California Republic Bancorp Announces Record First Quarter Total Assets of $653 Million, Record Depo

California Republic Bancorp Announces Record First Quarter Total Assets of $653 Million, Record Deposits of $594 Million and Continued Geographic Expansion

IRVINE, Calif.--(BUSINESS WIRE)-- California Republic Bancorp (OTCBB:CRPB), holding company for California Republic Bank, announced its first quarter of 2013 results, reporting another quarter of record growth in total assets and deposits, and that it commenced the national expansion of its indirect auto finance group.

CEO Jon Wilcox stated, "In 2012, we achieved record growth and net income, but it was truly a year of building infrastructure and a foundation for the future. We are now expanding our proven model of a successful commercial core deposit franchise, complemented by a consistent and predictable asset generator in auto finance."

President John DeCero commented, "We are pleased with our growth in the first quarter. Our auto originations have been enhanced by our recent expansion into Arizona and Texas. These are markets that we know well, have similar characteristics to California, and provide geographic diversification in our auto loan portfolio. Our credit quality continues to be within plan with no loan losses in commercial banking and 22 basis points of annualized net charge offs in auto finance. Core non-interest bearing deposit growth has continued to build significant liquidity on our balance sheet."

First Quarter 2013 Results:

At March 31, 2013, California Republic Bancorp reported total assets of $653.0 million, an increase of $217.1 million, or 49.8% above total assets as of March 31, 2012. The year-over-year growth in total assets reflects continued core deposit growth with total deposits of $593.5 million, a $206.3 million, or 53.3% increase from the first quarter of 2012. Non-interest-bearing demand deposit accounts grew to $294.3 million compared with $157.5 million at the end of the first quarter of 2012, an increase of $136.8 million, or 86.9%. Total loans outstanding increased to a record $502.4 million, representing a $159.9 million, or 46.7% increase over the first quarter of 2012. Of the Bank's total loans outstanding, commercial banking and commercial real estate loans represented $308.9 million and the owned indirect auto loan portfolio represented $193.5 million. The total sold, servicing retained indirect auto loan portfolio represented $161.4 million at quarter end. Indirect auto loan originations for the first quarter were $115.3 million compared to $50.4 million in the first quarter of 2012, an increase of $64.9 million or 128.8%, with originations continuing to increase each month. The Bank's stated strategy is to sell a portion of its auto loans from time-to-time, either in whole loan sales or securitization transactions as market conditions warrant. In terms of securitizations, and on a case-by-case basis in whole loan sales, the bank intends to retain the servicing of these loans. The Bank believes this strategy is consistent with the Bank's goal to maximize shareholder value, grow in a consistent and profitable manner, and meet its regulatory capital requirements in the most efficient way possible. The bank stated that no loan sales or securitizations were executed in the first quarter.

California Republic Bancorp continued to report strong credit quality through the first quarter, with no non-performing or charged-off loans within the commercial banking portfolio since inception, and annualized charge-offs of 0.22% within the owned indirect auto portfolio.

Total interest income grew in the first quarter of 2013 to $6.8 million, a $1.9 million or 40.4% increase over total interest income for the same period of 2012. First quarter net interest margin also grew to 5.81%, compared with a net interest margin of 4.18% for the same period of 2012. Net income for the quarter was $185 thousand for the Bank and $82 thousand for the Bancorp, compared with net loss of $228 thousand for the Bank and a net loss of $320 thousand for the Bancorp for the first quarter of 2012. The difference in net income between the Bank and the Bancorp is mostly due to non-cash expenses, such as the amortization of stock options, which occur at the Bancorp level and not at the Bank.

At March 31, 2013, California Republic Bank reported a Tier-1 leverage capital ratio of 9.11%, a Tier-1 risk based capital ratio of 10.51% and a total risk based capital ratio of 11.53%, 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 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 in order to establish long-term customer relationships. The Bank operates four full-service regional bank branches in Newport Beach, Beverly Hills, Irvine and Westlake Village. The Bank also has an indirect auto finance division, CRB Auto, which purchases auto contracts from both franchised and independent automobile dealerships throughout California, Arizona and Texas, and operates a customer service center in Las Vegas, Nevada.

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 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 Quarter Ended March 31, 2013 and the Year Ended December 31, 2012
Dollars in Thousands        
March 31, 2013December 31, 2012
     Unaudited    (1)
Balance Sheet - At Period End
Cash and Due From Banks$136,115$184,503
Due From Banks - Interest Bearing2,2633,812
Federal Funds Sold--
Investment Securities604610
Loans Held to Maturity502,371396,924
Allowance for Loan and Lease Losses(5,208)(5,159)
Premises and Fixed Assets2,6871,965
Other Assets     14,067      10,254 
Total Assets     652,899      592,909 
Non-Interest-Bearing Deposits294,282252,326
Interest-Bearing Deposits299,262278,129
Other Liabilities3,6556,851
Shareholders' Equity     55,700      55,603 
Total Liabilities & Equity    $652,899     $592,909 
Income Statement          
Interest Income$6,776$25,065
Interest Expense     559      1,971 
Net Interest Income6,21723,094
Provision for Loan and Lease Loss     127      791 
Net Interest Income After Provision6,09022,303
Gain on Sale of Loans-6,346
Non-Interest Income492734
Non-Interest Expense     6,366      19,258 
Pre-tax Income     216      10,125 
Income Tax Expense     134      2,391 
Net Income    $82     $7,734 

(1) Excerpted from audited financial statements



Statement of Cash Flows for the Quarter Ended March 31, 2013, and the Year Ended December 31, 2011
Dollars in Thousands          
    March 31, 2013    December 31, 2012
     Unaudited    (1)
Cash Flows from Operating Activities
Net Earnings$82$7,734



Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities

Depreciation and Amortization72476
Provision for Loan Losses127791
Deferred Income Tax Benefit-(3,080)
Stock Based Compensation125313
Other Items     (7,223)     4,645 
Net Cash Provided by Operating Activities     (6,817)     10,879 
Cash Flows from Investing Activities
Net Decrease in Interest-Bearing Deposits1,54947,374
Net (Increase), Decrease in Loans(105,447)(107,318)
Purchase of Federal Home Loan Bank Stock-(378)
Purchases of Premises and Equipment(787)(1,253)
Acquisition, Net of Cash Acquired     -      10,889 
Net Cash Used in Investing Activities     (104,685)     (50,686)
Cash Flows from Financing Activities
Net Increase in Demand Deposits41,956173,920
Net Increase in Interest-Bearing Deposits21,133(16)
Issuance of Common Stock25-
Proceeds (Repayment) from Borrowings     -      (15,000)
Net Cash Provided by Financing Activities     63,114      158,904 
Increase (Decrease) in Cash and Equivalents(48,388)119,097
Cash and Cash Equivalents Beginning of Period184,50365,407
Cash and Cash Equivalents, End of Period    $136,115     $184,503 

California Republic Bancorp
John DeCero, President

KEYWORDS:   United States  North America  California


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