First quarter brings favorable results
PHOENIX, May 06, 2016 (GLOBE NEWSWIRE) -- RepublicBankAz, N.A. (OTCBB:RBAZ) (“RBAz”) announced a net income of $150,000, or $.09 per share, for the quarter ended March 31, 2016 as compared to a net income of $113,000 or $.08 per share for the same period in 2015.
President and CEO Ralph Tapscott stated, “We are pleased with our performance in the first quarter of 2016, earning our shareholders $.09 per share and the resulting ROAA of 0.69%. Management is extremely satisfied with our staff’s performance during the various audits that accompany finalizing our 2015 results, and applauds their effort, hard work and diligence.”
“Although the results of regulatory examinations are non-public information, we are continuing to make progress in complying with the Formal Agreement between the Bank and the Office of the Comptroller of the Currency,” he continued. “To meet the needs of our clients and shareholders, we continue to build and strengthen our banking team with the addition of three highly qualified and experienced bankers. Safe and sound operation of the Bank, enhancing shareholder value, attracting and retaining quality personnel are the tenets for the Bank as we move forward.”
First Quarter Highlights Include:
- Return on average assets (ROAA) for the first quarter of 0.69% compares favorably to banks headquartered in Arizona under a billion in asset size, where first quarter average ROAA was 0.53%.
- Total assets increased $4.2 million since December 31, 2015 and total deposits have increased by $3.8 million during the same period. This represents an annualized growth rate of nearly 20% and 22%, respectively.
- The Bank’s liquidity ratio improved to 35.50% as of March 31, 2016 from 19.64% as of March 31, 2015.
- On April 30, 2016 the Bank began its 9th year of operations. In the coming year we will not only celebrate our 10th anniversary, but we believe, also surpass the $100 million in asset size which is a significant banking milestone.
“Management is focused on growing the Bank by providing credit and cash management services to small and midsize businesses,” noted Tapscott. “Although the end of 2015 and the beginning of 2016 have seen very erratic national economic indicators, we believe the Arizona economy will continue to improve. As it does, so does the strength of the business sector and our ability to increase our market share.”
The Bank remains “well capitalized” as follows:
| March 31, 2016 (%) | Ratio to be Well Capitalized (%) | |
| Leverage Ratio | 15.02 | 5.00 |
| Tier 1 Capital to Risk Weighted Assets | 22.76 | 6.00 |
| Total Capital to Risk Weighted Assets | 24.05 | 10.00 |
About the Company
RepublicBankAz, N.A. 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 March 31, | For the twelve months ended December 31, | |||||||||||
| 2016 | 2015 | 2015 | 2014 | |||||||||
| Summary Income Data | ||||||||||||
| Interest income | $ | 1,257 | $ | 1,202 | $ | 4,873 | $ | 5,113 | ||||
| Interest expense | 179 | 173 | 697 | 713 | ||||||||
| Net interest income | 1,078 | 1,029 | 4,176 | 4,400 | ||||||||
| Provision for loan losses | - | - | 24 | 153 | ||||||||
| Non-interest income | 46 | 83 | 313 | 334 | ||||||||
| Non-interest expense | 871 | 924 | 3,475 | 3,726 | ||||||||
| Realized gains (losses) on sales of securities | - | - | - | - | ||||||||
| Income (loss) before income taxes | 253 | 188 | 990 | 855 | ||||||||
| Provision for income tax (benefit) | 103 | 75 | 364 | 339 | ||||||||
| Net income (loss) | 150 | 113 | 626 | 516 | ||||||||
| Per Share Data: | ||||||||||||
| Shares outstanding end-of-period | 1,702 | 1,378 | 1,702 | 1,352 | ||||||||
| Earnings per common share | 0.09 | 0.08 | 0.37 | 0.38 | ||||||||
| Cash dividend declared | - | - | - | - | ||||||||
| Total shareholders’ equity | $ | 13,156 | $ | 11,359 | $ | 12,919 | $ | 11,089 | ||||
| Book value per share | 7.73 | 8.24 | 7.59 | 8.20 | ||||||||
| Selected Balance Sheet Data: | ||||||||||||
| Total assets | $ | 89,948 | $ | 86,958 | $ | 85,724 | $ | 87,259 | ||||
| Securities available-for-sale | 17,516 | 8,970 | 14,150 | 5,596 | ||||||||
| Securities held-to-maturity | - | - | - | - | ||||||||
| Loans | 60,390 | 69,163 | 66,508 | 72,399 | ||||||||
| Allowance for loan losses | 2,111 | 2,293 | 2,268 | 2,274 | ||||||||
| Deposits | 74,470 | 73,321 | 70,616 | 73,925 | ||||||||
| Other borrowings | 1,950 | 1,950 | 1,950 | 1,950 | ||||||||
| Shareholders’ equity | 13,156 | 11,359 | 12,919 | 11,089 | ||||||||
| Performance Ratios: | ||||||||||||
| Return on average shareholders’ equity (annualized) | 4.60 | 4.03 | 5.28 | 4.81 | ||||||||
| Net interest margin (%) | 5.15 | 4.89 | 4.91 | 5.02 | ||||||||
| Average assets | 87,011 | 87,029 | 87,075 | 89,490 | ||||||||
| Return on average assets (annualized) (%) | 0.69 | 0.52 | 0.72 | 0.58 | ||||||||
| Shareholders’ equity to assets (%) | 14.63 | 13.06 | 15.07 | 12.71 | ||||||||
| Efficiency ratio (%) | 77.49 | 83.09 | 77.61 | 78.71 | ||||||||
| Asset Quality Data: | ||||||||||||
| Nonperforming loans | 2,194 | 1,841 | 2,526 | 1,599 | ||||||||
| Other real estate and repos | 303 | 433 | 303 | 650 | ||||||||
| Nonperforming assets | 2,497 | 2,274 | 2,829 | 2,249 | ||||||||
| Nonperforming assets to total assets (%) | 2.78 | 2.62 | 3.30 | 2.58 | ||||||||
| Nonperforming loans to total loans (%) | 3.63 | 2.66 | 3.80 | 3.11 | ||||||||
| Reserve for loan losses to total loans (%) | 3.50 | 3.32 | 3.41 | 3.14 | ||||||||
| Reserve for loan losses to nonperforming loans (%) | 96.22 | 124.55 | 89.79 | 142.15 | ||||||||
| Reserve for loan losses to nonperforming assets (%) | 84.54 | 100.84 | 80.17 | 101.07 | ||||||||
| Net charge-offs for period | $ | 162 | $ | - | $ | 78 | $ | 2,182 | ||||
| Average loans | 61,358 | 70,659 | 70,756 | 78,136 | ||||||||
| Ratio of charge‑offs to average loans (%) | 0.26 | - | 0.11 | 2.79 | ||||||||
| Regulatory Capital Ratios: | ||||||||||||
| Tier 1 leverage capital ratio (%) | 15.02 | 12.85 | 14.53 | 12.24 | ||||||||
| Tier 1 risk-based capital ratio (%) | 22.76 | 17.26 | 20.83 | 14.90 | ||||||||
| Total risk-based capital ratio (%) | 24.05 | 18.54 | 22.11 | 16.18 | ||||||||