RBAZ Bancorp's Impressive Financial Performance
PHOENIX, January 30, 2025 -- RBAZ Bancorp, Inc. (OTCIQ: RBAZ), the parent of Republic Bank of Arizona, has unveiled its strong financial results for the completion of fiscal year 2024. The company reported a remarkable consolidated net income of $793,000 for the fourth quarter, translating to $0.44 per share, reflecting a significant increase from $688,000 or $0.38 per share for the same period in the prior year. For the twelve months ending December 31, 2024, the net income stood at $3,379,000 or $1.90 per share, in comparison to $2,460,000 or $1.36 per share in 2023.
Record Earnings Driven by Strategic Growth
Brian Ruisinger, the President and CEO, expressed pride in the firm’s record earnings, marking a 37% improvement from the previous year. This performance is supported by a 15% increase in income over the same quarter last year, primarily fueled by solid loan growth at higher yield rates coupled with a notable rise in non-interest-bearing deposits. The bank achieved a 27% rise in net interest income while keeping operational expenses up by only 11%, despite incurring $365,000 in one-time merger costs related to plans with Pima Federal Credit Union.
Strategic Partnership and Growth Prospects
As outlined in a prior announcement aimed at merging with Pima Federal Credit Union, RBAZ received shareholder approval for the deal in late August of last year. Regulatory applications were accepted earlier this year, initiating a review process expected to culminate in a merger by the second quarter of the current financial year. Details and updates regarding the merger will be provided once necessary approvals are secured, showcasing RBAZ’s commitment to expanding its influence in the banking sector.
Additional Company Highlights as of December 31, 2024
- Total loans reached $222,731,000, representing a 10.4% increase, with $51,397,000 in new originations offset by $29,397,000 in maturities and participations sold.
- The company noted total deposits of $250,201,000, which is up 9.7%, bolstered by core deposits — 74.1% of which are non-interest-bearing.
- Total interest income rose to $4,615,000 for the fourth quarter, an impressive 21% rise compared to the same quarter of 2023.
- The cost of deposits dropped to 2.13%, showing a shift within the federal interest rate landscape.
- Overall non-interest expenses increased to $2,097,000, though core operating costs actually experienced a reduction due to lowered professional and marketing expenditures.
Company Capitalization
Under the Community Bank Leverage Ratio (CBLR) framework, RBAZ remains “Well Capitalized.” As of December 31, 2024, the CBLR ratio stood at 11.06%, comfortably above the 9.00% requirement.
About RBAZ Bancorp, Inc.
Established in June 2021, RBAZ Bancorp acts as the single-bank holding company for its subsidiary, Republic Bank of Arizona. The bank offers a comprehensive selection of deposit and loan products along with user-friendly online and mobile banking services tailored for various customer needs. With its roots tracing back to the founding of Republic Bank in April 2007, the business continues to enhance its community banking services in Phoenix and surrounding areas.
Frequently Asked Questions
What led to RBAZ's record earnings in 2024?
The impressive earnings are attributed to solid loan growth, higher yields on loans, and an increase in non-interest-bearing deposits, along with disciplined management of operational expenses.
What is the status of RBAZ's merger with Pima Federal Credit Union?
The merger received shareholder approval in August 2024, and regulatory reviews are currently underway, with expectations for completion in the second quarter of 2025.
How much did total interest income increase in the last quarter?
Total interest income for the quarter ended December 31, 2024, increased by $800,000, reaching $4,615,000.
What is RBAZ's Community Bank Leverage Ratio as of December 31, 2024?
As of December 31, 2024, RBAZ's CBLR was 11.06%, which exceeds the requirement for being recognized as “Well Capitalized” at 9.00%.
How does RBAZ generate its core deposits?
Core deposits have been generated through strengthening existing relationships and developing new clientele, with a significant portion being non-interest-bearing.
