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RBAZ Starts 2024 Strong; Earnings up 54% Over Prior Year Quarter

PHOENIX, April 25, 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 $713,000, or $0.40 per share, for the quarter ended March 31, 2024 as compared to a consolidated net income of $462,000, or $0.26 per share, for the quarter ended March 31, 2023.

President and CEO Brian Ruisinger stated “I am pleased with our strong Q1 earnings performance reflecting an increase over 50% from a year ago primarily due to increased net interest income. We were able to increase pricing on our earning assets while cost of funds stabilized as a result of the recent pauses by the Federal Reserve. Our liquidity position also strengthened during the quarter; a significant achievement given the tightening of liquidity experienced in the industry over the past 18 months. We saw some expected loan payoffs late in the quarter on completed construction projects and bridge loans. Once again, we ended the quarter with outstanding asset quality evidenced by the lack of past due loans in our core portfolio.”

Mr. Ruisinger continued, “Late last year, many anticipated the beginning of a rate reduction cycle by the Federal Reserve with the March meeting as the expected target date. However, inflation, unemployment and GDP all remain at elevated levels providing little to no support for the start of these reductions. Locally, real estate remains in short supply at heightened values, and, without rate relief, affordability continues to be challenging. Despite these trends, RBAZ continues to see significant loan opportunities resulting in a robust pipeline heading into the second quarter. RBAZ remains well capitalized and poised for continued growth in its mission to be the premier Arizona-based community bank, as reflected in our Bauer Five-Star bank rating.”

March 31, 2024 Company Highlights Include:

• Total loans of $199,714,000 decreased $2,115,000, or 1.0%, from December 31, 2023 as the Company had significant maturities during the quarter exceeding funding from new loan originations. While loan production during the quarter was strong, it was concentrated in construction and commercial lines of credit, which resulted in lower balances at origination but provide opportunity for significant future funding.

• Total deposits of $249,661,000 increased $21,489,000, or 9.4%, from December 31, 2023 and relate 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 borrowings of $5,936,000 at March 31, 2024 relate entirely to the Company’s subordinated debt as advances outstanding from the Federal Home Loan Bank at year-end were repaid during the quarter.

• Total interest income increased $1,167,000 to $4,208,000 for the quarter ended March 31, 2024 outpacing total interest income of $3,041,000 for the same period of the prior year equating to an increase of 38.4%.

• Cost of deposits increased to 2.36% for the quarter ended March 31, 2024 from 1.57% for the quarter ended March 31, 2023 as the result of continued upward rate pressure from the Federal Reserve keeping rates elevated through the first quarter of 2024. Additionally, the Company is continuing to see customers place funds in interest bearing products to take advantage of the high-rate environment in anticipation of potential rate decreases later in 2024 resulting in a change in deposit product mix for the Company.

• Total non-interest expense increased $260,000 to $1,943,000 for the quarter ended March 31, 2024 compared to $1,683,000 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.