UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 18, 2024
REPUBLIC BANCORP, INC.
(Exact name of registrant as specified in its charter)
Kentucky |
0-24649 |
61-0862051 |
(State or other jurisdiction |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
of incorporation) |
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601 West Market Street, Louisville, Kentucky |
40202 |
(Address of principal executive offices) |
(zip code) |
Registrant’s telephone number, including area code: (502) 584-3600
NOT APPLICABLE
(Former Name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol |
Name of each exchange on which registered |
Class A Common |
RBCAA |
The Nasdaq Stock Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 18, 2024, Republic Bancorp, Inc. announced its results of operations for the quarter ended September 30, 2024. The public announcement was made by means of an earnings release, the text of which is set forth in Exhibit 99.1 hereto. A financial supplement to this earnings release is attached as Exhibit 99.2 hereto.
Item 9.01.Financial Statements and Exhibits.
(d) |
Exhibits. |
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Exhibit No. |
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Republic Bancorp, Inc. Earnings Release dated October 18, 2024. |
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104 |
Cover Page Interactive Data File (embedded within the inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Republic Bancorp, Inc. |
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(Registrant) |
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Date: October 18, 2024 |
By: |
/s/ Kevin Sipes |
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Executive Vice President, Chief Financial Officer & Chief Accounting Officer |
2
Exhibit 99.1
Republic Bancorp, Inc. Reports Third Quarter 2024 Net Income of $26.5 Million, a 23% increase over the Third Quarter of 2023
Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).
Louisville, KY – Republic Bancorp, Inc. (“Republic” or the “Company”) reported third quarter 2024 net income and Diluted Earnings per Class A Common Share (“Diluted EPS”) of $26.5 million and $1.37 per share, representing increases of 23% and 25% over the third quarter of 2023. Year-to-date net income was $82.4 million, an $11.6 million, or 16%, increase from the same period in 2023, resulting in return on average assets (“ROA”) and return on average equity (“ROE”) of 1.60% and 11.53% for the first nine months of 2024.
Logan Pichel, President & CEO of the Republic Bank & Trust Company commented, “We are proud to report another strong performance for the third quarter. Our third quarter results reflect our on-going strategic initiatives to enhance revenue, while maintaining our expense discipline. Our success is particularly evident within our Core Bank, as our net interest margin (“NIM”) showed a marked expansion over the third quarter of 2023, while our total noninterest expenses were flat from the same period. Additionally, the diversification of our business segments remained a key component to our long-term strategy and our current success. Overall, four of our five reportable business segments produced solid increases in net income for the third quarter of 2024 versus the third quarter of 2023.
The Company’s balance sheet during the quarter continued to trend in a positive direction. Deposits grew by $33 million from June 30, 2024 to the September 30, 2024, while we prudently grew the loan portfolio during the quarter by $46 million in Warehouse lending and $9 million in Republic Credit Solutions. Within our Traditional Bank, total loans declined $22 million from June 30, 2024 to $4.6 billion as of September 30, 2024 as our focus remained on pricing discipline. This on-going focus of growing deposits, combined with selective loan portfolio growth, reduced our period-end Total Company loan-to-deposit ratio to 104% as of September 30, 2024 compared to 106% as of September 30, 2023. Steadily reducing our loan-to-deposit ratio, over time, will remain a key focus as we increase our flexibility for key strategic decisions.
We believe we are well-positioned to finish the year on a high note, as our capital levels remain strong, and our credit quality remains favorable. While we are proud of our past results, we remain optimistic about our future, given the strength of our balance sheet. We are focused on our mission of creating lasting value for our clients, our shareholders, our associates, and the communities we serve.” Pichel concluded.
The following table highlights Republic’s key metrics for the three months ended September 30, 2024 and 2023. Additional financial details, including segment-level data, are provided in the financial supplement to this release. The attached digital version of this release includes the financial supplement as an appendix. The financial supplement may also be found as Exhibit 99.2 of the Company’s Form 8-K filed with the SEC on October 18, 2024.
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Total Company Financial Performance Highlights |
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Three Months Ended Sep. 30, |
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Nine Months Ended Sep. 30, |
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(dollars in thousands, except per share data) |
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2024 |
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2023 |
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$ Change |
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% Change |
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2024 |
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2023 |
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$ Change |
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% Change |
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Income Before Income Tax Expense |
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$ |
33,849 |
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$ |
27,072 |
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$ |
6,777 |
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25 |
% |
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$ |
104,653 |
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$ |
89,694 |
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$ |
14,959 |
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17 |
% |
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Net Income |
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26,543 |
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21,571 |
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4,972 |
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23 |
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82,355 |
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70,715 |
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11,640 |
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17 |
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Diluted EPS |
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1.37 |
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1.10 |
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0.27 |
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25 |
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4.24 |
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3.60 |
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0.64 |
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18 |
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Return on Average Assets ("ROA") |
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1.58 |
% |
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1.36 |
% |
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NA |
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16 |
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1.60 |
% |
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1.51 |
% |
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NA |
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6 |
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Return on Average Equity ("ROE") |
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10.88 |
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9.61 |
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NA |
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13 |
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11.53 |
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10.58 |
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NA |
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9 |
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NA – Not applicable
Results of Operations for the Third Quarter of 2024 Compared to the Third Quarter of 2023
Core Bank(1)
Net income for the Core Bank was $17.2 million for the third quarter of 2024, a $4.0 million, or 30%, increase over the $13.2 million for the third quarter of 2023. Solid increases in net interest income and noninterest income combined with flat noninterest expenses and a minimal increase in the Provision were all drivers for the growth in net income and GOP from the third quarter of 2023 to the third quarter of 2024.
Net Interest Income – Core Bank net interest income was $54.6 million for the third quarter of 2024, a $4.6 million, or 9%, increase from $50.0 million achieved during the third quarter of 2023. The rise in net interest income for the quarter was driven, in general, by period-over-period growth in average interest-earning assets and a higher net interest margin. The increase in the Core Bank’s total dollars of net interest income represented the second consecutive quarter-over-same-quarter-last-year increase following two consecutive quarterly declines in net interest income for the fourth quarter of 2023 and the first quarter of 2024.
The Core Bank’s NIM increased from 3.43% during the third quarter of 2023 to 3.53% during the third quarter of 2024. This increase represented the first rise in the Core Bank’s quarter-over-same-quarter-last-year NIM since the second quarter of 2023. The increase in the Core Bank’s NIM occurred as the rise in its interest-earning asset yields outpaced the rise in its funding costs. While the Core Bank’s cost of interest bearing liabilities did demonstrate a notable increase of 46 basis points from the third quarter of 2023 to the third quarter of 2024, the pace of the increase on a linked-quarter basis began to slow meaningfully during the second quarter of 2024, growing 13 basis points from the first quarter of 2024 to the second quarter of 2024 and only 3 basis points from the second quarter of 2024 to the third quarter of 2024.
Specific items of note impacting the Core Bank’s change in net interest income and NIM between the third quarter of 2023 and the third quarter of 2024 were as follows:
● | Average outstanding Warehouse balances increased from $423 million during the third quarter of 2023 to $528 million for the third quarter of 2024. Committed Warehouse lines declined from $1.0 billion to $902 million during these same periods, while an up-tick in demand caused average usage rates for |
2
Warehouse lines to increase from 42% during the third quarter of 2023 to 56% for the third quarter of 2024. |
● | Traditional Bank average loans grew from $4.4 billion with a weighted-average yield of 5.23% during the third quarter of 2023 to $4.6 billion with a weighted average yield of 5.63% during the third quarter of 2024. In general, the growth in average loan balances was primarily attributable to loan growth achieved during the last three months of 2023, as the spot balances for Traditional Bank loans decreased $52 million, or 1%, from December 31, 2023 to September 30, 2024. |
● | Average interest-earning cash, which is managed as a separate but complementary component of the Company’s overall investment portfolio, was $458 million with a weighted-average yield of 5.36% during the third quarter of 2024 compared to $178 million with a weighted-average yield of 5.38% for the third quarter of 2023. |
The increase in average interest-earning cash was a strategic decision primarily resulting from the inverted yield curve as the yield for overnight cash remained a more appealing option throughout the first nine months of 2024 than longer-term investment alternatives. Additionally, management also chose to maintain supplemental on-balance sheet liquidity during the first nine months of the year, above required minimums, in response to the uncertainty of the economic environment.
● | Average investments were $593 million with a weighted-average yield of 3.20% during the third quarter of 2024 compared to $771 million with a weighted-average yield of 2.75% for the third quarter of 2023. As noted above, the more attractive yield for cash generally led to a decrease in the Core Bank’s average investments throughout 2024. Overall, the Core Bank continued to maintain an investment portfolio with a short overall duration as part of its total balance sheet interest rate risk management strategy. |
● | Further segmenting the Core Bank’s increased cost of interest-bearing liabilities: |
o | The weighted-average cost of total interest-bearing deposits increased from 2.08% during the third quarter of 2023 to 2.77% for the third quarter of 2024, while average interest-bearing deposits grew $510 million over the same periods. Included within this growth in interest-bearing deposits was an $145 million increase in the average balances for higher-costing, short-term brokered deposits and third-party listing service deposits, which the Company utilized for excess liquidity purposes. |
o | The average balance of FHLB borrowings decreased from $442 million for the third quarter of 2023 to $388 million for the third quarter of 2024. In addition, the weighted-average cost of these borrowings decreased from 4.85% to 4.41% for the same time periods. The decrease in the average balance of borrowings was driven primarily by the above noted growth in period-to-period average interest-bearing deposits, while the decrease in the overall weighted-average cost of FHLB borrowings resulted from term-extension strategies to take advantage of the inverted yield curve. |
● | Average noninterest-bearing deposits decreased $176 million from the third quarter of 2023 to the third quarter of 2024. The decline in noninterest-bearing deposits continued a trend dating back to the fourth quarter of 2022, as the inverted yield curve and competition for deposits continued to make interest-bearing deposits a more attractive on-going alternative for consumer and business deposit accounts. |
3
The following tables present by reportable segment the overall changes in the Core Bank’s net interest income, net interest margin, as well as average and period-end loan balances:
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Net Interest Income |
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Net Interest Margin |
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(dollars in thousands) |
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Three Months Ended Sep. 30, |
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Three Months Ended Sep. 30, |
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Reportable Segment |
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2024 |
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2023 |
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Change |
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2024 |
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2023 |
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Change |
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Traditional Banking |
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$ |
51,023 |
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$ |
47,493 |
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$ |
3,530 |
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3.61 |
% |
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3.52 |
% |
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0.09 |
% |
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Warehouse Lending |
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3,580 |
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2,467 |
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1,113 |
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2.70 |
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2.33 |
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0.37 |
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Total Core Bank |
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$ |
54,603 |
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$ |
49,960 |
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$ |
4,643 |
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3.53 |
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3.43 |
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0.10 |
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Average Loan Balances |
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Period-End Loan Balances |
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(dollars in thousands) |
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Three Months Ended Sep. 30, |
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Sep. 30, |
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Sep. 30, |
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Reportable Segment |
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2024 |
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2023 |
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$ Change |
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% Change |
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2024 |
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2023 |
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$ Change |
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% Change |
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Traditional Banking |
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$ |
4,579,371 |
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$ |
4,446,585 |
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$ |
132,786 |
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3 |
% |
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$ |
4,566,896 |
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$ |
4,496,743 |
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$ |
70,153 |
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2 |
% |
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Warehouse Lending |
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528,363 |
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423,141 |
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105,222 |
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25 |
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595,163 |
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457,033 |
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138,130 |
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30 |
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Total Core Bank |
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$ |
5,107,734 |
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$ |
4,869,726 |
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$ |
238,008 |
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5 |
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$ |
5,162,059 |
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$ |
4,953,776 |
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$ |
208,283 |
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4 |
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Provision for Expected Credit Loss Expense – The Core Bank’s Provision (2) was a net charge of $1.6 million for the third quarter of 2024 compared to a net charge of $1.4 million for the third quarter of 2023.
The net charge of $1.6 million for the third quarter of 2024 was driven, primarily, by the following:
● | The Core Bank recorded a net credit to the Provision of $442,000 during the third quarter of 2024 primarily related to a decline in Traditional Bank loan balances, which decreased by $22 million for the quarter. |
● | The Core Bank recorded a loan loss Provision of $1.9 million for the charge-off of three linked, marine-related consumer loans. |
● | The Core Bank recorded a net charge to the Provision of $116,000 resulting from general formula reserves applied to an $46 million increase in outstanding Warehouse balances during the quarter. |
The net charge during the third quarter of 2023 was primarily driven by the following:
● | The Core Bank recorded a net charge to the Provision of $1.6 million during the third quarter of 2023 related to general formula reserves applied to $101 million of Traditional Bank loan growth for the quarter. |
● | The Core Bank recorded a net credit to the Provision of $203,000 resulting from general formula reserves applied to an $82 million decline in outstanding Warehouse balances for the quarter. |
4
As a percentage of total loans, the Core Bank’s Allowance(2) increased 1 basis point from September 30, 2023 to September 30, 2024. The table below provides a view of the Company’s percentage of Allowance-to-total-loans by reportable segment.
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As of Sep. 30, 2024 |
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As of Sep. 30, 2023 |
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Year-over-Year Change |
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(dollars in thousands) |
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Allowance |
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Allowance |
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Allowance |
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Reportable Segment |
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Gross Loans |
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Allowance |
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to Loans |
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Gross Loans |
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Allowance |
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to Loans |
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to Loans |
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% Change |
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Traditional Bank |
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$ |
4,566,896 |
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$ |
59,549 |
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1.30 |
% |
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$ |
4,496,743 |
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$ |
56,931 |
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1.27 |
% |
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0.03 |
% |
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2 |
% |
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Warehouse Lending |
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595,163 |
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1,486 |
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0.25 |
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457,033 |
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1,143 |
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0.25 |
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— |
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— |
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Total Core Bank |
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5,162,059 |
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61,035 |
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1.18 |
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4,953,776 |
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58,074 |
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1.17 |
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0.01 |
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1 |
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Tax Refund Solutions |
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302 |
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1 |
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0.33 |
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354 |
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1 |
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0.28 |
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0.05 |
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18 |
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Republic Credit Solutions |
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134,556 |
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21,122 |
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15.70 |
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126,969 |
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16,501 |
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13.00 |
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2.70 |
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21 |
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Total Republic Processing Group |
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134,858 |
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21,123 |
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15.66 |
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127,323 |
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16,502 |
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12.96 |
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2.70 |
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21 |
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Total Company |
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$ |
5,296,917 |
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$ |
82,158 |
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1.55 |
% |
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$ |
5,081,099 |
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$ |
74,576 |
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1.47 |
% |
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0.08 |
% |
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5 |
% |
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ACLL Roll-Forward |
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Three Months Ended September 30, |
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2024 |
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2023 |
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(dollars in thousands) |
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Beginning |
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Charge- |
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Ending |
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Beginning |
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Charge- |
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Ending |
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Reportable Segment |
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Balance |
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Provision |
|
offs |
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Recoveries |
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Balance |
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Balance |
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Provision |
|
offs |
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Recoveries |
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Balance |
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Traditional Bank |
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$ |
59,865 |
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$ |
1,488 |
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$ |
(2,308) |
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$ |
504 |
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$ |
59,549 |
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$ |
55,567 |
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$ |
1,567 |
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$ |
(332) |
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$ |
129 |
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$ |
56,931 |
Warehouse Lending |
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|
1,370 |
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|
116 |
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— |
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— |
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1,486 |
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1,346 |
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(203) |
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— |
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— |
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1,143 |
Total Core Bank |
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61,235 |
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1,604 |
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(2,308) |
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|
504 |
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61,035 |
|
|
56,913 |
|
|
1,364 |
|
|
(332) |
|
|
129 |
|
|
58,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Refund Solutions |
|
|
— |
|
|
(2,310) |
|
|
— |
|
|
2,311 |
|
|
1 |
|
|
— |
|
|
(1,967) |
|
|
— |
|
|
1,968 |
|
|
1 |
Republic Credit Solutions |
|
|
19,452 |
|
|
6,365 |
|
|
(5,022) |
|
|
327 |
|
|
21,122 |
|
|
15,289 |
|
|
4,333 |
|
|
(3,340) |
|
|
219 |
|
|
16,501 |
Total Republic Processing Group |
|
|
19,452 |
|
|
4,055 |
|
|
(5,022) |
|
|
2,638 |
|
|
21,123 |
|
|
15,289 |
|
|
2,366 |
|
|
(3,340) |
|
|
2,187 |
|
|
16,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
|
$ |
80,687 |
|
$ |
5,659 |
|
$ |
(7,330) |
|
$ |
3,142 |
|
$ |
82,158 |
|
$ |
72,202 |
|
$ |
3,730 |
|
$ |
(3,672) |
|
$ |
2,316 |
|
$ |
74,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below presents the Core Bank’s credit quality metrics:
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended: |
Years Ended: |
||||||||
|
Sep. 30, |
|
Sep. 30, |
|
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||
Core Banking Credit Quality Ratios |
2024 |
|
2023 |
|
2023 |
2022 |
2021 |
|||
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
0.38 |
% |
0.37 |
% |
0.39 |
% |
0.37 |
% |
0.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total loans (including OREO) |
0.40 |
|
0.39 |
|
0.41 |
|
0.40 |
|
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans* to total loans |
0.19 |
|
0.14 |
|
0.16 |
|
0.14 |
|
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans |
0.14 |
|
0.02 |
|
0.01 |
|
0.00 |
|
0.01 |
|
(Quarterly rates annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OREO = Other Real Estate Owned |
|
|
|
|
|
|
|
|
|
|
*Loans 30-days-or-more past due at the time the second contractual payment is past due.
Noninterest Income – Core Bank noninterest income increased $1.1 million from $10.0 million in the third quarter of 2023 to $11.1 million for the third quarter of 2024. The increase in noninterest income was primarily driven by a $1.2 million increase in mortgage banking income, which resulted from a reduction in long-term interest rates during the third quarter of 2024 leading to an up-tick in consumer loan demand for 15-and 30-year fixed rate mortgage loans. Altogether, the Core Bank experienced a $47.5 million, or 99%, increase in fixed-rate, secondary market loan rate-lock applications from the third quarter of 2023 to the third quarter of 2024.
Noninterest Expense – The Core Bank’s noninterest expenses were essentially flat at $42.2 million for the third quarter of 2024, an increase of only $15,000 over the third quarter of 2023. Notable line-item variances within the noninterest expense category included:
5
● | Salaries and benefits were flat as a 41-count reduction in Core Bank FTEs from September 30, 2023 to September 30, 2024 was able to substantially offset the increase in salaries over the same periods resulting from annual merit increases. |
● | Technology expenses declined $358,000 from period-to-period, primarily the result of a $450,000 credit the Core Bank received during the third quarter of 2024 for a contract billing dispute with one of its technology providers. |
Republic Processing Group(3)
RPG reported net income of $9.4 million for the third quarter of 2024, a $1.0 million, or 12% increase over the $8.4 million for the third quarter of 2023. RPG’s performance for the third quarter of 2024 compared to the third quarter of 2023, by operating segment, was as follows:
Tax Refund Solutions
TRS recorded net income of $919,000 during the third quarter of 2024 compared to net income of $418,000 for the third quarter of 2023. The overall increase in TRS net income for the quarter was driven primarily by a $387,000 increase in recoveries of prior period charge-offs for Refund Advances (“RAs”) and a $340,000 increase in net refund transfer fees. Both of these increases were the positive result of a pick-up in the pace of tax refund payments received from the federal government as compared to third quarter of 2023.
Republic Payment Solutions
Net income at RPS was $2.2 million for the third quarter of 2024, a $917,000 decrease from the third quarter of 2023. During the quarter, RPS earned a slightly lower yield of 4.91% applied to the $351 million average of prepaid program balances for the third quarter of 2024 compared to a yield of 4.97% for the $343 million in average prepaid card balances for the third quarter of 2023. In addition, net interest income at RPS was also negatively impacted by a $1.3 million charge to interest expense for a revenue sharing arrangement that began in January 2024.
Republic Credit Solutions
Net income at RCS increased $1.4 million, or 29% from $4.9 million for the third quarter of 2023 to $6.3 million for the third quarter of 2024. The increase in RCS net income was primarily due to growth in profitability of one of its Line-of-Credit (“LOC”) products, which had an increase in net income of $959,000 from the third quarter of 2023 to the third quarter of 2024. The rise in net income for this LOC product was driven primarily by a period-to-period increase in average outstanding loan balances of approximately $8 million.
Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 47 banking centers in communities within five metropolitan statistical areas (“MSAs”) across five states: 22 banking centers located within the Louisville MSA in Louisville, Prospect, Shelbyville, and Shepherdsville in Kentucky, and Floyds Knobs, Jeffersonville, and New Albany in Indiana; six banking centers within the Lexington MSA in Georgetown and Lexington in Kentucky; eight banking centers within the Cincinnati MSA in Cincinnati and West Chester in Ohio, and Bellevue, Covington, Crestview Hills, and Florence in Kentucky; seven banking centers within the Tampa MSA in Largo, New Port Richey, St. Petersburg, Seminole, and Tampa in Florida; and four banking centers within the Nashville MSA in Franklin, Murfreesboro, Nashville and Spring Hill, Tennessee. In addition, Republic Bank Finance has one loan production office in St. Louis, Missouri. The Bank offers internet banking at www.republicbank.com. The Company is headquartered in Louisville, Kentucky, and as of September 30, 2024, had approximately $6.7 billion in total assets. 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. ®
6
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 yield curve, 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, 2023. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.
Footnotes:
(1) | “Core Bank” or “Core Banking” operations consist of the Traditional Banking and Warehouse Lending segments. |
(2) | Provision – Provision for Expected Credit Loss Expense |
Allowance – Allowance for Credit Losses on Loans
(3) | Republic Processing Group operations consist of the TRS, RPS, and RCS segments. |
NM – Not meaningful
NA – Not applicable
CONTACT:
Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President & Chief Financial Officer
(502) 560-8628
7
Exhibit 99.2
EARNINGS RELEASE FINANCIAL SUPPLEMENT
THIRD QUARTER 2024
TABLE OF CONTENTS
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S-2 |
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S-3 |
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S-4 |
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S-5 |
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S-6 |
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S-7 |
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S-7 |
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S-8 |
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|
|
S-9 |
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|
|
S-12 |
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
S-1
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024
(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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|||||||||||||
|
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
530,865 |
|
$ |
400,059 |
|
$ |
546,363 |
|
$ |
316,567 |
|
$ |
219,653 |
Investment securities, net of allowance for credit losses |
|
|
478,064 |
|
|
557,459 |
|
|
664,294 |
|
|
667,874 |
|
|
703,007 |
Loans held for sale |
|
|
34,407 |
|
|
41,904 |
|
|
100,060 |
|
|
27,235 |
|
|
24,683 |
Loans |
|
|
5,296,917 |
|
|
5,264,270 |
|
|
5,224,292 |
|
|
5,239,861 |
|
|
5,081,099 |
Allowance for credit losses |
|
|
(82,158) |
|
|
(80,687) |
|
|
(108,702) |
|
|
(82,130) |
|
|
(74,576) |
Loans, net |
|
|
5,214,759 |
|
|
5,183,583 |
|
|
5,115,590 |
|
|
5,157,731 |
|
|
5,006,523 |
Federal Home Loan Bank stock, at cost |
|
|
23,981 |
|
|
23,840 |
|
|
43,729 |
|
|
23,770 |
|
|
31,420 |
Premises and equipment, net |
|
|
33,007 |
|
|
33,224 |
|
|
33,557 |
|
|
33,411 |
|
|
33,926 |
Right-of-use assets |
|
|
35,897 |
|
|
31,720 |
|
|
33,210 |
|
|
34,691 |
|
|
35,907 |
Goodwill |
|
|
40,516 |
|
|
40,516 |
|
|
40,516 |
|
|
40,516 |
|
|
40,516 |
Other real estate owned ("OREO") |
|
|
1,212 |
|
|
1,265 |
|
|
1,486 |
|
|
1,370 |
|
|
1,423 |
Bank owned life insurance ("BOLI") |
|
|
106,288 |
|
|
105,462 |
|
|
104,670 |
|
|
103,916 |
|
|
103,211 |
Other assets and accrued interest receivable |
|
|
193,474 |
|
|
197,542 |
|
|
192,117 |
|
|
187,810 |
|
|
186,206 |
Total assets |
|
$ |
6,692,470 |
|
$ |
6,616,574 |
|
$ |
6,875,592 |
|
$ |
6,594,891 |
|
$ |
6,386,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
1,260,086 |
|
$ |
1,279,390 |
|
$ |
1,359,516 |
|
$ |
1,676,998 |
|
$ |
1,702,979 |
Interest-bearing |
|
|
3,841,610 |
|
|
3,789,657 |
|
|
4,061,133 |
|
|
3,376,165 |
|
|
3,090,603 |
Total deposits |
|
|
5,101,696 |
|
|
5,069,047 |
|
|
5,420,649 |
|
|
5,053,163 |
|
|
4,793,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under agreements to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repurchase ("SSUAR") and other short-term borrowings |
|
|
79,383 |
|
|
72,598 |
|
|
84,522 |
|
|
97,618 |
|
|
80,797 |
Operating lease liabilities |
|
|
36,797 |
|
|
32,602 |
|
|
34,076 |
|
|
35,539 |
|
|
36,726 |
Federal Home Loan Bank advances |
|
|
370,000 |
|
|
370,000 |
|
|
270,000 |
|
|
380,000 |
|
|
465,000 |
Other liabilities and accrued interest payable |
|
|
124,889 |
|
|
116,904 |
|
|
130,762 |
|
|
115,815 |
|
|
116,970 |
Total liabilities |
|
|
5,712,765 |
|
|
5,661,151 |
|
|
5,940,009 |
|
|
5,682,135 |
|
|
5,493,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
979,705 |
|
|
955,423 |
|
|
935,583 |
|
|
912,756 |
|
|
893,400 |
Total liabilities and stockholders' equity |
|
$ |
6,692,470 |
|
$ |
6,616,574 |
|
$ |
6,875,592 |
|
$ |
6,594,891 |
|
$ |
6,386,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-2
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|||||||||||||||||
|
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
|||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other interest-earning deposits |
|
$ |
457,797 |
|
$ |
393,095 |
|
$ |
454,426 |
|
$ |
201,206 |
|
$ |
177,003 |
|
|
$ |
435,189 |
|
$ |
177,292 |
Investment securities, including FHLB stock |
|
|
593,449 |
|
|
670,114 |
|
|
732,678 |
|
|
769,016 |
|
|
771,453 |
|
|
|
665,151 |
|
|
773,145 |
Loans, including loans held for sale |
|
|
5,261,173 |
|
|
5,262,719 |
|
|
5,454,344 |
|
|
5,111,263 |
|
|
5,006,081 |
|
|
|
5,325,841 |
|
|
4,859,845 |
Total interest-earning assets |
|
|
6,312,419 |
|
|
6,325,928 |
|
|
6,641,448 |
|
|
6,081,485 |
|
|
5,954,537 |
|
|
|
6,426,181 |
|
|
5,810,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(81,567) |
|
|
(108,194) |
|
|
(96,446) |
|
|
(75,747) |
|
|
(73,438) |
|
|
|
(95,352) |
|
|
(84,415) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning cash and cash equivalents |
|
|
82,969 |
|
|
102,712 |
|
|
280,618 |
|
|
101,119 |
|
|
96,303 |
|
|
|
155,169 |
|
|
167,960 |
Premises and equipment, net |
|
|
33,319 |
|
|
33,452 |
|
|
33,889 |
|
|
33,940 |
|
|
34,013 |
|
|
|
33,553 |
|
|
33,411 |
Bank owned life insurance |
|
|
105,974 |
|
|
105,128 |
|
|
104,305 |
|
|
103,557 |
|
|
102,825 |
|
|
|
105,138 |
|
|
102,479 |
Other assets |
|
|
258,704 |
|
|
247,858 |
|
|
255,758 |
|
|
231,207 |
|
|
220,595 |
|
|
|
254,126 |
|
|
205,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,711,818 |
|
$ |
6,706,884 |
|
$ |
7,219,572 |
|
$ |
6,475,561 |
|
$ |
6,334,835 |
|
|
$ |
6,878,815 |
|
$ |
6,235,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
3,820,078 |
|
$ |
3,848,238 |
|
$ |
4,004,846 |
|
$ |
3,210,495 |
|
$ |
2,976,852 |
|
|
$ |
3,890,796 |
|
$ |
2,824,043 |
SSUARs and other short-term borrowings |
|
|
73,660 |
|
|
88,326 |
|
|
102,592 |
|
|
141,861 |
|
|
90,063 |
|
|
|
88,140 |
|
|
136,528 |
Federal Home Loan Bank advances |
|
|
387,989 |
|
|
305,604 |
|
|
536,209 |
|
|
357,321 |
|
|
441,543 |
|
|
|
409,854 |
|
|
315,015 |
Total interest-bearing liabilities |
|
|
4,281,727 |
|
|
4,242,168 |
|
|
4,643,647 |
|
|
3,709,677 |
|
|
3,508,458 |
|
|
|
4,388,790 |
|
|
3,275,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing deposits |
|
|
1,313,207 |
|
|
1,366,862 |
|
|
1,490,048 |
|
|
1,715,408 |
|
|
1,794,874 |
|
|
|
1,389,759 |
|
|
1,936,096 |
Other liabilities |
|
|
140,761 |
|
|
144,108 |
|
|
152,835 |
|
|
144,194 |
|
|
133,237 |
|
|
|
145,883 |
|
|
133,081 |
Stockholders' equity |
|
|
976,123 |
|
|
953,746 |
|
|
933,042 |
|
|
906,282 |
|
|
898,266 |
|
|
|
954,383 |
|
|
890,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
6,711,818 |
|
$ |
6,706,884 |
|
$ |
7,219,572 |
|
$ |
6,475,561 |
|
$ |
6,334,835 |
|
|
$ |
6,878,815 |
|
$ |
6,235,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-3
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Total Company Average Balance Sheet and Interest Rates
|
|
Three Months Ended September 30, 2024 |
|
|
Three Months Ended September 30, 2023 |
|
||||||||||||||
|
|
Average |
|
|
|
|
Average |
|
|
Average |
|
|
|
|
Average |
|
||||
(dollars in thousands) |
|
Balance |
|
Interest |
|
Rate |
|
|
Balance |
|
Interest |
|
Rate |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and other interest-earning deposits |
|
$ |
457,797 |
|
$ |
6,172 |
|
5.36 |
% |
|
|
$ |
177,003 |
|
$ |
2,395 |
|
5.41 |
% |
|
Investment securities, including FHLB stock (a) |
|
|
593,449 |
|
|
4,780 |
|
3.20 |
|
|
|
|
771,453 |
|
|
5,298 |
|
2.75 |
|
|
RCS LOC products (b) |
|
|
46,805 |
|
|
12,935 |
|
109.94 |
|
|
|
|
37,319 |
|
|
9,762 |
|
104.63 |
|
|
Other RPG loans (c) (f) |
|
|
106,634 |
|
|
2,133 |
|
7.96 |
|
|
|
|
99,036 |
|
|
2,079 |
|
8.40 |
|
|
Outstanding Warehouse lines of credit (d) (f) |
|
|
528,363 |
|
|
10,672 |
|
8.04 |
|
|
|
|
423,141 |
|
|
8,154 |
|
7.71 |
|
|
All other Core Bank loans (e) (f) |
|
|
4,579,371 |
|
|
64,854 |
|
5.63 |
|
|
|
|
4,446,585 |
|
|
58,180 |
|
5.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
|
6,312,419 |
|
|
101,546 |
|
6.40 |
|
|
|
|
5,954,537 |
|
|
85,868 |
|
5.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(81,567) |
|
|
|
|
|
|
|
|
|
(73,438) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning cash and cash equivalents |
|
|
82,969 |
|
|
|
|
|
|
|
|
|
96,303 |
|
|
|
|
|
|
|
Premises and equipment, net |
|
|
33,319 |
|
|
|
|
|
|
|
|
|
34,013 |
|
|
|
|
|
|
|
Bank owned life insurance |
|
|
105,974 |
|
|
|
|
|
|
|
|
|
102,825 |
|
|
|
|
|
|
|
Other assets (a) |
|
|
258,704 |
|
|
|
|
|
|
|
|
|
220,595 |
|
|
|
|
|
|
|
Total assets |
|
$ |
6,711,818 |
|
|
|
|
|
|
|
|
$ |
6,334,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction accounts |
|
$ |
1,754,355 |
|
$ |
5,882 |
|
1.33 |
% |
|
|
$ |
1,455,193 |
|
$ |
3,719 |
|
0.98 |
% |
|
Money market accounts |
|
|
1,215,354 |
|
|
10,770 |
|
3.53 |
|
|
|
|
905,089 |
|
|
6,391 |
|
2.82 |
|
|
Time deposits |
|
|
390,413 |
|
|
3,952 |
|
4.03 |
|
|
|
|
328,071 |
|
|
2,706 |
|
3.30 |
|
|
Reciprocal money market and time deposits |
|
|
372,725 |
|
|
4,030 |
|
4.30 |
|
|
|
|
281,277 |
|
|
2,748 |
|
3.91 |
|
|
Brokered deposits |
|
|
87,231 |
|
|
1,168 |
|
5.33 |
|
|
|
|
7,222 |
|
|
100 |
|
5.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
3,820,078 |
|
|
25,802 |
|
2.69 |
|
|
|
|
2,976,852 |
|
|
15,664 |
|
2.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSUARs and other short-term borrowings |
|
|
73,660 |
|
|
141 |
|
0.76 |
|
|
|
|
90,063 |
|
|
29 |
|
0.87 |
|
|
Federal Home Loan Bank advances and other long-term borrowings |
|
|
387,989 |
|
|
4,298 |
|
4.41 |
|
|
|
|
441,543 |
|
|
5,350 |
|
4.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
|
4,281,727 |
|
|
30,241 |
|
2.81 |
|
|
|
|
3,508,458 |
|
|
21,043 |
|
2.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities and Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
1,313,207 |
|
|
|
|
|
|
|
|
|
1,794,874 |
|
|
|
|
|
|
|
Other liabilities |
|
|
140,761 |
|
|
|
|
|
|
|
|
|
133,237 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
976,123 |
|
|
|
|
|
|
|
|
|
898,266 |
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
6,711,818 |
|
|
|
|
|
|
|
|
$ |
6,334,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
71,305 |
|
|
|
|
|
|
|
|
$ |
64,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
3.59 |
% |
|
|
|
|
|
|
|
|
3.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
|
|
|
4.49 |
% |
|
|
|
|
|
|
|
|
4.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) | For the purpose of this calculation, the fair market value adjustment on debt securities is included as a component of other assets. |
(b) | Interest income for Refund Advances and RCS line-of-credit products is composed entirely of loan fees. |
(c) | Interest income includes loan fees of $0 and $0 for the three months ended September 30, 2024 and 2023. |
(d) | Interest income includes loan fees of $392,000 and $254,000 for the three months ended September 30, 2024 and 2023. |
(e) | Interest income includes loan fees of $1.5 million and $1.7 million for the three months ended September 30, 2024 and 2023. |
(f) | Average balances for loans include the principal balance of nonaccrual loans and loans held for sale, and are inclusive of all loan premiums, discounts, fees and costs. |
S-4
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|||||||||||||||||
|
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income (1) |
|
$ |
101,546 |
|
$ |
97,700 |
|
$ |
130,632 |
|
$ |
90,785 |
|
$ |
85,868 |
|
|
$ |
329,878 |
|
$ |
265,278 |
Total interest expense |
|
|
30,241 |
|
|
29,164 |
|
|
33,713 |
|
|
24,003 |
|
|
21,043 |
|
|
|
93,118 |
|
|
43,282 |
Net interest income |
|
|
71,305 |
|
|
68,536 |
|
|
96,919 |
|
|
66,782 |
|
|
64,825 |
|
|
|
236,760 |
|
|
221,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (2) |
|
|
5,660 |
|
|
5,143 |
|
|
30,622 |
|
|
10,989 |
|
|
3,730 |
|
|
|
41,425 |
|
|
36,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
3,693 |
|
|
3,526 |
|
|
3,313 |
|
|
3,470 |
|
|
3,559 |
|
|
|
10,532 |
|
|
10,385 |
Net refund transfer fees |
|
|
582 |
|
|
3,811 |
|
|
10,820 |
|
|
220 |
|
|
242 |
|
|
|
15,213 |
|
|
15,528 |
Mortgage banking income (3) |
|
|
2,062 |
|
|
1,612 |
|
|
310 |
|
|
983 |
|
|
852 |
|
|
|
3,984 |
|
|
2,559 |
Interchange fee income |
|
|
3,286 |
|
|
3,351 |
|
|
3,157 |
|
|
3,305 |
|
|
3,282 |
|
|
|
9,794 |
|
|
9,752 |
Program fees (3) |
|
|
4,962 |
|
|
4,398 |
|
|
4,179 |
|
|
4,561 |
|
|
4,041 |
|
|
|
13,539 |
|
|
11,021 |
Increase in cash surrender value of BOLI |
|
|
826 |
|
|
792 |
|
|
754 |
|
|
705 |
|
|
690 |
|
|
|
2,372 |
|
|
2,014 |
Death benefits in excess of cash surrender value of life insurance |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1,728 |
Net losses on OREO |
|
|
(53) |
|
|
(48) |
|
|
(53) |
|
|
(53) |
|
|
(53) |
|
|
|
(154) |
|
|
(158) |
Other* |
|
|
1,455 |
|
|
904 |
|
|
893 |
|
|
1,589 |
|
|
1,732 |
|
|
|
3,252 |
|
|
3,848 |
Total noninterest income* |
|
|
16,813 |
|
|
18,346 |
|
|
23,373 |
|
|
14,780 |
|
|
14,345 |
|
|
|
58,532 |
|
|
56,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
28,792 |
|
|
29,143 |
|
|
29,716 |
|
|
26,397 |
|
|
28,747 |
|
|
|
87,651 |
|
|
89,472 |
Technology, equipment, and communication |
|
|
7,544 |
|
|
7,340 |
|
|
7,490 |
|
|
7,648 |
|
|
7,311 |
|
|
|
22,374 |
|
|
21,459 |
Occupancy |
|
|
3,224 |
|
|
3,409 |
|
|
3,822 |
|
|
3,467 |
|
|
3,503 |
|
|
|
10,455 |
|
|
10,500 |
Marketing and development |
|
|
1,983 |
|
|
2,705 |
|
|
1,924 |
|
|
2,304 |
|
|
2,055 |
|
|
|
6,612 |
|
|
6,142 |
FDIC insurance expense |
|
|
764 |
|
|
748 |
|
|
772 |
|
|
690 |
|
|
677 |
|
|
|
2,284 |
|
|
2,038 |
Interchange related expense |
|
|
1,540 |
|
|
1,412 |
|
|
1,298 |
|
|
1,536 |
|
|
1,580 |
|
|
|
4,250 |
|
|
4,429 |
Legal and professional fees |
|
|
870 |
|
|
770 |
|
|
1,055 |
|
|
511 |
|
|
803 |
|
|
|
2,695 |
|
|
2,693 |
Merger expense |
|
|
— |
|
|
— |
|
|
41 |
|
|
92 |
|
|
(132) |
|
|
|
41 |
|
|
2,068 |
Other (2)* |
|
|
3,892 |
|
|
4,107 |
|
|
4,853 |
|
|
4,409 |
|
|
3,824 |
|
|
|
12,852 |
|
|
13,543 |
Total noninterest expense* |
|
|
48,609 |
|
|
49,634 |
|
|
50,971 |
|
|
47,054 |
|
|
48,368 |
|
|
|
149,214 |
|
|
152,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
|
33,849 |
|
|
32,105 |
|
|
38,699 |
|
|
23,519 |
|
|
27,072 |
|
|
|
104,653 |
|
|
89,694 |
Income tax expense |
|
|
7,306 |
|
|
6,899 |
|
|
8,093 |
|
|
3,860 |
|
|
5,501 |
|
|
|
22,298 |
|
|
18,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
26,543 |
|
$ |
25,206 |
|
$ |
30,606 |
|
$ |
19,659 |
|
$ |
21,571 |
|
|
$ |
82,355 |
|
$ |
70,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) For the three months ended September 30, 2023 management has reclassified certain items between noninterest income and noninterest expense.
S-5
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (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 |
|
|
As of and for the Nine Months Ended |
||||||||||||||||||||||||
|
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
||||||||||||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
|
19,654 |
|
|
|
19,633 |
|
|
|
19,607 |
|
|
|
19,586 |
|
|
|
19,706 |
|
|
|
|
19,637 |
|
|
|
19,855 |
|
Diluted weighted average shares outstanding |
|
|
19,735 |
|
|
|
19,714 |
|
|
|
19,694 |
|
|
|
19,673 |
|
|
|
19,774 |
|
|
|
|
19,709 |
|
|
|
19,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Common Stock |
|
|
17,293 |
|
|
|
17,275 |
|
|
|
17,260 |
|
|
|
17,203 |
|
|
|
17,296 |
|
|
|
|
17,293 |
|
|
|
17,296 |
|
Class B Common Stock |
|
|
2,150 |
|
|
|
2,150 |
|
|
|
2,151 |
|
|
|
2,155 |
|
|
|
2,158 |
|
|
|
|
2,150 |
|
|
|
2,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share (4) |
|
$ |
50.39 |
|
|
$ |
49.19 |
|
|
$ |
48.20 |
|
|
$ |
47.15 |
|
|
$ |
45.93 |
|
|
|
$ |
50.39 |
|
|
$ |
45.93 |
|
Tangible book value per share (4) |
|
|
47.84 |
|
|
|
46.62 |
|
|
|
45.63 |
|
|
|
44.55 |
|
|
|
43.31 |
|
|
|
|
47.84 |
|
|
|
43.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share ("EPS"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic EPS - Class A Common Stock |
|
$ |
1.37 |
|
|
$ |
1.31 |
|
|
$ |
1.59 |
|
|
$ |
1.01 |
|
|
$ |
1.10 |
|
|
|
$ |
4.25 |
|
|
$ |
3.61 |
|
Basic EPS - Class B Common Stock |
|
|
1.25 |
|
|
|
1.18 |
|
|
|
1.44 |
|
|
|
0.93 |
|
|
|
1.00 |
|
|
|
|
3.87 |
|
|
|
3.28 |
|
Diluted EPS - Class A Common Stock |
|
|
1.37 |
|
|
|
1.30 |
|
|
|
1.58 |
|
|
|
1.01 |
|
|
|
1.10 |
|
|
|
|
4.24 |
|
|
|
3.60 |
|
Diluted EPS - Class B Common Stock |
|
|
1.24 |
|
|
|
1.18 |
|
|
|
1.43 |
|
|
|
0.92 |
|
|
|
1.00 |
|
|
|
|
3.85 |
|
|
|
3.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per Common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Common Stock |
|
$ |
0.407 |
|
|
$ |
0.407 |
|
|
$ |
0.407 |
|
|
$ |
0.374 |
|
|
$ |
0.374 |
|
|
|
$ |
1.221 |
|
|
$ |
1.122 |
|
Class B Common Stock |
|
|
0.370 |
|
|
|
0.370 |
|
|
|
0.370 |
|
|
|
0.340 |
|
|
|
0.340 |
|
|
|
|
1.110 |
|
|
|
1.020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.58 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
|
1.21 |
% |
|
|
1.36 |
% |
|
|
|
1.60 |
% |
|
|
1.51 |
% |
Return on average equity |
|
|
10.88 |
|
|
|
10.57 |
|
|
|
13.12 |
|
|
|
8.68 |
|
|
|
9.61 |
|
|
|
|
11.53 |
|
|
|
10.58 |
|
Efficiency ratio (5) |
|
|
55 |
|
|
|
57 |
|
|
|
42 |
|
|
|
58 |
|
|
|
61 |
|
|
|
|
51 |
|
|
|
54 |
|
Yield on average interest-earning assets (1) |
|
|
6.40 |
|
|
|
6.21 |
|
|
|
7.91 |
|
|
|
5.92 |
|
|
|
5.77 |
|
|
|
|
6.86 |
|
|
|
6.09 |
|
Cost of average interest-bearing liabilities |
|
|
2.81 |
|
|
|
2.77 |
|
|
|
2.92 |
|
|
|
2.57 |
|
|
|
2.40 |
|
|
|
|
2.83 |
|
|
|
1.76 |
|
Cost of average deposits (6) |
|
|
2.01 |
|
|
|
1.98 |
|
|
|
1.97 |
|
|
|
1.60 |
|
|
|
1.30 |
|
|
|
|
1.99 |
|
|
|
0.89 |
|
Net interest spread (1) |
|
|
3.59 |
|
|
|
3.44 |
|
|
|
4.99 |
|
|
|
3.35 |
|
|
|
3.37 |
|
|
|
|
4.03 |
|
|
|
4.33 |
|
Net interest margin - Total Company (1) |
|
|
4.49 |
|
|
|
4.36 |
|
|
|
5.87 |
|
|
|
4.36 |
|
|
|
4.35 |
|
|
|
|
4.92 |
|
|
|
5.09 |
|
Net interest margin - Core Bank |
|
|
3.53 |
|
|
|
3.46 |
|
|
|
3.30 |
|
|
|
3.40 |
|
|
|
3.43 |
|
|
|
|
3.43 |
|
|
|
3.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period FTEs (7) - Total Company |
|
|
992 |
|
|
|
999 |
|
|
|
1,011 |
|
|
|
1,019 |
|
|
|
1,033 |
|
|
|
|
992 |
|
|
|
1,033 |
|
End of period FTEs - Core Bank |
|
|
935 |
|
|
|
943 |
|
|
|
952 |
|
|
|
962 |
|
|
|
976 |
|
|
|
|
935 |
|
|
|
976 |
|
Number of full-service banking centers |
|
|
47 |
|
|
|
47 |
|
|
|
47 |
|
|
|
47 |
|
|
|
46 |
|
|
|
|
47 |
|
|
|
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-6
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
Loan Composition and Allowance for Credit Losses on Loans |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
As of |
|
|||||||||||||
|
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|||||
Loan Composition |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Banking: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied |
|
$ |
1,046,385 |
|
$ |
1,058,139 |
|
$ |
1,064,071 |
|
$ |
1,144,684 |
|
$ |
1,128,745 |
|
Nonowner occupied |
|
|
326,273 |
|
|
331,954 |
|
|
342,481 |
|
|
345,965 |
|
|
344,682 |
|
Commercial real estate |
|
|
1,813,303 |
|
|
1,821,798 |
|
|
1,800,801 |
|
|
1,785,289 |
|
|
1,745,187 |
|
Construction & land development |
|
|
247,730 |
|
|
239,615 |
|
|
237,998 |
|
|
217,338 |
|
|
189,756 |
|
Commercial & industrial |
|
|
437,911 |
|
|
452,815 |
|
|
453,971 |
|
|
464,078 |
|
|
473,790 |
|
Lease financing receivables |
|
|
89,653 |
|
|
88,529 |
|
|
88,272 |
|
|
88,591 |
|
|
85,242 |
|
Aircraft |
|
|
235,327 |
|
|
240,275 |
|
|
246,060 |
|
|
250,051 |
|
|
226,947 |
|
Home equity |
|
|
341,204 |
|
|
325,086 |
|
|
309,083 |
|
|
295,133 |
|
|
275,750 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards |
|
|
16,762 |
|
|
16,547 |
|
|
16,858 |
|
|
16,654 |
|
|
16,950 |
|
Overdrafts |
|
|
827 |
|
|
746 |
|
|
629 |
|
|
694 |
|
|
640 |
|
Automobile loans |
|
|
1,340 |
|
|
1,599 |
|
|
2,054 |
|
|
2,664 |
|
|
3,380 |
|
Other consumer |
|
|
10,181 |
|
|
12,064 |
|
|
11,372 |
|
|
7,428 |
|
|
5,674 |
|
Total Traditional Banking |
|
|
4,566,896 |
|
|
4,589,167 |
|
|
4,573,650 |
|
|
4,618,569 |
|
|
4,496,743 |
|
Warehouse lines of credit |
|
|
595,163 |
|
|
549,011 |
|
|
463,249 |
|
|
339,723 |
|
|
457,033 |
|
Total Core Banking |
|
|
5,162,059 |
|
|
5,138,178 |
|
|
5,036,899 |
|
|
4,958,292 |
|
|
4,953,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Republic Processing Group: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Refund Solutions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refund Advances |
|
|
— |
|
|
— |
|
|
52,101 |
|
|
103,115 |
|
|
— |
|
Other TRS commercial & industrial loans |
|
|
302 |
|
|
92 |
|
|
5,396 |
|
|
46,092 |
|
|
354 |
|
Republic Credit Solutions |
|
|
134,556 |
|
|
126,000 |
|
|
129,896 |
|
|
132,362 |
|
|
126,969 |
|
Total Republic Processing Group |
|
|
134,858 |
|
|
126,092 |
|
|
187,393 |
|
|
281,569 |
|
|
127,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans - Total Company |
|
$ |
5,296,917 |
|
$ |
5,264,270 |
|
$ |
5,224,292 |
|
$ |
5,239,861 |
|
$ |
5,081,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Banking |
|
$ |
59,549 |
|
$ |
59,865 |
|
$ |
59,176 |
|
$ |
58,998 |
|
$ |
56,931 |
|
Warehouse Lending |
|
|
1,486 |
|
|
1,370 |
|
|
1,156 |
|
|
847 |
|
|
1,143 |
|
Total Core Banking |
|
|
61,035 |
|
|
61,235 |
|
|
60,332 |
|
|
59,845 |
|
|
58,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Refund Solutions |
|
|
1 |
|
|
— |
|
|
30,069 |
|
|
3,990 |
|
|
1 |
|
Republic Credit Solutions |
|
|
21,122 |
|
|
19,452 |
|
|
18,301 |
|
|
18,295 |
|
|
16,501 |
|
Total Republic Processing Group |
|
|
21,123 |
|
|
19,452 |
|
|
48,370 |
|
|
22,285 |
|
|
16,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Allowance - Total Company |
|
$ |
82,158 |
|
$ |
80,687 |
|
$ |
108,702 |
|
$ |
82,130 |
|
$ |
74,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance to Total Loans |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Banking |
|
|
1.30 |
% |
|
1.30 |
% |
|
1.29 |
% |
|
1.28 |
% |
|
1.27 |
% |
Warehouse Lending |
|
|
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
0.25 |
|
Total Core Banking |
|
|
1.18 |
|
|
1.19 |
|
|
1.20 |
|
|
1.21 |
|
|
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Refund Solutions |
|
|
0.33 |
|
|
— |
|
|
52.30 |
|
|
2.67 |
|
|
0.28 |
|
Republic Credit Solutions |
|
|
15.70 |
|
|
15.44 |
|
|
14.09 |
|
|
13.82 |
|
|
13.00 |
|
Total Republic Processing Group |
|
|
15.66 |
|
|
15.43 |
|
|
25.81 |
|
|
7.91 |
|
|
12.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company |
|
|
1.55 |
|
|
1.53 |
|
|
2.08 |
|
|
1.57 |
|
|
1.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-7
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
|
As of and for the Nine Months Ended |
||||||||||||||||||||||||
|
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
||||||||||||||
Credit Quality Asset Balances and Net Charge-off ("NCO") Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets - Total Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on nonaccrual status |
|
$ |
19,381 |
|
|
$ |
19,910 |
|
|
$ |
19,258 |
|
|
$ |
19,150 |
|
|
$ |
18,127 |
|
|
|
$ |
19,381 |
|
|
$ |
18,127 |
|
Loans past due 90-days-or-more and still on accrual |
|
|
164 |
|
|
|
631 |
|
|
|
2,116 |
|
|
|
1,468 |
|
|
|
1,037 |
|
|
|
|
164 |
|
|
|
1,037 |
|
Total nonperforming loans |
|
|
19,545 |
|
|
|
20,541 |
|
|
|
21,374 |
|
|
|
20,618 |
|
|
|
19,164 |
|
|
|
|
19,545 |
|
|
|
19,164 |
|
OREO |
|
|
1,212 |
|
|
|
1,265 |
|
|
|
1,486 |
|
|
|
1,370 |
|
|
|
1,423 |
|
|
|
|
1,212 |
|
|
|
1,423 |
|
Total nonperforming assets |
|
$ |
20,757 |
|
|
$ |
21,806 |
|
|
$ |
22,860 |
|
|
$ |
21,988 |
|
|
$ |
20,587 |
|
|
|
$ |
20,757 |
|
|
$ |
20,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets - Core Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans on nonaccrual status |
|
$ |
19,381 |
|
|
$ |
19,910 |
|
|
$ |
19,258 |
|
|
$ |
19,150 |
|
|
$ |
18,127 |
|
|
|
$ |
19,381 |
|
|
$ |
18,127 |
|
Loans past due 90-days-or-more and still on accrual |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
|
19,381 |
|
|
|
19,910 |
|
|
|
19,258 |
|
|
|
19,150 |
|
|
|
18,127 |
|
|
|
|
19,381 |
|
|
|
18,127 |
|
OREO |
|
|
1,212 |
|
|
|
1,265 |
|
|
|
1,486 |
|
|
|
1,370 |
|
|
|
1,423 |
|
|
|
|
1,212 |
|
|
|
1,423 |
|
Total nonperforming assets |
|
$ |
20,593 |
|
|
$ |
21,175 |
|
|
$ |
20,744 |
|
|
$ |
20,520 |
|
|
$ |
19,550 |
|
|
|
$ |
20,593 |
|
|
$ |
19,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquent loans - Core Bank |
|
$ |
10,048 |
|
|
$ |
9,313 |
|
|
$ |
7,796 |
|
|
$ |
8,176 |
|
|
$ |
6,806 |
|
|
|
$ |
10,048 |
|
|
$ |
6,806 |
|
RPG |
|
|
10,902 |
|
|
|
9,970 |
|
|
|
13,616 |
|
|
|
13,916 |
|
|
|
12,328 |
|
|
|
|
10,902 |
|
|
|
12,328 |
|
Total delinquent loans - Total Company |
|
$ |
20,950 |
|
|
$ |
19,283 |
|
|
$ |
21,412 |
|
|
$ |
22,092 |
|
|
$ |
19,134 |
|
|
|
$ |
20,950 |
|
|
$ |
19,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCOs (Recoveries) by Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Bank |
|
$ |
1,804 |
|
|
$ |
232 |
|
|
$ |
180 |
|
|
$ |
220 |
|
|
$ |
203 |
|
|
|
$ |
2,216 |
|
|
$ |
405 |
|
Warehouse Lending loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Core Bank loans |
|
|
1,804 |
|
|
|
232 |
|
|
|
180 |
|
|
|
220 |
|
|
|
203 |
|
|
|
|
2,216 |
|
|
|
405 |
|
Tax Refund Solutions |
|
|
(2,311) |
|
|
|
28,887 |
|
|
|
(305) |
|
|
|
(1,052) |
|
|
|
(1,968) |
|
|
|
|
26,271 |
|
|
|
23,509 |
|
Republic Credit Solutions |
|
|
4,695 |
|
|
|
4,045 |
|
|
|
4,175 |
|
|
|
4,267 |
|
|
|
3,121 |
|
|
|
|
12,915 |
|
|
|
8,774 |
|
RPG |
|
|
2,384 |
|
|
|
32,932 |
|
|
|
3,870 |
|
|
|
3,215 |
|
|
|
1,153 |
|
|
|
|
39,186 |
|
|
|
32,283 |
|
Total NCOs (recoveries) - Total Company |
|
$ |
4,188 |
|
|
$ |
33,164 |
|
|
$ |
4,050 |
|
|
$ |
3,435 |
|
|
$ |
1,356 |
|
|
|
$ |
41,402 |
|
|
$ |
32,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Ratios - Total Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
|
0.37 |
% |
|
|
0.39 |
% |
|
|
0.41 |
% |
|
|
0.39 |
% |
|
|
0.38 |
% |
|
|
|
0.37 |
% |
|
|
0.38 |
% |
Nonperforming assets to total loans (including OREO) |
|
|
0.39 |
|
|
|
0.41 |
|
|
|
0.44 |
|
|
|
0.42 |
|
|
|
0.41 |
|
|
|
|
0.39 |
|
|
|
0.41 |
|
Nonperforming assets to total assets |
|
|
0.31 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.33 |
|
|
|
0.32 |
|
|
|
|
0.31 |
|
|
|
0.32 |
|
Allowance for credit losses to total loans |
|
|
1.55 |
|
|
|
1.53 |
|
|
|
2.08 |
|
|
|
1.57 |
|
|
|
1.47 |
|
|
|
|
1.55 |
|
|
|
1.47 |
|
Allowance for credit losses to nonperforming loans |
|
|
420 |
|
|
|
393 |
|
|
|
509 |
|
|
|
398 |
|
|
|
389 |
|
|
|
|
420 |
|
|
|
389 |
|
Delinquent loans to total loans (9) |
|
|
0.40 |
|
|
|
0.37 |
|
|
|
0.41 |
|
|
|
0.42 |
|
|
|
0.38 |
|
|
|
|
0.40 |
|
|
|
0.38 |
|
NCOs (recoveries) to average loans (annualized) |
|
|
0.32 |
|
|
|
2.52 |
|
|
|
0.30 |
|
|
|
0.27 |
|
|
|
0.11 |
|
|
|
|
1.04 |
|
|
|
0.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Ratios - Core Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans |
|
|
0.38 |
% |
|
|
0.39 |
% |
|
|
0.38 |
% |
|
|
0.39 |
% |
|
|
0.37 |
% |
|
|
|
0.38 |
% |
|
|
0.37 |
% |
Nonperforming assets to total loans (including OREO) |
|
|
0.40 |
|
|
|
0.41 |
|
|
|
0.41 |
|
|
|
0.41 |
|
|
|
0.39 |
|
|
|
|
0.40 |
|
|
|
0.39 |
|
Nonperforming assets to total assets |
|
|
0.33 |
|
|
|
0.35 |
|
|
|
0.33 |
|
|
|
0.35 |
|
|
|
0.33 |
|
|
|
|
0.33 |
|
|
|
0.33 |
|
Allowance for credit losses to total loans |
|
|
1.18 |
|
|
|
1.19 |
|
|
|
1.20 |
|
|
|
1.21 |
|
|
|
1.17 |
|
|
|
|
1.18 |
|
|
|
1.17 |
|
Allowance for credit losses to nonperforming loans |
|
|
315 |
|
|
|
308 |
|
|
|
313 |
|
|
|
313 |
|
|
|
320 |
|
|
|
|
315 |
|
|
|
320 |
|
Delinquent loans to total loans |
|
|
0.19 |
|
|
|
0.18 |
|
|
|
0.15 |
|
|
|
0.16 |
|
|
|
0.14 |
|
|
|
|
0.19 |
|
|
|
0.14 |
|
Annualized NCOs (recoveries) to average loans |
|
|
0.14 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
|
0.06 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRS Refund Advances ("RAs") |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RAs originated |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
771,091 |
|
|
$ |
103,115 |
|
|
$ |
— |
|
|
|
$ |
771,091 |
|
|
$ |
737,047 |
|
Net (credit) charge to the Provision for RAs |
|
|
(2,311) |
|
|
|
(1,158) |
|
|
|
25,718 |
|
|
|
2,877 |
|
|
|
(1,939) |
|
|
|
|
22,249 |
|
|
|
19,615 |
|
RAs NCOs (recoveries) |
|
|
(2,311) |
|
|
|
28,764 |
|
|
|
(275) |
|
|
|
(1,052) |
|
|
|
(1,939) |
|
|
|
|
26,178 |
|
|
|
23,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-8
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar.
As of September 30, 2024, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Tax Refund Solutions (“TRS”), Republic Payment Solutions (“RPS”), and Republic Credit Solutions (“RCS”). Management considers the first two segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last three segments collectively constitute Republic Processing Group (“RPG”) operations.
The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below:
Reportable Segment: |
|
Nature of Operations: |
|
Primary Drivers of Net Revenue: |
|
|
|
|
|
Core Banking: |
|
|
|
|
|
|
|
|
|
Traditional Banking |
|
Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital 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 |
|
|
|
|
|
Republic Processing Group: |
|
|
|
|
|
|
|
|
|
Tax Refund Solutions |
|
TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. TRS products are primarily provided to clients outside of the Bank’s market footprint. |
|
Loans and refund transfers |
|
|
|
|
|
Republic Payment Solutions |
|
RPS offers general-purpose reloadable cards. RPS products are primarily provided to clients outside of the Bank’s market footprint. |
|
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 2023 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 reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.
S-9
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
Segment information for the quarters and years ended September 30, 2024 and 2023 follows:
|
|
Three Months Ended September 30, 2024 |
||||||||||||||||||||||||||
|
|
Core Banking |
|
|
Republic Processing Group |
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Core |
|
|
|
Refund |
|
|
Payment |
|
|
Credit |
|
|
Total |
|
|
Total |
||
(dollars in thousands) |
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
Company |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
51,023 |
|
|
$ |
3,580 |
|
|
$ |
54,603 |
|
|
$ |
440 |
|
$ |
2,783 |
|
$ |
13,479 |
|
$ |
16,702 |
|
|
$ |
71,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for expected credit loss expense |
|
1,489 |
|
|
|
116 |
|
|
|
1,605 |
|
|
|
(2,310) |
|
|
— |
|
|
6,365 |
|
|
4,055 |
|
|
|
5,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net refund transfer fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
582 |
|
|
— |
|
|
— |
|
|
582 |
|
|
|
582 |
|
Mortgage banking income |
|
2,062 |
|
|
|
— |
|
|
|
2,062 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,062 |
|
Program fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
786 |
|
|
4,176 |
|
|
4,962 |
|
|
|
4,962 |
|
Other noninterest income |
|
9,016 |
|
|
|
16 |
|
|
|
9,032 |
|
|
|
27 |
|
|
147 |
|
|
1 |
|
|
175 |
|
|
|
9,207 |
|
Total noninterest income |
|
11,078 |
|
|
|
16 |
|
|
|
11,094 |
|
|
|
609 |
|
|
933 |
|
|
4,177 |
|
|
5,719 |
|
|
|
16,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
41,266 |
|
|
|
889 |
|
|
|
42,155 |
|
|
|
2,251 |
|
|
947 |
|
|
3,256 |
|
|
6,454 |
|
|
|
48,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax expense |
|
19,346 |
|
|
|
2,591 |
|
|
|
21,937 |
|
|
|
1,108 |
|
|
2,769 |
|
|
8,035 |
|
|
11,912 |
|
|
|
33,849 |
|
Income tax expense (benefit) |
|
4,189 |
|
|
|
584 |
|
|
|
4,773 |
|
|
|
189 |
|
|
595 |
|
|
1,749 |
|
|
2,533 |
|
|
|
7,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
15,157 |
|
|
$ |
2,007 |
|
|
$ |
17,164 |
|
|
$ |
919 |
|
$ |
2,174 |
|
$ |
6,286 |
|
$ |
9,379 |
|
|
$ |
26,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end assets |
$ |
5,559,357 |
|
|
$ |
595,624 |
|
|
$ |
6,154,981 |
|
|
$ |
26,503 |
|
$ |
367,857 |
|
$ |
143,129 |
|
$ |
537,489 |
|
|
$ |
6,692,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.61 |
% |
|
|
2.70 |
% |
|
|
3.53 |
% |
|
|
NM |
|
|
4.91 |
% |
|
NM |
|
|
NM |
|
|
|
4.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-revenue concentration* |
|
71 |
% |
|
|
4 |
% |
|
|
75 |
% |
|
|
1 |
% |
|
4 |
% |
|
20 |
% |
|
25 |
% |
|
|
100 |
% |
|
|
Three Months Ended September 30, 2023 |
||||||||||||||||||||||||||
|
|
Core Banking |
|
|
Republic Processing Group |
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Core |
|
|
|
Refund |
|
|
Payment |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
(dollars in thousands) |
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
47,493 |
|
|
$ |
2,467 |
|
|
$ |
49,960 |
|
|
$ |
401 |
|
$ |
4,124 |
|
$ |
10,340 |
|
$ |
14,865 |
|
|
$ |
64,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for expected credit loss expense |
|
1,567 |
|
|
|
(203) |
|
|
|
1,364 |
|
|
|
(1,967) |
|
|
— |
|
|
4,333 |
|
|
2,366 |
|
|
|
3,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net refund transfer fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
242 |
|
|
— |
|
|
— |
|
|
242 |
|
|
|
242 |
|
Mortgage banking income |
|
852 |
|
|
|
— |
|
|
|
852 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
852 |
|
Program fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
705 |
|
|
3,336 |
|
|
4,041 |
|
|
|
4,041 |
|
Other noninterest income |
|
9,089 |
|
|
|
11 |
|
|
|
9,100 |
|
|
|
72 |
|
|
10 |
|
|
28 |
|
|
110 |
|
|
|
9,210 |
|
Total noninterest income |
|
9,941 |
|
|
|
11 |
|
|
|
9,952 |
|
|
|
314 |
|
|
715 |
|
|
3,364 |
|
|
4,393 |
|
|
|
14,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
41,500 |
|
|
|
640 |
|
|
|
42,140 |
|
|
|
2,242 |
|
|
874 |
|
|
3,112 |
|
|
6,228 |
|
|
|
48,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
14,367 |
|
|
|
2,041 |
|
|
|
16,408 |
|
|
|
440 |
|
|
3,965 |
|
|
6,259 |
|
|
10,664 |
|
|
|
27,072 |
|
Income tax expense |
|
2,757 |
|
|
|
456 |
|
|
|
3,213 |
|
|
|
22 |
|
|
874 |
|
|
1,392 |
|
|
2,288 |
|
|
|
5,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11,610 |
|
|
$ |
1,585 |
|
|
$ |
13,195 |
|
|
$ |
418 |
|
$ |
3,091 |
|
$ |
4,867 |
|
$ |
8,376 |
|
|
$ |
21,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end assets |
$ |
5,390,105 |
|
|
$ |
458,542 |
|
|
$ |
5,848,647 |
|
|
$ |
32,747 |
|
$ |
370,986 |
|
$ |
134,095 |
|
$ |
537,828 |
|
|
$ |
6,386,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.52 |
% |
|
|
2.33 |
% |
|
|
3.43 |
% |
|
|
NM |
|
|
4.97 |
% |
|
NM |
|
|
NM |
|
|
|
4.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-revenue concentration* |
|
73 |
% |
|
|
3 |
% |
|
|
76 |
% |
|
|
1 |
% |
|
6 |
% |
|
17 |
% |
|
24 |
% |
|
|
100 |
% |
S-10
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||||||||||
|
|
Core Banking |
|
|
Republic Processing Group |
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Core |
|
|
|
Refund |
|
|
Payment |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
(dollars in thousands) |
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
149,197 |
|
|
$ |
8,751 |
|
|
$ |
157,948 |
|
|
$ |
32,173 |
|
$ |
9,221 |
|
$ |
37,418 |
|
$ |
78,812 |
|
|
$ |
236,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for expected credit loss expense |
|
2,762 |
|
|
|
639 |
|
|
|
3,401 |
|
|
|
22,282 |
|
|
— |
|
|
15,742 |
|
|
38,024 |
|
|
|
41,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net refund transfer fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,213 |
|
|
— |
|
|
— |
|
|
15,213 |
|
|
|
15,213 |
|
Mortgage banking income |
|
3,984 |
|
|
|
— |
|
|
|
3,984 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
3,984 |
|
Program fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2,319 |
|
|
11,220 |
|
|
13,539 |
|
|
|
13,539 |
|
Other noninterest income |
|
25,437 |
|
|
|
42 |
|
|
|
25,479 |
|
|
|
165 |
|
|
149 |
|
|
3 |
|
|
317 |
|
|
|
25,796 |
|
Total noninterest income |
|
29,421 |
|
|
|
42 |
|
|
|
29,463 |
|
|
|
15,378 |
|
|
2,468 |
|
|
11,223 |
|
|
29,069 |
|
|
|
58,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
124,372 |
|
|
|
2,694 |
|
|
|
127,066 |
|
|
|
8,787 |
|
|
2,919 |
|
|
10,442 |
|
|
22,148 |
|
|
|
149,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax expense |
|
51,484 |
|
|
|
5,460 |
|
|
|
56,944 |
|
|
|
16,482 |
|
|
8,770 |
|
|
22,457 |
|
|
47,709 |
|
|
|
104,653 |
|
Income tax expense (benefit) |
|
10,417 |
|
|
|
1,231 |
|
|
|
11,648 |
|
|
|
3,699 |
|
|
1,930 |
|
|
5,021 |
|
|
10,650 |
|
|
|
22,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
41,067 |
|
|
$ |
4,229 |
|
|
$ |
45,296 |
|
|
$ |
12,783 |
|
$ |
6,840 |
|
$ |
17,436 |
|
$ |
37,059 |
|
|
$ |
82,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end assets |
$ |
5,559,357 |
|
|
$ |
595,624 |
|
|
$ |
6,154,981 |
|
|
$ |
26,503 |
|
$ |
367,857 |
|
$ |
143,129 |
|
$ |
537,489 |
|
|
$ |
6,692,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.49 |
% |
|
|
2.64 |
% |
|
|
3.43 |
% |
|
|
NM |
|
|
5.01 |
% |
|
NM |
|
|
NM |
|
|
|
4.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-revenue concentration* |
|
61 |
% |
|
|
3 |
% |
|
|
64 |
% |
|
|
16 |
% |
|
4 |
% |
|
16 |
% |
|
36 |
% |
|
|
100 |
% |
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||||||||||
|
|
Core Banking |
|
|
Republic Processing Group |
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
Tax |
|
|
Republic |
|
|
Republic |
|
|
|
|
|
|
|
|
|
|
Traditional |
|
|
|
Warehouse |
|
|
|
Core |
|
|
|
Refund |
|
|
Payment |
|
|
Credit |
|
|
Total |
|
|
|
Total |
|
(dollars in thousands) |
|
Banking |
|
|
|
Lending |
|
|
|
Banking |
|
|
|
Solutions |
|
|
Solutions |
|
|
Solutions |
|
|
RPG |
|
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
146,404 |
|
|
$ |
7,196 |
|
|
$ |
153,600 |
|
|
$ |
28,778 |
|
$ |
11,522 |
|
$ |
28,096 |
|
$ |
68,396 |
|
|
$ |
221,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for expected credit loss expense |
|
6,411 |
|
|
|
134 |
|
|
|
6,545 |
|
|
|
19,622 |
|
|
— |
|
|
10,468 |
|
|
30,090 |
|
|
|
36,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net refund transfer fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,528 |
|
|
— |
|
|
— |
|
|
15,528 |
|
|
|
15,528 |
|
Mortgage banking income |
|
2,559 |
|
|
|
— |
|
|
|
2,559 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
2,559 |
|
Program fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2,140 |
|
|
8,881 |
|
|
11,021 |
|
|
|
11,021 |
|
Death benefits in excess of cash surrender value of life insurance |
|
1,728 |
|
|
|
— |
|
|
|
1,728 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,728 |
|
Other noninterest income |
|
25,389 |
|
|
|
33 |
|
|
|
25,422 |
|
|
|
314 |
|
|
12 |
|
|
93 |
|
|
419 |
|
|
|
25,841 |
|
Total noninterest income |
|
29,676 |
|
|
|
33 |
|
|
|
29,709 |
|
|
|
15,842 |
|
|
2,152 |
|
|
8,974 |
|
|
26,968 |
|
|
|
56,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
129,381 |
|
|
|
2,616 |
|
|
|
131,997 |
|
|
|
9,184 |
|
|
2,723 |
|
|
8,440 |
|
|
20,347 |
|
|
|
152,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense |
|
40,288 |
|
|
|
4,479 |
|
|
|
44,767 |
|
|
|
15,814 |
|
|
10,951 |
|
|
18,162 |
|
|
44,927 |
|
|
|
89,694 |
|
Income tax expense |
|
8,119 |
|
|
|
1,001 |
|
|
|
9,120 |
|
|
|
3,401 |
|
|
2,427 |
|
|
4,031 |
|
|
9,859 |
|
|
|
18,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
32,169 |
|
|
$ |
3,478 |
|
|
$ |
35,647 |
|
|
$ |
12,413 |
|
$ |
8,524 |
|
$ |
14,131 |
|
$ |
35,068 |
|
|
$ |
70,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end assets |
$ |
5,390,105 |
|
|
$ |
458,542 |
|
|
$ |
5,848,647 |
|
|
$ |
32,747 |
|
$ |
370,986 |
|
$ |
134,095 |
|
$ |
537,828 |
|
|
$ |
6,386,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.78 |
% |
|
|
2.37 |
% |
|
|
3.68 |
% |
|
|
NM |
|
|
4.43 |
% |
|
NM |
|
|
NM |
|
|
|
5.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net-revenue concentration* |
|
63 |
% |
|
|
3 |
% |
|
|
66 |
% |
|
|
16 |
% |
|
5 |
% |
|
13 |
% |
|
34 |
% |
|
|
100 |
% |
S-11
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Third quarter 2024 (continued)
(1) | The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The following table presents the Company’s loan fees by segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|||||||||||||||||
(dollars in thousands) |
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional Banking |
|
$ |
1,518 |
|
$ |
1,281 |
|
$ |
1,366 |
|
$ |
1,400 |
|
$ |
1,703 |
|
|
$ |
4,165 |
|
$ |
3,957 |
Warehouse Lending |
|
|
392 |
|
|
322 |
|
|
263 |
|
|
235 |
|
|
254 |
|
|
|
977 |
|
|
796 |
Total Core Bank |
|
|
1,910 |
|
|
1,603 |
|
|
1,629 |
|
|
1,635 |
|
|
1,957 |
|
|
|
5,142 |
|
|
4,753 |
TRS - Refund Advances |
|
|
42 |
|
|
741 |
|
|
34,652 |
|
|
7 |
|
|
25 |
|
|
|
35,435 |
|
|
31,470 |
TRS - Other Loan Fees |
|
|
— |
|
|
15 |
|
|
1,219 |
|
|
1,089 |
|
|
6 |
|
|
|
1,234 |
|
|
963 |
RCS |
|
|
12,935 |
|
|
11,272 |
|
|
11,372 |
|
|
10,514 |
|
|
9,763 |
|
|
|
35,579 |
|
|
26,141 |
Total RPG |
|
|
12,977 |
|
|
12,028 |
|
|
47,243 |
|
|
11,610 |
|
|
9,794 |
|
|
|
72,248 |
|
|
58,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan fees - Total Company |
|
$ |
14,887 |
|
$ |
13,631 |
|
$ |
48,872 |
|
$ |
13,245 |
|
$ |
11,751 |
|
|
$ |
77,390 |
|
$ |
63,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) | Provision for expected credit loss expense includes provisions for losses on on-balance sheet loans and investment securities. Provision expense for off-balance sheet credit exposures is a component of “Other” noninterest expense. |
(3) | In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Traditional Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Gains on sale of mortgage loans are recorded as a component of Mortgage Banking income. Gains on sale of consumer loans are recorded as a component of Program Fees. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
|
As of and for the Nine Months Ended |
|||||||||||||||||
(dollars in thousands) |
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
Sep. 30, 2023 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
9,703 |
|
$ |
80,884 |
|
$ |
3,227 |
|
$ |
2,711 |
|
$ |
4,038 |
|
|
$ |
3,227 |
|
$ |
1,302 |
Originations |
|
|
57,142 |
|
|
53,703 |
|
|
27,046 |
|
|
24,050 |
|
|
23,860 |
|
|
|
137,891 |
|
|
53,750 |
Transferred from held for investment to held for sale |
|
|
— |
|
|
(2,288) |
|
|
69,464 |
|
|
— |
|
|
— |
|
|
|
67,176 |
|
|
— |
Proceeds from sales |
|
|
(59,732) |
|
|
(123,693) |
|
|
(18,773) |
|
|
(24,134) |
|
|
(25,681) |
|
|
|
(202,198) |
|
|
(53,794) |
Fair value adjustment for correspondent loans reclassified to held for sale |
|
|
— |
|
|
— |
|
|
(997) |
|
|
— |
|
|
— |
|
|
|
(997) |
|
|
— |
Net gain on sale |
|
|
1,413 |
|
|
1,097 |
|
|
917 |
|
|
600 |
|
|
494 |
|
|
|
3,427 |
|
|
1,453 |
Balance, end of period |
|
$ |
8,526 |
|
$ |
9,703 |
|
$ |
80,884 |
|
$ |
3,227 |
|
$ |
2,711 |
|
|
$ |
8,526 |
|
$ |
2,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RCS Consumer Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
32,201 |
|
$ |
19,176 |
|
$ |
24,008 |
|
$ |
21,972 |
|
$ |
21,544 |
|
|
$ |
24,008 |
|
$ |
17,875 |
Originations |
|
|
350,413 |
|
|
402,141 |
|
|
188,347 |
|
|
300,281 |
|
|
287,088 |
|
|
|
940,901 |
|
|
756,714 |
Proceeds from sales |
|
|
(360,910) |
|
|
(392,755) |
|
|
(196,584) |
|
|
(302,118) |
|
|
(289,997) |
|
|
|
(950,249) |
|
|
(761,497) |
Net gain on sale |
|
|
4,177 |
|
|
3,639 |
|
|
3,405 |
|
|
3,873 |
|
|
3,337 |
|
|
|
11,221 |
|
|
8,880 |
Balance, end of period |
|
$ |
25,881 |
|
$ |
32,201 |
|
$ |
19,176 |
|
$ |
24,008 |
|
$ |
21,972 |
|
|
$ |
25,881 |
|
$ |
21,972 |
S-12
(4) | The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity, 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. |
|
|
As of |
||||||||||||||||||
(dollars in thousands, except per share data) |
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity - GAAP (a) |
|
$ |
979,705 |
|
|
$ |
955,423 |
|
|
$ |
935,583 |
|
|
$ |
912,756 |
|
|
$ |
893,400 |
|
Less: Goodwill |
|
|
40,516 |
|
|
|
40,516 |
|
|
|
40,516 |
|
|
|
40,516 |
|
|
|
40,516 |
|
Less: Mortgage servicing rights |
|
|
7,052 |
|
|
|
7,030 |
|
|
|
7,102 |
|
|
|
7,411 |
|
|
|
7,710 |
|
Less: Core deposit intangible |
|
|
2,072 |
|
|
|
2,187 |
|
|
|
2,302 |
|
|
|
2,439 |
|
|
|
2,576 |
|
Tangible stockholders' equity - Non-GAAP (c) |
|
$ |
930,065 |
|
|
$ |
905,690 |
|
|
$ |
885,663 |
|
|
$ |
862,390 |
|
|
$ |
842,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets - GAAP (b) |
|
$ |
6,692,470 |
|
|
$ |
6,616,574 |
|
|
$ |
6,875,592 |
|
|
$ |
6,594,891 |
|
|
$ |
6,386,475 |
|
Less: Goodwill |
|
|
40,516 |
|
|
|
40,516 |
|
|
|
40,516 |
|
|
|
40,516 |
|
|
|
40,516 |
|
Less: Mortgage servicing rights |
|
|
7,052 |
|
|
|
7,030 |
|
|
|
7,102 |
|
|
|
7,411 |
|
|
|
7,710 |
|
Less: Core deposit intangible |
|
|
2,072 |
|
|
|
2,187 |
|
|
|
2,302 |
|
|
|
2,439 |
|
|
|
2,576 |
|
Tangible assets - Non-GAAP (d) |
|
$ |
6,642,830 |
|
|
$ |
6,566,841 |
|
|
$ |
6,825,672 |
|
|
$ |
6,544,525 |
|
|
$ |
6,335,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets - GAAP (a/b) |
|
|
14.64 |
% |
|
|
14.44 |
% |
|
|
13.61 |
% |
|
|
13.84 |
% |
|
|
13.99 |
% |
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d) |
|
|
14.00 |
% |
|
|
13.79 |
% |
|
|
12.98 |
% |
|
|
13.18 |
% |
|
|
13.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares outstanding (e) |
|
|
19,443 |
|
|
|
19,425 |
|
|
|
19,411 |
|
|
|
19,358 |
|
|
|
19,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share - GAAP (a/e) |
|
$ |
50.39 |
|
|
$ |
49.19 |
|
|
$ |
48.20 |
|
|
$ |
47.15 |
|
|
$ |
45.93 |
|
Tangible book value per share - Non-GAAP (c/e) |
|
|
47.84 |
|
|
|
46.62 |
|
|
|
45.63 |
|
|
|
44.55 |
|
|
|
43.31 |
|
(5) | The efficiency ratio, a non-GAAP measure with no GAAP comparable, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes material nonrecurring revenues and expenses related to the CBank merger, the BOLI benefit payment received, as well as net gains (losses) on sales, calls, and impairment of investment securities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||||||||||||||||
(dollars in thousands) |
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Sep. 30, 2023 |
|
|
Sep. 30, 2024 |
|
|
Sep. 30, 2023 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income - GAAP |
|
$ |
71,305 |
|
|
$ |
68,536 |
|
|
$ |
96,919 |
|
|
$ |
66,782 |
|
|
$ |
64,825 |
|
|
|
$ |
236,760 |
|
|
$ |
221,996 |
|
Noninterest income - GAAP |
|
|
16,813 |
|
|
|
18,346 |
|
|
|
23,373 |
|
|
|
14,780 |
|
|
|
14,345 |
|
|
|
|
58,532 |
|
|
|
56,677 |
|
Less: BOLI benefit payment received |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
1,728 |
|
Less: Net gain (loss) on securities |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
6 |
|
|
|
2 |
|
|
|
|
2 |
|
|
|
6 |
|
Total adjusted income - Non-GAAP (a) |
|
$ |
88,117 |
|
|
$ |
86,881 |
|
|
$ |
120,292 |
|
|
$ |
81,556 |
|
|
$ |
79,168 |
|
|
|
$ |
295,290 |
|
|
$ |
278,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense - GAAP |
|
$ |
48,609 |
|
|
$ |
49,634 |
|
|
$ |
50,971 |
|
|
$ |
47,054 |
|
|
$ |
48,368 |
|
|
|
$ |
149,214 |
|
|
$ |
152,344 |
|
Less: Merger expenses related to CBank acquisition |
|
|
— |
|
|
|
— |
|
|
|
41 |
|
|
|
92 |
|
|
|
(132) |
|
|
|
|
41 |
|
|
|
2,068 |
|
Adjusted noninterest expense - Non-GAAP (b) |
|
$ |
48,609 |
|
|
$ |
49,634 |
|
|
$ |
50,930 |
|
|
$ |
46,962 |
|
|
$ |
48,500 |
|
|
|
$ |
149,173 |
|
|
$ |
150,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio - Non-GAAP (b/a) |
|
|
55 |
% |
|
|
57 |
% |
|
|
42 |
% |
|
|
58 |
% |
|
|
61 |
% |
|
|
|
51 |
% |
|
|
54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) | 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. |
(7) | FTEs – Full-time-equivalent employees. |
(8) | Quarter (“Q”) to Quarter changes compare the most recent quarter or quarter end to the same quarter or quarter end of a year prior. Year-to-date changes compare the most recent period or period end to the same period or period end of a year prior. Year-to-date changes are expressed as either 3M to 3M (three months), 6M to 6M (six months), 9M to 9M (nine months), or 12M to 12M (twelve months). |
(9) | 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. Delinquent loans as of September 30, 2024, included $0 of Refund Advances (“RA”), which do not have a contractual due date, but the Company considered an RA delinquent in 2024 if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. |
NM – Not meaningful
NA – Not applicable
YTD – Year to date
S-13
CONTACT:
Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President & Chief Financial Officer
(502) 560-8628
S-14