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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Republic Bancorp Inc | NASDAQ:RBCAA | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.71 | -1.14% | 61.39 | 60.31 | 62.69 | 64.35 | 60.86 | 63.76 | 26,208 | 21:02:15 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer Identification No.) |
of incorporation) |
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Registrant’s telephone number, including area code: (
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):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered |
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 July 19, 2024, Republic Bancorp, Inc. announced its results of operations for the quarter ended June 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. | |||
Exhibit No. | ||||
Republic Bancorp, Inc. Earnings Release dated July 19, 2024. | ||||
Earnings Release Financial Supplement – Second Quarter 2024. | ||||
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.
Republic Bancorp, Inc. | ||
(Registrant) | ||
Date: July 19, 2024 | By: | /s/ Kevin Sipes |
Executive Vice President, Chief Financial Officer & Chief Accounting Officer |
2
Exhibit 99.1
Republic Bancorp, Inc. Reports Second Quarter 2024 Net Income of $25.2 Million
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 second quarter 2024 net income and Diluted Earnings per Class A Common Share (“Diluted EPS”) of $25.2 million and $1.30 per share, representing increases of 20% and 22% over the second quarter of 2023.
Logan Pichel, President & CEO of the Republic Bank & Trust Company commented, “We are very pleased with our strong performance in the second quarter, which reflects our continued focus on providing best-in-class service to our clients, the on-going success of our diversified business model, and growing our core banking franchise, while also prudently and effectively managing our risks and expenses,” said Logan Pichel, President and CEO of Republic Bank. “Perhaps as much as anything, I am most proud that we reached an industry strong Net Promoter Score (“NPS”) of 67.2 during the second quarter versus an industry average of 23.9. Our strong NPS Score further affirms our passion for delivering exceptional customer experiences across all channels and all parts of the Bank.
We also had another positive quarter in moderating our operating costs as our Total Company noninterest expenses declined nearly 4% from the second quarter of 2023 to the second quarter of 2024. We are reporting this reduction in our noninterest expenses despite recent investments we’ve made in new banking centers, the hiring of new talent, and the on-going enhancement of our technology and digital capabilities. We are very proud of the progress we’ve made in our efficiency gains and look forward to building on this progress in the future.
Some of our additional highlights for the second quarter of 2024 include:
1) | Core Bank asset quality remained excellent, with net charge-offs to average loans of only 0.02% for the quarter and nonperforming loans to total loans of 0.39% as of June 30, 2024. |
2) | We completed the sale of $67 million of lower-yielding mortgage loans during the quarter. We executed this sale as we see opportunities to increase our future earnings through recycling the proceeds from this transaction into other higher yielding loan opportunities. |
3) | Our Traditional Bank loan portfolio grew by $16 million during the second quarter. As expected, our new loan production at the Traditional Bank has been slower during the first six months of 2024 compared to previous periods as we continued to exercise strong pricing discipline for new loan opportunities. While this pricing discipline contributed to the rising yields for the Traditional Bank’s overall loan portfolio, it also reduced the Traditional Bank’s new loan volume, and as a result, the overall opportunity for growth in the Traditional Bank’s loan portfolio since year-end. While this strategy will likely make growing the Traditional Bank’s overall loan portfolio more difficult in the near term, we will continue to make pricing decisions with the long-term future of the Company in mind. |
4) | To take advantage of the currently inverted yield curve and lower our overall borrowing costs during the second quarter of 2024, we borrowed $100 million from the Federal Home Loan Bank (“FHLB”) on a five-year basis. As a result of this strategy, the Company was able to lock in an annualized cost of 4.42% for these borrowings over the five-year term compared to an annualized cost of 5.55% for overnight borrowings. |
As it relates to our diversification of revenue streams, our Republic Processing Group (“RPG) continued to produce positive results during the second quarter of 2024. While Republic Payment Solutions (“RPS”) was
down slightly for the quarter due to a revenue share arrangement implemented during the first quarter of 2024, both Republic Credit Solutions (“RCS”) and Tax Refund Solutions (“TRS”) had solid increases in net income contributing to a 14% increase in net income for RPG, in total, for the second quarter of 2024 compared to the second quarter of 2023.
As we look ahead to the second half of 2024, achieving moderately priced deposit growth will remain a major focus. With our superior customer service, competitive products, convenient locations, and solid digital capabilities, we believe we are well-armed to effectively and efficiently grow our loyal customer base. I am optimistic about our future and the potential for us to create long-term value for our shareholders, our clients, our associates, and the communities we serve,” Pichel concluded.
2
The following table highlights Republic’s key metrics for the three months ended June 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 July 19, 2024.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | Total Company Financial Performance Highlights | | |||||||||||||||||||||||||||||||||||||
| | | Three Months Ended Jun. 30, | | | | | Six Months Ended Jun. 30, | | | | |||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |
| 2024 | | 2023 | | $ Change | | % Change |
|
| 2024 | | 2023 | | $ Change | | % Change |
| |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
Income Before Income Tax Expense | | | $ | 32,105 | | | $ | 26,508 | | | $ | 5,597 | | 21 | % | | | $ | 70,804 | | | $ | 62,622 | | | $ | 8,182 | | 13 | % | | |||||||||
Net Income | | | | 25,206 | | | | 21,052 | | | | 4,154 | | 20 | | | | | 55,812 | | | | 49,144 | | | | 6,668 | | 14 | | | |||||||||
Diluted EPS | | | | 1.30 | | | | 1.07 | | | | 0.23 | | 22 | | | | | 2.87 | | | | 2.50 | | | | 0.37 | | 15 | | | |||||||||
Return on Average Assets ("ROA") | | | | 1.50 | % | | | 1.37 | % | | | NA | | 10 | | | | | 1.61 | % | | | 1.60 | % | | | NA | | 1 | | | |||||||||
Return on Average Equity ("ROE") | | | | 10.57 | | | | 9.41 | | | | NA | | 12 | | | | | 11.90 | | | | 11.14 | | | | NA | | 7 | | | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NA – Not applicable
Results of Operations for the Second Quarter of 2024 Compared to the Second Quarter of 2023
Net income for the Core Bank was $15.0 million for the second quarter of 2024, a $2.9 million, or 24%, increase over the $12.1 million for the second quarter of 2023. Favorable variances across net interest income, Provision, and noninterest expenses, were all drivers for the increase in net income from the second quarter of 2023 to the second quarter of 2024.
Net Interest Income – Core Bank net interest income was $52.8 million for the second quarter of 2024, a $1.4 million, or 3%, increase from $51.4 million during the second quarter of 2023 and was driven, in general, by period-over-period growth in average interest-earning assets. The quarter-over-same-quarter-last-year increase in net interest income for the Core Bank reversed a negative trend of two consecutive quarterly declines in net interest income for the fourth quarter of 2023 and the first quarter of 2024.
While net interest income did increase in terms of overall dollars, the Core Bank’s net interest margin (“NIM”) decreased from 3.65% during the second quarter of 2023 to 3.46% during the second quarter of 2024. As with the previous quarters over the past year, the primary driver of the decrease in the net interest margin at the Core Bank was a shift in funding mix away from noninterest-bearing deposit balances into higher-costing, interest-bearing deposits and FHLB borrowings. Overall, the Core Bank’s average noninterest-bearing deposits decreased from $1.5 billion during the second quarter of 2023 to $1.2 billion for the second quarter of 2024. In addition to this change in funding mix, the Core Bank’s cost of interest-bearing liabilities also increased 103 basis points from the second quarter of 2023 to the second quarter of 2024, outpacing the 60-basis-point increase to its yield on interest-earning assets over the same periods.
Additional items of note impacting the Core Bank’s change in net interest income and NIM between the second quarter of 2023 and the second quarter of 2024 were as follows:
● | Average outstanding Warehouse balances decreased from $462 million during the second quarter of 2023 to $457 million for the second quarter of 2024. Committed Warehouse lines declined from $980 million to $957 million during these same periods, while an up-tick in demand caused average usage rates for Warehouse lines to increase from 47% during the second quarter of 2023 to 49% for the second quarter of 2024. |
3
● | Traditional Bank average loans grew from $4.3 billion with a weighted-average yield of 4.98% during the second quarter of 2023 to $4.6 billion with a weighted average yield of 5.57% during the second quarter of 2024. In general, the growth in average loan balances was primarily attributable to loan growth achieved during the last six months of 2023, as the spot balances for Traditional Bank loans decreased $29 million, or 1%, from December 31, 2023 to June 30, 2024. |
● | Average interest-earning cash, which is managed as a separate but complementary component of the Company’s overall investment portfolio, was $393 million with a weighted-average yield of 5.46% during the second quarter of 2024 compared to $115 million with a weighted-average yield of 5.43% for the second quarter of 2023. The increase in average interest-earning cash balances was the continuance of a strategic decision over the past year for additional on-balance sheet liquidity above required minimums in response to the uncertainty of the economic environment. |
● | Average investments were $670 million with a weighted-average yield of 3.09% during the second quarter of 2024 compared to $775 million with a weighted-average yield of 2.73% for the second quarter of 2023. The Core Bank continued to maintain an investment portfolio during the second quarter of 2024 with a short overall duration as part of its interest rate risk management strategy. As a result of this short duration, the Core Bank has approximately $111 million of investment securities as of June 30, 2024 that are scheduled to mature over the remaining six months of 2024 with a weighted-average yield of 3.69%. |
● | Further segmenting the Core Bank’s increased cost of interest-bearing liabilities: |
o | The weighted-average cost of total interest-bearing deposits increased from 1.59% during the second quarter of 2023 to 2.79% for the second quarter of 2024, while average interest-bearing deposits grew $668 million over the same periods. Included within this $668 million of growth in interest-bearing deposits was a $251 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 increased from $256 million for the second quarter of 2023 to $306 million for the second quarter of 2024. Conversely, the weighted-average cost of these borrowings decreased from 4.90% to 4.29% for the same time periods. The increase in the average balance of borrowings was driven, in general, by the above noted growth in period-to-period average loans, while the decrease in the overall weighted-average cost of FHLB borrowings resulted from term-extension strategies to take advantage of the currently inverted yield curve. |
4
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:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Interest Income | | | Net Interest Margin | | ||||||||||||||||
(dollars in thousands) | | | Three Months Ended Jun. 30, | | | | | | Three Months Ended Jun. 30, | | | | | ||||||||||
Reportable Segment | | | 2024 | | | 2023 | | Change | | | 2024 | | 2023 | | Change | | |||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Traditional Banking | | | $ | 49,915 | | | $ | 48,743 | | $ | 1,172 | | | 3.53 | % | | 3.77 | % | | | (0.24) | % | |
Warehouse Lending | | | | 2,914 | | | | 2,642 | | | 272 | | | 2.57 | | | 2.28 | | | | 0.29 | | |
Total Core Bank | | | $ | 52,829 | | | $ | 51,385 | | $ | 1,444 | | | 3.46 | | | 3.65 | | | | (0.19) | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Average Loan Balances | | | Period-End Loan Balances | | ||||||||||||||||||||
(dollars in thousands) | | Three Months Ended Jun. 30, | | | | | | Jun. 30, | | | Jun. 30, | | | | ||||||||||||
Reportable Segment | | | 2024 | | | 2023 | | $ Change | | % Change | | | | 2024 | | | 2023 | | $ Change | | % Change | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Banking | | $ | 4,622,655 | | $ | 4,279,373 | | $ | 343,282 | | 8 | % | | | $ | 4,589,167 | | $ | 4,394,668 | | $ | 194,499 | | 4 | % | |
Warehouse Lending | | | 456,908 | | | 462,755 | | | (5,847) | | (1) | | | | | 549,011 | | | 539,560 | | | 9,451 | | 2 | | |
Total Core Bank | | $ | 5,079,563 | | $ | 4,742,128 | | $ | 337,435 | | 7 | | | | $ | 5,138,178 | | $ | 4,934,228 | | $ | 203,950 | | 4 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
*Includes loans held for sale
NM – Not meaningful
Provision for Expected Credit Loss Expense – The Core Bank’s Provision (2) was a net charge of $1.1 million for the second quarter of 2024 compared to a net charge of $2.1 million for the second quarter of 2023.
The net charge of $1.1 million for the second quarter of 2024 was driven, primarily, by the following:
● | The Core Bank recorded a net charge to the Provision of $681,000 during the second quarter of 2024 substantially related to general formula reserves applied to Traditional Bank loans. While loan balances at the Traditional Bank only slightly increased by $16 million during the second quarter, the segment continued to experience a change in loan mix, growing in categories such as construction and land development, with higher loan loss reserve requirements thus driving its higher Provision for the quarter. |
● | The Core Bank recorded a net charge to the Provision of $214,000 resulting from general formula reserves applied to an $86 million increase in outstanding Warehouse balances during the quarter. |
The net charge of $2.1 million during the second quarter of 2023 was driven, primarily, by the following:
● | The Core Bank recorded a net charge to the Provision of $3.9 million during the second quarter of 2023 substantially related to general formula reserves applied to $229 million of Traditional Bank loan growth for the quarter. |
● | Offsetting the above, the Core Bank recognized a $2.0 million credit to the Provision during the second quarter of 2023 driven primarily by the release of $1.5 million in COVID-related reserves as the federal government declared an official end to the COVID pandemic effective May 2023. |
● | The Core Bank recorded a net charge to the Provision of $202,000 resulting from general formula reserves applied to an $81 million increase in outstanding Warehouse balances during the quarter. |
5
As a percentage of total loans, the Core Bank’s Allowance(2) increased 4 basis points from June 30, 2023 to June 30, 2024. The table below provides a view of the Company’s percentage of Allowance-to-total-loans by reportable segment.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of Jun. 30, 2024 | | | As of Jun. 30, 2023 | | | Year-over-Year Change | | ||||||||||||||||||
(dollars in thousands) | | | | | | | | Allowance | | | | | | | | | Allowance | | | Allowance | | | | ||||
Reportable Segment | | Gross Loans | | Allowance | | to Loans | | | Gross Loans | | Allowance | | to Loans | | | to Loans | | % Change | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Bank | | $ | 4,589,167 | | $ | 59,865 | | 1.30 | % | | | $ | 4,394,668 | | $ | 55,567 | | 1.26 | % | | | 0.04 | % | | 3 | % | |
Warehouse Lending | | | 549,011 | | | 1,370 | | 0.25 | | | | | 539,560 | | | 1,346 | | 0.25 | | | | — | | | — | | |
Total Core Bank | | | 5,138,178 | | | 61,235 | | 1.19 | | | | | 4,934,228 | | | 56,913 | | 1.15 | | | | 0.04 | | | 3 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Refund Solutions | | | 92 | | | — | | — | | | | | 193 | | | — | | — | | | | — | | | — | | |
Republic Credit Solutions | | | 126,000 | | | 19,452 | | 15.44 | | | | | 118,721 | | | 15,289 | | 12.88 | | | | 2.56 | | | 20 | | |
Total Republic Processing Group | | | 126,092 | | | 19,452 | | 15.43 | | | | | 118,914 | | | 15,289 | | 12.86 | | | | 2.57 | | | 20 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Company | | $ | 5,264,270 | | $ | 80,687 | | 1.53 | % | | | $ | 5,053,142 | | $ | 72,202 | | 1.43 | % | | | 0.10 | % | | 7 | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | ACLL Roll-Forward | |||||||||||||||||||||||||||||||
| | Three Months Ended June 30, | |||||||||||||||||||||||||||||||
| | 2024 | | 2023 | |||||||||||||||||||||||||||||
(dollars in thousands) | | Beginning | | | | | Charge- | | | | Ending | | Beginning | | CBank | | | | | Charge- | | | | Ending | |||||||||
Reportable Segment | | Balance | | Provision | | offs | | Recoveries | | Balance | | Balance | | Adjustment* | | Provision | | offs | | Recoveries | | Balance | |||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Bank | | $ | 59,176 | | $ | 921 | | $ | (332) | | $ | 100 | | $ | 59,865 | | $ | 55,216 | | $ | (1,384) | | $ | 1,860 | | $ | (239) | | $ | 114 | | $ | 55,567 |
Warehouse Lending | | | 1,156 | | | 214 | | | — | | | — | | | 1,370 | | | 1,144 | | | — | | | 202 | | | — | | | — | | | 1,346 |
Total Core Bank | | | 60,332 | | | 1,135 | | | (332) | | | 100 | | | 61,235 | | | 56,360 | | | (1,384) | | | 2,062 | | | (239) | | | 114 | | | 56,913 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Refund Solutions | | | 30,069 | | | (1,182) | | | (32,693) | | | 3,806 | | | — | | | 25,981 | | | — | | | (219) | | | (25,950) | | | 188 | | | — |
Republic Credit Solutions | | | 18,301 | | | 5,196 | | | (4,315) | | | 270 | | | 19,452 | | | 13,780 | | | — | | | 4,296 | | | (3,018) | | | 231 | | | 15,289 |
Total Republic Processing Group | | | 48,370 | | | 4,014 | | | (37,008) | | | 4,076 | | | 19,452 | | | 39,761 | | | — | | | 4,077 | | | (28,968) | | | 419 | | | 15,289 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Company | | $ | 108,702 | | $ | 5,149 | | $ | (37,340) | | $ | 4,176 | | $ | 80,687 | | $ | 96,121 | | $ | (1,384) | | $ | 6,139 | | $ | (29,207) | | $ | 533 | | $ | 72,202 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
* The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans.
The table below presents the Core Bank’s credit quality metrics:
| | | | | | | | | | |
| Quarters Ended: | Years Ended: | ||||||||
| Jun. 30, | | Jun. 30, | | Dec. 31, | Dec. 31, | Dec. 31, | |||
Core Banking Credit Quality Ratios | 2024 | | 2023 | | 2023 | 2022 | 2021 | |||
| | | | | | | | | | |
Nonperforming loans to total loans | 0.39 | % | 0.34 | % | 0.39 | % | 0.37 | % | 0.47 | % |
| | | | | | | | | | |
Nonperforming assets to total loans (including OREO) | 0.41 | | 0.37 | | 0.41 | | 0.40 | | 0.51 | |
| | | | | | | | | | |
Delinquent loans* to total loans | 0.18 | | 0.12 | | 0.16 | | 0.14 | | 0.17 | |
| | | | | | | | | | |
Net charge-offs to average loans | 0.02 | | 0.01 | | 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 decreased $1.2 million from the second quarter of 2023 to $10.1 million for the second quarter of 2024. The decrease in noninterest income was driven by a $1.7 payment received in June 2023 in the “other” category related to the payout of Bank Owned Life Insurance (“BOLI”). Partially offsetting the decline in noninterest income related to BOLI, mortgage banking income increased $705,000 driven by an up-tick in consumer demand for home purchases.
Noninterest Expense – The Core Bank’s noninterest expenses were $42.6 million for the second quarter of 2024 compared to $45.5 million for the second quarter of 2023, a decrease of $2.8 million, or 6% for the quarter. The primary driver for the lower noninterest expenses for the second quarter of 2024 was lower salaries and associated estimated incentive compensation accruals, which decreased $1.9 million, or 7%, compared to the second quarter of 2023. This overall decline was driven primarily by a 42-count reduction in the number of Core Bank FTEs from June 30, 2023 to June 30, 2024.
6
Republic Processing Group(3)
RPG reported net income of $10.2 million for the second quarter of 2024, a $1.3 million, or 14% increase over the $8.9 million for the second quarter of 2023. RPG’s performance for the second quarter of 2024 compared to the second quarter of 2023, by operating segment, was as follows:
Tax Refund Solutions
TRS recorded net income of $3.1 million during the second quarter of 2024 compared to net income of $2.2 million for the second quarter of 2023. The overall increase in TRS net income for the quarter was driven primarily by a $963,000 decrease in Provision, as net charge-offs for Refund Advances (“RAs”) during the quarter were favorably lower than the Company’s preliminary estimated loan loss reserves as of March 31, 2024. In addition, the Company also received a $560,000 payment during the second quarter of 2024 representing a Tax Provider yield enhancement for the RA program to help offset the Company’s higher funding costs. This yield enhancement was new for the 2024 tax season.
Republic Payment Solutions
Net income at RPS was $2.1 million for the second quarter of 2024, a $759,000 decrease from the second quarter of 2023. While RPS earned a higher yield of 5.03% applied to the $360 million average of prepaid program balances for the second quarter of 2024 compared to a yield of 4.52% for the $364 million in average prepaid card balances for the second quarter of 2023, the higher yield was substantially offset by a $1.3 million charge to interest expense for a revenue sharing arrangement that was new for 2024.
Republic Credit Solutions
Net income at RCS increased $1.1 million, or 29% from $3.9 million for the second quarter of 2023 to $5.0 million for the second 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 $938,000 from the second quarter of 2023 to the second 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 $8.8 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 June 30, 2024, had approximately $6.6 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. ®
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.
7
(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
8
Exhibit 99.2
EARNINGS RELEASE FINANCIAL SUPPLEMENT
SECOND QUARTER 2024
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S-1
Second quarter 2024
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)
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Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of | | | $ Change | | | | $ Change | | |||||||||||||||
| | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | From Dec. 31,2023 | | | | From Jun. 30, 2023 | | |||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 400,059 | | $ | 546,363 | | $ | 316,567 | | $ | 219,653 | | $ | 241,967 | | | $ | 83,492 | | | | $ | 158,092 | |
Investment securities, net of allowance for credit losses | | | 557,459 | | | 664,294 | | | 667,874 | | | 703,007 | | | 706,238 | | | | (110,415) | | | | | (148,779) | |
Loans held for sale | | | 41,904 | | | 100,060 | | | 27,235 | | | 24,683 | | | 25,582 | | | | 14,669 | | | | | 16,322 | |
Loans | | | 5,264,270 | | | 5,224,292 | | | 5,239,861 | | | 5,081,099 | | | 5,053,142 | | | | 24,409 | | | | | 211,128 | |
Allowance for credit losses | | | (80,687) | | | (108,702) | | | (82,130) | | | (74,576) | | | (72,202) | | | | 1,443 | | | | | (8,485) | |
Loans, net | | | 5,183,583 | | | 5,115,590 | | | 5,157,731 | | | 5,006,523 | | | 4,980,940 | | | | 25,852 | | | | | 202,643 | |
Federal Home Loan Bank stock, at cost | | | 23,840 | | | 43,729 | | | 23,770 | | | 31,420 | | | 29,395 | | | | 70 | | | | | (5,555) | |
Premises and equipment, net | | | 33,224 | | | 33,557 | | | 33,411 | | | 33,926 | | | 33,840 | | | | (187) | | | | | (616) | |
Right-of-use assets | | | 31,720 | | | 33,210 | | | 34,691 | | | 35,907 | | | 34,939 | | | | (2,971) | | | | | (3,219) | |
Goodwill | | | 40,516 | | | 40,516 | | | 40,516 | | | 40,516 | | | 40,516 | | | | — | | | | | — | |
Other real estate owned ("OREO") | | | 1,265 | | | 1,486 | | | 1,370 | | | 1,423 | | | 1,478 | | | | (105) | | | | | (213) | |
Bank owned life insurance ("BOLI") | | | 105,462 | | | 104,670 | | | 103,916 | | | 103,211 | | | 102,521 | | | | 1,546 | | | | | 2,941 | |
Other assets and accrued interest receivable | | | 197,542 | | | 192,117 | | | 187,810 | | | 186,206 | | | 172,363 | | | | 9,732 | | | | | 25,179 | |
Total assets | | $ | 6,616,574 | | $ | 6,875,592 | | $ | 6,594,891 | | $ | 6,386,475 | | $ | 6,369,779 | | | $ | 21,683 | | | | $ | 246,795 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | $ | 1,279,390 | | $ | 1,359,516 | | $ | 1,676,998 | | $ | 1,702,979 | | $ | 1,854,907 | | | $ | (397,608) | | | | $ | (575,517) | |
Interest-bearing | | | 3,789,657 | | | 4,061,133 | | | 3,376,165 | | | 3,090,603 | | | 2,874,374 | | | | 413,492 | | | | | 915,283 | |
Total deposits | | | 5,069,047 | | | 5,420,649 | | | 5,053,163 | | | 4,793,582 | | | 4,729,281 | | | | 15,884 | | | | | 339,766 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Securities sold under agreements to | | | | | | | | | | | | | | | | | | | | | | | | | |
repurchase ("SSUAR") and other short-term borrowings | | | 72,598 | | | 84,522 | | | 97,618 | | | 80,797 | | | 92,093 | | | | (25,020) | | | | | (19,495) | |
Operating lease liabilities | | | 32,602 | | | 34,076 | | | 35,539 | | | 36,726 | | | 35,721 | | | | (2,937) | | | | | (3,119) | |
Federal Home Loan Bank advances | | | 370,000 | | | 270,000 | | | 380,000 | | | 465,000 | | | 520,000 | | | | (10,000) | | | | | (150,000) | |
Other liabilities and accrued interest payable | | | 116,904 | | | 130,762 | | | 115,815 | | | 116,970 | | | 105,713 | | | | 1,089 | | | | | 11,191 | |
Total liabilities | | | 5,661,151 | | | 5,940,009 | | | 5,682,135 | | | 5,493,075 | | | 5,482,808 | | | | (20,984) | | | | | 178,343 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders' equity | | | 955,423 | | | 935,583 | | | 912,756 | | | 893,400 | | | 886,971 | | | | 42,667 | | | | | 68,452 | |
Total liabilities and stockholders' equity | | $ | 6,616,574 | | $ | 6,875,592 | | $ | 6,594,891 | | $ | 6,386,475 | | $ | 6,369,779 | | | $ | 21,683 | | | | $ | 246,795 | |
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S-2
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second 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)
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| | Three Months Ended | | | Six Months Ended | | | $ Change (8) | | ||||||||||||||||||
| | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | Jun. 30, 2024 | | Jun. 30, 2023 | | | 6M to 6M | | ||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal funds sold and other interest-earning deposits | | $ | 393,095 | | $ | 454,426 | | $ | 201,206 | | $ | 177,003 | | $ | 114,368 | | | $ | 423,761 | | $ | 177,439 | | | $ | 246,322 | |
Investment securities, including FHLB stock | | | 670,114 | | | 732,678 | | | 769,016 | | | 771,453 | | | 774,829 | | | | 701,396 | | | 774,006 | | | | (72,610) | |
Loans, including loans held for sale | | | 5,262,719 | | | 5,454,344 | | | 5,111,263 | | | 5,006,081 | | | 4,904,167 | | | | 5,358,531 | | | 4,785,513 | | | | 573,018 | |
Total interest-earning assets | | | 6,325,928 | | | 6,641,448 | | | 6,081,485 | | | 5,954,537 | | | 5,793,364 | | | | 6,483,688 | | | 5,736,958 | | | | 746,730 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses | | | (108,194) | | | (96,446) | | | (75,747) | | | (73,438) | | | (96,720) | | | | (102,320) | | | (89,995) | | | | (12,325) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-earning cash and cash equivalents | | | 102,712 | | | 280,618 | | | 101,119 | | | 96,303 | | | 113,865 | | | | 191,665 | | | 204,382 | | | | (12,717) | |
Premises and equipment, net | | | 33,452 | | | 33,889 | | | 33,940 | | | 34,013 | | | 33,967 | | | | 33,671 | | | 33,104 | | | | 567 | |
Bank owned life insurance | | | 105,128 | | | 104,305 | | | 103,557 | | | 102,825 | | | 102,599 | | | | 104,716 | | | 102,303 | | | | 2,413 | |
Other assets | | | 247,858 | | | 255,758 | | | 231,207 | | | 220,595 | | | 210,350 | | | | 251,809 | | | 198,327 | | | | 53,482 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 6,706,884 | | $ | 7,219,572 | | $ | 6,475,561 | | $ | 6,334,835 | | $ | 6,157,425 | | | $ | 6,963,229 | | $ | 6,185,079 | | | $ | 778,150 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 3,848,238 | | $ | 4,004,846 | | $ | 3,210,495 | | $ | 2,976,852 | | $ | 2,828,733 | | | $ | 3,926,542 | | $ | 2,746,373 | | | $ | 1,180,169 | |
SSUARs and other short-term borrowings | | | 88,326 | | | 102,592 | | | 141,861 | | | 90,063 | | | 117,852 | | | | 95,459 | | | 160,146 | | | | (64,687) | |
Federal Home Loan Bank advances | | | 305,604 | | | 536,209 | | | 357,321 | | | 441,543 | | | 256,000 | | | | 420,907 | | | 250,702 | | | | 170,205 | |
Total interest-bearing liabilities | | | 4,242,168 | | | 4,643,647 | | | 3,709,677 | | | 3,508,458 | | | 3,202,585 | | | | 4,442,908 | | | 3,157,221 | | | | 1,285,687 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities and Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | ||||||
Noninterest-bearing deposits | | | 1,366,862 | | | 1,490,048 | | | 1,715,408 | | | 1,794,874 | | | 1,927,486 | | | | 1,428,455 | | | 2,007,877 | | | | (579,422) | |
Other liabilities | | | 144,108 | | | 152,835 | | | 144,194 | | | 133,237 | | | 132,687 | | | | 148,472 | | | 133,002 | | | | 15,470 | |
Stockholders' equity | | | 953,746 | | | 933,042 | | | 906,282 | | | 898,266 | | | 894,667 | | | | 943,394 | | | 886,979 | | | | 56,415 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 6,706,884 | | $ | 7,219,572 | | $ | 6,475,561 | | $ | 6,334,835 | | $ | 6,157,425 | | | $ | 6,963,229 | | $ | 6,185,079 | | | $ | 778,150 | |
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S-3
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second 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 June 30, 2024 | | | | Three Months Ended June 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 | | $ | 393,095 | | $ | 5,334 |
| 5.46 | % |
|
| $ | 114,368 | | $ | 1,558 |
| 5.45 | % | |
Investment securities, including FHLB stock (a) | | | 670,114 | | | 5,144 |
| 3.09 | | | | | 774,829 | | | 5,296 |
| 2.73 | | |
TRS Refund Advance loans (b) | | | 37,103 | | | 742 | | 8.04 | | | | | 28,203 | | | 40 | | 0.57 | | |
RCS LOC products (b) | | | 42,011 | | | 11,272 | | 107.91 | | | | | 32,876 | | | 8,417 | | 102.41 | | |
Other RPG loans (c) (f) | |
| 104,042 | |
| 2,069 |
| 8.00 | | | |
| 100,960 | |
| 1,948 |
| 7.72 | | |
Outstanding Warehouse lines of credit (d) (f) | | | 456,908 | | | 9,064 | | 7.98 | | | | | 462,755 | | | 8,520 | | 7.36 | | |
All other Core Bank loans (e) (f) | |
| 4,622,655 | |
| 64,075 |
| 5.57 | | | |
| 4,279,373 | |
| 53,275 |
| 4.98 | | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | |
| 6,325,928 | |
| 97,700 |
| 6.21 | | | |
| 5,793,364 | |
| 79,054 |
| 5.46 | | |
| | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses | |
| (108,194) | | | | | | | | |
| (96,720) | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | | |
Noninterest-earning cash and cash equivalents | |
| 102,712 | | | | | | | | |
| 113,865 | | | | | | | |
Premises and equipment, net | |
| 33,452 | | | | | | | | |
| 33,967 | | | | | | | |
Bank owned life insurance | |
| 105,128 | | | | | | | | |
| 102,599 | | | | | | | |
Other assets (a) | |
| 247,858 | | | | | | | | |
| 210,350 | | | | | | | |
Total assets | | $ | 6,706,884 | | | | | | | | | $ | 6,157,425 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | |
Transaction accounts | | $ | 1,821,025 | | $ | 6,323 |
| 1.40 | % | | | $ | 1,481,583 | | $ | 2,564 |
| 0.69 | % | |
Money market accounts | |
| 1,120,833 | | | 9,652 |
| 3.46 | | | |
| 836,763 | | | 4,740 |
| 2.27 | | |
Time deposits | |
| 387,150 | | | 3,859 |
| 4.01 | | | |
| 287,102 | | | 1,900 |
| 2.65 | | |
Reciprocal money market and time deposits | | | 334,496 | |
| 3,514 |
| 4.23 | | | |
| 186,707 | |
| 1,550 |
| 3.32 | | |
Brokered deposits | |
| 184,734 | |
| 2,425 |
| 5.28 | | | |
| 36,578 | |
| 462 |
| 5.05 | | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | |
| 3,848,238 | |
| 25,773 |
| 2.69 | | | |
| 2,828,733 | | | 11,216 |
| 1.59 | | |
| | | | | | | | | | | | | | | | | | | | |
SSUARs and other short-term borrowings | |
| 88,326 | | | 132 |
| 0.60 | | | |
| 117,852 | | | 174 |
| 0.59 | | |
Federal Home Loan Bank advances and other long-term borrowings | |
| 305,604 | | | 3,259 |
| 4.29 | | | |
| 256,000 | | | 3,135 |
| 4.90 | | |
| | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | |
| 4,242,168 | |
| 29,164 |
| 2.77 | | | |
| 3,202,585 | | | 14,525 |
| 1.81 | | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing liabilities and Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | |
| 1,366,862 | | | | | | | | |
| 1,927,486 | | | | | | | |
Other liabilities | |
| 144,108 | | | | | | | | |
| 132,687 | | | | | | | |
Stockholders’ equity | |
| 953,746 | | | | | | | | |
| 894,667 | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 6,706,884 | | | | | | | | | $ | 6,157,425 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | $ | 68,536 | | | | | | | | | $ | 64,529 | | | | |
| | | | | | | | | | | | | | | | | | | | |
Net interest spread | | | | | | |
| 3.44 | % | | | | | | | |
| 3.65 | % | |
| | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | |
| 4.36 | % | | | | | | | |
| 4.46 | % | |
| | | | | | | | | | | | | | | | | | | | |
(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 $15,000 and $24,000 for the three months ended June 30, 2024 and 2023. |
(d) | Interest income includes loan fees of $322,000 and $300,000 for the three months ended June 30, 2024 and 2023. |
(e) | Interest income includes loan fees of $1.3 million and $1.4 million for the three months ended June 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
Second 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)
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Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Six Months Ended | | | $ Change (8) |
| ||||||||||||||||||
| | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | Jun. 30, 2024 | | Jun. 30, 2023 | | | 6M to 6M | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest income (1) | | $ | 97,700 | | $ | 130,632 | | $ | 90,785 | | $ | 85,868 | | $ | 79,054 | | | $ | 228,332 | | $ | 179,410 | | | $ | 48,922 | |
Total interest expense | | | 29,164 | | | 33,713 | | | 24,003 | | | 21,043 | | | 14,525 | | | | 62,877 | | | 22,239 | | | | 40,638 | |
Net interest income | | | 68,536 | | | 96,919 | | | 66,782 | | | 64,825 | | | 64,529 | | | | 165,455 | | | 157,171 | | | | 8,284 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision (2) | | | 5,143 | | | 30,622 | | | 10,989 | | | 3,730 | | | 6,139 | | | | 35,765 | | | 32,905 | | | | 2,860 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 3,526 | | | 3,313 | | | 3,470 | | | 3,559 | | | 3,527 | | | | 6,839 | | | 6,826 | | | | 13 | |
Net refund transfer fees | | | 3,811 | | | 10,820 | | | 220 | | | 242 | | | 4,479 | | | | 14,631 | | | 15,286 | | | | (655) | |
Mortgage banking income (3) | | | 1,612 | | | 310 | | | 983 | | | 852 | | | 907 | | | | 1,922 | | | 1,707 | | | | 215 | |
Interchange fee income | | | 3,351 | | | 3,157 | | | 3,305 | | | 3,282 | | | 3,419 | | | | 6,508 | | | 6,470 | | | | 38 | |
Program fees (3) | | | 4,398 | | | 4,179 | | | 4,561 | | | 4,041 | | | 3,739 | | | | 8,577 | | | 6,980 | | | | 1,597 | |
Increase in cash surrender value of BOLI | | | 792 | | | 754 | | | 705 | | | 690 | | | 689 | | | | 1,546 | | | 1,324 | | | | 222 | |
Death benefits in excess of cash surrender value of life insurance | | | — | | | — | | | — | | | — | | | 1,728 | | | | — | | | 1,728 | | | | (1,728) | |
Net losses on OREO | | | (48) | | | (53) | | | (53) | | | (53) | | | (52) | | | | (101) | | | (105) | | | | 4 | |
Other* | | | 904 | | | 893 | | | 1,589 | | | 1,732 | | | 1,215 | | | | 1,797 | | | 2,116 | | | | (319) | |
Total noninterest income* | | | 18,346 | | | 23,373 | | | 14,780 | | | 14,345 | | | 19,651 | | | | 41,719 | | | 42,332 | | | | (613) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 29,143 | | | 29,716 | | | 26,397 | | | 28,747 | | | 30,764 | | | | 58,859 | | | 60,725 | | | | (1,866) | |
Technology, equipment, and communication | | | 7,340 | | | 7,490 | | | 7,648 | | | 7,311 | | | 6,920 | | | | 14,830 | | | 14,148 | | | | 682 | |
Occupancy | | | 3,409 | | | 3,822 | | | 3,467 | | | 3,503 | | | 3,591 | | | | 7,231 | | | 6,997 | | | | 234 | |
Marketing and development | | | 2,705 | | | 1,924 | | | 2,304 | | | 2,055 | | | 2,513 | | | | 4,629 | | | 4,087 | | | | 542 | |
FDIC insurance expense | | | 748 | | | 772 | | | 690 | | | 677 | | | 724 | | | | 1,520 | | | 1,361 | | | | 159 | |
Interchange related expense | | | 1,412 | | | 1,298 | | | 1,536 | | | 1,580 | | | 1,350 | | | | 2,710 | | | 2,849 | | | | (139) | |
Legal and professional fees | | | 770 | | | 1,055 | | | 511 | | | 803 | | | 829 | | | | 1,825 | | | 1,890 | | | | (65) | |
Merger expense | | | — | | | 41 | | | 92 | | | (132) | | | 127 | | | | 41 | | | 2,200 | | | | (2,159) | |
Other (2)* | | | 4,107 | | | 4,853 | | | 4,409 | | | 3,824 | | | 4,715 | | | | 8,960 | | | 9,719 | | | | (759) | |
Total noninterest expense* | | | 49,634 | | | 50,971 | | | 47,054 | | | 48,368 | | | 51,533 | | | | 100,605 | | | 103,976 | | | | (3,371) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax expense | | | 32,105 | | | 38,699 | | | 23,519 | | | 27,072 | | | 26,508 | | | | 70,804 | | | 62,622 | | | | 8,182 | |
Income tax expense | | | 6,899 | | | 8,093 | | | 3,860 | | | 5,501 | | | 5,456 | | | | 14,992 | | | 13,478 | | | | 1,514 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 25,206 | | $ | 30,606 | | $ | 19,659 | | $ | 21,571 | | $ | 21,052 | | | $ | 55,812 | | $ | 49,144 | | | $ | 6,668 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
(*) 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
Second 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 Six Months Ended | | | Change (8) | | |||||||||||||||||||||||||
| | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | | Jun. 30, 2024 | | Jun. 30, 2023 | | | From Jun. 30, 2023 or 6M to 6M | | |||||||||||||||
Per Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | | 19,633 | | | | 19,607 | | | | 19,586 | | | | 19,706 | | | | 19,884 | | | | | 19,626 | | | | 19,909 | | | | | (283) | | |
Diluted weighted average shares outstanding | | | 19,714 | | | | 19,694 | | | | 19,673 | | | | 19,774 | | | | 19,906 | | | | | 19,694 | | | | 19,961 | | | | | (267) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period-end shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common Stock | | | 17,271 | | | | 17,260 | | | | 17,203 | | | | 17,296 | | | | 17,449 | | | | | 17,271 | | | | 17,449 | | | | | (178) | | |
Class B Common Stock | | | 2,151 | | | | 2,151 | | | | 2,155 | | | | 2,157 | | | | 2,157 | | | | | 2,151 | | | | 2,157 | | | | | (6) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share (4) | | $ | 49.19 | | | $ | 48.20 | | | $ | 47.15 | | | $ | 45.93 | | | $ | 45.24 | | | | $ | 49.19 | | | $ | 45.24 | | | | $ | 3.95 | | |
Tangible book value per share (4) | | | 46.63 | | | | 45.63 | | | | 44.55 | | | | 43.31 | | | | 42.63 | | | | | 46.63 | | | | 42.63 | | | | | 4.00 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share ("EPS"): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic EPS - Class A Common Stock | | $ | 1.31 | | | $ | 1.59 | | | $ | 1.01 | | | $ | 1.11 | | | $ | 1.07 | | | | $ | 2.88 | | | $ | 2.50 | | | | $ | 0.38 | | |
Basic EPS - Class B Common Stock | | | 1.18 | | | | 1.44 | | | | 0.93 | | | | 1.01 | | | | 0.98 | | | | | 2.62 | | | | 2.27 | | | | | 0.35 | | |
Diluted EPS - Class A Common Stock | | | 1.30 | | | | 1.58 | | | | 1.01 | | | | 1.10 | | | | 1.07 | | | | | 2.87 | | | | 2.50 | | | | | 0.37 | | |
Diluted EPS - Class B Common Stock | | | 1.18 | | | | 1.43 | | | | 0.92 | | | | 1.01 | | | | 0.98 | | | | | 2.61 | | | | 2.27 | | | | | 0.34 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash dividends declared per Common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Common Stock | | $ | 0.407 | | | $ | 0.407 | | | $ | 0.374 | | | $ | 0.374 | | | $ | 0.374 | | | | $ | 0.814 | | | $ | 0.748 | | | | $ | 0.066 | | |
Class B Common Stock | | | 0.370 | | | | 0.370 | | | | 0.340 | | | | 0.340 | | | | 0.340 | | | | | 0.740 | | | | 0.680 | | | | | 0.060 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.50 | % | | | 1.70 | % | | | 1.21 | % | | | 1.36 | % | | | 1.37 | % | | | | 1.61 | % | | | 1.60 | % | | | | 0.01 | % | |
Return on average equity | | | 10.57 | | | | 13.12 | | | | 8.68 | | | | 9.61 | | | | 9.41 | | | | | 11.90 | | | | 11.14 | | | | | 0.76 | | |
Efficiency ratio (5) | | | 57 | | | | 42 | | | | 58 | | | | 61 | | | | 62 | | | | | 49 | | | | 51 | | | | | (2) | | |
Yield on average interest-earning assets (1) | | | 6.21 | | | | 7.91 | | | | 5.92 | | | | 5.77 | | | | 5.46 | | | | | 7.08 | | | | 6.25 | | | | | 0.83 | | |
Cost of average interest-bearing liabilities | | | 2.77 | | | | 2.92 | | | | 2.57 | | | | 2.40 | | | | 1.81 | | | | | 2.85 | | | | 1.41 | | | | | 1.44 | | |
Cost of average deposits (6) | | | 1.98 | | | | 1.97 | | | | 1.60 | | | | 1.30 | | | | 0.94 | | | | | 1.98 | | | | 0.68 | | | | | 1.30 | | |
Net interest spread (1) | | | 3.44 | | | | 4.99 | | | | 3.35 | | | | 3.37 | | | | 3.65 | | | | | 4.23 | | | | 4.84 | | | | | (0.61) | | |
Net interest margin - Total Company (1) | | | 4.36 | | | | 5.87 | | | | 4.36 | | | | 4.35 | | | | 4.46 | | | | | 5.13 | | | | 5.48 | | | | | (0.35) | | |
Net interest margin - Core Bank | | | 3.46 | | | | 3.30 | | | | 3.40 | | | | 3.43 | | | | 3.65 | | | | | 3.38 | | | | 3.81 | | | | | (0.43) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Information: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
End of period FTEs (7) - Total Company | | | 999 | | | | 1,011 | | | | 1,019 | | | | 1,033 | | | | 1,043 | | | | | 999 | | | | 1,043 | | | | | (44) | | |
End of period FTEs - Core Bank | | | 943 | | | | 952 | | | | 962 | | | | 976 | | | | 985 | | | | | 943 | | | | 985 | | | | | (42) | | |
Number of full-service banking centers | | | 47 | | | | 47 | | | | 47 | | | | 46 | | | | 45 | | | | | 47 | | | | 45 | | | | | 2 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
S-6
Earnings Release Financial Supplement
Second 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 | | | | Change | | | | Change | | |||||||||||||||
|
| Jun. 30, 2024 |
| Mar. 31, 2024 |
| Dec. 31, 2023 |
| Sep. 30, 2023 |
| Jun. 30, 2023 |
| |
| From Dec. 31,2023 |
| | | From Jun. 30, 2023 | | |||||||
Loan Composition | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Banking: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied | | $ | 1,058,139 | | $ | 1,064,071 | | $ | 1,144,684 | | $ | 1,128,745 | | $ | 1,086,751 | | | | $ | (86,545) | | | | $ | (28,612) | |
Nonowner occupied | |
| 331,954 | |
| 342,481 | |
| 345,965 | |
| 344,682 | |
| 350,390 | | | |
| (14,011) | | | |
| (18,436) | |
Commercial real estate | |
| 1,821,798 | |
| 1,800,801 | |
| 1,785,289 | |
| 1,745,187 | |
| 1,727,092 | | | |
| 36,509 | | | |
| 94,706 | |
Construction & land development | |
| 239,615 | |
| 237,998 | |
| 217,338 | |
| 189,756 | |
| 179,479 | | | |
| 22,277 | | | |
| 60,136 | |
Commercial & industrial | |
| 452,815 | |
| 453,971 | |
| 464,078 | |
| 473,790 | |
| 478,759 | | | |
| (11,263) | | | |
| (25,944) | |
Lease financing receivables | |
| 88,529 | |
| 88,272 | |
| 88,591 | |
| 85,242 | |
| 79,804 | | | |
| (62) | | | |
| 8,725 | |
Aircraft | | | 240,275 | | | 246,060 | | | 250,051 | | | 226,947 | | | 208,512 | | | | | (9,776) | | | | | 31,763 | |
Home equity | |
| 325,086 | |
| 309,083 | |
| 295,133 | |
| 275,750 | |
| 255,755 | | | |
| 29,953 | | | |
| 69,331 | |
Consumer: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit cards | |
| 16,547 | |
| 16,858 | |
| 16,654 | |
| 16,950 | |
| 17,134 | | | |
| (107) | | | |
| (587) | |
Overdrafts | |
| 746 | |
| 629 | |
| 694 | |
| 640 | |
| 706 | | | |
| 52 | | | |
| 40 | |
Automobile loans | |
| 1,599 | |
| 2,054 | |
| 2,664 | |
| 3,380 | |
| 4,177 | | | |
| (1,065) | | | |
| (2,578) | |
Other consumer | |
| 12,064 | |
| 11,372 | |
| 7,428 | |
| 5,674 | |
| 6,109 | | | |
| 4,636 | | | |
| 5,955 | |
Total Traditional Banking | | | 4,589,167 | | | 4,573,650 | | | 4,618,569 | | | 4,496,743 | | | 4,394,668 | | | | | (29,402) | | | | | 194,499 | |
Warehouse lines of credit | |
| 549,011 | |
| 463,249 | |
| 339,723 | |
| 457,033 | |
| 539,560 | | | |
| 209,288 | | | |
| 9,451 | |
Total Core Banking | | | 5,138,178 | | | 5,036,899 | | | 4,958,292 | | | 4,953,776 | | | 4,934,228 | | | | | 179,886 | | | | | 203,950 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Republic Processing Group: | |
| | |
| | |
| | |
| | |
| | | | |
| | | | |
| | |
Tax Refund Solutions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Refund Advances | | | — | | | 52,101 | | | 103,115 | | | — | | | — | | | | | (103,115) | | | | | — | |
Other TRS commercial & industrial loans | | | 92 | | | 5,396 | | | 46,092 | | | 354 | | | 193 | | | | | (46,000) | | | | | (101) | |
Republic Credit Solutions | | | 126,000 | | | 129,896 | | | 132,362 | | | 126,969 | | | 118,721 | | | | | (6,362) | | | | | 7,279 | |
Total Republic Processing Group | | | 126,092 | | | 187,393 | | | 281,569 | | | 127,323 | | | 118,914 | | | | | (155,477) | | | | | 7,178 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loans - Total Company | | $ | 5,264,270 | | $ | 5,224,292 | | $ | 5,239,861 | | $ | 5,081,099 | | $ | 5,053,142 | | | | $ | 24,409 | | | | $ | 211,128 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for Credit Losses on Loans ("Allowance") | | | | | | | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Banking | | $ | 59,865 | | $ | 59,176 | | $ | 58,998 | | $ | 56,931 | | $ | 55,567 | | | | $ | 867 | | | | $ | 4,298 | |
Warehouse Lending | | | 1,370 | | | 1,156 | | | 847 | | | 1,143 | | | 1,346 | | | | | 523 | | | | | 24 | |
Total Core Banking | | | 61,235 | | | 60,332 | | | 59,845 | | | 58,074 | | | 56,913 | | | | | 1,390 | | | | | 4,322 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Refund Solutions | | | — | | | 30,069 | | | 3,990 | | | 1 | | | — | | | | | (3,990) | | | | | — | |
Republic Credit Solutions | | | 19,452 | | | 18,301 | | | 18,295 | | | 16,501 | | | 15,289 | | | | | 1,157 | | | | | 4,163 | |
Total Republic Processing Group | | | 19,452 | | | 48,370 | | | 22,285 | | | 16,502 | | | 15,289 | | | | | (2,833) | | | | | 4,163 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Allowance - Total Company | | $ | 80,687 | | $ | 108,702 | | $ | 82,130 | | $ | 74,576 | | $ | 72,202 | | | | $ | (1,443) | | | | $ | 8,485 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance to Total Loans | | | | | | | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Banking | | | 1.30 | % | | 1.29 | % | | 1.28 | % | | 1.27 | % | | 1.26 | % | | | | 0.02 | % | | | | 0.04 | % |
Warehouse Lending | | | 0.25 | | | 0.25 | | | 0.25 | | | 0.25 | | | 0.25 | | | | | — | | | | | — | |
Total Core Banking | | | 1.19 | | | 1.20 | | | 1.21 | | | 1.17 | | | 1.15 | | | | | (0.02) | | | | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax Refund Solutions | | | — | | | 52.30 | | | 2.67 | | | 0.28 | | | — | | | | | (2.67) | | | | | — | |
Republic Credit Solutions | | | 15.44 | | | 14.09 | | | 13.82 | | | 13.00 | | | 12.88 | | | | | 1.62 | | | | | 2.56 | |
Total Republic Processing Group | | | 15.43 | | | 25.81 | | | 7.91 | | | 12.96 | | | 12.86 | | | | | 7.52 | | | | | 2.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Company | | | 1.53 | | | 2.08 | | | 1.57 | | | 1.47 | | | 1.43 | | | | | (0.04) | | | | | 0.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
S-7
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second 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)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Quality Data and Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and for the Three Months Ended | | | As of and for the Six Months Ended | | | Change (8) | | |||||||||||||||||||||||||
| | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | Jun. 30, 2024 | | Jun. 30, 2023 | | | From Jun. 30, 2023 or 6M to 6M | | |||||||||||||||
Credit Quality Asset Balances and Net Charge-off ("NCO") Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming Assets - Total Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans on nonaccrual status | | $ | 19,910 | | | $ | 19,258 | | | $ | 19,150 | | | $ | 18,127 | | | $ | 16,957 | | | | $ | 19,910 | | | $ | 16,957 | | | | $ | 2,953 | |
Loans past due 90-days-or-more and still on accrual | | | 631 | | | | 2,116 | | | | 1,468 | | | | 1,037 | | | | 547 | | | | | 631 | | | | 547 | | | | | 84 | |
Total nonperforming loans | | | 20,541 | | | | 21,374 | | | | 20,618 | | | | 19,164 | | | | 17,504 | | | | | 20,541 | | | | 17,504 | | | | | 3,037 | |
OREO | | | 1,265 | | | | 1,486 | | | | 1,370 | | | | 1,423 | | | | 1,478 | | | | | 1,265 | | | | 1,478 | | | | | (213) | |
Total nonperforming assets | | $ | 21,806 | | | $ | 22,860 | | | $ | 21,988 | | | $ | 20,587 | | | $ | 18,982 | | | | $ | 21,806 | | | $ | 18,982 | | | | $ | 2,824 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming Assets - Core Bank: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans on nonaccrual status | | $ | 19,910 | | | $ | 19,258 | | | $ | 19,150 | | | $ | 18,127 | | | $ | 16,957 | | | | $ | 19,910 | | | $ | 16,957 | | | | $ | 2,953 | |
Loans past due 90-days-or-more and still on accrual | | | — | | | | — | | | | — | | | | — | | | | — | | | | | — | | | | — | | | | | — | |
Total nonperforming loans | | | 19,910 | | | | 19,258 | | | | 19,150 | | | | 18,127 | | | | 16,957 | | | | | 19,910 | | | | 16,957 | | | | | 2,953 | |
OREO | | | 1,265 | | | | 1,486 | | | | 1,370 | | | | 1,423 | | | | 1,478 | | | | | 1,265 | | | | 1,478 | | | | | (213) | |
Total nonperforming assets | | $ | 21,175 | | | $ | 20,744 | | | $ | 20,520 | | | $ | 19,550 | | | $ | 18,435 | | | | $ | 21,175 | | | $ | 18,435 | | | | $ | 2,740 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Delinquent Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Delinquent loans - Core Bank | | $ | 9,313 | | | $ | 7,796 | | | $ | 8,176 | | | $ | 6,806 | | | $ | 5,875 | | | | $ | 9,313 | | | $ | 5,875 | | | | $ | 3,438 | |
RPG | | | 9,970 | | | | 13,616 | | | | 13,916 | | | | 12,328 | | | | 10,043 | | | | | 9,970 | | | | 10,043 | | | | | (73) | |
Total delinquent loans - Total Company | | $ | 19,283 | | | $ | 21,412 | | | $ | 22,092 | | | $ | 19,134 | | | $ | 15,918 | | | | $ | 19,283 | | | $ | 15,918 | | | | $ | 3,365 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NCOs (Recoveries) by Segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Bank | | $ | 232 | | | $ | 180 | | | $ | 220 | | | $ | 203 | | | $ | 125 | | | | $ | 412 | | | $ | 202 | | | | $ | 210 | |
Warehouse Lending loans | | | — | | | | — | | | | — | | | | — | | | | — | | | | | — | | | | — | | | | | — | |
Core Bank loans | | | 232 | | | | 180 | | | | 220 | | | | 203 | | | | 125 | | | | | 412 | | | | 202 | | | | | 210 | |
Tax Refund Solutions | | | 28,887 | | | | (305) | | | | (1,052) | | | | (1,968) | | | | 25,762 | | | | | 28,582 | | | | 25,477 | | | | | 3,105 | |
Republic Credit Solutions | | | 4,045 | | | | 4,175 | | | | 4,267 | | | | 3,121 | | | | 2,787 | | | | | 8,220 | | | | 5,653 | | | | | 2,567 | |
RPG | | | 32,932 | | | | 3,870 | | | | 3,215 | | | | 1,153 | | | | 28,549 | | | | | 36,802 | | | | 31,130 | | | | | 5,672 | |
Total NCOs (recoveries) - Total Company | | $ | 33,164 | | | $ | 4,050 | | | $ | 3,435 | | | $ | 1,356 | | | $ | 28,674 | | | | $ | 37,214 | | | $ | 31,332 | | | | $ | 5,882 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Quality Ratios - Total Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans to total loans | | | 0.39 | % | | | 0.41 | % | | | 0.39 | % | | | 0.38 | % | | | 0.35 | % | | | | 0.39 | % | | | 0.35 | % | | | | 0.04 | % |
Nonperforming assets to total loans (including OREO) | | | 0.41 | | | | 0.44 | | | | 0.42 | | | | 0.41 | | | | 0.38 | | | | | 0.41 | | | | 0.38 | | | | | 0.03 | |
Nonperforming assets to total assets | | | 0.33 | | | | 0.33 | | | | 0.33 | | | | 0.32 | | | | 0.30 | | | | | 0.33 | | | | 0.30 | | | | | 0.03 | |
Allowance for credit losses to total loans | | | 1.53 | | | | 2.08 | | | | 1.57 | | | | 1.47 | | | | 1.43 | | | | | 1.53 | | | | 1.43 | | | | | 0.10 | |
Allowance for credit losses to nonperforming loans | | | 393 | | | | 509 | | | | 398 | | | | 389 | | | | 412 | | | | | 393 | | | | 412 | | | | | (19) | |
Delinquent loans to total loans (9) | | | 0.37 | | | | 0.41 | | | | 0.42 | | | | 0.38 | | | | 0.32 | | | | | 0.37 | | | | 0.32 | | | | | 0.05 | |
NCOs (recoveries) to average loans (annualized) | | | 2.52 | | | | 0.30 | | | | 0.27 | | | | 0.11 | | | | 2.34 | | | | | 1.40 | | | | 1.32 | | | | | 0.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Quality Ratios - Core Bank: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans to total loans | | | 0.39 | % | | | 0.38 | % | | | 0.39 | % | | | 0.37 | % | | | 0.34 | % | | | | 0.39 | % | | | 0.34 | % | | | | 0.05 | % |
Nonperforming assets to total loans (including OREO) | | | 0.41 | | | | 0.41 | | | | 0.41 | | | | 0.39 | | | | 0.37 | | | | | 0.41 | | | | 0.37 | | | | | 0.04 | |
Nonperforming assets to total assets | | | 0.35 | | | | 0.33 | | | | 0.35 | | | | 0.33 | | | | 0.32 | | | | | 0.35 | | | | 0.32 | | | | | 0.03 | |
Allowance for credit losses to total loans | | | 1.19 | | | | 1.20 | | | | 1.21 | | | | 1.17 | | | | 1.15 | | | | | 1.19 | | | | 1.15 | | | | | 0.04 | |
Allowance for credit losses to nonperforming loans | | | 308 | | | | 313 | | | | 313 | | | | 320 | | | | 336 | | | | | 308 | | | | 336 | | | | | (28) | |
Delinquent loans to total loans | | | 0.18 | | | | 0.15 | | | | 0.16 | | | | 0.14 | | | | 0.12 | | | | | 0.18 | | | | 0.12 | | | | | 0.06 | |
Annualized NCOs (recoveries) to average loans | | | 0.02 | | | | 0.01 | | | | 0.02 | | | | 0.02 | | | | 0.01 | | | | | 0.02 | | | | 0.01 | | | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TRS Refund Advances ("RAs") | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RAs originated | | $ | — | | | $ | 771,091 | | | $ | 103,115 | | | $ | — | | | $ | — | | | | $ | 771,091 | | | $ | 737,047 | | | | $ | 34,044 | |
Net (credit) charge to the Provision for RAs | | | (1,158) | | | | 25,718 | | | | 2,877 | | | | (1,939) | | | | (161) | | | | | 24,560 | | | | 21,554 | | | | | 3,006 | |
RAs NCOs (recoveries) | | | 28,764 | | | | (275) | | | | (1,052) | | | | (1,939) | | | | 25,636 | | | | | 28,489 | | | | 25,351 | | | | | 3,138 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
S-8
Earnings Release Financial Supplement
Second 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 June 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
Second quarter 2024 (continued)
Segment information for the quarters and years ended June 30, 2024 and 2023 follows:
| | Three Months Ended June 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 | $ | 49,915 | | | $ | 2,914 | | | $ | 52,829 | | | $ | 823 | | $ | 2,930 | | $ | 11,954 | | $ | 15,707 | | | $ | 68,536 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for expected credit loss expense | | 915 | | | | 214 | | | | 1,129 | | | | (1,182) | | | — | | | 5,196 | | | 4,014 | | | | 5,143 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net refund transfer fees | | — | | | | — | | | | — | | | | 3,811 | | | — | | | — | | | 3,811 | | | | 3,811 | |
Mortgage banking income | | 1,612 | | | | — | | | | 1,612 | | | | — | | | — | | | — | | | — | | | | 1,612 | |
Program fees | | — | | | | — | | | | — | | | | — | | | 760 | | | 3,638 | | | 4,398 | | | | 4,398 | |
Other noninterest income | | 8,435 | | | | 13 | | | | 8,448 | | | | 75 | | | 1 | | | 1 | | | 77 | | | | 8,525 | |
Total noninterest income | | 10,047 | | | | 13 | | | | 10,060 | | | | 3,886 | | | 761 | | | 3,639 | | | 8,286 | | | | 18,346 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | 41,712 | | | | 927 | | | | 42,639 | | | | 2,024 | | | 1,018 | | | 3,953 | | | 6,995 | | | | 49,634 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income tax expense | | 17,335 | | | | 1,786 | | | | 19,121 | | | | 3,867 | | | 2,673 | | | 6,444 | | | 12,984 | | | | 32,105 | |
Income tax expense (benefit) | | 3,708 | | | | 403 | | | | 4,111 | | | | 796 | | | 574 | | | 1,418 | | | 2,788 | | | | 6,899 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | $ | 13,627 | | | $ | 1,383 | | | $ | 15,010 | | | $ | 3,071 | | $ | 2,099 | | $ | 5,026 | | $ | 10,196 | | | $ | 25,206 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period-end assets | $ | 5,531,961 | | | $ | 549,472 | | | $ | 6,081,433 | | | $ | 32,106 | | $ | 362,410 | | $ | 140,625 | | $ | 535,141 | | | $ | 6,616,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | 3.53 | % | | | 2.57 | % | | | 3.46 | % | | | NM | | | 5.03 | % | | NM | | | NM | | | | 4.36 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net-revenue concentration* | | 70 | % | | | 3 | % | | | 73 | % | | | 5 | % | | 4 | % | | 18 | % | | 27 | % | | | 100 | % |
| | Three Months Ended June 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 | $ | 48,743 | | | $ | 2,642 | | | $ | 51,385 | | | $ | 70 | | $ | 3,940 | | $ | 9,134 | | $ | 13,144 | | | $ | 64,529 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for expected credit loss expense | | 1,860 | | | | 202 | | | | 2,062 | | | | (219) | | | — | | | 4,296 | | | 4,077 | | | | 6,139 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net refund transfer fees | | — | | | | — | | | | — | | | | 4,479 | | | — | | | — | | | 4,479 | | | | 4,479 | |
Mortgage banking income | | 907 | | | | — | | | | 907 | | | | — | | | — | | | — | | | — | | | | 907 | |
Program fees | | — | | | | — | | | | — | | | | — | | | 728 | | | 3,011 | | | 3,739 | | | | 3,739 | |
Death benefits in excess of cash surrender value of life insurance | | 1,728 | | | | — | | | | 1,728 | | | | — | | | — | | | — | | | — | | | | 1,728 | |
Other noninterest income | | 8,629 | | | | 11 | | | | 8,640 | | | | 127 | | | (9) | | | 40 | | | 158 | | | | 8,798 | |
Total noninterest income | | 11,264 | | | | 11 | | | | 11,275 | | | | 4,606 | | | 719 | | | 3,051 | | | 8,376 | | | | 19,651 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | 44,475 | | | | 1,008 | | | | 45,483 | | | | 2,160 | | | 983 | | | 2,907 | | | 6,050 | | | | 51,533 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax expense | | 13,672 | | | | 1,443 | | | | 15,115 | | | | 2,735 | | | 3,676 | | | 4,982 | | | 11,393 | | | | 26,508 | |
Income tax expense | | 2,649 | | | | 322 | | | | 2,971 | | | | 573 | | | 818 | | | 1,094 | | | 2,485 | | | | 5,456 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 11,023 | | | $ | 1,121 | | | $ | 12,144 | | | $ | 2,162 | | $ | 2,858 | | $ | 3,888 | | $ | 8,908 | | | $ | 21,052 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period-end assets | $ | 5,287,197 | | | $ | 540,106 | | | $ | 5,827,303 | | | $ | 39,234 | | $ | 376,194 | | $ | 127,048 | | $ | 542,476 | | | $ | 6,369,779 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | 3.77 | % | | | 2.28 | % | | | 3.65 | % | | | NM | | | 4.52 | % | | NM | | | NM | | | | 4.46 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net-revenue concentration* | | 71 | % | | | 3 | % | | | 74 | % | | | 6 | % | | 6 | % | | 14 | % | | 26 | % | | | 100 | % |
S-10
| | Six Months Ended June 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 | $ | 98,174 | | | $ | 5,171 | | | $ | 103,345 | | | $ | 31,733 | | $ | 6,438 | | $ | 23,939 | | $ | 62,110 | | | $ | 165,455 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for expected credit loss expense | | 1,273 | | | | 523 | | | | 1,796 | | | | 24,592 | | | — | | | 9,377 | | | 33,969 | | | | 35,765 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net refund transfer fees | | — | | | | — | | | | — | | | | 14,631 | | | — | | | — | | | 14,631 | | | | 14,631 | |
Mortgage banking income | | 1,922 | | | | — | | | | 1,922 | | | | — | | | — | | | — | | | — | | | | 1,922 | |
Program fees | | — | | | | — | | | | — | | | | — | | | 1,533 | | | 7,044 | | | 8,577 | | | | 8,577 | |
Other noninterest income | | 16,421 | | | | 26 | | | | 16,447 | | | | 138 | | | 2 | | | 2 | | | 142 | | | | 16,589 | |
Total noninterest income | | 18,343 | | | | 26 | | | | 18,369 | | | | 14,769 | | | 1,535 | | | 7,046 | | | 23,350 | | | | 41,719 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | 83,106 | | | | 1,805 | | | | 84,911 | | | | 6,536 | | | 1,972 | | | 7,186 | | | 15,694 | | | | 100,605 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income tax expense | | 32,138 | | | | 2,869 | | | | 35,007 | | | | 15,374 | | | 6,001 | | | 14,422 | | | 35,797 | | | | 70,804 | |
Income tax expense (benefit) | | 6,228 | | | | 647 | | | | 6,875 | | | | 3,510 | | | 1,335 | | | 3,272 | | | 8,117 | | | | 14,992 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | $ | 25,910 | | | $ | 2,222 | | | $ | 28,132 | | | $ | 11,864 | | $ | 4,666 | | $ | 11,150 | | $ | 27,680 | | | $ | 55,812 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period-end assets | $ | 5,531,961 | | | $ | 549,472 | | | $ | 6,081,433 | | | $ | 32,106 | | $ | 362,410 | | $ | 140,625 | | $ | 535,141 | | | $ | 6,616,574 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | 3.43 | % | | | 2.61 | % | | | 3.38 | % | | | NM | | | 5.05 | % | | NM | | | NM | | | | 5.13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net-revenue concentration* | | 56 | % | | | 3 | % | | | 59 | % | | | 22 | % | | 4 | % | | 15 | % | | 41 | % | | | 100 | % |
| | Six Months Ended June 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 | $ | 98,911 | | | $ | 4,729 | | | $ | 103,640 | | | $ | 28,377 | | $ | 7,398 | | $ | 17,756 | | $ | 53,531 | | | $ | 157,171 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision for expected credit loss expense | | 4,844 | | | | 337 | | | | 5,181 | | | | 21,589 | | | — | | | 6,135 | | | 27,724 | | | | 32,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net refund transfer fees | | — | | | | — | | | | — | | | | 15,286 | | | — | | | — | | | 15,286 | | | | 15,286 | |
Mortgage banking income | | 1,707 | | | | — | | | | 1,707 | | | | — | | | — | | | — | | | — | | | | 1,707 | |
Program fees | | — | | | | — | | | | — | | | | — | | | 1,435 | | | 5,545 | | | 6,980 | | | | 6,980 | |
Death benefits in excess of cash surrender value of life insurance | | 1,728 | | | | — | | | | 1,728 | | | | — | | | — | | | — | | | — | | | | 1,728 | |
Other noninterest income | | 16,300 | | | | 22 | | | | 16,322 | | | | 242 | | | 2 | | | 65 | | | 309 | | | | 16,631 | |
Total noninterest income | | 19,735 | | | | 22 | | | | 19,757 | | | | 15,528 | | | 1,437 | | | 5,610 | | | 22,575 | | | | 42,332 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense | | 87,881 | | | | 1,976 | | | | 89,857 | | | | 6,942 | | | 1,849 | | | 5,328 | | | 14,119 | | | | 103,976 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax expense | | 25,921 | | | | 2,438 | | | | 28,359 | | | | 15,374 | | | 6,986 | | | 11,903 | | | 34,263 | | | | 62,622 | |
Income tax expense | | 5,362 | | | | 545 | | | | 5,907 | | | | 3,379 | | | 1,553 | | | 2,639 | | | 7,571 | | | | 13,478 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 20,559 | | | $ | 1,893 | | | $ | 22,452 | | | $ | 11,995 | | $ | 5,433 | | $ | 9,264 | | $ | 26,692 | | | $ | 49,144 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period-end assets | $ | 5,287,197 | | | $ | 540,106 | | | $ | 5,827,303 | | | $ | 39,234 | | $ | 376,194 | | $ | 127,048 | | $ | 542,476 | | | $ | 6,369,779 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | 3.92 | % | | | 2.39 | % | | | 3.81 | % | | | NM | | | 4.17 | % | | NM | | | NM | | | | 5.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net-revenue concentration* | | 60 | % | | | 2 | % | | | 62 | % | | | 22 | % | | 4 | % | | 12 | % | | 38 | % | | | 100 | % |
S-11
Republic Bancorp, Inc.
Earnings Release Financial Supplement
Second quarter 2024 (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | Six Months Ended | | | $ Change (8) | | ||||||||||||||||||
(dollars in thousands) | | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | Jun. 30, 2024 | | Jun. 30, 2023 | | | 6M to 6M | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Traditional Banking | | $ | 1,281 | | $ | 1,366 | | $ | 1,400 | | $ | 1,703 | | $ | 1,311 | | | $ | 2,647 | | $ | 2,254 | | | $ | 393 | |
Warehouse Lending | | | 322 | | | 263 | | | 235 | | | 254 | | | 294 | | | | 585 | | | 542 | | | | 43 | |
Total Core Bank | | | 1,603 | | | 1,629 | | | 1,635 | | | 1,957 | | | 1,605 | | | | 3,232 | | | 2,796 | | | | 436 | |
TRS - Refund Advances | | | 741 | | | 34,652 | | | 7 | | | 25 | | | 41 | | | | 35,393 | | | 31,446 | | | | 3,947 | |
TRS - Other Loan Fees | | | 15 | | | 1,219 | | | 1,089 | | | 6 | | | 24 | | | | 1,234 | | | 956 | | | | 278 | |
RCS | | | 11,272 | | | 11,372 | | | 10,514 | | | 9,763 | | | 8,416 | | | | 22,644 | | | 16,378 | | | | 6,266 | |
Total RPG | | | 12,028 | | | 47,243 | | | 11,610 | | | 9,794 | | | 8,481 | | | | 59,271 | | | 48,780 | | | | 10,491 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total loan fees - Total Company | | $ | 13,631 | | $ | 48,872 | | $ | 13,245 | | $ | 11,751 | | $ | 10,086 | | | $ | 62,503 | | $ | 51,576 | | | $ | 10,927 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and for the Three Months Ended | | | As of and for the Six Months Ended | | | $ Change (8) | | ||||||||||||||||||
(dollars in thousands) | | Jun. 30, 2024 |
| Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | Jun. 30, 2024 | | Jun. 30, 2023 | | | 6M to 6M | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage Loans Held for Sale | | | | | | | | | | | | | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | $ | 80,884 | | $ | 3,227 | | $ | 2,711 | | $ | 4,038 | | $ | 1,034 | | | $ | 3,227 | | $ | 1,302 | | | $ | 1,925 | |
Originations | |
| 53,703 | |
| 27,046 | |
| 24,050 | |
| 23,860 | |
| 13,948 | | |
| 80,749 | |
| 29,890 | | |
| 50,859 | |
Transferred from held for investment to held for sale | | | (2,288) | | | 69,464 | | | — | | | — | | | — | | | | 67,176 | | | — | | | | 67,176 | |
Proceeds from sales | |
| (123,693) | |
| (18,773) | |
| (24,134) | |
| (25,681) | |
| (11,483) | | |
| (142,466) | |
| (28,113) | | |
| (114,353) | |
Fair value adjustment for correspondent loans reclassified to held for sale | | | 997 | | | (997) | | | — | | | — | | | — | | | | — | | | — | | | | — | |
Loss on correspondent loan sale | | | (1,012) | | | — | | | — | | | — | | | — | | | | (1,012) | | | — | | | | (1,012) | |
Net gain on sale | |
| 1,112 | |
| 917 | |
| 600 | |
| 494 | |
| 539 | | |
| 2,029 | |
| 959 | | |
| 1,070 | |
Balance, end of period | | $ | 9,703 | | $ | 80,884 | | $ | 3,227 | | $ | 2,711 | | $ | 4,038 | | | $ | 9,703 | | $ | 4,038 | | | $ | 5,665 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
RCS Consumer Loans Held for Sale | | | | | | | | | | | | | | | | | | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | | $ | 19,176 | | $ | 24,008 | | $ | 21,972 | | $ | 21,544 | | $ | 17,432 | | | $ | 24,008 | | $ | 17,875 | | | $ | 6,133 | |
Originations | |
| 402,141 | |
| 188,347 | |
| 300,281 | |
| 287,088 | |
| 262,404 | | |
| 590,488 | |
| 469,626 | | |
| 120,862 | |
Proceeds from sales | |
| (392,755) | |
| (196,584) | |
| (302,118) | |
| (289,997) | |
| (261,301) | | |
| (589,339) | |
| (471,500) | | |
| (117,839) | |
Net gain on sale | |
| 3,639 | |
| 3,405 | |
| 3,873 | |
| 3,337 | |
| 3,009 | | |
| 7,044 | |
| 5,543 | | |
| 1,501 | |
Balance, end of period | | $ | 32,201 | | $ | 19,176 | | $ | 24,008 | | $ | 21,972 | | $ | 21,544 | | | $ | 32,201 | | $ | 21,544 | | | $ | 10,657 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
S-12
| | As of | ||||||||||||||||||
(dollars in thousands, except per share data) | | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity - GAAP (a) | | $ | 955,423 | | | $ | 935,583 | | | $ | 912,756 | | | $ | 893,400 | | | $ | 886,971 | |
Less: Goodwill | | | 40,516 | | | | 40,516 | | | | 40,516 | | | | 40,516 | | | | 40,516 | |
Less: Mortgage servicing rights | | | 7,030 | | | | 7,102 | | | | 7,411 | | | | 7,710 | | | | 7,995 | |
Less: Core deposit intangible | | | 2,187 | | | | 2,302 | | | | 2,439 | | | | 2,576 | | | | 2,713 | |
Tangible stockholders' equity - Non-GAAP (c) | | $ | 905,690 | | | $ | 885,663 | | | $ | 862,390 | | | $ | 842,598 | | | $ | 835,747 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets - GAAP (b) | | $ | 6,616,574 | | | $ | 6,875,592 | | | $ | 6,594,891 | | | $ | 6,386,475 | | | $ | 6,369,779 | |
Less: Goodwill | | | 40,516 | | | | 40,516 | | | | 40,516 | | | | 40,516 | | | | 40,516 | |
Less: Mortgage servicing rights | | | 7,030 | | | | 7,102 | | | | 7,411 | | | | 7,710 | | | | 7,995 | |
Less: Core deposit intangible | | | 2,187 | | | | 2,302 | | | | 2,439 | | | | 2,576 | | | | 2,713 | |
Tangible assets - Non-GAAP (d) | | $ | 6,566,841 | | | $ | 6,825,672 | | | $ | 6,544,525 | | | $ | 6,335,673 | | | $ | 6,318,555 | |
| | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity to total assets - GAAP (a/b) | | | 14.44 | % | | | 13.61 | % | | | 13.84 | % | | | 13.99 | % | | | 13.92 | % |
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d) | | | 13.79 | % | | | 12.98 | % | | | 13.18 | % | | | 13.30 | % | | | 13.23 | % |
| | | | | | | | | | | | | | | | | | | | |
Number of shares outstanding (e) | | | 19,422 | | | | 19,411 | | | | 19,358 | | | | 19,453 | | | | 19,606 | |
| | | | | | | | | | | | | | | | | | | | |
Book value per share - GAAP (a/e) | | $ | 49.19 | | | $ | 48.20 | | | $ | 47.15 | | | $ | 45.93 | | | $ | 45.24 | |
Tangible book value per share - Non-GAAP (c/e) | | | 46.63 | | | | 45.63 | | | | 44.55 | | | | 43.31 | | | | 42.63 | |
(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 | | | Six Months Ended | ||||||||||||||||||||||||
(dollars in thousands) | | Jun. 30, 2024 | | Mar. 31, 2024 | | Dec. 31, 2023 | | Sep. 30, 2023 | | Jun. 30, 2023 | | | Jun. 30, 2024 | | | Jun. 30, 2023 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income - GAAP | | $ | 68,536 | | | $ | 96,919 | | | $ | 66,782 | | | $ | 64,825 | | | $ | 64,529 | | | | $ | 165,455 | | | $ | 157,171 | |
Noninterest income - GAAP | | | 18,346 | | | | 23,373 | | | | 14,780 | | | | 14,345 | | | | 19,651 | | | | | 41,719 | | | | 42,332 | |
Less: BOLI benefit payment received | | | — | | | | — | | | | — | | | | — | | | | 1,728 | | | | | — | | | | — | |
Less: Net gain (loss) on securities | | | 1 | | | | — | | | | 6 | | | | 2 | | | | 3 | | | | | 1 | | | | 1 | |
Total adjusted income - Non-GAAP (a) | | $ | 86,881 | | | $ | 120,292 | | | $ | 81,556 | | | $ | 79,168 | | | $ | 82,449 | | | | $ | 207,173 | | | $ | 199,502 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest expense - GAAP | | $ | 49,634 | | | $ | 50,971 | | | $ | 47,054 | | | $ | 48,368 | | | $ | 51,533 | | | | $ | 100,605 | | | $ | 103,976 | |
Less: Merger expenses related to CBank acquisition | | | — | | | | 41 | | | | 92 | | | | (132) | | | | 127 | | | | | 41 | | | | 2,073 | |
Adjusted noninterest expense - Non-GAAP (b) | | $ | 49,634 | | | $ | 50,930 | | | $ | 46,962 | | | $ | 48,500 | | | $ | 51,406 | | | | $ | 100,564 | | | $ | 101,903 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Efficiency Ratio - Non-GAAP (b/a) | | | 57 | % | | | 42 | % | | | 58 | % | | | 61 | % | | | 62 | % | | | | 49 | % | | | 51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(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). |
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
Document and Entity Information |
Jul. 19, 2024 |
---|---|
Document and Entity Information [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 19, 2024 |
Entity Registrant Name | REPUBLIC BANCORP, INC. |
Entity Incorporation, State or Country Code | KY |
Entity File Number | 0-24649 |
Entity Tax Identification Number | 61-0862051 |
Entity Address, Address Line One | 601 West Market Street |
Entity Address, City or Town | Louisville |
Entity Address, State or Province | KY |
Entity Address, Postal Zip Code | 40202 |
City Area Code | 502 |
Local Phone Number | 584-3600 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common |
Trading Symbol | RBCAA |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000921557 |
Amendment Flag | false |
1 Year Republic Bancorp Chart |
1 Month Republic Bancorp Chart |
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