California Republic Bancorp Announces Record 3rd Quarter 2012 Results with Net Income of $1.91 Milli

California Republic Bancorp Announces Record 3rd Quarter 2012 Results with Net Income of $1.91 Million, and Total Assets of $585.5 Million

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- California Republic Bancorp (OTCBB: CRPB), holding company for California Republic Bank, announced its results for the third quarter of 2012, reporting quarterly net income of $1.91 million, and record growth in all major categories including assets, loans and deposits.

CEO Jon Wilcox stated, "During the quarter we were very pleased with our continued loan growth, and our ability to respond to that growth from a liquidity standpoint by generating over $100 million of new core deposits. We understand the importance of paying attention to both sides of the balance sheet and continue to execute our plan accordingly."

President John DeCero added, "Our credit discipline is at the heart of everything we do, as is our commitment to generating strong yielding assets funded by low cost core demand deposits. Our attention to and execution of this strategy has translated into rising net interest margins and quarterly profits."

3rd Quarter 2012 Results:

At September 30, 2012, California Republic reported total assets of $585.5 million, an increase of $215.4 million, or 58.29% above total assets as of September 30, 2011. The year-over-year growth in total assets reflects continued core deposit growth with record total deposits of $532.9 million, a $212.1 million, or 66.1% increase from the third quarter of 2011, and a $101.1 million increase from last quarter. Non-interest-bearing demand deposit accounts grew to $228.4 million compared with $121.1 million at the end of the third quarter of 2011, an increase of $107.3 million, or 88.6%. Total loans outstanding increased to a record $487.5 million, representing a $254.3 million, or 109.1% increase over the third quarter of 2011. Of the Bank's total loans outstanding, commercial banking and commercial real estate loans outstanding represented $290.7 million and the indirect auto loan portfolio represented $196.8 million. California Republic continued to report strong credit quality through the third quarter, with no non-performing or charged-off loans within the commercial bank portfolio and 12 basis points of charge-offs for the auto portfolio.

Total interest income improved in the third quarter of 2012 to $7.4 million, a $4.3 million or 138.7% increase over total interest income for the same period of 2011. Third quarter net interest margin also improved to 5.90%, compared with a net interest margin of 3.54% for the same period of 2011. Net income for the quarter improved to $1.91 million, compared with a net loss of $(412) thousand for the third quarter of 2011. Year-to-date net income was $2.58 million compared with a year-to-date net loss of $(591) thousand for the nine months ended September 30, 2011.

At September 30, 2012, California Republic Bank reported a Tier-1 leverage capital ratio of 9.27%, a Tier-1 risk based capital ratio of 9.80% and a total risk based capital ratio of 11.05%, well in excess of the 5%, 6% and 10%, respectively, needed to be considered "well-capitalized" by California Republic Bank's regulatory agencies.

California Republic Bank stated, consistent with maximizing shareholder value and meeting its regulatory capital requirements, that it may sell up to a significant portion of its auto loans from time to time, either through servicing retained securitizations or whole loan sales, as market conditions permit.

About California Republic Bancorp:

California Republic Bancorp is the holding company for California Republic Bank. California Republic Bank provides loans, deposit and cash management services to individuals, companies, and their owners throughout Southern California. The Bank offers direct access to executive management and unparalleled responsiveness with the goal of establishing long-term relationships. The Bank operates three full-service regional branch hubs based in Newport Beach, Beverly Hills and Westlake Village.

The Bank also has an indirect auto finance division based in Irvine, which purchases auto contracts from both franchised and independent automobile dealerships, to which it also has long-term relationships.

For more information, contact Jon Wilcox, CEO, or John DeCero, President, at 949-270-9700 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 1400 Newport Center Drive, Suite 150, Newport Beach, California 92660. California Republic Bank's Beverly Hills branch is located at 100 North Crescent Drive, Suite 125, Beverly Hills, California 90210. California Republic Bank's Westlake Village branch is located at 875 S. Westlake Blvd., Suite 101, Westlake Village, CA 91361.

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.

Financial Highlights (Unaudited)
Dollars in Thousands        
September 30,June 30,
 2012  2011  2012 
Balance Sheet - At Period End
Cash and Due From Banks$87,386$82,141$33,841
Due From Banks - Interest Bearing4,33351,60819,282
Federal Funds Sold---
Investment Securities615639622
Loans Held to Maturity487,466233,157424,632
Allowance for Loan and Lease Losses(6,840)(3,638)(6,576)
Premises and Fixed Assets1,4731,0731,128
Other Assets 11,105  5,155  9,286 
Total Assets 585,538  370,135  482,215 
Non-Interest-Bearing Deposits228,381121,064193,436
Interest-Bearing Deposits 304,534  199,691  238,356 
Total Deposits 532,915  320,755  431,792 
Other Liabilities2,2551,0561,932
Shareholders' Equity 50,368  48,324  48,491 
Total Liabilities & Equity$585,538 $370,135 $482,215 
For the Quarter EndedSeptember 30,June 30,
 2012  2011  2012 
Income Statement
Interest Income$7,435$3,131$6,115
Interest Expense$538 $364 $440 
Net Interest Income$6,897$2,767$5,675
Provision for Loan and Lease Loss$370 $290 $898 
Net Interest Income After Provision$6,527$2,477$4,777
Non-Interest Income$66$57$310
Non-Interest Expense$4,685 $2,946 $4,100 
Net Income$1,908   -$412  $987 
Year-to-DateSeptember 30,
 2012  2011 
Income Statement
Interest Income$18,367$8,791
Interest Expense 1,378  1,003 
Net Interest Income16,9897,788
Provision for Loan and Lease Loss 2,203  855 
Net Interest Income After Provision14,7866,933
Non-Interest Income454189
Non-Interest Expense 12,665   7,713 
Net Income$2,575   -$591 

California Republic Bank
John DeCero, President, 949-270-9797

KEYWORDS:   United States  North America  California


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