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Mid-Year 2024; Earnings up 57% YoY

PHOENIX, July 26, 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 $893,000, or $0.50 per share, for the quarter ended June 30, 2024 and $1,607,000, or $0.90 per share, for the six months ended June 30, 2024 as compared to a consolidated net income of $561,000, or $0.31 per share, for the quarter ended June 30, 2023 and $1,023,000, or $0.57 per share, for the six months ended June 30, 2023.

President and CEO Brian Ruisinger stated, “I am pleased with our strong Q2 earnings performance reflecting an increase of 60% from a year ago primarily due to increased net interest income. Loan growth in Q2 came back to positive year-to-date overcoming loan payoffs in Q1. Additionally, we benefited from non-recurring interest income from a short-term large deposit during the quarter. Our deposit growth kept pace in Q2 allowing our liquidity to be sourced entirely from core deposits. Cost of funds remains a challenge for RBAZ and the industry as a whole, but has seen a leveling following seven consecutive meetings where the Fed held rates unchanged. Looking ahead, there is currently a high likelihood of a Fed rate decrease in the second half of 2024, which would signal the end of this historical rate cycle.”

Mr. Ruisinger continued, “On May 16^th, we announced the signing of a definitive agreement to join forces with Pima Federal Credit Union. Pima has a rich history dating back to 1951 and is headquartered in Tucson, AZ with total assets of $1.2 billion across eight branches. Pima is actively branching into Yuma, AZ and the Show Low area in Northern Arizona and has no current presence in Maricopa County. Our coming together will create a premier banking experience in Maricopa County as RBAZ’s commercial expertise will be combined with Pima’s strength in consumer products. This proposed transaction is a great outcome for our loyal shareholders and customers and is anticipated to close in Q4 following approvals from RBAZ shareholders and regulatory agencies. A special shareholder meeting is set for August 22^nd to approve this transaction.”

June 30, 2024 Company Highlights Include:

• Total loans of $203,177,000 increased $1,348,000, or 0.7%, from December 31, 2023. This increase consisted of $16,869,000 in new loan originations and advances on construction lines of credit, offset by $15,531,000 in scheduled loan maturities and participations sold. Advances and repayments on commercial lines of credit and normal payment attrition comprise the balance of the loan activity in the first half of 2024.

• Total deposits of $252,827,000 increased $24,655,000, or 10.8%, from December 31, 2023 and related entirely to core deposit generation. The increase in core deposits was the result of deepening of existing relationships and cultivation of new banking relationships. Liquidity continues to be a top priority for 2024.

• Total interest income increased $1,066,000 to $4,459,000 for the quarter ended June 30, 2024 outpacing total interest income of $3,393,000 for the same period of the prior year equating to an increase of 31.4%.

• Cost of deposits increased to 2.03% for the quarter ended June 30, 2024 from 1.75% for the quarter ended June 30, 2023. This increase of 28 basis points marks the smallest quarter-over-quarter increase since Q3 2022 when the Federal Reserve began rapidly increasing interest rates and evidences stabilization in the interest rate environment as the Federal Reserve continues to hold rates at 5.25% to 5.50%.

• Total non-interest expense increased $221,000 to $1,986,000 for the quarter ended June 30, 2024 compared to $1,765,000 for the same period of the prior year resulting primarily from several additional full-time employees and the addition of the new Scottsdale AZ branch and conversion of the existing location to an administrative office, all of which took place in Q4 2023.