PHOENIX, April 27, 2023 (GLOBE NEWSWIRE) -- RBAZ Bancorp, Inc. (OTCIQ: RBAZ) (the “Company”), parent company of Republic Bank of Arizona (the “Bank” or “RBAZ”), announced a consolidated net income of $462,000, or $0.26 per share, for the quarter ended March 31, 2023 as compared to a consolidated net income of $374,000, or $0.21 per share, for the quarter ended March 31, 2022. Current quarter earnings of $0.26 per share were attributable entirely to core operations. Prior quarter earnings of $0.21 per share were comprised of $0.18 per share attributable to core operations and $0.03 per share due to impacts from the Paycheck Protection Program (“PPP”).
President and CEO Brian Ruisinger stated, “We are pleased to report a 23.5% quarterly increase in net earnings over the same quarter last year primarily driven by our significant Q4 loan production supplemented by modest growth in Q1 of 1.5%. Asset quality continued to maintain at a high level with nominal past due and non-performing loans and was confirmed by excellent results from a routine regulatory exam that consumed the month of January.”
Mr. Ruisinger continued, “Given the recent turmoil in the banking industry, RBAZ stayed the course and reiterated its strength as a community bank. Despite strong liquidity, we took steps in Q1 to bolster our reserves by increasing our borrowing capacity by double. Our mission has not changed as a result of actions by non-traditional styles of banking. RBAZ remains well capitalized and poised for continued growth in its mission to be the premier Arizona-based community bank, as reflected in our Bauer Five-Star bank rating.”
March 31, 2023 Company Highlights Include:
- Total loans of $165,363,000 increased $2,409,000, or 1.5%, from December 31, 2022. The Company experienced a natural lull in loan production for the first quarter of 2023 after record loan growth exceeding $20 million in the fourth quarter of 2022.
- Total deposits of $225,683,000 increased $22,351,000, or 11.0%, from December 31, 2022 as the Company gathered short-term deposits to bolster earnings by taking advantage of the current interest rate spread. Management prioritized liquidity in its 2023 Strategic Plan and deployed additional resources into deposit production.
- Total interest income increased $1,107,000 to $3,041,000 for the quarter ended March 31, 2023 outpacing total interest income of $1,934,000 for the same period of the prior year equating to an increase of 57.2%.
- Cost of deposits increased to 1.57% for the quarter ended March 31, 2023 from 0.31% for the quarter ended March 31, 2022 as the result of upward rate pressure as the Federal Reserve increased interest rates by 4.75% since the first quarter of 2022.
- Total non-interest expense increased $493,000 to $1,683,000 for the quarter ended March 31, 2023 compared to $1,190,000 for the same period of the prior year resulting primarily from several additional full-time employees, the addition of the Gilbert branch, and investments made in technology and marketing in support of the Company’s growth.
The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework as follows:
| March 31, 2023 (%) | Ratio to be Well Capitalized (%) | ||
| CBLR ratio | 10.70 | 9.00 | |
About the Company
RBAZ Bancorp, Inc. was established on June 10, 2021 as a single-bank holding company for its Arizona state-chartered bank subsidiary, Republic Bank of Arizona. The Company is traded over-the-counter as RBAZ.
About the Bank
Republic Bank of Arizona is a locally owned, community bank in Phoenix, Scottsdale and Gilbert, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, online and mobile 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 is at 6909 E. Greenway Parkway, Suite 150, Scottsdale, AZ. Our third location opened in October 2022 at 1417 W. Elliot Road, Gilbert, AZ. The Bank is the wholly-owned subsidiary of RBAZ Bancorp, Inc. For further information, please visit our web site: www.republicbankaz.com.
Forward-looking Statements
This press release may include forward-looking statements about the Company and the Bank (collectively referred to herein as the “Company”), for which the Company 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 Company’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 Company 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 Company assumes no obligation to update any forward-looking statement.
| Summary Company Financial Information (unaudited) | ||||||||
| For the three months ended March 31, | For the twelve months ended December 31, | |||||||
| 2023 | 2022 | 2022 | 2021* | |||||
| (dollars in thousands, except per share data) | ||||||||
| Summary Income Data: | ||||||||
| Interest income | $3,041 | $1,934 | $9,218 | $7,544 | ||||
| Interest expense | 942 | 248 | 1,674 | 945 | ||||
| Net interest income | 2,099 | 1,686 | 7,544 | 6,599 | ||||
| Provision for loan losses | - | - | 218 | 176 | ||||
| Non-interest income | 210 | 7 | 511 | 386 | ||||
| Non-interest expense | 1,683 | 1,190 | 5,386 | 4,328 | ||||
| Realized loss on sales of securities | - | - | - | 7 | ||||
| Income before income taxes | 626 | 503 | 2,451 | 2,474 | ||||
| Provision for income tax | 164 | 129 | 538 | 556 | ||||
| Net income | $462 | $374 | $1,913 | $1,918 | ||||
| Per Share Data: | ||||||||
| Shares outstanding end-of-period | 1,807 | 1,806 | 1,797 | 1,805 | ||||
| Earnings per common share | $0.26 | $0.21 | $1.06 | $1.06 | ||||
| Diluted earnings per common share | $0.25 | $0.20 | $1.02 | $1.01 | ||||
| Total shareholders’ equity | $18,918 | $18,012 | $18,166 | $18,672 | ||||
| Book value per share | $10.47 | $9.97 | $10.11 | $10.34 | ||||
| Selected Balance Sheet Data: | ||||||||
| Total assets | $252,209 | $249,174 | $237,620 | $231,420 | ||||
| Securities available-for-sale, at fair value | 41,787 | 39,936 | 43,441 | 38,041 | ||||
| Securities held-to-maturity | 12,031 | 8,996 | 12,176 | 8,510 | ||||
| Loans | 165,363 | 132,938 | 162,954 | 135,396 | ||||
| Allowance for loan losses | 2,115 | 1,488 | 1,764 | 1,468 | ||||
| Deposits | 225,683 | 223,779 | 203,332 | 205,403 | ||||
| Other borrowings | 5,907 | 5,878 | 14,900 | 5,870 | ||||
| Shareholders’ equity | 18,918 | 18,012 | 18,166 | 18,672 | ||||
| Performance Ratios: | ||||||||
| Return on average shareholders’ equity (annualized) (%) | 9.77 | 8.31 | 10.53 | 10.27 | ||||
| Net interest margin (%) | 3.53 | 3.01 | 3.21 | 3.09 | ||||
| Average assets | $247,576 | $238,946 | $239,864 | $220,742 | ||||
| Return on average assets (annualized) (%) | 0.75 | 0.63 | 0.80 | 0.87 | ||||
| Shareholders’ equity to assets (%) | 7.50 | 7.23 | 7.64 | 8.07 | ||||
| Efficiency ratio (%) | 72.90 | 70.29 | 66.87 | 61.96 | ||||
| Asset Quality Data: | ||||||||
| Nonaccrual loans | $43 | $- | $118 | $- | ||||
| Troubled debt restructurings | $122 | $181 | $156 | $234 | ||||
| Other real estate | $- | $- | $- | $- | ||||
| Nonperforming loans | $43 | $22 | $118 | $82 | ||||
| Nonperforming loans to total assets (%) | 0.02 | 0.01 | 0.05 | 0.04 | ||||
| Nonperforming loans to total loans (%) | 0.03 | 0.02 | 0.07 | 0.06 | ||||
| Reserve for loan losses to total loans (%) | 1.28 | 1.12 | 1.08 | 1.08 | ||||
| Reserve for loan losses to nonperforming loans (%) | 4,918.60 | 6,763.64 | 1,494.92 | 1,790.24 | ||||
| Net recoveries for period | $351 | $20 | $78 | $68 | ||||
| Average loans | $161,534 | $128,836 | $138,529 | $117,309 | ||||
| Ratio of net recoveries to average loans (%) | 0.22 | 0.02 | 0.06 | 0.06 | ||||
| *RBAZ Bancorp, Inc. was formed on June 10, 2021. Data for 2021 period consists of Bank data beginning January 1, 2021 and Company data beginning June 10, 2021. | ||||||||
