PHOENIX, Feb. 6, 2015 (GLOBE NEWSWIRE) -- RepublicBankAz, N.A. (OTCBB:RBAZ) ("RBAz") announced a net income of $516,000, or $.36 per diluted share, for the year ended December 31, 2014 as compared to a net loss of $392,000 or -$.28 per diluted share, for the same period in 2013. For the quarter ended December 31, 2014 RBAz reported a net loss of $22,000, or -$.01 per diluted share as compared to a net loss of $891,000, or -$.65 per diluted share for the same period in 2013.
President and Chief Executive Officer Ralph E. Tapscott stated, "We have made significant strides in our primary focus of operating the Bank in a safe and sound manner. Our liquidity position continues to improve and we continue to build our capital base and reduce the level of non-performing assets. Despite the current interest rate environment, the Bank continues to generate a favorable net interest margin and operating profit."
2014 Key Highlights Include:
- Full year return on average assets (ROAA) of .58% as compared to .45% for 2013.
- A tactical reduction in the loan portfolio through the year to bring our loan to deposit ratio more in line with peer institutions, resulting in a reduction to 95% as of December 31, 2014 from 115% as of December 31, 2013.
- 6% annual growth in total deposits and 11% annual growth in core customer deposits.
- The Bank's liquidity ratio has improved to 14% as of December 31, 2014 from 8% as of December 31, 2013.
- Directors and management approved raising Stage 1 capital to approximately 25% of goal.
- Scarlett Spring joins the Bank's Board of Directors.
- Ralph Tapscott joins the Bank as President and CEO.
The Bank remains "well capitalized" as follows:
| 2014 | Ratio to be | |
| Key Leverage and Capital Ratios | Year End | Well Capitalized |
| Leverage Ratio | 12.24% | 5.00% |
| Tier 1 Capital to Risk-Weighted Assets | 14.90% | 6.00% |
| Total Capital to Risk-Weighted Assets | 16.18% | 10.00% |
"We had forecast a full year ROAA of 0.61% and we produced a full year ROAA of 0.58%," noted Tapscott. "The largest differentiating variable was the level of provisions placed into our allowance for loan and lease loss. We expect, with continued improvement in asset quality, to be able to operate with nominal provision in future periods and exceed peer profitability averages."
"The Bank expects to be back in a growth mode in early 2015," continued Tapscott. "We are optimistic the Arizona regional economy will continue to improve, and the coming capital raise should provide growth capital to support some aspect of economic expansion."
The Bank's pretax operating profit exceeded both the national and statewide peer group. Favorable growth in core deposits increased liquidity, and lowered the loan to deposit ratio from 115% to 95%.
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 website: 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 | ||||
| 2014 YE | 2014 Q4 | 2013 YE | 2013 Q4 | |
| Total Securities ($000) | 5,596 | 2,885 | ||
| Net Loans & Leases (Excl HFS) ($000) | 70,125 | 77,648 | ||
| Total Assets ($000) | 87,259 | 89,131 | ||
| Total Deposits (Incl Dom & For) ($000) | 73,925 | 69,966 | ||
| Tot Liabilities (Excl Min Int) ($000) | 76,170 | 78,786 | ||
| GRB: Total Equity Capital ($000) | 11,089 | 10,345 | ||
| Total Liab, Min Int & Equity ($000) | 87,259 | 89,131 | ||
| Net Interest Income ($000) | 4,413 | 1,055 | 4,500 | 1,135 |
| Provision for Loan & Lease Losses ($000) | 1,473 | 141 | 1,019 | 615 |
| Total Non Interest Income ($000) | 294 | 82 | 567 | 100 |
| Total Non Interest Expense ($000) | 2,380 | 986 | 4,702 | 2,167 |
| Net Income ($000) | 516 | (22) | (392) | (891) |
| ROAA (%) | 0.58 | (0.10) | (0.45) | (3.93) |
| ROAE (%) | 4.81 | (0.80) | (3.61) | (33.00) |
| Net Interest Margin (%) | 5.07 | 4.90 | 5.29 | 5.12 |
| Cost of Funds (%) | 0.98 | 1.00 | 1.27 | 1.04 |
| Yield on Loans (%) | 6.37 | 6.45 | 6.62 | 6.31 |
| Efficiency Ratio (FTE) (%) | 50.56 | 86.72 | 92.80 | 175.47 |
| Per Share Data | ||||
| Net Income (Loss), Basic | $ 0.38 | $ (0.02) | $ (0.30) | $ (0.68) |
| Net Income (Loss), Diluted | $ 0.36 | $ (0.01) | $ (0.28) | $ (0.65) |
| Cash Dividends Declared | $ -- | $ -- | $ -- | $ -- |
| Book Value | $ 8.20 | $ 7.90 | ||
| Tangible Book Value | $ 8.07 | $ 7.77 | ||
| Other Real Estate Owned ($000) | 650 | 1,048 | ||
| Non Performing Loans ($000) | 1,062 | 2,042 | ||
| Reserve for Loan Losses/Total Loans (%) | 3.14 | 3.61 | ||
| Reserve for Loan Losses/Non Performing Loans (%) | 71.00 | 79.43 | ||
| Non Performing Assets/Total Assets (%) | 3.67 | 4.11 | ||