Louisville, KY April 10, 2003 Business WireRepublic Bancorp, Inc. (Republic) (Nasdaq:RBCAA - News), the holding company
for Republic Bank & Trust Company and Republic Bank & Trust Company of
Indiana, completed another record quarter of earnings for the first quarter
of 2003. "Robust earnings, steady asset growth and sound asset quality were
continuing themes at Republic during the first quarter of 2003, as we once
again completed another record quarter of earnings," commented Steve Trager,
President and CEO of Republic.
Topping $1.8 billion in assets at quarter-end, Republic recorded $10.0
million in net income for the first quarter of 2003 compared to $6.7 million
during the same period in 2002. Diluted earnings per Class A Common shares
increased 45% to $0.58. Return on average assets (ROA) and return on average
equity (ROE) were 2.18% and 24.96%, respectively, compared to 1.65% and
20.40% during the first quarter of 2002. "We exceeded our performance goals
while also maintaining our sound asset quality as our ratio of delinquent
loans to total loans was a low 0.96% at March 31, 2003 and our ratio of non
performing loans to total loans was 0.88%," Trager further commented.
The Company's traditional banking activities continued to perform well
during the first quarter of 2003. Revenue from the Company's mortgage
banking operation surpassed all previous quarterly highs, reaching $5.4
million in gains on the sale of loans into the secondary market. Net
interest income, which benefited from management strategies implemented
in 2002 and an increase in Refund Anticipation loan volume, grew $5.2
million for the first quarter of 2003 compared to the same period in
2002. And, due to a steadily growing transaction account base resulting
from a continued focus on gathering lower-cost deposits, deposit fee
income increased from $1.8 million in the first quarter of 2002 to $2.3
million in the first quarter of this year.
Gathering lower-cost deposits was a sustained, Company-wide, focus
for Republic during the first quarter of 2003. The Company's cash
management area continued to attract major client relationships through
promotion of the "Premier First" money market and "Free" business
checking products, as well as business on-line banking and lock-box
services. Retail checking accounts grew during the first quarter as
the Company added 4,600 new personal checking accounts through new
banking centers and by continuing to create full-bank relationships in
conjunction with the "$999" fixed-rate loan promotion. "We remain
committed to further enhancing our profitability through growth in
low-cost deposits by making Republic the first choice for retail
and commercial deposit relationships," commented Cathy Slider, Senior
Vice President of Cash Management for Republic Bank & Trust Company.
"Over the past few years, our success has allowed the Company to
offer new and exciting products and services to a growing client
base," stated Mike Keene, President of Republic Financial Services.
"Refunds Now®, a subsidiary of Republic Bank & Trust Company that
primarily operates during the first quarter of each year, offers
electronic tax refund processing to taxpayers nationwide. During
the first quarter of 2003, Refunds Now was a key contributor to
the Company's success processing over $1 billion in tax refunds,
resulting in a 42% increase in the number of bank product
transactions. 'Honor Plus', 'Currency Connection(TM)', 'Ultra Cash®'
and 'Deferred Deposit Transactions' are four newer non-traditional
products that we introduced in the latter half of 2001, and as a
way to offer better and more comprehensive service to our clients,
we introduced our own credit card program during the first quarter
of this year. We remain optimistic that these newly developed
products can become meaningful contributors to the Company's
bottom-line in the future through managed growth," Keene further
stated.
Steve Trager concluded by saying, "We are very proud of our
accomplishments during the first quarter and look forward with
optimism to the remainder of 2003. During the first quarter of
this year, we opened our 26th banking center in the Hikes Point
community in Louisville, and we anticipate expanding our number of
locations to over thirty by year-end. We also have high hopes this
year for our '$999' commercial real estate product, as well as our
new 'Business Overdraft Honor' product, which we introduced in the
first quarter of 2003 to our small business clientele. There is a
lot to be excited about at Republic and we will continue to spread
the word about our spectacular service and tremendous success story."
Neighborhood Banking. Republic Bancorp, Inc., has 26 banking centers,
and is the parent company of: Republic Bank & Trust Company with 24
banking centers in 7 Kentucky communities - Bowling Green,
Elizabethtown, Frankfort, Lexington, Louisville, Owensboro, and
Shelbyville, with five additional banking centers in Louisville and
one banking center in Lexington under construction; Republic Bank &
Trust Company of Indiana with 2 banking centers in Clarksville and
New Albany, Indiana; and Refunds Now, a nationwide tax refund loan
and check provider. Republic Bank offers internet banking at
www.republicbank.com. Republic Bank was the recipient of the 2002
Community Partnership Award from the Federal Home Loan Bank of
Cincinnati. Republic Bancorp, Inc. has $1.8 billion in assets and
$1 billion in trust assets under custody and management. Republic
Bancorp, Inc., headquartered in Louisville, KY, is traded on
the NASDAQ (RBCAA).
Statements in this press release relating to Republic's plans,
objectives, or future performance are forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995. Such statements are based on management's current
expectations. Republic's actual strategies and results in future
periods may differ materially from those currently expected due
to various risks and uncertainties, including those discussed in
Republic's 2002 Form 10-K filed with the Securities and Exchange
Commission.
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(in thousands)
Statement of Financial Condition
March 31, December 31,
2003 2002
Assets ---------- ----------
Cash and cash equivalents $ 57,302 $ 39,853
Securities available for sale 244,512 203,047
Securities to be held to maturity 73,718 85,412
Mortgage loans held for sale 38,311 65,695
Loans 1,345,513 1,310,063
Allowance for loan losses (11,658) (10,148)
FHLB stock 18,561 18,324
Other assets 44,652 40,460
---------- ----------
Total Assets $1,810,911 $1,752,706
========== ==========
Liabilities and Equity
Non-interest bearing deposits $ 191,445 $ 175,460
Interest bearing deposits 988,626 864,730
---------- ----------
Total deposits 1,180,071 1,040,190
Short-term borrowings 134,154 224,929
Other borrowed funds 304,383 319,299
Other liabilities 32,140 17,492
---------- ----------
Total liabilities 1,650,748 1,601,910
Stockholders' equity 160,163 150,796
---------- ----------
Total Liabilities and Equity $1,810,911 $1,752,706
========== ==========
Average Balances
First quarter Ended March 31,
2003 2002
---------- ----------
Assets
Fed funds sold and other $ 39,841 $ 74,387
Investments, including FHLB stock 312,858 285,681
Loans, including loans held for sale 1,400,665 1,197,597
Total earning assets 1,753,364 1,557,665
Total assets 1,824,448 1,614,011
Liabilities and Equity
Non-interest bearing deposits $ 204,929 $ 153,944
Interest bearing deposits 934,500 749,867
Repurchase agreements and other
short-term borrowings 194,194 273,049
FHLB borrowing 306,902 289,176
Total interest bearing liabilities 1,435,596 1,312,092
Stockholders' equity 159,482 130,537
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(continued) (in thousands, except per share data)
First quarter Ended
March 31,
----------------
2003 2002
Income Statement Data
Total interest income (1) $32,730 $29,329
Total interest expense 8,952 10,719
------- -------
Net interest income 23,778 18,610
Provision for loan losses 4,341 2,697
Service charges on deposit accounts 2,320 1,817
Electronic refund check fees 3,169 2,793
Net gain on sale of loans 5,429 1,946
Other 816 1,052
------- -------
Total non-interest income 11,734 7,608
Salaries and employee benefits 8,337 7,505
Occupancy and equipment 2,826 2,288
Computer services 405 377
Communication and transportation 860 636
Marketing and development 849 574
Bankshares tax 496 417
Supplies 406 265
Other 1,654 1,248
------- -------
Total non-interest expense 15,833 13,310
Net income before taxes 15,338 10,211
Income taxes 5,387 3,552
------- -------
Net income $ 9,951 $ 6,659
======= =======
Per Share Data
Basic average shares outstanding 16,852 16,129
Diluted average shares outstanding 17,111 17,079
Book value per share (2) $ 9.33 $ 8.11
Basic earnings per Class A Common share 0.59 0.41
Basic earnings per Class B Common share 0.59 0.41
Diluted earnings per Class A Common share 0.58 0.40
Diluted earnings per Class B Common share 0.58 0.39
Cash dividends declared per share
Class A Common 0.055 0.044
Class B Common 0.050 0.040
(1) The amount of fees on loans in total interest income was $7.6
million and $3.9 million for the quarters ended March 31, 2003
and 2002, respectively.
(2) Equals total stockholders' equity, exclusive of accumulated
other comprehensive income (loss), divided by total Class A
and Class B Common shares outstanding.
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(continued) (dollars in thousands, except per share data)
First quarter Ended
March 31,
--------------
2003 2002
Performance ratios
Return on average assets (ROA) 2.18% 1.65%
Return on average stockholders' equity (ROE) 24.96 20.40
Yield on average earning assets 7.47 7.53
Cost of interest bearing liabilities 2.49 3.27
Net interest spread 4.97 4.26
Net interest margin 5.42 4.78
Efficiency ratio (3) 45 51
Asset quality
Loans on non-accrual status $11,142 $5,180
Loans past due 90 days or more 685 1,271
Total non-performing loans 11,827 6,451
Other real estate owned 365 149
Total non-performing assets 12,192 6,600
Non-performing loans to total loans 0.88% 0.56%
Non-performing assets to total loans 0.90 0.57
Net loan charge-offs to average loans 0.81 0.72
Allowance for loan losses to total loans 0.86 0.79
Allowance for loan losses to non-performing loans 99 142
Delinquent loans to total loans 0.96 1.10
Other key data
End-of-period full-time equivalent employees 591 552
Number of bank offices 26 23
(3) Equals non-interest expense divided by the sum of net interest
income and non-interest income.
Contact:
Republic Bancorp, Inc., Louisville
Kevin Sipes
502-560-8628
www.republicbank.com
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
Republic Bancorp's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties.
For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in the Company's
Annual Report or Form 10-K for the most recently ended fiscal year.