Dear Clients and Shareholders

In 1985, we founded First Republic Bank on the assumption that a truly differentiated culture devoted to exceptional client service would result in a very successful banking business. This has proven to be true.

We have, since our founding, been guided entirely by the assumption that if we take great care of our colleagues, our clients and our communities, we will have a sustainable business that consistently delivers strong value for our shareholders. Our strong, organic growth and results are the outcome of this focused, long-term approach.

First Republic has grown organically from our initial $8.8 million de novo capitalization in 1985 to the nation’s 17th-largest bank by deposits at the end of 2019. Our straightforward business model has performed very well for three-and-a-half decades through varying economic and geopolitical conditions, resulting in consistent profitability every year since inception.

The conditions we face now, however, are quite unusual. With a global pandemic, and the resulting market volatility and economic uncertainty, we are cautious about the year ahead. While these are uncertain times, our focus on care — for our colleagues, clients and communities — alongside safety and stability remains the same. This focus has supported our consistent profitability, stable results and uninterrupted client service since 1985, and it will continue to do so today.

Simple Business Model and Structure

Our simple corporate structure is reflective of our equally straightforward business model. We have no holding company, operate a limited number of preferred banking offices, and remain focused on our core banking and wealth management offerings. In short, our structure is simple, safe and aligned with our clients’ needs.

The Power of a Client Service Culture

We continue to focus on providing extraordinary client service, which we measure continually using the Net Promoter Score. Our most recent Bank-wide Net Promoter Score remains more than double that of the U.S. banking industry and is even above most luxury service brands. Extraordinary service leads to expanded client relationships, low client attrition and strong referrals from these stable and very satisfied clients. This immensely powerful compounding effect has always been the source of our safe, organic growth.

Leadership Depth and Breadth

We have been founder-led since 1985 with a deeply experienced leadership team. Our stable and diverse senior team, with deep expertise in our markets, business model, clients and, most importantly, our culture, has an average age of 50 and an average First Republic tenure of 16 years, excluding our Founder, Chairman and CEO.

Empowered and Engaged Colleagues

First Republic has evolved into an exceptionally strong brand propelled by the passion, loyalty and referrals of our satisfied clients. This client satisfaction and our overall success are directly attributable to our hardworking, empowered and committed colleagues and a culture fully focused on the daily execution of high-touch client service at every level.

First Republic is committed to taking excellent care of our people, providing continual professional development and career growth opportunities, competitive compensation and comprehensive benefits. Among the many benefits offered to our colleagues, over 40% of our workforce participate in our Student Loan PayDown and College SaveUp benefits, 50% participate in our discounted employee stock purchase program and 98% participate in our 401(k) matching program. Our Bank-wide minimum wage has been $25 per hour since 2018.

Dollars in billions

Financial Highlights 2014–2019

December 31, 2014 2015 2016 2017 2018 2019
Total Bank Assets $ 48.4 $ 59.0 $ 73.3 $ 87.8 $ 99.2 $ 116.3
Total Loans $ 37.8 $ 44.1 $ 52.0 $ 62.8 $ 75.9 $ 90.8
Total Deposits $ 37.1 $ 47.9 $ 58.6 $ 68.9 $ 79.1 $ 90.1
Total Tier 1 Capital $ 4.6 $ 5.5 $ 6.6 $ 7.5 $ 8.3 $ 9.5
Wealth Management Assets $ 53.4 $ 72.3 $ 83.6 $ 107.0 $ 126.2 $ 151.0
Net Income (in millions) $ 487.0 $ 522.1 $ 673.4 $ 757.7 $ 853.8 $ 930.3
Preferred Banking Offices 68 68 69 70 75 78

Franchise Growth 2014–2019


$ 37.8 B
$ 90.8 B


$ 37.1 B
$ 90.1 B

Tier 1 Capital

$ 4.6 B
$ 9.5 B

Wealth MGMT Assets

$ 53.4 B
$ 151.0 B
The real strength of First Republic Bancorp, in addition to its capital resources, lies in the caliber and experience of its people.”
First Republic Bancorp 1985 Annual Report

Inclusive Culture and Diverse Workforce

First Republic has always been and remains committed to fostering an inclusive workplace culture that embraces and encourages diverse perspectives and backgrounds. Our workforce is 48% minority and 47% female, and speaks over 50 languages. First Republic’s diversity is long-standing and extends across all levels of the organization, with a senior management team composed of 46% female leaders and a Board of Directors with 40% female members. This inclusive and empowered culture is a significant component of our success.

Strong and Growing Capital

As part of our commitment to remain well capitalized, we successfully accessed the capital markets twice during late 2019 and early 2020. We raised over $670 million of net new Tier 1 capital, while reducing the cost of our preferred capital and accreting tangible book value per share.

We firmly believe in anticipating and supporting our growth with strong capital. We look to stay well-capitalized at all times and in anticipation of unexpected changes in the environment. Given current conditions, this approach to maintaining our strength and stability is proving even more valuable.

We do not engage in stock buybacks. Quarterly cash dividends have been paid consistently since 2012, and we have increased dividends each year for the past seven years in a row.

Consistent Profitability and Shareholder Value Creation

Results in 2019, and over the last five years, have been strong. Revenues have grown 15% per annum and tangible book value per share has grown 14% per annum.


  • Consistent, Founder-Led Leadership Team
  • Stable Client Relationships
  • Sustainable, Organic Expansion

Shareholder Value

  • Enterprise Value 08/1986: $23 Million (Initial IPO)
  • Enterprise Value 12/2019: $19.8 Billion
  • Enterprise Value Growth Since 1986: 22% Per Annum

Compound Annual Growth Rate 2014–2019


$ 1.65 B
$ 3.34 B
CAGR computed over 5 years since December 31, 2014

Tangible book value per share

$ 26.56
$ 50.24
CAGR computed over 5 years since December 31, 2014

Exceptional Credit Quality

Credit of the highest quality has always been a core First Republic focus and remains so, with only $4.6 million in loan losses during 2019, or less than one basis point of average loans. Non-performing assets were only 12 basis points of total assets at year-end. As we look to a more challenging economic landscape in 2020, our strong credit quality is a fundamental aspect of First Republic’s safety and stability.

2019 Results

This year was the most successful yet for First Republic. Bank assets totaled $116.3 billion, with another $151.0 billion of wealth management assets. Total earnings, up 9.0%, grew nicely, total regulatory capital increased by 13.1%, tangible book value per share increased by 11.0% and credit quality remains excellent.

Loan originations totaled $38.0 billion — our best year ever. Growth in loans outstanding was 19.7%.

Deposits were up 14.0% compared to a year ago. Checking remains a strong 59% of total deposits at year-end. Successful deposit growth was generated across all of our channels — private banking, banking offices, business banking and wealth management.

Business Banking

Business Banking had a very good year. Both business loans and deposits grew nicely. At year-end, business loans outstanding totaled $11.6 billion, up 5.9% year-over-year, and represented 13% of total loans. Business deposits grew by 15.0% year-over-year and represented 56% of total deposits at year-end.

Shareholder Value and Tangible Book Value per Share

Performance Since Second IPO 12/08/10–12/31/19

Stock Price


Tangible Book Value Per Share

Shareholder Value Graph $0$ 10$20$30$40$50$60$70$80$90$ 100$ 110$ 12012/31/19 $117.45/share12/31/19 $50.24/shareIPO #2 12/08/10 $25.50/shareIPO #2 12/08/10 $14.07/shareFRC Stock PriceTangible Book Value Per Share12/08/1012/31/1112/31/1212/31/1312/31/1412/31/1512/31/1612/31/1712/31/1812/31/19

Chart period of 9 years

Private Wealth Management

As we continue to build out First Republic’s open architecture platform, Private Wealth Management had another strong year, with total wealth management assets up 19.7% to $151.0 billion. Additionally, we transacted over $43 billion of foreign exchange, up 29% from 2018, and placed $1.3 billion in face value of insurance on behalf of our clients in 2019. Total insurance coverage in place is now $4.9 billion, an increase of 35% from 2018. Fee revenues from wealth management were up 8.5% and represented 14.1% of total revenues during 2019.

Next-Generation Strategy

Our very successful next-generation client strategy, led by our Student Loan Refinancing and Professional Loan programs, grew our younger borrowing client households by over 34% during 2019. This approach continues First Republic’s long-standing strategy of “getting trial” and extends it to attracting client households even earlier. Millennial households now represent over 39% of First Republic’s total consumer borrowing households compared to only 21% three years ago. This continuing strong trend has transformational implications for First Republic.

Client Household Growth

Total consumer client household growth was strong in 2019, up 13%. For comparison, during the 2010–2014 period, our new consumer household growth rate was 4% per year, and during the 2015–2019 period, it was 14% per year. This rapid and sustained pace of household acquisition provides First Republic with an expanding consumer client base, which continues to drive our growth.

Franchise Investments

We continue to make significant investments in the franchise, including enhancing our regulatory and risk management infrastructure, constantly upgrading our cybersecurity measures, undertaking a core system conversion, implementing numerous process improvements and further enhancing our workplace environment. We continually invest in the digital banking applications and investment management capabilities provided to our clients.

Community Investments

We are committed to supporting our communities through lending, investing and volunteering, with a focus on affordable housing, financial literacy and education. In February 2020, we were proud to announce a $100 million, multiyear commitment to the San Francisco Housing Accelerator Fund — a collaborative effort dedicated to the preservation, protection and production of affordable housing for San Francisco Bay Area residents. In March 2020, we were honored to be the recipient of the Foreign Policy Association’s 2020 Corporate Social Responsibility Award.

Throughout 2019, we saw excellent growth in our programs dedicated to helping our local communities prosper. The guidance of our Community Advisory Board continues to enhance our already strong Fair Lending and Community Reinvestment Act programs. Our Eagle Community Loan program continues to help more individuals in historically underserved communities become homeowners. Volunteer hours through our Eagle Cares program, which provides two paid service days each year to colleagues, have increased 136% since 2017 to over 20,000 hours during 2019.

Thomas J. Barrack, Jr.

We would like to express our sincere appreciation to Tom Barrack, who is stepping down from our Board of Directors after years of dedicated and exceptional service as a board member since 2001. Tom and Colony Capital’s timely commitment and strong leadership played a crucial role in enabling First Republic to reestablish itself as an independent institution in 2010 via a management-led buyout. Tom’s very wise counsel and guidance as a director will be dearly missed — however, we are grateful that he remains a great friend and supporter of First Republic.


2019 produced our strongest results yet. Our steady growth comes directly from providing extraordinary service to satisfied clients who grow with us, continually do more business with us and actively refer their friends. This model, combined with our simple operating structure and conservative risk management, has allowed us to provide stable, positive results through a wide range of economic and political conditions over the past 34 years.

Without our clients, colleagues, communities and shareholders, First Republic would not succeed. We truly thank each of you for your continued business, exceptional dedication and hard work, and ongoing support.

It’s a privilege to serve you,


James H. Herbert, II

Founder, Chairman and

Chief Executive Officer


Hafize Gaye Erkan



Jason C. Bender

Chief Operating Officer


Michael J. Roffler

Chief Financial Officer


Michael D. Selfridge

Chief Banking Officer


David B. Lichtman

Chief Credit Officer


Mollie M. Richardson

Chief Administrative and People Officer


Robert L. Thornton

President, Private Wealth Management