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New President and Board Member
The RBAz
Board of
Directors

Cammi Bailey

Chris Beams

Chad Cline

Bette DeGraw

Regina Edwards

Ralph Tapscott

Judy Lynn

Alan Sparks

Scarlett Spring
RBAz Newsletter
Ralph E. Tapscott, President and CEO has now been on board since the end of March
2014. “Ralph was chosen from a group of approximately 10 candidates. He possesses
the skill set we deem most important to propel the Bank to the next level.” stated
Chad Cline, Chairman of the Board. Mr. Tapscott has experience with both very small
and very large corporate banks preferring the community bank model and atmosphere. He indicated his keys to success were, among other things, 1) surrounding
himself with and appreciating great talent, 2) getting involved with and giving back to the
community, and 3) putting in the time necessary to get the job done well. Mr. Tapscott is a
graduate of Texas Tech University and Pacific Coast Banking School’s graduate program. Ralph
and his wife, Koena, are happy to be back in Arizona. Please take a moment and welcome
Ralph to RepublicBankAz.
2014
August
This issue
Semi-Annual Update P. 1
Summary of RBAz Annual Meeting
of Shareholders P. 2 & 3
Scarlett Spring was officially welcomed to the Board of Directors in January of 2014.
“Scarlett was recruited for our Board because of her skills in marketing, strategic
leadership, and business prowess” commented Chad Cline. In her role as President of
VisionGate, a biomedical company pioneering early detection diagnostics specifically
focused on lung cancer, she has developed and implemented a visionary strategic
plan and raised significant capital. Scarlett has held past roles as the Chief Operating
Officer of the Greater Phoenix Economic Council and as a National Sales Director for
AstraZenica. Scarlett is a graduate of the University of Texas and received her MBA from
Pepperdine University. She was recently recognized by “AZBusiness Magazine” as one of the 50
Most Influential Women in Arizona Business.
New President & Board Member P.4
Contact RBAz
Management
 Ralph Tapscott
President & CEO
602-280-9403
 Joel Gallon, CFO
602-280-9439
 Jeff Crabb, CCO
602-280-9402
909 E. Missouri Ave
Phoenix, AZ 85014
This newsletter may
include forward-looking
statements. Forwardlooking statements are
typically identified by
words such as “believe,”
“expect,” “anticipate,”
“intend,” “estimate,”
“plan,” “goal,” “strategy,”
and similar expressions or
conditional verbs such as
“may,” “will,” “should,”
“would,” and “could.” All
forward-looking
statements are based on
information
available at this time.
(602) 277-2500
Semi-Annual Update from President Tapscott
It has been a fast and furious five months since I have been a part of the RepublicBankAz
family. A few of the items completed in the first 150 days include –
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
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Completing an Office of the Comptroller of the Currency full scope examination
Formalizing our Strategic and Capital Plans
Completing two, third-party portfolio loan reviews
Hosting the Eighth Annual Meeting of Shareholders
Joining four new civic, community and service organizations
Revamping numerous policies and procedures
Spending no less than 65 hours in meetings with the Board of Directors
To-date, I have had the pleasure of meeting roughly 40 of our nearly 300 shareholders. We
have delivered a half dozen personal presentations of the Eighth Annual Meeting of
Shareholders.
The first half of 2014 continues to shape up as forecasted. Some highlights of our
unaudited June 30, 2014 financial position is as follows:


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Year-to-date net income of $319,413
Year-to-date return on average assets of 0.72%, twice the Arizona peer average
Total assets of $89,977,575
Loan to deposit ratio, a primary liquidity measure, reduced to 105% from 115% with a
year-end goal of 100%. The target is 85% by year-end 2015.
 Tier one capital of 11.57%
We continue to execute our strategic plan with a focus on, in order of importance:
1) safety and soundness, 2) sound and consistent profitability, 3) growth, primarily in core
deposits, and 4) developing and retaining a competent and engaged staff and board. We
are forecasting 2014 full year net income of roughly $600,000 and total assets of
$93 million.
www.RepublicBankAz.com
Shareholders,
have you moved
recently?
If you have moved,
please inform
Computershare, the
Bank’s transfer
agent, by calling
(800) 962-4284.
Help stay in touch by
informing us of
changes in your
contact
information by
emailing Ann at :
[email protected]
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RBAz Newsletter
If you would like to
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contact Ann at:
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How can I best
help
RepublicBankAz
assure a
successful
future?
Please bank with your
Bank. We need local
deposits to fund
business growth in our
community and we
offer some of the best
rates in town!
Summary of the 8th Annual Meeting of Shareholders
We have some of
the best rates in
town!
8th Annual Meeting Slides
RepublicBankAz hosted the Eighth Annual Meeting of Shareholders on June 10, 2014. Shares voted,
in person or by proxy, represented 56.1% of ownership. This year, options of voting via phone or
internet were offered and shareholders commented positively on the ease of voting. Shareholders
were assured that future Annual Meetings will take place on or before the end of May and that notice
will be provided a minimum of 30 days prior to the annual meeting.
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Chairman Cline conducted the business session of the meeting. The two items requiring a vote
included election of Class III Directors, Chad Cline, Judy Lynn, and Bette DeGraw, and election of Ralph
Tapscott as a new Class II Director. Both items passed with a majority vote.
President Tapscott shared his view of changes in the banking landscape from 2007, when the Bank first
opened its doors, to-date. He reviewed a number of industry variables which are now looking more
economically favorable and how many industry professionals are forecasting favorable metrics in
future years.
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 Be enrolled and receive
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Joel Gallon, Chief Financial Officer, and Jeff Crabb, Chief Credit Officer, both gave presentations on
their respective areas of the Bank. Many of the performance graphs used in the presentation can be
found on the following page, but some of the key highlights are as follows:



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The Bank held $91 million in total assets as of March 31, 2014. Bank leadership has made a
conscious effort to slow asset growth in order to align capital and liquidity ratios.
The Bank is focused on growing core deposits and is forecasting year-end deposits of $80 million.
The Bank’s December 31, 2013 net loss of $391,897 was discussed as well as the March 31, 2014
net profit of $185,530 and the full year projected net income of approximately $600,000.
The diversification of the loan portfolio was discussed as was the reasons supporting a strategic
slowing of loan growth. Total loan balances are forecast to be nearly $77 million at year-end.
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President Tapscott addressed the status of the Bank’s efforts in complying with the Formal Agreement
issued by the Office of the Comptroller of the Currency in May of 2013. The Bank continues to strive
for compliance and leadership expects to operate under the Formal Agreement for an additional 18
months. Partial compliance is expected with each mid-year regulatory visitation. Related compliance
costs are expected to lessen with each milestone of compliance.
President Tapscott then addressed the preliminary intent of the Bank to raise additional capital.
Leadership believes it is prudent to raise an additional $3 - $5 million in capital to support the Bank’s
current risk profile and support future growth. Shareholders in attendance requested additional details
on the method of capital raise and possible pricing. President Tapscott indicated this was a preliminary
discussion, but leadership wanted to make our shareholders aware of the Bank’s intentions as early as
possible. Several shareholders indicated a preference to make the capital raise available to existing
shareholders first before extending it to new, external investors. It is too preliminary to determine a
potential offer price at this time, but information will be forthcoming.
President Tapscott elaborated on the Bank’s strategic plan. An improvement is expected in the regional economy as well as the banking industry and leadership is focused on growing key valuation variables
to improve shareholder’s current value. Additional growth capital will assist the Bank in balance sheet
and earnings growth which should support higher valuations in the next several years.
Shareholders asked several questions regarding bank operations and leadership recognized the Bank
must do a better job in communicating with shareholders. Additionally, a question was posed as to any
immediate expectation for dividends. It was pointed out that this would be counter productive to our
objective in raising additional capital at this time and that under the current Formal Agreement, such
dividends would be precluded.
SPECIAL PROMOTION
Over the Counter Bulletin Board
RepublicBankAz began trading on the Over the Counter
Bulletin Board exchange, under the ticker symbol RBAZ,
approximately 18 months ago. This provides some
added liquidity for shareholders; however, most community banks under $1 billion trade thinly. RepublicBankAz has 1,308,820 issued and outstanding shares.
These shares are owned by roughly 306 individuals or
entities. The June 30, 2014 book value per share was
$8.19. Our most recent trade was at 56% of book value.
Leadership is focused on a number of initiatives to have
the investor public value our stock more favorably.
These initiatives have been incorporated into our
strategic plan. The pricing and volume of stock
transactions over the past 12 months is illustrated in
the graph.
Open a Money Market
account by 9/30/14 to
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(602)277-2500 for
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*APY - Annual Percentage
Yield is accurate as of
7/31/14. Rates are subject
to change without notice.