Base income increases year over year as PPP ends
PHOENIX, July 27 11, 2022 (GLOBE NEWSWIRE) — RBAZ Bancorp, Inc. (OTCBB: RBAZ) (the “” Company), parent company of Republic Bank of Arizona (the “Bank” or “RBAZ”), reported net income of 405 $000, or $0.22 per share, for the three months ended June 30, 2022 and $778,000, or $0.43 per share, for the six months ended June 30, 2022.
Republic Bank of Arizona reported net income of $486,000, or $0.27 per share, for the three months ended June 30, 2022 and $936,000, or $0.52 per share, for the six months ended June 30, 2022. June 30, 2022, compared to net income of $490,000, or $0.27 per share, for the three months ended June 30, 2021 and $1,047,000, or $0.58 per share, for the six months ended June 30, 2021. The Bank’s current year earnings of $0.52 per share included $0.43 per share attributable to $0.09 per share due to the impacts of the Paycheck Protection Program ( “PPP”). Bank earnings of $0.58 per share last year were comprised of $0.37 per share attributable to core operations and $0.21 per share due to PPP impacts .
Chairman and CEO Brian Ruisinger said, “Our core revenue increased 16% year over year, with net interest income up $689,000 or 22%. I am pleased that our focused efforts on revenue and interest expense control have produced this result. When we look back on the first half of last year, the PPP rebate was at an all-time high of nearly 3x year-on-year, signaling the decline of the government aid package and allowing us to return to our core banking business.”
Mr. Ruisinger continued, “Due to the historic moves by the Federal Reserve to raise interest rates at a record pace, our clients and prospects have taken a cautious view of the economic impacts on their business plans. For some, it was a wake-up call to proceed urgently, while others took a break to see how the economy reacts to these large and frequent rate hikes in hopes of preventing inflation and achieve a stable quarter for the Bank. RBAZ remains well capitalized and poised for continued growth in its mission to be the premier Arizona-based bank, as evidenced by our Bauer Five-Star bank rating.”
June 30, 2022 Banking highlights include:
- Total loans of $135,293,000 decreased by $103,000, or 0.1%, from December 31, 2021. This decrease consisted of $3,929,000 of PPP loan forgiveness received during the year , offset by net portfolio loan growth of $3,826,000 or 2.8%.
- Total deposits of $225,521,000 increased by $19,991,000, or 9.7%, compared to December 31, 2021, as the Bank deepened existing relationships and won new business through increased marketing efforts, an online presence and referral sources.
- Total interest income increased by $467,000 to $2,211,000 for the quarter ended June 30, 2022, exceeding total interest income of $1,744,000 for the same period of the prior year, this which equates to an increase of 26.8%.
- Cost of funds was reduced to 0.32% for the quarter ended June 30, 2022, from 0.40% for the quarter ended June 30, 2021, equivalent to an improvement of 20.0%.
- Total non-interest expense increased by $281,000 to $1,258,000 for the quarter ended June 30, 2022, compared to $977,000 for the same period last year, mainly due to due to seven additional full-time employees and investments made in technology and marketing as a result of the Bank’s Growth
The Bank remains “well capitalized” under the Community Banking Leverage Ratio (CBLR) as follows:
| June 30, 2022 (%) | Ratio to be well capitalized (%) | |
| CBLR report | 9.59 | 9.00 |
About the company
RBAZ Bancorp, Inc. was established on June 10, 2021 as the sole bank holding company for its Arizona state chartered banking subsidiary, Republic Bank of Arizona. The Company is traded over-the-counter under the name 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 offering deposit and loan products and convenient, online and mobile banking services 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 more information, please visit our website: www.republicbankaz.com.
Forward-looking statements
This press release may contain forward-looking statements about the Company and the Bank (collectively referred to herein as the “Company””, for which the Company claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 – forward-looking statements are based on management’s current knowledge and beliefs and include information regarding the company’s possible or expected future financial condition and its results of operations and business. are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those set forth in the forward-looking statements. These factors include interest rate fluctuations, government policies and regulations. (including policies my and tax), legislation, economic conditions, the borrower’s ability to repay, operational factors and competition in the geographic and business areas in which the Company operates. All forward-looking statements included in this press release are based on information available at the time of publication, and the Company undertakes no obligation to update any forward-looking statement.
| Summary financial information (unaudited) | ||||||||||||||||
| RBAZ Bancorp, Inc. (consolidated) |
Arizona Republic Bank (Bank only) |
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| For the three months ended on June 30, |
For the six months ended on June 30, |
End of the year |
For the three months ended on June 30, |
For the six months ended on June 30, |
End of the year |
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| 2022 | 2022 | 2021* | 2022 | 2021 | 2022 | 2021 | 2021 | |||||||||
| (in thousands of dollars, except per share data) | ||||||||||||||||
| Income summary data: | ||||||||||||||||
| interest income | $2,211 | $4,145 | $7,544 | $2,211 | $1,744 | $4,145 | $3,517 | $7,544 | ||||||||
| Interest expense | 267 | 515 | 945 | 185 | 201 | 350 | 411 | 761 | ||||||||
| Net interest income | 1,944 | 3,630 | 6,599 | 2,026 | 1,543 | 3,795 | 3,106 | 6,783 | ||||||||
| Allowance for loan losses | 105 | 105 | 176 | 105 | 26 | 105 | 26 | 176 | ||||||||
| Non-interest income | 28 | 35 | 386 | 28 | 104 | 35 | 199 | 386 | ||||||||
| Non-interest charges | 1,286 | 2,476 | 4,328 | 1,258 | 977 | 2,428 | 1,938 | 4,248 | ||||||||
| Realized loss on sale of securities | – | – | seven | – | 8 | – | seven | seven | ||||||||
| income before taxes | 581 | 1,084 | 2,474 | 691 | 636 | 1,297 | 1,334 | 2,738 | ||||||||
| Provision for income tax | 176 | 306 | 556 | 205 | 146 | 361 | 287 | 624 | ||||||||
| Net revenue | $405 | $778 | $1,918 | $486 | $490 | $936 | $1,047 | $2,114 | ||||||||
| Data per share: | ||||||||||||||||
| Shares outstanding at the end of the period | 1,797 | 1,797 | 1,805 | 1,807 | 1,807 | 1,807 | 1,807 | 1,807 | ||||||||
| Earnings per common share | $0.22 | $0.43 | $1.06 | $0.27 | $0.27 | $0.52 | $0.58 | $1.17 | ||||||||
| Diluted earnings per common share | $0.21 | $0.41 | $1.02 | $0.27 | $0.27 | $0.52 | $0.58 | $1.17 | ||||||||
| Total shareholders’ equity | $17,573 | $17,573 | $18,672 | $22,911 | $23,620 | $22,911 | $23,620 | $24,360 | ||||||||
| Book value per share | $9.78 | $9.78 | $10.34 | $12.68 | $13.07 | $12.68 | $13.07 | $13.48 | ||||||||
| Balance sheet data selected: | ||||||||||||||||
| Total assets | $249,658 | $249,658 | $231,420 | $249,658 | $231,015 | $249,658 | $231,015 | $231,420 | ||||||||
| Securities available for sale, at fair value | 42,608 | 42,608 | 38,041 | 42,608 | 36 198 | 42,608 | 36 198 | 38,041 | ||||||||
| Securities held to maturity | 12,342 | 12,342 | 8,510 | 12,342 | 8,203 | 12,342 | 8,203 | 8,510 | ||||||||
| Loans | 135,293 | 135,293 | 135,396 | 135,293 | 116,897 | 135,293 | 116,897 | 135,396 | ||||||||
| Allowance for loan losses | 1,602 | 1,602 | 1,468 | 1,602 | 1,280 | 1,602 | 1,280 | 1,468 | ||||||||
| Deposits | 225,084 | 225,084 | 205 403 | 225 521 | 205,832 | 225 521 | 205,832 | 205,530 | ||||||||
| Other loans | 5,885 | 5,885 | 5,870 | – | – | – | – | – | ||||||||
| Shareholders’ equity | 17,573 | 17,573 | 18,672 | 22,911 | 23,620 | 22,911 | 23,620 | 24,360 | ||||||||
| Performance reports: | ||||||||||||||||
| Average return on shareholders’ equity (annualized) (%) | 9.22 | 8.85 | 10.27 | 8.31 | 10:44 am | 7.89 | 11.67 | 9.98 | ||||||||
| Net interest margin (%) | 3.13 | 3.07 | 3.09 | 3.28 | 2.92 | 3.22 | 3.10 | 3.20 | ||||||||
| Average asset | $256,644 | $247,843 | $220,742 | $256,644 | $220,981 | $247,843 | $210,085 | $220,742 | ||||||||
| Return on average assets (annualized) (%) | 0.63 | 0.63 | 0.87 | 0.76 | 0.89 | 0.76 | 1.01 | 0.96 | ||||||||
| Shareholders’ equity to assets (%) | 7.04 | 7.04 | 8.07 | 9.18 | 10.22 | 9.18 | 10.22 | 10.53 | ||||||||
| Efficiency rate (%) | 65.21 | 67.56 | 61.96 | 61.25 | 59.10 | 63.39 | 58.19 | 58.72 | ||||||||
| Asset quality data: | ||||||||||||||||
| Unaccrued loans | $- | $- | $- | $- | $- | $- | $- | $- | ||||||||
| Distressed Debt Restructurings | $173 | $173 | $234 | $173 | $249 | $173 | $249 | $234 | ||||||||
| Other real estate | $- | $- | $- | $- | $- | $- | $- | $- | ||||||||
| Non-performing loans | $139 | $139 | $82 | $139 | $- | $139 | $- | $82 | ||||||||
| Non-performing loans to total assets (%) | 0.06 | 0.06 | 0.04 | 0.06 | – | 0.06 | – | 0.04 | ||||||||
| Non-performing loans to total loans (%) | 0.10 | 0.10 | 0.06 | 0.10 | – | 0.10 | – | 0.06 | ||||||||
| Reserve for loan losses/total loans (%) | 1.18 | 1.18 | 1.08 | 1.18 | 1.09 | 1.18 | 1.09 | 1.08 | ||||||||
| Reserve for loan losses to non-performing loans (%) | 1,152.52 | 1,152.52 | 1,790.24 | 1,152.52 | n / A | 1,152.52 | n / A | 1,790.24 | ||||||||
| Net recoveries for the period | $9 | $29 | $68 | $9 | $15 | $29 | $30 | $68 | ||||||||
| Average loans | $130,784 | $133,956 | $117,309 | $130,784 | $113,783 | $133,956 | $114,843 | $117,309 | ||||||||
| Net collections to average loans ratio (%) | 0.01 | 0.02 | 0.06 | 0.01 | 0.01 | 0.02 | 0.03 | 0.06 | ||||||||
| Regulatory capital ratios: | ||||||||||||||||
| CBLR ratio (%) | n / A | n / A | n / A | 9.59 | 10.52 | 9.59 | 10.52 | 10:55 | ||||||||
| *RBAZ Bancorp, Inc. was established on June 10, 2021. Year-end consolidation includes bank data beginning January 1, 2021 and company data beginning June 10, 2021. | ||||||||||||||||
Contact person: Brian Ruisinger
President and CEO
Phone: 602.280.9404
E-mail: bruisinger@republicaz.com
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