PHOENIX, Nov. 03, 2017 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $269,000, or $.16 per share, for the quarter ended September 30, 2017 as compared to a net income of $381,000 or $.22 per share for the same period in 2016.
President and CEO Ralph Tapscott stated, “One year ago I had the privilege of announcing we were deemed a safe and sound financial institution. This year I am pleased to announce we posted one of the best quarters in my tenure with the Bank. Our team delivered quality and core earnings. We look at the absolute, quality and trend in earnings; and it creates further optimism about what we will be able to accomplish in the quarters to come. The Bank generated solid loan growth for the quarter and loan demand continues to be strong. The banking team further developed relationships that reflect significant core deposit growth. Our experienced team delivers service levels that are truly the differentiators that set us apart. We will continue to invest in the team that will deliver results. We have only begun to push the needle, and I hope you will continue to follow our progress.”
Mr. Tapscott continued, “Our team has worked relentlessly to fulfill our customer’s banking needs, and I’m proud to say we have grown our portfolio of checking deposits 82% in the first nine months of the year. I hear the compliments of our service levels from both our existing and new clientele, and we will continue that exceptional service as we move the Bank’s offices a few blocks west to 645 East Missouri Suite 108 in the spring of 2018. We continue to march toward the $100 million in assets milestone and set our focus on our longer term goal of exceeding $250 million. Growing this institution in a safe and sound manner, enhancing shareholder value, and attracting and retaining quality personnel are the tenets for RBAZ as we move forward.”
2017 Highlights Include:
- Net Loans grew nearly $4,200,000 or 7.2% for the third quarter of 2017.
- Customer checking deposits have grown nearly $6,500,000 or 82% during the first nine months of 2017 allowing us to lessen our reliance on more costly wholesale funding.
- Total deposit growth for the first nine months of 2017 has been $2,172,000 or 3.0%.
- Changes in deposit composition, coupled with the payoff of FHLB term advances, have allowed RBAZ’s cost of funds to decrease by 0.20% as of the quarter ended September 30, 2017 as compared to the same period ended September 30, 2016.
- Nonperforming assets decreased from approximately $1,939,000 to $845,000, a 56.4% reduction since September 30, 2016.
- Non-interest expense was reduced by 3.3% in the third quarter of 2017 relative to the third quarter of 2016.
The Bank remains “well capitalized” as follows:
| September 30, 2017 (%) | Ratio to be Well Capitalized (%) | |
| Leverage Ratio............................................................................... | 15.90 | 5.00 |
| Common Equity Tier 1................................................................. | 23.49 | 6.50 |
| Tier 1 Capital to Risk Weighted Assets...................................... | 23.49 | 8.00 |
| Total Capital to Risk Weighted Assets...................................... | 24.77 | 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 909 E. Missouri Avenue. 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 | ||||||||||||||||
| (dollars in thousands, except per share data or noted otherwise) | ||||||||||||||||
| For the Three months ended September 30, | For the Nine months ended September 30, | Year-End | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2016 | ||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Summary Income Data | ||||||||||||||||
| Interest income............................................................ | $ | 1,072 | $ | 1,170 | $ | 3,211 | $ | 3,495 | $ | 4,556 | ||||||
| Interest expense........................................................... | 147 | 189 | 471 | 556 | 733 | |||||||||||
| Net interest income...................................................... | 925 | 981 | 2,740 | 2.939 | 3,823 | |||||||||||
| Provision for (reduction in) loan losses....................... | (150 | ) | (400 | ) | (150 | ) | (400 | ) | (400 | ) | ||||||
| Non-interest income..................................................... | 123 | 34 | 190 | 120 | 190 | |||||||||||
| Non-interest expense................................................... | 758 | 787 | 2,419 | 2,529 | 3,346 | |||||||||||
| Realized gains (losses) on sales of securities............... | - | - | - | 22 | 22 | |||||||||||
| Income (loss) before income taxes.............................. | 440 | 628 | 661 | 952 | 1,089 | |||||||||||
| Provision for income tax.............................................. | 171 | 247 | 252 | 365 | 413 | |||||||||||
| Net income................................................................... | $ | 269 | $ | 381 | $ | 409 | $ | 587 | $ | 676 | ||||||
| Per Share Data: | ||||||||||||||||
| Shares outstanding end-of-period................................ | 1,702 | 1,702 | 1,702 | 1,702 | 1,702 | |||||||||||
| Earnings per common share......................................... | $ | 0.16 | $ | 0.22 | $ | 0.24 | $ | 0.34 | $ | 0.40 | ||||||
| Cash dividend declared................................................ | - | - | - | - | - | |||||||||||
| Total shareholders’ equity........................................... | $ | 13,978 | $ | 13,777 | $ | 13,978 | $ | 13,777 | $ | 13,150 | ||||||
| Book value per share................................................... | 8.21 | 8.09 | 8.21 | 8.09 | 7.73 | |||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||
| Total assets.................................................................. | $ | 87,882 | $ | 89,998 | $ | 87,882 | $ | 89,998 | $ | 86,667 | ||||||
| Securities available-for-sale......................................... | 16,204 | 20,915 | 16,204 | 20,915 | 21,658 | |||||||||||
| Securities held-to-maturity........................................... | 6,402 | - | 6,402 | - | - | |||||||||||
| Loans........................................................................... | 62,391 | 60,155 | 62,391 | 60,155 | 62,081 | |||||||||||
| Allowance for loan losses............................................ | 1,927 | 1,747 | 1,927 | 1,747 | 1,751 | |||||||||||
| Deposits....................................................................... | 73,526 | 73,999 | 73,526 | 73,999 | 71,337 | |||||||||||
| Other borrowings......................................................... | - | 1,950 | - | 1,950 | 1,950 | |||||||||||
| Shareholders’ equity.................................................... | 13,978 | 13,777 | 13,978 | 13,777 | 13,150 | |||||||||||
| Performance Ratios: | ||||||||||||||||
| Return on average shareholders’ equity (annualized)... | 7.77 | 11.21 | 4.02 | 5.88 | 5.07 | |||||||||||
| Net interest margin (%)................................................ | 4.19 | 4.39 | 4.06 | 4.44 | 4.33 | |||||||||||
| Average assets............................................................. | 88,558 | 90,068 | 89,476 | 89,762 | 89,757 | |||||||||||
| Return on average assets (annualized) (%)................... | 1.22 | 1.69 | 0.61 | 0.87 | 0.75 | |||||||||||
| Shareholders’ equity to assets (%)............................... | 15.91 | 15.31 | 15.91 | 15.31 | 15.17 | |||||||||||
| Efficiency ratio (%)...................................................... | 71.48 | 77.54 | 81.75 | 82.67 | 83.03 | |||||||||||
| Asset Quality Data: | ||||||||||||||||
| Nonaccrual loans......................................................... | 245 | 802 | 245 | 802 | 735 | |||||||||||
| Troubled debt restructurings........................................ | 600 | 834 | 600 | 834 | 817 | |||||||||||
| Other real estate........................................................... | - | 303 | - | 303 | - | |||||||||||
| Nonperforming assets.................................................. | 845 | 1,939 | 845 | 1,939 | 1,552 | |||||||||||
| Nonperforming assets to total assets (%)..................... | 0.96 | 2.15 | 0.96 | 2.15 | 1.79 | |||||||||||
| Nonperforming loans to total loans (%)....................... | 1.35 | 2.72 | 1.35 | 2.72 | 2.50 | |||||||||||
| Reserve for loan losses to total loans (%).................... | 3.09 | 2.90 | 3.09 | 2.90 | 2.82 | |||||||||||
| Reserve for loan losses to nonperforming loans (%).... | 228.05 | 106.78 | 228.05 | 106.78 | 112.82 | |||||||||||
| Reserve for loan losses to nonperforming assets (%)... | 228.05 | 90.10 | 228.05 | 90.10 | 112.82 | |||||||||||
| Net charge-offs for period............................................ | - | - | 144 | 162 | 162 | |||||||||||
| Average loans.............................................................. | 60,344 | 63,116 | 61,402 | 62,253 | 62,108 | |||||||||||
| Ratio of charge‑offs to average loans (%)..................... | - | - | 0.23 | 0.26 | 0.26 | |||||||||||
| Regulatory Capital Ratios: | ||||||||||||||||
| Tier 1 leverage capital ratio (%).................................... | 15.90 | 15.02 | 15.90 | 15.02 | 15.19 | |||||||||||
| Common Equity Tier 1 (%).......................................... | 23.49 | 22.81 | 23.49 | 22.81 | 22.50 | |||||||||||
| Tier 1 risk-based capital ratio (%)................................ | 23.49 | 22.81 | 23.49 | 22.81 | 22.50 | |||||||||||
| Total risk-based capital ratio (%)................................. | 24.77 | 24.08 | 24.77 | 24.08 | 23.77 | |||||||||||
Contact: Ralph Tapscott,
President and Chief Executive Officer
Phone: 602.280.9403
Email: rtapscott@republicaz.com