Republic Bank of Arizona Announces Unaudited Financial Results For the Quarter Ending December 31, 2019
Fourth Quarter Featured a Change in Leadership and Strong Loan Funding
PHOENIX, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Republic Bank of Arizona (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $19,000, or $0.01 per share, for the quarter ended December 31, 2019 and $449,000, or $0.25 per share, for the twelve months ended December 31, 2019 as compared to a net income of $326,000, or $0.19 per share, for the quarter ended December 31, 2018 and $1,107,000, or $0.63 per share, for the twelve months ended December 31, 2018. Prior year earnings of $0.63 per share were comprised of $0.45 per share attributable to core operations and $0.18 per share due to net one-time items. Current year earnings of $0.25 per share reflect the impact of the strategic decision to open our second location and were comprised of $0.27 per share attributable to core operations reduced by one-time charges in the fourth quarter totaling $0.02 per share.
On November 5th, Brian Ruisinger, the Bank’s former CFO, succeeded Ralph Tapscott as President and CEO.
President and CEO Brian Ruisinger stated, “We finished 2019 with our strongest month of loan growth for the year solidifying a positive trend and producing a double digit growth percentage for the year. Our pipeline is robust, generating positive momentum into 2020. We launched several new products including our RBAZ Mobile Banking app (effective January 1st) and are pursuing new lines of business in 2020. We have assembled a great team capable of growth and improved earnings while maintaining our high Safety and Soundness ratings. In December, we completed our periodic regulatory examination conducted by Federal and State Regulators and are pleased to report a successful outcome.”
Mr. Ruisinger continued, “Our capital is strong, our asset quality is exceptional, and our team is committed to building relationships that result in loan and deposit growth and improving core earnings. The Bank’s performance continues to be reflected in our Bauer Five-Star bank rating.”
December 31, 2019 Highlights Include:
- Total loans of $70,192,000 increased $8,175,000 or 13.2% from December 31, 2018.
- Total deposits of $90,406,000 increased $2,162,000 or 2.5% from December 31, 2018.
- Total interest income is down $100,000 to $1,203,000 for the quarter ended December 31, 2019 compared to $1,303,000 for the quarter ended December 31, 2018 due to a reduction of excess cash balance, interest rate decreases by the Federal Reserve and loan growth occurring late in the quarter.
- Total non-interest expense is up $153,000 to $997,000 for the quarter ended December 31, 2019 compared to $844,000 for the quarter ended December 30, 2018 due to an increase in personnel and other costs associated with the Scottsdale branch.
The Bank remains “Well Capitalized” as follows:
| December 31, 2019 (%) | Ratio to be Well Capitalized (%) | ||
| Leverage Ratio | 15.04 | 5.00 | |
| Common Equity Tier 1 | 21.50 | 6.50 | |
| Tier 1 Capital to Risk Weighted Assets | 21.50 | 8.00 | |
| Total Capital to Risk Weighted Assets | 22.75 | 10.00 | |
About the Company
Republic Bank of Arizona is a locally owned, community bank in Phoenix and Scottsdale, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, on-line banking to individuals, businesses and professionals. The Bank was established in April 2007 and is headquartered at 645 E. Missouri Avenue, Suite 108, Phoenix, AZ. Our second location at 6909 E. Greenway Parkway, Suite 150, Scottsdale, AZ opened mid-July. The Bank is traded over-the-counter as RBAZ. For further information, please visit our web site: .
Forward-looking Statements
This press release may include forward-looking statements about RBAZ, for which the Bank claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the Bank’s possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, borrower capacity to repay, operational factors and competition in the geographic and business areas in which the Bank conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Bank assumes no obligation to update any forward-looking statement.
| Unaudited Summary Financial Information | ||||||||||
| For the three months | For the twelve months | |||||||||
| ended December 31, | ended December 31, | |||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||
| (dollars in thousands, except per share data) | ||||||||||
| Summary Income Data: | ||||||||||
| Interest income | $1,203 | $1,303 | $5,153 | $5,123 | ||||||
| Interest expense | 258 | 203 | 1,024 | 714 | ||||||
| Net interest income | 945 | 1,100 | 4,129 | 4,409 | ||||||
| Provision for (reduction in) loan losses | - | (150 | ) | - | (450 | ) | ||||
| Non-interest income | 38 | 35 | 116 | 328 | ||||||
| Non-interest expense | 997 | 844 | 3,717 | 3,522 | ||||||
| Realized gain (loss) on sales of securities | - | - | - | (116 | ) | |||||
| Income (loss) before income taxes | (14 | ) | 441 | 528 | 1,549 | |||||
| Provision for (reduction in) income tax | (33 | ) | 115 | 79 | 442 | |||||
| Net income | $19 | $326 | $449 | $1,107 | ||||||
| Per Share Data: | ||||||||||
| Shares outstanding end-of-period | 1,806 | 1,744 | 1,806 | 1,744 | ||||||
| Earnings per common share | $0.01 | $0.19 | $0.25 | $0.63 | ||||||
| Cash dividend declared | $- | $- | $512 | $- | ||||||
| Total shareholders’ equity | $15,746 | $15,194 | $15,746 | $15,194 | ||||||
| Book value per share | $8.72 | $8.71 | $8.72 | $8.71 | ||||||
| Selected Balance Sheet Data: | ||||||||||
| Total assets | $107,891 | $104,105 | $107,891 | $104,105 | ||||||
| Securities available-for-sale | 20,046 | 21,888 | 20,046 | 21,888 | ||||||
| Securities held-to-maturity | 5,796 | 6,230 | 5,796 | 6,230 | ||||||
| Loans | 70,192 | 62,017 | 70,192 | 62,017 | ||||||
| Allowance for loan losses | 1,117 | 1,184 | 1,117 | 1,184 | ||||||
| Deposits | 90,406 | 88,244 | 90,406 | 88,244 | ||||||
| Other borrowings | - | - | - | - | ||||||
| Shareholders’ equity | 15,746 | 15,194 | 15,746 | 15,194 | ||||||
| Performance Ratios: | ||||||||||
| Return on average shareholders’ equity (annualized) (%) | 1.92 | 8.75 | 2.85 | 7.70 | ||||||
| Net interest margin (%) | 3.75 | 4.00 | 3.98 | 3.87 | ||||||
| Average assets | $104,798 | $110,668 | $107,624 | $114,344 | ||||||
| Return on average assets (annualized) (%) | 0.07 | 1.18 | 0.42 | 0.97 | ||||||
| Shareholders’ equity to assets (%) | 14.59 | 14.59 | 14.59 | 14.59 | ||||||
| Efficiency ratio (%) | 99.80 | 73.95 | 86.36 | 73.96 | ||||||
| Asset Quality Data: | ||||||||||
| Nonaccrual loans | $303 | $- | $303 | $- | ||||||
| Troubled debt restructurings | $535 | $563 | $535 | $563 | ||||||
| Other real estate | $- | $- | $- | $- | ||||||
| Nonperforming loans | $494 | $- | $494 | $- | ||||||
| Nonperforming loans to total assets (%) | 0.46 | - | 0.46 | - | ||||||
| Nonperforming loans to total loans (%) | 0.70 | - | 0.70 | - | ||||||
| Reserve for loan losses to total loans (%) | 1.59 | 1.91 | 1.59 | 1.91 | ||||||
| Reserve for loan losses to nonperforming loans (%) | 226.11 | * | 226.11 | * | ||||||
| Net charge-offs for period | $88 | $5 | $67 | $5 | ||||||
| Average loans | $66,060 | $64,897 | $64,846 | $63,356 | ||||||
| Ratio of charge‑offs to average loans (%) | 0.13 | 0.01 | 0.10 | 0.01 | ||||||
| Regulatory Capital Ratios: | ||||||||||
| Tier 1 leverage capital ratio (%) | 15.04 | 14.11 | 15.04 | 14.11 | ||||||
| Common Equity Tier 1 (%) | 21.50 | 25.83 | 21.50 | 25.83 | ||||||
| Tier 1 risk-based capital ratio (%) | 21.50 | 25.83 | 21.50 | 25.83 | ||||||
| Total risk-based capital ratio (%) | 22.75 | 27.09 | 22.75 | 27.09 | ||||||
Contact: Brian Ruisinger,
President and Chief Executive Officer
Phone: 602.280.9404
Email:
