IRVINE, Calif.--(BUSINESS WIRE)--California Republic Bancorp (OTCBB: CRPB), holding company for California Republic Bank, announced its unaudited results for the fourth-quarter 2012, reporting record quarterly net income of $5.1 million and record full-year 2012 net income of $7.7 million, on pre-tax income of $10.2 million. For the fourth-quarter 2012, the Bancorp’s basic earnings per share were $0.98. Basic earnings per share for full-year 2012 were $1.48.
The Bank reported that net interest margin in the fourth-quarter grew to 5.92% and that it achieved record quarterly net income of $5.2 million and record full-year 2012 net income of $8.1 million on pre-tax income of $10.6 million. The Bank achieved an ROAE of 16.14% and ROAA of 1.60%. The majority of the difference in net income from the Bancorp to the Bank is due to 123-R non-cash expense relating to the amortization of stock options reported at the holding company level. The Bank continued to report record growth in all major categories, including assets, loans and deposits for 2012.
CEO Jon Wilcox stated, “For 2012, we are pleased with both our financial results and the platform we have built for future growth. Our commercial banking business had another year of record growth in core deposits and loans and our indirect auto business grew according to plan with long-term, quality dealerships. We are now in an attractive position to consistently and profitably grow our auto finance business, both on a local and national level.”
President John DeCero added, “With our business lines now fully operational, we have recently expanded our auto loan production into Arizona and Texas, and have established a new call center in Las Vegas, Nevada. Both investors and Moody’s Investor Services have shown confidence in us, with Moody’s providing an Aa3 rating on the senior tranche of our first securitization. Our primary consideration in all of our expansion will always be our commitment to credit quality and building shareholder value.”
The Company also announced that its corporate headquarters were relocated in December 2012 to Irvine Towers, at 18400 Von Karman Avenue, where commercial banking, the auto finance division (CRB Auto), administration, bank operations and a new Irvine bank branch are all located. In addition, the Bank also relocated its Newport Beach branch to a new location across from Fashion Island in Newport Beach.
Fourth-Quarter and Full-Year 2012 Results:
At December 31, 2012, California Republic Bank reported total assets of $591.8 million, an increase of $186.3 million, or 45.9% above total assets as of December 31, 2011. The year-over-year growth in total assets reflects continued strong core deposit growth with record total deposits of $530.5 million, a $189.1 million, or 55.4% increase from the end of the fourth-quarter of 2011. Non-interest-bearing demand deposit accounts grew to $252.4 million compared with $139.0 million at the end of the fourth-quarter of 2011, an increase of $113.4 million, or 81.7%.
Total loans outstanding increased to $396.9 million, representing a $110.6 million, or 38.6% increase over December 31, 2011. Of the Bank’s total loans outstanding as of December 31, 2012, commercial banking and commercial real estate loans outstanding represented $306.8 million; indirect auto loans outstanding represented $90.1 million, following the $182.6 million securitization in November. Total auto loans being serviced as of December 31, 2012 were $268.5 million.
California Republic Bank continued to report strong credit quality through the fourth-quarter, with no non-performing or charged-off loans within the commercial bank portfolio and 0.35% net annualized charge-offs for its auto loan portfolio.
Fourth-Quarter 2012:
Total interest income for the Bank improved in the fourth-quarter of 2012 to $6.8 million, a $3.1 million or 80.8% increase over total interest income for the same period of 2011. Fourth-quarter net interest margin also improved to 5.92% compared with a net interest margin of 4.43% for the same period of 2011.
For the Bancorp, net income for the quarter improved to $5.1 million, $7.6 million pre-tax, driven primarily by the Company’s completion of its first securitization. Basic earnings per share for the fourth-quarter 2012 were $0.98.
The Bank reported record quarterly pre-tax earnings of $7.7 million and quarterly net income of $5.2 million compared to a net loss of $1.2 million in the fourth-quarter 2011. Return on average equity for the fourth-quarter 2012 was 38.41%, and return on average assets was 3.42%. The majority of the difference in net income from the Bancorp to the Bank during the quarter was due to 123-R non-cash expense relating to the amortization of stock options reported at the holding company level.
As reported, in November 2012 the Company completed its inaugural securitization of $182.6 million of prime automobile contracts. The Company said it intends to access the securitization markets on a regular basis, as market conditions allow.
Full-Year 2012:
For the Bank, total interest income for 2012 improved to $25.2 million, a $12.6 million or 100.5% increase over total interest income for 2011.
For the Bancorp, record 2012 pre-tax earnings were $10.2 million and net income was $7.7 million compared with a net loss of $1.9 million for 2011, a year in which the Company made significant investments in the auto finance business. In 2012, basic earnings per share for the Bancorp was $1.48.
The Bank reported record 2012 pre-tax earnings of $10.6 million and net income of $8.1 million, compared to a net loss of $1.8 million for 2011. Return on average equity for 2012 was 16.14% and return on average assets was 1.60%.
At December 31, 2012, California Republic Bank reported a Tier-1 leverage capital ratio of 9.04%, a Tier-1 risk based capital ratio of 13.32% and a total risk based capital ratio of 14.47%, each well in excess of the 5%, 6% and 10%, respectively, needed to be considered “well-capitalized” by California Republic Bank’s regulatory agencies.
About California Republic Bancorp:
California Republic Bancorp is the holding company for California Republic Bank. California Republic Bank provides loans, deposit and cash management services to individuals, companies, and their owners throughout Southern California. The Bank offers direct access to executive management and unparalleled responsiveness in order to establish long-term customer relationships. The Bank operates four full-service regional bank branches 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 in California, Arizona and Texas.
For more information, contact Jon Wilcox, CEO, or John DeCero, President, at 949-270-9700 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 | ||||||||||||
| Financial Highlights | ||||||||||||
|
December 31, |
||||||||||||
|
2011(1) |
2012(2) |
|||||||||||
| Balance Sheet - At Period End | ||||||||||||
| Cash and Due From Banks | $ | 65,407,901 | $ | 184,503,199 | ||||||||
| Due From Banks - Interest Bearing | 51,185,667 | 3,812,047 | ||||||||||
| Federal Funds Sold | - | - | ||||||||||
| Investment Securities | 633,190 | 609,762 | ||||||||||
| Loans Held to Maturity | 286,374,534 | 396,924,567 | ||||||||||
| Allowance for Loan and Lease Losses | (4,776,000 | ) | (5,158,836 | ) | ||||||||
| Premises and Fixed Assets | 1,115,712 | 1,965,084 | ||||||||||
| Other Assets | 5,636,336 | 8,397,258 | ||||||||||
| Total Assets | 405,577,340 | 591,053,081 | ||||||||||
| Non-Interest-Bearing Deposits | 138,935,145 | 252,238,570 | ||||||||||
| Interest-Bearing Deposits | 202,418,600 | 278,216,332 | ||||||||||
| Total Deposits | 341,353,745 | 530,454,902 | ||||||||||
| Other Liabilities | 16,666,623 | 5,038,514 | ||||||||||
| Shareholders' Equity | 47,556,972 | 55,559,665 | ||||||||||
| Total Liabilities & Equity | $ | 405,577,340 | $ | 591,053,081 | ||||||||
| Year-to-Date | ||||||||||||
|
December 31, |
||||||||||||
| Income Statement | 2011 | 2012 | ||||||||||
|
|
Interest Income | $ | 12,544,421 | $ | 25,163,449 | |||||||
| Interest Expense | 1,401,125 | 1,971,102 | ||||||||||
| Net Interest Income | 11,143,296 | 23,192,347 | ||||||||||
| Provision for Loan and Lease Loss | 1,993,000 | 791,082 | ||||||||||
| Net Interest Income After Provision | 9,150,296 | 22,401,265 | ||||||||||
| Non-Interest Income | 272,082 | 6,981,361 | ||||||||||
| Non-Interest Expense | 11,287,962 | 19,182,779 | ||||||||||
| Pre-Tax Income (Loss) | -1,865,584 | 10,199,847 | ||||||||||
| Income Tax | - | 2,509,856 | ||||||||||
| Net Income | -$1,865,584 | $ | 7,689,991 | |||||||||
|
(1) |
Excerpted From Audited Statements | |||||||||||
|
(2) |
Unaudited Results | |||||||||||