RBAZ Delivers Strong Quarterly Earnings
12/17/23
By Christine Haugen, EVP and Chief Financial
Consolidated earnings were $748,000, or $0.41 per share, for the quarter ended September 30, 2023, and $1,771,000, or $0.98 per share, for the nine months ended September 30, 2023, as compared to consolidated earnings 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. Current year consolidated earnings of $0.98 per share were attributable entirely to core operations, whereas prior year consolidated 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. This represents an increase of 63% in earnings from core banking operations year-over-year.
The Company achieved its strongest earnings quarter of 2023 putting us back on track for achieving our annual strategic objectives. Significant loan production coupled with strong deposit generation during the quarter comprised the increase in our earning asset base resulting in a significant increase in our net interest income. While topline revenue experienced a strong growth trend from the previous quarter, overhead expenses were relatively unchanged. However, our growth has underscored a need for increased staffing resources in the fourth quarter to continue providing our brand of personalized service. The Company remains well positioned entering the final quarter of the year.
From a balance sheet perspective, total assets were $285.6 million on September 30, 2023, indicating growth of 20% since December 31, 2022. The largest component of this asset balance is the loan portfolio totaling $187.1 million as of September 30, 2023, which represents an increase of $24.1 million or 15% from year-end as the Company experienced significant, diversified loan growth through the first three quarters of 2023.
Deposits ended the period at $258.0 million, an increase of $54.7 million or 27% since year-end as the Company supplemented short-term deposits gathered in the first quarter with core deposit generation in the second and third quarters through deepening of existing relationships and cultivation of new banking relationships. While year-to-date growth has been significant, the Company does anticipate the outflow of the short-term deposits during the fourth quarter. However, core deposit generation is expected to exceed this known outflow and position the Company for positive annual deposit growth.
The Bank remains Well Capitalized with a community bank leverage ratio of 9.88% and maintains its Bauer five-star rating.