First Republic Reports First Quarter 2022 Results
First Republic Bank (NYSE: FRC) reported strong financial results for Q1 2022, with revenues increasing 23% year-over-year to $1.4 billion. The bank achieved net income of $401 million, up 19.9%, and a diluted EPS of $2.00, reflecting an 11.7% rise. Loan originations reached a record $17.8 billion, while deposits grew 26.7% to $162.1 billion. The tangible book value per share rose 14% to $68.47. Additionally, the quarterly dividend increased to $0.27 per share, marking the 11th consecutive year of dividend growth.
- Revenues up 23% year-over-year to $1.4 billion.
- Net income increased by 19.9% to $401 million.
- Diluted EPS rose 11.7%, reaching $2.00.
- Loan originations hit a record $17.8 billion.
- Deposits increased by 26.7%, totaling $162.1 billion.
- Tangible book value per share increased 14% to $68.47.
- Quarterly dividend raised to $0.27, the 11th consecutive increase.
- Noninterest expense rose 20.2% to $866 million due to expansion investments.
Revenues Increased
Tangible Book Value Per Share Rose
Dividend Raised for 11th Consecutive Year
“The entire business continued to perform very well in the first quarter,” said
Quarterly Highlights
Financial Results
– Year-over-year:
– Revenues were
– Net interest income was
– Net income was
– Diluted earnings per share of
– Tangible book value per share was
– Loan originations totaled
– Net interest margin was
– Efficiency ratio was
– Increased quarterly dividend to
– Tier 1 leverage ratio was
– Nonperforming assets remained at a low 8 basis points of total assets.
– Credit quality remained strong, with net recoveries of
Continued Business Growth
– Year-over-year:
– Loans totaled
– Deposits were
– Wealth management assets were
– Wealth management revenues were
“Loans and deposits grew nicely during the first quarter, while credit quality, liquidity and capital all remained very strong,” said
Quarterly Cash Dividend of
The Bank announced an increase of
Strong Asset Quality
Credit quality remains strong. Nonperforming assets were at a low 8 basis points of total assets at
During the first quarter, the Bank recorded a provision for credit losses of
Continued Book Value Growth
Book value per common share at
Capital Strength
The Bank’s Tier 1 leverage ratio was
Since the beginning of 2021, the Bank has raised
Continued Business Growth
Loan Originations
Loan originations were
Single family loan originations were
Loans totaled
Deposit Growth
Total deposits increased to
At
Investments
Total investment securities at
High-quality liquid assets, including eligible cash, totaled
Wealth Management
Total wealth management assets were
Wealth management revenues totaled
Wealth management assets at
Income Statement and Key Ratios
Revenue Growth
Total revenues were
Net Interest Income Growth
Net interest income was
Net Interest Margin
The net interest margin was
Noninterest Income
Noninterest income was
Noninterest Expense and Efficiency Ratio
Noninterest expense was
The efficiency ratio was
Income Taxes
The Bank’s effective tax rate for the first quarter of 2022 was
Conference Call Details
First Republic Bank’s first quarter 2022 earnings conference call is scheduled for
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 ir.firstrepublic.com/events-calendar. To listen to the live webcast, please visit the site at least 15 minutes prior to the start time to register, download and install any necessary audio software.
For those unable to join for the live presentation, a replay of the call will be available beginning
The Bank’s press releases are available after release in the Newsroom and Investor Relations section of First Republic Bank’s website at firstrepublic.com.
About
Founded in 1985,
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimates,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them.
Forward-looking statements involving such risks and uncertainties include, but are not limited to, statements regarding: projections of loans, assets, deposits, liabilities, revenues, expenses, tax liabilities, net income, capital expenditures, liquidity, dividends, capital structure, investments or other financial items; expectations regarding the banking and wealth management industries; descriptions of plans or objectives of management for future operations, products or services; forecasts of future economic conditions generally and in our market areas in particular, which may affect the ability of borrowers to repay their loans and the value of real property or other property held as collateral for such loans; our opportunities for growth and our plans for expansion (including opening new offices); expectations about the performance of any new offices; projections about the amount and the value of intangible assets, as well as amortization of recorded amounts; future provisions for credit losses on loans and debt securities, as well as for unfunded loan commitments; changes in nonperforming assets; expectations regarding the impact and duration of COVID-19; expectations regarding our executive transitions; projections about future levels of loan originations or loan repayments; projections regarding costs, including the impact on our efficiency ratio; and descriptions of assumptions underlying or relating to any of the foregoing.
Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: significant competition to attract and retain banking and wealth management customers, from both traditional and non-traditional financial services and technology companies; our ability to recruit and retain key managers, employees and board members; natural or other disasters, including earthquakes, wildfires, pandemics or acts of terrorism affecting the markets in which we operate; the adverse effects of climate change on our business, clients and counterparties; the negative impacts and disruptions resulting from COVID-19 on our colleagues and clients, the communities we serve and the domestic and global economy, which may have an adverse effect on our business, financial position and results of operations; interest rate risk and credit risk; our ability to maintain and follow high underwriting standards; economic and market conditions, including those affecting the valuation of our investment securities portfolio and credit losses on our loans and debt securities; real estate prices generally and in our markets; our geographic and product concentrations; demand for our products and services; developments and uncertainty related to the future use and availability of some reference rates; the regulatory environment in which we operate, our regulatory compliance and future regulatory requirements; any future changes to regulatory capital requirements; legislative and regulatory actions affecting us and the financial services industry, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), including increased compliance costs, limitations on activities and requirements to hold additional capital, as well as changes to the Dodd-Frank Act pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act; our ability to avoid litigation and its associated costs and liabilities; future
All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout our public filings under the Exchange Act. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
Non-GAAP Financial Measures
Our management uses and believes that investors benefit from using certain non-GAAP measures of our financial performance, which include tangible book value per common share, return on average tangible common shareholders’ equity, and net interest income on a fully taxable-equivalent basis. Management believes that tangible book value per common share and return on average tangible common shareholders’ equity are useful additional measures to evaluate our performance and capital position without the impact of goodwill and other intangible assets and preferred stock. In addition, to facilitate relevant comparisons of net interest income from taxable and tax-exempt interest-earning assets, when calculating yields and net interest margin, we adjust interest income on tax-exempt securities and tax-advantaged loans so such amounts are fully equivalent to interest income on taxable sources. We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information that is not otherwise required by GAAP or other applicable requirements. These non-GAAP financial measures should be considered in addition to, not as a substitute for, financial measures prepared in accordance with GAAP. A reconciliation of the non-GAAP calculation of the financial measure to the most comparable GAAP financial measure is presented in relevant tables in this document.
Explanatory Note
Some amounts presented within this document may not recalculate due to rounding.
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
|
|
Quarter Ended
|
|
Quarter Ended
|
||||
(in millions, except per share amounts) |
|
2022 |
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
||
Interest income: |
|
|
|
|
|
|
||
Loans |
|
|
|
|
|
|
|
|
Investments |
|
180 |
|
141 |
|
|
165 |
|
Other |
|
2 |
|
5 |
|
|
4 |
|
Cash and cash equivalents |
|
5 |
|
3 |
|
|
6 |
|
Total interest income |
|
1,189 |
|
1,022 |
|
|
1,167 |
|
|
|
|
|
|
|
|
||
Interest expense: |
|
|
|
|
|
|
||
Deposits |
|
20 |
|
28 |
|
|
20 |
|
Borrowings |
|
24 |
|
55 |
|
|
27 |
|
Total interest expense |
|
44 |
|
83 |
|
|
47 |
|
|
|
|
|
|
|
|
||
Net interest income |
|
1,145 |
|
939 |
|
|
1,120 |
|
Provision (reversal of provision) for credit losses |
|
10 |
|
(15 |
) |
|
24 |
|
Net interest income after provision (reversal of provision) for credit losses |
|
1,135 |
|
954 |
|
|
1,096 |
|
|
|
|
|
|
|
|
||
Noninterest income: |
|
|
|
|
|
|
||
Investment management fees |
|
165 |
|
119 |
|
|
150 |
|
Brokerage and investment fees |
|
22 |
|
15 |
|
|
19 |
|
Insurance fees |
|
4 |
|
3 |
|
|
7 |
|
Trust fees |
|
7 |
|
6 |
|
|
7 |
|
Foreign exchange fee income |
|
23 |
|
17 |
|
|
24 |
|
Deposit fees |
|
6 |
|
6 |
|
|
7 |
|
Loan and related fees |
|
9 |
|
7 |
|
|
9 |
|
Income from investments in life insurance |
|
14 |
|
17 |
|
|
27 |
|
Other income, net |
|
1 |
|
6 |
|
|
(3 |
) |
Total noninterest income |
|
251 |
|
196 |
|
|
247 |
|
|
|
|
|
|
|
|
||
Noninterest expense: |
|
|
|
|
|
|
||
Salaries and employee benefits |
|
560 |
|
463 |
|
|
544 |
|
Information systems |
|
107 |
|
84 |
|
|
99 |
|
Occupancy |
|
69 |
|
58 |
|
|
66 |
|
Professional fees |
|
23 |
|
21 |
|
|
27 |
|
Advertising and marketing |
|
13 |
|
13 |
|
|
21 |
|
|
|
15 |
|
12 |
|
|
13 |
|
Other expenses |
|
79 |
|
70 |
|
|
96 |
|
Total noninterest expense |
|
866 |
|
721 |
|
|
866 |
|
|
|
|
|
|
|
|
||
Income before provision for income taxes |
|
520 |
|
429 |
|
|
477 |
|
Provision for income taxes |
|
119 |
|
94 |
|
|
77 |
|
Net income |
|
401 |
|
335 |
|
|
400 |
|
Dividends on preferred stock |
|
37 |
|
19 |
|
|
32 |
|
Net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic earnings per common share |
|
|
|
|
|
|
|
|
Diluted earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares—basic |
|
180 |
|
175 |
|
|
179 |
|
Weighted average shares—diluted |
|
182 |
|
177 |
|
|
182 |
|
CONSOLIDATED BALANCE SHEETS |
|||||||||
|
|
As of |
|||||||
($ in millions) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Debt securities available-for-sale |
|
3,446 |
|
|
3,381 |
|
|
2,429 |
|
Debt securities held-to-maturity, net |
|
26,831 |
|
|
22,292 |
|
|
19,232 |
|
Equity securities (fair value) |
|
25 |
|
|
28 |
|
|
21 |
|
|
|
|
|
|
|
|
|||
Loans: |
|
|
|
|
|
|
|||
Single family |
|
81,833 |
|
|
76,793 |
|
|
65,179 |
|
Home equity lines of credit |
|
2,597 |
|
|
2,584 |
|
|
2,392 |
|
Single family construction |
|
1,041 |
|
|
993 |
|
|
842 |
|
Multifamily |
|
16,953 |
|
|
15,966 |
|
|
14,141 |
|
Commercial real estate |
|
8,753 |
|
|
8,531 |
|
|
8,065 |
|
Multifamily/commercial construction |
|
1,955 |
|
|
1,927 |
|
|
2,101 |
|
Capital call lines of credit |
|
10,970 |
|
|
10,999 |
|
|
8,654 |
|
Tax-exempt |
|
3,656 |
|
|
3,680 |
|
|
3,455 |
|
Other business |
|
4,081 |
|
|
3,961 |
|
|
3,679 |
|
PPP |
|
232 |
|
|
545 |
|
|
2,142 |
|
Stock secured |
|
3,651 |
|
|
3,435 |
|
|
2,520 |
|
Other secured |
|
2,623 |
|
|
2,457 |
|
|
1,863 |
|
Unsecured |
|
2,968 |
|
|
3,085 |
|
|
3,051 |
|
Total loans |
|
141,313 |
|
|
134,956 |
|
|
118,084 |
|
Allowance for credit losses |
|
(701 |
) |
|
(694 |
) |
|
(621 |
) |
Loans, net |
|
140,612 |
|
|
134,262 |
|
|
117,463 |
|
|
|
|
|
|
|
|
|||
Investments in life insurance |
|
2,682 |
|
|
2,650 |
|
|
2,329 |
|
Tax credit investments |
|
1,231 |
|
|
1,220 |
|
|
1,127 |
|
Premises, equipment and leasehold improvements, net |
|
467 |
|
|
454 |
|
|
412 |
|
|
|
221 |
|
|
222 |
|
|
226 |
|
Other assets |
|
3,850 |
|
|
3,631 |
|
|
3,670 |
|
Total Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|||
Liabilities: |
|
|
|
|
|
|
|||
Deposits: |
|
|
|
|
|
|
|||
Noninterest-bearing checking |
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
|
41,589 |
|
|
41,248 |
|
|
32,543 |
|
Money market checking |
|
21,846 |
|
|
20,303 |
|
|
19,210 |
|
Money market savings and passbooks |
|
19,159 |
|
|
16,573 |
|
|
14,097 |
|
Certificates of deposit |
|
7,042 |
|
|
7,357 |
|
|
8,250 |
|
Total Deposits |
|
162,060 |
|
|
156,321 |
|
|
127,907 |
|
|
|
|
|
|
|
|
|||
Long-term FHLB advances |
|
3,700 |
|
|
3,700 |
|
|
10,505 |
|
Senior notes |
|
999 |
|
|
998 |
|
|
997 |
|
Subordinated notes |
|
779 |
|
|
779 |
|
|
778 |
|
Other liabilities |
|
3,429 |
|
|
3,391 |
|
|
2,669 |
|
Total Liabilities |
|
170,967 |
|
|
165,189 |
|
|
142,856 |
|
|
|
|
|
|
|
|
|||
Shareholders’ Equity: |
|
|
|
|
|
|
|||
Preferred stock |
|
3,633 |
|
|
3,633 |
|
|
2,143 |
|
Common stock |
|
2 |
|
|
2 |
|
|
2 |
|
Additional paid-in capital |
|
5,763 |
|
|
5,725 |
|
|
5,191 |
|
Retained earnings |
|
6,893 |
|
|
6,569 |
|
|
5,627 |
|
Accumulated other comprehensive loss |
|
(137 |
) |
|
(31 |
) |
|
(21 |
) |
Total Shareholders’ Equity |
|
16,154 |
|
|
15,898 |
|
|
12,942 |
|
Total Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
||||||||||||||||||||
|
|
2022 |
|
2021 |
|
2021 |
||||||||||||||||||
Average Balances, Yields and Rates |
|
Average Balance |
|
Interest Income/Expense (1) |
|
Yield/ Rates (2) |
|
Average Balance |
|
Interest Income/Expense (1) |
|
Yield/ Rates (2) |
|
Average Balance |
|
Interest Income/Expense (1) |
|
Yield/ Rates (2) |
||||||
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits with banks |
|
|
|
|
|
|
0.18 |
% |
|
|
|
|
|
|
0.10 |
% |
|
|
|
|
|
|
0.15 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
securities |
|
117 |
|
0 |
|
|
1.37 |
% |
|
94 |
|
0 |
|
|
1.45 |
% |
|
100 |
|
0 |
|
|
1.59 |
% |
Agency residential and commercial MBS |
|
9,142 |
|
39 |
|
|
1.70 |
% |
|
5,626 |
|
31 |
|
|
2.17 |
% |
|
7,011 |
|
29 |
|
|
1.65 |
% |
Other residential and commercial MBS |
|
24 |
|
0 |
|
|
2.04 |
% |
|
33 |
|
0 |
|
|
1.87 |
% |
|
25 |
|
0 |
|
|
1.82 |
% |
Tax-exempt municipal securities |
|
15,595 |
|
151 |
|
|
3.87 |
% |
|
12,270 |
|
127 |
|
|
4.14 |
% |
|
14,869 |
|
146 |
|
|
3.93 |
% |
Taxable municipal securities |
|
1,715 |
|
13 |
|
|
2.97 |
% |
|
1,079 |
|
8 |
|
|
2.95 |
% |
|
1,670 |
|
12 |
|
|
2.99 |
% |
Other investment securities |
|
1,416 |
|
10 |
|
|
2.85 |
% |
|
429 |
|
3 |
|
|
2.39 |
% |
|
1,405 |
|
10 |
|
|
2.86 |
% |
Total investment securities |
|
28,009 |
|
213 |
|
|
3.04 |
% |
|
19,531 |
|
169 |
|
|
3.45 |
% |
|
25,080 |
|
197 |
|
|
3.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential real estate |
|
82,416 |
|
567 |
|
|
2.75 |
% |
|
65,459 |
|
469 |
|
|
2.87 |
% |
|
78,436 |
|
545 |
|
|
2.78 |
% |
Multifamily |
|
16,281 |
|
140 |
|
|
3.45 |
% |
|
13,922 |
|
123 |
|
|
3.53 |
% |
|
15,479 |
|
154 |
|
|
3.90 |
% |
Commercial real estate |
|
8,633 |
|
82 |
|
|
3.77 |
% |
|
8,033 |
|
78 |
|
|
3.88 |
% |
|
8,525 |
|
83 |
|
|
3.82 |
% |
Multifamily/commercial construction |
|
1,929 |
|
22 |
|
|
4.62 |
% |
|
2,867 |
|
31 |
|
|
4.34 |
% |
|
2,044 |
|
24 |
|
|
4.70 |
% |
Business |
|
18,590 |
|
145 |
|
|
3.12 |
% |
|
15,076 |
|
124 |
|
|
3.28 |
% |
|
17,210 |
|
139 |
|
|
3.15 |
% |
PPP |
|
381 |
|
7 |
|
|
7.59 |
% |
|
1,990 |
|
16 |
|
|
3.17 |
% |
|
732 |
|
9 |
|
|
4.65 |
% |
Other |
|
9,058 |
|
47 |
|
|
2.06 |
% |
|
7,348 |
|
39 |
|
|
2.16 |
% |
|
8,578 |
|
45 |
|
|
2.03 |
% |
Total loans |
|
137,288 |
|
1,010 |
|
|
2.94 |
% |
|
114,695 |
|
880 |
|
|
3.07 |
% |
|
131,004 |
|
999 |
|
|
3.02 |
% |
FHLB stock |
|
115 |
|
2 |
|
|
7.60 |
% |
|
345 |
|
5 |
|
|
6.10 |
% |
|
143 |
|
4 |
|
|
11.17 |
% |
Total interest-earning assets |
|
176,754 |
|
1,230 |
|
|
2.78 |
% |
|
146,020 |
|
1,057 |
|
|
2.90 |
% |
|
171,569 |
|
1,206 |
|
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-earning cash |
|
449 |
|
|
|
|
|
414 |
|
|
|
|
|
426 |
|
|
|
|
||||||
|
|
221 |
|
|
|
|
|
227 |
|
|
|
|
|
223 |
|
|
|
|
||||||
Other assets |
|
7,142 |
|
|
|
|
|
6,091 |
|
|
|
|
|
6,967 |
|
|
|
|
||||||
Total noninterest-earning assets |
|
7,812 |
|
|
|
|
|
6,732 |
|
|
|
|
|
7,616 |
|
|
|
|
||||||
Total Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing checking |
|
|
|
1 |
|
|
0.01 |
% |
|
|
|
2 |
|
|
0.03 |
% |
|
|
|
1 |
|
|
0.01 |
% |
Money market checking |
|
21,659 |
|
5 |
|
|
0.09 |
% |
|
18,889 |
|
8 |
|
|
0.16 |
% |
|
21,925 |
|
5 |
|
|
0.10 |
% |
Money market savings and passbooks |
|
17,925 |
|
7 |
|
|
0.15 |
% |
|
13,640 |
|
6 |
|
|
0.19 |
% |
|
16,935 |
|
6 |
|
|
0.15 |
% |
CDs |
|
7,217 |
|
7 |
|
|
0.40 |
% |
|
8,413 |
|
12 |
|
|
0.56 |
% |
|
7,482 |
|
8 |
|
|
0.42 |
% |
Total interest-bearing deposits (3) |
|
87,201 |
|
20 |
|
|
0.09 |
% |
|
72,933 |
|
28 |
|
|
0.15 |
% |
|
83,238 |
|
20 |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Short-term borrowings |
|
— |
|
— |
|
|
— |
% |
|
0 |
|
0 |
|
|
0.18 |
% |
|
— |
|
— |
|
|
— |
% |
Long-term FHLB advances |
|
3,700 |
|
9 |
|
|
0.95 |
% |
|
11,322 |
|
40 |
|
|
1.45 |
% |
|
4,582 |
|
12 |
|
|
1.06 |
% |
Senior notes |
|
998 |
|
6 |
|
|
2.42 |
% |
|
996 |
|
6 |
|
|
2.42 |
% |
|
998 |
|
6 |
|
|
2.42 |
% |
Subordinated notes |
|
779 |
|
9 |
|
|
4.68 |
% |
|
778 |
|
9 |
|
|
4.68 |
% |
|
779 |
|
9 |
|
|
4.68 |
% |
Total borrowings |
|
5,477 |
|
24 |
|
|
1.75 |
% |
|
13,096 |
|
55 |
|
|
1.72 |
% |
|
6,359 |
|
27 |
|
|
1.72 |
% |
Total interest-bearing liabilities (4) |
|
92,678 |
|
44 |
|
|
0.19 |
% |
|
86,029 |
|
83 |
|
|
0.39 |
% |
|
89,597 |
|
47 |
|
|
0.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing checking |
|
72,251 |
|
|
|
|
|
51,689 |
|
|
|
|
|
71,308 |
|
|
|
|
||||||
Other noninterest-bearing liabilities |
|
3,613 |
|
|
|
|
|
2,638 |
|
|
|
|
|
3,044 |
|
|
|
|
||||||
Total noninterest-bearing liabilities |
|
75,864 |
|
|
|
|
|
54,327 |
|
|
|
|
|
74,352 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Preferred shareholders’ equity |
|
3,633 |
|
|
|
|
|
1,964 |
|
|
|
|
|
3,158 |
|
|
|
|
||||||
Common shareholders’ equity |
|
12,391 |
|
|
|
|
|
10,432 |
|
|
|
|
|
12,078 |
|
|
|
|
||||||
Total Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest spread (5) |
|
|
|
|
|
2.59 |
% |
|
|
|
|
|
2.50 |
% |
|
|
|
|
|
2.58 |
% |
|||
Net interest income (fully taxable-equivalent basis) and net interest margin (6) |
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of tax-equivalent net interest income to net interest income: (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal securities tax-equivalent adjustment |
|
|
|
(34 |
) |
|
|
|
|
|
(28 |
) |
|
|
|
|
|
(32 |
) |
|
|
|||
Business loans tax-equivalent adjustment |
|
|
|
(7 |
) |
|
|
|
|
|
(7 |
) |
|
|
|
|
|
(7 |
) |
|
|
|||
Net interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total deposits (interest-bearing and noninterest-bearing) |
|
|
|
|
|
|
0.05 |
% |
|
|
|
|
|
|
0.09 |
% |
|
|
|
|
|
|
0.05 |
% |
Total deposits (interest-bearing and noninterest-bearing) and borrowings |
|
|
|
|
|
|
0.11 |
% |
|
|
|
|
|
|
0.24 |
% |
|
|
|
|
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
__________ |
Note: Certain prior period amounts have been reclassified to conform to the current period presentation. |
(1) Interest income on tax-exempt securities and loans has been adjusted to the fully taxable-equivalent basis using the statutory federal income tax rate in effect for each respective period presented. |
(2) Yields/rates are annualized. |
(3) Refer to supplemental information in this table for average balances, interest expense and rates for total deposits (interest-bearing and noninterest- bearing). |
(4) Refer to supplemental information in this table for average balances, interest expense and rates for total deposits (interest-bearing and noninterest- bearing) and borrowings. |
(5) Net interest spread represents the average yield on interest-earning assets less the average rate on interest-bearing liabilities. |
(6) Net interest margin represents net interest income on a fully taxable-equivalent basis divided by total average interest-earning assets. |
(7) Fully taxable-equivalent net interest income is considered a non-GAAP financial measure, and is reconciled to GAAP net interest income in this table. |
|
Selected Financial Data and Ratios |
|
Quarter Ended
|
|
Quarter Ended
|
|||||
|
2022 |
|
|
2021 |
|
|
2021 |
||
($ in millions, except per share amounts) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Selected Financial Data and Ratios: |
|
|
|
|
|
|
|||
Return on average assets (1), (2) |
|
0.88 |
% |
|
0.89 |
% |
|
0.89 |
% |
Return on average common shareholders’ equity (1) |
|
11.91 |
% |
|
12.30 |
% |
|
12.08 |
% |
Return on average tangible common shareholders’ equity (1), (3) |
|
12.12 |
% |
|
12.57 |
% |
|
12.31 |
% |
Average equity to average assets |
|
8.68 |
% |
|
8.12 |
% |
|
8.50 |
% |
Dividends per common share |
|
|
|
|
|
|
|
|
|
Dividend payout ratio |
|
11.0 |
% |
|
11.2 |
% |
|
10.9 |
% |
Efficiency ratio (4) |
|
62.0 |
% |
|
63.5 |
% |
|
63.3 |
% |
|
|
|
|
|
|
|
|||
Selected Asset Quality Ratios: |
|
|
|
|
|
|
|||
Net loan charge-offs (recoveries) |
|
|
) |
|
|
|
|
|
|
Net loan charge-offs (recoveries) to average total loans (1) |
|
(0.00 |
)% |
|
0.00 |
% |
|
0.00 |
% |
|
|
|
|
|
|
|
|||
Selected Ratios (period-end): |
|
|
|
|
|
|
|||
Book value per common share |
|
|
|
|
|
|
|
|
|
Tangible book value per common share (5) |
|
|
|
|
|
|
|
|
|
__________ |
|
|
|
|
|
|
|||
(1) Ratios are annualized. |
|||||||||
(2) Return on average assets is the ratio of net income to average assets. |
|||||||||
(3) Refer to “Return on Average Common Shareholders’ Equity and Return on Average Tangible Common Shareholders’ Equity” table in this document for a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure. |
|||||||||
(4) Efficiency ratio is the ratio of noninterest expense to the sum of net interest income and noninterest income. |
|||||||||
(5) Refer to “Book Value per Common Share and Tangible Book Value per Common Share” table in this document for a reconciliation of this non-GAAP financial measure to the most comparable GAAP measure. |
|||||||||
Effective Tax Rate |
|
Quarter Ended
|
|
Quarter Ended
|
|||||
|
2022 |
|
2021 |
|
2021 |
||||
|
|
|
|
|
|
|
|||
Effective tax rate, prior to excess tax benefits—stock awards and research and development tax credits from amended tax returns |
|
23.4 |
% |
|
22.6 |
% |
|
22.0 |
% |
Excess tax benefits—stock awards |
|
(0.5 |
) |
|
(0.7 |
) |
|
(1.5 |
) |
Research and development tax credits from amended tax returns |
|
— |
|
|
— |
|
|
(4.4 |
) |
Effective tax rate |
|
22.9 |
% |
|
21.9 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|||
Provision (Reversal of Provision) for Credit Losses |
|
Quarter Ended
|
|
Quarter Ended
|
||||
|
2022 |
|
2021 |
|
|
2021 |
||
($ in millions) |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Debt securities held-to-maturity |
|
|
|
|
|
|
$ — |
|
Loans |
|
7 |
|
(14 |
) |
|
26 |
|
Unfunded loan commitments |
|
2 |
|
(2 |
) |
|
(2 |
) |
Total provision (reversal of provision) |
|
|
|
|
) |
|
|
|
Loan Originations |
|
Quarter Ended
|
|
Quarter Ended
|
||
|
2022 |
|
2021 |
|
2021 |
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Single family |
|
|
|
|
|
|
Home equity lines of credit |
|
689 |
|
624 |
|
617 |
Single family construction |
|
267 |
|
225 |
|
245 |
Multifamily |
|
1,709 |
|
791 |
|
1,723 |
Commercial real estate |
|
566 |
|
314 |
|
597 |
Multifamily/commercial construction |
|
384 |
|
311 |
|
190 |
Capital call lines of credit |
|
3,020 |
|
3,131 |
|
3,690 |
Tax-exempt |
|
90 |
|
214 |
|
130 |
Other business |
|
538 |
|
1,025 |
|
650 |
PPP |
|
— |
|
689 |
|
— |
Stock secured |
|
1,136 |
|
710 |
|
966 |
Other secured |
|
666 |
|
439 |
|
546 |
Unsecured |
|
369 |
|
346 |
|
517 |
Total loans originated |
|
|
|
|
|
|
|
|
As of |
|||||||||||||
Asset Quality Information |
|
|
|
|
|
|
|
|
|
|
|||||
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonperforming assets: |
|
|
|
|
|
|
|
|
|
|
|||||
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other real estate owned |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Total nonperforming assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonaccrual loans to total loans |
|
0.10 |
% |
|
0.10 |
% |
|
0.10 |
% |
|
0.11 |
% |
|
0.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonperforming assets to total assets |
|
0.08 |
% |
|
0.08 |
% |
|
0.07 |
% |
|
0.08 |
% |
|
0.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Accruing loans 90 days or more past due |
|
$ — |
|
|
$ — |
|
|
$ — |
|
|
$ — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Restructured accruing loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan credit losses to: |
|
|
|
|
|
|
|
|
|
|
|||||
Total loans |
|
0.50 |
% |
|
0.51 |
% |
|
0.52 |
% |
|
0.52 |
% |
|
0.53 |
% |
Nonaccrual loans |
|
498.8 |
% |
|
500.5 |
% |
|
524.4 |
% |
|
479.3 |
% |
|
359.3 |
% |
|
|
As of |
||||||||
Loan Servicing Portfolio |
|
|
|
|
|
|
|
|
|
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for investors |
|
|
|
|
|
|
|
|
|
|
Return on Average Common Shareholders’ Equity and Return on Average Tangible Common Shareholders’ Equity (1), (2) |
|
Quarter Ended
|
|
Quarter Ended
|
|||||
|
2022 |
|
2021 |
|
2021 |
||||
($ in millions) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Average common shareholders’ equity (a) |
|
|
|
|
|
|
|
|
|
Less: Average goodwill and other intangible assets |
|
(221 |
) |
|
(227 |
) |
|
(223 |
) |
Average tangible common shareholders’ equity (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net income available to common shareholders (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Return on average common shareholders’ equity (c) / (a) |
|
11.91 |
% |
|
12.30 |
% |
|
12.08 |
% |
Return on average tangible common shareholders’ equity (c) / (b) |
|
12.12 |
% |
|
12.57 |
% |
|
12.31 |
% |
__________ |
|
|
|
|
|
|
|||
(1) Return on average tangible common shareholders’ equity is considered a non-GAAP financial measure, and is reconciled to GAAP return on average common shareholders’ equity in this table. |
|||||||||
(2) Ratios are annualized. |
|||||||||
Book Value per Common Share and Tangible Book Value per Common Share (1) |
|
As of |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||
(in millions, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Total shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Preferred stock |
|
(3,633 |
) |
|
(3,633 |
) |
|
(2,893 |
) |
|
(2,143 |
) |
|
(2,143 |
) |
Total common shareholders’ equity (a) |
|
12,521 |
|
|
12,265 |
|
|
11,909 |
|
|
11,132 |
|
|
10,799 |
|
Less: |
|
(221 |
) |
|
(222 |
) |
|
(223 |
) |
|
(224 |
) |
|
(226 |
) |
Total tangible common shareholders’ equity (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Number of shares of common stock outstanding (c) |
|
180 |
|
|
179 |
|
|
179 |
|
|
177 |
|
|
176 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per common share (a) / (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share (b) / (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________ |
|
|
|
|
|
|
|
|
|
|
|||||
(1) Tangible book value per common share is considered a non-GAAP financial measure, and is reconciled to GAAP book value per common share in this table. |
|||||||||||||||
Regulatory Capital Ratios and Components (1), (2) |
|
As of |
||||||||
|
2022 (3) |
|
|
|
|
|
|
|
|
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio (Tier 1 capital to average assets) |
|
8.70 % |
|
8.76 % |
|
8.55 % |
|
8.05 % |
|
8.32 % |
Common Equity Tier 1 capital to risk-weighted assets |
|
9.48 % |
|
9.65 % |
|
9.81 % |
|
9.51 % |
|
9.64 % |
Tier 1 capital to risk-weighted assets |
|
12.25 % |
|
12.56 % |
|
12.25 % |
|
11.38 % |
|
11.60 % |
Total capital to risk-weighted assets |
|
13.37 % |
|
13.72 % |
|
13.45 % |
|
12.60 % |
|
12.87 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 capital |
|
|
|
|
|
|
|
|
|
|
Tier 1 capital |
|
|
|
|
|
|
|
|
|
|
Total capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Average assets |
|
|
|
|
|
|
|
|
|
|
Risk-weighted assets |
|
|
|
|
|
|
|
|
|
|
__________ |
|
|
|
|
|
|
|
|
|
|
(1) As defined by regulatory capital rules. |
||||||||||
(2) Beginning in 2020, ratios and amounts reflect the Bank's election to delay the estimated impact of the Current Expected Credit Losses (“CECL”)
allowance methodology on its regulatory capital, average assets and risk-weighted assets over a five-year transition period ending 2024. |
||||||||||
(3) Ratios and amounts as of |
||||||||||
|
|
As of |
||||||||
Wealth Management Assets |
|
|
|
|
|
|
|
|
|
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage and investment: |
|
|
|
|
|
|
|
|
|
|
Brokerage |
|
128,129 |
|
128,258 |
|
115,793 |
|
112,359 |
|
101,478 |
Money market mutual funds |
|
18,543 |
|
23,673 |
|
18,074 |
|
13,109 |
|
11,435 |
Total brokerage and investment |
|
146,672 |
|
151,931 |
|
133,867 |
|
125,468 |
|
112,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust |
|
14,344 |
|
13,695 |
|
12,220 |
|
11,496 |
|
10,986 |
Custody |
|
4,408 |
|
4,687 |
|
4,533 |
|
4,439 |
|
4,216 |
|
|
18,752 |
|
18,382 |
|
16,753 |
|
15,935 |
|
15,202 |
Total Wealth Management Assets |
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220413005241/en/
Investors:
Addo Investor Relations
agreenebaum@addo.com
lglassen@addo.com
(310) 829-5400
Media:
gberardi@firstrepublic.com
(415) 239-7826
Source:
FAQ
What were First Republic Bank's revenue numbers for Q1 2022?
How did First Republic Bank's net income change in Q1 2022?
What was the diluted EPS for First Republic Bank in Q1 2022?
How much did First Republic Bank increase its dividend for Q1 2022?
What was the tangible book value per share for First Republic Bank in Q1 2022?
