CALIFORNIA REPUBLIC BANK ANNOUNCES THE SUCCESSFUL COMPLETION OF ITS FIRST SECURITIZATION OF NEARLY $183 MILLION OF PRIME AUTOMOBILE LOANS
NEWPORT BEACH, CA, November 8, 2012 – California Republic Bancorp (OTCBB:CRPB), announced that its wholly-owned subsidiary, California Republic Bank, closed its first securitization today amounting to nearly $183 million of prime indirect automobile loans. In the securitization, $182.56 million in notes backed by California Republic’s automobile loans were sold to qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act.
The securitization structure included three note classes issued by the securitization trust created by the Bank, all of which were oversubscribed, as follows:
Class Size Coupon Ratings (sf)(1)
A $155,010,000 _1.18__% Aa3/A(high)
B $ 13,770,000 _1.76__% A1/A
C $ 13,780,000 _3.00__% Baa3/BBB
Ratings from Moody’s and DBRS, respectively.
The Bank also announced that it sold all remaining residual interests in the securitized receivables through a sale of the underlying ownership certificates of the securitization trust through the private placement transaction. California Republic Bank will continue to service the underlying receivables on behalf of the noteholders and certificateholders.
“This is an important milestone for our company,” commented Jon Wilcox, CEO. “It reflects the strong growth in our indirect automobile platform since its start in July 2011. President John DeCero added, “By accessing the securitization markets as we have in this transaction, it has provided us the ability to continue to accelerate growth while efficiently maximizing the strong capital base of the Bank.”
This announcement of the sale of the notes included in the securitization and the ownership certificates of the securitization trust appears as a matter of record only. Credit Suisse LLC acted as the structuring agent and the sole bookrunner for this transaction, and Mitchell Silberberg & Knupp LLP acted as issuer’s counsel.
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 with the goal of establishing long-term relationships. The Bank operates three full-service regional branch hubs based in Newport Beach, Beverly Hills and Westlake Village.
The Bank also has an indirect auto finance division headquartered in Irvine, California, which purchases automobile installment sale contracts from both franchised and independent automobile dealerships.
For more information, contact Jon Wilcox, Chief Executive Officer, or John DeCero, President, at 949-270-9700 or visit the company’s website at www.crbnk.com.
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.