IRVINE, Calif.--(BUSINESS WIRE)--California Republic Bancorp (“CRB” or “Company”) (OTCBB: CRPB), a bank holding company for California Republic Bank (“Bank”), announced the Bank had successfully completed a prime automobile loan securitization transaction in which $225 million in notes were sold in an underwritten public offering registered with the Securities and Exchange Commission. All of the Class A notes received “AAA” credit ratings from two separate nationally recognized statistical rating organizations, Standard & Poor’s and DBRS.
The securitization structure included six note classes issued by the securitization trust created by the Bank as follows:
| Class | Amount | Coupon | Credit Rating (sf) (1) | |||||||||||
| A-1 | $ | 31,400,000 | 0.22 | % | A-1+ /R-1(high) | |||||||||
| A-2 | $ | 60,000,000 | 0.54 | % | AAA / AAA | |||||||||
| A-3 | $ | 57,500,000 | 0.91 | % | AAA / AAA | |||||||||
| A-4 | $ | 55,060,000 | 1.57 | % | AAA / AAA | |||||||||
| B | $ | 11,590,000 | 2.34 | % | A+ / A | |||||||||
| C | $ | 9,450,000 | 3.29 | % | BBB / BBB | |||||||||
| $ | 225,000,000 | |||||||||||||
| (1) Credit Ratings from Standard & Poor's and DBRS, respectively | ||||||||||||||
The Bank will continue to service the underlying receivables on behalf of the trust. For servicing the portfolio, the Bank will receive an annual servicing fee of 1.0%.The Bank also announced that it sold all remaining residual interest in the securitized receivables through a cash sale of the underlying ownership certificates of the securitization trust through a private placement transaction under Rule 144A to qualified institutional buyers.
“We are pleased to have completed our fifth auto loan securitization transaction and our third public deal,” stated Jon Wilcox, Chief Executive Officer of California Republic Bancorp. “Executing the cash sale of automobile loans and the corresponding residual interest is an important strategic component in the significant growth of our auto lending platform. We’re pleased with the execution of the transaction and the overall interest we received from investors on our notes, including the participation of 26 distinct capital markets investors including 5 new capital market buyers to the platform,” President John DeCero commented.
“In this latest securitization we were 3 times oversubscribed, reflecting strong investor demand for our auto loans and the confidence that Wall Street has put in our underwriting and servicing platform. We were also pleased to have achieved another new milestone for CRB Auto originating over $100 million in auto loans in a single month for May of 2014, which is ahead of our plan.”
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 acted as the underwriter and sole bookrunner, and as the sole placement agent for the certificates. Mitchell Silberberg & Knupp LLP acted as issuer’s counsel.
About California Republic Bancorp:
California Republic Bancorp is the holding company for California Republic Bank and CRB Auto, Inc. California Republic Bank is a full-service commercial bank providing loans, deposit and cash management services to individuals, businesses, and investors. The Bank offers its clients direct access to decision makers, unparalleled responsiveness, seasoned Relationship Managers and state-of the-art technology. The Bank has four full-service branches serving Southern California located in Newport Beach, Beverly Hills, Irvine, and Westlake Village. The Bank also owns and operates an indirect auto finance business and a separate wholly owned subsidiary, CRB Auto, Inc. which purchases auto contracts from both franchised and independent automobile dealerships throughout California, Arizona, Texas, Nevada, and Iowa.
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.
California Republic Bancorp’s Board of Directors includes:
Inside Directors: Jon Wilcox, CEO and 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; Bob Din, CEO of En Pointe Technologies; John Hagestad, Managing Partner of SARES-REGIS Group; Warren S. Orlando, Chairman, 1st United Bancorp Inc.; and J. Scott Watt, President and CEO of the Watt Group of Companies.
For information regarding the purchase or sale of California Republic Bancorp’s stock, contact Michael Natzic of Crowell, Weedon & Co. at 800-288-2811.
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) the ability to successfully operate CRB Auto, Inc. as a separate subsidiary of the Bank; 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.
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