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CST: 13/11/2019 03:16:46   

Republic Bank of Arizona Announces Unaudited Financial Results For the Quarter Ending September 30, 2019

18 Days ago

Third Quarter Featured Opening New Branch Expanding into North Scottsdale

PHOENIX, Oct. 25, 2019 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $71,000, or $0.04 per share, for the quarter ended September 30, 2019 and $430,000, or $0.24 per share, for the nine months ended September 30, 2019 as compared to a net income of $172,000, or $0.10 per share, for the quarter ended September 30, 2018 and $781,000, or $0.46 per share, for the nine months ended September 30, 2018. Prior year earnings of $0.46 per share were comprised of $0.38 per share attributable to core operations and $0.08 per share due to net one-time items. Current year earnings reflect the impact of the strategic decision to open our second location.

President and CEO Ralph Tapscott stated “We have invested in the future geography of RBAZ in Q3 with a new branch staffed with four new bankers. We are excited to announce we have opened our 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. The work of our commercial bankers is showing by way of increased activity and a strong pipeline heading in to Q4.”

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. Our team’s work continues to be reflected in our Bauer Five-Star bank rating. On or about November 4th, I will be leaving the Bank to relocate to Lake Havasu City, AZ. Brian Ruisinger, our current CFO, has been chosen by the Board of Directors to succeed me as President and CEO. I have enjoyed my time with RBAZ and wish the organization nothing but the best in the future.”

September 30, 2019 Highlights Include:

  • Total loans of $67,754,000 increased $5,737,000 or 9.3% from December 31, 2018.
  • Total interest income is down $46,000 to $1,265,000 for the quarter ended September 30, 2019 compared to $1,311,000 for the quarter ended September 30, 2018 primarily due to a reduction of excess cash balance coupled with decreases in the Federal Reserve rate paid on excess cash.
  • Total non-interest expense is up $51,000 to $954,000 for the quarter ended September 30, 2019 compared to $903,000 for the quarter ended September 30, 2018 due to an increase in personnel and other costs associated with the Scottsdale branch.

The Bank remains “Well Capitalized” as follows:

  September 30, 2019 (%)   Ratio to be Well Capitalized (%)
       
Leverage Ratio............................................................................... 14.43   5.00
Common Equity Tier 1................................................................. 23.09   6.50
Tier 1 Capital to Risk Weighted Assets...................................... 23.09   8.00
Total Capital to Risk Weighted Assets...................................... 24.35   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: 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 nine months  
  ended September 30, ended September 30, Year-End
  2019 2018 2019 2018 2018
  (dollars in thousands, except per share data)
Summary Income Data:          
Interest income $1,265   $1,311 $3,950   $3,820   $5,123  
Interest expense 268   211 766   511   714  
Net interest income 997   1,100 3,184   3,309   4,409  
Provision for (reduction in) loan losses   -    -   -    (300 ) (450 )
Non-interest income 41   34 78   293   328  
Non-interest expense 954   903 2,720   2,678   3,522  
Realized gain (loss) on sales of securities   -    -   -    (116 ) (116 )
Income before income taxes 84   231 542   1,108   1,549  
Provision for income tax 13   59 112   327   442  
Net income $71   $172 $430   $781   $1,107  
Per Share Data:          
Shares outstanding end-of-period 1,810   1,711 1,810   1,711   1,744  
Earnings per common share $0.04   $0.10 $0.24   $0.46   $0.63  
Cash dividend declared $-    $- $512   $-   $-  
Total shareholders’ equity $15,773   $14,609 $15,773   $14,609   $15,194  
Book value per share $8.71   $8.54 $8.71   $8.54   $8.71  
Selected Balance Sheet Data:          
Total assets $106,096   $111,689 $106,096   $111,689   $104,105  
Securities available-for-sale 20,952   20,044 20,952   20,044   21,888  
Securities held-to-maturity 5,813   6,253 5,813   6,253   6,230  
Loans 67,754   68,512 67,754   68,512   62,017  
Allowance for loan losses 1,205   1,333 1,205   1,333   1,184  
Deposits 88,390   96,485 88,390   96,485   88,244  
Other borrowings   -    -   -    -   -  
Shareholders’ equity 15,773   14,609 15,773   14,609   15,194  
Performance Ratios:          
Return on average shareholders’ equity (annualized) (%) 1.80   4.74 3.63   7.33   7.70  
Net interest margin (%) 3.79   3.82 4.05   3.83   3.87  
Average assets $109,181   $115,609 $108,577   $115,570   $114,344  
Return on average assets (annualized) (%) 0.26   0.60 0.53   0.90   0.97  
Shareholders’ equity to assets (%) 14.87   13.08 14.87   13.08   14.59  
Efficiency ratio (%) 90.57   79.20 82.30   73.96   73.96  
Asset Quality Data:          
Nonaccrual loans   -    - -   -   -  
Troubled debt restructurings $541   $571 $541   $571   $563  
Other real estate   - -   -   -  
Nonperforming loans   - -   -   -  
Nonperforming assets to total assets (%)   -    - -   -   -  
Nonperforming loans to total loans (%)   -    - -   -   -  
Reserve for loan losses to total loans (%) 1.78   1.95 1.78   1.95   1.91  
Reserve for loan losses to nonperforming loans (%) *   * *   *   *  
Net charge-offs (recoveries) for period ($9 ) $- ($21 ) $-   $5  
Average loans $65,438   $67,587 $64,144   $62,842   $63,356  
Ratio of charge‑offs (recoveries) to average loans (%) (0.01 ) (0.03 ) -   0.01  
Regulatory Capital Ratios:          
Tier 1 leverage capital ratio (%) 14.43   13.10 14.43   13.10   14.11  
Common Equity Tier 1 (%) 23.09   22.81 23.09   22.81   25.83  
Tier 1 risk-based capital ratio (%) 23.09   22.81 23.09   22.81   25.83  
Total risk-based capital ratio (%) 24.35   24.07 24.35   24.07   27.09  


Contact:  Ralph Tapscott,
President and Chief Executive Officer
Phone:  602.280.9403
Email:  rtapscott@republicaz.com

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