View All Posts

RBAZ Pleased With Results for the First Half of 2023


By Christine Haugen, EVP and Chief Financial 

Consolidated earnings were $1,023,000, or $0.57 per share, for the six months ended June 30, 2023 compared to $778,000, or $0.43 per share, for the comparative period in 2022. Current year consolidated earnings of $0.57 per share were attributable entirely to core operations, whereas prior year consolidated earnings of $0.43 per share were comprised of $0.34 per share attributable to core operations and $0.09 per share due to impacts from the Paycheck Protection Program.

This represents an increase of 68% in earnings from core banking operations year-over-year and is largely attributed to significant loan production during this period. From an earnings standpoint, the Company is well positioned entering the second half of the year. Significant loan production will continue to provide strong interest income as the Company carries a robust loan pipeline into the second half of the year. While income from earning assets is expected to remain strong as a result of this volume, the Company continues to face pressure on margins as continued rate hikes from the Federal Reserve result in deposit rates increasing faster than loan rates. With the Company’s deposit production team focused on relationship banking, the Company should be able to control the increase in its cost of funds allowing for continued strength in our overall net interest income.

From a balance sheet perspective, total assets were $266.7 million at June 30, 2023 indicating growth of 12% since December 31, 2022. The largest component of this asset balance is the loan portfolio totaling $177.0 million as of June 30, 2023, which represents an increase of $14.0 million or 9% from year-end as the Company experienced significant, diversified loan growth in the second quarter of 2023.

Deposits ended the period at $240.2 million, an increase of $36.8 million or 18% since year-end as the Company supplemented short-term deposits gathered in the first quarter with core deposit generation in the second quarter through deepening of existing relationships and cultivation of new banking relationships.

The Bank remains Well Capitalized with a community bank leverage ratio of 10.39% and maintains its Bauer five-star rating.