Integrated Commercial, Real Estate and Private Banking – One Point of Contact
Nov 22, 2011

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.

Press Release 3rd Qtr 2011 – PDF version

NEWPORT BEACH, Calif., November 16, 2011 – 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. Subsequent to 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 4th quarter 2011 or early 2012. Additionally, in the 3rd 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 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.




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