RepublicBankAz Announces Unaudited Financial Results For the Quarter Ending June 30, 2016

Continued Asset Growth

Phoenix, Arizona, UNITED STATES


PHOENIX, Aug. 02, 2016 (GLOBE NEWSWIRE) -- RepublicBankAz,N.A. (OTCBB:RBAZ) (“RBAz”) announced a net income of $56,000, or $.03 per share, for the quarter ended June 30, 2016 as compared to a net income of $95,000 or $.07 per share for the same period in 2015.

President and CEO Ralph Tapscott stated, “Our quarter ended June 30, 2016 earnings of $56,000 and resulting ROA of 0.24% are not indicative of the strides we have made during 2016. We are, however, pleased that our year to date results of $206,000 in income and the resultant ROA of 0.46% are trending toward the results we saw for the year ended December 31, 2015. I’m confident, however, that our efforts will result in future earnings results that are more positive than we saw this quarter. Significant strides continue to be made to guide RepublicBankAz to safe and sound operations.”

Second Quarter Highlights Include:

  • Total Assets have grown $6.0 million and total deposits have grown $5.5 million since December 31, 2015 which represents annualized growth rates of 14% and 15%, respectively.
  • Nonperforming assets as a percentage of total assets fell to 2.91% as of June 30, 2016 an 11.8% improvement from the level at December 31, 2015.
  • Equity capital has grown 3.84% or $496,000 since December 31, 2015.
  • The Bank’s liquidity ratio improved to 35.7% as of June 30, 2016 from 23.72% as of December 31, 2015.
  • Total securities grew 47.1% since December 31, 2015 to a level of $20,815,000 as of June 30, 2016.
  • Non-interest expense of $871,000 for the second quarter of 2016 improved 7.2% from the second quarter of 2015.

“Management is focused on growing the bank by providing credit and cash management services for small to midsize businesses,” noted Tapscott. “As the Arizona economy continues to improve, so does the strength of the business sector and our ability to increase our market share within this sector.”


The Bank remains “well capitalized” as follows:
      
  June 30, 2016 (%)  Ratio to be Well
Capitalized (%)
Leverage Ratio   14.25    5.00
Tier 1 Capital to Risk Weighted Assets   22.10    6.00
Total Capital to Risk Weighted Assets   23.38    10.00
      

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 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
ended June 30,
For the Six months
ended June 30,
  Year-End
 2016  2015  2016  2015  2015 
 (dollars in thousands, except per share data)
Summary Income Data     
Interest income$  1,068 $  1,187 $  2,325 $  2,389 $  4,873 
Interest expense 188  174  367  347  697 
Net interest income 880  1,013  1,958  2,042  4,176 
Provision for loan losses -  -  -  -  24 
Non-interest income 40  87  86  170  313 
Non-interest expense 871  939  1,742  1,863  3,475 
Realized gains (losses) on sales of securities 22  -  22  -  - 
Income (loss) before income taxes 71  161  324  349  990 
Provision for income tax (benefit) 15  66  118  141  364 
Net income (loss) 56  95  206  208  626 
Per Share Data:     
Shares outstanding end-of-period 1,702  1,378  1,702  1,378  1,702 
Earnings per common share 0.03  0.07  0.12  0.15  0.37 
Cash dividend declared -  -  -  -  - 
Total shareholders’ equity$  13,415 $  11,354 $  13,415 $  11,354 $  12,919 
Book value per share 7.88  8.24  7.88  8.24  7.59 
Selected Balance Sheet Data:     
Total assets$91,749 $85,111 $91,749 $ 85,111 $ 85,724 
Securities available-for-sale 20,815  9,608  20,815  9,608  14,150 
Securities held-to-maturity -  -  -  -  - 
Loans 61,379  69,814  61,379  69,814  66,508 
Allowance for loan losses 2,115  2,305  2,115  2,305  2,268 
Deposits 76,117  71,445  76,117  71,445  70,616 
Other borrowings 1,950  1,950  1,950  1,950  1,950 
Shareholders’ equity 13,415  11,354  13,415  11,354  12,919 
Performance Ratios:     
Return on average shareholders’ equity (annualized) 1.69  3.35  3.13  3.68  5.28 
Net interest margin (%) 3.84  4.79  4.47  4.84  4.91 
Average assets 92,206  85,476  89,609  86,253  87,075 
Return on average assets (annualized) (%) 0.24  0.44  0.46  0.48  0.72 
Shareholders’ equity to assets (%) 14.62  13.34  14.62  13.34  15.07 
Efficiency ratio (%) 94.67  85.36  85.23  84.22  77.61 
Asset Quality Data:     
Nonperforming loans 2,371  2,056  2,371  2,056  2,526 
Other real estate and repos 303  433  303  433  303 
Nonperforming assets 2,674  2,489  2,674  2,489  2,829 
Nonperforming assets to total assets (%) 2.91  2.92  2.91  2.92  3.30 
Nonperforming loans to total loans (%) 3.86  2.94  3.86  2.94  3.80 
Reserve for loan losses to total loans (%) 3.45  3.30  3.45  3.30  3.41 
Reserve for loan losses to nonperforming loans (%)  89.20  112.11  89.20  112.11  89.79 
Reserve for loan losses to nonperforming assets (%) 79.09  92.61  79.09  92.61  80.17 
Net charge-offs for period -  -  162  -  78 
Average loans 62,285  70,993  61,822  70,826  70,756 
Ratio of charge‑offs to average loans (%)    .26    0.11  
Regulatory Capital Ratios:     
Tier 1 leverage capital ratio (%) 14.25  13.17  14.25  13.17  14.53 
Tier 1 risk-based capital ratio (%) 22.10  17.52  22.10  17.52  20.83 
Total risk-based capital ratio (%) 23.38  18.80  23.38  18.80  22.11 

 


        

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