NEWPORT BEACH, Calif.--(California Republic Bank, announced its audited financial results for year ended December 31, 2011, and its unaudited financial results for the first quarter of 2012. California Republic reported strong growth in assets, loans, and core deposits; and continued its track record of no non-performing or charged-off loans in its history through 2011.)--California Republic Bancorp (OTCBB: CRPB), holding company for
CEO Jon Wilcox stated, “2011 marked a year of growth and the implementation of strategic initiatives for the future. Having one of the best deposit and loan growth years in our history, we also formed a holding company, and, after making a substantial investment, successfully launched our new indirect auto loan business. In January 2012, we also completed our first branch acquisition opening our new office in Westlake Village.”
President John DeCero remarked on the newly formed auto lending business, “Our strong core deposit franchise combined with a consistent and scalable yield generator creates a unique opportunity to invest our liquidity in a vehicle that has a favorable risk to reward profile in today’s rate-compressed environment. It also minimizes any long-term interest rate risk due to the shorter average life of automobile assets, and is something we all understand from our prior experience.”
Year-end December 31, 2011 audited results:
For December 31, 2011, California Republic Bancorp reported total assets of $405.6 million, an increase of $92.3 million, or 29.5% above total assets as of December 31, 2010. The year-over-year growth in total assets reflects continued core deposit growth, with total deposits at $341.4 million, an increase of $77.6 million, or 29.4% from the end of 2010. Non-interest-bearing demand deposit accounts grew to $138.9 million, compared to $89.9 million at the end of 2010, an increase of $49.0 million, or 54.5%. Total loans outstanding were $286.4 million, representing an increase of $101.0 million, or 54.5% over the 2010 year-end total. The indirect auto loan portfolio represented $41.4 million of total loans outstanding at year-end.
Year-end net interest margin continued to improve overall and was 4.43% compared to a net interest margin of 3.35% for the same period of 2010. Net loss for 2011 was $1.87 million, which included a significant investment in the formation of the auto finance division, and included non-cash charges of $3.17 million, comprised of $1.993 million in additions to loan loss reserves, $882 thousand in accelerated stock option based compensation due to the formation of the holding company, and $292 thousand in depreciation and amortization.
California Republic Bank continued to report strong credit quality in both its core and auto loan portfolios, with no non-performing loans and no charged-off loans for the year.
At year-end 2011, California Republic Bank reported a Tier-1 leverage capital ratio of 12.23%, a Tier-1 risk based capital ratio of 14.83% and a total risk based capital ratio of 16.08%, well in excess of the 5%, 6% and 10%, respectively, needed to be considered “well-capitalized” by the Bank’s regulatory agencies.
Quarter end March 31, 2012 unaudited results:
At March 31, 2012, California Republic reported total assets of $435.9 million, an increase of $115.5 million, or 36.1% above total assets as of March 31, 2011. The year-over-year growth in total assets reflects continued core deposit growth with total deposits at $387.1 million, a $116.3 million, or 42.9 % increase from the first quarter of 2011. Non-interest-bearing demand deposit accounts grew to $157.5 million, compared to $104.6 million at the end of the first quarter of 2011, an increase of $52.9 million, or 50.6%. Total loans outstanding were $342.5 million, representing a $142.4 million, or 71.2% increase over the first quarter of 2011. The indirect auto loan portfolio represented $85.7 million of total loans outstanding as of March 31, 2012.
Total interest income continued to improve and for the first quarter of 2012 grew to $4.8 million, a $2.0 million or 73% increase over total interest income for the same period of 2011. First quarter net interest margin also improved to 4.86%, compared to a net interest margin of 3.43% for the same period of 2011. Net loss for the quarter improved to $320 thousand, which included total non cash charges of $1.1 million. California Republic Bancorp continued to report strong credit quality through the first quarter, with no non-performing or charged-off loans within the commercial bank.
At March 31, 2012, California Republic Bank reported a Tier-1 leverage capital ratio of 11.09%, a Tier-1 risk based capital ratio of 12.42% and a total risk based capital ratio of 13.67%, 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, one of the strongest banks in California based on its capital, liquidity and credit quality. The Bank primarily serves investors, companies and their owners throughout Southern California. It provides direct access to executive management and establishes ongoing, long term deposit and loan relationships with its clients. The Bank has 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 loans from both franchised and independent auto dealerships throughout Southern California.
For more information, contact Jon Wilcox, CEO, or John DeCero, President at 949-270-9700 in Orange County, 424-230-5400 in Los Angeles, or 805-496-9010 in Ventura County. You can also visit the company’s website at www.crbnk.com. California Republic Bancorp’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 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.
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 BANCORP|
|Balance Sheets and Income Statements for the Quarter Ended March 31, 2012, and the Year Ended December 31, 2011|
|Dollars in Thousands|
|March 31, 2012||December 31, 2011|
|Balance Sheet - At Period End|
|Cash and Due From Banks||$||45,464||$||65,408|
|Due From Banks - Interest Bearing||44,314||51,186|
|Federal Funds Sold||-||-|
|Loans Held to Maturity||342,463||286,374|
|Allowance for Loan and Lease Losses||(5,711||)||(4,776||)|
|Premises and Fixed Assets||1,154||1,116|
|Total Liabilities & Equity||$||435,925||$||405,577|
|Net Interest Income||4,417||11,143|
|Provision for Loan and Lease Loss||935||1,993|
|Net Interest Income After Provision||3,482||9,150|
(1) Excerpted from audited financial statements
|CALIFORNIA REPUBLIC BANCORP|
|Statement of Cash Flows for the Quarter Ended March 31, 2012, and the Year Ended December 31, 2011|
|Dollars in Thousands|
|March 31, 2012||December 31, 2011|
|Cash Flows from Operating Activities|
|Net Earnings (Loss)||($320||)||($1,866||)|
|Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities|
|Depreciation and Amortization||93||292|
|Provision for Loan Losses||935||1,993|
|Stock Based Compensation||88||882|
|Net Cash Provided by Operating Activities||(1,350||)||232|
|Cash Flows from Investing Activities|
|Net Decrease in Interest-Bearing Deposits||6,872||50,238|
|Purchase of Held-to-Maturity Securities||0||(654||)|
|Net (Increase), Decrease in Loans||(56,089||)||(101,081||)|
|Purchase of Federal Home Loan Bank Stock||0||(1,657||)|
|Purchases of Premises and Equipment||(125||)||(569||)|
|Net Cash Used in Investing Activities||(49,342||)||(53,723||)|
|Cash Flows from Financing Activities|
|Net Increase in Demand Deposits||18,522||77,525|
|Net Increase in Interest-Bearing Deposits||27,226||33|
|Proceeds (Repayment) from Borrowings||(15,000||)||15,100|
|Net Cash Provided by Financing Activities||30,748||92,658|
|Increase (Decrease) in Cash and Cash Equivalents||(19,944||)||39,167|
|Cash and Cash Equivalents, Beginning of Period||65,408||26,241|
|Cash and Cash Equivalents, End of Period||$||45,464||$||65,408|