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RepublicBankAz Announces Unaudited Financial Results for the Quarter Ending June 30, 2015

PHOENIX, Aug. 14, 2015 (GLOBE NEWSWIRE) -- RepublicBankAz,N.A. (OTCBB:RBAZ) (“RBAz”) announced a net income of $95,000, or $.07 per share, for the quarter ended June 30, 2015 as compared to a net income of $133,000 or $.10 per share for the same period in 2014.

President and CEO, Ralph Tapscott stated, “Our quarter end June 30, 2015 earnings and resulting ROA of 0.44% is not indicative of the strides that we have made during 2015. I’m confident, however, that our efforts will result in future earnings results that are more positive than we have seen thus far this year. Significant strides continue to be made to guide RepublicBankAz to safe and sound operations. This operational and procedural realignment has come with a cost, but we are beginning to experience some benefit.”

First Quarter Highlights Include:

  • Return on average assets (ROAA) for the second quarter of .44% as compared to .60% for the second quarter of 2014.
  • Tactical reduction in the loan portfolio through June 30, 2015 in order to bring our loan to deposit ratio more in line with peer institutions resulting in a reduction to 94.49% as of June 30, 2015 from 115.1% as of December 31, 2013.
  • Total securities grew 100% since the end of the second quarter of 2014 to a level of $9,608,000 as of June 30, 2015.
  • The Bank’s liquidity ratio improved to 17.31% as of June 30, 2015 from 7.59% as of December 31, 2013.
  • Equity capital has grown 5.77% or $619,000 since the end of the second quarter of 2014.
  • Nonperforming assets as a percentage of total assets fell to 2.92% as of June 30, 2015, a 31.5% improvement from the levels seen at June 30, 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:

June 30, 2015 (%)Ratio to be Well
Capitalized (%)
Leverage Ratio 13.17 5.00
Tier 1 Capital to Risk Weighted Assets 17.52 6.00
Total Capital to Risk Weighted Assets 18.80 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 June 31,
For the Six months
ended June 30,
Year-End
2015 2014 2015 2014 2014
(dollars in thousands, except per share data)
Summary Income Data
Interest income$ 1,187 $ 1,316 $ 2,389 $ 2,576 $ 5,113
Interest expense 174 175 347 345 713
Net interest income 1,013 1,141 2,042 2,231 4,400
Provision for loan losses - 38 - 76 153
Non-interest income 87 99 170 131 334
Non-interest expense 939 976 1,863 1,792 3,726
Realized gains (losses) on sales of securities - - - - -
Income (loss) before income taxes 161 226 349 494 855
Provision for income tax (benefit) 66 93 141 175 339
Net income (loss) 95 133 208 319 516
Per Share Data:
Shares outstanding end-of-period 1,378 1,309 1,378 1,309 1,352
Earnings per common share 0.07 0.10 0.15 0.24 0.38
Cash dividend declared - - - - -
Total shareholders’ equity$ 11,354 $ 10,735 $ 11,354 $ 10,735 $ 11,089
Book value per share 8.24 8.20 8.24 8.20 8.20
Selected Balance Sheet Data:
Total assets$ 85,111 $ 90,244 $ 85,111 $ 90,244 $ 87,259
Securities available-for-sale 9,608 4,805 9,608 4,805 5,596
Securities held-to-maturity - - - - -
Loans 69,814 77,882 69,814 77,882 72,399
Allowance for loan losses 2,305 2,867 2,305 2,867 2,274
Deposits 71,445 71,282 71,445 71,282 73,925
Other borrowings 1,950 7,750 1,950 7,750 1,950
Shareholders’ equity 11,354 10,735 11,354 10,735 11,089
Performance Ratios:
Return on average shareholders’ equity (annualized) 3.35 5.00 3.35 6.05 4.81
Net interest margin (%) 4.79 5.10 4.84 5.05 5.09
Average assets 85,476 89,050 86,253 89,668 89,490
Return on average assets (annualized) (%) 0.44 0.60 0.48 0.71 0.58
Shareholders’ equity to assets (%) 13.34 11.90 13.34 11.90 12.71
Efficiency ratio (%) 85.36 78.71 84.22 75.87 78.71
Asset Quality Data:
Nonperforming loans 2,056 3,294 2,056 3,294 1,599
Other real estate and repos 433 549 433 549 650
Nonperforming assets 2,489 3,843 2,489 3,843 2,249
Nonperforming assets to total assets (%) 2.92 4.26 2.92 4.26 2.58
Nonperforming loans to total loans (%) 2.94 4.93 3.57 4.93 3.11
Reserve for loan losses to total loans (%) 3.30 3.68 3.30 3.68 3.14
Reserve for loan losses to nonperforming loans (%) 112.11 87.04 112.11 87.04 142.15
Reserve for loan losses to nonperforming assets (%) 92.61 74.60 92.61 74.60 101.07
Net charge-offs for period$ - $ 6 $ 2,182 $ 1,368 $ 2,182
Average loans 70,993 80,858 70,826 80,384 78,136
Ratio of charge‑offs to average loans (%) - 0.01 - 1.70 2.79
Regulatory Capital Ratios:
Tier 1 leverage capital ratio (%) 13.17 11.57 13.17 11.57 12.24
Tier 1 risk-based capital ratio (%) 17.52 13.18 17.52 13.18 14.90
Total risk-based capital ratio (%) 18.80 14.46 18.80 14.46 16.18


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

Source:RepublicBankAz, N.A.