RepublicBankAz Announces Unaudited Financial Results for the Quarter Ending September 30, 2015

PHOENIX, Nov. 05, 2015 (GLOBE NEWSWIRE) — RepublicBankAz, N.A. (OTCBB:RBAZ) (“RBAz”) announced a net income of $140,000, or $.08 per share, for the quarter ended September 30, 2015 as compared to a net income of $219,000 or $.17 per share for the same period in 2014.

President and CEO Ralph Tapscott stated, “Our quarter end September 30, 2015 earnings and resulting ROA of 0.64% is an improvement from the first two quarters of 2015 as it exceeds the year to date 2015 ROA of 0.54%.  Although the results of regulatory examinations are non-public information, we are continuing to make progress in complying with the Formal Agreement between the Bank and the Office of the Comptroller of the Currency.  We have been adding significantly experienced staff to our banking team and are receiving positive feedback from the majority of our customers and shareholders.  Safe and sound operation of the Bank, building shareholder value, and attracting and retaining quality staff are the tenants for the Bank moving into the future.”

Third Quarter Highlights Include:

  • Return on average assets (ROAA) for the third quarter of 0.64% compares favorably to banks headquartered in Arizona under a billion in asset size, where third quarter average ROAA was 0.46%.
  • Amy Lou Blunt joined RepublicBankAz, N.A. as a Sr. Loan Officer and during the quarter has assumed the role of Executive Vice President and Chief Credit Officer.
  • Completed 2014-2015 capital raising efforts with a total of 392,934 shares sold for gross proceeds approximating $1,473,000.
  • Equity Capital has increased approximately $1,636,000 since December 31, 2014 as a result of earnings and the capital raising efforts noted above, with a resultant increase of our leverage ratio ending September at 14.53% from 12.24% as of December 31, 2014.
  • The Bank’s liquidity ratio improved to 20.40% as of September 30, 2015 from 16.38% as of September 30, 2014.
  • Nonperforming assets as a percentage of total assets fell to 2.41% as of September 30, 2015 from 3.14% as of September 30, 2014.

“Management is focused on growing the bank by providing credit and cash management services to small and 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:

  September 30,
2015 (%)
Ratio to be Well
Capitalized (%)
Leverage Ratio   14.53   5.00
Tier 1 Capital to Risk Weighted Assets   18.88   6.00
Total Capital to Risk Weighted Assets   20.16   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 September 30,
For the nine months
ended September 30,
 
Year-End
  2015     2014     2015     2014     2014  
  (dollars in thousands, except per share data)
Summary Income Data          
Interest income $   1,228   $   1,309   $   3,617   $   3,885   $   5,113  
Interest expense   173     182     520     527     713  
Net interest income   1,055     1,127     3,097     3,358     4,400  
Provision for loan losses   24     31     24     107     153  
Non-interest income   60     81     230     212     334  
Non-interest expense   845     827     2,708     2,619     3,726  
Realized gains (losses) on sales of securities                    
Income (loss) before income taxes   246     350     595     844     855  
Provision for income tax (benefit)   106     131     247     306     339  
Net income (loss)   140     219     348     538     516  
Per Share Data:                              
Shares outstanding end-of-period   1,702     1,309     1,702     1,309     1,352  
Earnings per common share   0.08     0.17     0.20     0.41     0.38  
Cash dividend declared                    
Total shareholders’ equity $   12,725   $   10,931   $   12,725   $   10,931   $  11,089  
Book value per share   7.48     8.35     7.48     8.35     8.20  
Selected Balance Sheet Data:          
Total assets $   89,410   $   90,164   $   89,410   $   90,164   $  87,259  
Securities available-for-sale   9,885     4,667     9,885     4,667     5,596  
Securities held-to-maturity                    
Loans   71,797     76,375     71,797     76,375     72,399  
Allowance for loan losses   2,257     2,900     2,257     2,900     2,274  
Deposits   72,456     75,229     72,456     75,229     73,925  
Other borrowings   3,950     3,750     3,950     3,750     1,950  
Shareholders’ equity   12,725     10,931     12,725     10,931     11,089  
Performance Ratios:          
Return on average shareholders’ equity (annualized)   4.65     8.09     4.02     6.74     4.81  
Net interest margin (%)   4.89     5.15     4.86     5.08     5.09  
Average assets   86,867     89,212     86,457     89,516     89,490  
Return on average assets (annualized) (%)   0.64     0.98     0.54     0.80     0.58  
Shareholders’ equity to assets (%)   14.23     12.12     14.23     12.12     12.71  
Efficiency ratio (%)   75.78     68.46     81.39     73.36     78.71  
Asset Quality Data:          
Nonperforming loans   1,719     2,401     1,719     2,401     1,599  
Other real estate and repos   433     433     433     433     650  
Nonperforming assets   2,152     2,834     2,152     2,834     2,249  
Nonperforming assets to total assets (%)   2.41     3.14     2.41     3.14     2.58  
Nonperforming loans to total loans (%)   2.39     3.14     2.39     3.14     3.11  
Reserve for loan losses to total loans (%)   3.14     3.80     3.14     3.80     3.14  
Reserve for loan losses to nonperforming loans (%)   131.30     120.78     131.30     120.78     142.15  
Reserve for loan losses to nonperforming assets (%)   104.88     102.33     104.88     102.33     101.07  
Net charge-offs for period $   78   $   –   $   78   $   1,368   $   2,182  
Average loans   73,668     77,691     71,773     79,486     78,136  
Ratio of charge‑offs to average loans (%)   0.11          0.11      1.72     2.79  
Regulatory Capital Ratios:          
Tier 1 leverage capital ratio (%)   14.53     11.81     14.53     11.81     12.24  
Tier 1 risk-based capital ratio (%)   18.88     13.75     18.88     13.75     14.90  
Total risk-based capital ratio (%)   20.16     15.03     20.16     15.03     16.18  

 

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