PHOENIX, Feb. 08, 2018 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $215,000, or $0.13 per share, for the quarter ended December 31, 2017 and a net income of $624,000, or $0.37 per share, for the year ended December 31, 2017 as compared to a net income of $89,000, or $0.05 per share, for the quarter ended December 31, 2016 and $676,000 or $0.40 per share, for the year ended December 31, 2016.
President and CEO Ralph Tapscott stated, “Last quarter I was pleased to announce we posted one of the best quarters in my tenure with the Bank, and this quarter would have surpassed the third quarter until the December 22, 2017 tax reform measure was signed into law. When the new law was signed, we, like many other financial institutions, revalued our deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the legislation. Based on this analysis, RBAZ recorded a one-time tax charge of approximately $268,000, or $0.16 per share, primarily related to the revaluation of these deferred tax items. This increase in income tax expense was reflected in our operating results for the fourth quarter of 2017 and was in addition to the normal provision for income tax.”
Mr. Tapscott continued, “Our focus for this year and into the future is to deepen relationships with our clients, and to be out in the community to develop new clientele. Our total asset growth of 41.8% and deposit growth of 52.1% for 2017 shows that we are maintaining our client centric focus and will continue to provide that exceptional service as we move the Bank’s offices a few blocks west to 645 East Missouri Suite 108 this spring. We marched past the $100 million in assets milestone during the quarter and set our focus on our longer term goal of exceeding $250 million. Our experienced team delivers service levels that are truly the differentiators that set us apart. We will continue to invest in the team that will deliver results. We have only begun to push the needle, and I hope you will continue to follow our progress.”
2017 Highlights Include:
- Total assets grew $36,256,000 or 41.8% during the year ended December 31, 2017 as compared to December 31, 2016.
- Since December 31, 2016, customer checking deposits have grown nearly $27,130,000 or 342% through the year ended December 31, 2017.
- Total deposit growth during the year ended December 31, 2017 was $37,152,000 or 52.1%.
- Changes in deposit composition, coupled with the payoff of FHLB term advances, have allowed RBAZ’s cost of funds to decrease by 10.8% during the year ended December 31, 2017 as compared to the prior year.
- Non-interest expense was reduced by 3.7% during the year ended December 31, 2017 as compared to the prior year.
The Bank remains “well capitalized” as follows:
| December 31, 2017 (%) | Ratio to be Well Capitalized (%) | ||
| Leverage Ratio............................................................................... | 13.08 | 5.00 | |
| Common Equity Tier 1................................................................. | 24.93 | 6.50 | |
| Tier 1 Capital to Risk Weighted Assets...................................... | 24.93 | 8.00 | |
| Total Capital to Risk Weighted Assets...................................... | 26.20 | 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 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 (dollars in thousands, except per share data or noted otherwise) | ||||||||||||
| For the three months ended December 31, | For the twelve months ended December 31, | |||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||
| Summary Income Data | ||||||||||||
| Interest income............................................................ | $ | 1,168 | $ | 1,073 | $ | 4,384 | $ | 4,556 | ||||
| Interest expense........................................................... | 157 | 176 | 628 | 733 | ||||||||
| Net interest income...................................................... | 1,011 | 897 | 3,756 | 3,823 | ||||||||
| Provision for (reduction in) loan losses....................... | (266 | ) | - | (416 | ) | (400 | ) | |||||
| Non-interest income..................................................... | 231 | 58 | 416 | 191 | ||||||||
| Non-interest expense................................................... | 803 | 818 | 3,222 | 3,347 | ||||||||
| Realized gains (losses) on sales of securities............... | 1 | - | 1 | 22 | ||||||||
| Income (loss) before income taxes.............................. | 706 | 137 | 1,367 | 1,089 | ||||||||
| Provision for income tax.............................................. | 491 | 48 | 743 | 413 | ||||||||
| Net income................................................................... | $ | 215 | $ | 89 | $ | 624 | $ | 676 | ||||
| Per Share Data: | ||||||||||||
| Shares outstanding end-of-period................................ | 1,702 | 1,702 | 1,702 | 1,702 | ||||||||
| Earnings per common share......................................... | $ | 0.13 | $ | 0.05 | $ | 0.37 | $ | 0.40 | ||||
| Cash dividend declared................................................ | - | - | - | - | ||||||||
| Total shareholders’ equity........................................... | $ | 14,015 | $ | 13,150 | $ | 14,015 | $ | 13,150 | ||||
| Book value per share................................................... | 8.23 | 7.73 | 8.23 | 7.73 | ||||||||
| Selected Balance Sheet Data: | ||||||||||||
| Total assets.................................................................. | $ | 122,923 | $ | 86,667 | $ | 122,923 | $ | 86,667 | ||||
| Securities available-for-sale......................................... | 20,570 | 21,658 | 20,570 | 21,658 | ||||||||
| Securities held-to-maturity........................................... | 6,320 | - | 6,320 | - | ||||||||
| Loans........................................................................... | 59,887 | 62,081 | 59,887 | 62,081 | ||||||||
| Allowance for loan losses............................................ | 1,665 | 1,751 | 1,665 | 1,751 | ||||||||
| Deposits....................................................................... | 108,489 | 71,337 | 108,489 | 71,337 | ||||||||
| Other borrowings......................................................... | - | 1,950 | - | 1,950 | ||||||||
| Shareholders’ equity.................................................... | 14,015 | 13,150 | 14,015 | 13,150 | ||||||||
| Performance Ratios: | ||||||||||||
| Return on average shareholders’ equity (annualized)... | 6.14 | 2.64 | 4.56 | 5.07 | ||||||||
| Net interest margin (%)................................................ | 3.72 | 4.02 | 3.96 | 4.33 | ||||||||
| Average assets............................................................. | 109,376 | 89,742 | 94,451 | 89,757 | ||||||||
| Return on average assets (annualized) (%)................... | 0.79 | 0.40 | 0.66 | 0.75 | ||||||||
| Shareholders’ equity to assets (%)............................... | 11.40 | 15.17 | 11.40 | 15.17 | ||||||||
| Efficiency ratio (%)...................................................... | 64.01 | 84.14 | 76.45 | 82.67 | ||||||||
| Asset Quality Data: | ||||||||||||
| Nonaccrual loans......................................................... | - | 735 | - | 735 | ||||||||
| Troubled debt restructurings........................................ | 592 | 817 | 592 | 817 | ||||||||
| Other real estate........................................................... | - | - | - | - | ||||||||
| Nonperforming assets.................................................. | 592 | 1,552 | 592 | 1,552 | ||||||||
| Nonperforming assets to total assets (%)..................... | 0.48 | 1.79 | 0.48 | 1.79 | ||||||||
| Nonperforming loans to total loans (%)....................... | 0.99 | 2.50 | 0.99 | 2.50 | ||||||||
| Reserve for loan losses to total loans (%).................... | 2.78 | 2.82 | 2.78 | 2.82 | ||||||||
| Reserve for loan losses to nonperforming loans (%).... | 281.25 | 112.82 | 281.25 | 112.82 | ||||||||
| Reserve for loan losses to nonperforming assets (%)... | 281.25 | 112.82 | 281.25 | 112.82 | ||||||||
| Net charge-offs for period............................................ | - | - | 144 | 162 | ||||||||
| Average loans.............................................................. | 61,431 | 61,672 | 61,409 | 62,108 | ||||||||
| Ratio of charge‑offs to average loans (%)..................... | - | - | 0.23 | 0.26 | ||||||||
| Regulatory Capital Ratios: | ||||||||||||
| Tier 1 leverage capital ratio (%).................................... | 13.08 | 15.19 | 13.08 | 15.19 | ||||||||
| Common Equity Tier 1 (%).......................................... | 24.93 | 22.50 | 24.93 | 22.50 | ||||||||
| Tier 1 risk-based capital ratio (%)................................ | 24.93 | 22.50 | 24.93 | 22.50 | ||||||||
| Total risk-based capital ratio (%)................................. | 26.20 | 23.77 | 26.20 | 23.77 | ||||||||
Contact:
Ralph Tapscott,
President and Chief Executive Officer
Phone: 602.280.9403
Email: rtapscott@republicaz.com