Republic Bancorp, Inc. Reports a 56% Year-Over-Year Increase in Second Quarter Net Income

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Republic Bancorp, Inc. Reports a 56% Year-Over-Year Increase in Second Quarter Net Income

LOUISVILLE, Ky.--()--Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).

Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report second quarter net income of $15.7 million, a 56% increase over the second quarter of 2017, resulting in Diluted Earnings per Class A Common Share (“Diluted EPS”) of $0.74. Year-to-date net income was $43.1 million, a $13.0 million, or 43%, increase from the same period in 2017, resulting in return on average assets (“ROA”) and return on average equity (“ROE”) of 1.67% and 13.22% for the first six months of 2018.

Pre-tax income increased 30% from the second quarter of 2017 to the second quarter of 2018, as the Company’s net interest margin remained strong. As will be the case for each quarter in 2018, a reduction in the federal corporate tax rate from 35% to 21%, effective January 1, 2018, positively impacted the comparability of the Company’s performance metrics between the second quarter of 2018 and the second quarter of 2017.(1) The Company estimates that the lower effective tax rate for 2018 benefited its second quarter 2018 and year-to-date Diluted EPS by approximately $0.10 and $0.29 per share, respectively.

Steve Trager, Chairman & CEO of Republic commented, “While we continue to be pleased with the benefits to our bottom line of the recent corporate tax cuts, we remain most excited about our continued strong operating performance, as our pre-tax earnings for the second quarter of 2018 grew significantly over the second quarter of 2017. A solid increase in net interest income, driven by robust net interest margin expansion over the previous year’s second quarter, was the primary contributor to the Company’s growth in pre-tax earnings. In addition to our sound earnings performance, our Core Bank’s(2) balance sheet growth remained steady during the first half of 2018 while our Core Bank’s credit quality statistics continued to compare favorably to peer.

“In addition to the strong performance of our Core Bank, the Republic Processing Group(3) (“RPG”) also contributed nicely to the Company’s bottom line, as both Republic Credit Solutions (“RCS”) and Tax Refund Solutions (“TRS”) experienced solid quarters with meaningful increases in pre-tax earnings over the second quarter of 2017. Heading into the second half of the year, the Company is performing well across its major business lines, providing us with great optimism for the remainder of 2018,” concluded Steve Trager.

The following table highlights Republic’s financial performance for the second quarters and six months ended June 30, 2018 and 2017:

                                                                 
  (dollars in thousands, except per share data)    
Total Company Financial Performance Highlights
Three Months Ended Jun. 30,         Six Months Ended Jun. 30,  
2018   2017 $ Change   % Change 2018   2017 $ Change   % Change
 
Income Before Income Taxes* $ 19,816 $ 15,269 $ 4,547 30 % $ 54,726 $ 45,340 $ 9,386 21 %
Net Income* 15,666 10,071 5,595 56 43,135 30,088 13,047 43
Diluted Earnings per Class A Common Stock 0.74 0.48 0.26 54 2.06 1.45 0.61 42
Return on Average Assets 1.23 % 0.86 % NA 43 1.67 % 1.26 % NA 33
Return on Average Equity 9.45 6.42 NA 47 13.22 9.72 NA 36
                                                                 

NA – Not applicable

*Segment-level data is presented at the end of this earnings release.

 

Results of Operations for the Second Quarter of 2018 Compared to the Second Quarter of 2017

Core Banking(2)

Net income from Core Banking was $11.6 million for the second quarter of 2018, an increase of $3.7 million, or 47%, over the second quarter of 2017. Strong growth in net interest income, which increased $5.7 million, or 15%, over the second quarter of 2017 drove the increase in the Core Bank’s net income. In addition, the Core Bank’s bottom line benefited by approximately $1.7 million due to the previously mentioned lower 2018 effective tax rate.

The growth in net interest income was driven by an 18-basis-point expansion of the Core Bank’s net interest margin to 3.64% for the second quarter of 2018 and further complemented by a $313 million, or 8%, increase in the Core Bank’s quarterly average loans.

The table below presents the overall change in the Core Bank’s net interest income, as well as average and period-end loan balances by origination channel:

                         
  Net Interest Income  
for the
(dollars in thousands) Three Months Ended Jun. 30,
Origination Channel 2018     2017 $ Change   % Change
 
Traditional Network $ 39,095 $ 33,047 $ 6,048 18 %
Warehouse Lending 4,164 4,435 (271 ) (6 )
Correspondent Lending 271 229 42 18
2012-FDIC Acquired Loans   85   244   (159 ) (65 )
Total Core Bank $ 43,615 $ 37,955 $ 5,660   15
                         
 
                                                   
                 
Average Loan Balances Period-End Loan Balances
(dollars in thousands) Three Months Ended Jun. 30, Jun. 30,
Origination Channel   2018   2017 $ Change % Change   2018   2017 $ Change % Change
 
Traditional Network $ 3,347,622 $ 3,050,247 $ 297,375 10 % $ 3,365,350 $ 3,131,535 $ 233,815 7 %
Warehouse Lending 541,537 489,384 52,153 11 634,841 600,630 34,211 6
Correspondent Lending 108,576 137,270 (28,694 ) (21 ) 105,170 129,792 (24,622 ) (19 )
2012-FDIC Acquired Loans   5,986   13,659   (7,673 ) (56 )   5,906   12,253   (6,347 ) (52 )
Total Core Bank $ 4,003,721 $ 3,690,560 $ 313,161   8 $ 4,111,267 $ 3,874,210 $ 237,057   6
                                                   
 

The primary drivers of the changes in the Core Bank’s average loan balances and net interest income for the second quarter of 2018, as compared to the second quarter of 2017 follow:

  • The Traditional Network experienced solid growth in average loan balances of $297 million, or 10%, from the second quarter of 2017 to the second quarter of 2018. This growth was largely concentrated in the commercial loan sector, with average commercial real estate balances growing $173 million, or 16%, and average commercial and industrial balances growing $73 million, or 29%.
  • The difference between the Core Bank’s net interest margin and net interest spread was 29 basis points during the second quarter of 2018 compared to 21 basis points during the second quarter of 2017. The differential between the net interest margin and net interest spread represents the value of the Core Bank’s noninterest-bearing deposits and stockholders’ equity to its net interest margin. Due to rising short-term interest rates from June 30, 2017 to June 30, 2018, as measured by the increase of 75 basis points in the Federal Funds Target Rate during this period, the contribution of the Core Bank’s noninterest-bearing deposits and stockholders’ equity to the net interest margin increased significantly.
  • An internal change in the way the Company assigns cost of funds to its Warehouse Lending (“Warehouse”) segment through its Funds Transfer Pricing (“FTP”) methodology resulted in the Warehouse segment’s fluctuation in net interest income. The Company changed its Warehouse FTP methodology to be more consistent with that used for other Core Bank loan products with similar pricing and duration characteristics. This change had a $304,000 negative comparable impact on the Warehouse segment’s net interest income for the second quarter of 2018 and a corresponding positive comparable impact of $304,000 to the Traditional Banking segment’s net interest income.

The Core Bank’s provision for loan and lease losses (“Provision”) decreased to $773,000 for the second quarter of 2018 from $1.7 million for the same period in 2017, with the Provision for both periods primarily reflecting general reserves for loan growth. Overall, the Core Bank’s credit quality metrics remained strong from period to period with the Core Bank’s ratios of nonperforming loans to total loans and delinquent loans to total loans remaining near historically low levels.

The table below presents the Core Bank’s credit quality metrics:

                               
  As of and for the:
Quarters Ended:   Years Ended:
Jun. 30,   Mar. 31,   Dec. 31,   Dec. 31,   Dec. 31,
Core Banking Credit Quality Ratios   2018   2018   2017   2016   2015
       
Nonperforming loans to total loans 0.43 % 0.37 % 0.36 % 0.42 % 0.66 %
 

Nonperforming assets to total loans (including OREO)

0.43 0.38 0.36 0.46 0.70
 
Delinquent loans to total loans (4) 0.21 0.21 0.21 0.18 0.35
 
Net charge-offs to average loans 0.06 0.04 0.05 0.05
(Quarterly rates annualized)
                               
OREO = Other Real Estate Owned                              
 

Noninterest income for the Core Bank was $9.1 million during the second quarter of 2018, a $562,000, or 7%, increase from the $8.5 million achieved during the second quarter of 2017. The following primarily drove this increase:

  • Service charges on deposits increased $184,000, or 5%, driven by a 9% increase in active checking accounts from June 30, 2017 to June 30, 2018.
  • Interchange fee income increased $336,000, or 14%, with debit card interchange fees up $211,000, or 10%, and credit card interchange fees up $125,000, or 46%. Increases of 11% in active debit cards and 18% in active credit cards over the previous 12 months, as well as the corresponding usage on those cards, drove the increase in interchange fees.

Core Bank noninterest expenses increased $4.5 million, or 13%, during the second quarter of 2018 compared to the second quarter of 2017. The following primarily drove the increase:

  • Salaries and employee benefits expense increased $2.4 million, or 14%, driven partially by an increase of approximately 29 Core Bank full-time-equivalent employees (“FTEs”) over the previous 12 months and an $823,000 increase in healthcare benefits. The Company added FTEs primarily to support Core Bank strategic initiatives.
  • A 15% increase in depreciation expense associated with facility expansions and renovations from the previous year primarily drove an occupancy expense increase of $531,000, or 9%.
  • New and upgraded technology implemented in the previous 12 months to support several key strategic Core Bank initiatives caused data processing expenses to increase $527,000, or 34%. Such initiatives include improving the Company’s client relationship management system, its online banking functionality, and its overall security of client information and assets.

Republic Processing Group (3)

RPG reported net income of $4.1 million for the second quarter of 2018 compared to $2.2 million for the same period in 2017, with the previously mentioned lower 2018 effective tax rate contributing approximately $537,000 to the increase. Revenue growth within the RCS segment drove the increase in RPG’s net income. RCS profitability remains concentrated in its line-of-credit product, with revenues for this product increasing $2.0 million, or 37%, from the second quarter of 2017.

In addition to the strong performance at RCS, the TRS segment experienced an $852,000, or 74%, increase in net income for the quarter, as the pace of client tax refunds received during the second quarter of 2018 accelerated compared to the second quarter of 2017. The accelerated pace of tax refunds received by TRS during the quarter contributed to a 25% increase in net Refund Transfer fee income as well as an $888,000 net credit to the TRS Provision, as the estimated losses for Easy Advance (“EA”) loans at TRS decreased from the first quarter’s estimated losses.

As of March 31, 2018, unpaid EAs were approximately 4.49% of total EA originations for the first quarter of 2018 compared to 3.50% of total EA originations for the first quarter of 2017. As of June 30, 2018, unpaid EAs had decreased to 3.05% of total originations, a decline of 144 basis points from the March 31, 2018 unpaid amount. This compares to unpaid EAs of 2.40% at June 30, 2017, a decline of 110 basis points from the March 31, 2017 unpaid amount. As of June 30, 2018 and 2017, all unpaid EAs originated during each year had been charged-off. Each 0.10% in estimated loan loss reserves for EAs during 2018 equates to approximately $430,000 in Provision expense, while each 0.10% during 2017 equated to approximately $329,000.

Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 45 full-service banking centers and one loan production office throughout five states: 32 banking centers in 11 Kentucky communities - Covington, Crestview Hills, Elizabethtown, Florence, Frankfort, Georgetown, Lexington, Louisville, Owensboro, Shelbyville, and Shepherdsville; three banking centers in southern Indiana – Floyds Knobs, Jeffersonville, and New Albany; seven banking centers in six Florida communities (Tampa MSA) – Largo, Port Richey, St. Petersburg, Seminole, Tampa, and Temple Terrace; two banking centers in Tennessee – Cool Springs (Franklin) and Green Hills (Nashville) and one loan production office in Brentwood (Nashville); and one banking center in Norwood (Cincinnati), Ohio. The Bank offers internet banking at www.republicbank.com. The Bank also offers separately branded, nation-wide digital banking at www.mymemorybank.com. The Company has $5.3 billion in assets and is headquartered in Louisville, Kentucky. The Company’s Class A Common Stock is listed under the symbol “RBCAA” on the NASDAQ Global Select Market.

Republic Bank. It’s just easier here. ®

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the preceding paragraphs are based on our current expectations and assumptions regarding our business, the future impact to our balance sheet and income statement resulting from changes in interest rates, the ability to develop products and strategies in order to meet the Company’s long-term strategic goals, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Actual results could differ materially based upon factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including those factors set forth as “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2017. The Company undertakes no obligation to update any forward-looking statements. These forward-looking statements are made only as of the date of this release, and the Company undertakes no obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

         
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release

(all amounts other than per share amounts, number of employees, and number of banking centers
are expressed in thousands unless otherwise noted)

 
Balance Sheet Data
Jun. 30, 2018 Dec. 31, 2017 Jun. 30, 2017
Assets:
Cash and cash equivalents $ 386,956 $ 299,351 $ 332,695
Investment securities 485,622 591,458 525,684
Loans held for sale 26,337 16,989 11,756
Loans 4,195,984 4,014,034 3,916,320
Allowance for loan and lease losses   (45,047 )   (42,769 )   (37,898 )
Loans, net 4,150,937 3,971,265 3,878,422
Federal Home Loan Bank stock, at cost 32,067 32,067 32,067
Premises and equipment, net 46,485 45,605 44,255
Goodwill 16,300 16,300 16,300
Other real estate owned ("OREO") 115 300
Bank owned life insurance ("BOLI") 64,106 63,356 62,578
Other assets and accrued interest receivable   57,135     48,856     51,604  
Total assets $ 5,265,945   $ 5,085,362   $ 4,955,661  
 
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing $ 1,061,182 $ 1,022,042 $ 1,061,637
Interest-bearing   2,412,187     2,411,116     2,072,301  
Total deposits 3,473,369 3,433,158 3,133,938
 
Securities sold under agreements to repurchase and other short-term borrowings 175,291 204,021 113,334
Federal Home Loan Bank advances 860,000 737,500 1,002,500
Subordinated note 41,240 41,240 41,240
Other liabilities and accrued interest payable   52,037     37,019     37,758  
Total liabilities 4,601,937 4,452,938 4,328,770
 
Stockholders' equity   664,008     632,424     626,891  
Total liabilities and stockholders' equity $ 5,265,945   $ 5,085,362   $ 4,955,661  
 
       
Average Balance Sheet Data
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
2018 2017 2018 2017
Assets:
Investment securities, including FHLB stock $ 506,209 $ 597,818 $ 529,356 $ 592,250
Federal funds sold and other interest-earning deposits 276,246 130,650 279,684 157,181
Loans, including loans held for sale 4,092,388 3,730,379 4,087,247 3,740,004
Total interest-earning assets 4,874,843 4,458,847 4,896,287 4,489,435
Total assets 5,074,781 4,668,048 5,175,927 4,757,395
 
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits $ 1,146,403 $ 1,063,215 $ 1,232,652 $ 1,097,711
Interest-bearing deposits 2,410,330 2,224,127 2,413,220 2,218,205

Securities sold under agreements to repurchase and other short-term borrowings

178,063 179,594 217,532 198,896
Federal Home Loan Bank advances 593,187 500,027 569,613 548,826
Subordinated note 41,240 41,240 41,240 41,240
Total interest-bearing liabilities 3,222,820 2,944,988 3,241,605 3,007,167
Stockholders' equity 663,077 627,940 652,407 619,229
 

       
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Income Statement Data
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
2018 2017 2018 2017
 
Total interest income(5) $ 58,356 $ 47,821 $ 132,189 $ 108,704
Total interest expense   7,272   4,684   13,440   9,129
Net interest income 51,084 43,137 118,749 99,575
 
Provision for loan and lease losses 4,932 5,061 22,187 17,412
 
Noninterest income:
Service charges on deposit accounts 3,574 3,390 7,129 6,637
Net refund transfer fees 3,473 2,770 19,825 18,152
Mortgage banking income 1,316 1,445 2,336 2,605
Interchange fee income 2,891 2,547 5,558 4,873
Program fees 1,323 1,284 3,019 2,375
Increase in cash surrender value of BOLI 379 393 750 784
Net gains on OREO 320 249 452 391
Other   1,020   849   2,772   2,033
Total noninterest income   14,296   12,927   41,841   37,850
 
Noninterest expense:
Salaries and employee benefits 22,766 20,015 46,600 41,226
Occupancy and equipment, net 6,391 5,903 12,612 11,870
Communication and transportation 1,241 939 2,623 2,211
Marketing and development 1,283 1,409 2,199 2,413
FDIC insurance expense 345 300 870 750
Bank franchise tax expense 860 790 3,378 3,225
Data processing 2,443 1,695 4,829 3,347
Interchange related expense 1,098 1,071 2,105 2,129
Supplies 303 261 684 788
OREO expense 16 132 61 229
Legal and professional fees 728 596 1,771 1,348
Other   3,158   2,623   5,945   5,137
Total noninterest expense   40,632   35,734   83,677   74,673
 
Income before income tax expense 19,816 15,269 54,726 45,340
Income tax expense(1)   4,150   5,198   11,591   15,252
 
Net income $ 15,666 $ 10,071 $ 43,135 $ 30,088
 

       
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Selected Data and Ratios
 
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
2018 2017 2018 2017
Per Share Data:
 
Basic weighted average shares outstanding 21,187 21,151 20,939 20,918
Diluted weighted average shares outstanding 21,331 21,230 21,072 20,996
 
Period-end shares outstanding:
Class A Common Stock 18,677 18,618 18,677 18,618
Class B Common Stock 2,215 2,243 2,215 2,243
 
Book value per share(6) $ 31.78 $ 30.05 $ 31.78 $ 30.05
Tangible book value per share(6) 30.73 28.98 30.73 28.98
 
Earnings per share ("EPS"):
Basic EPS - Class A Common Stock $ 0.75 $ 0.48 $ 2.08 $ 1.45
Basic EPS - Class B Common Stock 0.68 0.44 1.89 1.32
Diluted EPS - Class A Common Stock 0.74 0.48 2.06 1.45
Diluted EPS - Class B Common Stock 0.68 0.44 1.88 1.32
 
Cash dividends declared per Common share:
Class A Common Stock $ 0.242 $ 0.220 $ 0.484 $ 0.429
Class B Common Stock 0.220 0.200 0.440 0.390
 
Performance Ratios:
 
Return on average assets 1.23 % 0.86 % 1.67 % 1.26 %
Return on average equity 9.45 6.42 13.22 9.72
Efficiency ratio(7) 62 64 52 54
Yield on average interest-earning assets(5) 4.79 4.29 5.40 4.84
Cost of average interest-bearing liabilities 0.90 0.64 0.83 0.61
Cost of average deposits(8) 0.44 0.28 0.40 0.25
Net interest spread(5) 3.89 3.65 4.57 4.23
Net interest margin - Total Company(5) 4.19 3.87 4.85 4.44
Net interest margin - Core Bank(2) 3.64 3.46 3.60 3.39
 
Other Information:
 
End of period FTEs(9) - Total Company 1,013 976 1,013 976
End of period FTEs - Core Bank 933 904 933 904
Number of full-service banking centers 45 45 45 45
 

       
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Credit Quality Data and Ratios As of and for the As of and for the
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
2018 2017 2018 2017
Credit Quality Asset Balances:
 
Nonperforming Assets - Total Company:
Loans on nonaccrual status $ 17,502 $ 15,467 $ 17,502 $ 15,467
Loans past due 90-days-or-more and still on accrual   858   335   858   335
Total nonperforming loans 18,360 15,802 18,360 15,802
OREO     300     300
Total nonperforming assets $ 18,360 $ 16,102 $ 18,360 $ 16,102
 
Nonperforming Assets - Core Bank(2):
Loans on nonaccrual status $ 17,502 $ 15,467 $ 17,502 $ 15,467
Loans past due 90-days-or-more and still on accrual   22   33   22   33
Total nonperforming loans 17,524 15,500 17,524 15,500
OREO     300     300
Total nonperforming assets $ 17,524 $ 15,800 $ 17,524 $ 15,800
 
Delinquent loans:
Delinquent loans - Core Bank $ 8,703 $ 6,844 $ 8,703 $ 6,844
Delinquent loans - RPG(3)   4,429   2,169   4,429   2,169
Total delinquent loans - Total Company $ 13,132 $ 9,013 $ 13,132 $ 9,013
 
 
Credit Quality Ratios - Total Company:
 
Nonperforming loans to total loans 0.44 % 0.40 % 0.44 % 0.40 %
Nonperforming assets to total loans (including OREO) 0.44 0.41 0.44 0.41
Nonperforming assets to total assets 0.35 0.32 0.35 0.32
Allowance for loan and lease losses to total loans 1.07 0.97 1.07 0.97
Allowance for loan and lease losses to nonperforming loans 245 240 245 240
Delinquent loans to total loans(4) 0.31 0.23 0.31 0.23
Net charge-offs to average loans (annualized) 1.19 1.02 0.97 0.66
 
Credit Quality Ratios - Core Bank:
 
Nonperforming loans to total loans 0.43 % 0.40 % 0.43 % 0.40 %
Nonperforming assets to total loans (including OREO) 0.43 0.41 0.43 0.41
Nonperforming assets to total assets 0.34 0.32 0.34 0.32
Allowance for loan and lease losses to total loans 0.76 0.76 0.76 0.76
Allowance for loan and lease losses to nonperforming loans 179 189 179 189
Delinquent loans to total loans 0.21 0.18 0.21 0.18
Net charge-offs to average loans (annualized) 0.05 0.03 0.04
 

         
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Balance Sheet Data
  Quarterly Comparison
Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sep. 30, 2017 Jun. 30, 2017
Assets:
Cash and cash equivalents $ 386,956 $ 362,122 $ 299,351 $ 329,862 $ 332,695
Investment securities 485,622 483,573 591,458 523,896 525,684
Loans held for sale 26,337 14,295 16,989 13,135 11,756
Loans 4,195,984 4,052,500 4,014,034 3,957,512 3,916,320
Allowance for loan and lease losses   (45,047 )   (52,341 )   (42,769 )   (40,191 )   (37,898 )
Loans, net 4,150,937 4,000,159 3,971,265 3,917,321 3,878,422
Federal Home Loan Bank stock, at cost 32,067 32,067 32,067 32,067 32,067
Premises and equipment, net 46,485 46,792 45,605 44,845 44,255
Goodwill 16,300 16,300 16,300 16,300 16,300
Other real estate owned 160 115 167 300
Bank owned life insurance 64,106 63,727 63,356 62,972 62,578
Other assets and accrued interest receivable   57,135     59,139     48,856     52,609     51,604  
Total assets $ 5,265,945   $ 5,078,334   $ 5,085,362   $ 4,993,174   $ 4,955,661  
 
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing $ 1,061,182 $ 1,241,127 $ 1,022,042 $ 1,040,414 $ 1,061,637
Interest-bearing   2,412,187     2,476,496     2,411,116     2,309,315     2,072,301  
Total deposits 3,473,369 3,717,623 3,433,158 3,349,729 3,133,938
 

Securities sold under agreements to repurchase and other short-term borrowings

175,291 175,682 204,021 173,311 113,334
Federal Home Loan Bank advances 860,000 440,000 737,500 757,500 1,002,500
Subordinated note 41,240 41,240 41,240 41,240 41,240
Other liabilities and accrued interest payable   52,037     50,535     37,019     38,107     37,758  
Total liabilities 4,601,937 4,425,080 4,452,938 4,359,887 4,328,770
 
Stockholders' equity   664,008     653,254     632,424     633,287     626,891  
Total liabilities and stockholders' equity $ 5,265,945   $ 5,078,334   $ 5,085,362   $ 4,993,174   $ 4,955,661  
 
 
 
Average Balance Sheet Data
  Quarterly Comparison
Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sep. 30, 2017 Jun. 30, 2017
Assets:
Investment securities, including FHLB stock $ 506,209 $ 552,760 $ 559,381 $ 552,821 $ 597,818
Federal funds sold and other interest-earning deposits 276,246 283,161 229,638 208,688 130,650
Loans, including loans held for sale 4,092,388 4,082,050 3,967,211 3,875,420 3,730,379
Total interest-earning assets 4,874,843 4,917,971 4,756,230 4,636,929 4,458,847
Total assets 5,074,781 5,278,204 4,953,134 4,834,653 4,668,048
 
Liabilities and Stockholders' Equity:
Noninterest-bearing deposits $ 1,146,403 $ 1,319,860 $ 1,045,939 $ 1,052,162 $ 1,063,215
Interest-bearing deposits 2,410,330 2,416,142 2,383,196 2,249,436 2,224,127

Securities sold under agreements to repurchase and other short-term borrowings

178,063 257,439 271,434 208,160 179,594
Federal Home Loan Bank advances 593,187 545,778 537,326 618,750 500,027
Subordinated note 41,240 41,240 41,240 41,240 41,240
Total interest-bearing liabilities 3,222,820 3,260,599 3,233,196 3,117,586 2,944,988
Stockholders' equity 663,077 641,624 640,686 633,874 627,940
 

         
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Income Statement Data
Three Months Ended
Jun. 30, 2018   Mar. 31, 2018   Dec. 31, 2017 Sep. 30, 2017 Jun. 30, 2017
 
Total interest income(5) $ 58,356 $ 73,833 $ 56,349 $ 53,725 $ 47,821
Total interest expense   7,272   6,168   5,711   5,418   4,684
Net interest income 51,084 67,665 50,638 48,307 43,137
 
Provision for loan and lease losses 4,932 17,255 6,071 4,221 5,061
 
Noninterest income:
Service charges on deposit accounts 3,574 3,555 3,325 3,395 3,390
Net refund transfer fees 3,473 16,352 171 177 2,770
Mortgage banking income 1,316 1,020 935 1,102 1,445
Interchange fee income 2,891 2,667 2,533 2,475 2,547
Program fees 1,323 1,696 1,851 1,597 1,284
Increase in cash surrender value of BOLI 379 371 384 394 393
Losses on available-for-sale debt securities (136)
Net gains on OREO 320 132 254 31 249
Other   1,020   1,752   873   1,203   849
Total noninterest income   14,296   27,545   10,190   10,374   12,927
 
Noninterest expense:
Salaries and employee benefits 22,766 23,834 20,502 20,505 20,015
Occupancy and equipment, net 6,391 6,221 6,518 6,806 5,903
Communication and transportation 1,241 1,382 1,261 1,239 939
Marketing and development 1,283 916 1,098 1,677 1,409
FDIC insurance expense 345 525 328 300 300
Bank franchise tax expense 860 2,518 652 749 790
Data processing 2,443 2,386 2,606 1,795 1,695
Interchange related expense 1,098 1,007 931 928 1,071
Supplies 303 381 565 241 261
OREO expense 16 45 104 55 132
Legal and professional fees 728 1,043 616 446 596
Other   3,158   2,787   2,964   3,285   2,623
Total noninterest expense   40,632   43,045   38,145   38,026   35,734
 
Income before income tax expense 19,816 34,910 16,612 16,434 15,269
Income tax expense(1)   4,150   7,441   11,774   5,728   5,198
 
Net income $ 15,666 $ 27,469 $ 4,838 $ 10,706 $ 10,071
 

         
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Selected Data and Ratios
As of and for the Three Months Ended
Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sep. 30, 2017 Jun. 30, 2017
Per Share Data:
 
Basic weighted average shares outstanding 21,187 20,920 21,149 21,153 21,151
Diluted weighted average shares outstanding 21,331 21,018 21,258 21,236 21,230
 
Period-end shares outstanding:
Class A Common Stock 18,677 18,645 18,607 18,618 18,618
Class B Common Stock 2,215 2,243 2,243 2,243 2,243
 
Book value per share(6) $ 31.78 $ 31.27 $ 30.33 $ 30.36 $ 30.05
Tangible book value per share(6) 30.73 30.22 29.27 29.29 28.98
 
Earnings per share ("EPS"):
Basic EPS - Class A Common Stock $ 0.75 $ 1.32 $ 0.23 $ 0.51 $ 0.48
Basic EPS - Class B Common Stock 0.68 1.21 0.21 0.47 0.44
Diluted EPS - Class A Common Stock 0.74 1.32 0.23 0.51 0.48
Diluted EPS - Class B Common Stock 0.68 1.20 0.21 0.47 0.44
 
Cash dividends declared per Common share:
Class A Common Stock $ 0.242 $ 0.242 $ 0.220 $ 0.220 $ 0.220
Class B Common Stock 0.220 0.220 0.200 0.200 0.200
 
Performance Ratios:
 
Return on average assets 1.23 % 2.08 % 0.39 % 0.89 % 0.86 %
Return on average equity 9.45 17.12 3.02 6.76 6.42
Efficiency ratio(7) 62 45 63 65 64
Yield on average interest-earning assets(5) 4.79 6.01 4.74 4.63 4.29
Cost of average interest-bearing liabilities 0.90 0.76 0.71 0.70 0.64
Cost of average deposits(8) 0.44 0.36 0.35 0.31 0.28
Net interest spread(5) 3.89 5.25 4.03 3.93 3.65
Net interest margin - Total Company(5) 4.19 5.50 4.26 4.17 3.87
Net interest margin - Core Bank(2) 3.64 3.55 3.72 3.68 3.46
 
Other Information:
 
End of period FTEs(9) - Total Company 1,013 1,003 997 970 976
End of period FTEs - Core Bank 933 922 915 896 904
Number of full-service banking centers 45 45 45 45 45
 

         
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)

(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted)

 
Credit Quality Data and Ratios
As of and for the Three Months Ended
Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sep. 30, 2017 Jun. 30, 2017
Credit Quality Asset Balances:
 
Nonperforming Assets - Total Company:
Loans on nonaccrual status $ 17,502 $ 14,849 $ 14,118 $ 15,475 $ 15,467
Loans past due 90-days-or-more and still on accrual   858   1,279   956   906   335
Total nonperforming loans 18,360 16,128 15,074 16,381 15,802
OREO     160   115   167   300
Total nonperforming assets $ 18,360 $ 16,288 $ 15,189 $ 16,548 $ 16,102
 
Nonperforming Assets - Core Bank(2):
Loans on nonaccrual status $ 17,502 $ 14,849 $ 14,118 $ 15,475 $ 15,467
Loans past due 90-days-or-more and still on accrual   22   27   19   55   33
Total nonperforming loans 17,524 14,876 14,137 15,530 15,500
OREO     160   115   167   300
Total nonperforming assets $ 17,524 $ 15,036 $ 14,252 $ 15,697 $ 15,800
 
Delinquent Loans:
Delinquent loans - Core Bank $ 8,703 $ 8,303 $ 8,460 $ 7,756 $ 6,844
Delinquent loans - RPG(3)(10)   4,429   17,530   5,641   4,270   2,169
Total delinquent loans - Total Company $ 13,132 $ 25,833 $ 14,101 $ 12,026 $ 9,013
 
 
Credit Quality Ratios - Total Company:
 
Nonperforming loans to total loans 0.44 % 0.40 % 0.38 % 0.41 % 0.40 %
Nonperforming assets to total loans (including OREO) 0.44 0.40 0.38 0.42 0.41
Nonperforming assets to total assets 0.35 0.32 0.30 0.33 0.32
Allowance for loan and lease losses to total loans 1.07 1.29 1.07 1.02 0.97
Allowance for loan and lease losses to nonperforming loans 245 325 284 245 240
Delinquent loans to total loans(4)(10) 0.31 0.64 0.35 0.30 0.23
Net charge-offs to average loans (annualized) 1.19 0.75 0.35 0.20 1.02
 
Credit Quality Ratios - Core Bank:
 
Nonperforming loans to total loans 0.43 % 0.37 % 0.36 % 0.40 % 0.40 %
Nonperforming assets to total loans (including OREO) 0.43 0.38 0.36 0.40 0.41
Nonperforming assets to total assets 0.34 0.31 0.28 0.32 0.32
Allowance for loan and lease losses to total loans 0.76 0.77 0.77 0.76 0.76
Allowance for loan and lease losses to nonperforming loans 179 205 213 190 189
Delinquent loans to total loans 0.21 0.21 0.21 0.20 0.18
Net charge-offs to average loans (annualized) 0.06 0.06 0.03 0.05
 

 

Republic Bancorp, Inc. Financial Information

Second Quarter 2018 Earnings Release (continued)

 

Segment Data:

Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar.

As of June 30, 2018, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute Republic Processing Group (“RPG) operations. The Bank’s Correspondent Lending channel and the Company’s national branchless banking platform, MemoryBank®, are considered part of the Traditional Banking segment.

Prior to the third quarter of 2017, management reported RPG as a segment consisting of its largest division, TRS, along with its relatively smaller divisions, Republic Payment Solutions (“RPS”), and RCS. During the third quarter of 2017, due to RCS’s growth in revenues relative to the total Company’s revenues, management identified TRS and RCS as separate reportable segments under the newly classified RPG operations. Also, as part of the updated segmentation, management is reporting the RPS division, which remained below thresholds to be classified a separate reportable segment, within the newly classified TRS segment. The reportable segments within RPG operations and divisions within those segments operate through the Bank. The Company has reclassified all prior periods to conform to the current presentation.

The table below provides the nature of segment operations and the primary drivers of net revenues by reportable segment:

   
Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue:
         
Core Banking:
 
Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its Digital and Correspondent Lending delivery channels. Loans, investments, and deposits.
 
Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit.
 
Mortgage Banking   Primarily originates, sells and services long-term, single family, first lien residential real estate loans primarily to clients in the Bank's market footprint.   Loan sales and servicing.
 
Republic Processing Group:
 
Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refund products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. Loans, refund transfers, and prepaid cards.
 
Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near prime borrowers. Unsecured, consumer loans.
 

The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2017 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless Republic can reasonably make specific segment allocations. The Company makes transactions among reportable segments at carrying value.

               
Republic Bancorp, Inc. Financial Information
Second Quarter 2018 Earnings Release (continued)
 

Segment information for the quarters and six months ended June 30, 2018 and 2017 follows:

 
Three Months Ended June 30, 2018
Core Banking Republic Processing Group ("RPG")
Total Tax Republic
Traditional       Warehouse       Mortgage       Core       Refund       Credit       Total       Total
(dollars in thousands)     Banking       Lending       Banking       Banking       Solutions       Solutions       RPG       Company
 
Net interest income $ 39,348 $ 4,164 $ 103 $ 43,615 $ 328 $ 7,141 $ 7,469 $ 51,084
 
Provision for loan and lease losses 523 250 773 (888 ) 5,047 4,159 4,932
 
Net refund transfer fees 3,473 3,473 3,473
Mortgage banking income 1,316 1,316 1,316
Program fees 124 1,199 1,323 1,323
Other noninterest income   7,725   11   49   7,785   80     319   399   8,184
Total noninterest income 7,725 11 1,365 9,101 3,677 1,518 5,195 14,296
 
Total noninterest expense   35,415   850   1,176   37,441   2,273     918   3,191   40,632
 
Income before income tax expense 11,135 3,075 292 14,502 2,620 2,694 5,314 19,816
Income tax expense   2,168   702   62   2,932   609     609   1,218   4,150
Net income $ 8,967 $ 2,373 $ 230 $ 11,570 $ 2,011   $ 2,085 $ 4,096 $ 15,666
 
Period-end assets $ 4,501,539 $ 634,452 $ 17,998 $ 5,153,989 $ 27,192 $ 84,764 $ 111,956 $ 5,265,945
 
Net interest margin 3.71 % 3.08 % NM 3.64 % NM NM NM 4.19 %
 
Net-revenue concentration* 73 % 6 % 2 % 81 % 6 % 13 % 19 % 100 %
 
 
 
Three Months Ended June 30, 2017
Core Banking Republic Processing Group ("RPG")
Total Tax Republic
Traditional Warehouse Mortgage Core Refund Credit Total Total
(dollars in thousands)     Banking       Lending       Banking       Banking       Solutions       Solutions       RPG       Company
 
Net interest income $ 33,434 $ 4,435 $ 86 $ 37,955 $ 157 $ 5,025 $ 5,182 $ 43,137
 
Provision for loan and lease losses 1,461 264 1,725 (738 ) 4,074 3,336 5,061
 
Net refund transfer fees 2,770 2,770 2,770
Mortgage banking income 1,445 1,445 1,445
Program fees 56 1,228 1,284 1,284
Other noninterest income   6,969   10   115   7,094   69     265   334   7,428
Total noninterest income 6,969 10 1,560 8,539 2,895 1,493 4,388 12,927
 
Total noninterest expense   31,185   822   984   32,991   1,971     772   2,743   35,734
 
Income before income tax expense 7,757 3,359 662 11,778 1,819 1,672 3,491 15,269
Income tax expense   2,471   1,228   232   3,931   660     607   1,267   5,198
Net income $ 5,286 $ 2,131 $ 430 $ 7,847 $ 1,159   $ 1,065 $ 2,224 $ 10,071
 
Period-end assets $ 4,283,741 $ 600,060 $ 13,920 $ 4,897,721 $ 18,849 $ 39,091 $ 57,940 $ 4,955,661
 
Net interest margin 3.44 % 3.62 % NM 3.46 % NM NM NM 3.87 %
 
Net-revenue concentration* 72 % 8 % 3 % 83 % 5 % 12 % 17 % 100 %

___________________

* Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue.

 

               
Six Months Ended June 30, 2018
Core Banking Republic Processing Group ("RPG")
Total Tax Republic
Traditional Warehouse Mortgage Core Refund Credit Total Total
(dollars in thousands)     Banking       Lending       Banking       Banking       Solutions       Solutions       RPG       Company
 
Net interest income $ 77,536 $ 7,755 $ 175 $ 85,466 $ 19,014 $ 14,269 $ 33,283 $ 118,749
 
Provision for loan and lease losses 1,462 271 1,733 12,501 7,953 20,454 22,187
 
Net refund transfer fees 19,825 19,825 19,825
Mortgage banking income 2,336 2,336 2,336
Program fees 183 2,836 3,019 3,019
Other noninterest income   14,727   19   87   14,833   1,190   638   1,828   16,661
Total noninterest income 14,727 19 2,423 17,169 21,198 3,474 24,672 41,841
 
Total noninterest expense   68,807   1,689   2,380   72,876   8,798   2,003   10,801   83,677
 
Income before income tax expense 21,994 5,814 218 28,026 18,913 7,787 26,700 54,726
Income tax expense   3,940   1,329   46   5,315   4,463   1,813   6,276   11,591
Net income $ 18,054 $ 4,485 $ 172 $ 22,711 $ 14,450 $ 5,974 $ 20,424 $ 43,135
 
Period-end assets $ 4,501,539 $ 634,452 $ 17,998 $ 5,153,989 $ 27,192 $ 84,764 $ 111,956 $ 5,265,945
 
Net interest margin 3.65 % 3.13 % NM 3.60 % NM NM NM 4.85 %
 
Net-revenue concentration* 57 % 5 % 2 % 64 % 25 % 11 % 36

%

100 %
 
 
 
Six Months Ended June 30, 2017
Core Banking Republic Processing Group ("RPG")
Total Tax Republic
Traditional Warehouse Mortgage Core Refund Credit Total Total
(dollars in thousands)     Banking       Lending       Banking       Banking       Solutions       Solutions       RPG       Company
 
Net interest income $ 66,095 $ 8,335 $ 153 $ 74,583 $ 15,119 $ 9,873 $ 24,992 $ 99,575
 
Provision for loan and lease losses 1,928 38 1,966 7,603 7,843 15,446 17,412
 
Net refund transfer fees 18,152 18,152 18,152
Mortgage banking income 2,605 2,605 2,605
Program fees 39 2,336 2,375 2,375
Other noninterest income   13,488   16   127   13,631   137   950   1,087   14,718
Total noninterest income 13,488 16 2,732 16,236 18,328 3,286 21,614 37,850
 
Total noninterest expense   61,273   1,599   2,198   65,070   8,040   1,563   9,603   74,673
 
Income before income tax expense 16,382 6,714 687 23,783 17,804 3,753 21,557 45,340
Income tax expense   4,733   2,455   241   7,429   6,461   1,362   7,823   15,252
Net income $ 11,649 $ 4,259 $ 446 $ 16,354 $ 11,343 $ 2,391 $ 13,734 $ 30,088
 
Period-end assets $ 4,283,741 $ 600,060 $ 13,920 $ 4,897,721 $ 18,849 $ 39,091 $ 57,940 $ 4,955,661
 
Net interest margin 3.37 % 3.60 % NM 3.39 % NM NM NM 4.44 %
 
Net-revenue concentration* 58 % 6 % 2 % 66 % 24 % 10 % 34

%

100 %

___________________

* Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue.

 

 

Republic Bancorp, Inc. Financial Information

Second Quarter 2018 Earnings Release (continued)

 

(1)

The 2017 Tax Cuts and Jobs Act (“TCJA”), enacted on December 22, 2017, lowered the federal corporate tax rate from 35% to 21%, effective January 1, 2018. With the TCJA’s meaningful impact on the first and second quarter of 2018 and the fourth quarter of 2017, the Company’s effective tax rate per quarter was as follows: 20.9% (quarter ended June 30, 2018); 21.3% (quarter ended March 31, 2018); 70.9% (quarter ended December 31, 2017); 34.9% (quarter ended September 30, 2017); and 34.0% (quarter ended June 30, 2017).

 

A $6.3 million charge to income tax expense upon remeasurement of the Company’s deferred tax assets and liabilities at a 21% corporate tax rate drove the relatively high effective tax rate for the fourth quarter of 2017.

 

(2)

“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending, and Mortgage Banking segments.

 

(3)

Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit Solutions segments.

 

(4)

The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due.

 

(5)

The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The amount of loan fee income included in total interest income was $8.5 million and $6.4 million for the quarters ended June 30, 2018 and 2017. The amount of loan fee income included in total interest income was $35.4 million and $27.7 million for the six months ended June 30, 2018 and 2017.

 

The amount of loan fee income included in total interest income per quarter was as follows: $8.5 million (quarter ended June 30, 2018); $26.9 million (quarter ended March 31, 2018); $9.4 million (quarter ended December 31, 2017); $9.1 million (quarter ended September 30, 2017); and $6.4 million (quarter ended June 30, 2017).

 

Interest income for Easy Advances (“EAs”) is composed entirely of loan fees. The loan fees disclosed above included EA fees of $17.8 million and $14.2 million for the six months ended June 30, 2018 and 2017. EAs are only offered during the first two months of each year.

 

(6)

The following table provides a reconciliation of total stockholders’ equity in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) to tangible stockholders’ equity in accordance with applicable regulatory requirements, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

 
         
Quarterly Comparison
(dollars in thousands, except per share data) Jun. 30, 2018 Mar. 31, 2018   Dec. 31, 2017     Sep. 30, 2017     Jun. 30, 2017  
 
Total stockholders' equity - GAAP (a) $ 664,008 $ 653,254 $ 632,424 $ 633,287 $ 626,891
Less: Goodwill 16,300 16,300 16,300 16,300 16,300
Less: Mortgage servicing rights 4,914 4,925 5,044 5,128 5,159
Less: Core deposit intangible   756   807   858   911   964
Tangible stockholders' equity - Non-GAAP (c) $ 642,038 $ 631,222 $ 610,222 $ 610,948 $ 604,468
 
Total assets - GAAP (b) $ 5,265,945 $ 5,078,334 $ 5,085,362 $ 4,993,174 $ 4,955,661
Less: Goodwill 16,300 16,300 16,300 16,300 16,300
Less: Mortgage servicing rights 4,914 4,925 5,044 5,128 5,159
Less: Core deposit intangible   756   807   858   911   964
Tangible assets - Non-GAAP (d) $ 5,243,975 $ 5,056,302 $ 5,063,160 $ 4,970,835 $ 4,933,238
 
Total stockholders' equity to total assets - GAAP (a/b) 12.61 % 12.86 % 12.44 % 12.68 % 12.65 %
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d) 12.24 % 12.48 % 12.05 % 12.29 % 12.25 %
 
Number of shares outstanding (e)   20,892   20,888   20,850   20,861   20,861
 
Book value per share - GAAP (a/e) $ 31.78 $ 31.27 $ 30.33 $ 30.36 $ 30.05
Tangible book value per share - Non-GAAP (c/e) 30.73 30.22 29.27 29.29 28.98
 

 

Republic Bancorp, Inc. Financial Information

Second Quarter 2018 Earnings Release (continued)

 

(7)

The efficiency ratio, a non-GAAP measure, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes net gains (losses) on sales, calls, and impairment of investment securities, if applicable.

 

(8)

The cost of average deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average noninterest-bearing deposits.

 

(9)

FTEs – Full-time-equivalent employees.

 

(10)

Delinquent loans for the RPG segment included $13 million of EAs at March 31, 2018. EAs were only offered during the first two months of 2018. EAs do not have a contractual due date but the Company considers an EA delinquent if it remains unpaid three weeks after the taxpayer customer’s tax return is submitted to the applicable taxing authority. All unpaid EAs are charged-off by the end of the second quarter of each year.

 

NM – Not meaningful

Contacts

Republic Bancorp, Inc.
Kevin Sipes, 502-560-8628
Executive Vice President & Chief Financial Officer

Social Media Profiles

Contacts

Republic Bancorp, Inc.
Kevin Sipes, 502-560-8628
Executive Vice President & Chief Financial Officer