Republic Bancorp, Inc. Reports a 63% Year-Over-Year Increase in Third Quarter Net Income
Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank
& Trust Company (the “Bank”).
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181019005013/en/
Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report third quarter net income of $17.4 million, a 63%
increase over the third quarter of 2017, resulting in Diluted Earnings per Class A Common Share (“Diluted EPS”) of $0.83.
Year-to-date net income was $60.5 million, a $19.8 million, or 48%, increase from the same period in 2017, resulting in return on
average assets (“ROA”) and return on average equity (“ROE”) of 1.57% and 12.23% for the first nine months of 2018.
Pre-tax earnings for the third quarter of 2018 increased 17% over the third quarter of 2017. As with the previous two quarters
of 2018, the Company’s performance metrics for the third quarter of 2018 were positively impacted by the 2017 Tax Cuts and Jobs Act
(“TCJA”)(1), which, among other things, lowered the federal corporate tax rate from 35% to 21%, effective January 1,
2018. The Company estimates that the lower effective tax rate alone benefitted its third quarter 2018 metrics by increasing net
income approximately $1.9 million, Diluted EPS by $0.09, ROA by 0.15%, and ROE by 1.13%. In addition to the income tax benefit
received from the TCJA, the Company also recognized an additional $2.8 million in federal income tax benefits during the third
quarter of 2018 as discussed later in this release.
Steve Trager, Chairman & CEO of Republic commented, “We remain excited with the continued growth in our pre-tax earnings
this quarter and are pleased to optimize the benefits of the changing federal tax regime. While both loan and deposit origination
activity remain solid at our Core Bank, the current interest-rate environment has fueled fierce competition for many bank products
and will continue to present challenges for all players in the industry to grow in the future. Despite these challenges, we remain
optimistic about our ability to grow prudently, while managing both the credit risk in our loan portfolio and the interest rate
risk of the organization.”
The following table highlights Republic’s financial performance for the third quarters and nine months ended September 30, 2018
and 2017:
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(dollars in thousands, except per share data) |
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Total Company Financial Performance
Highlights |
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Three Months Ended Sep. 30, |
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Nine Months Ended Sep. 30, |
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2018 |
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2017 |
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$ Change |
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% Change |
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2018 |
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2017 |
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$ Change |
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% Change |
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Income Before Income Taxes* |
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$ |
19,209 |
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$ |
16,434 |
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$ |
2,775 |
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17 |
% |
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$ |
73,935 |
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$ |
61,774 |
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$ |
12,161 |
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20 |
% |
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Net Income* |
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17,411 |
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10,706 |
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6,705 |
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63 |
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60,546 |
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40,794 |
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19,752 |
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48 |
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Diluted Earnings per Class A Common Stock |
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0.83 |
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0.51 |
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0.32 |
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63 |
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2.90 |
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1.96 |
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0.94 |
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48 |
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Return on Average Assets |
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1.37 |
% |
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0.89 |
% |
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NA |
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54 |
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1.57 |
% |
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1.14 |
% |
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NA |
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38 |
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Return on Average Equity |
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10.31 |
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6.76 |
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NA |
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53 |
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12.23 |
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8.71 |
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NA |
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40 |
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NA – Not applicable
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*See segment data at the end of this earnings release
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Results of Operations for the Third Quarter of 2018 Compared to the Third Quarter of 2017
Core Bank(2) – Net income from Core Banking was $15.4 million for the third quarter of 2018, an
increase of $5.1 million, or 50%, over the third quarter of 2017. Benefitting from growth in net interest income and noninterest
income, as well as continued strong credit quality, the Core Bank’s pre-tax income for the third quarter of 2018 increased $1.6
million, or 10%, over the same period in 2017. Growth in the Core Bank’s bottom line outpaced growth in pre-tax income due to
approximately $4.0 million in total benefits recognized during the quarter resulting from the previously mentioned federal income
tax benefits.
Core Bank net interest income increased $3.0 million, or 7%, over the third quarter of 2017 driven by an increase of eight basis
points in the Core Bank’s net interest margin and further complemented by growth of $188 million, or 5%, in the Core Bank’s
quarterly loan average. The table below presents the overall change in the Core Bank’s net interest income, as well as average and
period-end loan balances by origination channel:
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Net Interest Income |
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for the |
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| (dollars in thousands) |
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Three Months Ended Sep. 30, |
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| Origination Channel |
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2018 |
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2017 |
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$ Change
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% Change |
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| Traditional Network |
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$ |
40,488 |
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$ |
35,382 |
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$ |
5,106 |
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14 |
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% |
| Warehouse Lending |
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4,414 |
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4,737 |
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(323 |
) |
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(7 |
) |
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| Correspondent Lending |
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236 |
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307 |
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(71 |
) |
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(23 |
) |
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| 2012-FDIC Acquired Loans |
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64 |
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1,809 |
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(1,745 |
) |
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(96 |
) |
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| Total Core Bank |
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$ |
45,202 |
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$ |
42,235 |
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$ |
2,967 |
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7 |
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Average Loan Balances |
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Period-End Loan Balances |
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| (dollars in thousands) |
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Three Months Ended Sep. 30, |
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Sep. 30, |
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| Origination Channel |
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2018 |
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2017 |
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$ Change
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% Change |
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2018 |
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2017 |
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$ Change
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% Change |
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| Traditional Network |
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$ |
3,366,569 |
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$ |
3,152,032 |
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$ |
214,537 |
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7 |
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% |
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$ |
3,384,623 |
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$ |
3,203,673 |
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$ |
180,950 |
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6 |
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% |
| Warehouse Lending |
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541,592 |
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535,703 |
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5,889 |
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1 |
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561,813 |
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571,160 |
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(9,347 |
) |
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(2 |
) |
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| Correspondent Lending |
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101,209 |
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127,905 |
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(26,696 |
) |
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(21 |
) |
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99,096 |
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125,643 |
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(26,547 |
) |
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(21 |
) |
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| 2012-FDIC Acquired Loans |
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5,808 |
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11,409 |
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(5,601 |
) |
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(49 |
) |
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5,697 |
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9,906 |
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(4,209 |
) |
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(42 |
) |
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| Total Core Bank |
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$ |
4,015,178 |
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$ |
3,827,049 |
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$ |
188,129 |
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5 |
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$ |
4,051,229 |
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$ |
3,910,382 |
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$ |
140,847 |
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4 |
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The primary drivers of the changes in the Core Bank’s average loan balances and net interest income for the third quarter of
2018, as compared to the third quarter of 2017, follow:
- The Traditional Network experienced solid growth in average loan balances of $215 million, or 7%,
from the third quarter of 2017 to the third quarter of 2018. This growth was largely concentrated in the commercial loan sector,
with average commercial real estate balances growing $101 million, or 9%, and average commercial and industrial balances growing
$55 million, or 20%.
- The Core Bank’s 2012 FDIC-Acquired loans contributed $1.7 million less in net interest income during
the third quarter of 2018 compared to the same period in 2017, as substantially all of the remaining accretable discount on the
acquired loans had been recognized by December 31, 2017.
- The difference between the Core Bank’s net interest margin and net interest spread was 30 basis
points during the third quarter of 2018 compared to 23 basis points during the third quarter of 2017. The differential between
the net interest margin and net interest spread represents the value of the Core Bank’s noninterest-bearing deposits and
stockholders’ equity to its net interest margin. Because of rising short-term interest rates from September 30, 2017 to September
30, 2018, as measured by the increase of 100 basis points in the Federal Funds Target Rate during this period, the contribution
of the Core Bank’s noninterest-bearing deposits and stockholders’ equity to the net interest margin increased significantly.
- An internal change in the way the Company assigns a cost of funds to Warehouse Lending (“Warehouse”)
through its Funds Transfer Pricing (“FTP”) methodology resulted in the Warehouse segment’s fluctuation in net interest income.
Effective January 1, 2018, the Company changed its Warehouse FTP methodology to be more consistent with the FTP methodology used
for other Core Bank loan products with similar pricing and duration characteristics. This change in FTP methodology had a
$272,000 negative comparable impact on the Warehouse net interest income for the third quarter of 2018 and a corresponding
positive comparable impact of $272,000 to the Traditional Network’s net interest income.
The Core Bank’s provision for loan and lease losses (“Provision”) decreased to $513,000 for the third quarter of 2018 from
$609,000 for the same period in 2017, with the Provision for both periods primarily reflecting general loss reserves for loan
growth with no significant loan-specific losses recorded during either period. Overall, the Core Bank’s credit quality metrics
remained strong from period to period, with the Core Bank’s ratios of nonperforming loans to total loans and delinquent loans to
total loans remaining near historically low levels.
The table below presents the Core Bank’s credit quality metrics:
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As of and for the: |
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Quarters Ended: |
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Years Ended: |
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Sep. 30, |
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Jun. 30, |
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Mar. 31, |
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Dec. 31, |
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Dec. 31, |
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Dec. 31, |
| Core Banking Credit Quality Ratios |
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2018 |
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2018 |
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2018 |
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2017 |
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2016 |
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2015 |
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| Nonperforming loans to total loans |
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0.42 |
% |
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0.43 |
% |
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0.37 |
% |
|
0.36 |
% |
|
0.42 |
% |
|
0.66 |
% |
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Nonperforming assets to total loans (including OREO)
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0.42 |
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0.43 |
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0.38 |
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0.36 |
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0.46 |
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0.70 |
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| Delinquent loans to total loans(3) |
|
0.29 |
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0.21 |
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0.21 |
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0.21 |
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0.18 |
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0.35 |
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| Net charge-offs to average loans |
|
0.04 |
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|
— |
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|
0.06 |
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|
0.04 |
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|
0.05 |
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|
0.05 |
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| (Quarterly rates annualized) |
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| OREO = Other Real Estate Owned |
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Noninterest income for the Core Bank was $9.4 million during the third quarter of 2018, a $1.1 million, or 13%, increase from
the $8.3 million achieved during the third quarter of 2017. The following factors primarily drove this increase:
- Mortgage banking income increased $258,000, with secondary market loan originations increasing from
$43 million during the third quarter of 2017 to $49 million during the third quarter of 2018.
- Interchange fee income increased $289,000, or 12%, driven primarily by a 10% year-over-year increase
in active debit cards.
Core Bank noninterest expenses increased $2.5 million, or 7%, during the third quarter of 2018 compared to the third quarter of
2017. The following primarily drove the increase:
- Salaries and employee benefits expense increased $2.3 million, or 13%, driven partially by annual
merit increases, partially by an increase of approximately 87 Core Bank full-time-equivalent employees (“FTEs”) over the previous
12 months, and partially by a $1.1 million increase in incentive compensation, as the Company remained on pace during the first
nine months of 2018 to achieve some of its more aggressive budgeted targets for the year, resulting in expected higher incentive
payouts.
- New and upgraded technology implemented in the previous 12 months to support several key strategic
Core Bank initiatives caused data processing expenses to increase $495,000, or 33%. Such initiatives include improving the
Company’s client relationship management system, its online banking functionality, and the overall security of client information
and assets.
- Offsetting the increases above, Occupancy expense decreased $493,000. During the third quarter of
2017, the Core Bank recorded a $907,000 impairment charge for a property the Company began marketing for sale. Partially
offsetting the impact of this prior-year non-recurring item was an 8% increase in depreciation expense associated with facility
expansions and renovations from the previous year.
Republic Processing Group(4)
Republic Processing Group (“RPG”) reported net income of $2.1 million for the third quarter of 2018 compared to $495,000 for the
same period in 2017, with the previously mentioned income tax benefits contributing approximately $712,000 to the increase. Strong
revenue growth within the Republic Credit Solutions (“RCS”) segment drove the majority of the increase in RPG’s net income for the
quarter. RCS profitability remains concentrated in its line-of-credit product, with revenues for this product increasing $1.5
million, or 23%, from the third quarter of 2017.
Partially offsetting revenue growth within the RCS segment, the Tax Refund Solutions (“TRS”) segment of RPG reported an expected
net loss of $452,000 for the third quarter of 2018 compared to a net loss of $1.1 million for the third quarter of 2017. The TRS
segment of RPG accounts for a significant portion of RPG’s annualized revenues but derives substantially all of its revenues during
the first and second quarters of the year and historically operates at a net loss during the second half of the year, as the
Company prepares for the next tax season.
Total Company Income Tax Expense
In addition to the income tax benefit received from the TCJA, Republic also recognized additional federal income tax benefits of
approximately $2.8 million during the third quarter of 2018 as part of preparing its fiscal-year 2017 federal tax return due
October 15, 2018. The Company considers approximately $2.6 million of the $2.8 million in federal income tax benefits to be
nonrecurring in nature, with a portion of the remaining benefits to be realizable in the future.
During the third quarter, the Company completed two separate studies and a tax-accounting-method change that positively impacted
income taxes for its 2017 federal tax return and amended filings dating back to fiscal year 2014. As it relates to the two separate
studies, the Company recorded benefits for both a fixed asset cost-segregation study and a Research and Development (“R&D”)
tax-credit study. The R&D tax-credit study resulted in the recognition of R&D credits dating back to 2014. Due to the
innovative nature of its business operations, the Company is optimistic that it will continue to qualify for a portion of these
federal tax credits annually into the future. The Company also recorded a nonrecurring tax benefit as a result of a
cost-segregation study that assigned revised tax lives to select fixed assets based on a detailed engineering-based analysis. The
more detailed classification of fixed assets allowed the Company a large one-time recognition of additional depreciation expense
for its 2017 federal tax return at a 35% income tax rate, as opposed to the TCJA rate of 21% it previously expected to receive for
these deductions in the future.
In addition to the two studies, the Company also filed for an automatic change in accounting method in combination with its 2017
federal tax return related to the immediate recognition of loan origination costs for income tax purposes, as opposed to the
amortization of those costs over the life of the loan. The Company estimates that the $2.8 million benefit of all three of these
distinct tax-related items also increased its third quarter 2018 Diluted EPS by $0.13, ROA by 0.22%, and ROE by 1.68%.
Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank
currently has 45 full-service banking centers and one loan-production office throughout five states: 32 banking centers in 11
Kentucky communities - Covington, Crestview Hills, Elizabethtown, Florence, Frankfort, Georgetown, Lexington, Louisville,
Owensboro, Shelbyville, and Shepherdsville; three banking centers in southern Indiana – Floyds Knobs, Jeffersonville, and New
Albany; seven banking centers in six Florida communities (Tampa MSA) – Largo, Port Richey, St. Petersburg, Seminole, Tampa, and
Temple Terrace; two banking centers in Tennessee – Cool Springs (Franklin) and Green Hills (Nashville MSA) and one loan-production
office in Brentwood (Nashville MSA); and one banking center in Norwood (Cincinnati), Ohio. The Bank offers internet banking at
www.republicbank.com. The Bank also offers separately branded, nation-wide digital banking at
www.mymemorybank.com. The Company has $5.2 billion in assets and is headquartered in Louisville, Kentucky. The Company’s
Class A Common Stock is listed under the symbol “RBCAA” on the NASDAQ Global Select Market.
Republic Bank. It’s just easier here. ®
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. The forward-looking statements in the preceding paragraphs are based on our current expectations and assumptions
regarding our business, the future impact to our balance sheet and income statement resulting from changes in interest rates, the
ability to develop products and strategies in order to meet the Company’s long-term strategic goals, the economy, the ability for
the Company to benefit from future research and development tax credits, and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult
to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution you
therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees
or assurances of future performance. Actual results could differ materially based upon factors disclosed from time to time in the
Company’s filings with the U.S. Securities and Exchange Commission, including those factors set forth as “Risk Factors” in the
Company’s Annual Report on Form 10-K for the period ended December 31, 2017. The Company undertakes no obligation to update any
forward-looking statements. These forward-looking statements are made only as of the date of this release, and the Company
undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of
this release.
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| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
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| Balance Sheet Data |
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|
Sep. 30, 2018 |
|
Dec. 31, 2017 |
|
Sep. 30, 2017 |
| Assets: |
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
365,512 |
|
|
$ |
299,351 |
|
|
$ |
329,862 |
|
| Investment securities |
|
|
513,766 |
|
|
|
591,458 |
|
|
|
523,896 |
|
| Loans held for sale |
|
|
28,899 |
|
|
|
16,989 |
|
|
|
13,135 |
|
| Loans |
|
|
4,136,195 |
|
|
|
4,014,034 |
|
|
|
3,957,512 |
|
| Allowance for loan and lease losses |
|
|
(43,824 |
) |
|
|
(42,769 |
) |
|
|
(40,191 |
) |
| Loans, net |
|
|
4,092,371 |
|
|
|
3,971,265 |
|
|
|
3,917,321 |
|
| Federal Home Loan Bank stock, at cost |
|
|
32,067 |
|
|
|
32,067 |
|
|
|
32,067 |
|
| Premises and equipment, net |
|
|
45,945 |
|
|
|
45,605 |
|
|
|
44,845 |
|
| Goodwill |
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
| Other real estate owned ("OREO") |
|
|
70 |
|
|
|
115 |
|
|
|
167 |
|
| Bank owned life insurance ("BOLI") |
|
|
64,491 |
|
|
|
63,356 |
|
|
|
62,972 |
|
| Other assets and accrued interest receivable |
|
|
62,933 |
|
|
|
48,856 |
|
|
|
52,609 |
|
| Total assets |
|
$ |
5,222,354 |
|
|
$ |
5,085,362 |
|
|
$ |
4,993,174 |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| Noninterest-bearing |
|
$ |
1,103,461 |
|
|
$ |
1,022,042 |
|
|
$ |
1,040,414 |
|
| Interest-bearing |
|
|
2,463,224 |
|
|
|
2,411,116 |
|
|
|
2,309,315 |
|
| Total deposits |
|
|
3,566,685 |
|
|
|
3,433,158 |
|
|
|
3,349,729 |
|
|
|
|
|
|
|
|
|
|
|
| Securities sold under agreements to repurchase and other short-term borrowings |
|
|
163,768 |
|
|
|
204,021 |
|
|
|
173,311 |
|
| Federal Home Loan Bank advances |
|
|
715,000 |
|
|
|
737,500 |
|
|
|
757,500 |
|
| Subordinated note |
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
| Other liabilities and accrued interest payable |
|
|
58,851 |
|
|
|
37,019 |
|
|
|
38,107 |
|
| Total liabilities |
|
|
4,545,544 |
|
|
|
4,452,938 |
|
|
|
4,359,887 |
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
676,810 |
|
|
|
632,424 |
|
|
|
633,287 |
|
| Total liabilities and stockholders' equity |
|
$ |
5,222,354 |
|
|
$ |
5,085,362 |
|
|
$ |
4,993,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Sep. 30, |
|
Nine Months Ended Sep. 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities, including FHLB stock |
|
$ |
530,468 |
|
$ |
552,821 |
|
$ |
529,731 |
|
$ |
578,963 |
| Federal funds sold and other interest-earning deposits |
|
|
265,111 |
|
|
208,688 |
|
|
274,773 |
|
|
174,538 |
| Loans, including loans held for sale |
|
|
4,112,926 |
|
|
3,875,420 |
|
|
4,095,901 |
|
|
3,785,639 |
| Total interest-earning assets |
|
|
4,908,505 |
|
|
4,636,929 |
|
|
4,900,405 |
|
|
4,539,140 |
| Total assets |
|
|
5,101,286 |
|
|
4,834,653 |
|
|
5,150,774 |
|
|
4,783,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
$ |
1,076,967 |
|
$ |
1,052,162 |
|
$ |
1,180,187 |
|
$ |
1,082,361 |
| Interest-bearing deposits |
|
|
2,476,088 |
|
|
2,249,436 |
|
|
2,434,407 |
|
|
2,228,731 |
|
Securities sold under agreements to repurchase and other short-term borrowings
|
|
|
213,195 |
|
|
208,160 |
|
|
216,070 |
|
|
202,018 |
| Federal Home Loan Bank advances |
|
|
574,130 |
|
|
618,750 |
|
|
571,136 |
|
|
572,390 |
| Subordinated note |
|
|
41,240 |
|
|
41,240 |
|
|
41,240 |
|
|
41,240 |
| Total interest-bearing liabilities |
|
|
3,304,653 |
|
|
3,117,586 |
|
|
3,262,853 |
|
|
3,044,379 |
| Stockholders' equity |
|
|
675,470 |
|
|
633,874 |
|
|
660,179 |
|
|
624,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Statement Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Sep. 30, |
|
Nine Months Ended Sep. 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest income(5) |
|
$ |
61,090 |
|
$ |
53,725 |
|
$ |
193,279 |
|
$ |
162,429 |
| Total interest expense |
|
|
8,057 |
|
|
5,418 |
|
|
21,497 |
|
|
14,547 |
| Net interest income |
|
|
53,033 |
|
|
48,307 |
|
|
171,782 |
|
|
147,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for loan and lease losses |
|
|
4,077 |
|
|
4,221 |
|
|
26,264 |
|
|
21,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
|
3,579 |
|
|
3,395 |
|
|
10,708 |
|
|
10,032 |
| Net refund transfer fees |
|
|
149 |
|
|
177 |
|
|
19,974 |
|
|
18,329 |
| Mortgage banking income |
|
|
1,360 |
|
|
1,102 |
|
|
3,696 |
|
|
3,707 |
| Interchange fee income |
|
|
2,757 |
|
|
2,475 |
|
|
8,315 |
|
|
7,348 |
| Program fees |
|
|
1,686 |
|
|
1,597 |
|
|
4,705 |
|
|
3,972 |
| Increase in cash surrender value of BOLI |
|
|
385 |
|
|
394 |
|
|
1,135 |
|
|
1,178 |
| Net gains on OREO |
|
|
248 |
|
|
31 |
|
|
700 |
|
|
422 |
| Other |
|
|
1,301 |
|
|
1,203 |
|
|
4,073 |
|
|
3,236 |
| Total noninterest income |
|
|
11,465 |
|
|
10,374 |
|
|
53,306 |
|
|
48,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
|
22,846 |
|
|
20,505 |
|
|
69,446 |
|
|
61,731 |
| Occupancy and equipment, net |
|
|
6,279 |
|
|
6,806 |
|
|
18,891 |
|
|
18,676 |
| Communication and transportation |
|
|
1,047 |
|
|
1,239 |
|
|
3,670 |
|
|
3,450 |
| Marketing and development |
|
|
1,449 |
|
|
1,677 |
|
|
3,648 |
|
|
4,090 |
| FDIC insurance expense |
|
|
360 |
|
|
300 |
|
|
1,230 |
|
|
1,050 |
| Bank franchise tax expense |
|
|
710 |
|
|
749 |
|
|
4,088 |
|
|
3,974 |
| Data processing |
|
|
2,350 |
|
|
1,795 |
|
|
7,179 |
|
|
5,142 |
| Interchange related expense |
|
|
1,138 |
|
|
928 |
|
|
3,243 |
|
|
3,057 |
| Supplies |
|
|
314 |
|
|
241 |
|
|
998 |
|
|
1,029 |
| OREO expense |
|
|
2 |
|
|
55 |
|
|
63 |
|
|
284 |
| Legal and professional fees |
|
|
935 |
|
|
446 |
|
|
2,706 |
|
|
1,794 |
| Other |
|
|
3,782 |
|
|
3,285 |
|
|
9,727 |
|
|
8,422 |
| Total noninterest expense |
|
|
41,212 |
|
|
38,026 |
|
|
124,889 |
|
|
112,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income tax expense |
|
|
19,209 |
|
|
16,434 |
|
|
73,935 |
|
|
61,774 |
| Income tax expense(1) |
|
|
1,798 |
|
|
5,728 |
|
|
13,389 |
|
|
20,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
17,411 |
|
$ |
10,706 |
|
$ |
60,546 |
|
$ |
40,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selected Data and Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Sep. 30, |
|
Nine Months Ended Sep. 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average shares outstanding |
|
|
20,962 |
|
|
|
21,153 |
|
|
|
20,950 |
|
|
|
20,921 |
|
| Diluted weighted average shares outstanding |
|
|
21,120 |
|
|
|
21,236 |
|
|
|
21,093 |
|
|
|
21,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period-end shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Common Stock |
|
|
18,682 |
|
|
|
18,618 |
|
|
|
18,682 |
|
|
|
18,618 |
|
| Class B Common Stock |
|
|
2,213 |
|
|
|
2,243 |
|
|
|
2,213 |
|
|
|
2,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share(6) |
|
$ |
32.39 |
|
|
$ |
30.36 |
|
|
$ |
32.39 |
|
|
$ |
30.36 |
|
| Tangible book value per share(6) |
|
|
31.34 |
|
|
|
29.29 |
|
|
|
31.34 |
|
|
|
29.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share ("EPS"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic EPS - Class A Common Stock |
|
$ |
0.84 |
|
|
$ |
0.51 |
|
|
$ |
2.92 |
|
|
$ |
1.97 |
|
| Basic EPS - Class B Common Stock |
|
|
0.76 |
|
|
|
0.47 |
|
|
|
2.65 |
|
|
|
1.79 |
|
| Diluted EPS - Class A Common Stock |
|
|
0.83 |
|
|
|
0.51 |
|
|
|
2.90 |
|
|
|
1.96 |
|
| Diluted EPS - Class B Common Stock |
|
|
0.76 |
|
|
|
0.47 |
|
|
|
2.64 |
|
|
|
1.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends declared per Common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Common Stock |
|
$ |
0.242 |
|
|
$ |
0.220 |
|
|
$ |
0.726 |
|
|
$ |
0.649 |
|
| Class B Common Stock |
|
|
0.220 |
|
|
|
0.200 |
|
|
|
0.660 |
|
|
|
0.590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
1.37 |
% |
|
|
0.89 |
% |
|
|
1.57 |
% |
|
|
1.14 |
% |
| Return on average equity |
|
|
10.31 |
|
|
|
6.76 |
|
|
|
12.23 |
|
|
|
8.71 |
|
| Efficiency ratio(7) |
|
|
64 |
|
|
|
65 |
|
|
|
55 |
|
|
|
57 |
|
| Yield on average interest-earning assets(5) |
|
|
4.98 |
|
|
|
4.63 |
|
|
|
5.26 |
|
|
|
4.77 |
|
| Cost of average interest-bearing liabilities |
|
|
0.98 |
|
|
|
0.70 |
|
|
|
0.88 |
|
|
|
0.64 |
|
| Cost of average deposits(8) |
|
|
0.51 |
|
|
|
0.31 |
|
|
|
0.44 |
|
|
|
0.27 |
|
| Net interest spread(5) |
|
|
4.00 |
|
|
|
3.93 |
|
|
|
4.38 |
|
|
|
4.13 |
|
| Net interest margin - Total Company(5) |
|
|
4.32 |
|
|
|
4.17 |
|
|
|
4.67 |
|
|
|
4.34 |
|
| Net interest margin - Core Bank(2) |
|
|
3.76 |
|
|
|
3.68 |
|
|
|
3.65 |
|
|
|
3.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period FTEs(9) - Total Company |
|
|
1,034 |
|
|
|
970 |
|
|
|
1,034 |
|
|
|
970 |
|
| End of period FTEs - Core Bank |
|
|
983 |
|
|
|
896 |
|
|
|
983 |
|
|
|
896 |
|
| Number of full-service banking centers |
|
|
45 |
|
|
|
45 |
|
|
|
45 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality Data and Ratios |
|
As of and for the |
|
As of and for the |
|
|
Three Months Ended Sep. 30, |
|
Nine Months Ended Sep. 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Credit Quality Asset Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming Assets - Total Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans on nonaccrual status |
|
$ |
17,015 |
|
|
$ |
15,475 |
|
|
$ |
17,015 |
|
|
$ |
15,475 |
|
| Loans past due 90-days-or-more and still on accrual |
|
|
271 |
|
|
|
906 |
|
|
|
271 |
|
|
|
906 |
|
| Total nonperforming loans |
|
|
17,286 |
|
|
|
16,381 |
|
|
|
17,286 |
|
|
|
16,381 |
|
| OREO |
|
|
70 |
|
|
|
167 |
|
|
|
70 |
|
|
|
167 |
|
| Total nonperforming assets |
|
$ |
17,356 |
|
|
$ |
16,548 |
|
|
$ |
17,356 |
|
|
$ |
16,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming Assets - Core Bank(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans on nonaccrual status |
|
$ |
17,015 |
|
|
$ |
15,475 |
|
|
$ |
17,015 |
|
|
$ |
15,475 |
|
| Loans past due 90-days-or-more and still on accrual |
|
|
22 |
|
|
|
55 |
|
|
|
22 |
|
|
|
55 |
|
| Total nonperforming loans |
|
|
17,037 |
|
|
|
15,530 |
|
|
|
17,037 |
|
|
|
15,530 |
|
| OREO |
|
|
70 |
|
|
|
167 |
|
|
|
70 |
|
|
|
167 |
|
| Total nonperforming assets |
|
$ |
17,107 |
|
|
$ |
15,697 |
|
|
$ |
17,107 |
|
|
$ |
15,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquent loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquent loans - Core Bank |
|
$ |
11,840 |
|
|
$ |
7,756 |
|
|
$ |
11,840 |
|
|
$ |
7,756 |
|
| Delinquent loans - RPG(4) |
|
|
5,986 |
|
|
|
4,270 |
|
|
|
5,986 |
|
|
|
4,270 |
|
| Total delinquent loans - Total Company |
|
$ |
17,826 |
|
|
$ |
12,026 |
|
|
$ |
17,826 |
|
|
$ |
12,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality Ratios - Total Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total loans |
|
|
0.42 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
|
|
0.41 |
% |
| Nonperforming assets to total loans (including OREO) |
|
|
0.42 |
|
|
|
0.42 |
|
|
|
0.42 |
|
|
|
0.42 |
|
| Nonperforming assets to total assets |
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.33 |
|
| Allowance for loan and lease losses to total loans |
|
|
1.06 |
|
|
|
1.02 |
|
|
|
1.06 |
|
|
|
1.02 |
|
| Allowance for loan and lease losses to nonperforming loans |
|
|
254 |
|
|
|
245 |
|
|
|
254 |
|
|
|
245 |
|
| Delinquent loans to total loans(3) |
|
|
0.43 |
|
|
|
0.30 |
|
|
|
0.43 |
|
|
|
0.30 |
|
| Net charge-offs to average loans (annualized) |
|
|
0.52 |
|
|
|
0.20 |
|
|
|
0.82 |
|
|
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality Ratios - Core Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total loans |
|
|
0.42 |
% |
|
|
0.40 |
% |
|
|
0.42 |
% |
|
|
0.40 |
% |
| Nonperforming assets to total loans (including OREO) |
|
|
0.42 |
|
|
|
0.40 |
|
|
|
0.42 |
|
|
|
0.40 |
|
| Nonperforming assets to total assets |
|
|
0.33 |
|
|
|
0.32 |
|
|
|
0.33 |
|
|
|
0.32 |
|
| Allowance for loan and lease losses to total loans |
|
|
0.78 |
|
|
|
0.76 |
|
|
|
0.78 |
|
|
|
0.76 |
|
| Allowance for loan and lease losses to nonperforming loans |
|
|
184 |
|
|
|
190 |
|
|
|
184 |
|
|
|
190 |
|
| Delinquent loans to total loans |
|
|
0.29 |
|
|
|
0.20 |
|
|
|
0.29 |
|
|
|
0.20 |
|
| Net charge-offs to average loans (annualized) |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Comparison |
|
|
Sep. 30, 2018 |
|
Jun. 30, 2018 |
|
Mar. 31, 2018 |
|
Dec. 31, 2017 |
|
Sep. 30, 2017 |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
365,512 |
|
|
$ |
386,956 |
|
|
$ |
362,122 |
|
|
$ |
299,351 |
|
|
$ |
329,862 |
|
| Investment securities |
|
|
513,766 |
|
|
|
485,622 |
|
|
|
483,573 |
|
|
|
591,458 |
|
|
|
523,896 |
|
| Loans held for sale |
|
|
28,899 |
|
|
|
26,337 |
|
|
|
14,295 |
|
|
|
16,989 |
|
|
|
13,135 |
|
| Loans |
|
|
4,136,195 |
|
|
|
4,195,984 |
|
|
|
4,052,500 |
|
|
|
4,014,034 |
|
|
|
3,957,512 |
|
| Allowance for loan and lease losses |
|
|
(43,824 |
) |
|
|
(45,047 |
) |
|
|
(52,341 |
) |
|
|
(42,769 |
) |
|
|
(40,191 |
) |
| Loans, net |
|
|
4,092,371 |
|
|
|
4,150,937 |
|
|
|
4,000,159 |
|
|
|
3,971,265 |
|
|
|
3,917,321 |
|
| Federal Home Loan Bank stock, at cost |
|
|
32,067 |
|
|
|
32,067 |
|
|
|
32,067 |
|
|
|
32,067 |
|
|
|
32,067 |
|
| Premises and equipment, net |
|
|
45,945 |
|
|
|
46,485 |
|
|
|
46,792 |
|
|
|
45,605 |
|
|
|
44,845 |
|
| Goodwill |
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
| Other real estate owned |
|
|
70 |
|
|
|
— |
|
|
|
160 |
|
|
|
115 |
|
|
|
167 |
|
| Bank owned life insurance |
|
|
64,491 |
|
|
|
64,106 |
|
|
|
63,727 |
|
|
|
63,356 |
|
|
|
62,972 |
|
| Other assets and accrued interest receivable |
|
|
62,933 |
|
|
|
57,135 |
|
|
|
59,139 |
|
|
|
48,856 |
|
|
|
52,609 |
|
| Total assets |
|
$ |
5,222,354 |
|
|
$ |
5,265,945 |
|
|
$ |
5,078,334 |
|
|
$ |
5,085,362 |
|
|
$ |
4,993,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing |
|
$ |
1,103,461 |
|
|
$ |
1,061,182 |
|
|
$ |
1,241,127 |
|
|
$ |
1,022,042 |
|
|
$ |
1,040,414 |
|
| Interest-bearing |
|
|
2,463,224 |
|
|
|
2,412,187 |
|
|
|
2,476,496 |
|
|
|
2,411,116 |
|
|
|
2,309,315 |
|
| Total deposits |
|
|
3,566,685 |
|
|
|
3,473,369 |
|
|
|
3,717,623 |
|
|
|
3,433,158 |
|
|
|
3,349,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to repurchase and other short-term borrowings
|
|
|
163,768 |
|
|
|
175,291 |
|
|
|
175,682 |
|
|
|
204,021 |
|
|
|
173,311 |
|
| Federal Home Loan Bank advances |
|
|
715,000 |
|
|
|
860,000 |
|
|
|
440,000 |
|
|
|
737,500 |
|
|
|
757,500 |
|
| Subordinated note |
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
| Other liabilities and accrued interest payable |
|
|
58,851 |
|
|
|
52,037 |
|
|
|
50,535 |
|
|
|
37,019 |
|
|
|
38,107 |
|
| Total liabilities |
|
|
4,545,544 |
|
|
|
4,601,937 |
|
|
|
4,425,080 |
|
|
|
4,452,938 |
|
|
|
4,359,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders' equity |
|
|
676,810 |
|
|
|
664,008 |
|
|
|
653,254 |
|
|
|
632,424 |
|
|
|
633,287 |
|
| Total liabilities and stockholders' equity |
|
$ |
5,222,354 |
|
|
$ |
5,265,945 |
|
|
$ |
5,078,334 |
|
|
$ |
5,085,362 |
|
|
$ |
4,993,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
Quarterly Comparison |
|
|
Sep. 30, 2018 |
|
Jun. 30, 2018 |
|
Mar. 31, 2018 |
|
Dec. 31, 2017 |
|
Sep. 30, 2017 |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities, including FHLB stock |
|
$ |
530,468 |
|
|
$ |
506,209 |
|
|
$ |
552,760 |
|
|
$ |
559,381 |
|
|
$ |
552,821 |
|
| Federal funds sold and other interest-earning deposits |
|
|
265,111 |
|
|
|
276,246 |
|
|
|
283,161 |
|
|
|
229,638 |
|
|
|
208,688 |
|
| Loans, including loans held for sale |
|
|
4,112,926 |
|
|
|
4,092,388 |
|
|
|
4,082,050 |
|
|
|
3,967,211 |
|
|
|
3,875,420 |
|
| Total interest-earning assets |
|
|
4,908,505 |
|
|
|
4,874,843 |
|
|
|
4,917,971 |
|
|
|
4,756,230 |
|
|
|
4,636,929 |
|
| Total assets |
|
|
5,101,286 |
|
|
|
5,074,781 |
|
|
|
5,278,204 |
|
|
|
4,953,134 |
|
|
|
4,834,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
$ |
1,076,967 |
|
|
$ |
1,146,403 |
|
|
$ |
1,319,860 |
|
|
$ |
1,045,939 |
|
|
$ |
1,052,162 |
|
| Interest-bearing deposits |
|
|
2,476,088 |
|
|
|
2,410,330 |
|
|
|
2,416,142 |
|
|
|
2,383,196 |
|
|
|
2,249,436 |
|
|
Securities sold under agreements to repurchase and other short-term borrowings
|
|
|
213,195 |
|
|
|
178,063 |
|
|
|
257,439 |
|
|
|
271,434 |
|
|
|
208,160 |
|
| Federal Home Loan Bank advances |
|
|
574,130 |
|
|
|
593,187 |
|
|
|
545,778 |
|
|
|
537,326 |
|
|
|
618,750 |
|
| Subordinated note |
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
|
|
41,240 |
|
| Total interest-bearing liabilities |
|
|
3,304,653 |
|
|
|
3,222,820 |
|
|
|
3,260,599 |
|
|
|
3,233,196 |
|
|
|
3,117,586 |
|
| Stockholders' equity |
|
|
675,470 |
|
|
|
663,077 |
|
|
|
641,624 |
|
|
|
640,686 |
|
|
|
633,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Statement Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Sep. 30, 2018 |
|
|
Jun. 30, 2018 |
|
|
Mar. 31, 2018 |
|
Dec. 31, 2017 |
|
Sep. 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total interest income(5) |
|
$ |
61,090 |
|
$ |
58,356 |
|
$ |
73,833 |
|
$ |
56,349 |
|
$ |
53,725 |
| Total interest expense |
|
|
8,057 |
|
|
7,272 |
|
|
6,168 |
|
|
5,711 |
|
|
5,418 |
| Net interest income |
|
|
53,033 |
|
|
51,084 |
|
|
67,665 |
|
|
50,638 |
|
|
48,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for loan and lease losses |
|
|
4,077 |
|
|
4,932 |
|
|
17,255 |
|
|
6,071 |
|
|
4,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
|
3,579 |
|
|
3,574 |
|
|
3,555 |
|
|
3,325 |
|
|
3,395 |
| Net refund transfer fees |
|
|
149 |
|
|
3,473 |
|
|
16,352 |
|
|
171 |
|
|
177 |
| Mortgage banking income |
|
|
1,360 |
|
|
1,316 |
|
|
1,020 |
|
|
935 |
|
|
1,102 |
| Interchange fee income |
|
|
2,757 |
|
|
2,891 |
|
|
2,667 |
|
|
2,533 |
|
|
2,475 |
| Program fees |
|
|
1,686 |
|
|
1,323 |
|
|
1,696 |
|
|
1,851 |
|
|
1,597 |
| Increase in cash surrender value of BOLI |
|
|
385 |
|
|
379 |
|
|
371 |
|
|
384 |
|
|
394 |
| Losses on available-for-sale debt securities |
|
|
— |
|
|
— |
|
|
— |
|
|
(136) |
|
|
— |
| Net gains on OREO |
|
|
248 |
|
|
320 |
|
|
132 |
|
|
254 |
|
|
31 |
| Other |
|
|
1,301 |
|
|
1,020 |
|
|
1,752 |
|
|
873 |
|
|
1,203 |
| Total noninterest income |
|
|
11,465 |
|
|
14,296 |
|
|
27,545 |
|
|
10,190 |
|
|
10,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
|
22,846 |
|
|
22,766 |
|
|
23,834 |
|
|
20,502 |
|
|
20,505 |
| Occupancy and equipment, net |
|
|
6,279 |
|
|
6,391 |
|
|
6,221 |
|
|
6,518 |
|
|
6,806 |
| Communication and transportation |
|
|
1,047 |
|
|
1,241 |
|
|
1,382 |
|
|
1,261 |
|
|
1,239 |
| Marketing and development |
|
|
1,449 |
|
|
1,283 |
|
|
916 |
|
|
1,098 |
|
|
1,677 |
| FDIC insurance expense |
|
|
360 |
|
|
345 |
|
|
525 |
|
|
328 |
|
|
300 |
| Bank franchise tax expense |
|
|
710 |
|
|
860 |
|
|
2,518 |
|
|
652 |
|
|
749 |
| Data processing |
|
|
2,350 |
|
|
2,443 |
|
|
2,386 |
|
|
2,606 |
|
|
1,795 |
| Interchange related expense |
|
|
1,138 |
|
|
1,098 |
|
|
1,007 |
|
|
931 |
|
|
928 |
| Supplies |
|
|
314 |
|
|
303 |
|
|
381 |
|
|
565 |
|
|
241 |
| OREO expense |
|
|
2 |
|
|
16 |
|
|
45 |
|
|
104 |
|
|
55 |
| Legal and professional fees |
|
|
935 |
|
|
728 |
|
|
1,043 |
|
|
616 |
|
|
446 |
| Other |
|
|
3,782 |
|
|
3,158 |
|
|
2,787 |
|
|
2,964 |
|
|
3,285 |
| Total noninterest expense |
|
|
41,212 |
|
|
40,632 |
|
|
43,045 |
|
|
38,145 |
|
|
38,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income tax expense |
|
|
19,209 |
|
|
19,816 |
|
|
34,910 |
|
|
16,612 |
|
|
16,434 |
| Income tax expense(1) |
|
|
1,798 |
|
|
4,150 |
|
|
7,441 |
|
|
11,774 |
|
|
5,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ |
17,411 |
|
$ |
15,666 |
|
$ |
27,469 |
|
$ |
4,838 |
|
$ |
10,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selected Data and Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months
Ended |
|
|
|
|
Sep. 30, 2018 |
|
|
|
Jun. 30, 2018 |
|
|
|
Mar. 31, 2018 |
|
|
|
Dec. 31, 2017 |
|
|
|
Sep. 30, 2017 |
|
| Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average shares outstanding |
|
|
20,962 |
|
|
|
21,187 |
|
|
|
20,920 |
|
|
|
21,149 |
|
|
|
21,153 |
|
| Diluted weighted average shares outstanding |
|
|
21,120 |
|
|
|
21,331 |
|
|
|
21,018 |
|
|
|
21,258 |
|
|
|
21,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period-end shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Common Stock |
|
|
18,682 |
|
|
|
18,677 |
|
|
|
18,645 |
|
|
|
18,607 |
|
|
|
18,618 |
|
| Class B Common Stock |
|
|
2,213 |
|
|
|
2,215 |
|
|
|
2,243 |
|
|
|
2,243 |
|
|
|
2,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share(6) |
|
$ |
32.39 |
|
|
$ |
31.78 |
|
|
$ |
31.27 |
|
|
$ |
30.33 |
|
|
$ |
30.36 |
|
| Tangible book value per share(6) |
|
|
31.34 |
|
|
|
30.73 |
|
|
|
30.22 |
|
|
|
29.27 |
|
|
|
29.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share ("EPS"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic EPS - Class A Common Stock |
|
$ |
0.84 |
|
|
$ |
0.75 |
|
|
$ |
1.32 |
|
|
$ |
0.23 |
|
|
$ |
0.51 |
|
| Basic EPS - Class B Common Stock |
|
|
0.76 |
|
|
|
0.68 |
|
|
|
1.21 |
|
|
|
0.21 |
|
|
|
0.47 |
|
| Diluted EPS - Class A Common Stock |
|
|
0.83 |
|
|
|
0.74 |
|
|
|
1.32 |
|
|
|
0.23 |
|
|
|
0.51 |
|
| Diluted EPS - Class B Common Stock |
|
|
0.76 |
|
|
|
0.68 |
|
|
|
1.20 |
|
|
|
0.21 |
|
|
|
0.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash dividends declared per Common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Common Stock |
|
$ |
0.242 |
|
|
$ |
0.242 |
|
|
$ |
0.242 |
|
|
$ |
0.220 |
|
|
$ |
0.220 |
|
| Class B Common Stock |
|
|
0.220 |
|
|
|
0.220 |
|
|
|
0.220 |
|
|
|
0.200 |
|
|
|
0.200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
1.37 |
% |
|
|
1.23 |
% |
|
|
2.08 |
% |
|
|
0.39 |
% |
|
|
0.89 |
% |
| Return on average equity |
|
|
10.31 |
|
|
|
9.45 |
|
|
|
17.12 |
|
|
|
3.02 |
|
|
|
6.76 |
|
| Efficiency ratio(7) |
|
|
64 |
|
|
|
62 |
|
|
|
45 |
|
|
|
63 |
|
|
|
65 |
|
| Yield on average interest-earning assets(5) |
|
|
4.98 |
|
|
|
4.79 |
|
|
|
6.01 |
|
|
|
4.74 |
|
|
|
4.63 |
|
| Cost of average interest-bearing liabilities |
|
|
0.98 |
|
|
|
0.90 |
|
|
|
0.76 |
|
|
|
0.71 |
|
|
|
0.70 |
|
| Cost of average deposits(8) |
|
|
0.51 |
|
|
|
0.44 |
|
|
|
0.36 |
|
|
|
0.35 |
|
|
|
0.31 |
|
| Net interest spread(5) |
|
|
4.00 |
|
|
|
3.89 |
|
|
|
5.25 |
|
|
|
4.03 |
|
|
|
3.93 |
|
| Net interest margin - Total Company(5) |
|
|
4.32 |
|
|
|
4.19 |
|
|
|
5.50 |
|
|
|
4.26 |
|
|
|
4.17 |
|
| Net interest margin - Core Bank(2) |
|
|
3.76 |
|
|
|
3.64 |
|
|
|
3.55 |
|
|
|
3.72 |
|
|
|
3.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period FTEs(9) - Total Company |
|
|
1,034 |
|
|
|
1,013 |
|
|
|
1,003 |
|
|
|
997 |
|
|
|
970 |
|
| End of period FTEs - Core Bank |
|
|
983 |
|
|
|
933 |
|
|
|
922 |
|
|
|
915 |
|
|
|
896 |
|
| Number of full-service banking centers |
|
|
45 |
|
|
|
45 |
|
|
|
45 |
|
|
|
45 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
(all amounts other than per share amounts, number of employees, and number of banking centers are
expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality Data and Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months
Ended |
|
|
Sep. 30, 2018 |
|
Jun. 30, 2018 |
|
Mar. 31, 2018 |
|
Dec. 31, 2017 |
|
Sep. 30, 2017 |
| Credit Quality Asset Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming Assets - Total Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans on nonaccrual status |
|
$ |
17,015 |
|
|
$ |
17,502 |
|
|
$ |
14,849 |
|
|
$ |
14,118 |
|
|
$ |
15,475 |
|
| Loans past due 90-days-or-more and still on accrual |
|
|
271 |
|
|
|
858 |
|
|
|
1,279 |
|
|
|
956 |
|
|
|
906 |
|
| Total nonperforming loans |
|
|
17,286 |
|
|
|
18,360 |
|
|
|
16,128 |
|
|
|
15,074 |
|
|
|
16,381 |
|
| OREO |
|
|
70 |
|
|
|
— |
|
|
|
160 |
|
|
|
115 |
|
|
|
167 |
|
| Total nonperforming assets |
|
$ |
17,356 |
|
|
$ |
18,360 |
|
|
$ |
16,288 |
|
|
$ |
15,189 |
|
|
$ |
16,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming Assets - Core Bank(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans on nonaccrual status |
|
$ |
17,015 |
|
|
$ |
17,502 |
|
|
$ |
14,849 |
|
|
$ |
14,118 |
|
|
$ |
15,475 |
|
| Loans past due 90-days-or-more and still on accrual |
|
|
22 |
|
|
|
22 |
|
|
|
27 |
|
|
|
19 |
|
|
|
55 |
|
| Total nonperforming loans |
|
|
17,037 |
|
|
|
17,524 |
|
|
|
14,876 |
|
|
|
14,137 |
|
|
|
15,530 |
|
| OREO |
|
|
70 |
|
|
|
— |
|
|
|
160 |
|
|
|
115 |
|
|
|
167 |
|
| Total nonperforming assets |
|
$ |
17,107 |
|
|
$ |
17,524 |
|
|
$ |
15,036 |
|
|
$ |
14,252 |
|
|
$ |
15,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquent Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquent loans - Core Bank |
|
$ |
11,840 |
|
|
$ |
8,703 |
|
|
$ |
8,303 |
|
|
$ |
8,460 |
|
|
$ |
7,756 |
|
| Delinquent loans - RPG(4)(10) |
|
|
5,986 |
|
|
|
4,429 |
|
|
|
17,530 |
|
|
|
5,641 |
|
|
|
4,270 |
|
| Total delinquent loans - Total Company |
|
$ |
17,826 |
|
|
$ |
13,132 |
|
|
$ |
25,833 |
|
|
$ |
14,101 |
|
|
$ |
12,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality Ratios - Total Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total loans |
|
|
0.42 |
% |
|
|
0.44 |
% |
|
|
0.40 |
% |
|
|
0.38 |
% |
|
|
0.41 |
% |
| Nonperforming assets to total loans (including OREO) |
|
|
0.42 |
|
|
|
0.44 |
|
|
|
0.40 |
|
|
|
0.38 |
|
|
|
0.42 |
|
| Nonperforming assets to total assets |
|
|
0.33 |
|
|
|
0.35 |
|
|
|
0.32 |
|
|
|
0.30 |
|
|
|
0.33 |
|
| Allowance for loan and lease losses to total loans |
|
|
1.06 |
|
|
|
1.07 |
|
|
|
1.29 |
|
|
|
1.07 |
|
|
|
1.02 |
|
| Allowance for loan and lease losses to nonperforming loans |
|
|
254 |
|
|
|
245 |
|
|
|
325 |
|
|
|
284 |
|
|
|
245 |
|
| Delinquent loans to total loans(3)(10) |
|
|
0.43 |
|
|
|
0.31 |
|
|
|
0.64 |
|
|
|
0.35 |
|
|
|
0.30 |
|
| Net charge-offs to average loans (annualized) |
|
|
0.52 |
|
|
|
1.19 |
|
|
|
0.75 |
|
|
|
0.35 |
|
|
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Quality Ratios - Core Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total loans |
|
|
0.42 |
% |
|
|
0.43 |
% |
|
|
0.37 |
% |
|
|
0.36 |
% |
|
|
0.40 |
% |
| Nonperforming assets to total loans (including OREO) |
|
|
0.42 |
|
|
|
0.43 |
|
|
|
0.38 |
|
|
|
0.36 |
|
|
|
0.40 |
|
| Nonperforming assets to total assets |
|
|
0.33 |
|
|
|
0.34 |
|
|
|
0.31 |
|
|
|
0.28 |
|
|
|
0.32 |
|
| Allowance for loan and lease losses to total loans |
|
|
0.78 |
|
|
|
0.76 |
|
|
|
0.77 |
|
|
|
0.77 |
|
|
|
0.76 |
|
| Allowance for loan and lease losses to nonperforming loans |
|
|
184 |
|
|
|
179 |
|
|
|
205 |
|
|
|
213 |
|
|
|
190 |
|
| Delinquent loans to total loans |
|
|
0.29 |
|
|
|
0.21 |
|
|
|
0.21 |
|
|
|
0.21 |
|
|
|
0.20 |
|
| Net charge-offs to average loans (annualized) |
|
|
0.04 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
|
|
|
|
|
|
|
Segment Data:
|
|
|
|
|
|
|
|
|
Reportable segments are determined by the type of products and services offered and the level of
information provided to the chief operating decision maker, who uses such information to review performance of various
components of the business (such as banking centers and business units), which are then aggregated if operating performance,
products/services, and clients are similar.
|
|
|
|
|
|
|
|
|
As of September 30, 2018, the Company was divided into five reportable segments: Traditional
Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions
(“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations,
while the last two segments collectively constitute Republic Processing Group (“RPG”) operations. The Bank’s Correspondent
Lending channel and the Company’s national branchless banking platform, MemoryBank®, are considered part of the
Traditional Banking segment.
|
|
|
|
|
|
|
|
|
The nature of segment operations and the primary drivers of net revenues by reportable segment are
provided below:
|
|
|
|
|
|
|
|
| Reportable Segment: |
|
|
Nature of Operations: |
|
|
Primary Drivers of Net Revenue: |
| |
|
|
|
|
|
|
| Core Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Traditional Banking |
|
|
Provides traditional banking products to clients in its market footprint primarily
via its network of banking centers and to clients outside of its market footprint primarily via its Digital and Correspondent
Lending delivery channels. |
|
|
Loans, investments, and deposits. |
|
|
|
|
|
|
|
| Warehouse Lending |
|
|
Provides short-term, revolving credit facilities to mortgage bankers across the
United States. |
|
|
Mortgage warehouse lines of credit. |
|
|
|
|
|
|
|
| Mortgage Banking |
|
|
Primarily originates, sells and services long-term, single family,
first lien residential real estate loans primarily to clients in the Bank's market footprint. |
|
|
Loan sales and servicing. |
|
|
|
|
|
|
|
| Republic Processing Group: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax Refund Solutions |
|
|
TRS offers tax-related credit products and facilitates the receipt and payment of
federal and state tax refund products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products
are primarily provided to clients outside of the Bank’s market footprint. |
|
|
Loans, refund transfers, and prepaid cards. |
|
|
|
|
|
|
|
| Republic Credit Solutions |
|
|
Offers consumer credit products. RCS products are primarily provided to clients
outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime
borrowers. |
|
|
Unsecured, consumer loans. |
|
|
|
|
|
|
|
|
The accounting policies used for Republic’s reportable segments are the same as those described in
the summary of significant accounting policies in the Company’s 2017 Annual Report on Form 10-K. Republic evaluates segment
performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally
allocates income taxes based on income before income tax expense unless Republic can reasonably make specific segment
allocations. The Company makes transactions among reportable segments at carrying value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
| |
|
Segment information for the quarters and nine months ended September 30, 2018 and 2017 follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2018 |
|
|
|
|
Core Banking |
|
|
Republic Processing Group
("RPG") |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Mortgage |
|
|
|
Core |
|
|
|
Refund |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
| (dollars in thousands) |
|
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
40,655 |
|
|
$ |
4,414 |
|
|
|
$ |
133 |
|
|
$ |
45,202 |
|
|
$ |
113 |
|
|
$ |
7,718 |
|
$ |
7,831 |
|
|
|
$ |
53,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for loan and lease losses |
|
|
696 |
|
|
|
(183 |
) |
|
|
|
— |
|
|
|
513 |
|
|
|
(1,028 |
) |
|
|
4,592 |
|
|
3,564 |
|
|
|
|
4,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net refund transfer fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
149 |
|
|
|
— |
|
|
149 |
|
|
|
|
149 |
|
| Mortgage banking income |
|
|
— |
|
|
|
— |
|
|
|
|
1,360 |
|
|
|
1,360 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
1,360 |
|
| Program fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
93 |
|
|
|
1,593 |
|
|
1,686 |
|
|
|
|
1,686 |
|
| Other noninterest income |
|
|
7,864 |
|
|
|
11 |
|
|
|
|
124 |
|
|
|
7,999 |
|
|
|
22 |
|
|
|
249 |
|
|
271 |
|
|
|
|
8,270 |
|
| Total noninterest income |
|
|
7,864 |
|
|
|
11 |
|
|
|
|
1,484 |
|
|
|
9,359 |
|
|
|
264 |
|
|
|
1,842 |
|
|
2,106 |
|
|
|
|
11,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
|
|
34,847 |
|
|
|
834 |
|
|
|
|
1,071 |
|
|
|
36,752 |
|
|
|
2,656 |
|
|
|
1,804 |
|
|
4,460 |
|
|
|
|
41,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income tax expense |
|
|
12,976 |
|
|
|
3,774 |
|
|
|
|
546 |
|
|
|
17,296 |
|
|
|
(1,251 |
) |
|
|
3,164 |
|
|
1,913 |
|
|
|
|
19,209 |
|
| Income tax expense (benefit) |
|
|
966 |
|
|
|
864 |
|
|
|
|
114 |
|
|
|
1,944 |
|
|
|
(799 |
) |
|
|
653 |
|
|
(146 |
) |
|
|
|
1,798 |
|
| Net income (loss) |
|
$ |
12,010 |
|
|
$ |
2,910 |
|
|
|
$ |
432 |
|
|
$ |
15,352 |
|
|
$ |
(452 |
) |
|
$ |
2,511 |
|
$ |
2,059 |
|
|
|
$ |
17,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period-end assets |
|
$ |
4,537,971 |
|
|
$ |
561,625 |
|
|
|
$ |
13,251 |
|
|
$ |
5,112,847 |
|
|
$ |
15,991 |
|
|
$ |
93,516 |
|
$ |
109,507 |
|
|
|
$ |
5,222,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
|
3.82 |
% |
|
|
3.26 |
|
% |
|
|
NM |
|
|
|
3.76 |
% |
|
|
NM |
|
|
|
NM |
|
|
NM |
|
|
|
|
4.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net-revenue concentration* |
|
|
74 |
% |
|
|
7 |
|
% |
|
|
3 |
% |
|
|
84 |
% |
|
|
1 |
|
% |
|
15 |
% |
|
16 |
|
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2017 |
|
|
|
|
Core Banking |
|
|
Republic Processing Group
("RPG") |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Mortgage |
|
|
|
Core |
|
|
|
Refund |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
| (dollars in thousands) |
|
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
37,396 |
|
|
$ |
4,737 |
|
|
|
$ |
102 |
|
|
$ |
42,235 |
|
|
$ |
60 |
|
|
$ |
6,012 |
|
$ |
6,072 |
|
|
|
$ |
48,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for loan and lease losses |
|
|
683 |
|
|
|
(74 |
) |
|
|
|
— |
|
|
|
609 |
|
|
|
(840 |
) |
|
|
4,452 |
|
|
3,612 |
|
|
|
|
4,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net refund transfer fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
177 |
|
|
|
— |
|
|
177 |
|
|
|
|
177 |
|
| Mortgage banking income |
|
|
— |
|
|
|
— |
|
|
|
|
1,102 |
|
|
|
1,102 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
|
1,102 |
|
| Program fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
63 |
|
|
|
1,534 |
|
|
1,597 |
|
|
|
|
1,597 |
|
| Other noninterest income |
|
|
7,130 |
|
|
|
11 |
|
|
|
|
65 |
|
|
|
7,206 |
|
|
|
16 |
|
|
|
276 |
|
|
292 |
|
|
|
|
7,498 |
|
| Total noninterest income |
|
|
7,130 |
|
|
|
11 |
|
|
|
|
1,167 |
|
|
|
8,308 |
|
|
|
256 |
|
|
|
1,810 |
|
|
2,066 |
|
|
|
|
10,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
|
|
32,280 |
|
|
|
848 |
|
|
|
|
1,149 |
|
|
|
34,277 |
|
|
|
2,851 |
|
|
|
898 |
|
|
3,749 |
|
|
|
|
38,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income tax expense |
|
|
11,563 |
|
|
|
3,974 |
|
|
|
|
120 |
|
|
|
15,657 |
|
|
|
(1,695 |
) |
|
|
2,472 |
|
|
777 |
|
|
|
|
16,434 |
|
| Income tax expense (benefit) |
|
|
3,951 |
|
|
|
1,454 |
|
|
|
|
41 |
|
|
|
5,446 |
|
|
|
(615 |
) |
|
|
897 |
|
|
282 |
|
|
|
|
5,728 |
|
| Net income (loss) |
|
$ |
7,612 |
|
|
$ |
2,520 |
|
|
|
$ |
79 |
|
|
$ |
10,211 |
|
|
$ |
(1,080 |
) |
|
$ |
1,575 |
|
$ |
495 |
|
|
|
$ |
10,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period-end assets |
|
$ |
4,361,591 |
|
|
$ |
570,676 |
|
|
|
$ |
9,395 |
|
|
$ |
4,941,662 |
|
|
$ |
13,090 |
|
|
$ |
38,422 |
|
$ |
51,512 |
|
|
|
$ |
4,993,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
|
3.70 |
% |
|
|
3.54 |
|
% |
|
|
NM |
|
|
|
3.68 |
% |
|
|
NM |
|
|
|
NM |
|
|
NM |
|
|
|
|
4.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net-revenue concentration* |
|
|
76 |
% |
|
|
8 |
|
% |
|
|
2 |
% |
|
|
86 |
% |
|
|
1 |
|
% |
|
13 |
% |
|
14 |
|
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Net revenue represents net interest income plus total noninterest income. Net-revenue
concentration equals segment-level net revenue divided by total Company net revenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2018 |
|
|
|
|
Core Banking |
|
|
Republic Processing Group ("RPG") |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Mortgage |
|
|
|
Core |
|
|
|
Refund |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
| (dollars in thousands) |
|
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
118,191 |
|
|
$ |
12,169 |
|
|
|
$ |
308 |
|
|
$ |
130,668 |
|
|
$ |
19,127 |
|
$ |
21,987 |
|
$ |
41,114 |
|
|
$ |
171,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for loan and lease losses |
|
|
2,158 |
|
|
|
88 |
|
|
|
|
— |
|
|
|
2,246 |
|
|
|
11,473 |
|
|
12,545 |
|
|
24,018 |
|
|
|
26,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net refund transfer fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
19,974 |
|
|
— |
|
|
19,974 |
|
|
|
19,974 |
|
| Mortgage banking income |
|
|
— |
|
|
|
— |
|
|
|
|
3,696 |
|
|
|
3,696 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,696 |
|
| Program fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
276 |
|
|
4,429 |
|
|
4,705 |
|
|
|
4,705 |
|
| Other noninterest income |
|
|
22,591 |
|
|
|
30 |
|
|
|
|
211 |
|
|
|
22,832 |
|
|
|
1,212 |
|
|
887 |
|
|
2,099 |
|
|
|
24,931 |
|
| Total noninterest income |
|
|
22,591 |
|
|
|
30 |
|
|
|
|
3,907 |
|
|
|
26,528 |
|
|
|
21,462 |
|
|
5,316 |
|
|
26,778 |
|
|
|
53,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
|
|
103,654 |
|
|
|
2,523 |
|
|
|
|
3,451 |
|
|
|
109,628 |
|
|
|
11,454 |
|
|
3,807 |
|
|
15,261 |
|
|
|
124,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income tax expense |
|
|
34,970 |
|
|
|
9,588 |
|
|
|
|
764 |
|
|
|
45,322 |
|
|
|
17,662 |
|
|
10,951 |
|
|
28,613 |
|
|
|
73,935 |
|
| Income tax expense |
|
|
4,906 |
|
|
|
2,193 |
|
|
|
|
160 |
|
|
|
7,259 |
|
|
|
3,664 |
|
|
2,466 |
|
|
6,130 |
|
|
|
13,389 |
|
| Net income |
|
$ |
30,064 |
|
|
$ |
7,395 |
|
|
|
$ |
604 |
|
|
$ |
38,063 |
|
|
$ |
13,998 |
|
$ |
8,485 |
|
$ |
22,483 |
|
|
$ |
60,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period-end assets |
|
$ |
4,537,971 |
|
|
$ |
561,625 |
|
|
|
$ |
13,251 |
|
|
$ |
5,112,847 |
|
|
$ |
15,991 |
|
$ |
93,516 |
|
$ |
109,507 |
|
|
$ |
5,222,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
|
3.71 |
% |
|
|
3.18 |
|
% |
|
|
NM |
|
|
|
3.65 |
% |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
|
4.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net-revenue concentration* |
|
|
63 |
% |
|
|
5 |
|
% |
|
|
2 |
% |
|
|
70 |
% |
|
|
18 |
% |
|
12 |
% |
|
30 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
2017 |
|
|
|
|
Core Banking |
|
|
Republic Processing Group ("RPG") |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Mortgage |
|
|
|
Core |
|
|
|
Refund |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
| (dollars in thousands) |
|
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
$ |
103,490 |
|
|
$ |
13,073 |
|
|
|
$ |
255 |
|
|
$ |
116,818 |
|
|
$ |
15,179 |
|
$ |
15,885 |
|
$ |
31,064 |
|
|
$ |
147,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for loan and lease losses |
|
|
2,611 |
|
|
|
(36 |
) |
|
|
|
— |
|
|
|
2,575 |
|
|
|
6,763 |
|
|
12,295 |
|
|
19,058 |
|
|
|
21,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net refund transfer fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
18,329 |
|
|
— |
|
|
18,329 |
|
|
|
18,329 |
|
| Mortgage banking income |
|
|
— |
|
|
|
— |
|
|
|
|
3,707 |
|
|
|
3,707 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,707 |
|
| Program fees |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
103 |
|
|
3,869 |
|
|
3,972 |
|
|
|
3,972 |
|
| Other noninterest income |
|
|
20,618 |
|
|
|
27 |
|
|
|
|
192 |
|
|
|
20,837 |
|
|
|
152 |
|
|
1,227 |
|
|
1,379 |
|
|
|
22,216 |
|
| Total noninterest income |
|
|
20,618 |
|
|
|
27 |
|
|
|
|
3,899 |
|
|
|
24,544 |
|
|
|
18,584 |
|
|
5,096 |
|
|
23,680 |
|
|
|
48,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total noninterest expense |
|
|
93,552 |
|
|
|
2,448 |
|
|
|
|
3,347 |
|
|
|
99,347 |
|
|
|
10,891 |
|
|
2,461 |
|
|
13,352 |
|
|
|
112,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income tax expense |
|
|
27,945 |
|
|
|
10,688 |
|
|
|
|
807 |
|
|
|
39,440 |
|
|
|
16,109 |
|
|
6,225 |
|
|
22,334 |
|
|
|
61,774 |
|
| Income tax expense |
|
|
8,684 |
|
|
|
3,909 |
|
|
|
|
282 |
|
|
|
12,875 |
|
|
|
5,846 |
|
|
2,259 |
|
|
8,105 |
|
|
|
20,980 |
|
| Net income |
|
$ |
19,261 |
|
|
$ |
6,779 |
|
|
|
$ |
525 |
|
|
$ |
26,565 |
|
|
$ |
10,263 |
|
$ |
3,966 |
|
$ |
14,229 |
|
|
$ |
40,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period-end assets |
|
$ |
4,361,591 |
|
|
$ |
570,676 |
|
|
|
$ |
9,395 |
|
|
$ |
4,941,662 |
|
|
$ |
13,090 |
|
$ |
38,422 |
|
$ |
51,512 |
|
|
$ |
4,993,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
|
3.48 |
% |
|
|
3.58 |
|
% |
|
|
NM |
|
|
|
3.49 |
% |
|
|
NM |
|
|
NM |
|
|
NM |
|
|
|
4.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net-revenue concentration* |
|
|
63 |
% |
|
|
7 |
|
% |
|
|
2 |
% |
|
|
72 |
% |
|
|
17 |
% |
|
11 |
% |
|
28 |
% |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Net revenue represents net interest income plus total noninterest income. Net-revenue
concentration equals segment-level net revenue divided by total Company net revenue.
|
| |
|
|
|
Republic Bancorp, Inc. Financial Information
|
| Third Quarter 2018 Earnings Release (continued) |
|
|
|
(1)
|
The 2017 Tax Cuts and Jobs Act (“TCJA”), enacted on December 22, 2017, lowered the federal
corporate tax rate from 35% to 21%, effective January 1, 2018. With the TCJA’s meaningful impact during 2018 and the fourth
quarter of 2017, the Company’s effective tax rate per quarter was as follows: 9.4% (quarter ended September 30, 2018); 20.9%
(quarter ended June 30, 2018); 21.3% (quarter ended March 31, 2018); 70.9% (quarter ended December 31, 2017); and 34.9%
(quarter ended September 30, 2017).
|
|
|
|
In addition to the TCJA lowering the Company’s 2018 federal income tax rate, Republic’s
relatively low effective tax rate during the third quarter of 2018 was driven by approximately $2.8 million in income tax
benefits recognized during the third quarter of 2018 as part of preparing the Company’s fiscal-year 2017 federal tax return
due October 15, 2018. The Company considers approximately $2.6 million of the $2.8 million in federal income tax benefits to
be nonrecurring in nature, with a portion of the remaining benefits to be realizable in the future.
|
|
|
|
A $6.3 million charge to income tax expense upon remeasurement of the Company’s deferred tax
assets and liabilities at a 21% corporate tax rate drove the relatively high effective tax rate for the fourth quarter of
2017.
|
|
|
|
(2)
|
“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending,
and Mortgage Banking segments.
|
|
|
|
(3)
|
The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total
loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past
due.
|
|
|
|
(4)
|
Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit
Solutions segments.
|
|
|
|
(5)
|
The amount of loan fee income can meaningfully impact total interest income, loan yields, net
interest margin, and net interest spread. The amount of loan fee income included in total interest income was $9.0 million
and $9.1 million for the quarters ended September 30, 2018 and 2017. The amount of loan fee income included in total interest
income was $44.4 million and $36.8 million for the nine months ended September 30, 2018 and 2017.
|
|
|
|
The amount of loan fee income included in total interest income per quarter was as follows: $9.0
million (quarter ended September 30, 2018); $8.5 million (quarter ended June 30, 2018); $26.9 million (quarter ended March
31, 2018); $9.4 million (quarter ended December 31, 2017); and $9.1 million (quarter ended September 30, 2017).
|
|
|
|
Interest income for Easy Advances (“EAs”) is composed entirely of loan fees. The loan fees
disclosed above included EA fees of $17.8 million and $14.2 million for the nine months ended September 30, 2018 and 2017.
EAs are only offered during the first two months of each year.
|
|
|
|
|
| Republic Bancorp, Inc. Financial Information |
| Third Quarter 2018 Earnings Release (continued) |
|
|
|
(6)
|
The following table provides a reconciliation of total stockholders’ equity in accordance with
U.S. Generally Accepted Accounting Principles (“GAAP”) to tangible stockholders’ equity in accordance with applicable
regulatory requirements, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure,
in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital
adequacy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Comparison |
| (dollars in thousands, except per share data) |
|
Sep. 30, 2018 |
|
Jun. 30, 2018 |
|
|
Mar. 31, 2018 |
|
|
|
Dec. 31, 2017 |
|
|
|
Sep. 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total stockholders' equity - GAAP (a) |
|
$ |
676,810 |
|
|
$ |
664,008 |
|
|
$ |
653,254 |
|
|
$ |
632,424 |
|
|
$ |
633,287 |
|
| Less: Goodwill |
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
| Less: Mortgage servicing rights |
|
|
4,925 |
|
|
|
4,914 |
|
|
|
4,925 |
|
|
|
5,044 |
|
|
|
5,128 |
|
| Less: Core deposit intangible |
|
|
705 |
|
|
|
756 |
|
|
|
807 |
|
|
|
858 |
|
|
|
911 |
|
| Tangible stockholders' equity - Non-GAAP (c) |
|
$ |
654,880 |
|
|
$ |
642,038 |
|
|
$ |
631,222 |
|
|
$ |
610,222 |
|
|
$ |
610,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets - GAAP (b) |
|
$ |
5,222,354 |
|
|
$ |
5,265,945 |
|
|
$ |
5,078,334 |
|
|
$ |
5,085,362 |
|
|
$ |
4,993,174 |
|
| Less: Goodwill |
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
|
|
16,300 |
|
| Less: Mortgage servicing rights |
|
|
4,925 |
|
|
|
4,914 |
|
|
|
4,925 |
|
|
|
5,044 |
|
|
|
5,128 |
|
| Less: Core deposit intangible |
|
|
705 |
|
|
|
756 |
|
|
|
807 |
|
|
|
858 |
|
|
|
911 |
|
| Tangible assets - Non-GAAP (d) |
|
$ |
5,200,424 |
|
|
$ |
5,243,975 |
|
|
$ |
5,056,302 |
|
|
$ |
5,063,160 |
|
|
$ |
4,970,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total stockholders' equity to total assets - GAAP (a/b) |
|
|
12.96 |
% |
|
|
12.61 |
% |
|
|
12.86 |
% |
|
|
12.44 |
% |
|
|
12.68 |
% |
| Tangible stockholders' equity to tangible assets - Non-GAAP (c/d) |
|
|
12.59 |
% |
|
|
12.24 |
% |
|
|
12.48 |
% |
|
|
12.05 |
% |
|
|
12.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares outstanding (e) |
|
|
20,895 |
|
|
|
20,892 |
|
|
|
20,888 |
|
|
|
20,850 |
|
|
|
20,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per share - GAAP (a/e) |
|
$ |
32.39 |
|
|
$ |
31.78 |
|
|
$ |
31.27 |
|
|
$ |
30.33 |
|
|
$ |
30.36 |
|
| Tangible book value per share - Non-GAAP (c/e) |
|
|
31.34 |
|
|
|
30.73 |
|
|
|
30.22 |
|
|
|
29.27 |
|
|
|
29.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(7)
|
The efficiency ratio, a non-GAAP measure, equals total noninterest expense divided by the sum of
net interest income and noninterest income. The ratio excludes net gains (losses) on sales, calls, and impairment of
investment securities, if applicable.
|
|
|
|
(8)
|
The cost of average deposits ratio equals annualized total interest expense on deposits divided
by total average interest-bearing deposits plus total average noninterest-bearing deposits.
|
|
|
|
(9)
|
FTEs – Full-time-equivalent employees.
|
|
|
|
(10)
|
Delinquent loans for the RPG segment included $13 million of EAs at March 31, 2018. EAs were only
offered during the first two months of 2018. EAs do not have a contractual due date but are eligible for delinquency
consideration three weeks after the taxpayer-customer’s tax return is submitted to the applicable tax authority. All unpaid
EAs are charged-off by the end of the second quarter of each year.
|
|
|
|
NM – Not meaningful
|
Republic Bancorp, Inc.
Kevin Sipes, 502-560-8628
Executive Vice President & Chief Financial Officer
View source version on businesswire.com: https://www.businesswire.com/news/home/20181019005013/en/