California Republic Bancorp Announces its Year-End 2011 and First Quarter 2012 Results with a Record $405.6 and $435.9 Million in Assets, Respectively

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--California Republic Bancorp (OTCBB: CRPB), holding company for 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.

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
	Unaudited			(1)
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		-			-
Investment Securities		627			633
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
Other Assets		7,614			5,636
Total Assets		435,925			405,577
Non-Interest-Bearing Deposits		157,457			138,935
Interest-Bearing Deposits		229,645			202,419
Other Liabilities		1,497			16,666
Shareholders' Equity		47,326			47,557
Total Liabilities & Equity	$	435,925		$	405,577
Income Statement
Interest Income	$	4,817		$	12,544
Interest Expense		400			1,401
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
Non-Interest Income		78			272
Non-Interest Expense		3,880			11,288
Net Income		($320	)		($1,866	)
(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
	Unaudited				(1)
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
Other Items			(2,146	)		(1,069	)
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