California Republic Bank Announces Strong 1st Quarter

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--

California Republic Bank (CRB) CRPB announced its results for the quarter ending March 31, 2010, citing another successful quarter highlighted by an 80-percent year-over-year increase in total assets as well as significant increases in core deposits and loans.

Highlights for quarter ending March 31, 2010

• Total assets of $294.1 million, an increase of 80% over the 1^st quarter of 2009.
• Total deposits of $247.9 million, an increase of 116% over the 1^st quarter of 2009.
• Total loan outstandings at $145.7 million, an increase of 77% over the 1^st quarter of 2009.
• Excluding non-capital charges of $128.7 thousand, the Bank achieved its first cash flow positive quarter, adding $75.2 thousand to capital, with a net loss of $53.5 thousand.
• Zero non-performing, past due or charged off loans.
• Capital ratios continued to greatly exceed all regulatory requirements to be “well-capitalized.”

“We think these results validate the expertise, products, experience and service we offer our clients,” said Jon Wilcox, President. “We believe we have something that is unique to the industry: the unmatched service of a private bank and access to the lending expertise and knowledge of a great commercial and real estate bank.”

1st Quarter 2010 details

On March 31, 2010, California Republic Bank reported total assets of $294.1 million, an increase of $131.0 million, or 80% above total assets as of March 31, 2009. The year-over-year growth in total assets reflects continued strong core deposit growth with total deposits at $247.9 million, a $133.0 million or 116% increase from the 1st quarter of 2009. Non-interest-bearing demand deposit accounts grew to $64.8 million, compared to $25.3 million at the end of the 1st quarter of 2009, an increase of $39.5 million or 160%. Core interest-bearing deposits grew to $183.0 million compared to $89.6 million, or 104% growth over the prior year.

Total loan commitments were reported at $190.1 million as of March 31, 2010, with loan outstandings at $145.7 million, representing a $63.3 million increase or 77% from the 1st quarter of 2009. Because California Republic Bank continues to report strong credit quality, with zero non-performing loans, no past due loans and no charged-off loans, management believes that the Bank’s allowance for loan and lease losses is more than adequate.

The Bank reported a Tier 1 leverage capital ratio of 16.12%, a Tier 1 risk based capital ratio of 29.17% and a total risk based capital ratio of 30.42%, well in excess of the 5%, 6% and 10% respectively needed to be considered “well-capitalized” by the FDIC.

“Just over two years in, we’re exactly where we wanted to be,” said John DeCero, Vice Chairman. “We’re demonstrating that with the right plan and the right people we can grow the balance sheet without sacrificing loan quality or our high standards. With our infrastructure and team fully in place, we look forward to our future opportunities.”

About California Republic Bank

California Republic Bank is a full-service commercial bank offering direct access to executive management and individualized services through highly qualified Relationship Managers and state-of-the-art technology. The Bank's clients enjoy the unmatched service of a private bank with access to the lending expertise and knowledge of a commercial and real estate bank, delivered through its regional Newport Beach and Beverly Hills locations.

California Republic Bank provides credit products, including term loans, bridge loans, revolving lines of credit both secured and unsecured, and a suite of deposit and cash management services.

For more information, contact Jon Wilcox, President; or John DeCero, Vice Chairman; at 949-270-9700 in Orange County or 424-230-5400 in Los Angeles. Please also visit our website at www.crbnk.com. The Bank's headquarters is located at 1400 Newport Center Drive, Suite 150, Newport Beach, California, 92660. The Bank's West Los Angeles branch is located at 100 North Crescent Drive, Suite 125, Beverly Hills, California, 90210.

The Board of Directors includes:

- Inside Directors Jon Wilcox, President; and John DeCero, Vice Chairman of the Board.

- Outside Directors Robert Barth, Chairman of the Board; John Bendheim, President of Bendheim Enterprises, Inc; Marc Brutten, Entrepreneur and CEO of Westcore Holdings, San Diego, California; 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, Boca Raton, Florida and J. Scott Watt, President and CEO of the Watt Group of Companies.

For information regarding the purchase or sale of the Bank’s stock, contact Michael Natzic of Stone & Youngberg at 800-288-2811.

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.

CALIFORNIA REPUBLIC BANK
Balance Sheets and Income Statements for the Quarter Ended March 31, 2010, and the Year Ended December 31, 2009
Dollars in Thousands
							March 31, 2010				December 31, 2009
							Unaudited				(1)
Balance Sheet - At Period End
Cash and Due From Banks								$100,636				$99,675
Due From Banks - Interest Bearing								46,923				30,122
Federal Funds Sold								-				-
Investment Securities								-				-
Loans Held for Sale								4,411				4,411
Loans Held to Maturity								141,324				142,691
Allowance for Loan and Lease Losses								(2,170	)			(2,170	)
Premises and Fixed Assets								956				1,004
Other Assets								2,032				2,115
Total Assets								$294,112				$277,848
Non-Interest-Bearing Deposits								64,822				50,999
Interest-Bearing Deposits								183,043				180,332
Other Liabilities								258				600
Shareholders' Equity								45,989				45,917
Total Liabilities & Equity								$294,112				$277,848
Income Statement
Interest Income								$2,100				$6,433
Interest Expense								454				1,603
Net Interest Income								1,646				4,830
Provision for Loan and Lease Loss								0				1,220
Net Interest Income After Provision								1,646				3,610
Non-Interest Income								39				79
Non-Interest Expense								1,739				7,092
Net Loss								($54	)			($3,403	)
(1)	Excerpted from audited financial statements

CALIFORNIA REPUBLIC BANK
Statement of Cash Flows for the Quarter Ended March 31, 2010, and the Year Ended December 31, 2009
Dollars in Thousands
						March 31, 2010					December 31, 2009
						Unaudited					(1)
Cash Flows from Operating Activities
Net Earnings (Loss)								($54	)			($3,403	)
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating Activities
Depreciation and Amortization								61				234
Provision for Loan Losses								0				1,220
Loss on Sale of Securities								0				47
Stock Based Compensation								126				518
Origination of Loans Held for Sale								0				(4,411	)
Other Items								(259	)			(490	)
Net Cash Provided by Operating Activities								($126	)			($6,285	)
Cash Flows from Investing Activities
Net (Increase), Decrease in Interest-Bearing Deposits								(16,801	)			5,584
Sale of Held-to-Maturity Securities								0				2,359
Maturities of Held-to-Maturity Securities								0				5,000
Purchase of Held-to-Maturity Securities								-				-
Net (Increases), Decrease in Loans								1,367				(67,045	)
Purchase of Federal Home Loan Bank Stock								0				(412	)
Purchases of Premises and Equipment								(13	)			(114	)
Net Cash Used in Investing Activities								($15,447	)			($54,628	)
Cash Flows from Financing Activities
Net Increase in Demand Deposits								13,823				103,414
Net Increase in Interest-Bearing Deposits								2,711				8,845
Net Cash Provided by Financing Activities								$16,534				$112,259
Increase (Decrease) in Cash and Equivalents								961				51,346
Cash and Cash Equivalents Beginning of Period								99,675				48,329
Cash and Cash Equivalents, End of Period								$100,636				$99,675