RBAZ Bancorp, Inc. Announces Unaudited Financial Results for the Quarter Ending March 31, 2023
04/27/2023 - 04:42 PM
RBAZ Emphasizes its Strength Amid Industry Turmoil in Q1
PHOENIX, April 27, 2023 (GLOBE NEWSWIRE) -- RBAZ Bancorp, Inc. (OTCIQ: RBAZ) (the “Company”), parent company of Republic Bank of Arizona (the “Bank” or “RBAZ”), announced a consolidated net income of $462,000 , or $0.26 per share, for the quarter ended March 31, 2023 as compared to a consolidated net income of $374,000 , or $0.21 per share, for the quarter ended March 31, 2022. Current quarter earnings of $0.26 per share were attributable entirely to core operations. Prior quarter earnings of $0.21 per share were comprised of $0.18 per share attributable to core operations and $0.03 per share due to impacts from the Paycheck Protection Program (“PPP”).
President and CEO Brian Ruisinger stated, “We are pleased to report a 23.5% quarterly increase in net earnings over the same quarter last year primarily driven by our significant Q4 loan production supplemented by modest growth in Q1 of 1.5% . Asset quality continued to maintain at a high level with nominal past due and non-performing loans and was confirmed by excellent results from a routine regulatory exam that consumed the month of January.”
Mr. Ruisinger continued, “Given the recent turmoil in the banking industry, RBAZ stayed the course and reiterated its strength as a community bank. Despite strong liquidity, we took steps in Q1 to bolster our reserves by increasing our borrowing capacity by double. Our mission has not changed as a result of actions by non-traditional styles of banking. RBAZ remains well capitalized and poised for continued growth in its mission to be the premier Arizona-based community bank, as reflected in our Bauer Five-Star bank rating.”
March 31, 2023 Company Highlights Include:
Total loans of $165,363,000 increased $2,409,000 , or 1.5% , from December 31, 2022. The Company experienced a natural lull in loan production for the first quarter of 2023 after record loan growth exceeding $20 million in the fourth quarter of 2022. Total deposits of $225,683,000 increased $22,351,000 , or 11.0% , from December 31, 2022 as the Company gathered short-term deposits to bolster earnings by taking advantage of the current interest rate spread. Management prioritized liquidity in its 2023 Strategic Plan and deployed additional resources into deposit production. Total interest income increased $1,107,000 t o $3,041,000 for the quarter ended March 31, 2023 outpacing total interest income of $1,934,000 for the same period of the prior year equating to an increase of 57.2% . Cost of deposits increased to 1.57% for the quarter ended March 31, 2023 from 0.31% for the quarter ended March 31, 2022 as the result of upward rate pressure as the Federal Reserve increased interest rates by 4.75% since the first quarter of 2022. Total non-interest expense increased $493,000 t o $1,683,000 for the quarter ended March 31, 2023 compared to $1,190,000 for the same period of the prior year resulting primarily from several additional full-time employees, the addition of the Gilbert branch, and investments made in technology and marketing in support of the Company’s growth. The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework as follows:
March 31, 2023 (%) Ratio to be Well CBLR ratio 10.70 9.00
About the Company
About the Bank Republic Bank of Arizona is a locally owned, community bank in Phoenix, Scottsdale and Gilbert, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, online 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. Our third location opened in October 2022 at 1417 W. Elliot Road, Gilbert, 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 Company Financial Information (unaudited) For the three months ended March 31, For the twelve months ended December 31, 2023 2022 2022 2021* (dollars in thousands, except per share data) Summary Income Data: Interest income $3,041 $1,934 $9,218 $7,544 Interest expense 942 248 1,674 945 Net interest income 2,099 1,686 7,544 6,599 Provision for loan losses - - 218 176 Non-interest income 210 7 511 386 Non-interest expense 1,683 1,190 5,386 4,328 Realized loss on sales of securities - - - 7 Income before income taxes 626 503 2,451 2,474 Provision for income tax 164 129 538 556 Net income $462 $374 $1,913 $1,918 Per Share Data: Shares outstanding end-of-period 1,807 1,806 1,797 1,805 Earnings per common share $0.26 $0.21 $1.06 $1.06 Diluted earnings per common share $0.25 $0.20 $1.02 $1.01 Total shareholders’ equity $18,918 $18,012 $18,166 $18,672 Book value per share $10.47 $9.97 $10.11 $10.34 Selected Balance Sheet Data: Total assets $252,209 $249,174 $237,620 $231,420 Securities available-for-sale, at fair value 41,787 39,936 43,441 38,041 Securities held-to-maturity 12,031 8,996 12,176 8,510 Loans 165,363 132,938 162,954 135,396 Allowance for loan losses 2,115 1,488 1,764 1,468 Deposits 225,683 223,779 203,332 205,403 Other borrowings 5,907 5,878 14,900 5,870 Shareholders’ equity 18,918 18,012 18,166 18,672 Performance Ratios: Return on average shareholders’ equity (annualized) (%) 9.77 8.31 10.53 10.27 Net interest margin (%) 3.53 3.01 3.21 3.09 Average assets $247,576 $238,946 $239,864 $220,742 Return on average assets (annualized) (%) 0.75 0.63 0.80 0.87 Shareholders’ equity to assets (%) 7.50 7.23 7.64 8.07 Efficiency ratio (%) 72.90 70.29 66.87 61.96 Asset Quality Data: Nonaccrual loans $43 $- $118 $- Troubled debt restructurings $122 $181 $156 $234 Other real estate $- $- $- $- Nonperforming loans $43 $22 $118 $82 Nonperforming loans to total assets (%) 0.02 0.01 0.05 0.04 Nonperforming loans to total loans (%) 0.03 0.02 0.07 0.06 Reserve for loan losses to total loans (%) 1.28 1.12 1.08 1.08 Reserve for loan losses to nonperforming loans (%) 4,918.60 6,763.64 1,494.92 1,790.24 Net recoveries for period $351 $20 $78 $68 Average loans $161,534 $128,836 $138,529 $117,309 Ratio of net recoveries to average loans (%) 0.22 0.02 0.06 0.06 *RBAZ Bancorp, Inc. was formed on June 10, 2021. Data for 2021 period consists of Bank data beginning January 1, 2021 and Company data beginning June 10, 2021.
