LOUISVILLE, Ky.--(BUSINESS WIRE)--
Republic Bancorp completed 2008 with net income of $33.7 million for the
year, a 35% increase over 2007. Steve Trager, Republic's President and
CEO, noted "We are extremely proud of our core operations, as the
Company reported year-over-year earnings growth in a turbulent economic
environment. The foundation for this success was solidly laid within our
organization's business model 25 years ago. As a Company, we are
committed to maintaining exceptional credit quality in order to create
long-term shareholder value. Further, we will never sacrifice long-term
shareholder value for the reward of short-term gain. We believe this
business model built on prudent underwriting standards will always
withstand the test of time. Our solid results were recognized by the
market in 2008 with a 65% increase in our stock price as we closed the
year at $27.20 per share."
Three Months Three Months
Year Ended Year Ended Ended Ended
(dollars in thousands, 12/31/08 12/31/07 12/31/08 12/31/07
except per share data)
Total Company
Net Income $ 33,652 $ 24,913 $ 604 $ 6,406
Diluted Earnings per Class 1.62 1.20 0.03 0.31
A Share
Period End Total Assets 3,939,368 3,165,359 3,939,368 3,165,359
Republic Bancorp, Inc. ("Republic" or the "Company") (NASDAQ:
RBCAA) is the holding company for Republic Bank & Trust Company and
Republic Bank
Operating revenue in the fourth quarter of 2008 was consistent with the
Company's record annual net income. Overall, net income for the quarter
was $604,000 with diluted earnings per Class A common share of $0.03
reflecting the following significant items in comparison to the fourth
quarter of 2007:
1) The Company recorded a net impairment on its security portfolio of
$5.5 million during the fourth quarter of 2008 compared to a net gain of
$8,000 during the same period in 2007. The fourth quarter 2008 net
impairment reflects an Other-Than-Temporary-Impairment ("OTTI") charge
of $6.9 million on its private label mortgage backed securities
portfolio as a result of mark-to-market accounting rules. This
impairment was offset by a gain of $1.4 million for government agency
securities that the Company sold during the quarter.
2) Due to the significant reduction in long-term interest rates during
the fourth quarter of 2008, the fair value of the Company's mortgage
servicing rights declined substantially, as projected pre-payment speeds
of the underlying loans increased dramatically. As a result, the Company
recorded a $1.3 million impairment charge during the fourth quarter of
2008. No such charges occurred in 2007.
3) The Company chose to pay fewer bonuses in 2007 and recorded a credit
to salary expense of $2.6 million during the fourth quarter of 2007 for
the reversal of previous bonus accruals. In contrast, the Company
recorded a credit of $650,000 during the fourth quarter of 2008 for the
reversal of previous bonus accruals.
4) The Company recorded a large insurance settlement gain of $1.9
million during the fourth quarter of 2007 related to the final
settlement of its corporate center fire that occurred in late 2006. No
such gain occurred in 2008.
5) The Company chose to utilize its traditional funding sources to fund
its anticipated first quarter 2009 refund anticipation loan volume as
opposed to a securitization vehicle which has been used the past three
years. In order to ensure that the funding was in place, Republic began
additional borrowing during the fourth quarter of 2008, primarily in the
form of brokered deposits. As a result, the Company incurred a
substantial portion of the funding costs for the first quarter 2009
program in the 2008 calendar year. Overall, Tax Refund Solutions ("TRS")
contributed negative net interest income of $2.2 million for the fourth
quarter of 2008 compared to negative net interest income of $170,000 for
the fourth quarter of 2007.
Three Months Three Months
Ended Ended
(dollars in thousands) 12/31/08 12/31/07 Change
Items discussed in the preceding bullet
points above
and their impact on pre tax net income
for the quarter
(1) Net gain (loss) on sales, calls and
impairments $ (5,484 ) $ 8 $ (5,492 )
of securities
(2) Impairment charge on mortgage (1,255 ) - (1,255 )
servicing rights
(3) Reversal of bonus accruals 650 2,606 (1,956 )
(4) Insurance settlement gain - 1,877 (1,877 )
(5) Negative impact of TRS funding (2,207 ) (170 ) (2,037 )
Total effect on pre tax net income $ (8,296 ) $ 4,321 $ (12,617 )
Total Company non interest expenses increased $4.7 million for the
fourth quarter of 2008 to $26.2 million. Approximately $661,000 of the
increase in non interest expenses was associated with TRS, as the
Company recruited, hired, and began to train a significant number of
seasonal staff members for the upcoming tax season. The remaining $4.0
million of the increase related primarily to the traditional banking
segment and resulted from an increase in personnel and occupancy costs
associated with the opening of nine new banking centers over the past 15
months.
As of December 31, 2008, approximately 97% of the Company's real estate
secured loans were in Republic's core market of Kentucky and southern
Indiana. Home values in the Company's core market area have been more
stable than many other parts of the country. While stable real estate
values are a positive factor in achieving low loan losses, Republic has
not been immune to the economic downturn that is affecting financial
institutions across the country. Compared to December 31, 2007,
Republic's non performing loans to total loans ratio increased from
0.40% to 0.58% as of year end 2008. The Company's overall asset quality
remained substantially better than its peer as presented in the FDIC'sSeptember 30, 2008 Uniform Bank Performance Report ("UBPR"), which
compiles data on 303 banks across the United States with $778 million to
$3.1 billion in total average assets.
"As we conclude another successful year, I am most optimistic about our
prospects for 2009. Our capital position is strong and is considered
well-capitalized under regulatory guidelines, our credit quality is
solid, our net interest margin is healthy, and our overhead costs are
well contained. In addition, REPUBLIC BANK IS OPEN FOR LENDING. As
long-term interest rates declined during December, demand for our 15-
and 30-year fixed rate loan products increased substantially, boding
well for a good start in 2009. As a strong, professional team, we are
committed to remaining focused on the long-term value of the Company, to
responding quickly and thoughtfully to changes and challenges, and to
continuing to meet the banking needs of the communities we serve. We are
proud to remind our clients, our associates and our shareholders, "we
were here for you yesterday, we are here for you today, and we will be
here for you tomorrow,"(TM) concluded Steve Trager.
Republic Bancorp, Inc. (Republic) has 45 banking centers and is the
parent company of: Republic Bank & Trust Company with 36 banking centers
in 14 Kentucky communities - Bowling Green, Covington, Crestwood,
Elizabethtown, Florence, Fort Wright, Frankfort, Georgetown,
Independence Lexington, Louisville, Owensboro, Shelbyville and
Shepherdsville and three banking centers in southern Indiana: Floyds
Knobs, Jeffersonville and New Albany. Republic Bank has banking centers
in Hudson, Palm Harbor, Port Richey, New Port Richey and Temple Terrace,
Florida as well as Cincinnati, Ohio. Republic operates Tax Refund
Solutions, a nationwide tax refund loan and check provider. Republic
offers internet banking at www.republicbank.com.
Republic has $3.9 billion in assets and $1 billion in trust assets under
custody and management. Republic is headquartered in Louisville,
Kentucky, and Republic's Class A Common Stock is listed under the symbol
'RBCAA' on the NASDAQ Global Select Market.
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 2007 Form 10-K
and subsequent 10-Qs filed with the Securities and Exchange Commission.
Republic Bancorp, Inc. Financial Information
Fourth Quarter 2008 Earnings Release
(all amounts other than per share amounts and number of employees and number of
banking centers are expressed in thousands unless otherwise noted)
Balance Sheet Data
Dec. 31, 2008 Dec. 31, 2007
Assets:
Cash and cash equivalents $ 616,303 $ 86,177
Investment securities 904,674 580,636
Mortgage loans held for sale 11,298 4,278
Loans 2,303,857 2,397,073
Allowance for loan losses (14,832 ) (12,735 )
Federal Home Loan Bank stock, at cost 25,082 23,955
Premises and equipment, net 42,885 39,706
Goodwill 10,168 10,168
Other assets and accrued interest receivable 39,933 36,101
Total assets $ 3,939,368 $ 3,165,359
Liabilities and Stockholders' Equity:
Deposits:
Non interest-bearing $ 273,203 $ 279,457
Interest-bearing 2,470,166 1,689,355
Total deposits 2,743,369 1,968,812
Securities sold under agreements to 339,012 398,296
repurchase and other short-term borrowings
Federal Home Loan Bank advances 515,234 478,550
Subordinated note 41,240 41,240
Other liabilities and accrued interest payable 24,591 29,601
Total liabilities 3,663,446 2,916,499
Stockholders' equity 275,922 248,860
Total liabilities and Stockholders' equity $ 3,939,368 $ 3,165,359
Average Balance Sheet
Data
Fourth Quarter Ended Dec. 31, Year Ended Dec. 31,
2008 2007 2008 2007
Assets:
Investment securities $ 792,641 $ 637,760 $ 629,626 $ 609,189
Federal funds sold and 232,591 6,073 92,978 7,437
other
Loans and fees 2,315,382 2,405,011 2,369,691 2,359,617
Total earning assets 3,340,614 3,048,844 3,092,295 2,976,243
Total assets 3,470,788 3,172,261 3,232,435 3,091,933
Liabilities and
Stockholders' Equity:
Non interest-bearing $ 269,903 $ 272,872 $ 321,308 $ 281,926
deposits
Interest-bearing 1,940,405 1,536,054 1,599,280 1,441,383
deposits
Securities sold under
agreements to 381,695 430,248 375,676 433,809
repurchase and other
short-term borrowings
Federal Home Loan Bank 536,161 616,134 588,381 623,050
advances
Subordinated note 41,240 41,240 41,240 41,240
Total interest-bearing 2,899,501 2,623,676 2,604,577 2,539,482
liabilities
Stockholders' equity 276,663 246,084 267,578 242,967
Income Statement Data
Fourth Quarter Ended Dec. 31, Year Ended Dec. 31,
2008 2007 2008 2007
Total interest income (1) $ 44,782 $ 49,705 $ 202,142 $ 199,097
Total interest expense 16,805 26,150 72,418 104,619
Net interest income 27,977 23,555 129,724 94,478
Provision for loan losses 1,753 1,617 16,205 6,820
Non interest income:
Service charges on 4,809 4,897 19,404 18,577
deposit accounts
Electronic refund check 88 - 17,756 4,189
fees
Net RAL securitization 317 59 13,347 3,772
income
Mortgage banking income (270 ) 922 3,536 2,973
Debit card interchange 1,187 1,171 4,776 4,387
fee income
Net gain (loss) on sales,
calls and impairment of (5,484 ) 8 (14,364 ) 8
securities
Insurance settlement gain - 1,877 - 1,877
Other 313 410 1,399 2,009
Total non interest income 960 9,344 45,854 37,792
Non interest expenses:
Salaries and employee 12,392 9,459 52,118 44,162
benefits
Occupancy and equipment, 5,456 5,109 19,760 17,904
net
Communication and 1,426 1,224 4,672 3,785
transportation
Marketing and development 866 805 9,208 3,287
Bank franchise tax 573 630 2,598 2,552
expense
Data processing 739 768 2,771 2,675
Debit card interchange 590 582 2,402 2,263
expense
Supplies 392 450 1,649 1,749
Other 3,762 2,451 12,308 8,879
Total non interest 26,196 21,478 107,486 87,256
expenses
Income before income tax 988 9,804 51,887 38,194
expense
Income tax expense 384 3,398 18,235 13,281
Net income $ 604 $ 6,406 $ 33,652 $ 24,913
Fourth Quarter Ended Dec. 31, Year Ended Dec. 31,
2008 2007 2008 2007
Per Share Data:
Basic average shares 20,615 20,284 20,518 20,458
outstanding
Diluted average shares 20,886 20,573 20,824 20,840
outstanding
End of period shares
outstanding:
Class A Common Stock 18,318 17,958 18,318 17,958
Class B Common Stock 2,310 2,344 2,310 2,344
Book value per share $ 13.38 $ 12.26 $ 13.38 $ 12.26
Earnings per share:
Basic earnings per Class 0.03 0.32 1.65 1.22
A Common Stock
Basic earnings per Class 0.02 0.31 1.60 1.18
B Common Stock
Diluted earnings per 0.03 0.31 1.62 1.20
Class A Common Stock
Diluted earnings per 0.02 0.30 1.58 1.16
Class B Common Stock
Cash dividends declared
per share:
Class A Common Stock 0.121 0.110 0.473 0.424
Class B Common Stock 0.110 0.100 0.430 0.386
Performance Ratios:
Return on average assets 0.07 % 0.81 % 1.04 % 0.81 %
Return on average equity 0.87 10.41 12.58 10.25
Efficiency ratio (2) 91 65 61 66
Yield on average earning 5.36 6.52 6.54 6.69
assets
Cost of interest-bearing 2.32 3.99 2.78 4.12
liabilities
Net interest spread 3.04 2.53 3.76 2.57
Net interest margin 3.35 3.09 4.20 3.17
Asset Quality Ratios:
Loans on non-accrual 11,324 8,303 11,324 8,303
status
Loans past due 90 days or 2,133 1,318 2,133 1,318
more and still on accrual
Total non-performing 13,457 9,621 13,457 9,621
loans
Other real estate owned 5,737 795 5,737 795
Total non-performing 19,194 10,416 19,194 10,416
assets
Non-performing loans to 0.58 % 0.40 % 0.58 % 0.40 %
total loans
Non-performing assets to 0.49 0.33 0.49 0.33
total assets
Allowance for loan losses 0.64 0.53 0.64 0.53
to total loans
Allowance for loan losses 110 132 110 132
to non-performing loans
Net loan charge-offs to
average loans - Total 0.20 0.16 0.60 0.22
Company
Net loan charge-offs to
average loans - 0.25 0.22 0.26 0.10
Traditional Banking
Segment
Delinquent loans to total 1.07 0.69 1.07 0.69
loans (3)
Other Information:
End of period full-time 724 727 724 727
equivalent employees
Number of banking centers 45 40 45 40
at period end
Balance Sheet
Data
Quarterly Comparison
Dec. 31, 2008 Sept. 30, June 30, 2008 March 31, Dec. 31, 2007
2008 2008
Assets:
Cash and cash $ 616,303 $ 72,735 $ 88,565 $ 102,726 $ 86,177
equivalents
Investment 904,674 546,328 510,661 552,320 580,636
securities
Mortgage loans 11,298 6,758 11,621 10,866 4,278
held for sale
Loans 2,303,857 2,318,373 2,348,509 2,360,610 2,397,073
Allowance for (14,832 ) (14,247 ) (17,995 ) (15,025 ) (12,735 )
loan losses
Federal Home
Loan Bank stock, 25,082 25,082 24,754 24,433 23,955
at cost
Premises and 42,885 42,225 39,859 39,373 39,706
Equipment, net
Goodwill 10,168 10,168 10,168 10,168 10,168
Other assets and
interest 39,933 37,632 37,067 38,560 36,101
receivable
Total assets $ 3,939,368 $ 3,045,054 $ 3,053,209 $ 3,124,031 $ 3,165,359
Liabilities and
Stockholders'
Equity:
Deposits:
Non $ 273,203 $ 279,260 $ 293,210 $ 324,279 $ 279,457
interest-bearing
Interest-bearing 2,470,166 1,521,607 1,335,743 1,481,157 1,689,355
Total deposits 2,743,369 1,800,867 1,628,953 1,805,436 1,968,812
Securities sold
under agreements
to 339,012 322,608 330,730 329,472 398,296
repurchase and
other short-term
borrowings
Federal Home
Loan Bank 515,234 577,294 749,837 623,580 478,550
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Other
liabilities and 24,591 25,808 31,461 61,398 29,601
accrued interest
payable
Total 3,663,446 2,767,817 2,782,221 2,861,126 2,916,499
liabilities
Stockholders' 275,922 277,237 270,988 262,905 248,860
equity
Total
liabilities and $ 3,939,368 $ 3,045,054 $ 3,053,209 $ 3,124,031 $ 3,165,359
Stockholders'
equity
Average Balance
Sheet Data
Quarterly Comparison
Dec. 31, 2008 Sept. 30, June 30, 2008 March 31, Dec. 31, 2007
2008 2008
Assets:
Investment $ 792,641 $ 538,270 $ 562,322 $ 624,470 $ 637,760
securities
Federal funds 232,591 7,723 7,661 119,573 6,073
sold and other
Loans and fees 2,315,382 2,340,007 2,361,208 2,463,090 2,405,011
Total earning 3,340,614 2,886,000 2,931,191 3,207,133 3,048,844
assets
Total assets 3,470,788 3,010,211 3,055,623 3,393,186 3,172,261
Liabilities and
Stockholders'
Equity:
Non
interest-bearing $ 269,903 $ 279,061 $ 301,421 $ 435,867 $ 272,872
deposits
Interest-bearing 1,940,405 1,413,704 1,360,818 1,680,480 1,536,054
deposits
Securities sold
under agreements
to 381,695 352,498 363,485 405,214 430,248
repurchase and
other short-term
borrowings
Federal Home
Loan Bank 536,161 622,011 675,918 519,637 616,134
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Total
interest-bearing 2,899,501 2,429,453 2,441,461 2,646,571 2,623,676
liabilities
Stockholders' 276,663 272,500 266,148 254,736 246,084
equity
Income
Statement Data
Quarterly Comparison
Dec. 31, 2008 Sept. 30, June 30, 2008 March 31, Dec. 31,
2008 2008 2007
Total interest $ 44,782 $ 43,927 $ 45,673 $ 67,760 $ 49,705
income (4)
Total interest 16,805 16,081 16,400 23,132 26,150
expense
Net interest 27,977 27,846 29,273 44,628 23,555
income
Provision for 1,753 324 3,629 10,499 1,617
loan losses
Non interest
income:
Service
charges on 4,809 5,117 4,933 4,545 4,897
deposit
accounts
Electronic
refund check 88 738 2,970 13,960 -
fees
Net RAL
securitization 317 157 286 12,587 59
income
Mortgage (270 ) 1,071 1,133 1,602 922
banking income
Debit card
interchange 1,187 1,194 1,246 1,149 1,171
fee income
Net gain
(loss) on
sales, calls (5,484 ) (5,273 ) (3,388 ) (219 ) 8
and
impairment of
securities
Insurance
settlement - - - - 1,877
gain
Other 313 410 356 320 410
Total non
interest 960 3,414 7,536 33,944 9,344
income
Non interest
expenses:
Salaries and
employee 12,392 12,611 12,615 14,500 9,459
benefits
Occupancy and 5,456 4,878 4,754 4,672 5,109
equipment, net
Communication
and 1,426 1,024 884 1,338 1,224
transportation
Marketing and 866 853 730 6,759 805
development
Bank franchise 573 599 703 723 630
tax expense
Data 739 646 669 717 768
processing
Debit card
interchange 590 624 612 576 582
expense
Supplies 392 328 373 556 450
Other 3,762 2,420 2,287 3,839 2,451
Total non
interest 26,196 23,983 23,627 33,680 21,478
expenses
Income before
income tax 988 6,953 9,553 34,393 9,804
expense
Income tax 384 2,451 3,130 12,270 3,398
expense
Net income $ 604 $ 4,502 $ 6,423 $ 22,123 $ 6,406
Quarterly Comparison
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2007
2008 2008 2008 2008
Per Share Data:
Basic average
shares 20,615 20,591 20,525 20,339 20,284
outstanding
Diluted average
shares 20,886 20,978 20,839 20,615 20,573
outstanding
End of period
shares
outstanding:
Class A Common 18,318 18,283 18,221 18,057 17,958
Stock
Class B Common 2,310 2,322 2,339 2,344 2,344
Stock
Book value per $ 13.38 $ 13.45 $ 13.18 $ 12.89 $ 12.26
share
Earnings per
share:
Basic earnings
per Class A 0.03 0.22 0.31 1.09 0.32
Common Stock
Basic earnings
per Class B 0.02 0.21 0.30 1.08 0.31
Common Stock
Diluted earnings
per Class A 0.03 0.22 0.31 1.07 0.31
Common Stock
Diluted earnings
per Class B 0.02 0.20 0.30 1.06 0.30
Common Stock
Cash dividends
declared per
share:
Class A Common 0.121 0.121 0.121 0.110 0.110
Stock
Class B Common 0.110 0.110 0.110 0.100 0.100
Stock
Performance
Ratios:
Return on 0.07 % 0.60 % 0.84 % 2.61 % 0.81 %
average assets
Return on 0.87 6.61 9.65 34.74 10.41
average equity
Efficiency ratio 91 77 64 43 65
(2)
Yield on average 5.36 6.09 6.23 8.45 6.52
earning assets
Cost of
interest-bearing 2.32 2.65 2.69 3.50 3.99
liabilities
Net interest 3.04 3.44 3.54 4.95 2.53
spread
Net interest 3.35 3.86 3.99 5.57 3.09
margin
Asset Quality
Data:
Loans on
non-accrual 11,324 14,763 17,688 16,791 8,303
status
Loans past due
90 days or more 2,133 1,217 1,476 1,340 1,318
and still on
accrual
Total
non-performing 13,457 15,980 19,164 18,131 9,621
loans
Other real 5,737 2,017 2,160 950 795
estate owned
Total
non-performing 19,194 17,997 21,324 19,081 10,416
assets
Non-performing
loans to total 0.58 % 0.69 % 0.82 % 0.77 % 0.40 %
loans
Non-performing
assets to total 0.49 0.59 0.70 0.58 0.33
assets
Allowance for
loan losses to 0.64 0.61 0.77 0.64 0.53
total loans
Allowance for
loan losses to 110 89 94 83 132
non-performing
loans
Net loan
charge-offs to 0.20 0.70 0.11 1.32 0.16
average loans -
Total Company
Net loan
charge-offs to
average loans - 0.25 0.51 0.12 0.14 0.22
Traditional
Banking Segment
Delinquent loans
to total loans 1.07 1.05 1.01 0.70 0.69
(3)
Other
Information:
End of period
full-time 724 720 710 717 727
equivalent
employees
Number of
banking centers 45 45 42 39 40
at period end
Segment Data:
The reportable segments are determined by the type of products and
services offered, distinguished between banking operations, mortgage
banking operations and Tax Refund Solutions ("TRS"). Loans, investments
and deposits provide the majority of revenue from banking operations;
servicing fees and loan sales provide the majority of revenue from
mortgage banking operations; Refund Anticipation Loan ("RAL") fees,
Electronic Refund Check ("ERC")/ Electronic Refund Deposit ("ERD") fees
and Net RAL securitization income provide the majority of the revenue
from TRS. All Company segments are domestic. Segment information for the
quarter and year ended December 31, 2008 and 2007 follows:
Three Months Ended December 31, 2008
(dollars in Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 30,107 $ (2,207 ) $ 77 $ 27,977
income
Provision for 2,060 (307 ) - 1,753
loan losses
Electronic Refund - 88 - 88
Check fees
Net RAL
securitization - 317 - 317
income
Mortgage banking - - (270 ) (270 )
income
Other revenue (158 ) 2 981 825
Total non (158 ) 407 711 960
interest income
Total non 22,596 3,397 203 26,196
interest expenses
Gross operating 5,293 (4,890 ) 585 988
profit
Income tax
expense / 2,116 (1,917 ) 185 384
(benefit)
Net income / $ 3,177 $ (2,973 ) $ 400 $ 604
(loss)
Segment assets $ 2,773,238 $ 1,154,777 $ 11,353 $ 3,939,368
Net interest 4.12 % NM NM 3.35 %
margin
Three Months Ended December 31, 2007
(dollars in Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 23,645 $ (170 ) $ 80 $ 23,555
income
Provision for 2,013 (396 ) - 1,617
loan losses
Electronic Refund - - - -
Check fees
Net RAL
securitization - 59 - 59
income
Mortgage banking - - 922 922
income
Other revenue 8,628 15 (280 ) 8,363
Total non 8,628 74 642 9,344
interest income
Total non 18,595 2,736 147 21,478
interest expenses
Gross operating 11,665 (2,436 ) 575 9,804
profit
Income tax
expense / 4,081 (883 ) 200 3,398
(benefit)
Net income / $ 7,584 $ (1,553 ) $ 375 $ 6,406
(loss)
Segment assets $ 2,885,981 $ 275,012 $ 4,366 $ 3,165,359
Net interest 3.11 % NM NM 3.09 %
margin
Twelve Months Ended December 31, 2008
(dollars in Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest income $ 111,193 $ 18,166 $ 365 $ 129,724
Provision for loan 8,154 8,051 - 16,205
losses
Electronic Refund - 17,756 - 17,756
Check fees
Net RAL
securitization - 13,347 - 13,347
income
Mortgage banking - - 3,536 3,536
income
Other revenue 11,505 31 (321 ) 11,215
Total non interest 11,505 31,134 3,215 45,854
income
Total non interest 85,723 20,942 821 107,486
expenses
Gross operating 28,821 20,307 2,759 51,887
profit
Income tax expense 10,251 7,049 935 18,235
Net income $ 18,570 $ 13,258 $ 1,824 $ 33,652
Segment assets $ 2,773,238 $ 1,154,777 $ 11,353 $ 3,939,368
Net interest margin 3.77 % NM NM 4.20 %
Twelve Months Ended December 31, 2007
(dollars in Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest income $ 87,314 $ 6,778 $ 386 $ 94,478
Provision for loan 3,923 2,897 - 6,820
losses
Electronic Refund - 4,189 - 4,189
Check fees
Net RAL
securitization - 3,772 - 3,772
income
Mortgage banking - - 2,973 2,973
income
Other revenue 27,697 153 (992 ) 26,858
Total non interest 27,697 8,114 1,981 37,792
income
Total non interest 79,079 7,371 806 87,256
expenses
Gross operating 32,009 4,624 1,561 38,194
profit
Income tax expense 10,958 1,780 543 13,281
Net income $ 21,051 $ 2,844 $ 1,018 $ 24,913
Segment assets $ 2,885,981 $ 275,012 $ 4,366 $ 3,165,359
Net interest margin 2.95 % NM NM 3.17 %
NM - Not meaningful
(1) - The amount of loan fee income included in total interest income
was $1.4 million and $1.3 million for the quarters ended December 31,
2008 and 2007. The amount of loan fee income included in total interest
income was $24.4 million and $10.3 million for the years ended December
31, 2008 and 2007.
(2) - Equals total non-interest expense divided by the sum of net
interest income and non interest income.
(3) - Equals total loans over 30 days past due divided by total loans.
(4) - The amount of loan fee income included in total interest income
per quarter was as follows: $1.4 million (quarter ended December 31,
2008), $1.3 million (quarter ended September 30, 2008), $2.2 million
(quarter ended June 30, 2008), $19.4 million (quarter ended March 31,
2008) and $1.3 million (quarter ended December 31, 2007).
Source: Republic Bancorp, Inc.
Contact: Republic Bancorp, Inc.
Kevin Sipes, Executive Vice President and Chief Financial Officer
502-560-8628