Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered
in Louisville, Kentucky, is the holding company of Republic Bank
& Trust Company (the “Bank”).
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Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased
to report second quarter net income of $15.7 million, a 56%
increase over the second quarter of 2017, resulting in Diluted
Earnings per Class A Common Share (“Diluted EPS”) of $0.74.
Year-to-date net income was $43.1 million, a $13.0 million, or 43%,
increase from the same period in 2017, resulting in return on
average assets (“ROA”) and return on average equity (“ROE”) of
1.67% and 13.22% for the first six months of 2018.
Pre-tax income increased 30% from the second quarter of 2017 to
the second quarter of 2018, as the Company’s net interest margin
remained strong. As will be the case for each quarter in 2018, a
reduction in the federal corporate tax rate from 35% to 21%,
effective January 1, 2018, positively impacted the comparability of
the Company’s performance metrics between the second quarter of
2018 and the second quarter of 2017.(1) The Company estimates that
the lower effective tax rate for 2018 benefited its second quarter
2018 and year-to-date Diluted EPS by approximately $0.10 and $0.29
per share, respectively.
Steve Trager, Chairman & CEO of Republic commented, “While
we continue to be pleased with the benefits to our bottom line of
the recent corporate tax cuts, we remain most excited about our
continued strong operating performance, as our pre-tax earnings for
the second quarter of 2018 grew significantly over the second
quarter of 2017. A solid increase in net interest income, driven by
robust net interest margin expansion over the previous year’s
second quarter, was the primary contributor to the Company’s growth
in pre-tax earnings. In addition to our sound earnings performance,
our Core Bank’s(2) balance sheet growth remained steady during the
first half of 2018 while our Core Bank’s credit quality statistics
continued to compare favorably to peer.
“In addition to the strong performance of our Core Bank, the
Republic Processing Group(3) (“RPG”) also contributed nicely to the
Company’s bottom line, as both Republic Credit Solutions (“RCS”)
and Tax Refund Solutions (“TRS”) experienced solid quarters with
meaningful increases in pre-tax earnings over the second quarter of
2017. Heading into the second half of the year, the Company is
performing well across its major business lines, providing us with
great optimism for the remainder of 2018,” concluded Steve
Trager.
The following table highlights Republic’s financial performance
for the second quarters and six months ended June 30, 2018 and
2017:
(dollars in
thousands, except per share data)
Total Company
Financial Performance Highlights Three Months Ended Jun.
30, Six Months Ended Jun.
30, 2018 2017 $ Change
% Change 2018 2017 $
Change % Change Income Before Income
Taxes* $ 19,816 $ 15,269 $ 4,547 30 % $ 54,726 $ 45,340 $ 9,386 21
% Net Income* 15,666 10,071 5,595 56 43,135 30,088 13,047 43
Diluted Earnings per Class A Common Stock 0.74 0.48 0.26 54 2.06
1.45 0.61 42 Return on Average Assets 1.23 % 0.86 % NA 43 1.67 %
1.26 % NA 33 Return on Average Equity 9.45 6.42 NA 47 13.22 9.72 NA
36
NA – Not applicable
*Segment-level data is presented at the
end of this earnings release.
Results of Operations for the Second
Quarter of 2018 Compared to the Second Quarter of
2017
Core Banking(2)
Net income from Core Banking was $11.6 million for the second
quarter of 2018, an increase of $3.7 million, or 47%, over the
second quarter of 2017. Strong growth in net interest income, which
increased $5.7 million, or 15%, over the second quarter of 2017
drove the increase in the Core Bank’s net income. In addition, the
Core Bank’s bottom line benefited by approximately $1.7 million due
to the previously mentioned lower 2018 effective tax rate.
The growth in net interest income was driven by an
18-basis-point expansion of the Core Bank’s net interest margin to
3.64% for the second quarter of 2018 and further complemented by a
$313 million, or 8%, increase in the Core Bank’s quarterly average
loans.
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:
Net Interest Income
for the (dollars in thousands)
Three Months Ended
Jun. 30, Origination Channel 2018
2017 $ Change % Change
Traditional Network $ 39,095 $ 33,047 $ 6,048 18 % Warehouse
Lending 4,164 4,435 (271 ) (6 ) Correspondent Lending 271 229 42 18
2012-FDIC Acquired Loans 85 244 (159 ) (65 )
Total Core Bank $ 43,615 $ 37,955 $ 5,660 15
Average Loan Balances Period-End Loan
Balances (dollars in thousands)
Three Months Ended Jun.
30, Jun. 30, Origination Channel
2018 2017 $ Change % Change
2018 2017 $ Change %
Change Traditional Network $ 3,347,622 $ 3,050,247 $
297,375 10 % $ 3,365,350 $ 3,131,535 $ 233,815 7 % Warehouse
Lending 541,537 489,384 52,153 11 634,841 600,630 34,211 6
Correspondent Lending 108,576 137,270 (28,694 ) (21 ) 105,170
129,792 (24,622 ) (19 ) 2012-FDIC Acquired Loans 5,986
13,659 (7,673 ) (56 ) 5,906 12,253
(6,347 ) (52 ) Total Core Bank $ 4,003,721 $ 3,690,560 $
313,161 8 $ 4,111,267 $ 3,874,210 $ 237,057 6
The primary drivers of the changes in the Core Bank’s average
loan balances and net interest income for the second quarter of
2018, as compared to the second quarter of 2017 follow:
- The Traditional Network experienced
solid growth in average loan balances of $297 million, or 10%, from
the second quarter of 2017 to the second quarter of 2018. This
growth was largely concentrated in the commercial loan sector, with
average commercial real estate balances growing $173 million, or
16%, and average commercial and industrial balances growing $73
million, or 29%.
- The difference between the Core Bank’s
net interest margin and net interest spread was 29 basis points
during the second quarter of 2018 compared to 21 basis points
during the second 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. Due to rising short-term interest rates
from June 30, 2017 to June 30, 2018, as measured by the increase of
75 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 cost of funds to its Warehouse Lending
(“Warehouse”) segment through its Funds Transfer Pricing (“FTP”)
methodology resulted in the Warehouse segment’s fluctuation in net
interest income. The Company changed its Warehouse FTP methodology
to be more consistent with that used for other Core Bank loan
products with similar pricing and duration characteristics. This
change had a $304,000 negative comparable impact on the Warehouse
segment’s net interest income for the second quarter of 2018 and a
corresponding positive comparable impact of $304,000 to the
Traditional Banking segment’s net interest income.
The Core Bank’s provision for loan and lease losses
(“Provision”) decreased to $773,000 for the second quarter of 2018
from $1.7 million for the same period in 2017, with the Provision
for both periods primarily reflecting general reserves for loan
growth. 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:
As of
and for the: Quarters Ended: Years Ended:
Jun. 30, Mar. 31, Dec. 31,
Dec. 31, Dec. 31, Core Banking
Credit Quality Ratios 2018 2018
2017 2016 2015
Nonperforming loans to total loans 0.43 % 0.37
% 0.36 % 0.42 % 0.66 %
Nonperforming assets to total loans
(including OREO)
0.43 0.38 0.36 0.46 0.70 Delinquent loans to total loans (4)
0.21 0.21 0.21 0.18 0.35 Net charge-offs to average loans —
0.06 0.04 0.05 0.05 (Quarterly rates annualized)
OREO = Other Real Estate Owned
Noninterest income for the Core Bank was $9.1 million during the
second quarter of 2018, a $562,000, or 7%, increase from the $8.5
million achieved during the second quarter of 2017. The following
primarily drove this increase:
- Service charges on deposits increased
$184,000, or 5%, driven by a 9% increase in active checking
accounts from June 30, 2017 to June 30, 2018.
- Interchange fee income increased
$336,000, or 14%, with debit card interchange fees up $211,000, or
10%, and credit card interchange fees up $125,000, or 46%.
Increases of 11% in active debit cards and 18% in active credit
cards over the previous 12 months, as well as the corresponding
usage on those cards, drove the increase in interchange fees.
Core Bank noninterest expenses increased $4.5 million, or 13%,
during the second quarter of 2018 compared to the second quarter of
2017. The following primarily drove the increase:
- Salaries and employee benefits expense
increased $2.4 million, or 14%, driven partially by an increase of
approximately 29 Core Bank full-time-equivalent employees (“FTEs”)
over the previous 12 months and an $823,000 increase in healthcare
benefits. The Company added FTEs primarily to support Core Bank
strategic initiatives.
- A 15% increase in depreciation expense
associated with facility expansions and renovations from the
previous year primarily drove an occupancy expense increase of
$531,000, or 9%.
- New and upgraded technology implemented
in the previous 12 months to support several key strategic Core
Bank initiatives caused data processing expenses to increase
$527,000, or 34%. Such initiatives include improving the Company’s
client relationship management system, its online banking
functionality, and its overall security of client information and
assets.
Republic Processing Group (3)
RPG reported net income of $4.1 million for the second quarter
of 2018 compared to $2.2 million for the same period in 2017, with
the previously mentioned lower 2018 effective tax rate contributing
approximately $537,000 to the increase. Revenue growth within the
RCS segment drove the increase in RPG’s net income. RCS
profitability remains concentrated in its line-of-credit product,
with revenues for this product increasing $2.0 million, or 37%,
from the second quarter of 2017.
In addition to the strong performance at RCS, the TRS segment
experienced an $852,000, or 74%, increase in net income for the
quarter, as the pace of client tax refunds received during the
second quarter of 2018 accelerated compared to the second quarter
of 2017. The accelerated pace of tax refunds received by TRS during
the quarter contributed to a 25% increase in net Refund Transfer
fee income as well as an $888,000 net credit to the TRS Provision,
as the estimated losses for Easy Advance (“EA”) loans at TRS
decreased from the first quarter’s estimated losses.
As of March 31, 2018, unpaid EAs were approximately 4.49% of
total EA originations for the first quarter of 2018 compared to
3.50% of total EA originations for the first quarter of 2017. As of
June 30, 2018, unpaid EAs had decreased to 3.05% of total
originations, a decline of 144 basis points from the March 31, 2018
unpaid amount. This compares to unpaid EAs of 2.40% at June 30,
2017, a decline of 110 basis points from the March 31, 2017 unpaid
amount. As of June 30, 2018 and 2017, all unpaid EAs originated
during each year had been charged-off. Each 0.10% in estimated loan
loss reserves for EAs during 2018 equates to approximately $430,000
in Provision expense, while each 0.10% during 2017 equated to
approximately $329,000.
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) and one loan production office in Brentwood
(Nashville); 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 $5.3 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, 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.
Republic Bancorp, Inc.
Financial Information Second Quarter 2018 Earnings
Release
(all amounts other than per share amounts,
number of employees, and number of banking centersare expressed in
thousands unless otherwise noted)
Balance Sheet Data Jun. 30, 2018 Dec. 31,
2017 Jun. 30, 2017 Assets: Cash and cash
equivalents $ 386,956 $ 299,351 $ 332,695 Investment securities
485,622 591,458 525,684 Loans held for sale 26,337 16,989 11,756
Loans 4,195,984 4,014,034 3,916,320 Allowance for loan and lease
losses (45,047 ) (42,769 ) (37,898 ) Loans,
net 4,150,937 3,971,265 3,878,422 Federal Home Loan Bank stock, at
cost 32,067 32,067 32,067 Premises and equipment, net 46,485 45,605
44,255 Goodwill 16,300 16,300 16,300 Other real estate owned
("OREO") — 115 300 Bank owned life insurance ("BOLI") 64,106 63,356
62,578 Other assets and accrued interest receivable 57,135
48,856 51,604 Total assets $
5,265,945 $ 5,085,362 $ 4,955,661
Liabilities and Stockholders' Equity: Deposits:
Noninterest-bearing $ 1,061,182 $ 1,022,042 $ 1,061,637
Interest-bearing 2,412,187 2,411,116
2,072,301 Total deposits 3,473,369 3,433,158
3,133,938 Securities sold under agreements to repurchase and
other short-term borrowings 175,291 204,021 113,334 Federal Home
Loan Bank advances 860,000 737,500 1,002,500 Subordinated note
41,240 41,240 41,240 Other liabilities and accrued interest payable
52,037 37,019 37,758
Total liabilities 4,601,937 4,452,938 4,328,770
Stockholders' equity 664,008 632,424
626,891 Total liabilities and stockholders' equity $
5,265,945 $ 5,085,362 $ 4,955,661
Average Balance Sheet Data
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
2018 2017 2018 2017 Assets:
Investment securities, including FHLB stock $ 506,209 $ 597,818 $
529,356 $ 592,250 Federal funds sold and other interest-earning
deposits 276,246 130,650 279,684 157,181 Loans, including loans
held for sale 4,092,388 3,730,379 4,087,247 3,740,004 Total
interest-earning assets 4,874,843 4,458,847 4,896,287 4,489,435
Total assets 5,074,781 4,668,048 5,175,927 4,757,395
Liabilities and Stockholders' Equity: Noninterest-bearing
deposits $ 1,146,403 $ 1,063,215 $ 1,232,652 $ 1,097,711
Interest-bearing deposits 2,410,330 2,224,127 2,413,220 2,218,205
Securities sold under agreements to
repurchase and other short-term borrowings
178,063 179,594 217,532 198,896 Federal Home Loan Bank advances
593,187 500,027 569,613 548,826 Subordinated note 41,240 41,240
41,240 41,240 Total interest-bearing liabilities 3,222,820
2,944,988 3,241,605 3,007,167 Stockholders' equity 663,077 627,940
652,407 619,229
Republic
Bancorp, Inc. Financial Information Second 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 Jun.
30, Six Months Ended Jun. 30, 2018 2017
2018 2017 Total interest income(5) $ 58,356 $
47,821 $ 132,189 $ 108,704 Total interest expense 7,272
4,684 13,440 9,129 Net interest income 51,084
43,137 118,749 99,575 Provision for loan and lease losses
4,932 5,061 22,187 17,412 Noninterest income: Service
charges on deposit accounts 3,574 3,390 7,129 6,637 Net refund
transfer fees 3,473 2,770 19,825 18,152 Mortgage banking income
1,316 1,445 2,336 2,605 Interchange fee income 2,891 2,547 5,558
4,873 Program fees 1,323 1,284 3,019 2,375 Increase in cash
surrender value of BOLI 379 393 750 784 Net gains on OREO 320 249
452 391 Other 1,020 849 2,772 2,033
Total noninterest income 14,296 12,927 41,841
37,850 Noninterest expense: Salaries and employee
benefits 22,766 20,015 46,600 41,226 Occupancy and equipment, net
6,391 5,903 12,612 11,870 Communication and transportation 1,241
939 2,623 2,211 Marketing and development 1,283 1,409 2,199 2,413
FDIC insurance expense 345 300 870 750 Bank franchise tax expense
860 790 3,378 3,225 Data processing 2,443 1,695 4,829 3,347
Interchange related expense 1,098 1,071 2,105 2,129 Supplies 303
261 684 788 OREO expense 16 132 61 229 Legal and professional fees
728 596 1,771 1,348 Other 3,158 2,623 5,945
5,137 Total noninterest expense 40,632 35,734
83,677 74,673 Income before income tax expense
19,816 15,269 54,726 45,340 Income tax expense(1) 4,150
5,198 11,591 15,252 Net income $ 15,666
$ 10,071 $ 43,135 $ 30,088
Republic Bancorp, Inc. Financial Information Second
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
Jun. 30, Six Months Ended Jun. 30, 2018
2017 2018 2017 Per Share Data:
Basic weighted average shares outstanding 21,187 21,151 20,939
20,918 Diluted weighted average shares outstanding 21,331 21,230
21,072 20,996 Period-end shares outstanding: Class A Common
Stock 18,677 18,618 18,677 18,618 Class B Common Stock 2,215 2,243
2,215 2,243 Book value per share(6) $ 31.78 $ 30.05 $ 31.78
$ 30.05 Tangible book value per share(6) 30.73 28.98 30.73 28.98
Earnings per share ("EPS"): Basic EPS - Class A Common Stock
$ 0.75 $ 0.48 $ 2.08 $ 1.45 Basic EPS - Class B Common Stock 0.68
0.44 1.89 1.32 Diluted EPS - Class A Common Stock 0.74 0.48 2.06
1.45 Diluted EPS - Class B Common Stock 0.68 0.44 1.88 1.32
Cash dividends declared per Common share: Class A Common Stock $
0.242 $ 0.220 $ 0.484 $ 0.429 Class B Common Stock 0.220 0.200
0.440 0.390
Performance Ratios: Return on
average assets 1.23 % 0.86 % 1.67 % 1.26 % Return on average equity
9.45 6.42 13.22 9.72 Efficiency ratio(7) 62 64 52 54 Yield on
average interest-earning assets(5) 4.79 4.29 5.40 4.84 Cost of
average interest-bearing liabilities 0.90 0.64 0.83 0.61 Cost of
average deposits(8) 0.44 0.28 0.40 0.25 Net interest spread(5) 3.89
3.65 4.57 4.23 Net interest margin - Total Company(5) 4.19 3.87
4.85 4.44 Net interest margin - Core Bank(2) 3.64 3.46 3.60 3.39
Other Information: End of period FTEs(9) -
Total Company 1,013 976 1,013 976 End of period FTEs - Core Bank
933 904 933 904 Number of full-service banking centers 45 45 45 45
Republic Bancorp, Inc.
Financial Information Second 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 Jun. 30,
Six Months Ended Jun. 30, 2018 2017
2018 2017 Credit Quality Asset Balances:
Nonperforming Assets - Total Company: Loans on
nonaccrual status $ 17,502 $ 15,467 $ 17,502 $ 15,467 Loans past
due 90-days-or-more and still on accrual 858 335
858 335 Total nonperforming loans 18,360 15,802
18,360 15,802 OREO — 300 — 300 Total
nonperforming assets $ 18,360 $ 16,102 $ 18,360 $ 16,102
Nonperforming Assets - Core Bank(2): Loans on nonaccrual
status $ 17,502 $ 15,467 $ 17,502 $ 15,467 Loans past due
90-days-or-more and still on accrual 22 33 22
33 Total nonperforming loans 17,524 15,500 17,524 15,500
OREO — 300 — 300 Total nonperforming
assets $ 17,524 $ 15,800 $ 17,524 $ 15,800
Delinquent
loans: Delinquent loans - Core Bank $ 8,703 $ 6,844 $ 8,703 $
6,844 Delinquent loans - RPG(3) 4,429 2,169
4,429 2,169 Total delinquent loans - Total Company $ 13,132
$ 9,013 $ 13,132 $ 9,013
Credit Quality Ratios -
Total Company: Nonperforming loans to total loans 0.44 %
0.40 % 0.44 % 0.40 % Nonperforming assets to total loans (including
OREO) 0.44 0.41 0.44 0.41 Nonperforming assets to total assets 0.35
0.32 0.35 0.32 Allowance for loan and lease losses to total loans
1.07 0.97 1.07 0.97 Allowance for loan and lease losses to
nonperforming loans 245 240 245 240 Delinquent loans to total
loans(4) 0.31 0.23 0.31 0.23 Net charge-offs to average loans
(annualized) 1.19 1.02 0.97 0.66
Credit Quality Ratios -
Core Bank: Nonperforming loans to total loans 0.43 %
0.40 % 0.43 % 0.40 % Nonperforming assets to total loans (including
OREO) 0.43 0.41 0.43 0.41 Nonperforming assets to total assets 0.34
0.32 0.34 0.32 Allowance for loan and lease losses to total loans
0.76 0.76 0.76 0.76 Allowance for loan and lease losses to
nonperforming loans 179 189 179 189 Delinquent loans to total loans
0.21 0.18 0.21 0.18 Net charge-offs to average loans (annualized) —
0.05 0.03 0.04
Republic Bancorp, Inc. Financial Information Second
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
Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017
Sep. 30, 2017 Jun. 30, 2017 Assets: Cash and
cash equivalents $ 386,956 $ 362,122 $ 299,351 $ 329,862 $ 332,695
Investment securities 485,622 483,573 591,458 523,896 525,684 Loans
held for sale 26,337 14,295 16,989 13,135 11,756 Loans 4,195,984
4,052,500 4,014,034 3,957,512 3,916,320 Allowance for loan and
lease losses (45,047 ) (52,341 ) (42,769 )
(40,191 ) (37,898 ) Loans, net 4,150,937 4,000,159
3,971,265 3,917,321 3,878,422 Federal Home Loan Bank stock, at cost
32,067 32,067 32,067 32,067 32,067 Premises and equipment, net
46,485 46,792 45,605 44,845 44,255 Goodwill 16,300 16,300 16,300
16,300 16,300 Other real estate owned — 160 115 167 300 Bank owned
life insurance 64,106 63,727 63,356 62,972 62,578 Other assets and
accrued interest receivable 57,135 59,139
48,856 52,609 51,604
Total assets $ 5,265,945 $ 5,078,334 $
5,085,362 $ 4,993,174 $ 4,955,661
Liabilities and Stockholders' Equity: Deposits:
Noninterest-bearing $ 1,061,182 $ 1,241,127 $ 1,022,042 $ 1,040,414
$ 1,061,637 Interest-bearing 2,412,187
2,476,496 2,411,116 2,309,315
2,072,301 Total deposits 3,473,369 3,717,623
3,433,158 3,349,729 3,133,938
Securities sold under agreements to
repurchase and other short-term borrowings
175,291 175,682 204,021 173,311 113,334 Federal Home Loan Bank
advances 860,000 440,000 737,500 757,500 1,002,500 Subordinated
note 41,240 41,240 41,240 41,240 41,240 Other liabilities and
accrued interest payable 52,037 50,535
37,019 38,107 37,758
Total liabilities 4,601,937 4,425,080 4,452,938 4,359,887 4,328,770
Stockholders' equity 664,008 653,254
632,424 633,287 626,891
Total liabilities and stockholders' equity $ 5,265,945
$ 5,078,334 $ 5,085,362 $ 4,993,174 $
4,955,661
Average Balance Sheet
Data Quarterly Comparison Jun. 30, 2018
Mar. 31, 2018 Dec. 31, 2017 Sep. 30, 2017
Jun. 30, 2017 Assets: Investment securities,
including FHLB stock $ 506,209 $ 552,760 $ 559,381 $ 552,821 $
597,818 Federal funds sold and other interest-earning deposits
276,246 283,161 229,638 208,688 130,650 Loans, including loans held
for sale 4,092,388 4,082,050 3,967,211 3,875,420 3,730,379 Total
interest-earning assets 4,874,843 4,917,971 4,756,230 4,636,929
4,458,847 Total assets 5,074,781 5,278,204 4,953,134 4,834,653
4,668,048
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits $ 1,146,403 $ 1,319,860 $ 1,045,939 $
1,052,162 $ 1,063,215 Interest-bearing deposits 2,410,330 2,416,142
2,383,196 2,249,436 2,224,127
Securities sold under agreements to
repurchase and other short-term borrowings
178,063 257,439 271,434 208,160 179,594 Federal Home Loan Bank
advances 593,187 545,778 537,326 618,750 500,027 Subordinated note
41,240 41,240 41,240 41,240 41,240 Total interest-bearing
liabilities 3,222,820 3,260,599 3,233,196 3,117,586 2,944,988
Stockholders' equity 663,077 641,624 640,686 633,874 627,940
Republic Bancorp, Inc.
Financial Information Second 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
Jun. 30, 2018 Mar. 31, 2018 Dec. 31,
2017 Sep. 30, 2017 Jun. 30, 2017 Total
interest income(5) $ 58,356 $ 73,833 $ 56,349 $ 53,725 $ 47,821
Total interest expense 7,272 6,168 5,711
5,418 4,684 Net interest income 51,084 67,665 50,638
48,307 43,137 Provision for loan and lease losses 4,932
17,255 6,071 4,221 5,061 Noninterest income: Service charges
on deposit accounts 3,574 3,555 3,325 3,395 3,390 Net refund
transfer fees 3,473 16,352 171 177 2,770 Mortgage banking income
1,316 1,020 935 1,102 1,445 Interchange fee income 2,891 2,667
2,533 2,475 2,547 Program fees 1,323 1,696 1,851 1,597 1,284
Increase in cash surrender value of BOLI 379 371 384 394 393 Losses
on available-for-sale debt securities — — (136) — — Net gains on
OREO 320 132 254 31 249 Other 1,020 1,752 873
1,203 849 Total noninterest income 14,296
27,545 10,190 10,374 12,927
Noninterest expense: Salaries and employee benefits 22,766 23,834
20,502 20,505 20,015 Occupancy and equipment, net 6,391 6,221 6,518
6,806 5,903 Communication and transportation 1,241 1,382 1,261
1,239 939 Marketing and development 1,283 916 1,098 1,677 1,409
FDIC insurance expense 345 525 328 300 300 Bank franchise tax
expense 860 2,518 652 749 790 Data processing 2,443 2,386 2,606
1,795 1,695 Interchange related expense 1,098 1,007 931 928 1,071
Supplies 303 381 565 241 261 OREO expense 16 45 104 55 132 Legal
and professional fees 728 1,043 616 446 596 Other 3,158
2,787 2,964 3,285 2,623 Total
noninterest expense 40,632 43,045 38,145
38,026 35,734 Income before income tax expense
19,816 34,910 16,612 16,434 15,269 Income tax expense(1)
4,150 7,441 11,774 5,728 5,198
Net income $ 15,666 $ 27,469 $ 4,838 $ 10,706 $ 10,071
Republic Bancorp, Inc.
Financial Information Second 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 Jun. 30, 2018 Mar. 31, 2018 Dec.
31, 2017 Sep. 30, 2017 Jun. 30, 2017 Per Share
Data: Basic weighted average shares outstanding 21,187
20,920 21,149 21,153 21,151 Diluted weighted average shares
outstanding 21,331 21,018 21,258 21,236 21,230 Period-end
shares outstanding: Class A Common Stock 18,677 18,645 18,607
18,618 18,618 Class B Common Stock 2,215 2,243 2,243 2,243 2,243
Book value per share(6) $ 31.78 $ 31.27 $ 30.33 $ 30.36 $
30.05 Tangible book value per share(6) 30.73 30.22 29.27 29.29
28.98 Earnings per share ("EPS"): Basic EPS - Class A Common
Stock $ 0.75 $ 1.32 $ 0.23 $ 0.51 $ 0.48 Basic EPS - Class B Common
Stock 0.68 1.21 0.21 0.47 0.44 Diluted EPS - Class A Common Stock
0.74 1.32 0.23 0.51 0.48 Diluted EPS - Class B Common Stock 0.68
1.20 0.21 0.47 0.44 Cash dividends declared per Common
share: Class A Common Stock $ 0.242 $ 0.242 $ 0.220 $ 0.220 $ 0.220
Class B Common Stock 0.220 0.220 0.200 0.200 0.200
Performance Ratios: Return on average assets 1.23 %
2.08 % 0.39 % 0.89 % 0.86 % Return on average equity 9.45 17.12
3.02 6.76 6.42 Efficiency ratio(7) 62 45 63 65 64 Yield on average
interest-earning assets(5) 4.79 6.01 4.74 4.63 4.29 Cost of average
interest-bearing liabilities 0.90 0.76 0.71 0.70 0.64 Cost of
average deposits(8) 0.44 0.36 0.35 0.31 0.28 Net interest spread(5)
3.89 5.25 4.03 3.93 3.65 Net interest margin - Total Company(5)
4.19 5.50 4.26 4.17 3.87 Net interest margin - Core Bank(2) 3.64
3.55 3.72 3.68 3.46
Other Information: End of
period FTEs(9) - Total Company 1,013 1,003 997 970 976 End of
period FTEs - Core Bank 933 922 915 896 904 Number of full-service
banking centers 45 45 45 45 45
Republic Bancorp, Inc. Financial Information
Second 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 Jun. 30, 2018 Mar. 31, 2018
Dec. 31, 2017 Sep. 30, 2017 Jun. 30, 2017
Credit Quality Asset Balances: Nonperforming
Assets - Total Company: Loans on nonaccrual status $ 17,502 $
14,849 $ 14,118 $ 15,475 $ 15,467 Loans past due 90-days-or-more
and still on accrual 858 1,279 956 906
335 Total nonperforming loans 18,360 16,128 15,074 16,381
15,802 OREO — 160 115 167 300
Total nonperforming assets $ 18,360 $ 16,288 $ 15,189 $ 16,548 $
16,102
Nonperforming Assets - Core Bank(2): Loans on
nonaccrual status $ 17,502 $ 14,849 $ 14,118 $ 15,475 $ 15,467
Loans past due 90-days-or-more and still on accrual 22
27 19 55 33 Total nonperforming loans
17,524 14,876 14,137 15,530 15,500 OREO — 160
115 167 300 Total nonperforming assets $ 17,524 $
15,036 $ 14,252 $ 15,697 $ 15,800
Delinquent Loans:
Delinquent loans - Core Bank $ 8,703 $ 8,303 $ 8,460 $ 7,756 $
6,844 Delinquent loans - RPG(3)(10) 4,429 17,530
5,641 4,270 2,169 Total delinquent loans -
Total Company $ 13,132 $ 25,833 $ 14,101 $ 12,026 $ 9,013
Credit Quality Ratios - Total Company:
Nonperforming loans to total loans 0.44 % 0.40 % 0.38 % 0.41 % 0.40
% Nonperforming assets to total loans (including OREO) 0.44 0.40
0.38 0.42 0.41 Nonperforming assets to total assets 0.35 0.32 0.30
0.33 0.32 Allowance for loan and lease losses to total loans 1.07
1.29 1.07 1.02 0.97 Allowance for loan and lease losses to
nonperforming loans 245 325 284 245 240 Delinquent loans to total
loans(4)(10) 0.31 0.64 0.35 0.30 0.23 Net charge-offs to average
loans (annualized) 1.19 0.75 0.35 0.20 1.02
Credit
Quality Ratios - Core Bank: Nonperforming loans to total
loans 0.43 % 0.37 % 0.36 % 0.40 % 0.40 % Nonperforming assets to
total loans (including OREO) 0.43 0.38 0.36 0.40 0.41 Nonperforming
assets to total assets 0.34 0.31 0.28 0.32 0.32 Allowance for loan
and lease losses to total loans 0.76 0.77 0.77 0.76 0.76 Allowance
for loan and lease losses to nonperforming loans 179 205 213 190
189 Delinquent loans to total loans 0.21 0.21 0.21 0.20 0.18 Net
charge-offs to average loans (annualized) — 0.06 0.06 0.03 0.05
Republic Bancorp, Inc. Financial
Information
Second 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 June 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.
Prior to the third quarter of 2017, management reported RPG as a
segment consisting of its largest division, TRS, along with its
relatively smaller divisions, Republic Payment Solutions (“RPS”),
and RCS. During the third quarter of 2017, due to RCS’s growth in
revenues relative to the total Company’s revenues, management
identified TRS and RCS as separate reportable segments under the
newly classified RPG operations. Also, as part of the updated
segmentation, management is reporting the RPS division, which
remained below thresholds to be classified a separate reportable
segment, within the newly classified TRS segment. The reportable
segments within RPG operations and divisions within those segments
operate through the Bank. The Company has reclassified all prior
periods to conform to the current presentation.
The table below provides the nature of segment operations and
the primary drivers of net revenues by reportable segment:
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 Second Quarter 2018
Earnings Release (continued)
Segment information for the quarters and
six months ended June 30, 2018 and 2017 follows:
Three Months Ended June 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 $ 39,348 $ 4,164 $ 103
$
43,615 $ 328 $ 7,141 $
7,469 $ 51,084
Provision for loan and lease losses 523 250 —
773
(888 ) 5,047
4,159 4,932 Net refund transfer
fees — — —
— 3,473 —
3,473 3,473 Mortgage
banking income — — 1,316
1,316 — —
— 1,316
Program fees — — —
— 124 1,199
1,323 1,323
Other noninterest income 7,725 11 49
7,785 80 319
399
8,184 Total noninterest income 7,725 11 1,365
9,101
3,677 1,518
5,195 14,296 Total noninterest
expense 35,415 850 1,176
37,441
2,273 918
3,191
40,632 Income before income tax expense 11,135 3,075
292
14,502 2,620 2,694
5,314 19,816 Income tax
expense 2,168 702 62
2,932
609 609
1,218
4,150 Net income $ 8,967 $ 2,373 $ 230
$
11,570 $ 2,011 $ 2,085 $
4,096 $
15,666 Period-end assets $ 4,501,539 $ 634,452 $
17,998 $
5,153,989 $ 27,192 $ 84,764 $
111,956 $
5,265,945 Net interest margin 3.71 % 3.08 % NM
3.64 % NM NM
NM 4.19 %
Net-revenue concentration* 73 % 6 % 2 %
81 % 6 % 13 %
19 % 100 %
Three Months Ended June 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 $
33,434 $ 4,435 $ 86 $
37,955 $ 157 $ 5,025 $
5,182 $
43,137 Provision for loan and lease losses 1,461 264
—
1,725 (738 ) 4,074
3,336 5,061 Net
refund transfer fees — — —
— 2,770 —
2,770
2,770 Mortgage banking income — — 1,445
1,445 — —
— 1,445 Program fees — — —
— 56 1,228
1,284 1,284 Other noninterest income 6,969
10 115
7,094 69
265
334 7,428 Total noninterest income
6,969 10 1,560
8,539 2,895 1,493
4,388 12,927
Total noninterest expense 31,185 822
984
32,991 1,971 772
2,743 35,734 Income before income tax
expense 7,757 3,359 662
11,778 1,819 1,672
3,491
15,269 Income tax expense 2,471 1,228
232
3,931 660 607
1,267 5,198 Net income $ 5,286 $ 2,131 $ 430
$ 7,847 $ 1,159 $ 1,065 $
2,224
$ 10,071 Period-end assets $ 4,283,741 $
600,060 $ 13,920
$ 4,897,721 $ 18,849 $ 39,091 $
57,940 $ 4,955,661 Net interest margin
3.44 % 3.62 % NM
3.46 % NM NM
NM 3.87
% Net-revenue concentration* 72 % 8 % 3 %
83
% 5 % 12 %
17 % 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.
Six Months Ended June 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 $
77,536 $ 7,755 $ 175
$ 85,466 $ 19,014 $ 14,269 $
33,283 $ 118,749 Provision for loan and
lease losses 1,462 271 —
1,733 12,501 7,953
20,454
22,187 Net refund transfer fees — — —
— 19,825
—
19,825 19,825 Mortgage banking income — — 2,336
2,336 — —
— 2,336 Program fees — — —
—
183 2,836
3,019 3,019 Other noninterest income
14,727 19 87
14,833 1,190
638
1,828 16,661 Total noninterest
income 14,727 19 2,423
17,169 21,198 3,474
24,672
41,841 Total noninterest expense 68,807
1,689 2,380
72,876 8,798 2,003
10,801 83,677 Income before
income tax expense 21,994 5,814 218
28,026 18,913 7,787
26,700 54,726 Income tax expense 3,940
1,329 46
5,315 4,463 1,813
6,276 11,591 Net income $ 18,054 $
4,485 $ 172
$ 22,711 $ 14,450 $ 5,974 $
20,424
$ 43,135 Period-end assets $ 4,501,539 $
634,452 $ 17,998
$ 5,153,989 $ 27,192 $ 84,764 $
111,956 $ 5,265,945 Net interest margin
3.65 % 3.13 % NM
3.60 % NM NM
NM 4.85
% Net-revenue concentration* 57 % 5 % 2 %
64
% 25 % 11 %
36
%
100 % Six Months Ended June
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 $ 66,095 $ 8,335 $ 153
$ 74,583 $ 15,119 $ 9,873 $
24,992 $
99,575 Provision for loan and lease losses 1,928 38 —
1,966 7,603 7,843
15,446 17,412 Net
refund transfer fees — — —
— 18,152 —
18,152
18,152 Mortgage banking income — — 2,605
2,605 — —
— 2,605 Program fees — — —
— 39 2,336
2,375 2,375 Other noninterest income 13,488
16 127
13,631 137 950
1,087 14,718 Total noninterest income
13,488 16 2,732
16,236 18,328 3,286
21,614
37,850 Total noninterest expense 61,273
1,599 2,198
65,070 8,040 1,563
9,603 74,673 Income before
income tax expense 16,382 6,714 687
23,783 17,804 3,753
21,557 45,340 Income tax expense 4,733
2,455 241
7,429 6,461 1,362
7,823 15,252 Net income $ 11,649 $
4,259 $ 446
$ 16,354 $ 11,343 $ 2,391 $
13,734
$ 30,088 Period-end assets $ 4,283,741 $
600,060 $ 13,920
$ 4,897,721 $ 18,849 $ 39,091 $
57,940 $ 4,955,661 Net interest margin
3.37 % 3.60 % NM
3.39 % NM NM
NM 4.44
% Net-revenue concentration* 58 % 6 % 2 %
66
% 24 % 10 %
34
%
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
Second 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 on the first and second quarter of 2018 and the
fourth quarter of 2017, the Company’s effective tax rate per
quarter was as follows: 20.9% (quarter ended June 30, 2018); 21.3%
(quarter ended March 31, 2018); 70.9% (quarter ended December 31,
2017); 34.9% (quarter ended September 30, 2017); and 34.0% (quarter
ended June 30, 2017).
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)
Republic Processing Group operations
consist of the Tax Refund Solutions and Republic Credit Solutions
segments.
(4)
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.
(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 $8.5 million and $6.4
million for the quarters ended June 30, 2018 and 2017. The amount
of loan fee income included in total interest income was $35.4
million and $27.7 million for the six months ended June 30, 2018
and 2017.
The amount of loan fee income included in
total interest income per quarter was as follows: $8.5 million
(quarter ended June 30, 2018); $26.9 million (quarter ended March
31, 2018); $9.4 million (quarter ended December 31, 2017); $9.1
million (quarter ended September 30, 2017); and $6.4 million
(quarter ended June 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 six
months ended June 30, 2018 and 2017. EAs are only offered during
the first two months of each year.
(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)
Jun. 30, 2018 Mar. 31, 2018 Dec. 31,
2017 Sep. 30, 2017 Jun.
30, 2017 Total stockholders' equity - GAAP (a) $
664,008 $ 653,254 $ 632,424 $ 633,287 $ 626,891 Less: Goodwill
16,300 16,300 16,300 16,300 16,300 Less: Mortgage servicing rights
4,914 4,925 5,044 5,128 5,159 Less: Core deposit intangible
756 807 858 911 964 Tangible
stockholders' equity - Non-GAAP (c) $ 642,038 $ 631,222 $ 610,222 $
610,948 $ 604,468 Total assets - GAAP (b) $ 5,265,945 $
5,078,334 $ 5,085,362 $ 4,993,174 $ 4,955,661 Less: Goodwill 16,300
16,300 16,300 16,300 16,300 Less: Mortgage servicing rights 4,914
4,925 5,044 5,128 5,159 Less: Core deposit intangible 756
807 858 911 964 Tangible assets -
Non-GAAP (d) $ 5,243,975 $ 5,056,302 $ 5,063,160 $ 4,970,835 $
4,933,238 Total stockholders' equity to total assets - GAAP
(a/b) 12.61 % 12.86 % 12.44 % 12.68 % 12.65 % Tangible
stockholders' equity to tangible assets - Non-GAAP (c/d) 12.24 %
12.48 % 12.05 % 12.29 % 12.25 % Number of shares outstanding
(e) 20,892 20,888 20,850 20,861
20,861 Book value per share - GAAP (a/e) $ 31.78 $ 31.27 $
30.33 $ 30.36 $ 30.05 Tangible book value per share - Non-GAAP
(c/e) 30.73 30.22 29.27 29.29 28.98
Republic Bancorp, Inc. Financial
Information
Second Quarter 2018 Earnings Release
(continued)
(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 the Company considers an EA delinquent if
it remains unpaid three weeks after the taxpayer customer’s tax
return is submitted to the applicable taxing authority. All unpaid
EAs are charged-off by the end of the second quarter of each
year.
NM – Not meaningful
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180720005005/en/
Republic Bancorp, Inc.Kevin Sipes, 502-560-8628Executive Vice
President & Chief Financial Officer
Republic Bancorp (NASDAQ:RBCAA)
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