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CAL REP BANCORP INC. ANNOUNCES 1991 EARNINGS

 CAL REP BANCORP INC. ANNOUNCES 1991 EARNINGS
 BAKERSFIELD, Calif., Jan. 29 /PRNewswire/ -- Cal Rep Bancorp Inc.


(NASDAQ: CRBI), the holding company of California Republic Bank, today announced net income of $1,163,282 or $0.42 per share for the full year 1991. This compares with 1990 earnings of $5,067,488 or $1.83 per share. For the fourth quarter of 1991, the company reported a loss of $1,634,413 or $0.60 per share. This compares with a profit of $238,092 or $0.09 per share in the third quarter of 1991 and with a profit of $156,373 or $0.06 per share in the fourth quarter of 1990. The company had previously disclosed the expectation of a loss in the fourth quarter. "This was primarily the result of increased provisions for loan losses and joint venture investments," said President and Chief Executive Officer Thomas H. Shaffer. Chairman of the Board Leo J. Pierucci added, "While the national recession has been more prolonged and severe than many economists anticipated, we believe it is important to continue our prudent approach towards building our reserves."
 During the fourth quarter, the bank provided an additional $4,000,000 to the loan loss reserve, bringing the provision for the full year to $7,800,000. The loan loss provision for the third quarter was $2,200,000 and for the full year 1990 was $5,400,000. "This increase reflects management's aggressive program to restructure troubled real estate loans and to dispose of foreclosed properties at acceptable market prices," said Shaffer. He continued by saying, "The bank's exposure to real estate construction is limited primarily to single family residential projects in our local markets."
 The allowance for loan losses was increased to $10,291,150 or 2.65 percent of loans as of Dec. 31, 1991 from $7,960,280 or 2.36 percent of loans at the end of 1990. Shaffer explained that the bank continues to take a conservative approach during these difficult times. He said, "Management has built reserves to higher levels in order to continue our aggressive program to manage problem credits in the real estate area and to position the bank for stronger performance in the future."
 Non-performing loans decreased to $5,042,000 or 1.30 percent of total loans as of Dec. 31, 1991 from $11,013,000 or 3.3 percent of total loans as of year-end 1990, while other real estate owned (ORE) rose to $15,845,472 at the end of 1991 from $5,146,191 at the year-end of 1990.
 The bank also provided during the fourth quarter an additional $500,000 to the reserve for joint venture investments, bringing the provision for the full year to $1,475,000. "Analysis of our joint venture projects, which are primarily real estate intensive, indicated that further set-asides for our joint venture reserve were necessary," continued Shaffer. The joint venture provision for the third quarter of 1991 was $200,000 and for the full year 1990 was $600,000.
 Shareholders' equity at year-end was $39,085,115 or 6.92 percent of total assets as compared to $39,020,166 or 7.10 percent at year-end 1990. Equity plus the allowance for loan losses rose from 8.58 percent at the end of 1990 to 8.74 percent at the end of 1991. "This reflects our strong capital base, which continues to serve as a prudent reserve against potential losses during these uncertain times," commented Pierucci. He added, "Despite the fourth quarter loss, the company continued to pay its quarterly cash dividends throughout 1991 from earnings generated during the year."
 In 1991, the bank experienced an increase of 2.7 percent in total assets, which ended the year at $564,650,424, up from $549,756,920 as of year-end 1990. The bank's loans at year-end totaled $388,065,081, an increase of 15.2 percent over the year-end 1990 total of $336,915,897. Much of this loan growth was achieved during the fourth quarter. Total deposits grew by 3.7 percent from $500,991,541 at the end of 1990 to $519,625,010 at the end of 1991.
 Net interest income declined in 1991 to $30,602,371 from $31,396,739 despite a relatively flat level of average earning assets. This decline reflects a reduction in the net interest margin from 6.78 percent in 1990 to 6.60 percent in 1991, which was due in part to falling market interest rates. A large proportion of the bank's loans are priced based on the prime rate, which declined from 10.5 percent to 6.5 percent during the course of the year. Deposit rates did not experience as sharp a decline, thereby negatively impacting the net interest margin.
 Cal Rep Bancorp Inc. is the one-bank holding company for California Republic Bank. The bank operates 14 branches. These include offices in the Metropolitan Bakersfield area, Frazier Park, Tehachapi, Lake Isabella and in Northern Los Angeles County in the communities of Lancaster, Palmdale and Quartz Hill.
 CAL REP BANCORP INC.
 Statements of Financial Condition
 (Unaudited)
 Dec. 31,
 1991 1990
 Assets:
 Cash and due from banks $41,025,898 $51,445,764
 Interest bearing deposits in
 other financial institutions 2,158,000 5,412,000
 Federal funds sold --- 2,200,000
 Investment securities 96,122,293 123,715,396
 Loans and leases 392,019,495 339,062,093
 Less: Unearned income (1,187,621) (268)
 Deferred loan fees (2,766,793) (2,145,928)
 Total loans and leases 388,065,081 336,915,897
 Less: Allowance for possible
 loan losses (10,291,150) (7,960,280)
 Net loans and leases 377,773,931 328,955,617
 Bank premises and equipment
 (net) 12,233,703 12,717,260
 Accrued interest receivable 4,796,258 5,619,006
 Other assets 30,540,341 19,691,877
 Total assets $564,650,424 $549,756,920
 Liabilities:
 Deposits
 Non-interest bearing $112,530,594 $106,909,309
 Interest bearing 407,094,416 394,082,232
 Total deposits 519,625,010 500,991,541
 Federal funds purchased 1,600,000 1,300,000
 Accrued interest payable
 and other liabilities 4,340,299 8,445,213
 Total liabilities 525,565,309 510,736,754
 Shareholders' Equity:
 Common stock 15,178,138 15,178,138
 Retained earnings 23,906,977 23,842,028
 Total shareholders' equity 39,085,115 39,020,166
 Total liabilities and
 shareholders' equity $564,650,424 $549,756,920
 CAL REP BANCORP INC.
 Statements of Income
 (Unaudited)
 For the twelve months ended
 Dec. 31,
 1991 1990
 Interest and fees on
 earning assets $52,060,521 $56,213,478
 Interest expense 21,458,150 24,816,739
 Net interest income 30,602,371 31,396,739
 Provision for possible
 loan losses 7,800,000 5,400,000
 Net interest income after
 provision for possible
 loan losses 22,802,371 25,996,739
 Non-interest income 8,986,319 7,393,651
 Non-interest expense 30,587,993 25,968,902
 Income before income taxes 1,200,697 7,421,488
 Income taxes 37,415 2,354,000
 Net income $1,163,282 $5,067,488
 Earnings per common share $0.42 $1.83
 -0- 1/29/92
 /CONTACT: M. Linda Quinones-Vaughan, assistant VP of Cal Rep Bancorp, 805-395-5800/
 (CRBI) CO: Cal Rep Bancorp Inc. ST: California IN: FIN SU: ERN


KJ-EH -- LA027 -- 5007 01/29/92 19:09 EST
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