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The year ending December 31, 2005 was a very successful one for First Republic Bank. All areas of our business—Private Banking, Wealth Management, Trust and Brokerage—showed increased assets under management and substantially enlarged client bases.

Consistency of Service

Our philosophy remains consistent, year in and year out, to provide the very finest client service available coupled with competitive products. The brand and franchise of First Republic are embodied in this commitment to extraordinary service. Such service promotes client stability and favorable word-of-mouth referrals which, in turn, lead to expansion of our franchise.

During 2005, our assets grew 26% to $9.3 billion; our deposits grew 25% to $7.0 billion; and earnings grew 27% to $54 million. Such strong rates of expansion, without merger or acquisition, reflect a very high level of client satisfaction and referrals.

The world of private banking is wide ranging and expanding. First Republic does not seek to be the largest financial institution in this category, nor do we seek to be all things to all people. We do expect to be the very best for the clients we serve in our geographic regions and we will continually strive to "raise the bar" on product and service delivery to ensure that expectations are exceeded and new, higher standards are consistently set.

Our wealth management offerings expanded during2005. Importantly, we now offer financial consulting and asset allocation analysis in conjunction with a new open architecture investment platform-"Portico." This new product is being well received by our clients and we look forward to expanding its application widely during 2006.