Third quarter continues to show positive trends
PHOENIX, Nov. 07, 2018 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced 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 as compared to a net income of $269,000, or $0.16 per share, for the quarter ended September 30, 2017 and $409,000 or $0.24 per share for the nine months ended September 30, 2017.
President and CEO Ralph Tapscott stated “I am pleased to report our third quarter results and am proud of our team. Quality loan growth has been a focus so I am happy to report that not only have we seen our loan growth track with our projected budget through three quarters, but we also have no non-performing loans in our portfolio. Our core earnings exceeded the same quarter last year by over 44% when adjusting the prior period for a loan loss allowance reversal. Our growth in loans and deposits provides a solid foundation for future growth in earnings.”
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 continue to enjoy a Bauer Five-Star bank rating further supporting our foundation and strength.”
September 30, 2018 Highlights Include:
- Total interest income of $1,311,000 for the quarter ended September 30, 2018 exceeded total interest income of $1,072,000 for the same period of the prior year, and represents an increase of 22.2%.
- Quarterly non-interest expense for September 30, 2018 quarter increased 19.1% or $145,000 over the same quarter in 2017 as we experienced some salary duplication that has now leveled back to normal.
- Total loans increased $3,800,000 to $68,500,000 for the quarter ended September 30, 2017, a 5.8% increase as loan production continues on our projected budget through nine months.
- Total deposits of $96,485,000 are down $5,100,000 for the third quarter, as our largest depositor decreased their balances for some large routine expenditures.
The Bank remains “well capitalized” as follows:
| September 30, 2018 (%) | Ratio to be Well Capitalized (%) | ||
| Leverage Ratio | 13.10 | 5.00 | |
| Common Equity Tier 1 | 22.81 | 6.50 | |
| Tier 1 Capital to Risk Weighted Assets | 22.81 | 8.00 | |
| Total Capital to Risk Weighted Assets | 24.07 | 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 with a business and commercial focus. 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 | ||||||||||||||||
| (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 | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | 2017 | ||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Summary Income Data | ||||||||||||||||
| Interest income | $ | 1,311 | $ | 1,072 | $ | 3,820 | $ | 3,211 | $ | 4,374 | ||||||
| Interest expense | 211 | 147 | 511 | 471 | 628 | |||||||||||
| Net interest income | 1,100 | 925 | 3,309 | 2,740 | 3,746 | |||||||||||
| Provision for (reduction in) loan losses | - | (150) | (300) | (150) | (416) | |||||||||||
| Non-interest income | 34 | 123 | 293 | 190 | 425 | |||||||||||
| Non-interest expense | 903 | 758 | 2,678 | 2,419 | 3,221 | |||||||||||
| Realized gains (losses) on sales of securities | - | - | (116) | - | 1 | |||||||||||
| Income before income taxes | 231 | 440 | 1,108 | 661 | 1,367 | |||||||||||
| Provision for income tax | 59 | 171 | 327 | 252 | 743 | |||||||||||
| Net income | $ | 172 | $ | 269 | $ | 781 | $ | 409 | $ | 624 | ||||||
| Per Share Data: | ||||||||||||||||
| Shares outstanding end-of-period | 1,711 | 1,702 | 1,711 | 1,702 | 1,702 | |||||||||||
| Earnings per common share | $ | 0.10 | $ | 0.16 | $ | 0.46 | $ | 0.24 | $ | 0.37 | ||||||
| Cash dividend declared | - | - | - | - | - | |||||||||||
| Total shareholders’ equity | $ | 14,609 | $ | 13,978 | $ | 14,609 | $ | 13,978 | $ | 14,015 | ||||||
| Book value per share | 8.54 | 8.21 | 8.54 | 8.21 | 8.23 | |||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||
| Total assets | $ | 111,689 | $ | 87,882 | $ | 111,689 | $ | 87,882 | $ | 122,923 | ||||||
| Securities available-for-sale | 20,044 | 16,204 | 20,044 | 16,204 | 20,570 | |||||||||||
| Securities held-to-maturity | 6,253 | 6,402 | 6,253 | 6,402 | 6,320 | |||||||||||
| Loans | 68,512 | 62,391 | 68,512 | 62,391 | 59,887 | |||||||||||
| Allowance for loan losses | 1,333 | 1,927 | 1,333 | 1,927 | 1,665 | |||||||||||
| Deposits | 96,485 | 73,526 | 96,485 | 73,526 | 108,489 | |||||||||||
| Other borrowings | - | - | - | - | - | |||||||||||
| Shareholders’ equity | 14,609 | 13,978 | 14,609 | 13,978 | 14,015 | |||||||||||
| Performance Ratios: | ||||||||||||||||
| Return on average shareholders’ equity (annualized) | 4.74 | 7.77 | 7.33 | 4.02 | 4.56 | |||||||||||
| Net interest margin (%) | 3.82 | 4.19 | 3.83 | 4.06 | 3.96 | |||||||||||
| Average assets | 115,609 | 88,558 | 115,570 | 89,476 | 94,451 | |||||||||||
| Return on average assets (annualized) (%) | 0.60 | 1.22 | 0.90 | 0.61 | 0.66 | |||||||||||
| Shareholders’ equity to assets (%) | 13.08 | 15.91 | 13.08 | 15.91 | 11.40 | |||||||||||
| Efficiency ratio (%) | 79.20 | 71.48 | 73.96 | 81.75 | 76.45 | |||||||||||
| Asset Quality Data: | ||||||||||||||||
| Nonaccrual loans | - | 245 | - | 245 | - | |||||||||||
| Troubled debt restructurings | 571 | 600 | 571 | 600 | 592 | |||||||||||
| Other real estate | - | - | - | - | - | |||||||||||
| Nonperforming assets | - | 845 | - | 845 | - | |||||||||||
| Nonperforming assets to total assets (%) | - | 0.96 | - | 0.96 | - | |||||||||||
| Nonperforming loans to total loans (%) | - | 1.35 | - | 1.35 | - | |||||||||||
| Reserve for loan losses to total loans (%) | 1.95 | 3.09 | 1.95 | 3.09 | 2.78 | |||||||||||
| Reserve for loan losses to nonperforming loans (%) | * | 228.05 | * | 228.05 | * | |||||||||||
| Net charge-offs for period | - | - | - | 144 | 144 | |||||||||||
| Average loans | 67,587 | 60,344 | 62,842 | 61,402 | 61,409 | |||||||||||
| Ratio of charge‑offs to average loans (%) | - | - | - | 0.23 | 0.23 | |||||||||||
| Regulatory Capital Ratios: | ||||||||||||||||
| Tier 1 leverage capital ratio (%) | 13.10 | 15.90 | 13.10 | 15.90 | 13.08 | |||||||||||
| Common Equity Tier 1 (%) | 22.81 | 23.49 | 22.81 | 23.49 | 24.93 | |||||||||||
| Tier 1 risk-based capital ratio (%) | 22.81 | 23.49 | 22.81 | 23.49 | 24.93 | |||||||||||
| Total risk-based capital ratio (%) | 24.07 | 24.77 | 24.07 | 24.77 | 26.20 | |||||||||||
| * Denominator is zero | ||||||||||||||||
Contact: Ralph Tapscott,
President and Chief Executive Officer
Phone: 602.280.9403
Email: rtapscott@republicaz.com