RBAZ Bancorp, Inc. Announces Unaudited Financial Results For the Quarter Ending September 30, 2022

Net Interest Income Improves 15% YoY Amidst Rate Pressure

PHOENIX, Oct. 26, 2022 (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 $490,000, or $0.27 per share, for the quarter ended September 30, 2022 and $1,270,000, or $0.70 per share, for the nine months ended September 30, 2022 as compared to a consolidated net income of $524,000, or $0.29 per share, for the quarter ended September 30, 2021 and $1,545,000, or $0.86 per share, for the nine months ended September 30, 2021. Current year earnings of $0.70 per share were comprised of $0.60 per share attributable to core operations and $0.10 per share due to impacts from the Paycheck Protection Program (“PPP”). Prior year earnings of $0.86 per share were comprised of $0.50 per share attributable to core operations and $0.36 per share due to impacts from the PPP.

President and CEO Brian Ruisinger stated “Our core earnings increased 20% year-over-year as increases in core interest income notably outpaced increases in interest expense. I am pleased that our concentrated efforts to keep topline revenue growing while the PPP loans rolled off has driven this outcome. The current and projected interest rate environment is challenging for financial institutions as liabilities reprice faster than assets creating margin compression. While this will balance over time, in the near term, net interest income will be impacted.”

Mr. Ruisinger continued, “We made an exciting announcement recently that RBAZ is opening its third branch on October 31^st in Gilbert, AZ. We purchased a bank building in a great location that will allow us to expand our presence into the East Valley of Phoenix that we have targeted for some time. To support our growth and expansion, we have launched a capital raise expected to close by the end of the year. RBAZ remains poised for continued growth in its mission to be the premier Arizona-based community bank, as reflected in our Bauer Five-Star bank rating.”

September 30, 2022 Company Highlights Include:

• Total loans of $142,872,000 increased $7,476,000, or 5.5%, from December 31, 2021. This increase consisted of $12,039,000, or 8.9%, in net portfolio loan growth, offset by $4,563,000 of PPP loan forgiveness received during the year.
• Total deposits of $201,486,000 were down $3,917,000, or 1.9%, from December 31, 2021. This decrease consisted of $17,255,000 in anticipated deposit outflows relating to capital accounts for De Novo institutions that opened for business during 2022, offset by $13,338,000 in deposit growth through deepening of existing relationships and generation of new banking relationships.
• Total interest income increased $380,000 to $2,453,000 for the quarter ended September 30, 2022 outpacing total interest income of $2,073,000 for the same period of the prior year equating to an increase of 18.3%.
• Cost of funds was increased to 0.89% for the quarter ended September 30, 2022 from 0.52% for the quarter ended September 30, 2021 as the result of upward rate pressure as the Federal Reserve increased interest rates by a full 3.00% year-to-date.
• Total non-interest expense is up $211,000 to $1,330,000 for the quarter ended September 30, 2022 compared to $1,119,000 for the same period of the prior year resulting primarily from several additional full-time employees and investments made in technology and marketing in support of the Company’s growth.

The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework as follows:

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 and Scottsdale, 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. Our second location is at 6909 E. Greenway Parkway, Suite 150, Scottsdale, 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. 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 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.

Contact: Brian Ruisinger
President and Chief Executive Officer
Phone: 602.280.9404
Email: [email protected]