RBAZ Bancorp, Inc. Announces Unaudited Financial Results for the Quarter and Year Ending December 31, 2023
RBAZ Bancorp, Inc., parent company of Republic Bank of Arizona, reported a 29% increase in earnings year-over-year, with consolidated net income of $688,000 for the quarter ended December 31, 2023. The company also announced a 23.9% increase in total loans, totaling $201,829,000, and a 12.2% increase in total deposits, reaching $228,172,000. Additionally, RBAZ's total interest income increased by 45.7% to $3,815,000 for the quarter ended December 31, 2023, while total non-interest expenses increased by $278,000 compared to the same period in the prior year. The Bank remains 'Well Capitalized' under the Community Bank Leverage Ratio framework, with a CBLR ratio of 10.68% as of December 31, 2023.
Positive
29% year-over-year increase in earnings
23.9% increase in total loans
12.2% increase in total deposits
45.7% increase in total interest income
Well Capitalized under the Community Bank Leverage Ratio framework
01/29/2024 - 04:34 PM
RBAZ Posts Record Performance; Earnings Up 29% YoY
PHOENIX, Jan. 29, 2024 (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 $688,000 , or $0.38 per share, for the quarter ended December 31, 2023 and $2,460,000 , or $1.36 per share, for the twelve months ended December 31, 2023 as compared to a consolidated net income of $644,000 , or $0.36 per share, for the quarter ended December 31, 2022 and $1,913,000 , or $1.06 per share, for the twelve months ended December 31, 2022. Current year earnings of $1.36 per share were attributable entirely to core operations. Prior year earnings of $1.06 per share were comprised of $0.96 per share attributable to core operations and $0.10 per share due to impacts from the Paycheck Protection Program.
President and CEO Brian Ruisinger stated “Reflecting on the year, we experienced the first bank failures in over a decade, historic rate increases by the Federal Reserve and record inflation impacting all economic sectors. Specifically in the banking industry, these failures were not a result of credit stress rather the fallout from the Federal Reserve increasing rates over 500 basis points resulting in liquidity stress. The RBAZ team remained calm, stayed the course and posted an earnings performance that exceeded our goals for the year and equated to a 29% increase year-over-year.”
Mr. Ruisinger continued, “At the beginning of Q4, we opened our new branch on Scottsdale Road representing a significant step in our brand visibility in the greater Phoenix market. Our expanded presence in the valley has allowed the team to capitalize on new lending opportunities resulting in the achievement of $200 million in total loans during Q4, a historic milestone for the Bank. Ending 2023 with a strong earnings performance, 14% asset growth and excellent credit quality amid all the headwinds coming at us is a tremendous source of pride. 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.”
December 31, 2023 Company Highlights Include:
Total loans of $201,829,000 increased $38,875,000 , or 23.9% , from December 31, 2022 as the Company experienced significant, diversified loan growth during the year. Total deposits of $228,172,000 increased $24,840,000 , or 12.2% , from December 31, 2022 and relate entirely to core deposit generation as the short-term deposits gathered earlier in the year withdrew in the fourth quarter, as expected. The increase in core deposits was the result of deepening of existing relationships and cultivation of new banking relationships as management prioritized liquidity in its 2023 Strategic Plan and deployed additional resources into deposit production. Total borrowings of $20,929,000 at December 31, 2023 included $15,000,000 in advances from the Federal Home Loan Bank to support significant loan growth that occurred late in the fourth quarter. Total interest income increased $1,196,000 t o $3,815,000 for the quarter ended December 31, 2023 outpacing total interest income of $2,619,000 for the same period of the prior year equating to an increase of 45.7% . Cost of deposits increased to 2.13% for the quarter ended December 31, 2023 from 1.19% for the quarter ended December 31, 2022 as the result of upward rate pressure as the Federal Reserve continued to increase interest rates during 2023. Additionally, customers placed funds in interest bearing products to take advantage of the high-rate environment in anticipation of potential rate decreases in 2024 resulting in a change in deposit product mix for the Company. Total non-interest expense increased $278,000 t o $1,858,000 for the quarter ended December 31, 2023 compared to $1,580,000 for the same period of the prior year resulting primarily from several additional full-time employees, the addition of the new Scottsdale AZ branch and conversion of the existing location to an administrative office, 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:
December 31, 2023 (%) Ratio to be Well CBLR ratio 10.68 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. At the end of September 2023, our second location at 6909 E. Greenway Parkway, Suite 150, Scottsdale, AZ was converted to an administrative office, and our Scottsdale branch was relocated to 7373 N. Scottsdale Road, Suite A-195, Scottsdale, AZ. Our third location is located 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 December 31, For the twelve months ended December 31, 2023 2022 2023 2022 (dollars in thousands, except per share data) Summary Income Data: Interest income $3,815 $2,619 $14,208 $9,218 Interest expense 1,359 692 4,742 1,674 Net interest income 2,456 1,927 9,466 7,544 Provision for credit losses - 47 - 218 Non-interest income 219 390 820 511 Non-interest expense 1,858 1,580 7,142 5,386 Income before provision for income taxes 817 690 3,144 2,451 Provision for income tax 129 46 684 538 Net income $688 $644 $2,460 $1,913 Per Share Data: Shares outstanding end-of-period 1,795 1,797 1,795 1,797 Earnings per common share $0.38 $0.36 $1.36 $1.06 Diluted earnings per common share $0.37 $0.34 $1.33 $1.02 Book value per share $11.77 $10.11 $11.77 $10.11 Selected Balance Sheet Data: Total assets $272,044 $237,620 $272,044 $237,620 Securities available-for-sale, at fair value 40,998 43,441 40,998 43,441 Securities held-to-maturity 10,648 12,176 10,648 12,176 Loans 201,829 162,954 201,829 162,954 Allowance for credit losses 2,116 1,764 2,116 1,764 Deposits 228,172 203,332 228,172 203,332 Other borrowings 20,929 14,900 20,929 14,900 Shareholders’ equity 21,128 18,166 21,128 18,166 Performance Ratios: Return on average shareholders’ equity (annualized) (%) 13.03 14.18 11.64 10.53 Net interest margin (%) 3.81 3.46 3.68 3.21 Average assets $265,190 $227,809 $264,488 $239,864 Return on average assets (annualized) (%) 1.04 1.13 0.93 0.80 Shareholders’ equity to assets (%) 7.77 7.64 7.77 7.64 Efficiency ratio (%) 69.46 68.19 69.43 66.87 Asset Quality Data: Nonaccrual loans $209 $118 $209 $118 Troubled debt restructurings $- $156 $- $156 Other real estate owned $- $- $- $- Nonperforming loans $209 $118 $209 $118 Nonperforming loans to total assets (%) 0.08 0.05 0.08 0.05 Nonperforming loans to total loans (%) 0.10 0.07 0.10 0.07 Reserve for credit losses to total loans (%) 1.05 1.08 1.05 1.08 Reserve for credit losses to nonperforming loans (%) 1,012.44 1,494.92 1,012.44 1,494.92 Net recoveries for period $- $25 $352 $78 Average loans $192,129 $146,628 $176,146 $138,529 Ratio of net recoveries to average loans (%) n/a 0.02 0.20 0.06
bruisinger@republicaz.com
What is the consolidated net income for the quarter ended December 31, 2023?
The consolidated net income for the quarter ended December 31, 2023, was $688,000.
What is the CBLR ratio as of December 31, 2023?
The CBLR ratio as of December 31, 2023, is 10.68%.
What was the percentage increase in total loans from December 31, 2022, to December 31, 2023?
Total loans increased by 23.9% from December 31, 2022, to December 31, 2023.
What was the percentage increase in total deposits from December 31, 2022, to December 31, 2023?
Total deposits increased by 12.2% from December 31, 2022, to December 31, 2023.
What was the percentage increase in total interest income for the quarter ended December 31, 2023, compared to the same period in the prior year?
Total interest income increased by 45.7% for the quarter ended December 31, 2023, compared to the same period in the prior year.
