RBAZ Bancorp, Inc. Announces Unaudited Financial Results For the Quarter Ending December 31, 2021

Rhea-AI Summary

RBAZ Bancorp, Inc. reported a consolidated net income of $373,000 ($0.21/share) for Q4 2021, and $1,918,000 ($1.06/share) for the year. The Republic Bank of Arizona's net income was $447,000 ($0.25/share) for Q4 and $2,114,000 ($1.17/share) for the year. Compared to 2020, annual earnings declined from $0.47/share. Loan growth surged 23.2% to $135,396,000 despite $9,920,000 in PPP loan forgiveness. Deposits rose 23.4% to $205,530,000. RBAZ maintains a Bauer Five-Star rating and a CBLR ratio of 10.55%, confirming it is well-capitalized.

Positive

• Consolidated net income increased to $373,000 for Q4 2021.
• Annual net income of $1,918,000 for 2021 shows solid performance.
• Total loans grew by 23.2% to $135,396,000 year-over-year.
• Deposits increased by 23.4% to $205,530,000.
• Cost of funds decreased by 49.3% to 0.34%.

Negative

• Annual earnings per share declined from $0.47 in 2020 to $1.06 in 2021.

Exceptional 2021 Performance Exceeds Strategic Goals

PHOENIX, Jan. 28, 2022 (GLOBE NEWSWIRE) -- RBAZ Bancorp, Inc. (OTCBB:RBAZ) (the “Company”), parent company of Republic Bank of Arizona (the “Bank” or “RBAZ”), announced a consolidated net income of $373,000, or $0.21 per share, for the quarter ended December 31, 2021 and $1,918,000, or $1.06 per share, for the twelve months ended December 31, 2021.

Republic Bank of Arizona announced a net income of $447,000, or $0.25 per share, for the quarter ended December 31, 2021 and $2,114,000, or $1.17 per share, for the twelve months ended December 31, 2021 as compared to a net income of $460,000, or $0.25 per share, for the quarter ended December 31, 2020 and $854,000, or $0.47 per share, for the twelve months ended December 31, 2020. Current year Bank earnings of $1.17 per share were comprised of $0.82 per share attributable to core operations and $0.43 per share due to impacts from the Paycheck Protection Program (“PPP”), offset by $0.08 per share attributable to the settlement of outstanding litigation. Prior year Bank earnings of $0.47 per share were comprised of $0.26 per share attributable to core operations and $0.21 per share due to impacts from PPP.

President and CEO Brian Ruisinger stated “Our fourth quarter performance saw record loan growth that occurred very late in the quarter, to be reflected in earnings in Q1 2022. As a result of our exceptional 2021 performance, annual incentives were earned in Q4 driving our expense line higher than in comparative quarters. We are excited to see our team achieve results above and beyond strategic goals and are thrilled to reward them for their efforts.”

Mr. Ruisinger continued, “RBAZ remains well capitalized and poised for continued growth in its mission to be the premier Arizona based bank, as reflected in our Bauer Five-Star bank rating. The Phoenix banking market has seen consolidation in recent months with two Arizona chartered banks announcing plans to sell to out of state entities. RBAZ remains committed to its independence and true Arizona community banking roots.”

December 31, 2021 Bank Highlights Include:

• Total loans of $135,396,000 increased $25,475,000, or 23.2%, from December 31, 2020. This increase consisted of $35,395,000, or 32.2%, in net portfolio loan growth, offset by $9,920,000 of PPP loan forgiveness received during the year.
• Total deposits of $205,530,000 were up $38,943,000, or 23.4%, from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020, deepened existing relationships and earned new business through increased marketing efforts and online presence.
• Total interest income increased $109,000 to $1,953,000 for the quarter ended December 31, 2021 outpacing total interest income of $1,844,000 for the same period of the prior year equating to an increase of 5.9%.
• Cost of funds was reduced 49.3% to 0.34% for the quarter ended December 31, 2021 from 0.67% for the quarter ended December 31, 2020.
• Total non-interest expense is up $307,000 to $1,237,000 for the quarter ended December 31, 2021 compared to $930,000 for the same period of the prior year resulting primarily from four additional full-time employees and incentives earned as the result of achieving 2021 annual goals.
  

The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework adopted January 1, 2020 as follows:

	December 31, 2021 (%)	Ratio to be Well Capitalized (%)
CBLR ratio	10.55	8.50

About the Company
RBAZ Bancorp, Inc. was established on June 10, 2021 as a single-bank holding company for its Arizona state-chartered bank subsidiary, Republic Bank of Arizona. The Company is traded over-the-counter as RBAZ.

About the Bank
Republic Bank of Arizona is a locally owned, community bank in Phoenix and Scottsdale, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, on-line and mobile banking to individuals, businesses and professionals. The Bank was established in April 2007 and is headquartered at 645 E. Missouri Avenue, Suite 108, Phoenix, AZ. Our second location is at 6909 E. Greenway Parkway, Suite 150, Scottsdale, AZ. The Bank is the wholly-owned subsidiary of RBAZ Bancorp, Inc. For further information, please visit our web site: www.republicbankaz.com.

Forward-looking Statements
This press release may include forward-looking statements about the Company and the Bank (collectively referred to herein as the “Company”), for which the Company 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 Company’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 Company 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 Company assumes no obligation to update any forward-looking statement.

	Summary Financial Information (unaudited)
	RBAZ Bancorp, Inc. (consolidated)*				Republic Bank of Arizona (Bank only)
	For the three months		For the twelve months		For the three months				For the twelve months
	ended December 31				ended December 31,				ended December 31,
		2021		2021		2021		2020		2021		2020
	(dollars in thousands, except per share data)
Summary Income Data:
Interest income	$1,953		$7,544		$1,953		$1,844		$7,544		$6,137
Interest expense		257		945		175		304		761		1,187
Net interest income		1,696		6,599		1,778		1,540		6,783		4,950
Provision for loan losses		52		176		52		29		176		100
Non-interest income		73		386		73		67		386		153
Non-interest expense		1,255		4,328		1,237		930		4,248		3,846
Realized loss on sales of securities		-		7		-		-		7		2
Income before income taxes		462		2,474		562		648		2,738		1,155
Provision for income tax		89		556		115		188		624		301
Net income	$373		$1,918		$447		$460		$2,114		$854
Per Share Data:
Shares outstanding end-of-period		1,805		1,805		1,807		1,807		1,807		1,807
Earnings per common share	$0.21		$1.06		$0.25		$0.25		$1.17		$0.47
Diluted earnings per common share	$0.20		$1.01		$0.24		$0.25		$1.12		$0.46
Cash dividend declared		$-		$-		$-		$-		$-		$-
Total shareholders’ equity	$18,672		$18,672		$24,360		$16,982		$24,360		$16,982
Book value per share	$10.34		$10.34		$13.48		$9.40		$13.48		$9.40
Selected Balance Sheet Data:
Total assets	$231,420		$231,420		$231,420		$190,348		$231,420		$190,348
Securities available-for-sale, at fair value		38,041		38,041		38,041		32,935		38,041		32,935
Securities held-to-maturity		8,510		8,510		8,510		6,429		8,510		6,429
Loans		135,396		135,396		135,396		109,921		135,396		109,921
Allowance for loan losses		1,468		1,468		1,468		1,224		1,468		1,224
Deposits		205,403		205,403		205,530		166,587		205,530		166,587
Other borrowings		5,870		5,870		-		5,000		-		5,000
Shareholders’ equity		18,672		18,672		24,360		16,982		24,360		16,982
Performance Ratios:
Return on average shareholders’ equity (annualized) (%)		7.99		10.27		7.26		10.91		9.98		5.27
Net interest margin (%)		3.06		3.09		3.21		3.26		3.20		3.23
Average assets	$230,370		$220,742		$230,370		$194,196		$220,742		$158,639
Return on average assets (annualized) (%)		0.65		0.87		0.77		0.94		0.96		0.54
Shareholders’ equity to assets (%)		8.07		8.07		10.53		8.92		10.53		8.92
Efficiency ratio (%)		70.94		61.96		66.12		57.37		58.72		74.56
Asset Quality Data:
Nonaccrual loans		$-		$-		$-		$-		$-		$-
Troubled debt restructurings	$234		$234		$234		$266		$234		$266
Other real estate		$-		$-		$-	$76			$-	$76
Nonperforming loans	$82		$82		$82		$	-	$82		$	-
Nonperforming loans to total assets (%)		0.04		0.04		0.04		-		0.04		-
Nonperforming loans to total loans (%)		0.06		0.06		0.06		-		0.06		-
Reserve for loan losses to total loans (%)		1.08		1.08		1.08		1.11		1.08		1.11
Reserve for loan losses to nonperforming loans (%)		1,790.24		1,790.24		1,790.24	n/a			1,790.24	n/a
Net recoveries for period	$26		$68		$26		$35		$68		$7
Average loans	$122,131		$117,309		$122,131		$105,733		$117,309		$100,471
Ratio of net recoveries to average loans (%)		0.02		0.06		0.02		0.03		0.06		0.01
Regulatory Capital Ratios:
CBLR ratio (%)		8.08		8.08		10.55		9.12		10.55		9.12
*RBAZ Bancorp, Inc. was formed on June 10, 2021. YTD consolidation consists of Bank data beginning January 1, 2021 and Company data beginning June 10, 2021.

Contact:  Brian Ruisinger
President and Chief Executive Officer
Phone:  602.280.9404
Email:  bruisinger@republicaz.com

FAQ

What were RBAZ's earnings for Q4 2021?

RBAZ reported consolidated net income of $373,000 or $0.21 per share for Q4 2021.

How did RBAZ perform in 2021 compared to 2020?

In 2021, RBAZ's annual net income was $1,918,000, down from $2,114,000 in 2020.

What is the current loan growth percentage for RBAZ?

RBAZ reported a loan growth of 23.2% for the year ending December 31, 2021.

What is RBAZ's CBLR ratio?

RBAZ's Community Bank Leverage Ratio (CBLR) is 10.55%, indicating it is well-capitalized.

How much did RBAZ's deposits increase by in 2021?

RBAZ's total deposits rose by 23.4% to $205,530,000 as of December 31, 2021.