totaled $27.6 billion, up 7.4% compared to the prior year primarily due to increases in single family, multifamily and business lending.

Loans, excluding loans held for sale, totaled $62.8 billion at December 31, 2017, up 20.8% compared to a year ago. The increase was primarily due to growth in single family, multifamily and business loans.

Deposit Growth

Total deposits increased to $68.9 billion, up 17.6% compared to a year ago.

At December 31, 2017, checking accounts totaled 63.4% of deposits.

The average rate paid on deposits was 0.28% during the quarter, compared to 0.25% for the prior quarter.

Investments

Total investment securities at December 31, 2017 were $18.6 billion, up 6.0% for the quarter and up 22.6% compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $10.5 billion at December 31, 2017, and represented 12.4% of average total assets.

Mortgage Banking Activity

During the fourth quarter, the Bank sold $969.2 million of loans and recorded a gain on sale of $3.1 million, compared to loan sales of $801.0 million and a gain of $818,000 during the fourth quarter of last year. For 2017, the Bank sold $2.9 billion of loans and recorded a gain on sale of $9.2 million.

Loans serviced for investors at year-end totaled $12.5 billion, up 7.2% from a year ago. Net loan servicing fees for the quarter were $3.9 million and were $13.8 million for the year.

Continued Expansion of Wealth Management

Wealth management revenues totaled $103.7 million for the quarter, up 30.0% compared to last year’s fourth quarter. For 2017, wealth management revenues were $356.4 million, an increase of 22.4% compared to the prior year. Such revenues represented 14.8% of the Bank’s total revenues for the quarter and 13.6% of the Bank’s total revenues for the year.

Total wealth management assets were $107.0 billion at December 31, 2017, up 5.5% for the quarter and up 28.0% compared to a year ago. The growth in wealth management assets was due to both net new assets from existing and new clients and market appreciation.

Wealth management assets included investment management assets of $52.7 billion, brokerage assets and money market mutual funds of $44.7 billion, and trust and custody assets of $9.6 billion.

Income Statement and Key Ratios

Highlights

Strong Revenue Growth

Total revenues were $699.2 million for the quarter, up 16.6% compared to the fourth quarter a year ago and were $2.6 billion for 2017, up 18.1% compared to the prior year.

Strong Net Interest Income Growth

Net interest income was $568.9 million for the quarter, up 15.9% compared to the fourth quarter a year ago, and was $2.2 billion for 2017, up 18.4% compared to the prior year. The increases in net interest income resulted primarily from growth in average earning assets.

Net Interest Margin

The net interest margin was 3.08% for the fourth quarter, compared to 3.09% for the prior quarter, and 3.16% for the fourth quarter of 2016. For 2017, the Bank’s net interest margin was 3.13%, compared to 3.20% for the prior year.

Noninterest Income

Noninterest income was $130.3 million for the quarter, up 19.7% compared to the fourth quarter a year ago, and was $460.5 million for 2017, up 16.6% compared to the prior year. The increases were primarily from growth in wealth management revenues.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $445.5 million for the quarter, up 23.7% compared to the fourth quarter a year ago. For 2017, noninterest expense was $1.6 billion, up 22.6% from the prior year. The increases were primarily due to increased salaries and benefits, information systems and other costs from the continued investments in the expansion of the franchise, including investments in Gradifi.

The efficiency ratio was 63.7% for the quarter, compared to 62.4% for the prior quarter and 60.1% for the fourth quarter a year ago. For all of 2017, the efficiency ratio was 62.8%, compared to 60.5% for 2016.

Income Taxes

On December 22, 2017, H.R.1, formerly known as the Tax Cuts and Jobs Act (the "Tax Reform Act"), was enacted into law. Beginning in 2018, the Tax Reform Act reduces the federal tax rate for corporations from 35% to 21% and changes or limits certain tax deductions. As a result of the lower corporate tax rate, during the fourth quarter of 2017, the Bank recorded a one-time revaluation adjustment of $39.7 million to reduce its deferred tax assets, which increased the provision for income taxes.

In addition, during the fourth quarter of 2017, the volume of stock option exercises by Bank employees and directors increased considerably in response to tax reform legislation. This activity resulted in $50.0 million of excess tax benefits, which decreased the Bank’s provision for income taxes.

The Bank’s effective tax rate for the fourth quarter of 2017 was 17.9%, compared to 17.3% for the prior quarter. The increase in the effective tax rate during the quarter resulted from the one-time revaluation of deferred tax assets, partially offset by the increase in the volume of stock option exercises by Bank employees and directors.

The effective tax rate for 2017 was 16.9%, compared to 18.6% in 2016. The decrease in 2017 resulted primarily from the continued growth in tax-advantaged investments during the year. In addition, the decrease in the effective tax rate was the result of the increase in the volume of stock option exercises by Bank employees and directors, partially offset by the one-time revaluation of deferred tax assets.

For 2018, the Bank expects its effective tax rate to be approximately 19%.

__________

(1) Regulatory capital growth after the redemption of our 5.625% Series C Preferred Stock on January 2, 2018 at an aggregate amount of $150.0 million.

Conference Call Details

First Republic Bank’s fourth quarter and full year 2017 earnings conference call is scheduled for January 16, 2018 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (877) 407-0792 approximately 10 minutes prior to the start time (to allow time for registration). International callers should dial +1 (201) 689-8263.

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

For those unable to join the live presentation, a replay of the call will be available beginning January 16, 2018, at 10:00 a.m. PT / 1:00 p.m. ET, through January 23, 2018, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (844) 512-2921 and use conference ID #13674822. International callers should dial +1 (412) 317-6671 and enter the same conference ID number. A replay of the webcast also will be available for 90 days following, accessible in the Investor Relations section of First Republic Bank’s website at firstrepublic.com.

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

About First Republic Bank

Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service, with a solid 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 and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; and later in 2018, Jackson, Wyoming. First Republic offers a complete line of banking products for individuals and businesses, including deposit services, as well as residential, commercial and personal loans. 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 from those discussed in the forward-looking statements include, but are not limited to: significant competition to attract and retain banking and wealth management customers, from both traditional and nontraditional financial services and technology companies; our ability to recruit and retain key managers, employees and board members; the possibility of earthquakes, fires and other natural disasters affecting the markets in which we operate; interest rate risk and credit risk; our ability to maintain and follow high underwriting standards; economic and market conditions affecting the valuation of our investment securities portfolio, which could result in other-than-temporary impairment if the general economy deteriorates, credit ratings decline, the financial condition of issuers deteriorates, interest rates increase or the liquidity for securities is limited; real estate prices generally and in our markets; our geographic and product concentrations; demand for our products and services; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; the impact of tax reform legislation; the phase-in of the final capital rules regarding the Basel III framework, changes to the definitions and components of regulatory capital and a new approach for risk-weighted assets; legislative and regulatory actions affecting us and the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, including increased compliance costs, limitations on activities and requirements to hold additional capital; our ability to avoid litigation and its associated costs and liabilities; the impact of new accounting standards; future FDIC special assessments or changes to regular assessments; fraud, cybersecurity and privacy risks; and custom technology preferences of our customers and our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications. For a discussion of these and other risks and uncertainties, see First Republic’s FDIC filings, including, but not limited to, the risk factors in First Republic’s Annual Report on Form 10-K. These filings are available in the Investor Relations section of our website.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed in our Annual Report on Form 10-K and any subsequent reports filed by First Republic with the FDIC. 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)                                                                      2017                                   2016                                                                        2017                                                                         2017                             2016
---------------------------------------------------                                           ----------------------------------                                             ------------------------------                                             -------------------------------                                             ---------------------------------                                             --------------------
Interest income:
   Loans                                                                                            $ 514,700                                                                  $ 418,423                                                                   $ 497,162                                                                   $ 1,903,070                                                                         $  1,573,403
   Investments                                                                                        140,396                                                                    106,994                                                                     132,948                                                                       521,837                                                                              378,719
   Other                                                                                                4,842                                                                      9,819                                                                       3,864                                                                        14,861                                                                               19,266
   Cash and cash equivalents                                                                            2,863                                                   2,358                                                    3,193                                                     11,850                                                             9,485
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
      Total interest income                                                                           662,801                                                 537,594                                                  637,167                                                  2,451,618                                                         1,980,873
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Interest expense:
   Deposits                                                                                            46,120                                                                     21,206                                                                      40,260                                                                       134,786                                                                               73,765
   Borrowings                                                                                          47,820                                                  25,763                                                   45,954                                                    165,369                                                            89,946
                                                                                              --------------  --------------------                                           ----------  --------------------                                           -----------  --------------------                                           -------------  --------------------                                           --------------------
      Total interest expense                                                                           93,940                                                  46,969                                                   86,214                                                    300,155                                                           163,711
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Net interest income                                                                                   568,861                                                                    490,625                                                                     550,953                                                                     2,151,463                                                                            1,817,162
Provision for loan losses                                                                              17,042                                                  10,500                                                   10,113                                                     60,181                                                            47,192
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
Net interest income after provision for loan losses                                                   551,819                                                 480,125                                                  540,840                                                  2,091,282                                                         1,769,970
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Noninterest income:
   Investment management fees                                                                          82,358                                                                     59,855                                                                      70,796                                                                       282,868                                                                              224,626
   Brokerage and investment fees                                                                        9,374                                                                     10,151                                                                       7,843                                                                        32,221                                                                               31,868
   Trust fees                                                                                           3,762                                                                      3,374                                                                       3,246                                                                        13,658                                                                               12,365
   Foreign exchange fee income                                                                          8,198                                                                      6,384                                                                       6,551                                                                        27,691                                                                               22,406
   Deposit fees                                                                                         5,870                                                                      5,341                                                                       5,736                                                                        22,633                                                                               20,699
   Loan and related fees                                                                                3,101                                                                      3,650                                                                       3,270                                                                        13,012                                                                               14,097
   Loan servicing fees, net                                                                             3,932                                                                      3,022                                                                       3,520                                                                        13,800                                                                               13,465
   Gain on sale of loans                                                                                3,065                                                                        818                                                                       1,963                                                                         9,233                                                                                4,828
   Gain (loss) on investment securities, net                                                   --                                                                     (1,363 )                                                                     1,204                                                                          (833 )                                                                              1,055
   Income from investments in life insurance                                                            9,836                                                                     17,515                                                                       8,865                                                                        37,874                                                                               48,119
   Other income                                                                                           801                                                      87                                                    6,339                                                      8,304                                                             1,284
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
      Total noninterest income                                                                        130,297                                                 108,834                                                  119,333                                                    460,461                                                           394,812
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Noninterest expense:
   Salaries and employee benefits                                                                     250,076                                                                    201,087                                                                     236,996                                                                       930,908                                                                              763,625
   Information systems                                                                                 58,139                                                                     43,083                                                                      53,663                                                                       208,625                                                                              153,207
   Occupancy                                                                                           35,620                                                                     32,277                                                                      34,129                                                                       136,746                                                                              119,139
   Professional fees                                                                                   15,976                                                                     14,798                                                                      17,573                                                                        56,950                                                                               52,740
   FDIC assessments                                                                                    14,844                                                                     13,000                                                                      14,197                                                                        55,792                                                                               44,200
   Advertising and marketing                                                                           17,173                                                                     10,167                                                                      10,639                                                                        48,398                                                                               32,783
   Amortization of intangibles                                                                          4,746                                                                      5,839                                                                       5,019                                                                        20,625                                                                               25,002
   Other expenses                                                                                      48,969                                                  39,923                                                   46,143                                                    181,497                                                           146,490
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
      Total noninterest expense                                                                       445,543                                                 360,174                                                  418,359                                                  1,639,541                                                         1,337,186
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                   
Income before provision for income taxes                                                              236,573                                                                    228,785                                                                     241,814                                                                       912,202                                                                              827,596
Provision for income taxes                                                                             42,296                                                  49,667                                                   41,805                                                    154,542                                                           154,168
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
Net income                                                                                            194,277                                                                    179,118                                                                     200,009                                                                       757,660                                                                              673,428
Dividends on preferred stock                                                                           14,272                                                  17,376                                                   14,272                                                     58,040                                                            68,589
                                                                                              ------------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           ----------------------
Net income available to common shareholders                                                         $ 180,005                                               $ 161,742                                                $ 185,737                                                $   699,620                                                      $    604,839
                                                                                              ======= ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                   
Basic earnings per common share                                                                     $    1.12                                               $    1.06                                                $    1.18                                                $      4.44                                                      $       4.07
                                                                                              ======= ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
Diluted earnings per common share                                                                   $    1.10                                               $    1.03                                                $    1.14                                                $      4.31                                                      $       3.93
                                                                                              ======= ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
Dividends per common share                                                                          $    0.17                                               $    0.16                                                $    0.17                                                $      0.67                                                      $       0.63
                                                                                              ======= ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                   
Weighted average shares--basic                                                            160,371                                                 151,990                                                  157,752                                                    157,624                                                           148,752
                                                                                              ====================================                                           ================================                                           =================================                                           ===================================                                           ======================
Weighted average shares--diluted                                                          164,197                                                 157,217                                                  162,377                                                    162,340                                                           154,095
                                                                                              ====================================                                           ================================                                           =================================                                           ===================================                                           ======================
                                                                                                                                                                                                                                                                                                                                                                                                                   

CONSOLIDATED BALANCE SHEETS

                                                                                  
                                                                                                                                                                                                                            As of
                                                                                                                         -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
($ in thousands)                                                                                                                       December 31,                                September 30,                              December 31,
                                                                                                                                           2017                                                                              2017                                                                             2016
------------------------------------------------------------------------------                                           -------------------------------------                                             -------------------------------------                                             ------------------------------------
ASSETS
------------------------------------------------------------------------------
Cash and cash equivalents                                                                                                      $  2,297,021                                                                      $  2,681,599                                                                     $  2,107,722
Investment securities available-for-sale                                                                                          2,418,088                                                                         2,312,218                                                                        2,007,258
Investment securities held-to-maturity                                                                                           16,157,945                                                                        15,218,615                                                                       13,150,157
                                                                                                                                                                                                                                                                                              
Loans:
   Single family (1-4 units)                                                                                                     31,508,468                                                                        29,799,762                                                                       26,266,866
   Home equity lines of credit                                                                                                    2,735,612                                                                         2,668,604                                                                        2,634,944
   Multifamily (5+ units)                                                                                                         8,640,233                                                                         8,060,467                                                                        6,676,642
   Commercial real estate                                                                                                         6,083,152                                                                         5,879,437                                                                        5,464,870
   Single family construction                                                                                                       591,066                                                                           549,978                                                                          494,616
   Multifamily/commercial construction                                                                                            1,116,855                                                                         1,053,708                                                                          919,541
   Business                                                                                                                       8,295,224                                                                         7,952,335                                                                        6,872,327
   Stock secured                                                                                                                  1,083,553                                                                         1,029,463                                                                          822,908
   Other secured                                                                                                                  1,015,039                                                                           974,933                                                                          723,648
   Unsecured                                                                                                                      1,771,013                                                      1,504,263                                                     1,131,955  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
      Total loans                                                                                                                62,840,215                                                     59,472,950                                                    52,008,317  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
   Allowance for loan losses                                                                                                       (365,932 )                                                                        (347,765 )                                                                       (306,398 )
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
      Loans, net                                                                                                                 62,474,283                                                     59,125,185                                                    51,701,919  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
                                                                                                                                                                                                                                                                                              
Loans held for sale                                                                                                                  87,695                                                                           716,046                                                                          407,226
Investments in life insurance                                                                                                     1,330,652                                                                         1,320,775                                                                        1,273,172
Tax credit investments                                                                                                            1,107,546                                                                         1,126,647                                                                        1,121,416
Prepaid expenses and other assets                                                                                                 1,254,720                                                                         1,183,044                                                                          923,324
Premises, equipment and leasehold improvements, net                                                                                 296,197                                                                           277,809                                                                          207,592
Goodwill                                                                                                                            198,447                                                                           198,447                                                                          203,177
Other intangible assets                                                                                                              91,774                                                                            96,520                                                                          112,399
Mortgage servicing rights                                                                                                            66,139                                                         63,191                                                        62,410  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
         Total Assets                                                                                                          $ 87,780,507                                                   $ 84,320,096                                                  $ 73,277,772  
                                                                                                                         ======= ========== ====================                                           ======= ========== ====================                                           ====== ========== ====================
                                                                                                                                                                                                                                                                                              
LIABILITIES AND EQUITY
------------------------------------------------------------------------------
Liabilities:
Deposits:
   Noninterest-bearing checking                                                                                                $ 26,355,331                                                                      $ 25,122,856                                                                     $ 22,740,303
   Interest-bearing checking                                                                                                     17,324,683                                                                        14,457,910                                                                       14,575,890
   Money market checking                                                                                                          9,251,504                                                                         9,895,827                                                                        7,969,787
   Money market savings and passbooks                                                                                             8,752,396                                                                         8,843,432                                                                        8,203,340
   Certificates of deposit                                                                                                        7,234,794                                                      7,116,298                                                     5,113,061  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
      Total Deposits                                                                                                             68,918,708                                                     65,436,323                                                    58,602,381  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
                                                                                                                                                                                                                                                                                              
Short-term borrowings                                                                                                               100,000                                                                           450,000                                                                          100,000
Long-term FHLB advances                                                                                                           8,300,000                                                                         8,300,000                                                                        5,900,000
Senior notes                                                                                                                        894,723                                                                           894,304                                                                          397,955
Subordinated notes                                                                                                                  777,084                                                                           776,989                                                                          387,380
Debt related to variable interest entities                                                                                   --                                                                    --                                                                           25,973
Other liabilities                                                                                                                   971,691                                                      1,034,534                                                       955,431  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
      Total Liabilities                                                                                                          79,962,206                                                     76,892,150                                                    66,369,120  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
                                                                                                                                                                                                                                                                                              
Shareholders’ Equity:
   Preferred stock                                                                                                                  990,000                                                                           990,000                                                                        1,139,525
   Common stock                                                                                                                       1,617                                                                             1,579                                                                            1,543
   Additional paid-in capital                                                                                                     3,778,913                                                                         3,536,400                                                                        3,301,705
   Retained earnings                                                                                                              3,051,611                                                                         2,899,417                                                                        2,459,540
   Accumulated other comprehensive income (loss)                                                                                     (3,840 )                                                                             550                                                         6,339  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
      Total Shareholders’ Equity                                                                       7,818,301                                                      7,427,946                                                     6,908,652  
                                                                                                                         ---------------------------------------                                           ---------------------------------------                                           --------------------------------------
         Total Liabilities and Shareholders’ Equity                                                 $ 87,780,507                                                   $ 84,320,096                                                  $ 73,277,772  
                                                                                                                         ======= ========== ====================                                           ======= ========== ====================                                           ====== ========== ====================
                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                             Quarter Ended December 31,                                                                                                                                                                                                                                                                                                            Quarter Ended September 30,
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                2017                                                                                                                                                                               2016                                                                                                                                                                                                                 2017
                                                                                                       ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Average Balances, Yields and Rates                                                                                       Average                                   Interest                          Yields/                                                                Average                               Interest                   Yields/                                                            Average                               Interest                        Yields/
                                                                                                                         Balance                                                                          Income/                                                               Rates (2)                                                               Balance                                                                      Income/                                                        Rates (2)                                                           Balance                                                                      Income/                                                             Rates (2)
                                                                                                                                                                                                        Expense (1)                                                                                                                                                                                                                Expense (1)                                                                                                                                                                                                     Expense (1)
------------------------------------------------------------                                           ---------------------------------------                                             ----------------------------------                                             ------------------                                            -----------------------------------                                             ------------------------------                                             ---------                                            -----------------------------------                                             ------------------------------                                             -------------------
($ in thousands)
Assets:
Cash and cash equivalents                                                                                      $    983,289                                                                      $   2,863                                                                          1.16    %                                               $  1,773,312                                                                  $   2,358                                                                 0.53    %                                               $  1,121,328                                                                  $   3,193                                                                      1.13         %
Investment securities                                                                                            18,150,468                                                                        184,827                                                                          4.07    %                                                 14,343,171                                                                    142,284                                                                 3.97    %                                                 17,172,684                                                                    174,515                                                                      4.07         %
Loans                                                                                                            61,163,482                                                                        527,227                                                                          3.41    %                                                 51,107,467                                                                    429,826                                                                 3.33    %                                                 58,965,714                                                                    509,222                                                                      3.41         %
FHLB stock                                                                                                          282,150                                                       4,842                                                       6.81    %                                                    147,697                                                   9,819                                             26.45    %                                                    274,424                                                   3,864                                                   5.59         %
                                                                                                       -----------------------------------------                                           ------------------------------------                                                                                                         -------------------------------------                                           --------------------------------                                                                                                -------------------------------------                                           --------------------------------
                                                                                                                 80,579,389                                                     719,759                                                       3.54    %                                                 67,371,647                                                 584,287                                              3.44    %                                                 77,534,150                                                 690,794                                                   3.53         %
   Total interest-earning assets
                                                                                                       -------------------  --------------------                                           --------------  --------------------                                                                                                         ---------------  --------------------                                           ----------  --------------------                                                                                                ---------------  --------------------                                           ----------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Noninterest-earning cash                                                                                            341,903                                                                                                                                                                                                                      312,323                                                                                                                                                                                                         315,592
Goodwill and other intangibles                                                                                      292,505                                                                                                                                                                                                                      294,699                                                                                                                                                                                                         301,823
Other assets                                                                                                      3,380,998                                                                                                                                                                                                 3,091,686                                                                                                                                                                                    3,280,800  
                                                                                                       -----------------------------------------                                                                                                                                                                                        -------------------------------------                                                                                                                                                                           -------------------------------------
                                                                                                                  4,015,406                                                                                                                                                                                                 3,698,708                                                                                                                                                                                    3,898,215  
   Total noninterest-earning assets
                                                                                                       -------------------  --------------------                                                                                                                                                                                        ---------------  --------------------                                                                                                                                                                           ---------------  --------------------
   Total Assets                                                                                                $ 84,594,795                                                                                                                                                                                              $ 71,070.355                                                                                                                                                                                 $ 81,432,365  
                                                                                                       ========= ========== ====================                                                                                                                                                                                        ===== ========== ====================                                                                                                                                                                           ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Liabilities and Equity:
Checking                                                                                                       $ 40,653,195                                                                          4,672                                                                          0.05    %                                               $ 35,547,235                                                                      1,204                                                                 0.01    %                                               $ 39,109,681                                                                      3,585                                                                      0.04         %
Money market checking and savings                                                                                17,699,117                                                                         17,577                                                                          0.39    %                                                 16,751,447                                                                      5,567                                                                 0.13    %                                                 17,641,318                                                                     16,156                                                                      0.36         %
CDs                                                                                                               7,062,947                                                      23,871                                                       1.34    %                                                  4,911,972                                                  14,435                                              1.17    %                                                  6,327,378                                                  20,519                                                   1.29         %
                                                                                                       -----------------------------------------                                           ------------------------------------                                                                                                         -------------------------------------                                           --------------------------------                                                                                                -------------------------------------                                           --------------------------------
   Total deposits                                                                                                65,415,259                                                      46,120                                                       0.28    %                                                 57,210,654                                                  21,206                                              0.15    %                                                 63,078,377                                                  40,260                                                   0.25         %
                                                                                                       -----------------------------------------                                           ------------------------------------                                                                                                         -------------------------------------                                           --------------------------------                                                                                                -------------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Short-term borrowings                                                                                               471,304                                                                          1,416                                                                          1.19    %                                                    103,261                                                                        467                                                                 1.80    %                                                    653,263                                                                      1,968                                                                      1.20         %
Long-term FHLB advances                                                                                           8,159,783                                                                         31,390                                                                          1.53    %                                                  4,953,261                                                                     18,173                                                                 1.46    %                                                  7,558,696                                                                     28,828                                                                      1.51         %
Senior notes (3)                                                                                                    894,519                                                                          5,919                                                                          2.65    %                                                    397,857                                                                      2,575                                                                 2.59    %                                                    894,086                                                                      5,918                                                                      2.65         %
Subordinated notes (3)                                                                                              777,038                                                                          9,095                                                                          4.68    %                                                    387,356                                                                      4,426                                                                 4.57    %                                                    776,943                                                                      9,094                                                                      4.68         %
Other borrowings                                                                                             --                                              --                                             --    %                                                     26,700                                                     122                                              1.83    %                                                     20,123                                                     146                                                   2.90         %
                                                                                                       -----------------------------------------                                           ------------------------------------                                                                                                         -------------------------------------                                           --------------------------------                                                                                                -------------------------------------                                           --------------------------------
   Total borrowings                                                                                              10,302,644                                                      47,820                                                       1.85    %                                                  5,868,435                                                  25,763                                              1.75    %                                                  9,903,111                                                  45,954                                                   1.85         %
                                                                                                       -----------------------------------------                                           ------------------------------------                                                                                                         -------------------------------------                                           --------------------------------                                                                                                -------------------------------------                                           --------------------------------
                                                                                                                 75,717,903                                                      93,940                                                       0.49    %                                                 63,079,089                                                  46,969                                              0.30    %                                                 72,981,488                                                  86,214                                                   0.47         %
   Total interest-bearing liabilities
                                                                                                       -------------------  --------------------                                           --------------  --------------------                                                                                                         ---------------  --------------------                                           ----------  --------------------                                                                                                ---------------  --------------------                                           ----------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Noninterest-bearing liabilities                                                                                   1,103,473                                                                                                                                                                                                                    1,262,604                                                                                                                                                                                                       1,029,656
Preferred equity                                                                                                    990,000                                                                                                                                                                                                                    1,139,525                                                                                                                                                                                                         990,000
Common equity                                                                                                     6,783,419                                                                                                                                                                                                 5,589,137                                                                                                                                                                                    6,431,221  
                                                                                                       -------------------  --------------------                                                                                                                                                                                        ---------------  --------------------                                                                                                                                                                           ---------------  --------------------
                                                                                                               $ 84,594,795                                                                                                                                                                                              $ 71,070,355                                                                                                                                                                                 $ 81,432,365  
   Total Liabilities and Equity
                                                                                                       ========= ========== ====================                                                                                                                                                                                        ===== ========== ====================                                                                                                                                                                           ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Net interest spread (4)                                                                                                                                                                                                                                                             3.05    %                                                                                                                                                                                                       3.14    %                                                                                                                                                                                                            3.06         %
Net interest income (fully taxable-equivalent basis) and net                                                                                                                                     $ 625,819                                                       3.08    %                                                                                                                             $ 537,318                                              3.16    %                                                                                                                             $ 604,580                                                   3.09         %
interest margin (5)
                                                                                                                                                                                           ======= ======= ====================                                                                                                                                                                                         === ======= ====================                                                                                                                                                                                === ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Reconciliation of tax-equivalent net interest income to
reported net interest income:
 
Tax-equivalent adjustment                                                                                                                                                                          (56,958 )                                                                                                                                                                                                                (46,693 )                                                                                                                                                                                                       (53,627 )
                                                                                                                                                                                           ------------------------------------                                                                                                                                                                                         --------------------------------                                                                                                                                                                                --------------------------------
Net interest income, as reported                                                                                                                                                                 $ 568,861                                                                                                                                                                                             $ 490,625                                                                                                                                                                                    $ 550,953  
                                                                                                                                                                                           ======= ======= ====================                                                                                                                                                                                         === ======= ====================                                                                                                                                                                                === ======= ====================
__________
(1) Interest income is presented on a fully
taxable-equivalent basis.
(2) Yields/rates are annualized.
(3) Average balances include unamortized issuance
discounts and costs. Interest expense includes amortization of
issuance discounts and costs.
(4) Net interest spread represents the average yield on
interest-earning assets less the average rate on interest-bearing
liabilities.
(5) Net interest margin represents net interest income on
a fully taxable-equivalent basis divided by total average
interest-earning assets.
 
                                                                
                                                                                                                                                                                                                                                                                              Year Ended December 31,
                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                        2017                                                                                                                                                                             2016
                                                                                                       -----------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Average Balances, Yields and Rates                                                                                     Average                                 Interest                   Yields/                                                           Average                                 Interest                         Yields/
                                                                                                                       Balance                                                                        Income/                                                          Rates                                                            Balance                                                                        Income/                                                                Rates
                                                                                                                                                                                                    Expense (1)                                                                                                                                                                                                      Expense (1)
------------------------------------------------------------                                           -----------------------------------                                             ---------------------------------                                             -------                                            -----------------------------------                                             ---------------------------------                                             -------------------
($ in thousands)
Assets:
Cash and cash equivalents                                                                                  $  1,217,293                                                                   $    11,850                                                                0.97   %                                               $  1,913,466                                                                   $     9,485                                                                      0.50         %
Investment securities                                                                                        16,828,290                                                                       686,701                                                                4.08   %                                                 12,172,626                                                                       506,608                                                                      4.16         %
Loans                                                                                                        57,269,820                                                                     1,950,504                                                                3.41   %                                                 47,912,320                                                                     1,617,938                                                                      3.38         %
FHLB stock                                                                                                      235,259                                                     14,861                                             6.32   %                                                    154,036                                                     19,266                                                  12.51         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
   Total interest-earning assets                                                                             75,550,662                                                  2,663,916                                             3.53   %                                                 62,152,448                                                  2,153,297                                                   3.46         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Noninterest-earning cash                                                                                        324,696                                                                                                                                                                                                          283,292
Goodwill and other intangibles                                                                                  303,498                                                                                                                                                                                                          298,014
Other assets                                                                                                  3,272,772                                                                                                                                                                                     3,001,916  
                                                                                                       -------------------------------------                                                                                                                                                                            -------------------------------------
   Total noninterest-earning assets                                                                           3,900,966                                                                                                                                                                                     3,583,222  
                                                                                                       -------------------------------------                                                                                                                                                                            -------------------------------------
   Total Assets                                                                                            $ 79,451,628                                                                                                                                                                                  $ 65,735,670  
                                                                                                       ===== ========== ====================                                                                                                                                                                            ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Liabilities and Equity:
Checking                                                                                                   $ 38,792,204                                                                        10,818                                                                0.03   %                                               $ 33,150,987                                                                         3,703                                                                      0.01         %
Money market checking and savings                                                                            16,999,755                                                                        45,852                                                                0.27   %                                                 14,979,993                                                                        15,305                                                                      0.10         %
CDs                                                                                                           6,133,143                                                     78,116                                             1.27   %                                                  4,642,625                                                     54,757                                                   1.18         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
   Total deposits                                                                                            61,925,102                                                    134,786                                             0.22   %                                                 52,773,605                                                     73,765                                                   0.14         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Short-term borrowings                                                                                           670,919                                                                         7,601                                                                1.13   %                                                    499,253                                                                         3,311                                                                      0.66         %
Long-term FHLB advances                                                                                       7,019,452                                                                       105,272                                                                1.50   %                                                  4,459,836                                                                        68,487                                                                      1.54         %
Senior notes (2)                                                                                                682,216                                                                        17,883                                                                2.62   %                                                    397,559                                                                        10,295                                                                      2.59         %
Subordinated notes (2)                                                                                          731,018                                                                        34,197                                                                4.68   %                                                    161,920                                                                         7,377                                                                      4.56         %
Other borrowings                                                                                                 17,722                                                        416                                             2.35   %                                                     28,076                                                        476                                                   1.69         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
   Total borrowings                                                                                           9,121,327                                                    165,369                                             1.81   %                                                  5,546,644                                                     89,946                                                   1.62         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
   Total interest-bearing liabilities                                                                        71,046,429                                                    300,155                                             0.42   %                                                 58,320,249                                                    163,711                                                   0.28         %
                                                                                                       -------------------------------------                                           -----------------------------------                                                                                              -------------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Noninterest-bearing liabilities                                                                               1,052,700                                                                                                                                                                                                        1,109,027
Preferred equity                                                                                                987,633                                                                                                                                                                                                        1,123,132
Common equity                                                                                                 6,364,866                                                                                                                                                                                     5,183,262  
                                                                                                       -------------------------------------                                                                                                                                                                            -------------------------------------
   Total Liabilities and Equity                                                                            $ 79,451,628                                                                                                                                                                                  $ 65,735,670  
                                                                                                       ===== ========== ====================                                                                                                                                                                            ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Net interest spread (3)                                                                                                                                                                                                                                              3.11   %                                                                                                                                                                                                               3.18         %
Net interest income (fully taxable-equivalent basis) and net                                                                                                                              $ 2,363,761                                             3.13   %                                                                                                                              $ 1,989,586                                                   3.20         %
interest margin (4)
 
                                                                                                                                                                                       ==== ========= ====================                                                                                                                                                                              ==== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Reconciliation of tax-equivalent net interest income to
reported net interest income:
 
Tax-equivalent adjustment                                                                                                                                                                    (212,298 )                                                                                                                                                                                                       (172,424 )
                                                                                                                                                                                       -----------------------------------                                                                                                                                                                              -----------------------------------
Net interest income, as reported                                                                                                                                                          $ 2,151,463                                                                                                                                                                                   $ 1,817,162  
                                                                                                                                                                                       ==== ========= ====================                                                                                                                                                                              ==== ========= ====================
__________
(1) Interest income is presented on a fully
taxable-equivalent basis.
(2) Average balances include unamortized issuance
discounts and costs. Interest expense includes amortization of
issuance discounts and costs.
(3) Net interest spread represents the average yield on
interest-earning assets less the average rate on interest-bearing
liabilities.
(4) Net interest margin represents net interest income on
a fully taxable-equivalent basis divided by total average
interest-earning assets.
 
                                                                                                       Quarter Ended                               Quarter Ended                                    Year Ended
                                                                                                                                             December 31,                                                                      September 30,                                                                         December 31,
                                                                                                                   ---------------------------------------------------------                                                  ------------                                             -----------------------------------------------------------------
Operating Information                                                                                                  2017            2016                                                  2017                                                   2017               2016
------------------------------------------------------------------------                                           ----------                                             -------                                             ------------                                             -------                                             ------------------
($ in thousands)
Net income to average assets (1)                                                                                        0.91 %                                              1.00 %                                                 0.97 %                                                0.95 %                                                     1.02 %
Net income available to common shareholders to average common equity (1)                                               10.53 %                                             11.51 %                                                11.46 %                                               10.99 %                                                    11.67 %
Net income available to common shareholders to average tangible                                                        11.00 %                                             12.15 %                                                12.02 %                                               11.54 %                                                    12.38 %
common equity (1)
Net interest income to average interest-earning assets (1)                                                              2.80 %                                              2.90  %                                                2.82 %                                                2.85  %                                                    2.92 %
Dividend payout ratio                                                                                                   15.5 %                                              15.6 %                                                 14.9 %                                                15.5 %                                                     16.1 %
Efficiency ratio (2)                                                                                                    63.7 %                                              60.1 %                                                 62.4 %                                                62.8 %                                                     60.5 %
                                                                                                                                                                                                                                                                                                                                            
Net loan charge-offs (recoveries)                                                                                   $ (1,125 )                                             $ 207                                                 $  655                                                 $ 647                                                   $  1,852
Net loan charge-offs (recoveries) to average total loans (1)                                                           (0.01 %)                                             0.00  %                                                0.00 %                                                0.00 %                                                     0.00 %
                                                                                                                                                                                                                                                                                                                                            
Allowance for loan losses to:
   Total loans                                                                                                          0.58 %                                              0.59  %                                                0.58 %                                                0.58  %                                                    0.59 %
   Nonaccrual loans                                                                                                    971.8 %                                             625.0  %                                               917.1 %                                               971.8  %                                                   625.0 %
__________
(1) For periods less than a year, ratios are annualized.
(2) Efficiency ratio is the ratio of noninterest expense
to the sum of net interest income and noninterest income.
                                                                                                                                                                            
                                                                                                                                          Quarter Ended                                                                             Quarter Ended                                                                              Year Ended
                                                                                                                                          December 31,                                                                              September 30,                                                                             December 31,
                                                                                                            -------------------------------------------------------------------                                                --------------------                                            --------------------------------------------------------------------
Effective Tax Rate                                                                                             2017                2016                                                           2017                                                      2017                2016
-----------------------------------------------------------------                                           -----------                                          --------------------                                          ----------------------                                          -----------                                          ---------------------
Effective tax rate, prior to excess tax benefits and deferred tax                                            22.4 %                                                        24.4 %                                                        23.1 %                                                 22.9 %                                                        23.9 %
assets valuation adjustment
                                                                                                                                                                                                                                                                                                                                                     
Excess tax benefits--stock options                                                              (21.1 )%                                                       (2.3 )%                                                       (3.9 )%                                                (8.3 )%                                                       (4.2 )%
Excess tax benefits--other stock awards                                                          (0.2 )%                                                       (0.4 )%                                                       (1.9 )%                                                (2.1 )%                                                       (1.1 )%
                                                                                                            ----- ----                                           -------------- ----                                           -------------- ------                                           ----- ----                                           -------------- -----
   Total excess tax benefits                                                                                (21.3 )%                                                       (2.7 )%                                                       (5.8 )%                                               (10.4 )%                                                       (5.3 )%
                                                                                                            ----- ----                                           -------------- ----                                           -------------- ------                                           ----- ----                                           -------------- -----
                                                                                                                                                                                                                                                                                                                                                     
Deferred tax assets valuation adjustment (1)                                                                 16.8 %                                              -- %                                              -- %                                                  4.4 %                                              -- %
                                                                                                            ----- ----                                           -------------- ----                                           -------------- ------                                           ----- ----                                           -------------- -----
Effective tax rate                                                                                           17.9 %                                                        21.7 %                                                        17.3 %                                                 16.9 %                                                        18.6 %
                                                                                                            ===== ====                                           ============== ====                                           ============== ======                                           ===== ====                                           ============== =====
                                                                                                                                                                                                                                                                                                                                                     
(1) For the quarter and year ended December 31, 2017, as
a result of the Tax Reform Act, the Bank recorded a one-time
revaluation adjustment of $39.7 million to reduce its deferred tax
assets, which increased the provision for income taxes. See "Income
Taxes" for additional information.
 
                                                                                                                                                                                               
                                                                                                                                Quarter Ended                                                                                                    Quarter Ended                                                                                                         Year Ended
                                                                                                                                December 31,                                                                                                     September 30,                                                                                                        December 31,
                                                                                ----------------------------------------------------------------------------------------------------                                                  -------------------------------                                             ------------------------------------------------------------------------------------------------------------
Mortgage Loan Sales                                                                           2017                                 2016                                                                        2017                                                                         2017                                     2016
-------------------------------------                                           ------------------------------                                             ------------------------------                                             -------------------------------                                             ---------------------------------                                             -----------------------------------
($ in thousands)
Loans sold:
   Flow sales:
      Agency                                                                      $  20,967                                                                  $ 180,188                                                                   $  26,152                                                                   $   131,111                                                                     $   434,094
      Non-agency                                                                     91,916                                                 133,015                                                   88,534                                                    309,482                                                      323,454  
                                                                                --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           -------------------------------------
         Total flow sales                                                           112,883                                                                    313,203                                                                     114,686                                                                       440,593                                                                         757,548
                                                                                                                                                                                                                                                                                                                                                                                                 
   Bulk sales:
      Non-agency                                                                    856,359                                                 487,804                                                  707,669                                                  2,436,584                                                    2,389,879  
                                                                                --------------------------------                                           --------------------------------                                           ---------------------------------                                           -----------------------------------                                           -------------------------------------
         Total loans sold                                                         $ 969,242                                               $ 801,007                                                $ 822,355                                                $ 2,877,177                                                  $ 3,147,427  
                                                                                === ======= ====================                                           === ======= ====================                                           ==== ======= ====================                                           ==== ========= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                 
Gain on sale of loans:
   Amount                                                                         $   3,065                                                                  $     818                                                                   $   1,963                                                                   $     9,233                                                                     $     4,828
   Gain as a percentage of loans sold                                                  0.32                    %                                                  0.10                    %                                                   0.24                    %                                                     0.32                    %                                                       0.15                    %
                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                             
                                                                                                                         Quarter Ended                                                                                                        Quarter Ended                                                                                                    Year Ended
                                                                                                                         December 31,                                                                                                         September 30,                                                                                                   December 31,
                                                                      ----------------------------------------------------------------------------------------------------------                                                  ---------------------------------                                             --------------------------------------------------------------------------------------------------
Loan Originations                                                                     2017                                    2016                                                                          2017                                                                          2017                                2016
---------------------------                                           ------------------------------------                                          ------------------------------------                                          ------------------------------------                                          -------------------------------------                                          --------------------------
($ in thousands)
Single family (1-4 units)                                                $ 3,011,145                                                                   $ 3,064,315                                                                   $ 2,987,278                                                                   $ 11,568,111                                                                   $           10,615,621
Home equity lines of credit                                                  433,733                                                                       452,445                                                                       459,709                                                                      1,731,988                                                                                1,815,252
Multifamily (5+ units)                                                       842,329                                                                       742,991                                                                       805,429                                                                      2,703,242                                                                                2,542,551
Commercial real estate                                                       334,557                                                                       446,677                                                                       197,596                                                                      1,263,776                                                                                1,354,527
Construction                                                                 331,501                                                                       480,480                                                                       413,842                                                                      1,480,957                                                                                1,342,404
Business                                                                   1,766,978                                                                     2,137,549                                                                     1,879,393                                                                      6,252,983                                                                                5,572,410
Stock and other secured                                                      332,245                                                                       328,105                                                                       320,952                                                                      1,587,393                                                                                1,401,559
Unsecured                                                                    397,325                                                    281,740                                                    179,686                                                   1,044,769                                                             1,076,550
                                                                      -----------------------------------                                           -----------------------------------                                           -----------------------------------                                           ------------------------------------                                           --------------------------
   Total loans originated                                                $ 7,449,813                                                $ 7,934,302                                                $ 7,243,885                                                $ 27,633,219                                                $           25,720,874
                                                                      ==== ========= ====================                                           ==== ========= ====================                                           ==== ========= ====================                                           ==== ========== ====================                                           ==== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
                                
                                                                                                                                                                                                                                       As of
                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Loan Servicing Portfolio                                                         December 31,                         September 30,                         June 30,                            March 31,                       December 31,
                                                                                     2017                                                                       2017                                                                      2017                                                                      2017                                                                    2016
----------------------------                                           ------------------------------                                             ------------------------------                                             ----------------------------                                             -----------------------------                                             --------------------------
($ in millions)
Loans serviced for investors                                              $ 12,495                                                $ 12,111                                              $ 11,791                                               $ 11,838                                                  $               11,655
                                                                       ==== ====== ====================                                           ==== ====== ====================                                           == ====== ====================                                           === ====== ====================                                           ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                        
                                           
                                                                                                                                                                                                                                                                               As of
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Asset Quality Information                                                                         December 31,                                    September 30,                                  June 30,                                      March 31,                                     December 31,
                                                                                                      2017                                                                                  2017                                                                               2017                                                                                2017                                                                                  2016
---------------------------------------                                           -----------------------------------------                                             -----------------------------------------                                             ------------------------------------                                             -----------------------------------------                                             -----------------------------------------
($ in thousands)
Nonperforming assets:
   Nonaccrual loans                                                                     $         37,656                                                                      $         37,922                                                                 $         43,384                                                                      $         51,694                                                                      $         49,020
   Other real estate owned                                                                --                                                     --                                                         1,930                                                     --                                                     --  
                                                                                  -------------------------------------------                                           -------------------------------------------                                           --------------------------------------                                           -------------------------------------------                                           -------------------------------------------
      Total nonperforming assets                                                        $         37,656                                                   $         37,922                                              $         45,314                                                   $         51,694                                                   $         49,020  
                                                                                  ======= ============== ====================                                           ======= ============== ====================                                           == ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                      
Nonperforming assets to total assets                                                                0.04                    %                                                             0.04                    %                                                        0.06                    %                                                             0.07                    %                                                             0.07                    %
                                                                                                                                                                                                                                                                                                                                                                                                                                      
Accruing loans 90 days or more past due                                                 $ --                                                                      $ --                                                                 $ --                                                                      $ --                                                                      $ --
                                                                                                                                                                                                                                                                                                                                                                                                                                      
Restructured accruing loans                                                             $         12,605                                                                      $         18,242                                                                 $         13,001                                                                      $         14,224                                                                      $         14,278
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                
                                                                                                                                                                                                                                                      As of
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Book Value Ratios                                                                                December 31,                        September 30,                        June 30,                           March 31,                       December 31,
                                                                                                     2017                                                                      2017                                                                     2017                                                                     2017                                                                    2016
--------------------------------------------                                           -----------------------------                                             -----------------------------                                             ----------------------------                                             ----------------------------                                             --------------------------
(in thousands, except per share amounts)
Number of shares of common stock outstanding                                              161,696                                                157,930                                               157,686                                               157,122                                                                 154,292
                                                                                       ===============================                                           ===============================                                           ==============================                                           ==============================                                           ============================
Book value per common share                                                               $ 42.23                                                $ 40.76                                               $ 39.76                                               $ 39.13                                                  $                37.39
                                                                                       ==== ===== ====================                                           ==== ===== ====================                                           === ===== ====================                                           === ===== ====================                                           ====== ====================
Tangible book value per common share                                                      $ 40.43                                                $ 38.90                                               $ 37.83                                               $ 37.16                                                  $                35.35
                                                                                       ==== ===== ====================                                           ==== ===== ====================                                           === ===== ====================                                           === ===== ====================                                           ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                     
                                                            
                                                                                                                                                                                                                                                                  As of
                                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                   2017                                                                                                                                            2016
                                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------
                                                                                                                                    December 31 (1)                                        September 30              June 30             March 31                                                   December 31
                                                                                                   --------------------------------------------------------------------------------                                          ---------------------                                          -----------------                                          -----------------                                          -------------------
Capital Ratios                                                                                          Actual                  Fully                                                                                                                                                   Actual
                                                                                                                                                                  Phased-in (2)
--------------------------------------------------------                                           --------------                                             ------------------                                             --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Tier 1 leverage ratio (Tier 1 capital to average assets)                                                    8.85  %                                                      8.83    %                                                      8.78    %                                                    8.99  %                                                    9.22  %                                                     9.37   %
Common Equity Tier 1 capital to risk-weighted assets                                                       10.63  %                                                     10.57    %                                                     10.58    %                                                   10.72  %                                                   11.15  %                                                    10.83   %
Tier 1 capital to risk-weighted assets                                                                     12.22  %                                                     12.19    %                                                     12.27    %                                                   12.49  %                                                   12.94  %                                                    13.07   %
Total capital to risk-weighted assets                                                                      14.11  %                                                     14.09    %                                                     14.23    %                                                   14.51  %                                                   15.04  %                                                    14.46   %
Regulatory Capital (3)
--------------------------------------------------------
($ in thousands)
Common Equity Tier 1 capital                                                                        $  6,488,618                                                 $  6,449,589                                                   $  6,140,330                                                 $  5,975,457                                               $  5,852,885                                                $  5,496,582
Tier 1 capital                                                                                      $  7,457,944                                                 $  7,439,589                                                   $  7,121,330                                                 $  6,960,057                                               $  6,788,885                                                $  6,631,383
Total capital                                                                                       $  8,615,389                                                 $  8,597,034                                                   $  8,259,581                                                 $  8,087,714                                               $  7,892,528                                                $  7,337,725
Assets (3)
--------------------------------------------------------
($ in thousands)
Average assets                                                                                      $ 84,238,404                                                 $ 84,220,049                                                   $ 81,125,539                                                 $ 77,419,255                                               $ 73,624,461                                                $ 70,779,188
Risk-weighted assets                                                                                $ 61,054,083                                                 $ 61,035,729                                                   $ 58,027,938                                                 $ 55,730,798                                               $ 52,476,984                                                $ 50,744,017
__________
(1) Ratios and amounts as of December 31, 2017 are
preliminary.
(2) 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, 2017.
(3) As defined by regulatory capital rules.
 
                                           
                                                                                                                                                                                                                                                          As of
                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Wealth Management Assets                                                                     December 31,                          September 30,                          June 30,                      March 31,                     December 31,
                                                                                                 2017                                                                        2017                                                                       2017                                                                          2017                                                                           2016
---------------------------------------                                           -------------------------------                                             -------------------------------                                             -----------------------------                                             --------------------------------------                                             ------------------------------
($ in millions)
First Republic Investment Management                                                 $  52,712                                                                   $  50,318                                                                  $ 47,530                                                                        $    44,573                                                                         $               41,154
                                                                                                                                                                                                                                                                                                                                                                                                        
Brokerage and investment:
   Brokerage                                                                            43,015                                                                      40,652                                                                    37,658                                                                             35,397                                                                                         32,218
   Money market mutual funds                                                             1,671                                                    1,201                                                  1,402                                                           1,795                                                                       2,048
                                                                                  ---------------------------------                                           ---------------------------------                                           -------------------------------                                           ----------------------------------------                                           --------------------------------
      Total brokerage and investment                                                    44,686                                                   41,853                                                 39,060                                                          37,192                                                                      34,266
                                                                                  ---------------------------------                                           ---------------------------------                                           -------------------------------                                           ----------------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                        
Trust Company:
   Trust                                                                                 4,678                                                                       4,441                                                                     4,276                                                                              3,929                                                                                          3,754
   Custody                                                                               4,885                                                    4,734                                                  4,559                                                           4,438                                                                       4,406
                                                                                  ---------------------------------                                           ---------------------------------                                           -------------------------------                                           ----------------------------------------                                           --------------------------------
      Total Trust Company                                                                9,563                                                    9,175                                                  8,835                                                           8,367                                                                       8,160
                                                                                  ---------------------------------                                           ---------------------------------                                           -------------------------------                                           ----------------------------------------                                           --------------------------------
         Total Wealth Management Assets                                              $ 106,961                                                $ 101,346                                               $ 95,425                                                     $    90,132                                                      $               83,580
                                                                                  ==== ======= ====================                                           ==== ======= ====================                                           === ====== ====================                                           ========= ========= ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                   

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180116005722r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180116005722/en/

SOURCE: First Republic Bank

Investors: 
Addo Investor Relations 
Andrew Greenebaum, 310-829-5400 
agreenebaum@addoir.com 
or 
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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