Republic Bank of Arizona Announces Unaudited Financial Results For the Quarter Ending March 31, 2021

Rhea-AI Summary

Republic Bank of Arizona (OTCBB:RBAZ) reported a net income of $557,000, or $0.31 per share, for Q1 2021, a significant increase from $12,000 or $0.01 per share in Q1 2020. The earnings included $0.17 per share from core operations and $0.14 from the Paycheck Protection Program (PPP). Total loans rose by 8.0% to $118.7 million, while deposits increased by 16.1% to $193.4 million. Interest income surged 39.3% to $1.77 million. The bank is well-capitalized with a CBLR of 8.66%.

Positive

• Net income increased significantly to $557,000, up from $12,000 year-over-year.
• Earnings per share rose to $0.31, driven by core operations and PPP participation.
• Total loans grew by 8.0% to $118.7 million, indicating strong demand.
• Deposits increased by 16.1% to $193.4 million, reflecting effective growth strategies.
• Interest income climbed by 39.3% to $1.77 million, enhancing revenue streams.
• The bank is recognized as 'Well Capitalized' under the CBLR framework with an 8.66% ratio.

Negative

• None.

Fourth Consecutive Quarter of Improved Growth and Earnings

PHOENIX, April 28, 2021 (GLOBE NEWSWIRE) -- Republic Bank of Arizona (OTCBB:RBAZ) (“RBAZ”) (“Bank”) announced a net income of $557,000, or $0.31 per share, for the quarter ended March 31, 2021 as compared to a net income of $12,000, or $0.01 per share, for the quarter ended March 31, 2020. Current quarter earnings of $0.31 per share were comprised of $0.17 per share attributable to core operations and $0.14 per share due to impacts from the Paycheck Protection Program (“PPP”).

President and CEO Brian Ruisinger stated, “Looking back to Q1 2020 seems like another world. RBAZ was in a leadership transition, the global pandemic shut down the country and the Federal Reserve Bank reduced interest rates quicker than in 2008. Our team viewed the events as an opportunity to lead. We went headfirst into the Paycheck Protection Program and saw tremendous benefit in responding to and supporting small business owners, many of which experienced a lack of response from larger banks. Our entire staff is extremely proud of the turnaround RBAZ has made in just 12 months. We have doubled the asset size of the bank, increased earnings and improved efficiency all while facing historic headwinds. We have proven to be a resilient team.”

“I am pleased to deliver our Q1 2021 results to our stakeholders as we achieved our goals, improving growth and earnings for the fourth consecutive quarter. RBAZ is well-positioned with ample liquidity and access to capital resources to accommodate additional growth in 2021. Our team’s work continues to be reflected in our Bauer Five-Star bank rating.”

Mr. Ruisinger continued, “We recently mailed out proxy statements for our 2020 Annual Shareholder Meeting to be held on May 6, 2021 that seeks approval for the formation of a holding company, RBAZ Bancorp, Inc., which will allow for raising capital, borrowing funds, repurchasing stock and possible acquisitions. This action is a natural evolution of our growth and maturity as an organization.”

March 31, 2021 Highlights Include:

• Total loans of $118,717,000 increased $8,796,000, or 8.0%, from December 31, 2020. Of this increase, $4,869,000 was attributable to PPP loans and the remaining $3,927,000, or 3.6%, were portfolio loans.
• Total deposits of $193,395,000 were up $26,808,000, or 16.1%, from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020 and deepened existing relationships. Further, the Bank continued to improve its deposit mix, increasing non-interest bearing deposits to 31.4% of total deposits at March 31, 2021 from 26.2% of total deposits at December 31, 2020.
• Total interest income increased $500,000 to $1,773,000 for the quarter ended March 31, 2021 outpacing total interest income of $1,273,000 for the same period of the prior year equating to an increase of 39.3%.
• Cost of deposits was reduced 60.8% to 0.47% for the quarter ended March 31, 2021 from 1.20% for the quarter ended March 31, 2020.
• Total non-interest income is up $74,000 to $96,000 for the quarter ended March 31, 2021 compared to $22,000 for the same period of the prior year as the Bank improved fee income from service charges and other cash management services.
• Total non-interest expense is down $28,000 to $960,000 for the quarter ended March 31, 2021 compared to $988,000 for the quarter ended March 31, 2020.

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

		March 31, 2021 (%)		Ratio to be Well Capitalized (%)
CBLR ratio		8.66		8.50

About the Company
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 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		For the twelve months
		ended March 31,		ended December 31,
		2021	2020	2020	2019
		(dollars in thousands, except per share data)
Summary Income Data:
Interest income		$1,773	$1,273	$6,137	$5,153
Interest expense		210	296	1,187	1,024
Net interest income		1,563	977	4,950	4,129
Provision for loan losses		-	-	100	-
Non-interest income		96	22	153	116
Non-interest expense		960	988	3,846	3,717
Realized gain (loss) on sales of securities		1	-	(2)	-
Income before income taxes		700	11	1,155	528
Provision for (benefit from) income tax		143	(1)	301	79
Net income		$557	$12	$854	$449
Per Share Data:
Shares outstanding end-of-period		1,807	1,805	1,807	1,806
Earnings per common share		$0.31	$0.01	$0.47	$0.25
Cash dividend declared		$-	$-	$-	$512
Total shareholders’ equity		$17,549	$15,706	$16,982	$15,746
Book value per share		$9.71	$8.70	$9.40	$8.72
Selected Balance Sheet Data:
Total assets		$217,837	$115,198	$190,348	$107,891
Securities available-for-sale, at fair value		33,301	20,150	32,935	20,046
Securities held-to-maturity		8,218	5,529	6,429	5,796
Loans		118,717	73,601	109,921	70,192
Allowance for loan losses		1,238	1,128	1,224	1,117
Deposits		193,395	97,674	166,587	90,406
Other borrowings		5,000	-	5,000	-
Shareholders’ equity		17,549	15,706	16,982	15,746
Performance Ratios:
Return on average shareholders’ equity (annualized) (%)		13.03	0.31	5.27	2.85
Net interest margin (%)		3.31	3.60	3.23	3.98
Average assets		$199,068	$113,796	$158,639	$107,624
Return on average assets (annualized) (%)		1.12	0.04	0.54	0.42
Shareholders’ equity to assets (%)		8.06	13.63	8.92	14.59
Efficiency ratio (%)		57.27	97.41	74.56	86.36
Asset Quality Data:
Nonaccrual loans		$-	$297	$-	$303
Troubled debt restructurings		$256	$525	$266	$535
Other real estate		$76	$-	$76	$-
Nonperforming loans		$-	$484	$-	$494
Nonperforming loans to total assets (%)		-	0.42	-	0.46
Nonperforming loans to total loans (%)		-	0.66	-	0.70
Reserve for loan losses to total loans (%)		1.04	1.53	1.11	1.59
Reserve for loan losses to nonperforming loans (%)		n/a	233.06	n/a	226.11
Net (recoveries) charge-offs for period		($14)	($11)	($7)	$67
Average loans		$108,245	$69,950	$100,471	$64,846
Ratio of (recoveries) charge-offs to average loans (%)		(0.01)	(0.02)	(0.01)	0.10
Regulatory Capital Ratios:
CBLR/Leverage ratio (%)		8.66	13.86	9.12	15.04
Common Equity Tier 1 (%)		n/a	n/a	n/a	21.50
Tier 1 capital to risk weighted assets (%)		n/a	n/a	n/a	21.50
Total capital to risk weighted assets (%)		n/a	n/a	n/a	22.75

Contact: Brian Ruisinger
President and Chief Executive Officer
Phone: 602.277.2500
Email: bruisinger@republicaz.com

FAQ

What was the net income for RBAZ in Q1 2021?

In Q1 2021, Republic Bank of Arizona (RBAZ) reported a net income of $557,000.

How much did earnings per share increase for RBAZ?

Earnings per share for RBAZ increased to $0.31 in Q1 2021, compared to $0.01 in Q1 2020.

What growth did RBAZ experience in total loans?

Total loans for RBAZ increased by 8.0% to $118.7 million from December 31, 2020.

What were the total deposits for RBAZ in Q1 2021?

Total deposits for RBAZ rose by 16.1% to $193.4 million in Q1 2021.

What is the current CBLR for RBAZ?

The Community Bank Leverage Ratio (CBLR) for RBAZ is 8.66%, indicating it is well-capitalized.