Net Interest Income Increased 26% Year-Over-Year

Tangible Book Value Per Share Increased 17% Year-Over-Year

First Republic Bank (NYSE:FRC) today announced financial results for the quarter and year ended December 31, 2021.

"This was a terrific year for First Republic," said Mike Roffler, Co-CEO (Acting) and President. "Loans, deposits and wealth management assets all grew nicely for both the fourth quarter and the full year. First Republic continues to succeed by executing a client-centric business model focused on exceptional service."

Full Year Highlights

Financial Results

– Revenues were $5.0 billion, up 28.5%.

– Net interest income was $4.1 billion, up 26.1%.

– Net income was $1.5 billion, up 38.9%.

– Diluted earnings per share ("EPS") of $7.68, up 32.2%.

– Loan originations totaled $64.8 billion, our best year ever.

– Tangible book value per share was $67.10, up 17.1%.

– Efficiency ratio was 62.5%, compared to 61.9% last year.

Continued Capital and Credit Strength

– Tier 1 leverage ratio was 8.76%.

– Tier 1 capital raised of $2.8 billion, net.

– Nonperforming assets remained at a low 8 basis points of total assets at year-end.

– Net charge-offs were only $2.1 million, or less than 1 basis point of average loans.

Continued Franchise Growth

– Loans totaled $135.0 billion, up 19.9%.

– Deposits were $156.3 billion, up 36.0%.

– Wealth management assets were $279.4 billion, up 43.7%.

– Wealth management revenues were $760 million, up 44.4%.

Quarterly Highlights

– Compared to last year's fourth quarter:

– Revenues were $1.4 billion, up 26.4%.

– Net interest income was $1.1 billion, up 25.4%.

– Net income was $400 million, up 35.5%.

– Diluted EPS of $2.02, up 26.3%.

– Loan originations were $16.9 billion, our best quarter ever.

– Net charge-offs were less than $100,000.

– Compared to the prior quarter:

– Net interest margin was 2.68%, compared to 2.65%.

– Efficiency ratio was 63.3%, compared to 61.3%.

– Wealth management assets were up 11.0%.

"Credit quality, liquidity and capital remain strong, and we're pleased to have raised $2.8 billion in net new Tier 1 capital in 2021," said Olga Tsokova, Chief Financial Officer (Acting) and Chief Accounting Officer. "Net interest income increased 26% and tangible book value per share rose 17% in 2021."

Quarterly Cash Dividend of $0.22 per Share

The Bank declared a cash dividend for the fourth quarter of $0.22 per share of common stock, which is payable on February 10, 2022 to shareholders of record as of January 27, 2022.

Strong Asset Quality

Credit quality remains strong. Nonperforming assets were at a low 8 basis points of total assets at December 31, 2021.

The provision for credit losses for the full year was $59 million, with net loan charge-offs of only $2.1 million. For the quarter, the provision for credit losses was $24 million, which was primarily driven by loan growth.

Continued Book Value Growth and Capital Strength

Book value per common share at December 31, 2021 was $68.34, up 16.6% from a year ago. Tangible book value per common share at December 31, 2021 was $67.10, up 17.1% from a year ago.

The Bank's Tier 1 leverage ratio was 8.76%at December 31, 2021, compared to 8.55% at September 30, 2021.

During the fourth quarter, the Bank issued $740 million of 4.500% Noncumulative Perpetual Series N Preferred Stock, which qualifies as Tier 1 capital.

Total common stock sold and preferred stock issued, net of preferred stock redeemed, added $2.8 billion of Tier 1 capital in 2021, and contributed to the 35.3% increase in total equity year-over-year.

Continued Franchise Growth

Loan Originations

Loan originations were $16.9 billion for the quarter, up slightly from the same quarter a year ago. For 2021, loan originations totaled $64.8 billion, up 23.0% compared to the prior year. The increase for the year was primarily due to increases in single family lending and capital call lines of credit.

Single family loan originations were 42% of the total loan origination volume for the quarter and 46% for the full year, and had a weighted average loan-to-value ratio of 59% for the full year. In addition, multifamily and commercial real estate loans originated were 14% of total originations for the quarter and 11% for the year, and had a weighted average loan-to-value ratio of 49% for the year.

Loans totaled $135.0 billion at December 31, 2021, up 19.9% compared to a year ago, primarily due to increases in single family, capital call lines of credit, multifamily and stock secured loans, partially offset by a decrease in PPP loans.

Deposit Growth

Total deposits increased to $156.3 billion, up 36.0% compared to a year ago, and had an average rate paid of 5 basis points during the quarter.

At December 31, 2021, checking deposit balances were 71.7% of total deposits.

Investments

Total investment securities at December 31, 2021 were $25.7 billion, a 6.3% increase compared to the prior quarter and a 38.7% increase compared to a year ago.

High-quality liquid assets, including eligible cash, totaled $30.4 billion at December 31, 2021, and represented 17.0% of quarterly average total assets.

Wealth Management

Total wealth management assets were $279.4 billion at December 31, 2021, up 11.0% compared to the prior quarter and up 43.7% compared to a year ago. The increases in wealth management assets were due to net client inflow and market appreciation.

Wealth management revenues totaled $207 million for the quarter, up 37.1% compared to last year's fourth quarter. For 2021, wealth management revenues were $760 million, an increase of 44.4% compared to the prior year. Such revenues represented 15.2% of the Bank's total revenues for the quarter and 15.1% of the Bank's total revenues for the year.

Wealth management assets at December 31, 2021 included investment management assets of $109.1 billion, brokerage assets and money market mutual funds of $151.9 billion, and trust and custody assets of $18.4 billion.

Income Statement and Key Ratios

Revenue Growth

Total revenues were $1.4 billion for the quarter, up 26.4% compared to the fourth quarter a year ago, and were $5.0 billion for 2021, up 28.5% compared to the prior year.

Net Interest Income Growth

Net interest income was $1.1 billion for the quarter, up 25.4% compared to the fourth quarter a year ago, and was $4.1 billion for 2021, up 26.1% compared to the prior year. The increases in net interest income resulted primarily from growth in average interest-earning assets, modestly offset by decreases in net interest margin.

Net Interest Margin

The net interest margin increased to 2.68% in the fourth quarter, from 2.65% in the prior quarter. For 2021, the net interest margin was 2.67%, compared to 2.72% for the prior year. The increase for the quarter was primarily due to reduced interest expense that resulted from prepaid FHLB advances in the fourth quarter of 2021. The decline for the year was primarily due to significantly higher average cash balances during the year.

Noninterest Income

Noninterest income was $247 million for the quarter, up 31.6% compared to the fourth quarter a year ago, and was $920 million for 2021, up 40.6% compared to the prior year. The increases were primarily driven by higher wealth management fees and income from investments in life insurance.

Noninterest Expense and Efficiency Ratio

Noninterest expense was $866 million for the quarter, up 29.9% compared to the fourth quarter a year ago, and was $3.1 billion for 2021, up 29.7% compared to the prior year, primarily due to continued investments in the expansion of the franchise, including hiring additional colleagues to support our growth and information systems initiatives.

The efficiency ratio was 63.3% for the quarter, compared to 61.6% for the fourth quarter a year ago. The increase was primarily due to higher compensation costs. For 2021, the efficiency ratio was 62.5%, compared to 61.9% for 2020.

Income Taxes

The Bank's effective tax rate for the fourth quarter of 2021 was 16.1%, compared to 22.1% for the fourth quarter a year ago. The effective tax rate for 2021 was 19.1%, compared to 20.2% for 2020. The decreases were primarily due to research and development tax credits from prior years' amended tax returns filed in the fourth quarter of 2021.

Conference Call Details

First Republic Bank's fourth quarter 2021 earnings conference call is scheduled for January 14, 2022 at 7:00 a.m. PT / 10:00 a.m. ET. To access the event by telephone, please dial (888) 204-4368 and provide confirmation code 3634481 approximately 15 minutes prior to the start time (to allow time for registration). International callers should dial +1 (856) 344-9299 and provide the same confirmation code.

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 January 14, 2022 at 11:00 a.m. PT / 2:00 p.m. ET through January 21, 2022 at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (888) 203-1112 and use confirmation code 3634481#. International callers should dial +1 (719) 457-0820 and enter the same confirmation code. 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 ir.firstrepublic.com/events-calendar.

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 First Republic Bank

Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service and offers a complete line of products, including residential, commercial and personal loans, deposit services, and wealth management. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; and Jackson, Wyoming. First Republic is a constituent of the S&P 500 Index and KBW Nasdaq Bank Index. For more information, visit firstrepublic.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimates," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them.

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 including in connection with the search for our next chief executive officer; 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, such as the London Interbank Offered Rate and the 11th District Monthly Weighted Average Cost of Funds Index, as well as other alternative 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 Federal Deposit Insurance Corporation ("FDIC") special assessments or changes to regular assessments; fraud, cybersecurity and privacy risks; and custom technology preferences of our customers and our ability to successfully execute on initiatives relating to enhancements of our technology infrastructure, including client-facing systems and applications. For a discussion of these and other risks and uncertainties, see First Republic's FDIC filings, including, but not limited to, the risk factors in First Republic's Annual Report on Form 10-K and any subsequent reports filed by First Republic with the FDIC. These filings are available in the Investor Relations section of our website.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout our public filings under the Exchange Act. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

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 December 31,					Quarter Ended September 30,		Year Ended December 31,
(in millions, except per share amounts)	2021			2020		2021		2021		2020
Interest income:
Loans	$	992		$	845	$	947	$	3,725	$	3,245
Investments		165			138		161		624		576
Other		4			6		5		19		24
Cash and cash equivalents		6			2		5		17		8
Total interest income		1,167			991		1,118		4,385		3,853

Interest expense:
Deposits		20			30		22		95		276
Borrowings		27			68		44		176		315
Total interest expense		47			98		66		271		591

Net interest income		1,120			893		1,052		4,114		3,262
Provision for credit losses		24			35		34		59		157
Net interest income after provision for credit losses		1,096			858		1,018		4,055		3,105

Noninterest income:
Investment management fees		150			114		149		554		395
Brokerage and investment fees		19			11		23		74		51
Insurance fees		7			6		6		19		12
Trust fees		7			5		6		25		19
Foreign exchange fee income		24			15		26		88		50
Deposit fees		7			6		7		27		24
Loan and related fees		9			7		8		33		28
Gain (loss) on investment securities		(3	)		—		2		1		4
Income from investments in life insurance		27			18		20		85		53
Other income		—			6		4		14		19
Total noninterest income		247			188		251		920		655

Noninterest expense:
Salaries and employee benefits		544			416		514		2,003		1,495
Information systems		99			79		91		362		299
Occupancy		66			57		67		254		221
Professional fees		27			18		27		101		66
Advertising and marketing		21			14		14		64		43
FDIC assessments		13			12		14		52		44
Other expenses		96			71		71		311		258
Total noninterest expense		866			667		798		3,147		2,426

Income before provision for income taxes		477			379		471		1,828		1,334
Provision for income taxes		77			84		101		350		270
Net income		400			295		370		1,478		1,064
Dividends on preferred stock		32			16		25		99		59
Net income available to common shareholders	$	368		$	279	$	345	$	1,379	$	1,005

Basic earnings per common share	$	2.05		$	1.61	$	1.94	$	7.78	$	5.85
Diluted earnings per common share	$	2.02		$	1.60	$	1.91	$	7.68	$	5.81

Weighted average shares—basic		179			173		178		177		172
Weighted average shares—diluted		182			175		180		180		173

CONSOLIDATED BALANCE SHEETS

	As of
($ in millions)	December 31, 2021			September 30, 2021			December 31, 2020
ASSETS
Cash and cash equivalents	$	12,947		$	12,279		$	5,095
Debt securities available-for-sale		3,381			2,961			1,906
Debt securities held-to-maturity, net		22,292			21,192			16,603
Equity securities (fair value)		28			32			21

Loans:
Single family		76,793			73,491			61,370
Home equity lines of credit		2,584			2,429			2,450
Single family construction		993			985			788
Multifamily		15,966			15,417			13,769
Commercial real estate		8,531			8,486			8,018
Multifamily/commercial construction		1,927			2,064			2,024
Capital call lines of credit		10,999			9,088			8,150
Tax-exempt		3,680			3,578			3,366
Other business		3,961			3,554			3,340
PPP		545			876			1,841
Stock secured		3,435			3,120			2,518
Other secured		2,457			2,261			1,819
Unsecured		3,085			3,026			3,113
Total loans		134,956			128,375			112,566
Allowance for credit losses		(694	)		(668	)		(635	)
Loans, net		134,262			127,707			111,931

Loans held for sale		1			4			21
Investments in life insurance		2,650			2,628			2,061
Tax credit investments		1,220			1,181			1,132
Premises, equipment and leasehold improvements, net		454			431			403
Goodwill and other intangible assets		222			223			228
Other assets		3,630			3,933			3,101
Total Assets	$	181,087		$	172,571		$	142,502

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing checking	$	70,840		$	65,833		$	46,281
Interest-bearing checking		41,248			34,089			30,603
Money market checking		20,303			21,861			16,779
Money market savings and passbooks		16,573			15,947			12,585
Certificates of deposit		7,357			7,596			8,681
Total Deposits		156,321			145,326			114,929

Long-term FHLB advances		3,700			7,700			11,755
Senior notes		998			998			996
Subordinated notes		779			779			778
Other liabilities		3,391			2,966			2,293
Total Liabilities		165,189			157,769			130,751

Shareholders' Equity:
Preferred stock		3,633			2,893			1,545
Common stock		2			2			2
Additional paid-in capital		5,725			5,685			4,835
Retained earnings		6,569			6,242			5,346
Accumulated other comprehensive income (loss)		(31	)		(20	)		23
Total Shareholders' Equity		15,898			14,802			11,751
Total Liabilities and Shareholders' Equity	$	181,087		$	172,571		$	142,502

	Quarter Ended December 31,														Quarter Ended September 30,
	2021							2020							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	$	15,342	$	6		0.15	%	$	6,966	$	2		0.10	%	$	13,384	$	5		0.15	%
Investment securities:
U.S. Government-sponsored agency securities		100		0		1.59	%		50		0		1.57	%		100		0		1.59	%
Agency residential and commercial MBS		7,011		29		1.65	%		5,786		32		2.23	%		6,200		28		1.84	%
Other residential and commercial MBS		25		0		1.82	%		35		0		2.08	%		28		0		2.25	%
Tax-exempt municipal securities		14,869		146		3.93	%		11,815		124		4.20	%		14,173		141		3.97	%
Taxable municipal securities		1,670		12		2.99	%		824		7		3.29	%		1,670		13		2.98	%
Other investment securities		1,405		10		2.86	%		76		1		2.68	%		1,405		10		2.86	%
Total investment securities		25,080		197		3.15	%		18,586		164		3.53	%		23,576		192		3.26	%

Loans:
Residential real estate		78,436		545		2.78	%		62,280		452		2.90	%		75,143		528		2.81	%
Multifamily		15,479		154		3.90	%		13,596		125		3.60	%		15,126		135		3.49	%
Commercial real estate		8,525		83		3.82	%		7,910		79		3.89	%		8,357		82		3.82	%
Multifamily/commercial construction		2,044		24		4.70	%		2,032		24		4.70	%		2,052		26		5.01	%
Business		17,210		139		3.15	%		13,383		116		3.39	%		15,928		129		3.17	%
PPP		732		9		4.65	%		2,004		14		2.82	%		1,123		11		4.01	%
Other		8,578		45		2.03	%		7,253		41		2.23	%		8,158		43		2.06	%
Total loans		131,004		999		3.02	%		108,458		851		3.11	%		125,887		954		3.00	%
FHLB stock		143		4		11.17	%		413		6		5.55	%		266		5		6.99	%
Total interest-earning assets		171,569		1,206		2.79	%		134,423		1,023		3.02	%		163,113		1,156		2.81	%

Noninterest-earning cash		426							453							391
Goodwill and other intangibles		223							228							224
Other assets		6,967							5,706							6,891
Total noninterest-earning assets		7,616							6,387							7,506
Total Assets	$	179,185						$	140,810						$	170,619

Liabilities and Shareholders' Equity:
Deposits:
Interest-bearing checking	$	36,896		1		0.01	%	$	28,332		2		0.03	%	$	33,642		1		0.01	%
Money market checking		21,925		5		0.10	%		16,890		8		0.19	%		21,861		6		0.11	%
Money market savings and passbooks		16,935		6		0.15	%		12,259		6		0.19	%		15,831		6		0.16	%
CDs		7,482		8		0.42	%		8,814		14		0.63	%		7,779		9		0.46	%
Total interest-bearing deposits ⁽³⁾		83,238		20		0.10	%		66,295		30		0.18	%		79,113		22		0.11	%

Borrowings:
Short-term borrowings		—		—		—	%		9		0		0.17	%		0		0		0.09	%
Long-term FHLB advances		4,582		12		1.06	%		13,298		53		1.58	%		8,545		28		1.29	%
Senior notes		998		6		2.42	%		996		6		2.42	%		997		6		2.42	%
Subordinated notes		779		9		4.68	%		778		9		4.68	%		779		10		4.68	%
Total borrowings		6,359		27		1.72	%		15,081		68		1.80	%		10,321		44		1.66	%
Total interest-bearing liabilities ⁽⁴⁾		89,597		47		0.21	%		81,376		98		0.48	%		89,434		66		0.29	%

Noninterest-bearing checking		71,308							45,545							64,008
Other noninterest-bearing liabilities		3,044							2,341							2,904
Total noninterest-bearing liabilities		74,352							47,886							66,912

Preferred shareholders' equity		3,158							1,552							2,730
Common shareholders' equity		12,078							9,996							11,543
Total Liabilities and Shareholders' Equity	$	179,185						$	140,810						$	170,619

Net interest spread ⁽⁵⁾						2.58	%						2.54	%						2.52	%
Net interest income (fully taxable-equivalent basis) and net interest margin⁽⁶⁾			$	1,159		2.68	%			$	925		2.73	%			$	1,090		2.65	%

Reconciliation of tax-equivalent net interest income to net interest income: ⁽⁷⁾
Municipal securities tax-equivalent adjustment				(32	)						(25	)						(31	)
Business loans tax-equivalent adjustment				(7	)						(7	)						(7	)
Net interest income			$	1,120						$	893						$	1,052

Supplemental information:
Total deposits (interest-bearing and noninterest-bearing)	$	154,546	$	20		0.05	%	$	111,840	$	30		0.11	%	$	143,121	$	22		0.06	%
Total deposits (interest-bearing and noninterest-bearing) and borrowings	$	160,905	$	47		0.12	%	$	126,921	$	98		0.31	%	$	153,442	$	66		0.17	%

	Year Ended December 31,
	2021							2020
*Average Balances, Yields and Rates*	Average Balance		Interest Income/ Expense ⁽¹⁾			Yields/ Rates		Average Balance		Interest Income/ Expense ⁽¹⁾			Yields/ Rates
($ in millions)
Assets:
Interest-bearing deposits with banks	$	12,876	$	17		0.13	%	$	4,018	$	8		0.19	%
Investment securities:
U.S. Government-sponsored agency securities		98		2		1.56	%		193		5		2.56	%
Agency residential and commercial MBS		6,125		117		1.91	%		6,348		160		2.51	%
Other residential and commercial MBS		29		1		2.00	%		26		1		2.29	%
Tax-exempt municipal securities		13,704		549		4.01	%		11,329		486		4.29	%
Taxable municipal securities		1,510		45		2.98	%		738		25		3.32	%
Other investment securities		1,157		32		2.80	%		52		1		2.77	%
Total investment securities		22,623		746		3.30	%		18,686		678		3.62	%

Loans:
Residential real estate		72,679		2,048		2.82	%		56,628		1,703		3.01	%
Multifamily		14,735		539		3.61	%		13,093		489		3.68	%
Commercial real estate		8,260		321		3.83	%		7,752		313		3.97	%
Multifamily/commercial construction		2,067		105		4.99	%		1,935		95		4.82	%
Business		16,033		520		3.20	%		12,846		465		3.56	%
PPP		1,418		51		3.58	%		1,432		33		2.26	%
Other		7,938		169		2.10	%		6,842		173		2.48	%
Total loans		123,130		3,753		3.03	%		100,528		3,271		3.23	%
FHLB stock		266		19		7.14	%		442		24		5.40	%
Total interest-earning assets		158,895		4,535		2.84	%		123,674		3,981		3.20	%

Noninterest-earning cash		404							439
Goodwill and other intangibles		225							231
Other assets		6,671							5,104
Total noninterest-earning assets		7,300							5,774
Total Assets	$	166,195						$	129,448

Liabilities and Shareholders' Equity:
Deposits:
Interest-bearing checking	$	33,977		6		0.02	%	$	24,143		16		0.07	%
Money market checking		20,662		25		0.12	%		14,848		56		0.38	%
Money market savings and passbooks		15,308		25		0.17	%		10,659		32		0.30	%
CDs		7,926		39		0.49	%		11,754		172		1.46	%
Total interest-bearing deposits ⁽³⁾		77,873		95		0.12	%		61,404		276		0.45	%

Borrowings:
Short-term borrowings		0		0		0.09	%		311		5		1.52	%
Long-term FHLB advances		8,609		116		1.34	%		14,330		250		1.74	%
Senior notes		997		24		2.42	%		938		23		2.44	%
Subordinated notes		779		36		4.68	%		778		37		4.68	%
Total borrowings		10,385		176		1.70	%		16,357		315		1.92	%
Total interest-bearing liabilities ⁽⁴⁾		88,258		271		0.31	%		77,761		591		0.76	%

Noninterest-bearing checking		61,325							38,796
Other noninterest-bearing liabilities		2,847							2,131
Total noninterest-bearing liabilities		64,172							40,927

Preferred shareholders' equity		2,502							1,268
Common shareholders' equity		11,263							9,492
Total Liabilities and Shareholders' Equity	$	166,195						$	129,448

Net interest spread ⁽⁵⁾						2.53	%						2.44	%
Net interest income (fully taxable-equivalent basis) and net interest margin⁽⁶⁾			$	4,264		2.67	%			$	3,390		2.72	%

Reconciliation of tax-equivalent net interest income to net interest income: ⁽⁷⁾
Municipal securities tax-equivalent adjustment				(122	)						(101	)
Business loans tax-equivalent adjustment				(28	)						(27	)
Net interest income			$	4,114						$	3,262

Supplemental information:
Total deposits (interest-bearing and noninterest-bearing)	$	139,198	$	95		0.07	%	$	100,200	$	276		0.28	%
Total deposits (interest-bearing and noninterest-bearing) and borrowings	$	149,583	$	271		0.18	%	$	116,557	$	591		0.51	%
__________

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.

	Quarter Ended December 31,						Quarter Ended September 30,			Year Ended December 31,
*Selected Financial Data and Ratios*	2021			2020			2021			2021			2020
($ in millions, except per share amounts)
Selected Financial Data and Ratios:
Return on average assets ^{(1), (2)}		0.89	%		0.84	%		0.86	%		0.89	%		0.82	%
Return on average common shareholders' equity ⁽¹⁾		12.08	%		11.12	%		11.87	%		12.24	%		10.59	%
Return on average tangible common shareholders' equity ^{(1), (3)}		12.31	%		11.38	%		12.10	%		12.49	%		10.86	%
Average equity to average assets		8.50	%		8.20	%		8.37	%		8.28	%		8.31	%
Dividends per common share	$	0.22		$	0.20		$	0.22		$	0.86		$	0.79
Dividend payout ratio		10.9	%		12.5	%		11.5	%		11.2	%		13.6	%
Efficiency ratio ⁽⁴⁾		63.3	%		61.6	%		61.3	%		62.5	%		61.9	%

Net loan charge-offs (recoveries)	$	0.1		$	(0.6	)	$	0.3		$	2.1		$	2.4
Net loan charge-offs (recoveries) to average total loans ⁽¹⁾		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%

Selected Ratios (period-end):
Book value per common share	$	68.34		$	58.61		$	66.44
Tangible book value per common share ⁽⁵⁾	$	67.10		$	57.30		$	65.19

Allowance for loan credit losses to:
Total loans

First Republic Reports 2021 Results