Exceptional 2021 Performance Exceeds Goals
By Christine Haugen, Executive Vice President and Chief Financial Officer
The fourth quarter of 2021 highlighted record loan growth and closed out an exceptional year for Republic Bank of Arizona. The team achieved results above and beyond strategic goals for the year including significant loan and deposit growth and an annual net income up 148% over the prior year. Management is proud of what the team accomplished and was excited to reward the team for their hard work and dedication in the form of annual incentives.
Loan and deposit growth both exceeded budget for the year. Loans were up $25.5 million or 23.2% from December 31, 2020. This increase consisted of $35.4 million or 32.2% in net portfolio loan growth, offset by $9.9 million of Paycheck Protection Program (“PPP”) loan forgiveness received during the year. Deposits increased $38.9 million or 23.4% from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020, deepened existing relationships and earned new business through increased marketing efforts and online presence.
Total assets for the year ended December 31, 2021 were $231.4 million (or $226.8 million excluding PPP loans) compared to $190.3 million (or $175.8 million excluding PPP loans) at December 31, 2020, an increase of $41.1 million or 21.5% (or $51.0 million or 29.0% excluding PPP loans).
Earnings were $447,000, or $0.25 per share, for the quarter ended December 31, 2021 compared to $460,000, or $0.25 per share, for the comparative quarter in 2020. The Bank earned an annual net income of $2,114,000, or $1.17 per share, in 2021 compared to $854,000, or $0.47 per share, in 2020.
The Bank remains Well Capitalized with a 10.55% leverage capital ratio and maintains its Bauer five-star rating.