PHOENIX, April 28, 2021 (GLOBE NEWSWIRE) -- Republic Bank of Arizona RBAZ ("RBAZ") ("Bank") announced a net income of $557,000, or $0.31 per share, for the quarter ended March 31, 2021 as compared to a net income of $12,000, or $0.01 per share, for the quarter ended March 31, 2020. Current quarter earnings of $0.31 per share were comprised of $0.17 per share attributable to core operations and $0.14 per share due to impacts from the Paycheck Protection Program ("PPP").
President and CEO Brian Ruisinger stated, "Looking back to Q1 2020 seems like another world. RBAZ was in a leadership transition, the global pandemic shut down the country and the Federal Reserve Bank reduced interest rates quicker than in 2008. Our team viewed the events as an opportunity to lead. We went headfirst into the Paycheck Protection Program and saw tremendous benefit in responding to and supporting small business owners, many of which experienced a lack of response from larger banks. Our entire staff is extremely proud of the turnaround RBAZ has made in just 12 months. We have doubled the asset size of the bank, increased earnings and improved efficiency all while facing historic headwinds. We have proven to be a resilient team."
"I am pleased to deliver our Q1 2021 results to our stakeholders as we achieved our goals, improving growth and earnings for the fourth consecutive quarter. RBAZ is well-positioned with ample liquidity and access to capital resources to accommodate additional growth in 2021. Our team's work continues to be reflected in our Bauer Five-Star bank rating."
Mr. Ruisinger continued, "We recently mailed out proxy statements for our 2020 Annual Shareholder Meeting to be held on May 6, 2021 that seeks approval for the formation of a holding company, RBAZ Bancorp, Inc., which will allow for raising capital, borrowing funds, repurchasing stock and possible acquisitions. This action is a natural evolution of our growth and maturity as an organization."
March 31, 2021 Highlights Include:
- Total loans of $118,717,000 increased $8,796,000, or 8.0%, from December 31, 2020. Of this increase, $4,869,000 was attributable to PPP loans and the remaining $3,927,000, or 3.6%, were portfolio loans.
- Total deposits of $193,395,000 were up $26,808,000, or 16.1%, from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020 and deepened existing relationships. Further, the Bank continued to improve its deposit mix, increasing non-interest bearing deposits to 31.4% of total deposits at March 31, 2021 from 26.2% of total deposits at December 31, 2020.
- Total interest income increased $500,000 to $1,773,000 for the quarter ended March 31, 2021 outpacing total interest income of $1,273,000 for the same period of the prior year equating to an increase of 39.3%.
- Cost of deposits was reduced 60.8% to 0.47% for the quarter ended March 31, 2021 from 1.20% for the quarter ended March 31, 2020.
- Total non-interest income is up $74,000 to $96,000 for the quarter ended March 31, 2021 compared to $22,000 for the same period of the prior year as the Bank improved fee income from service charges and other cash management services.
- Total non-interest expense is down $28,000 to $960,000 for the quarter ended March 31, 2021 compared to $988,000 for the quarter ended March 31, 2020.
The Bank remains "Well Capitalized" under the Community Bank Leverage Ratio (CBLR) framework adopted January 1, 2020 as follows:
| March 31, 2021 (%) | Ratio to be Well Capitalized (%) | |||
| CBLR ratio | 8.66 | 8.50 |
About the Company
Republic Bank of Arizona is a locally owned, community bank in Phoenix and Scottsdale, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, on-line 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. 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 | For the twelve months | ||||
| ended March 31, | ended December 31, | ||||
| 2021 | 2020 | 2020 | 2019 | ||
| (dollars in thousands, except per share data) | |||||
| Summary Income Data: | |||||
| Interest income | $1,773 | $1,273 | $6,137 | $5,153 | |
| Interest expense | 210 | 296 | 1,187 | 1,024 | |
| Net interest income | 1,563 | 977 | 4,950 | 4,129 | |
| Provision for loan losses | - | - | 100 | - | |
| Non-interest income | 96 | 22 | 153 | 116 | |
| Non-interest expense | 960 | 988 | 3,846 | 3,717 | |
| Realized gain (loss) on sales of securities | 1 | - | (2) | - | |
| Income before income taxes | 700 | 11 | 1,155 | 528 | |
| Provision for (benefit from) income tax | 143 | (1) | 301 | 79 | |
| Net income | $557 | $12 | $854 | $449 | |
| Per Share Data: | |||||
| Shares outstanding end-of-period | 1,807 | 1,805 | 1,807 | 1,806 | |
| Earnings per common share | $0.31 | $0.01 | $0.47 | $0.25 | |
| Cash dividend declared | $- | $- | $- | $512 | |
| Total shareholders' equity | $17,549 | $15,706 | $16,982 | $15,746 | |
| Book value per share | $9.71 | $8.70 | $9.40 | $8.72 | |
| Selected Balance Sheet Data: | |||||
| Total assets | $217,837 | $115,198 | $190,348 | $107,891 | |
| Securities available-for-sale, at fair value | 33,301 | 20,150 | 32,935 | 20,046 | |
| Securities held-to-maturity | 8,218 | 5,529 | 6,429 | 5,796 | |
| Loans | 118,717 | 73,601 | 109,921 | 70,192 | |
| Allowance for loan losses | 1,238 | 1,128 | 1,224 | 1,117 | |
| Deposits | 193,395 | 97,674 | 166,587 | 90,406 | |
| Other borrowings | 5,000 | - | 5,000 | - | |
| Shareholders' equity | 17,549 | 15,706 | 16,982 | 15,746 | |
| Performance Ratios: | |||||
| Return on average shareholders' equity (annualized) (%) | 13.03 | 0.31 | 5.27 | 2.85 | |
| Net interest margin (%) | 3.31 | 3.60 | 3.23 | 3.98 | |
| Average assets | $199,068 | $113,796 | $158,639 | $107,624 | |
| Return on average assets (annualized) (%) | 1.12 | 0.04 | 0.54 | 0.42 | |
| Shareholders' equity to assets (%) | 8.06 | 13.63 | 8.92 | 14.59 | |
| Efficiency ratio (%) | 57.27 | 97.41 | 74.56 | 86.36 | |
| Asset Quality Data: | |||||
| Nonaccrual loans | $- | $297 | $- | $303 | |
| Troubled debt restructurings | $256 | $525 | $266 | $535 | |
| Other real estate | $76 | $- | $76 | $- | |
| Nonperforming loans | $- | $484 | $- | $494 | |
| Nonperforming loans to total assets (%) | - | 0.42 | - | 0.46 | |
| Nonperforming loans to total loans (%) | - | 0.66 | - | 0.70 | |
| Reserve for loan losses to total loans (%) | 1.04 | 1.53 | 1.11 | 1.59 | |
| Reserve for loan losses to nonperforming loans (%) | n/a | 233.06 | n/a | 226.11 | |
| Net (recoveries) charge-offs for period | ($14) | ($11) | ($7) | $67 | |
| Average loans | $108,245 | $69,950 | $100,471 | $64,846 | |
| Ratio of (recoveries) charge-offs to average loans (%) | (0.01) | (0.02) | (0.01) | 0.10 | |
| Regulatory Capital Ratios: | |||||
| CBLR/Leverage ratio (%) | 8.66 | 13.86 | 9.12 | 15.04 | |
| Common Equity Tier 1 (%) | n/a | n/a | n/a | 21.50 | |
| Tier 1 capital to risk weighted assets (%) | n/a | n/a | n/a | 21.50 | |
| Total capital to risk weighted assets (%) | n/a | n/a | n/a | 22.75 | |
Contact: Brian Ruisinger
President and Chief Executive Officer
Phone: 602.277.2500
Email: bruisinger@republicaz.com
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