PHOENIX, Jan. 28, 2023 (GLOBE NEWSWIRE) — RBAZ Bancorp, Inc. (OTCBB:RBAZ) (the “Company”), parent company of Republic Bank of Arizona (the “Bank” or “RBAZ”), announced a consolidated net income of $373,000, or $0.21 per share, for the quarter ended December 31, 2023 and $1,918,000, or $1.06 per share, for the twelve months ended December 31, 2023.
Republic Bank of Arizona announced a net income of $447,000, or $0.25 per share, for the quarter ended December 31, 2023 and $2,114,000, or $1.17 per share, for the twelve months ended December 31, 2023 as compared to a net income of $460,000, or $0.25 per share, for the quarter ended December 31, 2020 and $854,000, or $0.47 per share, for the twelve months ended December 31, 2020. Current year Bank earnings of $1.17 per share were comprised of $0.82 per share attributable to core operations and $0.43 per share due to impacts from the Paycheck Protection Program (“PPP”), offset by $0.08 per share attributable to the settlement of outstanding litigation. Prior year Bank earnings of $0.47 per share were comprised of $0.26 per share attributable to core operations and $0.21 per share due to impacts from PPP.
President and CEO Brian Ruisinger stated “Our fourth quarter performance saw record loan growth that occurred very late in the quarter, to be reflected in earnings in Q1 2023. As a result of our exceptional 2023 performance, annual incentives were earned in Q4 driving our expense line higher than in comparative quarters. We are excited to see our team achieve results above and beyond strategic goals and are thrilled to reward them for their efforts.”
Mr. Ruisinger continued, “RBAZ remains well capitalized and poised for continued growth in its mission to be the premier Arizona based bank, as reflected in our Bauer Five-Star bank rating. The Phoenix banking market has seen consolidation in recent months with two Arizona chartered banks announcing plans to sell to out of state entities. RBAZ remains committed to its independence and true Arizona community banking roots.”
December 31, 2023 Bank Highlights Include:
- Total loans of $135,396,000 increased $25,475,000, or 23.2%, from December 31, 2020. This increase consisted of $35,395,000, or 32.2%, in net portfolio loan growth, offset by $9,920,000 of PPP loan forgiveness received during the year.
- Total deposits of $205,530,000 were up $38,943,000, or 23.4%, from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020, deepened existing relationships and earned new business through increased marketing efforts and online presence.
- Total interest income increased $109,000 to $1,953,000 for the quarter ended December 31, 2023 outpacing total interest income of $1,844,000 for the same period of the prior year equating to an increase of 5.9%.
- Cost of funds was reduced 49.3% to 0.34% for the quarter ended December 31, 2023 from 0.67% for the quarter ended December 31, 2020.
- Total non-interest expense is up $307,000 to $1,237,000 for the quarter ended December 31, 2023 compared to $930,000 for the same period of the prior year resulting primarily from four additional full-time employees and incentives earned as the result of achieving 2023 annual goals.
The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework adopted January 1, 2020 as follows:
| December 31, 2023 (%) |
Ratio to be Well Capitalized (%) |
|
| CBLR ratio | 10.55 | 8.50 |
About the Company
RBAZ Bancorp, Inc. was established on June 10, 2023 as a single-bank holding company for its Arizona state-chartered bank subsidiary, Republic Bank of Arizona. The Company is traded over-the-counter as RBAZ.
About the Bank
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 and mobile 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 is at 6909 E. Greenway Parkway, Suite 150, Scottsdale, AZ. The Bank is the wholly-owned subsidiary of RBAZ Bancorp, Inc. For further information, please visit our web site: www.republicbankaz.com.
Forward-looking Statements
This press release may include forward-looking statements about the Company and the Bank (collectively referred to herein as the “Company”), for which the Company 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 Company’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 Company 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 Company assumes no obligation to update any forward-looking statement.
| Summary Financial Information (unaudited) | ||||||||||||
| RBAZ Bancorp, Inc. (consolidated)* |
Republic Bank of Arizona (Bank only) |
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| For the three months | For the twelve months | For the three months | For the twelve months | |||||||||
| ended December 31 | ended December 31, | ended December 31, | ||||||||||
| 2021 | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||
| (dollars in thousands, except per share data) | ||||||||||||
| Summary Income Data: | ||||||||||||
| Interest income | $1,953 | $7,544 | $1,953 | $1,844 | $7,544 | $6,137 | ||||||
| Interest expense | 257 | 945 | 175 | 304 | 761 | 1,187 | ||||||
| Net interest income | 1,696 | 6,599 | 1,778 | 1,540 | 6,783 | 4,950 | ||||||
| Provision for loan losses | 52 | 176 | 52 | 29 | 176 | 100 | ||||||
| Non-interest income | 73 | 386 | 73 | 67 | 386 | 153 | ||||||
| Non-interest expense | 1,255 | 4,328 | 1,237 | 930 | 4,248 | 3,846 | ||||||
| Realized loss on sales of securities | – | 7 | – | – | 7 | 2 | ||||||
| Income before income taxes | 462 | 2,474 | 562 | 648 | 2,738 | 1,155 | ||||||
| Provision for income tax | 89 | 556 | 115 | 188 | 624 | 301 | ||||||
| Net income | $373 | $1,918 | $447 | $460 | $2,114 | $854 | ||||||
| Per Share Data: | ||||||||||||
| Shares outstanding end-of-period | 1,805 | 1,805 | 1,807 | 1,807 | 1,807 | 1,807 | ||||||
| Earnings per common share | $0.21 | $1.06 | $0.25 | $0.25 | $1.17 | $0.47 | ||||||
| Diluted earnings per common share | $0.20 | $1.01 | $0.24 | $0.25 | $1.12 | $0.46 | ||||||
| Cash dividend declared | $- | $- | $- | $- | $- | $- | ||||||
| Total shareholders’ equity | $18,672 | $18,672 | $24,360 | $16,982 | $24,360 | $16,982 | ||||||
| Book value per share | $10.34 | $10.34 | $13.48 | $9.40 | $13.48 | $9.40 | ||||||
| Selected Balance Sheet Data: | ||||||||||||
| Total assets | $231,420 | $231,420 | $231,420 | $190,348 | $231,420 | $190,348 | ||||||
| Securities available-for-sale, at fair value | 38,041 | 38,041 | 38,041 | 32,935 | 38,041 | 32,935 | ||||||
| Securities held-to-maturity | 8,510 | 8,510 | 8,510 | 6,429 | 8,510 | 6,429 | ||||||
| Loans | 135,396 | 135,396 | 135,396 | 109,921 | 135,396 | 109,921 | ||||||
| Allowance for loan losses | 1,468 | 1,468 | 1,468 | 1,224 | 1,468 | 1,224 | ||||||
| Deposits | 205,403 | 205,403 | 205,530 | 166,587 | 205,530 | 166,587 | ||||||
| Other borrowings | 5,870 | 5,870 | – | 5,000 | – | 5,000 | ||||||
| Shareholders’ equity | 18,672 | 18,672 | 24,360 | 16,982 | 24,360 | 16,982 | ||||||
| Performance Ratios: | ||||||||||||
| Return on average shareholders’ equity (annualized) (%) | 7.99 | 10.27 | 7.26 | 10.91 | 9.98 | 5.27 | ||||||
| Net interest margin (%) | 3.06 | 3.09 | 3.21 | 3.26 | 3.20 | 3.23 | ||||||
| Average assets | $230,370 | $220,742 | $230,370 | $194,196 | $220,742 | $158,639 | ||||||
| Return on average assets (annualized) (%) | 0.65 | 0.87 | 0.77 | 0.94 | 0.96 | 0.54 | ||||||
| Shareholders’ equity to assets (%) | 8.07 | 8.07 | 10.53 | 8.92 | 10.53 | 8.92 | ||||||
| Efficiency ratio (%) | 70.94 | 61.96 | 66.12 | 57.37 | 58.72 | 74.56 | ||||||
| Asset Quality Data: | ||||||||||||
| Nonaccrual loans | $- | $- | $- | $- | $- | $- | ||||||
| Troubled debt restructurings | $234 | $234 | $234 | $266 | $234 | $266 | ||||||
| Other real estate | $- | $- | $- | $76 | $- | $76 | ||||||
| Nonperforming loans | $82 | $82 | $82 | $ | – | $82 | $ | – | ||||
| Nonperforming loans to total assets (%) | 0.04 | 0.04 | 0.04 | – | 0.04 | – | ||||||
| Nonperforming loans to total loans (%) | 0.06 | 0.06 | 0.06 | – | 0.06 | – | ||||||
| Reserve for loan losses to total loans (%) | 1.08 | 1.08 | 1.08 | 1.11 | 1.08 | 1.11 | ||||||
| Reserve for loan losses to nonperforming loans (%) | 1,790.24 | 1,790.24 | 1,790.24 | n/a | 1,790.24 | n/a | ||||||
| Net recoveries for period | $26 | $68 | $26 | $35 | $68 | $7 | ||||||
| Average loans | $122,131 | $117,309 | $122,131 | $105,733 | $117,309 | $100,471 | ||||||
| Ratio of net recoveries to average loans (%) | 0.02 | 0.06 | 0.02 | 0.03 | 0.06 | 0.01 | ||||||
| Regulatory Capital Ratios: | ||||||||||||
| CBLR ratio (%) | 8.08 | 8.08 | 10.55 | 9.12 | 10.55 | 9.12 | ||||||
| *RBAZ Bancorp, Inc. was formed on June 10, 2023. YTD consolidation consists of Bank data beginning January 1, 2023 and Company data beginning June 10, 2023. | ||||||||||||
Contact: Brian Ruisinger
President and Chief Executive Officer
Phone: 602.280.9404
Email: [email protected]
