In addition, some of the financial informations discussed in this call includes non-GAAP financial measures. The Bank’s earnings release which was issued this morning and is available on the Bank’s website present reconciliations to the appropriate GAAP measures and explains why the Bank believes such measures are useful to investors.And now, I’d like to turn the call over to Jim Herbert. Jim Herbert – Chairman and Chief Executive Officer Thank you, Dianne and thanks everybody for joining our call today. First Republic had a very successful third quarter. We continue to build our franchise and attract new households even in these rather uncertain times. We are at or ahead of our expectations in most aspects of our business. It was, for instance, an extremely strong loan origination quarter, in fact, our second best that we’ve ever had. And our deposits continue to grow quite strongly from all sources. The credit quality of the loan portfolio remains very good. Non-performing assets are less than 1/8 th of 1%. We also took advantage of the lower rates during the quarter and drew some FHLB fixed rate term advances. We will speak more about this in a moment. For earnings, the key measure that we pay attention to, this is excluding all purchase accounting and other one-time items was $0.42, up 20% year-over-year. Let me take the second to summarize the last 12 months very briefly. Our loans have increased by 16%. Deposits have increased by 15%. On the Private Wealth Management side, total assets have increased by 14%. Quite importantly, the book value of the enterprise has grown by 20%. So far this year, our loan originations have totaled $6.9 billion. We are particularly pleased with the progress we are making in business banking which Katherine will speak more to in a moment.
The model for First Republic remains quite simple and quite differentiated. We offer very customized personal service, private banking, private business banking, private wealth management. We have a single point-of-contact for all banking and wealth management. We are focused on a limited number of urban, coastal, supply constraint markets. Our earnings come from extremely well-established balance sheet and ongoing business representing a strong client base. We have always and we continue to run a very matchbook, assets and liabilities.Importantly, we are quite pleased with our consistent core efficiency ratio with this quarter around 58.8%. Importantly, on the deposit side for instance, checking and savings increased $2 billion during this last quarter while we continue to strength our CDs. CDs now represent just 22% of total deposits. This is down from 32% a year ago. This overall mix change is lowering our cost to funds. In a more macro sense, we have a very unusual opportunity at this time to track both individual and business clients as the result of some of the dislocations happening in the banking market in general. In short, First Republic represents unique almost one of a kind private bank operating bicoastally. Now, let me turn this call over to Katherine August -deWilde, our President and Chief Operating Officer. Katherine August-deWilde – President and Chief Operating Officer Thank you, Jim. We are quite pleased with our third quarter. Loans are now $21.5 billion, up 16% in the last 12 months. Loans outstanding increased 6% this quarter or $1.1 billion. Significantly, loan originations year-to-date were $6.9 billion and for this quarter it were $2.6 billion, which was our second best quarter ever. The origination volume reflects the strong pipeline that I mentioned on last quarter’s earnings call. Currently, our loan pipeline is at its highest level ever. Deposit trends are positive across all three of our deposit gathering channels. Preferred banking deposits have grown 26% year-over-year, wealth management deposits including our sweep accounts have increased more than 70% year-over-year to $2 billion. Read the rest of this transcript for free on seekingalpha.com