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CST: 20/11/2019 08:47:55   

Republic Bank of Arizona Announces Unaudited Financial Results For the Quarter Ending March 31, 2019

207 Days ago

First quarter shows positive trends

PHOENIX, April 26, 2019 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $237,000, or $0.13 per share, for the quarter ended March 31, 2019 as compared to a net income of $130,000, or $0.08 per share, for the quarter ended March 31, 2018.

President and CEO Ralph Tapscott stated “We have started the year stronger than last year and we expect to hit our full year projections based on our team, our pipeline, and our local economies.  It is our team of dedicated bankers that I commend for growing our core deposits providing liquidity for our earning assets.  Loan production started the year strong as we entered January with a robust pipeline after experiencing a high degree of early payoffs in the 4th Quarter of 2018.”

Mr. Tapscott continued “Our capital is strong and will support continued growth, our asset quality is exceptional, and our team is committed to growing relationships that will manifest in loan and core deposit growth, with a corresponding growth in core earnings.  We are excited to announce we have entered into a lease on a new branch in the Kierland area of North Scottsdale as we look to deploy our excess capital and seek to expand our market convenience in the Phoenix Metropolitan Area. Our team’s work continues to be reflected in our Bauer Five-Star bank rating.”

March 31, 2019 Highlights Include:

  • Total interest income of $1,368,000 for the quarter ended March 31, 2019 outpaced total interest income of $1,204,000 for the same period of the prior year, and equates to an increase of 13.6%. 
  • Total deposits of $99,634,000 were up $11,390,000 or 12.9% from December 31, 2018, while total deposits are flat from March 31, 2018 to March 31, 2019.  In the most recent quarter we have seen significant deposit activity in our larger accounts. 
  • Total loans of $63,526,000 increased $1,509,000 or 2.4% from December 31, 2018 as the first quarter began with a strong pipeline to put the Bank on pace toward its annual loan growth goal. 
  • Total non-interest expense is down $94,000 to $814,000 for the quarter ended March 31, 2019 compared to $908,000 for the quarter ended March 31, 2018, a 10.4% improvement.             

The Bank remains “well capitalized” as follows:

  March 31, 2019
(%)
  Ratio to be Well
Capitalized (%)
Leverage Ratio 14.52   5.00
Common Equity Tier 1 25.58   6.50
Tier 1 Capital to Risk Weighted Assets 25.58   8.00
Total Capital to Risk Weighted Assets 26.84   10.00
       

About the Company 
Republic Bank of Arizona is a locally owned community bank in Phoenix, 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 operates out of a single location at 645 E. Missouri Avenue, Suite 108.  The Bank is traded over-the-counter as RBAZ.  For further information, please visit our web site: www.republicbankaz.com.

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 March 31, ended December 31,
    2019     2018   2018     2017  
  (dollars in thousands, except per share data)
Summary Income Data:        
Interest income $1,368   $1,204 $5,123   $4,374  
Interest expense   248     140   714     628  
Net interest income   1,120     1,064   4,409     3,746  
Provision for (reduction in) loan losses   -     -   (450)     (416)  
Non-interest income   (6)     48   328     425  
Non-interest expense   814     908   3,522     3,221  
Realized gain (loss) on sales of securities   -     -   (116)     1  
Income before income taxes   300     204   1,549     1,367  
Provision for income tax   63     74   442     743  
Net income $237   $130 $1,107   $624  
Per Share Data:        
Shares outstanding end-of-period   1,763     1,702   1,744     1,702  
Earnings per common share $0.13   $0.08 $0.63   $0.37  
Cash dividend declared   -     -   -     -  
Total shareholders’ equity $15,698   $13,872 $15,194   $14,015  
Book value per share   8.90     8.15   8.71     8.23  
Selected Balance Sheet Data:        
Total assets $116,128   $113,302 $104,105   $122,923  
Securities available-for-sale   21,442     23,953   21,888     21,779  
Securities held-to-maturity   6,207     6,298   6,230     6,320  
Loans   63,526     58,686   62,017     59,887  
Allowance for loan losses   1,190     1,669   1,184     1,665  
Deposits   99,634     99,036   88,244     108,489  
Other borrowings   -     -   -     -  
Shareholders’ equity   15,698     13,872   15,194     14,015  
Performance Ratios:        
Return on average shareholders’ equity (annualized)   6.22     3.73   7.7     4.56  
Net interest margin (%)   4.26     3.69   3.87     3.96  
Average assets   109,758     115,680   114,344     94,451  
Return on average assets (annualized) (%)   0.87     0.45   0.97     0.66  
Shareholders’ equity to assets (%)   13.52     12.24   14.59     11.4  
Efficiency ratio (%)   72.16     81.19   73.96     76.45  
Asset Quality Data:        
Nonaccrual loans   -     -   -     -  
Troubled debt restructurings   558     586   563     592  
Other real estate   -     -   -     -  
Nonperforming loans   -     -   -     -  
Nonperforming assets to total assets (%)   -     -   -     -  
Nonperforming loans to total loans (%)   -     -   -     -  
Reserve for loan losses to total loans (%)   1.87     2.84   1.91     2.78  
Reserve for loan losses to nonperforming loans (%)   *     *   *     *  
Net charge-offs (recoveries) for period   (6)     -   5     144  
Average loans   63,307     57,917   63,356     61,409  
Ratio of charge‑offs (recoveries) to average loans (%)   (0.04)     -   0.01     0.23  
Regulatory Capital Ratios:        
Tier 1 leverage capital ratio (%)   14.52     12.49   14.11     13.08  
Common Equity Tier 1 (%)   25.58     25.53   25.83     24.93  
Tier 1 risk-based capital ratio (%)   25.58     25.53   25.83     24.93  
Total risk-based capital ratio (%)   26.84     26.80   27.09     26.2  

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