PHOENIX, Jan. 30, 2025 (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 $793,000, or $0.44 per share, for the quarter ended December 31, 2024 and $3,379,000, or $1.90 per share, for the twelve months ended December 31, 2024 as compared to a consolidated net income of $688,000, or $0.38 per share, for the quarter ended December 31, 2023 and $2,460,000, or $1.36 per share, for the twelve months ended December 31, 2023.
President and CEO Brian Ruisinger stated “I am proud to report record earnings for RBAZ in our 17-year history reflecting a 37% year-over-year increase bolstered by Q4 featuring a 15% increase over the same quarter of the prior year. Solid loan growth at higher yields coupled with deposit growth concentrated in non-interest-bearing funds resulted in a 27% net interest income improvement. This was accomplished while managing expenses allowing for an increase of only 11%. However, these expenses included $365,000 of deal costs related to our prior announcement of merging with Pima Federal Credit Union.”
Mr. Ruisinger continued, “As an update to our May 16, 2024 announcement of our intent to join forces with Pima Federal Credit Union, RBAZ shareholders approved the transaction on August 22, 2024 and regulatory applications were accepted in January 2025 entering into the customary review period to obtain approval. We anticipate a closing date in the second quarter of this year, and additional information will be provided once approvals are obtained.”
December 31, 2024 Company Highlights Include:
Total loans of $222,731,000 increased $20,902,000, or 10.4%, from December 31, 2023. This increase consisted of $51,397,000 in new loan originations and advances on construction lines of credit, offset by $29,397,000 in loan maturities and participations sold. Advances and repayments on commercial lines of credit and normal payment attrition comprised the balance of the loan activity in 2024.
Total deposits of $250,201,000 increased $22,029,000, or 9.7%, from December 31, 2023 and related entirely to core deposit generation, in which 74.1% was in non-interest-bearing funds. The increase in core deposits was a mix of deepening of existing relationships and cultivation of new banking relationships.
Total interest income increased $800,000 to $4,615,000 for the quarter ended December 31, 2024 outpacing total interest income of $3,815,000 for the same period of the prior year equating to an increase of 21.0%.
Cost of deposits was 2.13% for the quarter ended December 31, 2024. After peaking at 2.36% in Q1 2024, this reduction of 23 basis points indicates a turning point in the interest rate environment within the greater Phoenix market following the Federal Reserve’s rate reductions totaling 100 basis points in the second half of 2024.
Total non-interest expense increased $239,000 to $2,097,000 for the quarter ended December 31, 2024 compared to $1,858,000 for the same period of the prior year. However, this increase includes $365,000 in non-recurring expenses associated with the pending transaction with Pima Federal Credit Union incurred in 2024. Therefore, core operating expenses decreased $126,000 between comparative quarters resulting primarily from a reduction in professional fees and marketing expenses.
The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework as follows:
December 31, 2024 (%)
Ratio to be Well Capitalized (%)
CBLR ratio
11.06
9.00
About the Company RBAZ Bancorp, Inc. was established on June 10, 2021 as a single-bank holding company for its Arizona state-chartered bank subsidiary, Republic Bank of Arizona. The Company is traded over-the-counter as RBAZ.
About the Bank Republic Bank of Arizona is a locally owned, community bank in Phoenix, Scottsdale and Gilbert, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, online and mobile banking to individuals, businesses and professionals. The Bank was established in April 2007 and is headquartered at 645 E. Missouri Avenue, Suite 108, Phoenix, AZ. Additional branches are located at 7373 N. Scottsdale Road, Suite A-195, Scottsdale, AZ and 1417 W. Elliot Road, Gilbert, AZ. The Bank is the wholly-owned subsidiary of RBAZ Bancorp, Inc. For further information, please visit our web site: www.republicbankaz.com.
Forward-Looking Statements This press release may include forward-looking statements about the Company and the Bank (collectively referred to herein as the “Company”), for which the Company 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 Company’s possible or assumed future financial condition and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. Several important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, 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 Company 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 Company assumes no obligation to update any forward-looking statement.
Summary Company Financial Information (unaudited)
For the three months ended December 31,
For the twelve months ended December 31,
2024
2023
2024
2023
(dollars in thousands, except per share data)
Summary Income Data:
Interest income
$4,615
$3,815
$17,935
$14,208
Interest expense
1,457
1,359
5,923
4,742
Net interest income
3,158
2,456
12,012
9,466
Provision for credit losses
233
-
627
-
Non-interest income
245
219
967
820
Non-interest expense
2,097
1,858
7,907
7,142
Income before provision for income tax
1,073
817
4,445
3,144
Provision for income tax
280
129
1,066
684
Net income
$793
$688
$3,379
$2,460
Per Share Data:
Shares outstanding end-of-period
1,790
1,795
1,790
1,795
Earnings per common share
$0.44
$0.38
$1.90
$1.36
Diluted earnings per common share
$0.42
$0.37
$1.77
$1.33
Book value per share
$13.81
$11.77
$13.81
$11.77
Selected Balance Sheet Data:
Total assets
$282,511
$272,044
$282,511
$272,044
Securities available-for-sale, at fair value
32,731
40,998
32,731
40,998
Securities held-to-maturity
9,855
10,648
9,855
10,648
Loans
222,731
201,829
222,731
201,829
Allowance for credit losses
2,428
2,116
2,428
2,116
Deposits
250,201
228,172
250,201
228,172
Other borrowings
5,958
20,929
5,958
20,929
Shareholders’ equity
24,723
21,128
24,723
21,128
Performance Ratios:
Return on average shareholders’ equity (annualized) (%)
12.83
13.03
13.67
11.64
Net interest margin (%)
4.58
3.81
4.32
3.68
Average assets
$288,408
$265,190
$289,763
$264,488
Return on average assets (annualized) (%)
1.10
1.04
1.17
0.93
Shareholders’ equity to assets (%)
8.75
7.77
8.75
7.77
Efficiency ratio (%)
61.62
69.46
60.92
69.43
Asset Quality Data:
Nonaccrual loans
$418
$209
$418
$209
Loan modifications to borrowers experiencing financial difficulty
$-
$-
$-
$-
Other real estate owned
$-
$-
$-
$-
Nonperforming loans
$418
$209
$418
$209
Nonperforming loans to total assets (%)
0.15
0.08
0.15
0.08
Nonperforming loans to total loans (%)
0.19
0.10
0.19
0.10
Allowance for credit losses to total loans (%)
1.09
1.05
1.09
1.05
Allowance for credit losses to nonperforming loans (%)
580.86
1,012.44
580.86
1,012.44
Net charge-offs (recoveries) for period
$26
$-
$190
($352
)
Average loans
$221,193
$192,129
$208,799
$176,146
Ratio of net charge-offs (recoveries) to average loans (%)
0.01
n/a
0.09
(0.20
)
Contact: Brian Ruisinger President and Chief Executive Officer Phone: 602.280.9404 Email: bruisinger@republicaz.com
