IRVINE, Calif.--(BUSINESS WIRE)--California Republic Bancorp (“CRB” or “Company”) (OTCBB: CRPB), a bank holding company for California Republic Bank (“Bank”), announced net income for the three months ended December 31, 2015 of $1.1 million, or $0.14 per basic common share, compared with net income of $2.5 million, or $0.37 per basic common share for the same period a year earlier. For the year ended December 31, 2015, net income was $12.1 million, or $1.56 per basic common share, compared with $12.0 million, or $2.12 per basic common share, for the same period a year ago. Return on average equity was 2.80% and 8.26% for the three and twelve months ended December 31, 2015, compared with 17.18% and 15.94% for the same respective periods a year ago.
“We’re pleased to have achieved record loan and deposit growth, and record profits during 2015. With historically low interest rates, and a flattening of the yield curve, we’re also pleased to have maintained strong net interest margins for all of 2015,” stated Jon Wilcox, Chief Executive Officer of California Republic Bancorp. “Given increased capital markets volatility and uncertainty regarding the overall direction of interest rates, we, along with the overall industry, experienced wider credit spreads on auto-backed securities issued during the last half of 2015, which negatively impacted the net cash gains on auto loans sold. Investor demand on auto-backed securities issued in January of 2016 has increased relative to December and credit spreads have narrowed. We expect these positive technical trends to continue.”
John DeCero, President of California Republic Bancorp, commented, “We’re pleased to have successfully completed securitization transactions each quarter in 2015, particularly during a very difficult structured finance market in the last half of the year. Through our securitization transactions, we’re able to sell auto loans including all residual interests for cash, which eliminates our credit exposure to such loans. Credit performance remains strong for loans retained on our balance sheet with our continued record of no loan losses in our commercial portfolio since the inception of CRB, and just 0.47% and 0.35% of credit losses in our owned auto portfolio for the three and twelve months ended December 31, 2015, respectively.”
Business Performance:
Total commercial loans grew $339 million, or 64%, to $868 million at December 31, 2015 compared with a year earlier. Total commercial commitments, including commercial loans funded, grew 58%, or $429 million to $1.2 billion at December 31, 2015 compared with $743 million at December 31, 2014.
Prime auto loan originations were $446 million for the quarter, an increase of 30% or $104 million, compared with $342 million for the same quarter a year ago. For the year ended December 31, 2015, prime auto loan originations were $1.8 billion, an increase of 54%, or $639 million, compared with $1.2 billion for the same period a year earlier.
The Bank continues to maintain stable and consistent borrower credit attributes, demographics, and loan structure, reaffirming its commitment not to sacrifice credit quality for loan growth. With continued strong loan origination growth, CRB’s total managed loan portfolio increased 69%, or $1.4 billion, to $3.4 billion at December 31, 2015 compared with $2.0 billion a year earlier.
Noninterest bearing deposits grew $144 million, or 26%, to $706 million at December 31, 2015 compared with $562 million a year earlier. Total deposits grew $281 million, or 30%, to $1.2 billion at December 31, 2015 compared with $946 million a year ago. Noninterest bearing deposits represent 58% of total deposits at December 31, 2015.
The Bank successfully completed a prime automobile loan securitization in the fourth quarter of 2015 in which $380 million in notes backed by the Bank’s automobile loans were sold. The Bank sold all classes of debt and the remaining residual interest in the securitized receivables through a private placement under Rule 144A to qualified institutional buyers. Furthermore, this securitization transaction was accounted for as a true sale, including all future residual interests, therefore leaving no possibility for later adjustments affecting the financial position of the Bank.
Credit Suisse and J.P. Morgan acted as joint bookrunners, and Citigroup acted as co-manager for the issuance of notes. Credit Suisse was the sole placement agent for the certificates. CRB also retained the right to service the sold loans on which it is paid an annual servicing fee of 1.0% on the outstanding pool balance until the transaction is paid-off.
For the year ended December 31, 2015, total automobile loans securitized was $1.5 billion compared with $1.0 billion for the same period a year earlier. Total auto loans serviced for others increased 70% to $2.2 billion at December 31, 2015 compared with $1.3 billion a year earlier.
Total on-balance sheet assets increased 48%, or $533 million, to $1.7 billion at December 31, 2015 compared with $1.1 billion for the same period a year earlier. The year-over-year growth in total assets included a $503 million increase, or 67%, in total gross loans held for investment and held for sale due to growth in commercial, and automobile loans related to the timing and retention of auto loan securitization activities. In addition, investment securities increased $93 million to $261 million at December 31, 2015 compared with $168 million a year ago.
Financial Performance:
Net interest income grew 53%, or $6.5 million, to $18.7 million for the three months ended December 31, 2015 compared with $12.3 million for the same period a year ago. For the year ended December 31, 2015, net interest income grew 56%, or $23.2 million, to $64.8 million compared with $41.7 million for the same period a year earlier. Net interest margins narrowed 49 basis points to 4.24% for the three months ended December 31, 2015 compared with 4.73% for the same period a year earlier. For the year ended December 31, 2015, net interest margins narrowed 30 basis points to 4.31% compared with 4.61% for the same period a year ago. Net interest margins have declined primarily due to a continued low interest rate environment, flattening of the overall yield curve, and the short duration of the assets held by the Company.
Noninterest income declined $3.2 million, or 37%, to $5.3 million for the three months ended December 31, 2015, compared with $8.5 million for the same period a year earlier as the Company completed a $380 million automobile loan securitization transaction at 0.07% loss in the fourth quarter of 2015 compared with $325 million for the same period a year ago at 1.66% gain. The decline in noninterest income in the fourth quarter was the result of significantly wider credit spreads on auto-backed securities sold, as experienced industry-wide, offset by an 88% increase, or $2.6 million in higher auto loan servicing fees for the fourth quarter.
For the year ended December 31, 2015, noninterest income grew 8%, or $2.4 million, to $33.1 million compared with $31.0 million for the same period a year earlier as the Company completed $1.5 billion in automobile loan securitization transactions compared with $1.0 billion for the same period a year ago. The effect of wider credit spreads on the Company’s third and fourth quarter auto loan securitization transactions significantly reduced the gain on sale of auto loans for the year ended December 31, 2015 offset by a 106%, or $9.4 million, increase in auto loan servicing fees to $18.4 million compared with $8.9 million for the same period a year earlier.
Noninterest expense increased $5.5 million, or 36%, to $20.7 million for the fourth quarter of 2015 compared with $15.2 million the same period a year ago. For the year ended December 31, 2015, noninterest expense increased $22.7 million, or 45% to $72.6 million compared with $50.0 million for the same period a year earlier. The year-over-year increase in noninterest expense is the result of the Company continuing to make significant investments in its auto lending and commercial banking platforms to support its strategic growth expansion.
Asset Quality:
California Republic Bank continued to report strong credit quality with no nonperforming or charged-off loans in the commercial loan portfolio since the Company’s inception, and a net annualized charge-off rate for its owned auto loan portfolio of 0.47% for the fourth quarter of 2015 compared with 0.35% for the same period a year ago. For the twelve months ended December 31, 2015, the net annualized charge-off rate was 0.35% compared with 0.32% for the same period a year earlier.
Regulatory Capital:
The Bank’s and Bancorp’s regulatory capital ratios exceeded those required to be considered a “well capitalized” institution for regulatory purposes. At December 31, 2015, common equity tier 1 capital ratio for the Bank and Bancorp was 11.66% and 12.05%, respectively; tier 1 capital ratio was 11.66% and 12.05%, respectively; total capital ratio was 14.40% and 14.79%, respectively; and the leverage ratio was 8.25% and 8.53%, respectively.
About California Republic Bancorp:
California Republic Bancorp is the holding company for California Republic Bank. California Republic Bank is a full-service commercial bank providing loans, deposit and cash management services to individuals, businesses, investors, and family offices. The Bank offers its clients direct access to decision makers, unparalleled responsiveness, seasoned Relationship Managers and state-of-the-art technology. The Bank has five branch offices serving Southern California, located in Newport Beach, Beverly Hills, Irvine, Westlake Village and San Diego. The Bank also operates CRB Auto, a division of the bank, which is a relationship based, indirect auto lender, which purchases auto contracts from both franchised and select independent automobile dealerships throughout 12 States—Arizona, California, Colorado, Illinois, Iowa, Kansas, Missouri, Nevada, Oklahoma, Oregon, Texas, and Washington.
For more information, contact Jon Wilcox, CEO, or John DeCero, President at 949-270-9719. You can also visit the Company’s website at www.crbnk.com.
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 Din Cloud; John Hagestad, Managing Partner of SARES-REGIS Group; Warren S. Orlando, First Senior Vice President Valley National Bank; 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 Douglas Deubel, Raymond James at 1-888-734-0540.
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) California Republic’s ability to access the public securitization market for automobile loans; (5) the credit spread or cost of funds for auto-backed securities; (6) the quality of California Republic’s earning assets; (7) changes in the level of non-performing assets and charge-offs; (8) the effect of changes in laws and regulations with which California Republic must comply; (9) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory authorities and accounting requirements; (10) acts of war or terrorism or natural disasters; (11) the timely development of new banking products and services; (12) the success of products and services, such as the indirect auto loan business; (13) technological changes; (14) cyber-security threats, including loss of system functionality or theft or loss of data; (15) the ability to increase market share and control expenses; (16) and 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.
| California Republic Bancorp and Subsidiaries | |||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
|
(Dollars and shares in thousands) |
|||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| 12/31/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | ||||||||||||
| Interest income | |||||||||||||||
| Loans, including fees | $ | 18,274 | $ | 12,034 | $ | 63,144 | $ | 41,775 | |||||||
| Investment securities | 1,227 | 708 | 4,209 | 1,455 | |||||||||||
| Other | 353 | 162 | 1,356 | 664 | |||||||||||
| TOTAL INTEREST INCOME | 19,853 | 12,904 | 68,709 | 43,895 | |||||||||||
| Interest expense | |||||||||||||||
| Deposits | 607 | 452 | 2,140 | 2,041 | |||||||||||
| Other borrowings | 499 | 192 | 1,753 | 202 | |||||||||||
| TOTAL INTEREST EXPENSE | 1,105 | 644 | 3,893 | 2,243 | |||||||||||
| Net interest income | 18,748 | 12,260 | 64,816 | 41,652 | |||||||||||
| Provision for loan losses | 1,148 | 1,119 | 5,024 | 2,251 | |||||||||||
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
17,600 | 11,141 | 59,792 | 39,400 | |||||||||||
| Noninterest income | |||||||||||||||
| Gain on sale of loans | (284 | ) | 5,405 | 14,416 | 21,368 | ||||||||||
| Loan servicing fees | 5,494 | 2,916 | 18,357 | 8,922 | |||||||||||
| Other | 96 | 139 | 318 | 364 | |||||||||||
| TOTAL NONINTEREST INCOME | 5,306 | 8,459 | 33,091 | 30,655 | |||||||||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | 15,103 | 10,481 | 53,638 | 34,230 | |||||||||||
| Other | 5,639 | 4,732 | 19,005 | 15,735 | |||||||||||
| TOTAL NONINTEREST EXPENSE | 20,741 | 15,213 | 72,643 | 49,965 | |||||||||||
| INCOME BEFORE INCOME TAXES | 2,165 | 4,388 | 20,240 | 20,090 | |||||||||||
| Income tax expense | 1,095 | 1,936 | 8,171 | 8,111 | |||||||||||
| NET INCOME | $ | 1,070 | $ | 2,452 | $ | 12,068 | $ | 11,979 | |||||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.14 | $ | 0.37 | $ | 1.56 | $ | 2.12 | |||||||
| Weighted average number of common shares | |||||||||||||||
| Basic | 7,769 | 6,675 | 7,749 | 5,641 | |||||||||||
| California Republic Bancorp and Subsidiaries | ||||||||||
| UNAUDITED CONSOLIDATED BALANCE SHEET | ||||||||||
| (Dollars in thousands) | ||||||||||
| 12/31/2015 | 12/31/2014 | |||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents | $ | 106,514 | $ | 184,301 | ||||||
| Investment securities available for sale | 260,511 | 167,717 | ||||||||
| Auto loans held for sale | 252,473 | 127,867 | ||||||||
| Auto loans held for investment | 128,816 | 89,009 | ||||||||
| Commercial loans held for investment | 868,340 | 529,647 | ||||||||
| Gross loans held for investment | 997,156 | 618,655 | ||||||||
| Allowance for loan and lease losses | (9,492 | ) | (5,919 | ) | ||||||
| Loans held for investment, net | 987,664 | 612,736 | ||||||||
| Premises and equipment, net | 7,145 | 5,728 | ||||||||
| FHLB stock and other investments | 15,636 | 8,902 | ||||||||
| Other assets | 23,943 | 13,880 | ||||||||
| TOTAL ASSETS | $ | 1,653,885 | $ | 1,121,131 | ||||||
| LIABILITIES | ||||||||||
| Deposits: | ||||||||||
| Noninterest bearing | $ | 706,390 | $ | 562,049 | ||||||
| Interest bearing | 520,744 | 384,211 | ||||||||
| Total deposits | 1,227,134 | 946,260 | ||||||||
| Other borrowings | 235,000 | - | ||||||||
| Subordinated debentures | 25,000 | 25,000 | ||||||||
| Other liabilities | 15,455 | 11,042 | ||||||||
| TOTAL LIABILITIES | 1,502,589 | 982,302 | ||||||||
| SHAREHOLDERS' EQUITY | ||||||||||
| Common stock | 117,294 | 116,943 | ||||||||
| Paid in capital | 6,342 | 5,033 | ||||||||
| Retained earnings | 29,233 | 17,165 | ||||||||
| Accumulated other comprehensive income | (1,572 | ) | (313 | ) | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 151,297 | 138,828 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,653,885 | $ | 1,121,131 | ||||||
| California Republic Bancorp and Subsidiaries | ||||||||||||||||||||
| UNAUDITED CONSOLIDATED AVERAGE BALANCES AND ANNUALIZED YIELDS | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| 12/31/2015 | 12/31/2014 | |||||||||||||||||||
| Average | Average | |||||||||||||||||||
| Balance | Income | Rate | Balance | Income | Rate | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash | $ | 93,594 | $ | 71 | 0.30 | % | $ | 120,756 | $ | 79 | 0.26 | % | ||||||||
| Investment securities | 271,285 | 1,227 | 1.79 | % | 135,541 | 708 | 2.07 | % | ||||||||||||
| Commercial loans | 883,227 | 9,918 | 4.46 | % | 429,623 | 5,583 | 5.16 | % | ||||||||||||
| Auto loans | 489,157 | 8,356 | 6.78 | % | 334,351 | 6,451 | 7.66 | % | ||||||||||||
| Total loans | 1,372,384 | 18,274 | 5.28 | % | 763,973 | 12,034 | 6.25 | % | ||||||||||||
| Other interest earning assets | 15,636 | 281 | 7.13 | % | 7,204 | 74 | 4.07 | % | ||||||||||||
| Total interest earning assets | 1,752,898 | 19,853 | 4.49 | % | 1,027,474 | 12,895 | 4.98 | % | ||||||||||||
| Other assets | 34,739 | 37,309 | ||||||||||||||||||
| Total Assets | $ | 1,787,637 | $ | 1,064,783 | ||||||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||
| Interest bearing transaction accts | $ | 461,197 | $ | 531 | 0.46 | % | $ | 376,781 | $ | 447 | 0.47 | % | ||||||||
| Time certificate of deposits | 95,596 | 75 | 0.31 | % | 3,410 | 5 | 0.58 | % | ||||||||||||
| Total Interest Bearing Deposits | 556,793 | 607 | 0.43 | % | 380,191 | 452 | 0.47 | % | ||||||||||||
| Other borrowings | 302,919 | 160 | 0.21 | % | 36,121 | 16 | 0.18 | % | ||||||||||||
| Subordinated debentures | 25,000 | 338 | 5.37 | % | 13,043 | 176 | 5.35 | % | ||||||||||||
| Total interest bearing liabilities | 884,712 | 1,105 | 0.50 | % | 429,355 | 644 | 0.60 | % | ||||||||||||
| Non-interest bearing demand accts | 735,581 | 511,015 | ||||||||||||||||||
| Total funding | 1,620,293 | 1,105 | 0.27 | % | 940,370 | 644 | 0.27 | % | ||||||||||||
| Other liabilities | 15,825 | 11,330 | ||||||||||||||||||
| Shareholders' equity | 151,519 | 113,084 | ||||||||||||||||||
| Total liabilities & shareholders' equity | $ | 1,787,637 | $ | 1,064,783 | ||||||||||||||||
| Net interest spread | 4.00 | % | 4.38 | % | ||||||||||||||||
| Net interest income / margin | $ | 18,748 | 4.24 | % | $ | 12,251 | 4.73 | % | ||||||||||||
| California Republic Bancorp and Subsidiaries | ||||||||||||||||||||
| UNAUDITED CONSOLIDATED AVERAGE BALANCES AND ANNUALIZED YIELDS | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Twelve Months Ended | ||||||||||||||||||||
| 12/31/2015 | 12/31/2014 | |||||||||||||||||||
| Average | Average | |||||||||||||||||||
| Balance | Income | Rate | Balance | Income | Rate | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash | $ | 92,245 | $ | 254 | 0.28 | % | $ | 172,524 | $ | 350 | 0.20 | % | ||||||||
| Investment securities | 253,427 | 4,209 | 1.66 | % | 70,212 | 1,455 | 2.07 | % | ||||||||||||
| Commercial loans | 710,597 | 32,182 | 4.53 | % | 386,224 | 20,400 | 5.28 | % | ||||||||||||
| Auto loans | 435,048 | 30,962 | 7.12 | % | 269,374 | 21,376 | 7.94 | % | ||||||||||||
| Total loans | 1,145,645 | 63,144 | 5.51 | % | 655,598 | 41,776 | 6.37 | % | ||||||||||||
| Other interest earning assets | 12,545 | 1,102 | 8.79 | % | 4,747 | 315 | 6.63 | % | ||||||||||||
| Total interest earning assets | 1,503,862 | 68,709 | 4.57 | % | 903,081 | 43,896 | 4.86 | % | ||||||||||||
| Other assets | 33,247 | 8,924 | ||||||||||||||||||
| Total Assets | $ | 1,537,109 | $ | 912,005 | ||||||||||||||||
| LIABILITIES & EQUITY | ||||||||||||||||||||
| Interest bearing transaction accts | $ | 431,419 | $ | 2,009 | 0.47 | % | $ | 358,985 | $ | 2,015 | 0.56 | % | ||||||||
| Time certificate of deposits | 33,494 | 131 | 0.39 | % | 3,958 | 26 | 0.67 | % | ||||||||||||
| Total Interest Bearing Deposits | 464,913 | 2,140 | 0.46 | % | 362,943 | 2,041 | 0.56 | % | ||||||||||||
| Other borrowings | 209,307 | 404 | 0.19 | % | 16,301 | 25 | 0.16 | % | ||||||||||||
| Subordinated debentures | 25,000 | 1,349 | 5.39 | % | 3,288 | 176 | 5.37 | % | ||||||||||||
| Total interest bearing liabilities | 699,220 | 3,893 | 0.56 | % | 382,531 | 2,243 | 0.59 | % | ||||||||||||
| Non-interest bearing demand accts | 670,976 | 445,837 | ||||||||||||||||||
| Total funding | 1,370,196 | 3,893 | 0.28 | % | 828,368 | 2,243 | 0.27 | % | ||||||||||||
| Other liabilities | 20,764 | 8,482 | ||||||||||||||||||
| Shareholders' equity | 146,149 | 75,156 | ||||||||||||||||||
| Total liabilities & shareholders' equity | $ | 1,537,109 | $ | 912,005 | ||||||||||||||||
| Net interest spread | 4.01 | % | 4.27 | % | ||||||||||||||||
| Net interest income / margin | $ | 64,816 | 4.31 | % | $ | 41,652 | 4.61 | % | ||||||||||||
| California Republic Bancorp and Subsidiaries | ||||||||||||||||||
| UNAUDITED SELECTED FINANCIAL DATA | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| At and For | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| 12/31/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | |||||||||||||||
| LOANS: | ||||||||||||||||||
| Auto Loans: | ||||||||||||||||||
| Beginning balance | $ | 350,725 | $ | 221,338 | $ | 216,876 | $ | 143,708 | ||||||||||
| Purchases | 445,579 | 342,000 | 1,829,548 | 1,190,386 | ||||||||||||||
| Sales | (380,000 | ) | (325,000 | ) | (1,545,001 | ) | (1,048,478 | ) | ||||||||||
| Principal reductions | (35,015 | ) | (21,462 | ) | (120,134 | ) | (68,740 | ) | ||||||||||
| Auto loans owned | $ | 381,289 | $ | 216,876 | 381,289 | 216,876 | ||||||||||||
| Auto loans serviced for others | 2,164,765 | 1,275,913 | ||||||||||||||||
| Total auto loans serviced | $ | 2,546,054 | $ | 1,492,789 | ||||||||||||||
| Commercial bank loans | 868,340 | 529,647 | ||||||||||||||||
| Total managed loans | $ | 3,414,394 | $ | 2,022,436 | ||||||||||||||
| New commercial commitments | $ | 26,076 | $ | 78,387 | $ | 451,010 | $ | 298,748 | ||||||||||
| Outstanding commercial commitments | $ | 1,172,515 | $ | 743,174 | ||||||||||||||
| PERFORMANCE RATIOS: | ||||||||||||||||||
| Return on average equity | 2.80 | % | 17.18 | % | 8.26 | % | 15.94 | % | ||||||||||
| Return on average assets | 0.24 | % | 1.27 | % | 0.79 | % | 1.31 | % | ||||||||||
| Book value per share | $ | 19.47 | $ | 17.98 | ||||||||||||||
| ASSET QUALITY RATIOS: | ||||||||||||||||||
| 30 day plus delinquent loans (1) | 0.35 | % | 0.29 | % | ||||||||||||||
| Nonperforming loans to total loans (1) | 0.06 | % | 0.05 | % | ||||||||||||||
| Allowance for loan losses to total loans HFI (2) | 0.95 | % | 0.96 | % | ||||||||||||||
| Net chargeoffs on commercial banking loans (3) | - | - | - | - | ||||||||||||||
| Net chargeoffs on auto loans owned | 0.47 | % | 0.35 | % | 0.35 | % | 0.32 | % | ||||||||||
| (1) No commercial loans are delinquent or nonperforming | ||||||||||||||||||
| (2) Excludes $252.5 million of auto loans held for sale | ||||||||||||||||||
| (3) No life-to-date net chargeoffs on commercial banking loans | ||||||||||||||||||
| CAPITAL RATIOS | ||||||||||||||||||
| Bancorp: | ||||||||||||||||||
| Common equity tier 1 capital ratio | 12.05 | % | 18.13 | % | ||||||||||||||
| Tier 1 capital ratio | 12.05 | % | 18.13 | % | ||||||||||||||
| Total capital ratio | 14.79 | % | 22.19 | % | ||||||||||||||
| Leverage ratio | 8.53 | % | 13.18 | % | ||||||||||||||
| Bank: | ||||||||||||||||||
| Common equity tier 1 capital ratio | 11.66 | % | 16.23 | % | ||||||||||||||
| Tier 1 capital ratio | 11.66 | % | 16.23 | % | ||||||||||||||
| Total capital ratio | 14.40 | % | 20.29 | % | ||||||||||||||
| Leverage ratio | 8.25 | % | 11.80 | % | ||||||||||||||
