Republic Bank of Arizona Announces Unaudited Financial Results For the Quarter Ending March 31, 2019

First quarter shows positive trends

Phoenix, Arizona, UNITED STATES


PHOENIX, April 26, 2019 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $237,000, or $0.13 per share, for the quarter ended March 31, 2019 as compared to a net income of $130,000, or $0.08 per share, for the quarter ended March 31, 2018.

President and CEO Ralph Tapscott stated “We have started the year stronger than last year and we expect to hit our full year projections based on our team, our pipeline, and our local economies.  It is our team of dedicated bankers that I commend for growing our core deposits providing liquidity for our earning assets.  Loan production started the year strong as we entered January with a robust pipeline after experiencing a high degree of early payoffs in the 4th Quarter of 2018.”

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 are excited to announce we have entered into a lease on a new branch in the Kierland area of North Scottsdale as we look to deploy our excess capital and seek to expand our market convenience in the Phoenix Metropolitan Area. Our team’s work continues to be reflected in our Bauer Five-Star bank rating.”

March 31, 2019 Highlights Include:

  • Total interest income of $1,368,000 for the quarter ended March 31, 2019 outpaced total interest income of $1,204,000 for the same period of the prior year, and equates to an increase of 13.6%. 
  • Total deposits of $99,634,000 were up $11,390,000 or 12.9% from December 31, 2018, while total deposits are flat from March 31, 2018 to March 31, 2019.  In the most recent quarter we have seen significant deposit activity in our larger accounts. 
  • Total loans of $63,526,000 increased $1,509,000 or 2.4% from December 31, 2018 as the first quarter began with a strong pipeline to put the Bank on pace toward its annual loan growth goal. 
  • Total non-interest expense is down $94,000 to $814,000 for the quarter ended March 31, 2019 compared to $908,000 for the quarter ended March 31, 2018, a 10.4% improvement.             

The Bank remains “well capitalized” as follows:

 March 31, 2019
(%)
 Ratio to be Well
Capitalized (%)
Leverage Ratio14.52 5.00
Common Equity Tier 125.58 6.50
Tier 1 Capital to Risk Weighted Assets25.58 8.00
Total Capital to Risk Weighted Assets26.84 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.  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 
 For the three monthsFor the twelve months
 ended March 31,ended December 31,
  2019  2018 2018  2017 
 (dollars in thousands, except per share data)
Summary Income Data:    
Interest income$1,368 $1,204$5,123 $4,374 
Interest expense 248  140 714  628 
Net interest income 1,120  1,064 4,409  3,746 
Provision for (reduction in) loan losses -  - (450)  (416) 
Non-interest income (6)  48 328  425 
Non-interest expense 814  908 3,522  3,221 
Realized gain (loss) on sales of securities -  - (116)  1 
Income before income taxes 300  204 1,549  1,367 
Provision for income tax 63  74 442  743 
Net income$237 $130$1,107 $624 
Per Share Data:    
Shares outstanding end-of-period 1,763  1,702 1,744  1,702 
Earnings per common share$0.13 $0.08$0.63 $0.37 
Cash dividend declared -  - -  - 
Total shareholders’ equity$15,698 $13,872$15,194 $14,015 
Book value per share 8.90  8.15 8.71  8.23 
Selected Balance Sheet Data:    
Total assets$116,128 $113,302$104,105 $122,923 
Securities available-for-sale 21,442  23,953 21,888  21,779 
Securities held-to-maturity 6,207  6,298 6,230  6,320 
Loans 63,526  58,686 62,017  59,887 
Allowance for loan losses 1,190  1,669 1,184  1,665 
Deposits 99,634  99,036 88,244  108,489 
Other borrowings -  - -  - 
Shareholders’ equity 15,698  13,872 15,194  14,015 
Performance Ratios:    
Return on average shareholders’ equity (annualized) 6.22  3.73 7.7  4.56 
Net interest margin (%) 4.26  3.69 3.87  3.96 
Average assets 109,758  115,680 114,344  94,451 
Return on average assets (annualized) (%) 0.87  0.45 0.97  0.66 
Shareholders’ equity to assets (%) 13.52  12.24 14.59  11.4 
Efficiency ratio (%) 72.16  81.19 73.96  76.45 
Asset Quality Data:    
Nonaccrual loans -  - -  - 
Troubled debt restructurings 558  586 563  592 
Other real estate -  - -  - 
Nonperforming loans -  - -  - 
Nonperforming assets to total assets (%) -  - -  - 
Nonperforming loans to total loans (%) -  - -  - 
Reserve for loan losses to total loans (%) 1.87  2.84 1.91  2.78 
Reserve for loan losses to nonperforming loans (%) *  * *  * 
Net charge-offs (recoveries) for period (6)  - 5  144 
Average loans 63,307  57,917 63,356  61,409 
Ratio of charge‑offs (recoveries) to average loans (%) (0.04)  - 0.01  0.23 
Regulatory Capital Ratios:    
Tier 1 leverage capital ratio (%) 14.52  12.49 14.11  13.08 
Common Equity Tier 1 (%) 25.58  25.53 25.83  24.93 
Tier 1 risk-based capital ratio (%) 25.58  25.53 25.83  24.93 
Total risk-based capital ratio (%) 26.84  26.80 27.09  26.2