California Republic Bancorp Announces Record Assets of $797.0 Million, Record Deposits of $733.6 Million, & Record Auto Origi...
California Republic Bancorp (OTCBB: CRPB), holding company for California Republic Bank, announced its results for the third-quarter 2013, reporting record assets of $797.0 million, record core deposits of $733.6 million and record auto originations of $187.3 million.
CEO Jon Wilcox stated, “We have continued to invest and add value to our commercial banking and auto lending platforms this year. Although we did not plan to, nor did we execute an auto securitization this quarter, our indirect auto originations for the three month period grew to a record $187 million, and we continue to outperform our loss expectations from our first two auto securitizations. We are also very pleased that our non-interest bearing demand deposits have grown to $412 million, more than any other bank based in Orange County.”
President John DeCero commented, “In this historically low interest rate environment with very little loan demand, it is important to not only have a low cost core deposit franchise, which we have built, but also a consistent loan generating platform to invest those deposits. We believe that our two major businesses, commercial banking and indirect auto finance, to which we continue to invest in infrastructure and more importantly best-in-class people, will provide a truly unique earnings platform for a community bank, one that can flourish regardless of the rate environment.”
Third-Quarter 2013 Results:
Assets and Liabilities
As of September 30, 2013, California Republic Bank reported total assets of $797.0 million, an increase of $211.5 million, or 36.1% above total assets as of September 30, 2012. The year-over-year increase in total assets reflects continued strong core checking account growth with non-interest bearing demand deposits reaching a record $412.0 million compared with $228.4 million at the end of the third-quarter of 2012, an increase of $183.6 million, or 80.3%. The non-interest bearing accounts represent 56.2% of total deposits at September 30, 2013. Total deposits grew to a record $733.6 million, compared to $533.0 million for the third-quarter of 2012, an increase of $200.6 million or 37.7%.
At quarter-end, California Republic Bank reported total loans outstanding of $588.6 million, compared with total loans outstanding of $487.5 million at the end of the third-quarter of 2012, an increase of $101.1 million, or 20.7%. Commercial banking loans outstanding were a record $351.8 million, and the owned indirect auto loan portfolio was $236.8 million. Indirect auto originations for the third-quarter grew to a record $187.3 million compared to $77.8 million in the third-quarter of 2012, an increase of $109.5 million or 140.7%. Additionally, the Bank stated that its sold, servicing-retained indirect auto loan portfolio was $342.8 million at quarter-end.
Asset Quality
California Republic Bancorp continued to report strong credit quality throughout the third-quarter, with zero non-performing or charged-off loans within the commercial banking portfolio since inception, and better than expected net annualized charge-offs of 0.27% within the owned indirect auto portfolio.
Earnings
Total interest income in the third-quarter of 2013 increased to $7.8 million, a $346 thousand or 4.7% increase over total interest income for the same period of 2012. Net interest margin for the quarter was strong at 5.6%, a slight decrease from 5.9% in the same period a year ago and from the second-quarter of 2013, due mainly to lower average loans outstanding for the three months ending September because of the auto loan securitization completed in June, which sold and removed the majority of the Bank’s higher earning assets from its balance sheet at the start of the third-quarter of 2013. To a lesser extent, the Bank has also experienced some overall rate compression in both the commercial banking and automobile lending markets from the same period a year ago. The Bank stated that it does expect to complete another profitable auto loan securitization in November 2013. Net loss for the third-quarter 2013 was $700 thousand for the Bank and $814 thousand for the Bancorp, compared with net income of $2.0 million for the Bank and $1.9 million for the Bancorp for the third-quarter of 2012. The net loss was due to both timing - lower average assets outstanding throughout the third-quarter - as previously discussed due to the auto loan securitization completed in June, 2013, and no auto loan securitization completed in the third-quarter; as well as the additional investment in the build-up of infrastructure, assets and people for the national expansion of its automobile lending platform, now operating in California, Arizona, Texas, Nevada, and Iowa. The Bank also announced the establishment of a national customer service center for automobile lending in Las Vegas, Nevada.
Year-to-date pre-tax income for the Bank increased to $4.3 million, compared to $2.9 million for the same period a year ago, an increase of $1.4 million or 48.3%. The increase was due to overall organic growth in both the commercial banking and the auto lending platforms in 2013.
Net profit for the Bank was $2.5 million, compared to $2.9 million through the third-quarter 2012 and $2.1 million compared to $2.6 million for the Bancorp through the third-quarter 2012, a decrease of $0.4 million, or 13.8 % for the Bank and a decrease of $0.5 million, or 19.2% for the Bancorp. The decrease in net income was due entirely to income taxes, the fact that the Bank and Bancorp did not have income tax due during the same period last year and have accrued over $1.8 million for the Bank and $1.7 million in taxes for the Bancorp through the third-quarter of 2013.
Capital Ratios
At September 30, 2013, California Republic Bank reported a Tier-1 Leverage Capital Ratio of 7.60%, a Tier-1 Risk Based Capital Ratio of 9.59%, and a Total Risk Based Capital Ratio of 10.52%, 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. California Republic Bank is a full-service Bank providing loans, deposit and cash management products and services to businesses, investors and professionals. The Bank offers its clients direct access to decision makers, unparalleled responsiveness, seasoned Relationship Managers and state-of the-art technology. The Bank has four full-service branches serving Southern California located in Newport Beach, Beverly Hills, Irvine and Westlake Village. The Bank also operates an indirect auto finance division, CRB Auto, which purchases auto contracts from both franchised and independent automobile dealerships throughout California, Arizona, Texas, Nevada, and Iowa.
For more information, contact Jon Wilcox, CEO, or John DeCero, President, at 949-270-9719 in Orange County, at 424-230-5400 in Los Angeles, or at 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 18400 Von Karman Avenue, Suite 1100, Irvine, CA 92612.
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.
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) the quality of California Republic’s earning assets; (5) changes in the level of non-performing assets and charge-offs; (6) the effect of changes in laws and regulations with which California Republic must comply; (7) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory authorities and accounting requirements; (8) acts of war or terrorism or natural disasters; (9) the timely development of new banking products and services; (10) the success of products and services, such as the indirect auto loan business; (11) technological changes; (12) cyber-security threats, including loss of system functionality or theft or loss of data; (13) the ability to increase market share and control expenses; (14) changes in California Republic’s organization, management, and compensation; and (15) 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
Balance Sheets and Income Statements for the Three Months Ended September 30, 2013, June 30, 2013
and September 30, 2012 and Nine Months Ended September 30, 2013 and 2012.
Dollars in Thousands
Balance Sheet - At Period End (Unaudited) 9/30/2013 6/30/2013 9/30/2012
Cash and Due From Banks $ 186,712 $ 333,817 $ 87,386
Due From Banks - Interest Bearing 2,763 2,263 4,333
Federal Funds Sold - - -
Investment Securities 3,777 - 615
Loans Held to Maturity 588,567 392,428 487,466
Allowance for Loan and Lease Losses (5,464 ) (4,931 ) (6,840 )
Premises and Fixed Assets 2,947 2,697 1,473
Other Assets 17,688 10,846 11,105
Total Assets 796,990 737,120 585,538
Non-Interest-Bearing Deposits 411,905 373,624 228,381
Interest-Bearing Deposits 321,646 295,984 304,534
Other Liabilities 5,149 8,550 2,255
Shareholders' Equity 58,290 58,962 50,368
Total Liabilities & Equity $ 796,990 $ 737,120 $ 585,538
Three Months Ended
Income Statement (Unaudited) 9/30/2013 6/30/2013 9/30/2012
Interest Income $ 7,762 $ 8,338 $ 7,416
Interest Expense 580 589 538
Net Interest Income 7,182 7,749 6,878
Provision for Loan and Lease Loss 688 (75 ) 370
Net Interest Income After Provision 6,494 7,824 6,508
Gain on Sale of Loans (10 ) 4,345 -
Non-Interest Income 1,048 735 85
Non-Interest Expense 8,873 8,009 4,685
Pre-tax Income (1,341 ) 4,895 1,908
Income Tax Expense (527 ) 2,072 -
Net Income ($814 ) $ 2,823 $ 1,908
Nine Months Ended
Income Statement (Unaudited) 9/30/2013 9/30/2012
Interest Income $ 22,876 $ 18,367
Interest Expense 1,728 1,378
Net Interest Income 21,148 16,989
Provision for Loan and Lease Loss 740 2,203
Net Interest Income After Provision 20,408 14,786
Gain on Sale of Loans 4,335 -
Non-Interest Income 2,275 454
Non-Interest Expense 23,248 12,665
Pre-tax Income 3,770 2,575
Income Tax Expense 1,679 -
Net Income $ 2,091 $ 2,575
California Republic Bancorp
John DeCero
President
949-270-9719
California Republic Bancorp (OTCBB: CRPB), holding company for California Republic Bank, announced its results for the third-quarter 2013, reporting record assets of $797.0 million, record core deposits of $733.6 million and record auto originations of $187.3 million.
CEO Jon Wilcox stated, “We have continued to invest and add value to our commercial banking and auto lending platforms this year. Although we did not plan to, nor did we execute an auto securitization this quarter, our indirect auto originations for the three month period grew to a record $187 million, and we continue to outperform our loss expectations from our first two auto securitizations. We are also very pleased that our non-interest bearing demand deposits have grown to $412 million, more than any other bank based in Orange County.”
President John DeCero commented, “In this historically low interest rate environment with very little loan demand, it is important to not only have a low cost core deposit franchise, which we have built, but also a consistent loan generating platform to invest those deposits. We believe that our two major businesses, commercial banking and indirect auto finance, to which we continue to invest in infrastructure and more importantly best-in-class people, will provide a truly unique earnings platform for a community bank, one that can flourish regardless of the rate environment.”
Third-Quarter 2013 Results:
Assets and Liabilities
As of September 30, 2013, California Republic Bank reported total assets of $797.0 million, an increase of $211.5 million, or 36.1% above total assets as of September 30, 2012. The year-over-year increase in total assets reflects continued strong core checking account growth with non-interest bearing demand deposits reaching a record $412.0 million compared with $228.4 million at the end of the third-quarter of 2012, an increase of $183.6 million, or 80.3%. The non-interest bearing accounts represent 56.2% of total deposits at September 30, 2013. Total deposits grew to a record $733.6 million, compared to $533.0 million for the third-quarter of 2012, an increase of $200.6 million or 37.7%.
At quarter-end, California Republic Bank reported total loans outstanding of $588.6 million, compared with total loans outstanding of $487.5 million at the end of the third-quarter of 2012, an increase of $101.1 million, or 20.7%. Commercial banking loans outstanding were a record $351.8 million, and the owned indirect auto loan portfolio was $236.8 million. Indirect auto originations for the third-quarter grew to a record $187.3 million compared to $77.8 million in the third-quarter of 2012, an increase of $109.5 million or 140.7%. Additionally, the Bank stated that its sold, servicing-retained indirect auto loan portfolio was $342.8 million at quarter-end.
Asset Quality
California Republic Bancorp continued to report strong credit quality throughout the third-quarter, with zero non-performing or charged-off loans within the commercial banking portfolio since inception, and better than expected net annualized charge-offs of 0.27% within the owned indirect auto portfolio.
Earnings
Total interest income in the third-quarter of 2013 increased to $7.8 million, a $346 thousand or 4.7% increase over total interest income for the same period of 2012. Net interest margin for the quarter was strong at 5.6%, a slight decrease from 5.9% in the same period a year ago and from the second-quarter of 2013, due mainly to lower average loans outstanding for the three months ending September because of the auto loan securitization completed in June, which sold and removed the majority of the Bank’s higher earning assets from its balance sheet at the start of the third-quarter of 2013. To a lesser extent, the Bank has also experienced some overall rate compression in both the commercial banking and automobile lending markets from the same period a year ago. The Bank stated that it does expect to complete another profitable auto loan securitization in November 2013. Net loss for the third-quarter 2013 was $700 thousand for the Bank and $814 thousand for the Bancorp, compared with net income of $2.0 million for the Bank and $1.9 million for the Bancorp for the third-quarter of 2012. The net loss was due to both timing - lower average assets outstanding throughout the third-quarter - as previously discussed due to the auto loan securitization completed in June, 2013, and no auto loan securitization completed in the third-quarter; as well as the additional investment in the build-up of infrastructure, assets and people for the national expansion of its automobile lending platform, now operating in California, Arizona, Texas, Nevada, and Iowa. The Bank also announced the establishment of a national customer service center for automobile lending in Las Vegas, Nevada.
Year-to-date pre-tax income for the Bank increased to $4.3 million, compared to $2.9 million for the same period a year ago, an increase of $1.4 million or 48.3%. The increase was due to overall organic growth in both the commercial banking and the auto lending platforms in 2013.
Net profit for the Bank was $2.5 million, compared to $2.9 million through the third-quarter 2012 and $2.1 million compared to $2.6 million for the Bancorp through the third-quarter 2012, a decrease of $0.4 million, or 13.8 % for the Bank and a decrease of $0.5 million, or 19.2% for the Bancorp. The decrease in net income was due entirely to income taxes, the fact that the Bank and Bancorp did not have income tax due during the same period last year and have accrued over $1.8 million for the Bank and $1.7 million in taxes for the Bancorp through the third-quarter of 2013.
Capital Ratios
At September 30, 2013, California Republic Bank reported a Tier-1 Leverage Capital Ratio of 7.60%, a Tier-1 Risk Based Capital Ratio of 9.59%, and a Total Risk Based Capital Ratio of 10.52%, 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. California Republic Bank is a full-service Bank providing loans, deposit and cash management products and services to businesses, investors and professionals. The Bank offers its clients direct access to decision makers, unparalleled responsiveness, seasoned Relationship Managers and state-of the-art technology. The Bank has four full-service branches serving Southern California located in Newport Beach, Beverly Hills, Irvine and Westlake Village. The Bank also operates an indirect auto finance division, CRB Auto, which purchases auto contracts from both franchised and independent automobile dealerships throughout California, Arizona, Texas, Nevada, and Iowa.
For more information, contact Jon Wilcox, CEO, or John DeCero, President, at 949-270-9719 in Orange County, at 424-230-5400 in Los Angeles, or at 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 18400 Von Karman Avenue, Suite 1100, Irvine, CA 92612.
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.
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) the quality of California Republic’s earning assets; (5) changes in the level of non-performing assets and charge-offs; (6) the effect of changes in laws and regulations with which California Republic must comply; (7) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory authorities and accounting requirements; (8) acts of war or terrorism or natural disasters; (9) the timely development of new banking products and services; (10) the success of products and services, such as the indirect auto loan business; (11) technological changes; (12) cyber-security threats, including loss of system functionality or theft or loss of data; (13) the ability to increase market share and control expenses; (14) changes in California Republic’s organization, management, and compensation; and (15) 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
Balance Sheets and Income Statements for the Three Months Ended September 30, 2013, June 30, 2013
and September 30, 2012 and Nine Months Ended September 30, 2013 and 2012.
Dollars in Thousands
Balance Sheet - At Period End (Unaudited) 9/30/2013 6/30/2013 9/30/2012
Cash and Due From Banks $ 186,712 $ 333,817 $ 87,386
Due From Banks - Interest Bearing 2,763 2,263 4,333
Federal Funds Sold - - -
Investment Securities 3,777 - 615
Loans Held to Maturity 588,567 392,428 487,466
Allowance for Loan and Lease Losses (5,464 ) (4,931 ) (6,840 )
Premises and Fixed Assets 2,947 2,697 1,473
Other Assets 17,688 10,846 11,105
Total Assets 796,990 737,120 585,538
Non-Interest-Bearing Deposits 411,905 373,624 228,381
Interest-Bearing Deposits 321,646 295,984 304,534
Other Liabilities 5,149 8,550 2,255
Shareholders' Equity 58,290 58,962 50,368
Total Liabilities & Equity $ 796,990 $ 737,120 $ 585,538
Three Months Ended
Income Statement (Unaudited) 9/30/2013 6/30/2013 9/30/2012
Interest Income $ 7,762 $ 8,338 $ 7,416
Interest Expense 580 589 538
Net Interest Income 7,182 7,749 6,878
Provision for Loan and Lease Loss 688 (75 ) 370
Net Interest Income After Provision 6,494 7,824 6,508
Gain on Sale of Loans (10 ) 4,345 -
Non-Interest Income 1,048 735 85
Non-Interest Expense 8,873 8,009 4,685
Pre-tax Income (1,341 ) 4,895 1,908
Income Tax Expense (527 ) 2,072 -
Net Income ($814 ) $ 2,823 $ 1,908
Nine Months Ended
Income Statement (Unaudited) 9/30/2013 9/30/2012
Interest Income $ 22,876 $ 18,367
Interest Expense 1,728 1,378
Net Interest Income 21,148 16,989
Provision for Loan and Lease Loss 740 2,203
Net Interest Income After Provision 20,408 14,786
Gain on Sale of Loans 4,335 -
Non-Interest Income 2,275 454
Non-Interest Expense 23,248 12,665
Pre-tax Income 3,770 2,575
Income Tax Expense 1,679 -
Net Income $ 2,091 $ 2,575
California Republic Bancorp
John DeCero
President
949-270-9719
