Read First Republic Bank's 2021 Annual Report to learn more about the power of client service.

Financial Summary

Consolidated Statements of Income

Dollars in millions, except per share amounts
YEAR ENDED DECEMBER 31 2021 2020 2019

Interest income:
Loans $ 3,725 $ 3,245 $ 2,986
Investments 624 576 548
Other 19 24 21
Cash and cash equivalents 17 8 24
Total interest income 4,385 3,853 3,579

Interest expense:
Deposits 95 276 500
Borrowings 176 315 315
Total interest expense 271 591 815

Net interest income

 4,114 3,262 2,764
Provision for credit losses 59 157 62
Net interest income after provision for credit losses 4,055 3,105 2,702

Noninterest income:
Investment management fees 554 395 359
Brokerage and investment fees 74 51 41
Insurance fees 19 12 13
Trust fees 25 19 17
Foreign exchange fee income 88 50 41
Deposit fees 27 24 26
Loan and related fees 33 28 20
Gain (loss) on investment securities 1 4 (3)
Income from investments in life insurance 85 53 45
Other income, net 14 19 18
Total noninterest income 920 655 577

Noninterest expense:
Salaries and employee benefits 2,003 1,495 1,245
Information systems 362 299 273
Occupancy 254 221 193
Professional fees 101 66 68
Advertising and marketing 64 43 66
FDIC assessments 52 44 39
Other expenses 311 258 262
Total noninterest expense 3,147 2,426 2,146
Income before provision for income taxes 1,828 1,334 1,133
Provision for income taxes 350 270 203
Net income 1,478 1,064 930
Dividends on preferred stock 99 59 49
Net income available to common shareholders $ 1,379 $ 1,005 $ 881
Basic earnings per common share $ 7.78 $ 5.85 $ 5.25
Diluted earnings per common share $ 7.68 $ 5.81 $ 5.20
Dividends per common share $ 0.86 $ 0.79 $ 0.75
See notes to consolidated financial statements in our Annual Report on Form 10-K.

Consolidated Balance Sheets

Dollars in millions

Assets

AS OF DECEMBER 31 2021 2020
Cash and cash equivalents $ 12,947 $ 5,095
Debt securities available-for-sale 3,381 1,906
Debt securities held-to-maturity, net 22,292 16,603
Equity securities (fair value) 28 21

Loans:
Single family 76,793 61,370
Home equity lines of credit 2,584 2,450
Single family construction 993 788
Multifamily 15,966 13,769
Commercial real estate 8,531 8,018
Multifamily/commercial construction 1,927 2,024
Capital call lines of credit 10,999 8,150
Tax-exempt 3,680 3,366
Other business 3,961 3,340
PPP 545 1,841
Stock secured 3,435 2,518
Other secured 2,457 1,819
Unsecured 3,085 3,113
Total loans 134,956 112,566

Allowance for credit losses

 (694) (635)
Loans, net 134,262 111,931
Loans held for sale 1 21
Investments in life insurance 2,650 2,061
Tax credit investments 1,220 1,132
Premises, equipment and leasehold improvements, net 454 403
Goodwill and other intangible assets 222 228
Other assets 3,630 3,101
Total Assets $ 181,087 $ 142,502
See notes to consolidated financial statements in our Annual Report on Form 10-K.

Liabilities and Shareholders’ Equity

AS OF DECEMBER 31 2021 2020

Liabilities:
Deposits:
Noninterest-bearing checking $ 70,840 $ 46,281
Interest-bearing checking 41,248 30,603
Money market checking 20,303 16,779
Money market savings and passbooks 16,573 12,585
Certificates of deposit 7,357 8,681
Total deposits 156,321 114,929
Long-term FHLB advances 3,700 11,755
Senior notes 998 996
Subordinated notes 779 778
Other liabilities 3,391 2,293
Total Liabilities 165,189 130,751

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

First Republic Common and Preferred Stock
First Republic Bank’s Common Stock is traded on the New York Stock Exchange (“NYSE”) under the symbol FRC. At December 31, 2021, the Bank believes that its shares are held beneficially by approximately 350,000 shareholders.

First Republic Bank’s issues of Preferred Stock trade as depositary shares on NYSE under FRCPrH for the Series H, FRCPrI for the Series I, FRCPrJ for the Series J, FRCPrK for the Series K, FRCPrL for the Series L, FRCPrM for the Series M and FRCPrN for the Series N.

Additional Information and Where to Find It
In accordance with the Securities Exchange Act of 1934 (the “Exchange Act”), First Republic files annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements for the annual meeting of shareholders and other information with the Federal Deposit Insurance Corporation (“FDIC”), copies of which are available on the FDIC website at https://efr.fdic.gov/fcxweb/efr/index.html, in the Investor Relations section of our website at firstrepublic.com, or upon written or telephone request to us at First Republic Bank Investor Relations, 111 Pine Street, San Francisco, CA 94111, (415) 392-1400.

Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this document 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 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. Our actual results could differ materially from those expressed or anticipated in such forward-looking statements as a result of risks and uncertainties more fully described in the risk factors in our 2021 Annual Report on Form 10-K.

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 the COVID-19 pandemic (collectively referred to as “COVID-19” herein); 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 nontraditional 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, 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 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 the risk factors in our 2021 Annual Report on Form 10-K and any subsequent reports filed by First Republic under the Exchange Act. 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 this document and in our 2021 Annual Report on Form 10-K and our other 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.