We are also pleased to report that during 2006:

• We substantially increased our Wealth Management operation by hiring a meaningful number of seasoned investment professionals and through the opening of investment management offices in Portland and Seattle.
• We expanded our East Coast presence, opening an office in Greenwich, Connecticut, and opening a full-service private banking and wealth management operation in Boston. Both did exceedingly well during their first year of operation as we attracted many new clients and expanded relationships with many existing clients.
• We completed our first bank merger, acquiring the Bank of Walnut Creek with its seven well-located offices. This enabled us to meet our strategic goal of expanding our office presence into San Francisco's East Bay and San Jose.
• We experienced record volume in our brokerage company, First Republic Securities, and in our trust company, First Republic Trust, reflecting well-coordinated team efforts and expansion of services.
• We recorded exceptional growth in Private Business Banking. This was due, in part, to the continued growth of our Eagle One loan product and an expanded cash management offering, including new Online Corporate banking, remote deposit capabilities, and a very attractive account analysis.