California Republic Bank Announces Continued Organic Growth with a Record $370 Million in Assets, a 49% Increase in Demand Deposits and a 38% Increase in Loans from the Same Period of 2010

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--California Republic Bank (OTCBB:CRPB) announced its results for the 3rd quarter ending September 30, 2011, and reported strong growth in non-interest bearing deposits and loans.

Following the quarter end, on October 24, 2011, the Bank also announced that it had entered into a purchase and assumption agreement to buy National Bank of California’s full-service branch office in Westlake Village, California. The deal is still subject to regulatory approval and is expected to close in the 4^th quarter 2011 or early 2012.

Additionally, in the 3^rd quarter, on August 16, 2011, the Bank announced that it entered into an agreement to form a holding company named California Republic Bancorp. The Bank will hold a special meeting of its shareholders on November 22, 2011 to obtain shareholder approval of the proposal. It expects to complete the formation of the holding company by the end of the fourth quarter of 2011.

CEO Jon Wilcox stated, “We are glad to report a solid quarter with a scalable foundation and great momentum going into the 4th quarter. We continue to execute on our business plan by building our core deposit franchise while increasing and diversifying our overall loan portfolio. We are also excited about entering into the Westlake Village - Ventura County market.”

President John DeCero stated, “This is the first time we will grow through an acquisition, entering into an agreement to purchase National Bank of California’s full-service Westlake Village operations. There are many similarities between Westlake Village and our existing regional locations and we believe that our brand will translate well in that market. We also feel that forming a holding company will provide us greater flexibility as we continue to grow, both organically and through possible future acquisitions.”

Highlights for the 3rd quarter 2011:

• Total assets of $370.1 million, a 12.4% increase over the same period 2010.
• Total demand deposit accounts of $121.1 million, a 49.0% increase over the same period 2010.
• Total loan commitments of $351.9 million and loan outstandings of $233.2 million, a 38.2% increase in outstandings over the same period 2010.
• The Bank continues its record of no non-performing or charged-off loans, for our commercial, real estate and auto loan portfolios.
• Total risk based capital ratio of 19.8%.

3rd quarter 2011 results:

For September 30, 2011, California Republic Bank reported total assets of $370.1 million, an increase of $40.9 million, or 12.4% above total assets as of September 30, 2010. The Bank improved its asset mix significantly from the 3rd quarter of 2010 with a 49.0% increase in non-interest bearing demand deposits. Demand deposit accounts grew to $121.1 million, compared to $81.2 million at the end of the 3rd quarter of 2010. Total deposits were $320.8 million, a $60.5 million, or 23.2% increase from the 3rd quarter of 2010. Loan outstandings were $233.2 million, representing a $64.4 million, or 38.2% increase over the 3rd quarter of 2010. The Bank reported a net loss for the first nine months of 2011 of $591 thousand, compared to net income of $2.02 million for the first nine months of 2010. Although the Bank reported a net loss of $591 thousand, this amount included $855 thousand of non-cash provision for loan losses as well as start-up auto loan expenses of $1.28 million. The increase in the Bank’s provision for loan losses is due to positive growth in the Bank’s loan portfolio and not due to anticipated loan losses or troubled debt restructures. The expenses related to the start-up of the auto loan division have provided the Bank with a scalable asset generating business with good returns and an acceptable amount of risk, while providing balance and yield enhancement to its overall loan portfolio. California Republic Bank continues to report strong credit quality, with zero non-performing loans and zero charged-off loans in its commercial, real estate and auto loan portfolios. The Bank reported a strong Tier 1 leverage capital ratio of 13.8%, a Tier 1 risk based capital ratio of 18.5% and a total risk based capital ratio of 19.8%, 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 10th largest bank based in Orange County and one of the strongest community banks in California based on its capital, liquidity and credit quality. 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 branch offices in Newport Beach and Beverly Hills, as well as an auto-finance division 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 - 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; 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, 1st 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.

CALIFORNIA REPUBLIC BANK
Balance Sheets and Income Statements for the Nine Months Ended September 30, 2011 and the Year Ended December 31, 2010
Dollars in Thousands
	September 30, 2011			December 31, 2010
	Unaudited			(1)
Balance Sheet - At Period End
Cash and Due From Banks	$	82,141		$	26,241
Due From Banks - Interest Bearing		51,608			101,424
Federal Funds Sold		-			-
Investment Securities		639			-
Loans Held to Maturity		233,157			185,293
Allowance for Loan and Lease Losses		(3,638	)		(2,783	)
Premises and Fixed Assets		1,073			818
Other Assets		5,155			2,267
Total Assets		370,135			313,260
Non-Interest-Bearing Deposits		121,064			89,926
Interest-Bearing Deposits		199,691			173,869
Other Liabilities		1,056			924
Shareholders' Equity		48,324			48,541
Total Liabilities & Equity	$	370,135		$	313,260
	September 30, 2011			December 31, 2010
	Unaudited			(1)
Income Statement - For Period Ending
Interest Income	$	8,791		$	11,719
Interest Expense		1,003			1,639
Net Interest Income		7,788			10,080
Provision for Loan and Lease Loss		855			613
Net Interest Income After Provision		6,933			9,467
Non-Interest Income		189			386
Non-Interest Expense		7,713			7,789
Net Income (Loss)		($591	)	$	2,064

CALIFORNIA REPUBLIC BANK
Statement of Cash Flows for the Nine Months Ended September 30, 2011 and the Year Ended December 31, 2010
Dollars in Thousands
	September 30, 2011			December 31, 2010
	Unaudited			(1)
Cash Flows from Operating Activities
Net Earnings (Loss)		($591	)	$	2,064
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities
Depreciation and Amortization		210			250
Provision for Loan Losses		855			613
Deferred Income Tax Benefit		-			(197	)
Stock Based Compensation		374			560
Other Items		(999	)		649
Net Cash Provided by Operating Activities		(151	)		3,939
Cash Flows from Investing Activities
Net (Increase), Decrease in Interest-Bearing Deposits		49,816			(71,302	)
Maturities of Held-to-Maturity Securities		-			10,000
Purchase of Held-to-Maturity Securities		(654	)		(10,000	)
Net (Increase), Decrease in Loans		(47,864	)		(38,191	)
Purchase of FHLB & FRB Stock		(1,657	)		(281	)
Purchase of Other Equity Instruments		(100	)		-
Purchases of Premises and Equipment		(450	)		(64	)
Net Cash Used in Investing Activities		(909	)		(109,838	)
Cash Flows from Financing Activities
Net Increase in Demand Deposits		31,138			39,290
Net Decrease in Interest-Bearing Deposits		25,822			(6,825	)
Net Cash Provided by Financing Activities		56,960			32,465
Increase (Decrease) in Cash and Equivalents		55,900			(73,434	)
Cash and Cash Equivalents Beginning of Period		26,241			99,675
Cash and Cash Equivalents, End of Period	$	82,141		$	26,241
(1) Excerpted from audited financial statements