PHOENIX, Nov. 02, 2016 (GLOBE NEWSWIRE) -- RepublicBankAz, N.A. (OTCBB:RBAZ) (“RBAz”) announced a net income of $381,000, or $0.22 per share, for the quarter ended September 30, 2016, as compared to a net income of $140,000 or $0.08 per share for the same period in 2015.
President and CEO Ralph Tapscott stated, “We are pleased with our quarter ended September 30, 2016 earnings of $381,000 and resulting return on assets (“ROA”) of 1.69%, as well as our year-to-date results of $587,000 in income and the resultant ROA of 0.87%. We are proud that our hard work over the past few years was recognized by our regulators with the removal of the enforcement action we had been working under. We will continue to build a safe and sound financial institution, and now our focus can be more directed towards fulfilling our customers’ needs and building value for our shareholders. Building the Bank north of $100 million in asset size is our next incremental goal and I’m confident we will cross that milestone in the near future.”
Third Quarter Highlights Include:
- On August 19th the Office of the Comptroller of the Currency lifted the Formal Agreement the Bank entered into on May 31, 2013.
- Total Assets have grown $4.2 million since December 31, 2015, which represents an annualized growth rate of 6.6%.
- Total deposits have grown $3.4 million (despite a tactical reduction of $7.2 million in non-customer deposits) since December 31, 2015, which represents an annualized growth rate of 6.4%.
- Nonperforming assets as a percentage of total assets decreased 34.9% from the level at December 31, 2015 to 2.15%, supporting a negative provision expense being recorded during the quarter.
- Equity capital has grown 6.6% or $858,000 since December 31, 2015.
- Non-interest expense for the third quarter improved 6.9% from the same period in 2015.
“Management is focused on growing the Bank by providing credit and cash management services for small to midsize businesses,” noted Tapscott. “This quarter we booked in excess of $9 million in new loans, despite what is reflected on our balance sheet, and this is the best production the Bank has experienced in my term here. We continue to maintain a strong pipeline for future loan growth and we have the capital and liquidity to support that growth. As the Arizona economy continues to improve, so does the strength of the business sector and our ability to increase our market share within this sector.”
The Bank remains “well capitalized” as follows:
| September 30, 2016 (%) | Ratio to be Well Capitalized (%) | |||||||
| Leverage Ratio | 15.02 | 5.00 | ||||||
| Tier 1 Capital to Risk Weighted Assets | 22.81 | 6.00 | ||||||
| Total Capital to Risk Weighted Assets | 24.08 | 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 | |||||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | Year-End | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | 2015 | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| Summary Income Data | |||||||||||||||||||
| Interest income | $ | 1,170 | $ | 1,228 | $ | 3,495 | $ | 3,617 | $ | 4,873 | |||||||||
| Interest expense | 189 | 173 | 556 | 520 | 697 | ||||||||||||||
| Net interest income | 981 | 1,055 | 2,939 | 3,097 | 4,176 | ||||||||||||||
| Provision for loan losses | (400 | ) | 24 | (400 | ) | 24 | 24 | ||||||||||||
| Non-interest income | 34 | 60 | 120 | 230 | 313 | ||||||||||||||
| Non-interest expense | 787 | 845 | 2,529 | 2,708 | 3,475 | ||||||||||||||
| Realized gains on sales of securities | - | - | 22 | - | - | ||||||||||||||
| Income before income taxes | 628 | 246 | 952 | 595 | 990 | ||||||||||||||
| Provision for income tax | 247 | 106 | 365 | 247 | 364 | ||||||||||||||
| Net income | 381 | 140 | 587 | 348 | 626 | ||||||||||||||
| Per Share Data: | |||||||||||||||||||
| Shares outstanding end-of-period | 1,702 | 1,702 | 1,702 | 1,702 | 1,702 | ||||||||||||||
| Earnings per common share | 0.22 | 0.08 | 0.34 | 0.20 | 0.37 | ||||||||||||||
| Cash dividend declared | - | - | - | - | - | ||||||||||||||
| Total shareholders’ equity | $ | 13,777 | $ | 12,725 | $ | 13,777 | $ | 12,725 | $ | 12,919 | |||||||||
| Book value per share | 8.09 | 7.48 | 8.09 | 7.48 | 7.59 | ||||||||||||||
| Selected Balance Sheet Data: | |||||||||||||||||||
| Total assets | $ | 89,998 | $ | 89,410 | $ | 89,998 | $ | 89,410 | $ | 85,724 | |||||||||
| Securities available-for-sale | 20,915 | 9,885 | 20,915 | 9,885 | 14,150 | ||||||||||||||
| Securities held-to-maturity | - | - | - | - | - | ||||||||||||||
| Loans | 60,155 | 71,797 | 60,155 | 71,797 | 66,508 | ||||||||||||||
| Allowance for loan losses | 1,747 | 2,257 | 1,747 | 2,257 | 2,268 | ||||||||||||||
| Deposits | 73,999 | 72,456 | 73,999 | 72,456 | 70,616 | ||||||||||||||
| Other borrowings | 1,950 | 3,950 | 1,950 | 3,950 | 1,950 | ||||||||||||||
| Shareholders’ equity | 13,777 | 12,725 | 13,777 | 12,725 | 12,919 | ||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Return on average shareholders’ equity (annualized) (%) | 11.21 | 4.65 | 5.88 | 4.02 | 5.28 | ||||||||||||||
| Net interest margin (%) | 4.39 | 4.89 | 4.44 | 4.86 | 4.91 | ||||||||||||||
| Average assets | 90,068 | 86,867 | 89,762 | 86,457 | 87,075 | ||||||||||||||
| Return on average assets (annualized) (%) | 1.69 | 0.64 | 0.87 | 0.54 | 0.72 | ||||||||||||||
| Shareholders’ equity to assets (%) | 15.31 | 14.23 | 15.31 | 14.23 | 15.07 | ||||||||||||||
| Efficiency ratio (%) | 77.54 | 75.78 | 82.67 | 81.39 | 77.61 | ||||||||||||||
| Asset Quality Data: | |||||||||||||||||||
| Nonperforming loans | 1,636 | 1,719 | 1,636 | 1,719 | 2,526 | ||||||||||||||
| Other real estate and repos | 303 | 433 | 303 | 433 | 303 | ||||||||||||||
| Nonperforming assets | 1,939 | 2,152 | 1,939 | 2,152 | 2,829 | ||||||||||||||
| Nonperforming assets to total assets (%) | 2.15 | 2.41 | 2.15 | 2.41 | 3.30 | ||||||||||||||
| Nonperforming loans to total loans (%) | 2.72 | 2.39 | 2.72 | 2.39 | 3.80 | ||||||||||||||
| Reserve for loan losses to total loans (%) | 2.90 | 3.14 | 2.90 | 3.14 | 3.41 | ||||||||||||||
| Reserve for loan losses to nonperforming loans (%) | 106.78 | 131.30 | 106.78 | 131.30 | 89.79 | ||||||||||||||
| Reserve for loan losses to nonperforming assets (%) | 90.10 | 104.88 | 90.10 | 104.88 | 80.17 | ||||||||||||||
| Net charge-offs for period | - | 78 | 162 | 78 | 78 | ||||||||||||||
| Average loans | 63,116 | 73,668 | 62,253 | 71,773 | 70,756 | ||||||||||||||
| Ratio of charge‑offs to average loans (%) | - | 0.11 | 0.26 | 0.11 | 0.11 | ||||||||||||||
| Regulatory Capital Ratios: | |||||||||||||||||||
| Tier 1 leverage capital ratio (%) | 15.02 | 14.53 | 15.02 | 14.53 | 14.53 | ||||||||||||||
| Tier 1 risk-based capital ratio (%) | 22.81 | 18.88 | 22.81 | 18.88 | 20.83 | ||||||||||||||
| Total risk-based capital ratio (%) | 24.08 | 20.16 | 24.08 | 20.16 | 22.11 | ||||||||||||||