California Republic Bank Announces a Record $362 Million in Assets, a 42% Increase in Demand Deposits and a 38% Increase in Loans for the 2nd Quarter of 2011

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--California Republic Bank (OTCBB: CRPB) announced its results for the 2nd quarter ending June 30, 2011, and once again reported strong growth in non-interest bearing deposits and loans. The Bank also announced that it recently launched an Indirect Auto Finance Division and began originating auto loans out of a new loan production office based in Irvine.

“We are happy to report continued growth, organically generated from new deposit and loan customer relationships. Our 5-Star ‘Superior’ Bauer rating clearly demonstrates our ability to grow while maintaining our financial strength in what has become a very competitive banking environment.”

CEO, Jon Wilcox stated, “We are happy to report continued growth, organically generated from new deposit and loan customer relationships. Our 5-Star ‘Superior’ Bauer rating clearly demonstrates our ability to grow while maintaining our financial strength in what has become a very competitive banking environment.”

President, John DeCero commented, “After months of careful preparation and development, we are also glad to have launched our Auto Finance Division. Not only is this a business we understand, but with two successful industry veterans, Scott Raymer and Dave Prescher at the helm, we believe that this will be a unique complement to the Bank’s core commercial banking franchise.”

Highlights for the 2nd quarter 2011:

• Total assets of $362.0 million, a 12.5% increase over the same period 2010.
• Total demand deposit accounts of $109.8, a 41.7% increase over the same period 2010.
• Total loan commitments of $335.3 million and loan outstandings of $223.3 million, a 37.7% increase in outstandings over the same period 2010.
• The Bank continues its record of no non-performing or charged-off loans.
• Total risk based capital ratio of 19.94%.

2nd Quarter 2011 results:

For June 30, 2011, California Republic Bank reported total assets of $362.0 million, an increase of $40.3 million, or 12.5% above total assets as of June 30, 2010. The Bank improved its asset mix significantly from the 2nd quarter of 2010 with a 41.7% increase in non-interest bearing demand deposits. Demand deposit accounts grew to $109.8 million, compared to $77.5 million at the end of the 2nd quarter of 2010. Total deposits were $282.5 million, a $9.5 million, or 3.5% increase from the 2nd quarter of 2010. Loan outstandings were $223.3 million, representing a $61.1 million, or 37.7% increase over the 2nd quarter of 2010. The Bank reported a net loss for the first six months of 2011 of $179 thousand, compared to net income of $1.94 million for the first six months of 2010. (The first six months of 2010 included an interest gain from the purchase of a discounted loan). Although the Bank reported a net loss of $179 thousand, this amount included $507 thousand of start-up auto loan expenses, and $565 thousand of non-cash provision for loan losses. California Republic Bank continues to report strong credit quality, with zero non-performing loans and no charged-off loans since inception. The Bank reported a strong Tier 1 leverage capital ratio of 15.2%, a Tier 1 risk based capital ratio of 18.7% and a total risk based capital ratio of 19.9%, well in excess of the 5%, 6% and 10%, respectively, needed to be considered “well-capitalized” by the FDIC.

About California Republic Bank

California Republic Bank is the 9th largest bank based in Orange County and one of the strongest community banks in California based on its capital, liquidity, and credit quality.¹

The Bank serves investors and companies throughout Southern California. It provides clients direct access to executive management, with customized products delivered through highly experienced Relationship Managers and some of the best technology in the industry. The Bank has two regional branches in Newport Beach and Beverly Hills, as well as a loan production office based in Irvine.

For more information, contact Jon Wilcox, CEO, or John DeCero, President at 949-270-9700 in Orange County or 424-230-5400 in Los Angeles. You can also visit our website at www.crbnk.com. The Bank's headquarters is located at 1400 Newport Center Drive, Suite 150, Newport Beach, California 92660. The Bank's Beverly Hills branch is located at 100 North Crescent Drive, Suite 125, Beverly Hills, California 90210.

The Board of Directors includes:

• Inside Directors Jon Wilcox, CEO and John DeCero, President.
• Outside Directors Robert Barth, Chairman of the Board; John Bendheim, President of Bendheim Enterprises, Inc; Marc Brutten, Entrepreneur and CEO of Westcore Holdings; Alexander Cappello, Chairman and CEO of Cappello Capital Corp; Bob Din, CEO of En Pointe Technologies; John Hagestad, Managing Partner of SARES-REGIS Group; Warren S. Orlando, Chairman, 2nd United Bancorp; and J. Scott Watt, President and CEO of the Watt Group of Companies.

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 the Company'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 the Company's results of operation; (2) the Company's ability to continue its internal growth rate; (3) the Company's ability to build net interest spread; (4) the quality of the Company's earning assets; and (5) governmental regulations.

¹ As reported in the November 8, 2010 issue of the Orange County Business Journal

CALIFORNIA REPUBLIC BANK
Balance Sheets and Income Statements for the Six Months Ended June 30, 2011, and the Year Ended December 31, 2010
Dollars in Thousands
	June 30, 2011				December 31, 2010
	Unaudited				(1)
Balance Sheet - At Period End
Cash and Due From Banks		$	51,270			$	26,241
Due From Banks - Interest Bearing			85,909				101,424
Federal Funds Sold			-				-
Investment Securities			645				-
Loans Held to Maturity			223,321				185,293
Allowance for Loan and Lease Losses			(3,348	)			(2,783	)
Premises and Fixed Assets			1,001				818
Other Assets			3,230				2,267
Total Assets			362,028				313,260
Non-Interest-Bearing Deposits			109,836				89,926
Interest-Bearing Deposits			172,691				173,869
Borrowed Funds			30,000				-
Other Liabilities			888				924
Shareholders' Equity			48,613				48,541
Total Liabilities & Equity		$	362,028			$	313,260
	June 30, 2011				December 31, 2010
	Unaudited				(1)
Income Statement - For Period Ending
Interest Income		$	5,660			$	11,719
Interest Expense			639				1,639
Net Interest Income			5,021				10,080
Provision for Loan and Lease Loss			565				613
Net Interest Income After Provision			4,456				9,467
Non-Interest Income			132				386
Non-Interest Expense			4,767				7,789
Net Income (Loss)			($179	)		$	2,064

CALIFORNIA REPUBLIC BANK
Statement of Cash Flows for the Six Months Ended June 30, 2011, and the Year Ended December 31, 2010
Dollars in Thousands
	June 30, 2011				December 31, 2010
	Unaudited				(1)
Cash Flows from Operating Activities
Net Earnings (Loss)			($179	)		$	2,064
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities
Depreciation and Amortization			127				250
Provision for Loan Losses			565				613
Deferred Income Tax Benefit			-				(197	)
Stock Based Compensation			250				560
Other Items			(998	)			649
Net Cash Provided by Operating Activities			(235	)			3,939
Cash Flows from Investing Activities
Net (Increase), Decrease in Interest-Bearing Deposits			15,515				(71,302	)
Maturities of Held-to-Maturity Securities			-				10,000
Purchase of Held-to-Maturity Securities			(654	)			(10,000	)
Net (Increase), Decrease in Loans			(38,028	)			(38,191	)
Purchase of Federal Home Loan Bank Stock			-				(281	)
Purchases of Premises and Equipment			(301	)			(64	)
Net Cash Used in Investing Activities			(23,468	)			(109,838	)
Cash Flows from Financing Activities
Net Increase in Demand Deposits			19,910				39,290
Net Decrease in Interest-Bearing Deposits			(1,178	)			(6,825	)
Net Increase in Borrowed Funds			30,000				-
Net Cash Provided by Financing Activities			48,732				32,465
Increase (Decrease) in Cash and Equivalents			25,029				(73,434	)
Cash and Cash Equivalents Beginning of Period			26,241				99,675
Cash and Cash Equivalents, End of Period		$	51,270			$	26,241
(1) Excerpted from audited financial statements