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RepublicBankAz Announces Unaudited Financial Results for the Quarter Ending March 31, 2015

PHOENIX, May 5, 2015 (GLOBE NEWSWIRE) -- RepublicBankAz,N.A. (OTCBB:RBAZ) ("RBAz") announced a net income of $113,000, or $.08 per share, for the quarter ended March 31, 2015 as compared to a net income of $186,000 or $.14 per share for the same period in 2014.

President and CEO, Ralph Tapscott, stated, "Our March 31, 2015 earnings and resulting ROA of 0.52% exceeds the average results posted for the first quarter of 2015 for Arizona banks under a billion dollars in asset size, but I am confident we can do much better. Growing the loan portfolio, in light of new capital, is becoming a primary initiative. Significant strides have been made in the past year to guide RepublicBankAz to safe and sound operations and we continue to make progress to that end. This operational and procedural realignment has come with a cost, but we are also experiencing some benefit," concluded Tapscott.

First Quarter Highlights Include:

  • Return on average assets (ROAA) for the first quarter of .52% as compared to .82% for the first quarter of 2014.
  • Tactical reduction in the loan portfolio through March 31, 2015 in order to bring our loan to deposit ratio more in line with peer institutions resulting in a reduction to 94.33% as of March 31, 2015 from 115.1% as of December 31, 2013.
  • Total securities grew 155.6% since the end of the first quarter of 2014 to a level of $8,970,000 as of March 31, 2015.
  • The Bank's liquidity ratio improved to 18.49% as of March 31, 2015 from 7.59% as of December 31, 2013.
  • Completion of the Bank's private placement of 42,901 shares representing nearly $160,000 in new capital for the Bank, with an additional $563,000 committed by Directors and Executive Officers, for a total of $723,000.
  • Nonperforming assets as a percentage of total assets fell to 2.62% as of March 31, 2015 an 18% improvement from the levels seen at March 31, 2014.

"Management is focused on growing the bank by providing credit and cash management services to small to midsize businesses," noted Tapscott. "As the Arizona economy continues to improve, so does the strength of the business sector and our ability to increase our market share within this sector."

The Bank remains "well capitalized" as follows:

March 31, 2015
(%)
Ratio to be Well
Capitalized (%)
Leverage Ratio 12.85 5.00
Tier 1 Capital to Risk Weighted Assets 17.04 6.00
Total Capital to Risk Weighted Assets 18.30 10.00

About the Company

RepublicBankAz, N.A. is a locally owned, community bank in Phoenix, Arizona. RBAz is a full service community bank providing deposit and loan products, and convenient on-line banking to individuals, businesses and professionals. The Bank was established in April 2007 and operates out of a single location at 909 E. Missouri Avenue. 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
ended March 31,

For the year ended December 31,
2015 2014 2014 2013 2012
(dollars in thousands, except per share data)
Summary Income Data
Interest income $ 1,202 $ 1,260 $ 5,113 $ 5,378 $ 4,858
Interest expense 173 170 713 898 808
Net interest income 1,029 1,090 4,400 4,480 4,050
Provision for loan losses -- -- 153 1,019 800
Non-interest income 83 32 334 586 4,493
Non-interest expense 924 854 3,726 4,701 5,248
Realized gains (losses) on sales of securities -- -- -- -- --
Income (loss) before income taxes 188 268 855 (654) 2,495
Provision for income tax (benefit) 75 82 339 (262) (280)
Net income (loss) $ 113 $ 186 $ 516 $ (392) $ 2,775
Per Share Data:
Shares outstanding end-of-period 1,378 1,309 1,352 1,309 1,309
Earnings per common share 0.08 0.14 0.38 (0.30) 2.12
Cash dividend declared -- -- -- -- --
Total shareholders' equity $ 11,359 $ 10,563 $ 11,089 $ 10,345 $ 10 ,734
Book value per share 8.24 8.07 8.20 7.90 8.20
Selected Balance Sheet Data:
Total assets $ 86,958 $ 90,782 $ 87,259 $ 89,131 $ 81,665
Securities available-for-sale 8,970 3,510 5,595 2,885 --
Securities held-to-maturity -- -- -- -- --
Loans 69,163 78,125 72,399 80,560 75,165
Allowance for loan losses 2,293 2,252 2,274 2,912 2,019
Deposits 73,321 72,050 73,925 69,966 66,152
Other borrowings 1,950 7,250 1,950 7,250 3,750
Shareholders' equity $ 11,359 $ 10,563 $ 11,089 $ 10,345 $ 10,734
Performance Ratios:
Return on average shareholders' equity (annualized) 4.03% 7.12% 4.81% (3.61%) 30.13%
Net interest margin 4.94% 5.04% 5.09% 5.34% 5.41%
Average assets $ 87,029 $ 90,285 $ 89,490 $ 87,108 $ 76,624
Return on average assets (annualized) 0.52% 0.82% 0.58% (0.45%) 3.62%
Shareholders' equity to assets 13.06% 11.64% 12.71% 11.61% 13.14%
Efficiency ratio 83.09% 76.11% 78.71% 92.80% 61.43%
Asset Quality Data:
Nonperforming loans $ 1,841 $ 2,375 $ 1,599 $ 2,618 $ 1,167
Other real estate and repos 433 549 650 1,048 514
Nonperforming assets 2,274 2,924 2,249 3,666 1,681
Nonperforming assets to total assets 2.62% 3.22% 2.58% 4.11% 2.06%
Nonperforming loans to total loans 2.66% 3.04% 2.21% 3.25% 1.55%
Reserve for loan losses to total loans 3.32% 2.88% 3.14% 3.61% 2.69%
Reserve for loan losses to nonperforming loans. 124.55% 94.82% 142.15% 111.23% 173.01%
Reserve for loan losses to nonperforming assets 100.84% 77.02% 101.07% 79.43% 120.11%
Net charge-offs for period $ -- $ 1,362 $ 2,182 $ 165 $ --
Average loans 70,659 79,909 78,136 80,534 69,456
Ratio of net charge‑offs to average loans -- 1.70% 2.79% 0.20% --
Regulatory Capital Ratios:
Tier 1 leverage capital ratio 12.85% 11.24% 12.24% 10.50% 13.14%
Tier 1 risk-based capital ratio 17.04% 13.08% 14.90% 11.98% 14.54%
Total risk-based capital ratio 18.30% 14.36% 16.18% 13.28% 15.81%

CONTACT: Ralph Tapscott President and Chief Executive Officer Phone: 602.280.9403 Email: rtapscott@republicaz.com

Source:RepublicBankAz, N.A.