California Republic Bank Announces Successful Completion of a $238 Million Prime Automobile Securiti

California Republic Bank Announces Successful Completion of a $238 Million Prime Automobile Securitization

IRVINE, Calif.--(BUSINESS WIRE)-- California Republic Bancorp (OTCBB:CRPB), today announced that its wholly-owned subsidiary, California Republic Bank, successfully completed a prime automobile securitization in which $238 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 four note classes issued by the securitization trust created by the Bank as follows:

Class       Size       Coupon       Ratings (sf) (1)
A1       $ 34.7       0.40 %       P-1/R1(H)
A2 $ 178.3 1.41 % Aa3/AA
B $ 11.9 2.24 % A2/A
C $ 13.1 3.25 % Baa3/BBB
Total $ 238.0

(1) 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 a private placement transaction. California Republic Bank will receive a 1% servicing fee and continue to service the underlying receivables on behalf of the noteholders and certificateholders for the life of the contracts.

"Securitizations are an important aspect of our business model, and we are pleased by the size and overall execution of this deal," commented Jon Wilcox, CEO. President John DeCero added, "By executing these transactions and retaining the servicing of these portfolios, we maximize our profits while creating a path for additional expansion of our platform in a very capital efficient manner."

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 four full-service bank branches 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 throughout California, Arizona and Texas, and operates a customer service center in Las Vegas, Nevada.

For more information, contact Jon Wilcox, CEO, or John DeCero, President at 949-270-9719. You can also visit the Company's website at www.crbnk.com.

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
John DeCero, President
949-270-9797

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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