California Republic Bancorp (OTCBB: CRPB), holding company for California Republic Bank, announced its results for the third quarter of 2012, reporting quarterly net income of $1.91 million, and record growth in all major categories including assets, loans and deposits.
CEO Jon Wilcox stated, “During the quarter we were very pleased with our continued loan growth, and our ability to respond to that growth from a liquidity standpoint by generating over $100 million of new core deposits. We understand the importance of paying attention to both sides of the balance sheet and continue to execute our plan accordingly.”
President John DeCero added, “Our credit discipline is at the heart of everything we do, as is our commitment to generating strong yielding assets funded by low cost core demand deposits. Our attention to and execution of this strategy has translated into rising net interest margins and quarterly profits.”
3rd Quarter 2012 Results:
At September 30, 2012, California Republic reported total assets of $585.5 million, an increase of $215.4 million, or 58.29% above total assets as of September 30, 2011. The year-over-year growth in total assets reflects continued core deposit growth with record total deposits of $532.9 million, a $212.1 million, or 66.1% increase from the third quarter of 2011, and a $101.1 million increase from last quarter. Non-interest-bearing demand deposit accounts grew to $228.4 million compared with $121.1 million at the end of the third quarter of 2011, an increase of $107.3 million, or 88.6%. Total loans outstanding increased to a record $487.5 million, representing a $254.3 million, or 109.1% increase over the third quarter of 2011. Of the Bank’s total loans outstanding, commercial banking and commercial real estate loans outstanding represented $290.7 million and the indirect auto loan portfolio represented $196.8 million. California Republic continued to report strong credit quality through the third quarter, with no non-performing or charged-off loans within the commercial bank portfolio and 12 basis points of charge-offs for the auto portfolio.
Total interest income improved in the third quarter of 2012 to $7.4 million, a $4.3 million or 138.7% increase over total interest income for the same period of 2011. Third quarter net interest margin also improved to 5.90%, compared with a net interest margin of 3.54% for the same period of 2011. Net income for the quarter improved to $1.91 million, compared with a net loss of $(412) thousand for the third quarter of 2011. Year-to-date net income was $2.58 million compared with a year-to-date net loss of $(591) thousand for the nine months ended September 30, 2011.
At September 30, 2012, California Republic Bank reported a Tier-1 leverage capital ratio of 9.27%, a Tier-1 risk based capital ratio of 9.80% and a total risk based capital ratio of 11.05%, well in excess of the 5%, 6% and 10%, respectively, needed to be considered “well-capitalized” by California Republic Bank’s regulatory agencies.
California Republic Bank stated, consistent with maximizing shareholder value and meeting its regulatory capital requirements, that it may sell up to a significant portion of its auto loans from time to time, either through servicing retained securitizations or whole loan sales, as market conditions permit.