[July 20, 2018] |
|
Republic Bancorp, Inc. Reports a 56% Year-Over-Year Increase in Second 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/20180720005005/en/
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 centers are 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/
[ Back To TMCnet.com's Homepage ]
|