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

PHOENIX, Nov. 05, 2015 (GLOBE NEWSWIRE) -- RepublicBankAz, N.A. (OTCBB:RBAZ) (“RBAz”) announced a net income of $140,000, or $.08 per share, for the quarter ended September 30, 2015 as compared to a net income of $219,000 or $.17 per share for the same period in 2014.

President and CEO Ralph Tapscott stated, “Our quarter end September 30, 2015 earnings and resulting ROA of 0.64% is an improvement from the first two quarters of 2015 as it exceeds the year to date 2015 ROA of 0.54%. Although the results of regulatory examinations are non-public information, we are continuing to make progress in complying with the Formal Agreement between the Bank and the Office of the Comptroller of the Currency. We have been adding significantly experienced staff to our banking team and are receiving positive feedback from the majority of our customers and shareholders. Safe and sound operation of the Bank, building shareholder value, and attracting and retaining quality staff are the tenants for the Bank moving into the future.”

Third Quarter Highlights Include:

  • Return on average assets (ROAA) for the third quarter of 0.64% compares favorably to banks headquartered in Arizona under a billion in asset size, where third quarter average ROAA was 0.46%.
  • Amy Lou Blunt joined RepublicBankAz, N.A. as a Sr. Loan Officer and during the quarter has assumed the role of Executive Vice President and Chief Credit Officer.
  • Completed 2014-2015 capital raising efforts with a total of 392,934 shares sold for gross proceeds approximating $1,473,000.
  • Equity Capital has increased approximately $1,636,000 since December 31, 2014 as a result of earnings and the capital raising efforts noted above, with a resultant increase of our leverage ratio ending September at 14.53% from 12.24% as of December 31, 2014.
  • The Bank’s liquidity ratio improved to 20.40% as of September 30, 2015 from 16.38% as of September 30, 2014.
  • Nonperforming assets as a percentage of total assets fell to 2.41% as of September 30, 2015 from 3.14% as of September 30, 2014.

“Management is focused on growing the bank by providing credit and cash management services to small and 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:

September 30,
2015 (%)
Ratio to be Well
Capitalized (%)
Leverage Ratio 14.53 5.00
Tier 1 Capital to Risk Weighted Assets 18.88 6.00
Total Capital to Risk Weighted Assets 20.16 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 September 30,
For the nine months
ended September 30,

Year-End
2015 2014 2015 2014 2014
(dollars in thousands, except per share data)
Summary Income Data
Interest income$ 1,228 $ 1,309 $ 3,617 $ 3,885 $ 5,113
Interest expense 173 182 520 527 713
Net interest income 1,055 1,127 3,097 3,358 4,400
Provision for loan losses 24 31 24 107 153
Non-interest income 60 81 230 212 334
Non-interest expense 845 827 2,708 2,619 3,726
Realized gains (losses) on sales of securities - - - - -
Income (loss) before income taxes 246 350 595 844 855
Provision for income tax (benefit) 106 131 247 306 339
Net income (loss) 140 219 348 538 516
Per Share Data:
Shares outstanding end-of-period 1,702 1,309 1,702 1,309 1,352
Earnings per common share 0.08 0.17 0.20 0.41 0.38
Cash dividend declared - - - - -
Total shareholders’ equity$ 12,725 $ 10,931 $ 12,725 $ 10,931 $ 11,089
Book value per share 7.48 8.35 7.48 8.35 8.20
Selected Balance Sheet Data:
Total assets$ 89,410 $ 90,164 $ 89,410 $ 90,164 $ 87,259
Securities available-for-sale 9,885 4,667 9,885 4,667 5,596
Securities held-to-maturity - - - - -
Loans 71,797 76,375 71,797 76,375 72,399
Allowance for loan losses 2,257 2,900 2,257 2,900 2,274
Deposits 72,456 75,229 72,456 75,229 73,925
Other borrowings 3,950 3,750 3,950 3,750 1,950
Shareholders’ equity 12,725 10,931 12,725 10,931 11,089
Performance Ratios:
Return on average shareholders’ equity (annualized) 4.65 8.09 4.02 6.74 4.81
Net interest margin (%) 4.89 5.15 4.86 5.08 5.09
Average assets 86,867 89,212 86,457 89,516 89,490
Return on average assets (annualized) (%) 0.64 0.98 0.54 0.80 0.58
Shareholders’ equity to assets (%) 14.23 12.12 14.23 12.12 12.71
Efficiency ratio (%) 75.78 68.46 81.39 73.36 78.71
Asset Quality Data:
Nonperforming loans 1,719 2,401 1,719 2,401 1,599
Other real estate and repos 433 433 433 433 650
Nonperforming assets 2,152 2,834 2,152 2,834 2,249
Nonperforming assets to total assets (%) 2.41 3.14 2.41 3.14 2.58
Nonperforming loans to total loans (%) 2.39 3.14 2.39 3.14 3.11
Reserve for loan losses to total loans (%) 3.14 3.80 3.14 3.80 3.14
Reserve for loan losses to nonperforming loans (%) 131.30 120.78 131.30 120.78 142.15
Reserve for loan losses to nonperforming assets (%) 104.88 102.33 104.88 102.33 101.07
Net charge-offs for period$ 78 $ - $ 78 $ 1,368 $ 2,182
Average loans 73,668 77,691 71,773 79,486 78,136
Ratio of charge‑offs to average loans (%) 0.11 - 0.11 1.72 2.79
Regulatory Capital Ratios:
Tier 1 leverage capital ratio (%) 14.53 11.81 14.53 11.81 12.24
Tier 1 risk-based capital ratio (%) 18.88 13.75 18.88 13.75 14.90
Total risk-based capital ratio (%) 20.16 15.03 20.16 15.03 16.18


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

Source:RepublicBankAz, N.A.