The Bank’s deposit growth was strong as well by mid-decade. Though the Preferred Banking division was not fully developed until the late 1990s, by 2005 Preferred Banking deposits totaled $3.6 billion, or 52 percent of all deposits, representing 22 percent growth over the previous year. 1
The growth in deposits generated by both the Preferred Banking division and the Preferred Banking Office network came as no surprise to First Republic Bank’s leadership. “Satisfied clients are the best generators of new clients and additional new deposits,” Herbert said. 2 “We live and have lived for years on word-of-mouth marketing. It is the single most potent force to build an enterprise. Clients have been bringing their friends to us with increasing regularity and often take great pleasure in sharing this secret with their friends.” 3
