PHOENIX, Feb. 07, 2019 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, (OTCBB: RBAZ ) (“RBAZ”) (“Bank”) announced a net income of $326,000, or $0.19 per share, for the quarter ended December 31, 2018 and $1,107,000, or $0.63 per share for the twelve months ended December 31, 2018 as compared to a net income of $215,000, or $0.13 per share, for the quarter ended December 31, 2017 and $624,000 or $0.37 per share for the twelve months ended December 31, 2017.
President and CEO Ralph Tapscott stated, “I am pleased to report our fourth quarter results and am proud of our team. Quality loan growth has been a focus so I am happy to report positive loan growth for 2018, but we also have no non-performing loans in our portfolio. Our core earnings exceeded the same quarter last year by over 26% when adjusting for loan loss allowance reversals and deferred tax charges. Our deposits jumped 52% in 2017 and normalized in 2018 by decreasing 19% of that prior year spike as our two largest depositors utilized some of their excess cash for normal operating distributions. While we experienced some early payoffs in the fourth quarter, our pipeline is robust so we expect a strong start to our Q1 loan growth.”
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 continue to enjoy a Bauer Five-Star bank rating further supporting our foundation and strength.”
December 31, 2018 Highlights Include:
- Total interest income of $1,286,000 for the quarter ended December 31, 2018 exceeded total interest income of $1,159,000 for the same period of the prior year, and represents an increase of 10.9% as loan growth and yields on invested funds increased over the same period a year ago.
- Quarterly interest expense for the December 31, 2018 quarter increased 29.3% or $47,000 over the same quarter in 2017 as interest rate increases by the Federal Reserve Bank prompted the Phoenix market competitors to follow suit.
- Total loans decreased $6,500,000 to $62,000,000 for the quarter ended December 31, 2018, a 9.5% decrease as a result of a series of large early payoffs. Loan growth was $2,130,000 or 3.6% for the year compared with a decrease of $2,200,000 or 3.5% for the previous year ended.
- Total deposits of $88,250,000 were down $8,200,000 for the fourth quarter, as two of our largest depositors decreased their balances for normal operating distributions.
The Bank remains “well capitalized” as follows:
| December 31, 2018 (%) | Ratio to be Well Capitalized (%) | ||||
| Leverage Ratio | 14.11 | 5.00 | |||
| Common Equity Tier 1 | 25.83 | 6.50 | |||
| Tier 1 Capital to Risk Weighted Assets | 25.83 | 8.00 | |||
| Total Capital to Risk Weighted Assets | 27.09 | 10.00 | |||
About the Company
Republic Bank of Arizona is a state chartered community bank located 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 with a business and commercial focus. 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 | |||||||||||||||
| (dollars in thousands, except per share data or noted otherwise) | |||||||||||||||
| For the Three months ended December 31, | For the Twelve months ended December 31, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| Summary Income Data | |||||||||||||||
| Interest income | $ | 1,303 | $ | 1,168 | $ | 5,123 | $ | 4,379 | |||||||
| Interest expense | 203 | 157 | 714 | 628 | |||||||||||
| Net interest income | 1,100 | 1,011 | 4,409 | 3,751 | |||||||||||
| Provision for (reduction in) loan losses | (150 | ) | (266 | ) | (450 | ) | (416 | ) | |||||||
| Non-interest income | 35 | 231 | 328 | 421 | |||||||||||
| Non-interest expense | 844 | 803 | 3,522 | 3,222 | |||||||||||
| Realized gains (losses) on sales of securities | - | 1 | (116 | ) | 1 | ||||||||||
| Income before income taxes | 441 | 706 | 1,549 | 1,367 | |||||||||||
| Provision for income tax | 115 | 491 | 442 | 743 | |||||||||||
| Net income | $ | 326 | $ | 215 | $ | 1,107 | $ | 624 | |||||||
| Per Share Data: | |||||||||||||||
| Shares outstanding end-of-period | 1,744 | 1,702 | 1,744 | 1,702 | |||||||||||
| Earnings per common share | $ | 0.19 | $ | 0.13 | $ | 0.63 | $ | 0.37 | |||||||
| Cash dividend declared | - | - | - | - | |||||||||||
| Total shareholders’ equity | $ | 15,194 | $ | 14,015 | $ | 15,194 | $ | 14,015 | |||||||
| Book value per share | 8.71 | 8.23 | 8.71 | 8.23 | |||||||||||
| Selected Balance Sheet Data: | |||||||||||||||
| Total assets | $ | 104,105 | $ | 122,923 | $ | 104,105 | $ | 122,923 | |||||||
| Securities available-for-sale | 20,676 | 20,570 | 20,676 | 20,570 | |||||||||||
| Securities held-to-maturity | 6,230 | 6,320 | 6,230 | 6,320 | |||||||||||
| Loans | 62,017 | 59,887 | 62,017 | 59,887 | |||||||||||
| Allowance for loan losses | 1,184 | 1,665 | 1,184 | 1,665 | |||||||||||
| Deposits | 88,244 | 108,489 | 88,244 | 108,489 | |||||||||||
| Other borrowings | - | - | - | - | |||||||||||
| Shareholders’ equity | 15,194 | 14,015 | 15,194 | 14,015 | |||||||||||
| Performance Ratios: | |||||||||||||||
| Return on average shareholders’ equity (annualized) | 8.75 | 6.14 | 7.70 | 4.56 | |||||||||||
| Net interest margin (%) | 4.00 | 3.72 | 3.87 | 3.96 | |||||||||||
| Average assets | 110,668 | 109,376 | 114,344 | 94,451 | |||||||||||
| Return on average assets (annualized) (%) | 1.18 | 0.79 | 0.97 | 0.66 | |||||||||||
| Shareholders’ equity to assets (%) | 14.59 | 11.40 | 14.59 | 11.40 | |||||||||||
| Efficiency ratio (%) | 73.95 | 64.01 | 73.96 | 76.45 | |||||||||||
| Asset Quality Data: | |||||||||||||||
| Nonaccrual loans | - | - | - | - | |||||||||||
| Troubled debt restructurings | 563 | 592 | 563 | 592 | |||||||||||
| Other real estate | - | - | - | - | |||||||||||
| Nonperforming assets | - | - | - | - | |||||||||||
| Nonperforming assets to total assets (%) | - | - | - | - | |||||||||||
| Nonperforming loans to total loans (%) | - | - | - | - | |||||||||||
| Reserve for loan losses to total loans (%) | 1.91 | 2.78 | 1.91 | 2.78 | |||||||||||
| Reserve for loan losses to nonperforming loans (%) | * | * | * | * | |||||||||||
| Net charge-offs for period | 5 | - | 5 | 144 | |||||||||||
| Average loans | 64,897 | 61,431 | 63,356 | 61,409 | |||||||||||
| Ratio of charge‑offs to average loans (%) | 0.01 | - | 0.01 | 0.23 | |||||||||||
| Regulatory Capital Ratios: | |||||||||||||||
| Tier 1 leverage capital ratio (%) | 14.11 | 13.08 | 14.11 | 13.08 | |||||||||||
| Common Equity Tier 1 (%) | 25.83 | 24.93 | 25.83 | 24.93 | |||||||||||
| Tier 1 risk-based capital ratio (%) | 25.83 | 24.93 | 25.83 | 24.93 | |||||||||||
| Total risk-based capital ratio (%) | 27.09 | 26.20 | 27.09 | 26.20 | |||||||||||
| * Denominator is zero | |||||||||||||||
Contact: Ralph Tapscott, President and Chief Executive Officer Phone: 602.280.9403 Email: rtapscott@republicaz.com
