California Republic Bancorp Announces Second-Quarter 2013 Record Assets of $737 Million with Record

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California Republic Bancorp Announces Second-Quarter 2013 Record Assets of $737 Million with Record Net Interest Margin of 6.41% and Net Income of $2.8 Million

IRVINE, Calif.--(BUSINESS WIRE)-- California Republic Bancorp (OTCBB: CRPB), holding company for California Republic Bank, announced its results for the second-quarter 2013, reporting quarterly net income of $2.8 million, record net interest margin of 6.41%, record assets of $737.1 million and record deposits of $669.7 million.

CEO Jon Wilcox stated, "In the second-quarter we not only experienced strong deposit and loan growth, but also continued to invest in our people and infrastructure both in California as well as nationally, while increasing our bottom line and maintaining solid credit quality."

President John DeCero explained, "In the second-quarter we achieved several milestones both in commercial banking as well as our indirect auto finance division, CRB Auto. In auto finance, we became fully operational in our Las Vegas customer service center, we built out and opened our Dealer Service Center in Dallas and continued our expansion throughout Texas. We also successfully completed another prime automobile securitization of $238 million. In commercial banking, we achieved record non-interest bearing demand deposit and loan growth, continued to have no non-performing assets since inception, and bank wide achieved pre-tax profits of over $5 million for the quarter."

Second-Quarter 2013 Results:

At June 30, 2013, California Republic Bank reported total assets of $737.1 million, an increase of $255.0 million, or 52.9% above total assets as of June 30, 2012. The year-over-year increase in total assets reflects continued strong core checking account growth with non-interest bearing demand deposits reaching a record $373.7 million compared with $193.5 million at the end of the second-quarter of 2012, an increase of $180.2 million, or 93.1%. The non-interest bearing accounts represent 55.8% of total deposits as of June 30, 2013. Total deposits grew to a record $669.7 million, compared to $431.8 million for the second-quarter of 2012, an increase of $237.9 million or 55.1%.

Of the Bank's $392.4 million total loans outstanding at quarter-end, commercial banking loans represented a record $329.7 million, and the owned indirect auto loan portfolio represented $62.7 million, compared with total loans outstanding of $424.6 million at the end of the second-quarter of 2012, a decrease of $32.2 million, or 7.6%. The decrease was due to the securitization of $238 million of the Bank's owned indirect auto loan portfolio completed on June 20, 2013, which reduced the Bank's loans outstanding by that same amount. Indirect auto originations for the second-quarter grew to a record $126.2 million compared to $66.9 million in the second-quarter of 2012, an increase of $59.3 million or 88.6%. Additionally, the Bank stated that its sold, servicing-retained indirect auto loan portfolio has grown to $378.0 million at quarter-end. The Bank has previously stated that it earns a 1% fee for the servicing of its securitized auto loan portfolio.

California Republic Bancorp continued to report strong credit quality throughout the second-quarter, with no non-performing or charged-off loans within the commercial banking portfolio, and net annualized charge-offs of 0.12% within the owned indirect auto portfolio.

Total interest income grew in the second-quarter of 2013 to $8.3 million; a $2.2 million or 36.2% increase over total interest income for the same period of 2012. Second-quarter net interest margin also grew to a record 6.41%, compared with a net interest margin of 5.54% for the same period of 2012. Pre-tax income for the quarter was $5.2 million for the Bank and $4.9 million for the Bancorp. Net income for the quarter was $3.0 million for the Bank and $2.8 million for the Bancorp, compared with net income of $1.1 million for the Bank and $1.0 million for the Bancorp for the second-quarter of 2012. Year-to-date net income for the Bank was $3.2 million and $2.9 million for the Bancorp. The majority of the difference in net income from the Bank to the Bancorp is due to 123-R non-cash expense relating to the amortization of stock options reported at the holding company level.

At June 30, 2013, California Republic Bank reported a Tier-1 leverage capital ratio of 8.5%, a Tier-1 risk based capital ratio of 13.9% and a total risk based capital ratio of 15.1%, well in excess of the 5%, 6% and 10%, respectively, needed to be considered "well-capitalized" by the Bank's regulatory agencies.

About California Republic Bancorp:

California Republic Bancorp is the holding company for California Republic Bank. California Republic Bank is a full-service Bank providing loans, deposit and cash management products and services to businesses, investors and professionals. The Bank offers its clients direct access to decision makers, unparalleled responsiveness, and seasoned Relationship Managers who handle all aspects of a client's needs. The Bank operates four full-service branches located in Newport Beach, Beverly Hills, Irvine and Westlake Village. The Bank also operates an indirect auto finance division, CRB Auto, which purchases auto contracts from both franchised and independent automobile dealerships throughout California, Arizona and Texas.

For more information, contact Jon Wilcox, CEO, or John DeCero, President, at 949-270-9719 in Orange County, at 424-230-5400 in Los Angeles, or at 805-496-9010 in Ventura County. You can also visit the Company's website at California Republic Bancorp's headquarters is located at 18400 Von Karman Avenue, Suite 1100, Irvine, CA 92612.

California Republic Bancorp's Board of Directors includes:

  • Inside Directors: Jon Wilcox, CEO and John DeCero, President.
  • Outside Directors: Robert Barth, Chairman of the Board of California Republic Bank and CEO of Black Equities Group Ltd.; John Bendheim, President of Bendheim Enterprises, Inc.; Marc Brutten, Entrepreneur and CEO of Westcore Holdings; Bob Din, CEO of En Pointe Technologies; John Hagestad, Managing Partner of SARES-REGIS Group; Warren S. Orlando, Chairman, 1st United Bancorp Inc.; and J. Scott Watt, President and CEO of the Watt Group of Companies.

For information regarding the purchase or sale of California Republic Bancorp's stock, contact Michael Natzic of Crowell, Weedon & Co. at 800-288-2811.

Forward-looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by the act. These forward-looking statements refer to California Republic's current expectations regarding future operating results, and growth in loans, deposits, and assets. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to (1) the impact of changes in interest rates, a decline in economic conditions and increased competition by financial service providers on California Republic's results of operations; (2) California Republic's ability to continue its internal growth rate; (3) California Republic's ability to build net interest spread; (4) the quality of California Republic's earning assets; (5) changes in the level of non-performing assets and charge-offs; (6) the effect of changes in laws and regulations with which California Republic must comply; (7) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory authorities and accounting requirements; (8) acts of war or terrorism or natural disasters; (9) the timely development of new banking products and services; (10) the success of products and services, such as the indirect auto loan business; (11) technological changes; (12) cyber-security threats, including loss of system functionality or theft or loss of data; (13) the ability to increase market share and control expenses; (14) changes in California Republic's organization, management, and compensation; and (15) California Republic's success at managing the risks involved in the foregoing items.

California Republic does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law.

Balance Sheets and Income Statements for the Three Months Ended June 30, 2013, March 31, 2013 and June 30 2012
Dollars in Thousands
  June 30, 2013   March 31, 2013   June 30, 2012
    Unaudited   Unaudited   Unaudited
Balance Sheet - At Period End
Cash and Due From Banks $ 333,817 $ 136,115 $ 33,841
Due From Banks - Interest Bearing 2,263 2,263 19,282
Federal Funds Sold - - -
Investment Securities - 604 622
Loans Held to Maturity 392,428 502,371 424,632
Allowance for Loan and Lease Losses (4,931 ) (5,208 ) (6,576 )
Premises and Fixed Assets 2,697 2,687 1,128
Other Assets     10,846       14,067       9,286  
Total Assets     737,120       652,899       482,215  
Non-Interest-Bearing Deposits 373,624 294,282 193,436
Interest-Bearing Deposits 295,984 299,262 238,356
Other Liabilities 8,550 3,655 1,932
Shareholders' Equity     58,962       55,700       48,491  
Total Liabilities & Equity   $ 737,120     $ 652,899     $ 482,215  
Income Statement            
Interest Income $ 8,338 $ 6,776 $ 6,115
Interest Expense     589       559       440  
Net Interest Income 7,749 6,217 5,675
Provision for Loan and Lease Loss    



    127       898  
Net Interest Income After Provision 7,824 6,090 4,777
Gain on Sale of Loans 4,345 - -
Non-Interest Income 735 492 310
Non-Interest Expense     8,009       6,366       4,100  
Pre-tax Income     4,895       216       987  
Income Tax Expense     2,072       134       -  
Net Income   $ 2,823     $ 82     $ 987  

California Republic Bancorp
John DeCero, President

KEYWORDS:   United States  North America  California


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