RBAZ Bancorp, Inc. Announces Unaudited Financial Results For the Quarter Ending September 30, 2021

PHOENIX, Oct. 27, 2021 (GLOBE NEWSWIRE) -- RBAZ Bancorp, Inc. (OTCBB:RBAZ) (the “Company”), parent company of Republic Bank of Arizona (the “Bank” or “RBAZ”), announced a consolidated net income of $524,000, or $0.29 per share, for the quarter ended September 30, 2021 and $1,545,000, or $0.86 per share, for the nine months ended September 30, 2021.

Republic Bank of Arizona announced a net income of $620,000, or $0.34 per share, for the quarter ended September 30, 2021 and $1,667,000, or $0.92 per share, for the nine months ended September 30, 2021 as compared to a net income of $223,000, or $0.12 per share, for the quarter ended September 30, 2020 and $394,000, or $0.22 per share, for the nine months ended September 30, 2020. Current year Bank earnings of $0.92 per share were comprised of $0.64 per share attributable to core operations and $0.36 per share due to impacts from the Paycheck Protection Program (“PPP”), offset by $0.08 per share attributable to the settlement of outstanding litigation. Prior year Bank earnings of $0.22 per share were comprised of $0.12 per share attributable to core operations and $0.10 per share due to impacts from PPP.

President and CEO Brian Ruisinger stated “I am pleased to report our third quarter performance as it represents our 6^th consecutive quarter of core earnings growth. It is very gratifying to look at our earnings compared to the same quarter only a year ago to see how far this team has come. This quarter had a feel of “back to basics” as we saw significant PPP loan forgiveness and were able to re-dedicate resources to core lending. As a result, we achieved net positive loan growth and exceeded our goal for the quarter.”

Mr. Ruisinger continued, “The Bank remains well-positioned with excess liquidity to fund viable lending opportunities that are presented. With our increased lending limit as a result of our capital raise in the prior quarter, we are able to consider larger proposals than in the past. Deposits decreased slightly in Q3 as we allowed higher cost funds to runoff due to our strong liquidity position. This action resulted in a 17% improvement in our cost of funds over the prior quarter. The national labor shortage has also impacted RBAZ similar to what we have seen and heard around the country. As a result, supporting our growth goals has required greater attention to staffing. Despite this challenge, the team stepped up, and we achieved our quarterly goals.”  

September 30, 2021 Bank Highlights Include:

• Total loans of $121,396,000 increased $11,475,000, or 10.4%, from December 31, 2020. PPP loans decreased $7,054,000 from December 31, 2020 resulting in an increase of $18,529,000, or 16.9%, in the Bank’s portfolio loans.
• Total deposits of $202,388,000 were up $35,801,000, or 21.5%, from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020, deepened existing relationships and earned new business through increased marketing efforts and online presence.
• Total interest income increased $488,000 to $2,073,000 for the quarter ended September 30, 2021 outpacing total interest income of $1,585,000 for the same period of the prior year equating to an increase of 30.8%.
• Cost of deposits was reduced 52.1% to 0.34% for the quarter ended September 30, 2021 from 0.71% for the quarter ended September 30, 2020.
• Total non-interest income is up $74,000 to $115,000 for the quarter ended September 30, 2021 compared to $41,000 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 up $95,000 to $1,073,000 for the quarter ended September 30, 2021 compared to $978,000 for the same period of the prior year resulting primarily from the settlement of outstanding litigation, which originated in 2014.

The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework adopted January 1, 2020 as follows:

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 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 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.

Contact:  Brian Ruisinger
President and Chief Executive Officer
Phone:  602.280.9404
Email:  bruisinger@republicaz.com