Press Release FOR IMMEDIATE RELEASE

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FOR IMMEDIATE RELEASE

San Francisco Palo Alto Los Angeles Santa Barbara Newport Beach San Diego Portland Boston Greenwich New York 111PINE STREET, SAN FRANCISCO, CALIFORNIA 94111,TEL (415)392-1400

www.firstrepublic.com NYSE:FRC

FIRST REPUBLIC BANK REPORTS STRONG FIRST QUARTER RESULTS Record First Quarter Loan Volume

Will Initiate Cash Dividend in Second Half of 2012

San Francisco, California, April 18, 2012 – First Republic Bank (“First Republic” or the “Bank”) (NYSE: FRC) today announced financial results for the quarter ended March 31, 2012.

First Republic also announced plans to initiate a quarterly cash dividend of $0.10 per share on its common stock. Subject to declaration by First Republic’s Board of Directors, the Bank expects to commence payment during the third quarter of 2012 following the release of second quarter results.

“We are pleased to report continued high credit quality, as well as strong earnings in the first quarter of 2012,” said Jim Herbert, Chairman and Chief Executive Officer. “These results point to the ability of the franchise to deliver sustainable growth and profits, even as we have continued to make significant investments. We look forward to initiating a dividend, which reflects the strength of our business and capital position.”

Financial Highlights

- Net income was $91.8 million for the first quarter of 2012, compared to $88.8 million for last year’s first quarter. Diluted earnings per share (“EPS”) were $0.67 for the first quarter of 2012 and 2011.

- Excluding the impact of purchase accounting, net income was $68.1 million, up 25%

from last year’s first quarter. On this basis, diluted EPS were $0.49, up 20% from last year’s first quarter. ⁽¹⁾

- Asset quality remains strong; nonperforming assets were only 11 basis points of total assets.

- Loan originations were $3.2 billion, our highest first quarter ever.

- Loans outstanding were $23.9 billion at March 31, 2012, up 3% for the quarter and 23%

year over year.

- Deposits were $23.3 billion at March 31, 2012, up 4% for the quarter and 16% year over year.

- Wealth management assets were $22.1 billion at March 31, 2012, up 8% for the quarter and 17% year over year.

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(1) See non-GAAP reconciliation under section “Use of Non-GAAP Financial Measures.”

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- Net interest margin was 4.39% for the quarter, compared to 4.53% for the prior quarter and 4.76% for last year’s first quarter.

- Excluding the impact of purchase accounting, the net interest margin was 3.64% for the quarter, compared to 3.55% for both the prior quarter and last year’s first quarter. ⁽¹⁾ - The efficiency ratio was 52.5% for the first quarter of 2012, compared to 50.2% for the

prior quarter and 47.3% for last year’s first quarter.

- Excluding the impact of purchase accounting, the efficiency ratio was 59.6% for the quarter, compared to 59.9% for the prior quarter and 58.7% for last year’s first quarter.⁽¹⁾ - Book value per share increased by 16% year over year to $20.10 per share.

“In the first quarter, First Republic had meaningful contributions to earnings from across the company – private banking, business banking and wealth management,” said Katherine August- deWilde, President and Chief Operating Officer. “We continued to build our franchise by investing in people, offices and technology to support our future growth.”

Asset Quality Remains Strong

The Bank’s credit quality remains strong. At March 31, 2012, nonperforming assets were only 11 basis points of total assets. For the first quarter of 2012, annualized net charge-offs to average loans were 1 basis point.

During the first quarter of 2012, the Bank recorded a provision for loan losses of $14.9 million. The Bank’s provision for loan losses is related primarily to loans outstanding that have been originated since July 1, 2010. At March 31, 2012, the allowance related to these loans totaled

$72.3 million, or 0.58% of such loans.

Capital Strength

The Bank’s Tier 1 leverage and total risk-based capital ratios at March 31, 2012 were 9.48%

and 14.47%, respectively. These ratios include the issuance of $199.5 million of 6.70%

Noncumulative Perpetual Series A Preferred Stock and the redemption of the Series A preferred stock of First Republic Preferred Capital Corporation during the quarter. These activities resulted in a net increase in Tier 1 capital of $164 million.

The Bank continues to exceed all current regulatory guidelines for well-capitalized institutions.

Strong Book Value Growth

Book value per share was $20.10 at March 31, 2012, up 16% from a year ago.

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Continued Franchise Development Asset growth

Total assets at March 31, 2012 were $29.7 billion. During the last twelve months, loans increased $4.4 billion and investment securities increased $1.7 billion. These assets were funded primarily by deposit growth of $3.2 billion and a $2.2 billion increase in intermediate-term, fixed- rate Federal Home Loan Bank (“FHLB”) advances.

Loans outstanding were $23.9 billion at March 31, 2012, up 3% for the quarter and 23%

from a year ago.

Deposit growth strong – continued mix improvement

Total deposits were $23.3 billion at March 31, 2012, up 4% for the quarter and 16% from a year ago.

At March 31, 2012, checking and savings accounts were 85% of total deposits, compared to 72% a year ago. Such accounts increased 36% during the last twelve months from $14.5 billion to

$19.7 billion. Certificates of deposit (“CDs”) represented 15% of total deposits at March 31, 2012, a decrease from 28% a year ago.

The contractual rate paid on all deposits averaged 0.40% during the first quarter of 2012, compared to 0.50% for the fourth quarter of 2011 and 0.79% during the first quarter a year ago, with the reduction in rate coming both from an improved deposit mix and lower market rates of interest.

At March 31, 2012, 96% of deposits were core deposits (excluding CDs greater than

$250,000 and any brokered deposits).

Wealth management expands

Wealth management assets were $22.1 billion at March 31, 2012, up 8% for the quarter and 17% from a year ago. Fees earned on wealth management assets, including investment advisory, trust and brokerage fees, were up 17% in the first quarter of 2012 compared to last year’s first quarter.

The Bank offers investment management services for individuals, endowments, businesses and 401(k) plans through First Republic Investment Management. At March 31, 2012, clients had

$9.0 billion of assets under management, up 13% for the quarter and 21% from a year ago.

Client assets held at First Republic Securities Company and in money market mutual funds were $8.4 billion at March 31, 2012, up 8% for the quarter and 16% from a year ago.

The Bank also offers personal trust and custody services through First Republic Trust

Company. At March 31, 2012, First Republic Trust Company administered $4.7 billion of trust and custody assets, up 1% for the quarter and 11% from a year ago.

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Mortgage banking and servicing activity

The Bank sold $552 million of longer-term, fixed-rate home loans during the first quarter of 2012 and recorded gains of $3.8 million. By comparison, during the first quarter a year ago, the Bank recorded gains of $527,000, excluding $3.8 million of purchase accounting discounts on loans sold.

Loans serviced for investors totaled $3.7 billion at March 31, 2012, compared to $3.8 billion at March 31, 2011. Net loan servicing fees were ($1.9) million for the first quarter of 2012,

compared to ($232,000) for the first quarter a year ago, due to continued rapid loan prepayments that resulted in an increase in the amount of impairment charges on mortgage servicing rights. At March 31, 2012, the carrying value of mortgage servicing rights was $17.5 million, or 48 basis points of such loans serviced.

Earnings Summary

Strong revenue growth

Total revenues were $313.9 million for the first quarter of 2012, compared to $314.9 million for the fourth quarter of 2011 and $285.6 million for the first quarter a year ago.

Excluding the impact of purchase accounting, revenues were $267.6 million for the first quarter of 2012, compared to $220.0 million for the first quarter of 2011, a 22% increase from a year ago. On this basis, revenues were up 5% over the prior quarter. ⁽¹⁾

Net interest income grows

Net interest income was $281.3 million for the first quarter of 2012, compared to $285.5 million for the fourth quarter of 2011 and $254.5 million for the first quarter a year ago.

Net interest income excluding the impact of purchase accounting (contractual net interest income) was $235.0 million for the first quarter of 2012, compared to $193.8 million for the first quarter of 2011, up 21% from a year ago. ⁽¹⁾ The increase in contractual net interest income was primarily due to increases in the average balances of loans and investment securities and lower deposit costs.

Net interest margin

The Bank’s net interest margin was 4.39% for the first quarter of 2012, compared to 4.53%

for the fourth quarter of 2011 and 4.76% for the first quarter a year ago.

Net interest margin excluding the impact of purchase accounting (contractual net interest margin) was 3.64% for the first quarter of 2012, compared to 3.55% for the fourth quarter of 2011 and the first quarter a year ago. ⁽¹⁾

The increase in the contractual net interest margin compared to the prior quarter is due to lower average cash balances, which were invested in loans and investment securities, as well as lower deposit costs due both to market rates and a continued improvement in the deposit mix.

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The Bank took advantage of the lower interest rate environment to increase intermediate-term, fixed- rate FHLB advances by $950 million during the first quarter of 2012.

Noninterest income

Noninterest income for the first quarter of 2012 was $32.6 million, compared to $29.4

million for the fourth quarter of 2011 and $31.1 million for the first quarter a year ago. The increase compared to last year’s first quarter was primarily due to increases in investment advisory fees and income from investments in life insurance, partially offset by a decline in net loan servicing fees and a reduced benefit from purchase accounting.

Noninterest expense

Noninterest expense for the first quarter of 2012 was $164.8 million, compared to $158.0 million for the fourth quarter of 2011 and $135.0 million for the first quarter a year ago, a 22%

increase year over year. Noninterest expense has grown primarily due to an increase in personnel to support loan, deposit and wealth management growth, increased occupancy costs as the Bank continues to add offices and higher technology costs.

Efficiency ratio

The Bank’s efficiency ratio was 52.5% for the first quarter of 2012, compared to 50.2% for the fourth quarter of 2011 and 47.3% for the first quarter a year ago.

Excluding the impact of purchase accounting, the Bank’s efficiency ratio was 59.6% for the first quarter of 2012, compared to 59.9% for the fourth quarter of 2011 and 58.7% for the first quarter a year ago. ⁽¹⁾

Income tax rate

The Bank’s effective tax rate for fiscal year 2012 is expected to be 31.0%, compared to 35.7% for fiscal year 2011. This decline in the effective tax rate results from a higher level of tax- exempt securities, bank-owned life insurance, tax credit investments and tax-advantaged loans.

Conference Call Details

First Republic Bank’s first quarter 2012 earnings conference call is scheduled for April 18, 2012 at 11:00 a.m. PDT / 2:00 p.m. EDT. To listen to the live call by telephone, please dial (877) 941-1427 approximately 10 minutes prior to the start time (to allow time for registration) and use conference ID #4526386. International callers should dial (480) 629-9664. The call will also be broadcast live over the Internet and can be accessed in the Investor Relations section of First Republic's website at www.firstrepublic.com. To listen to the live webcast, please visit the site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the website. For those unable to participate in the live presentation, a replay will be available beginning April 18, 2012, at 2:00 p.m.

PDT / 5:00 p.m. EDT, through April 25, 2012, at 8:59 p.m. PDT / 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 (U.S.) and use conference ID #4526386. International callers should

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dial (858) 384-5517 and enter the same conference ID number. The Bank’s press releases are available after release on the Bank’s website at www.firstrepublic.com.

About First Republic Bank

First Republic Bank and its subsidiaries provide private banking, private business banking and private wealth management. Founded in 1985, First Republic specializes in exceptional, relationship-based service offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. First Republic offers a complete line of banking products for individuals and businesses, including deposit services, as well as residential,

commercial and personal loans. First Republic is a component of the S&P Total Market Index, the Wilshire 5000 Total Market Index^SM, the Russell 1000 ^®, Russell 3000 ^® and Russell Global indices and six Dow Jones indices. More information is available on the Bank’s website at

www.firstrepublic.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release 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 Securities Exchange Act of 1934. 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 and include statements about economic performance in our markets, growth in our loan originations and wealth

management assets, and our projected tax rate. 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. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: our ability to compete for banking and wealth management customers; earthquakes and other natural disasters in our markets; changes in interest rates; our ability to maintain high underwriting standards; economic conditions in our markets; and conditions in financial markets and economic conditions generally; regulatory restrictions on our operationsand current orfuture legislative or regulatory changes affecting the banking and investment management industries. For a discussion of these and other risks and uncertainties, see First Republic’s FDIC filings, including, but not limited to, the risk factors in First Republic’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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. 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_.

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CONSOLIDATED STATEMENT OF INCOME

Three Months Ended December 31,

(in thousands, except per share amounts) 2012 2011 2011

Interest income:

Interest on loans $ 279,674 $ 268,740 $ 288,226

Interest on investments 28,859 11,988 25,338

Interest on cash equivalents 623 1,193 1,197

Total interest income 309,156 281,921 314,761

Interest expense:

Interest on customer deposits 14,987 21,754 17,628

Interest on FHLB advances and other borrowings 12,345 5,095 11,035 Interest on subordinated notes 556 578 561

Total interest expense 27,888 27,427 29,224

Net interest income 281,268 254,494 285,537

Provision for loan losses 14,852 7,613 16,159

Net interest income after provision for loan losses 266,416 246,881 269,378 Noninterest income:

Investment advisory fees 12,699 10,656 11,897

Brokerage and investment fees 2,765 2,346 2,219

Trust fees 1,773 1,726 1,729

Foreign exchange fee income 2,421 2,095 3,298

Deposit customer fees 3,281 3,642 3,169

Loan servicing fees, net (1,904) (232) (341)

Loan and related fees 1,483 816 1,801

Gain on sale of loans 3,809 4,354 335

Income from investments in life insurance 5,371 3,730 4,785

Other income 947 1,933 510

Total noninterest income 32,645 31,066 29,402

Noninterest expense:

Salaries and related benefits 82,507 64,221 74,352

Occupancy 19,895 16,014 18,595

Information systems 16,174 12,513 16,065

Advertising and marketing 5,962 6,309 8,567

FDIC and other deposit assessments 5,400 8,700 5,552

Professional fees 4,278 4,433 4,711

Amortization of intangibles 5,288 5,917 5,444

Tax credit investments 5,250 1,604 3,680

Other expenses 20,001 15,278 21,035

Total noninterest expense 164,755 134,989 158,001

Income before provision for income taxes 134,306 142,958 140,779

Provision for income taxes 41,635 52,895 49,016

Net income before noncontrolling interests 92,671 90,063 91,763 Less: Net income from noncontrolling interests 913 1,291 1,072

First Republic Bank net income 91,758 88,772 90,691

Dividends on preferred stock 2,451 - -

Net income available to common stockholders $ 89,307 $ 88,772 $ 90,691

Basic earnings per common share $ 0.69 $ 0.69 $ 0.70

Diluted earnings per common share $ 0.67 $ 0.67 $ 0.68

Weighted average shares - basic 129,498 128,858 129,313

Weighted average shares - diluted 133,621 132,509 132,939

Three Months Ended March 31,

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CONSOLIDATED BALANCE SHEET

($ in thousands)

March 31, 2012

December 31, 2011

March 31, 2011 ASSETS

Cash and cash equivalents $ 1,429,286 $ 630,780 $ 2,269,977

Securities purchased under agreements to resell 12,973 4,890 10,000 Investment securities available-for-sale 682,835 722,280 107,903 Investment securities held-to-maturity 2,209,463 2,097,198 1,131,257

Loans:

Single family (1-4 units) 14,175,779 13,538,218 11,548,932

Home equity lines of credit 1,826,061 1,878,969 1,715,388

Commercial real estate 2,629,595 2,504,791 2,261,140

Multifamily (5+ units) 2,569,780 2,437,169 2,027,580

Single family construction 198,240 183,863 175,039

Multifamily/commercial construction 110,193 122,885 91,065

Commercial business loans 1,799,668 1,656,795 1,206,154

Other secured 192,619 169,502 157,974

Unsecured loans and lines of credit 300,038 224,069 120,271

Stock secured 79,005 103,208 34,992

Total unpaid principal balance 23,880,978 22,819,469 19,338,535

Net unaccreted discount (455,885) (493,895) (631,366)

Net deferred fees and costs 13,456 10,020 2,969 Allowance for loan losses (82,418) (68,113) (25,908)

Loans, net 23,356,131 22,267,481 18,684,230

Loans held for sale 53,184 305,881 166,771

Investments in life insurance 591,397 585,956 395,551

Tax credit investments 389,000 330,447 128,063

Prepaid expenses and other assets 695,575 548,395 381,360 Premises, equipment and leasehold improvements, net 123,439 118,365 101,932

Goodwill 24,604 24,604 24,604

Other intangible assets 129,286 134,574 151,380

Mortgage servicing rights 17,466 17,269 20,967

Other real estate owned 4,348 3,681 1,928

Total Assets $ 29,718,987 $ 27,791,801 $ 23,575,923

LIABILITIES AND EQUITY Liabilities:

Customer deposits:

Noninterest-bearing accounts $ 6,275,752 $ 6,115,571 $ 3,481,238

Interest-bearing checking accounts 3,793,085 3,675,813 2,690,088 Money Market (MM) checking accounts 3,583,467 3,139,448 3,098,728

MM savings and passbooks 6,030,096 5,520,558 5,215,000

Certificates of deposit 3,572,561 4,007,869 5,543,472

Total customer deposits 23,254,961 22,459,259 20,028,526

FHLB advances 3,050,000 2,200,000 900,000

Subordinated notes 65,032 65,711 67,717

Debt related to variable interest entity 60,030 63,259 23,050

Other liabilities 425,491 408,550 237,742

Total Liabilities 26,855,514 25,196,779 21,257,035

Equity:

First Republic Bank stockholders' equity

Preferred stock 199,525 - -

Common stock 1,302 1,294 1,289

Additional paid-in capital 2,019,194 2,020,832 1,999,569

Retained earnings 583,757 494,450 231,134

Accumulated other comprehensive income 12,895 1,186 326 Total First Republic Bank stockholders' equity 2,816,673 2,517,762 2,232,318

Noncontrolling interests 46,800 77,260 86,570

Total Equity 2,863,473 2,595,022 2,318,888

Total Liabilities and Equity $ 29,718,987 $ 27,791,801 $ 23,575,923

As of

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($ in thousands) 2012 2011 2011

Operating Information

Loans originated $ 3,156,526 $ 1,855,220 $ 3,312,813

Loans sold $ 552,050 $ 238,797 $ 52,137

Net income to average assets ⁽²⁾ 1.29% 1.55% 1.30%

Net income available to common stockholders to average common equity⁽²⁾ 13.86% 16.35% 14.49%

Efficiency ratio ⁽³⁾ 52.5% 47.3% 50.2%

Efficiency ratio (non-GAAP) ^{(3), (4)} 59.6% 58.7% 59.9%

Yields/Rates ⁽²⁾

Cash and cash equivalents 0.27% 0.23% 0.26%

Securities purchased under agreements to resell 0.09% 0.14% 0.08%

Investment securities ⁽⁵⁾ 5.65% 6.26% 5.52%

Loans ⁽⁵⁾ 4.88% 5.77% 5.31%

Total interest-earning assets 4.81% 5.27% 4.98%

Customer deposits 0.26% 0.44% 0.31%

Borrowings 1.95% 2.58% 2.06%

Total interest-bearing liabilities 0.44% 0.54% 0.47%

Net interest spread 4.37% 4.73% 4.51%

Net interest margin 4.39% 4.76% 4.53%

Net interest margin (non-GAAP) ⁽⁴⁾ 3.64% 3.55% 3.55%

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Ratios are annualized.

(5) Yield is calculated on a tax-equivalent basis.

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Efficiency ratio is the ratio of noninterest expense to the sum of net interest income and noninterest income.

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For a reconciliation of these ratios to the equivalent GAAP ratios, see "Use of Non-GAAP Financial Measures."

The following table separates our loan portfolio as of March 31, 2012 between loans acquired on July 1, 2010 and loans originated since July 1, 2010:

Loans acquired Loans originated Total loans at on July 1, since July 1, March 31,

($ in thousands) 2010 2010 2012

Single family (1-4 units) $ 6,758,871 $ 7,416,908 $ 14,175,779 Home equity lines of credit 1,219,439 606,622 1,826,061 Commercial real estate 1,627,780 1,001,815 2,629,595 Multifamily (5+ units) 1,143,302 1,426,478 2,569,780 Single family construction 41,929 156,311 198,240 Multifamily/commercial construction 18,689 91,504 110,193 Commercial business loans 544,888 1,254,780 1,799,668 Other secured 87,763 104,856 192,619 Unsecured loans and lines of credit 61,627 238,411 300,038 Stock secured 11,785 67,220 79,005 Total unpaid principal balance 11,516,073 12,364,905 23,880,978 Net unaccreted discount (455,043) (842) (455,885) Net deferred fees and costs (7,632) 21,088 13,456 Allowance for loan losses (10,164) (72,254) (82,418)

Loans, net $ 11,043,234 $ 12,312,897 $ 23,356,131

Composition of Loan Portfolio

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March 31, December 31, March 31,

Book Value

Number of shares of common stock outstanding 130,236 129,372 128,858

Book value per common share $ 20.10 $ 19.46 $ 17.32

Tangible book value per common share $ 18.91 $ 18.23 $ 15.96 Capital Ratios

Tier 1 leverage ratio 9.48% 8.81% 9.24%

Tier 1 common equity ratio ⁽⁶⁾ 12.73% 12.84% 14.16%

Tier 1 risk-based capital ratio 14.01% 13.25% 14.69%

Total risk-based capital ratio 14.47% 13.65% 14.97%

(6)Tier 1 common equity ratio represents common equity less goodwill and intangible assets divided by risk-weighted assets.

($ in millions) 2012 2011 2011

Assets Under Management ⁽⁷⁾

First Republic Investment Management $ 8,955 $ 7,940 $ 7,417 Brokerage and Investment:

Brokerage 7,777 6,806 6,528

Money Market Mutual Funds 666 1,037 776 Total Brokerage and Investment 8,443 7,843 7,304 Trust Company:

Trust 2,089 1,963 1,867

Custody 2,565 2,641 2,319

Total Trust Company 4,654 4,604 4,186 Total Wealth Management Assets 22,052 20,387 18,907 Loans serviced for investors 3,651 3,381 3,778 Total fee-based assets $ 25,703 $ 23,768 $ 22,685

(7) Assets under management are presented excluding sweep deposits.

($ in thousands) 2012 2011 2011

Asset Quality Information Nonperforming assets:

Nonaccrual loans $ 27,480 $ 26,373 $ 20,999

Other real estate owned 4,348 3,681 1,928

Total nonperforming assets $ 31,828 $ 30,054 $ 22,927

Nonperforming assets to total assets 0.11% 0.11% 0.10%

Accruing loans 90 days or more past due $ - $ - $ 1,517 Restructured performing loans $ 5,783 $ 6,674 $ 5,162

As of

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($ in thousands) 2012 2011 2011

Assets:

Cash equivalents $ 912,075 $ 2,080,705 $ 1,820,229

Securities purchased under agreements to resell 21,018 2,944 4,912

Investment securities⁽⁸⁾ 2,958,810 1,184,071 2,671,429

Loans 22,996,300 18,703,214 21,656,992

Total interest-earning assets 26,888,203 21,970,934 26,153,562

Noninterest-earning assets 1,733,236 1,293,118 1,621,175

Total Assets $ 28,621,439 $ 23,264,052 $ 27,774,737

Liabilities and Equity:

Checking $ 9,749,583 $ 6,046,086 $ 9,198,227

Money market checking and savings 9,254,760 8,169,663 8,881,723

CDs 3,759,487 5,659,053 4,502,482

Total deposits 22,763,830 19,874,802 22,582,432

FHLB advances 2,530,769 797,778 2,102,174

Subordinated notes 65,363 68,039 66,039

Debt related to variable interest entity 62,425 24,905 71,105

Total borrowings 2,658,557 890,722 2,239,318

Total interest-bearing liabilities 25,422,387 20,765,524 24,821,750 Noninterest-bearing liabilities 392,820 210,406 392,236 Equity before noncontrolling interests 2,739,693 2,201,552 2,483,491 Noncontrolling interests 66,539 86,570 77,260

Total Liabilities and Equity $ 28,621,439 $ 23,264,052 $ 27,774,737

(8) Includes FHLB stock.

Average Balance Sheet Three Months

Ended March 31,

Purchase Accounting Accretion and Amortization

The following table presents the impact of purchase accounting for the periods indicated:

($ in thousands) 2012 2011 2011

Accretion/amortization to net interest income:

Loans $ 38,153 $ 43,309 $ 48,936

Deposits 7,458 16,722 10,744

Borrowings 680 657 675

Total $ 46,291 $ 60,688 $ 60,355

Noninterest income:

Gain on sale of loans $ - $ 3,827 $ - Loan commitments 69 1,054 109

Total $ 69 $ 4,881 $ 109

Amortization to noninterest expense:

Intangible assets $ 5,288 $ 5,917 $ 5,444

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Use of Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, due to the application of purchase accounting, management uses certain non-GAAP measures and ratios that exclude the impact of these items to evaluate our

performance, including net income, earnings per share, net interest margin and the efficiency ratio.

Our net income, earnings per share, net interest margin and efficiency ratio are significantly impacted by accretion and amortization of the fair value adjustments recorded in purchase accounting. The accretion and

amortization affect our net income, earnings per share and certain operating ratios as we accrete loan discounts to interest income; accrete discounts on loan commitments to noninterest income; recognize discounts established in purchase accounting on the sale of loans, which increase gain on sale of loans; amortize premiums on liabilities such as CDs and subordinated notes to interest expense; and amortize intangible assets to noninterest expense.

We believe these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding our performance. Our management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing our current operating results and related trends, and when planning and forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the tables below, we have provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios used in this press release, or a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated:

Non-GAAP earnings

Net income $ 91,758 $ 88,772 $ 90,691

Accretion / amortization added to net interest income (46,291) (60,688) (60,355) Discounts recognized in gain on sale of loans - (3,827) - Accretion added to noninterest income (69) (1,054) (109) Amortization of intangible assets 5,288 5,917 5,444 Add back tax impact of the above items 17,456 25,352 23,384 Non-GAAP net income 68,142 54,472 59,055 Dividends on preferred stock 2,451 - - Non-GAAP net income available to common stockholders $ 65,691 $ 54,472 $ 59,055 GAAP earnings per common share - diluted $ 0.67 $ 0.67 $ 0.68 Impact of purchase accounting, net of tax (0.18) (0.26) (0.24) Non-GAAP earnings per common share - diluted $ 0.49 $ 0.41 $ 0.44 Weighted average diluted common shares outstanding 133,621 132,509 132,939

(13)

# # # # # #

($ in thousands) 2012 2011 2011

Net interest margin

Net interest income $ 281,268 $ 254,494 $ 285,537

Add: Tax-equivalent adjustment 15,043 7,365 13,231 Net interest income (tax-equivalent basis) 296,311 261,859 298,768 Less: Accretion / amortization (46,291) (60,688) (60,355) Non-GAAP net interest income (tax-equivalent basis) $ 250,020 $ 201,171 $ 238,413 Average interest-earning assets $ 26,888,203 $ 21,970,934 $ 26,153,562 Add: Average unamortized loan discounts 481,015 662,898 528,104 Adjusted average interest-earning assets $ 27,369,218 $ 22,633,832 $ 26,681,666

Net interest margin – reported 4.39% 4.76% 4.53%

Adjusted net interest margin (non-GAAP) 3.64% 3.55% 3.55%

($ in thousands) 2012 2011 2011

Efficiency ratio

Net interest income $ 281,268 $ 254,494 $ 285,537

Less: Accretion / amortization (46,291) (60,688) (60,355) Adjusted net interest income (non-GAAP) $ 234,977 $ 193,806 $ 225,182

Noninterest income $ 32,645 $ 31,066 $ 29,402

Less: Accretion of discounts on loan commitments (69) (1,054) (109) Discounts recognized in gain on sale of loans - (3,827) - Adjusted noninterest income (non-GAAP) $ 32,576 $ 26,185 $ 29,293

Total revenue $ 313,913 $ 285,560 $ 314,939

Total revenue (non-GAAP) $ 267,553 $ 219,991 $ 254,475

Noninterest expense $ 164,755 $ 134,989 $ 158,001

Less: Intangible amortization (5,288) (5,917) (5,444) Adjusted noninterest expense (non-GAAP) $ 159,467 $ 129,072 $ 152,557

Efficiency ratio 52.5% 47.3% 50.2%

Efficiency ratio (non-GAAP) 59.6% 58.7% 59.9%

Investor Contact: Media Contact:

Andrew Greenebaum / Lasse Glassen Greg Berardi

Addo Communications Blue Marlin Partners

[email protected] [email protected]

[email protected] (415) 239-7826

(310) 829-5400