RepublicBankAz, N.A. Announces Unaudited Financial Results  For The Quarter Ending September 30, 201

PHOENIX, Nov. 02, 2016 (GLOBE NEWSWIRE) -- RepublicBankAz, N.A. (OTCBB:RBAZ) ("RBAz") announced a net income of $381,000, or $0.22 per share, for the quarter ended September 30, 2016, as compared to a net income of $140,000 or $0.08 per share for the same period in 2015.

President and CEO Ralph Tapscott stated, "We are pleased with our quarter ended September 30, 2016 earnings of $381,000 and resulting return on assets ("ROA") of 1.69%, as well as our year-to-date results of $587,000 in income and the resultant ROA of 0.87%.  We are proud that our hard work over the past few years was recognized by our regulators with the removal of the enforcement action we had been working under.   We will continue to build a safe and sound financial institution, and now our focus can be more directed towards fulfilling our customers' needs and building value for our shareholders.  Building the Bank north of $100 million in asset size is our next incremental goal and I'm confident we will cross that milestone in the near future."

Third Quarter Highlights Include:
  • On August 19 th the Office of the Comptroller of the Currency lifted the Formal Agreement the Bank entered into on May 31, 2013.
  • Total Assets have grown $4.2 million since December 31, 2015, which represents an annualized growth rate of 6.6%.
  • Total deposits have grown $3.4 million (despite a tactical reduction of $7.2 million in non-customer deposits) since December 31, 2015, which represents an annualized growth rate of 6.4%.
  • Nonperforming assets as a percentage of total assets decreased 34.9% from the level at December 31, 2015 to 2.15%, supporting a negative provision expense being recorded during the quarter.
  • Equity capital has grown 6.6% or $858,000 since December 31, 2015.
  • Non-interest expense for the third quarter improved 6.9% from the same period in 2015.

"Management is focused on growing the Bank by providing credit and cash management services for small to midsize businesses," noted Tapscott. "This quarter we booked in excess of $9 million in new loans, despite what is reflected on our balance sheet, and this is the best production the Bank has experienced in my term here.  We continue to maintain a strong pipeline for future loan growth and we have the capital and liquidity to support that growth. 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:

        September 30,2016 (%)       Ratio to be WellCapitalized (%)
Leverage Ratio         15.02         5.00
Tier 1 Capital to Risk Weighted Assets         22.81         6.00
Total Capital to Risk Weighted Assets         24.08         10.00
                 

About the CompanyRepublicBankAz, 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 StatementsThis 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 September 30, For the nine months ended September 30,   Year-End
  2016       2015       2016       2015       2015  
  (dollars in thousands, except per share data)
Summary Income Data          
Interest income $   1,170     $   1,228     $   3,495     $   3,617     $   4,873  
Interest expense   189       173       556       520       697  
Net interest income   981       1,055       2,939       3,097       4,176  
Provision for loan losses   (400 )     24       (400 )     24       24  
Non-interest income   34       60       120       230       313  
Non-interest expense   787       845       2,529       2,708       3,475  
Realized gains on sales of securities   -       -       22       -       -  
Income before income taxes   628       246       952       595       990  
Provision for income tax   247       106       365       247       364  
Net income   381       140       587       348       626  
Per Share Data:          
Shares outstanding end-of-period   1,702       1,702       1,702       1,702       1,702  
Earnings per common share   0.22       0.08       0.34       0.20       0.37  
Cash dividend declared   -       -       -       -       -  
Total shareholders' equity $   13,777     $   12,725     $   13,777     $   12,725     $   12,919  
Book value per share   8.09       7.48       8.09       7.48       7.59  
Selected Balance Sheet Data:          
Total assets $   89,998     $   89,410     $   89,998     $   89,410     $   85,724  
Securities available-for-sale   20,915       9,885       20,915       9,885       14,150  
Securities held-to-maturity   -       -       -       -       -  
Loans   60,155       71,797       60,155       71,797       66,508  
Allowance for loan losses   1,747       2,257       1,747       2,257       2,268  
Deposits   73,999       72,456       73,999       72,456       70,616  
Other borrowings   1,950       3,950       1,950       3,950       1,950  
Shareholders' equity   13,777       12,725       13,777       12,725       12,919  
Performance Ratios:          
Return on average shareholders' equity (annualized) (%)   11.21       4.65       5.88       4.02       5.28  
Net interest margin (%)   4.39       4.89       4.44       4.86       4.91  
Average assets   90,068       86,867       89,762       86,457       87,075  
Return on average assets (annualized) (%)   1.69       0.64       0.87       0.54       0.72  
Shareholders' equity to assets (%)   15.31       14.23       15.31       14.23       15.07  
Efficiency ratio (%)   77.54       75.78       82.67       81.39       77.61  
Asset Quality Data:          
Nonperforming loans   1,636       1,719       1,636       1,719       2,526  
Other real estate and repos   303       433       303       433       303  
Nonperforming assets   1,939       2,152       1,939       2,152       2,829  
Nonperforming assets to total assets (%)   2.15       2.41       2.15       2.41       3.30  
Nonperforming loans to total loans (%)   2.72       2.39       2.72       2.39       3.80  
Reserve for loan losses to total loans (%)   2.90       3.14       2.90       3.14       3.41  
Reserve for loan losses to nonperforming loans (%)    106.78       131.30       106.78       131.30       89.79  
Reserve for loan losses to nonperforming assets (%)   90.10       104.88       90.10       104.88       80.17  
Net charge-offs for period   -       78       162       78       78  
Average loans   63,116       73,668       62,253       71,773       70,756  
Ratio of charge-offs to average loans (%)         0.11        0.26        0.11        0.11   
Regulatory Capital Ratios:          
Tier 1 leverage capital ratio (%)   15.02       14.53       15.02       14.53       14.53  
Tier 1 risk-based capital ratio (%)   22.81       18.88       22.81       18.88       20.83  
Total risk-based capital ratio (%)   24.08       20.16       24.08       20.16       22.11  

 
Contact:  Ralph Tapscott, President and Chief Executive OfficerPhone:  602.280.9403Email:  rtapscott@republicaz.com

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