California Republic Bancorp. has issued a $390 million securitization backed by prime auto loans, according to a presale report from Standard & Poor’s yesterday. The offering is the second for the bank this year, and the largest issuance to date, Chief Executive Jon Wilcox said in a press release.
“We are pleased to have completed our largest securitization transaction. We have issued over $2.5 billion of auto-backed securities to date,” Wilcox said. “This transaction is our ninth auto loan securitization, and our seventh public deal.”
The loans in the trust have a weighted average Fico score of 696, but the lowest average seasoning on record at 0.69 months, down from 1.25 months in the 2015-1 Trust.
The percentage of loans in the lowest credit band – Fico scores of 500-579 – is at 1.33%, down from the previous trust’s average of 5.0%, which led to an expected cumulative net loss range is 2.70%-2.90%, according to S&P.
“Consequently, for 2015-2, we reduced our expected loss range to 2.60%-2.70%,” the report reads.
John DeCero, President of California Republic Bancorp, also commented on the bank’s securitization plans in the release.
“In 2015 we expect to execute progressively larger securitizations each quarter,” he said. “In the first quarter, our indirect loan volume placed us as the 17th largest bank indirect auto lender in the nation.”
