LOUISVILLE, Ky.--(BUSINESS WIRE)--
Republic Bancorp is pleased to report net income of $32.6 million for
the first six months of 2009, a $4.1 million, or 14%, increase over the
same period in 2008. Diluted Earnings per Class A Common Share increased
14% for the first six months of the year to $1.57. For the second
quarter the Company achieved net income of $6.9 million, a $444,000, or
7%, increase over the second quarter of 2008. Diluted Earnings per Class
A Common Share increased 6% for the second quarter to $0.33. "We are
extremely pleased with the Company's performance during the second
quarter and first six months of 2009. We continue to produce strong
results despite the challenging economic conditions throughout the
country. During the first six months of the year, when many other
financial institutions across the nation reduced their work forces, cut
their employee benefits and eliminated or greatly reduced their dividend
payouts, Republic increased the guaranteed match portion of its 401(k)
by 50% effective January 1st of this year to reward our associates for
their contribution to the Company's overall success. In addition, we
have continued to hire talented new associates throughout the year and
we increased our quarterly cash dividend by 9% for the second quarter -
the 8th consecutive year we increased our quarterly cash dividend,"
Steve Trager, Republic's President & CEO, noted.
Republic Bancorp, Inc. ("Republic" or the "Company") (NASDAQ:
RBCAA), headquartered in Louisville, Kentucky, is the holding company
for Republic Bank & Trust Company and Republic Bank.
Results of Operations for the First
Six Months of 2009 Compared to the First Six Months of 2008
The following chart briefly highlights Republic's six months ended June
30, 2009 financial performance compared to the same period in 2008:
YTD YTD
(dollars in thousands, except per share data) 06/30/09 06/30/08
Net Income $ 32,626 $ 28,546
Diluted Earnings per Class A Share 1.57 1.38
Total Assets 3,104,340 3,053,209
Mortgage Banking and Traditional Banking (collectively "Core Banking")
The Company posted strong Core Banking net income for the six months
ended June 30, 2009 compared to the same period in 2008 despite the
negative impact of a $2.6 million increase in FDIC insurance expense
incurred during the first six months of this year. Excluding the
increase in the Company's FDIC insurance expense, the Company's Core
Banking net income for the first six months of the year increased by
$908,000, or 8%, over the same period in 2008.
Net interest income within the Company's Core Banking increased $2.1
million, or 4%, for the six months ended June 30, 2009 compared to the
same period in 2008. During the first six months of 2009, net interest
income within the Company's Core Banking benefited from disciplined loan
and deposit pricing strategies and low short-term interest rates
combined with a steep yield curve and higher year-over-year average
earning assets. Overall, the Traditional Banking segment's net interest
margin was a solid 3.79% for the six months ended June 30, 2009.
Mortgage banking income increased $5.0 million, or 181%, for the six
months ended June 30, 2009 compared to the same period in 2008. The
majority of this increase was in the "gain on sale of loan" category, as
the Company benefited from historically low long-term interest rates,
combined with its strong reputation as a market leader in first mortgage
home loans. As a result, the Company originated $444 million in fixed
rate secondary market home loans during the first six months of 2009
serving 2,700 clients, compared to $146 million in originations during
the first six months of 2008. Unlike many of its peers, Republic
continues to service virtually all the loans it sells into the secondary
market, thereby maintaining long-term, full banking relationships.
In addition to the strong gain on sale of loans, mortgage banking income
was also positively impacted during the first six months of 2009 by a
reversal during the first quarter of $1.1 million from a valuation
allowance related to the Company's Mortgage Servicing Rights ("MSR")
portfolio, which was originally recorded during the fourth quarter of
2008. During the second quarter of 2009, the Company reversed the
remaining $122,000 from the valuation allowance.
Core Banking non interest expense increased $6.4 million, or 15%, for
the first six months of 2009 to $48.8 million. A significant component
of this increase was the Company's FDIC insurance expense, which
included a special assessment imposed on all banks nationwide by the
FDIC effective June 30, 2009. On a pre tax basis, this special insurance
assessment was approximately $1.4 million for Republic and was in
addition to the increase of $1.2 million that the Company had already
experienced in its usual insurance premiums during the first six months
of the year. In addition to higher FDIC insurance expense, other real
estate owned expense increased $1.8 million during the six months ended
June 30, 2009 compared to the same period in 2008 primarily due to write
downs related to two other real estate owned properties held in Florida.
One of these properties was sold during the second quarter of 2009.
Core Banking provision for loan losses increased from $5.9 million
during the first six months of 2008 to $7.1 million during the first six
months of 2009. "Despite credit quality numbers that continue to compare
favorably to peer, we are not immune from the current downturn in the
economy, as evidenced by the increases in our delinquent and
non-performing loans. Management of our overall credit quality continues
to be performed on a regular basis at the highest levels within our
Company, including significant involvement from our executive team. With
this level of senior management involvement, I believe Republic will
continue to be a leader in terms of credit quality compared to its peers
in the industry," commented Scott Trager, President of Republic Bank &
Trust Company.
Tax Refund Solutions ("TRS")
Net income at TRS increased from $17.2 million during the first six
months of 2008 to $22.0 million for the first six months of 2009. The
rise in net income resulted primarily from a healthy increase in volume,
as the Company processed $7.7 billion in electronic refunds for 2.7
million customers during this year's tax season.
Results of Operations for the Second
Quarter of 2009 Compared to the Second Quarter of 2008
The following chart briefly highlights Republic's second quarter ended
June 30, 2009 financial performance compared to the same period in 2008:
Qtr. Ended Qtr. Ended
(dollars in thousands, except per share data) 06/30/09 06/30/08
Net Income $ 6,867 $ 6,423
Diluted Earnings per Class A Share 0.33 0.31
Core Banking
"Overall, Core Banking operating results were solid for the second
quarter of 2009 despite the negative impact of a $1.8 million increase
in FDIC insurance expense incurred for the second quarter of 2009.
Excluding the increased FDIC insurance expense, our Core Banking net
income for the quarter increased by $1.2 million, or 21%, over the
second quarter of 2008. Along with our solid earnings results, we
continued to have favorable credit quality compared to peer, continued
improvement in our overall interest rate risk position in addition to a
notable increase in our allowance for loan losses during the quarter,"
Steve Trager noted on the quarter.
Net interest income within the Company's Core Banking segments decreased
$863,000, or 3%, for the second quarter ended June 30, 2009 compared to
the same period in 2008. While net interest income within the Core
Banking segments benefited from the current interest rate environment
for much of 2009, the month-to-month improvement in this benefit, when
comparing to the same month in the previous year, decreased throughout
the year until it became negative in April. This change occurred as the
Company extended maturities on $185 million of its FHLB borrowings
during the first and second quarters of 2009 in order to mitigate its
risk position from a future rise in interest rates. As a result, the
weighted average cost of these borrowings went from 0.35% on an
overnight basis to 2.99% after their maturities were extended. The
Traditional Banking segment also continued to have a significant sum of
cash on hand during the quarter from maturing securities and portfolio
loans, which were refinanced into the secondary market. This cash held
at the Federal Reserve averaged $188 million for the second quarter and
earned 0.25% in a variable rate account. The Company maintained this
cash at the Federal Reserve for interest rate risk mitigation and
because other investment alternatives were considered less attractive
when considering the current economic environment and the Company's
overall interest rate risk position.
"Our Traditional Banking segment continued to experience favorable
growth in low cost transaction and money market accounts of $43 million
during the second quarter. As a result, our cost of funds decreased to
1.85% for the quarter. In spite of the increased cost of wholesale term
funding, our Traditional Banking net interest margin remained
significantly better than peer at 3.72% for the quarter, representing a
modest reduction from the first quarter of 2009," commented Steve Trager.
Mortgage banking income increased $2.4 million, or 210%, for the second
quarter ended June 30, 2009 compared to the same period in 2008. The
majority of this increase was in the "gain on sale of loan" category, as
the Company sold $243 million in fixed rate loans into the secondary
market during the second quarter of 2009 compared to $68 million during
the second quarter of 2008. As of June 30, 2009, the Company had $33
million in loans held for sale with $25 million in fixed rate loan
commitments to its customers and $58 million in mandatory forward sales
contracts primarily to the Federal Home Loan Mortgage Corporation
("FHLMC" or "Freddie Mac").
Core Banking non interest expenses increased $2.8 million, or 13%, for
the second quarter of 2009 to $24.1 million. Core Banking FDIC insurance
expense increased $1.8 million during the second quarter of 2009
compared to the same period in 2008. Approximately $1.4 million of the
increase in FDIC insurance expense was associated with the special
assessment for the quarter. Occupancy and equipment increased $434,000
during the three months ended June 30, 2009 compared to the same period
in 2008 primarily due to growth in the Company's infrastructure and
banking center network, as well as increased leasing costs and service
agreements associated with the Company's technology and operating
systems. The increase in non interest expense was modest despite the
significant increase in FDIC insurance assessments, as well as the
growth in the Company's banking center network to 44 locations compared
to 40 locations as of the beginning of 2008.
Core Banking provision for loan losses increased from $2.9 million
during the second quarter of 2008 to $3.5 million during the second
quarter of 2009. Provision expense was higher during the second quarter
due to increased delinquent and non performing loans, as well as higher
charge-offs. In addition, the Company continued to increase its
allowance for loan losses to give greater consideration to current
economic conditions in the real estate industry.
TRS
TRS net income increased $500,000 for the second quarter ended June 30,
2009 compared to the same period in 2008. In addition to the revenue
generated from the overall growth in the program, TRS net income was
significantly impacted during the second quarter by
better-than-projected paydowns in outstanding Refund Anticipation Loans
("RALs") subsequent to March 31, 2009. As a result, the Company lowered
its overall loan loss estimate for its RAL portfolio by $1.8 million
during the second quarter of 2009.
CONCLUSION
"As we turn our thoughts to the second half of 2009, our primary focus
will remain on maintaining our status as an industry leader in asset
quality while seeking additional opportunities to profitably grow our
business. With a strong capital position, we hope to capitalize on
current market conditions to expand our presence in Florida and possibly
Ohio over the coming year. Regardless of where the turbulent economic
winds carry us in the future, however, we will continue to work
diligently for our shareholders in the future and never sacrifice
long-term shareholder value for the benefit of short-term economic gain.
With stockholder's equity of $309 million and a Tier I Capital ratio
well above that considered 'well capitalized' in the industry, Republic
Bancorp remains a safe and sound bank for its deposit clients and a
solid long-term investment for its shareholders - giving further
credence to our slogan, '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 44 banking centers and is the
parent company of: Republic Bank & Trust Company with 35 banking centers
in 13 Kentucky communities - Bowling Green, Covington, Crestwood,
Elizabethtown, Florence, 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 $3.1 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 2008 Form 10-K
and subsequent 10-Qs filed with the Securities and Exchange Commission.
Republic Bancorp, Inc. Financial Information
Second Quarter 2009 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
June 30, 2009 Dec. 31, 2008 June 30, 2008
Assets:
Cash and cash equivalents $ 165,042 $ 616,303 $ 88,565
Investment securities 519,376 904,674 510,661
Mortgage loans held for sale 33,287 11,298 11,621
Loans 2,287,178 2,303,857 2,348,509
Allowance for loan losses (19,886 ) (14,832 ) (17,995 )
Federal Home Loan Bank stock, at 26,248 25,082 24,754
cost
Premises and equipment, net 40,369 42,885 39,859
Goodwill 10,168 10,168 10,168
Other assets and accrued interest 42,558 39,933 37,067
receivable
Total assets $ 3,104,340 $ 3,939,368 $ 3,053,209
Liabilities and Stockholders'
Equity:
Deposits:
Non interest-bearing $ 338,806 $ 273,203 $ 293,210
Interest-bearing 1,415,982 2,470,166 1,335,743
Total deposits 1,754,788 2,743,369 1,628,953
Securities sold under agreements to
repurchase and other short-term 299,028 339,012 330,730
borrowings
Federal Home Loan Bank advances 659,732 515,234 749,837
Subordinated note 41,240 41,240 41,240
Other liabilities and accrued 40,008 24,591 31,461
interest payable
Total liabilities 2,794,796 3,663,446 2,782,221
Stockholders' equity 309,544 275,922 270,988
Total liabilities and Stockholders' $ 3,104,340 $ 3,939,368 $ 3,053,209
equity
Average Balance Sheet
Data
Second Quarter Ended June 30, Six Months Ended June 30,
2009 2008 2009 2008
Assets:
Investment securities $ 519,902 $ 562,322 $ 546,152 $ 593,396
Federal funds sold and
other interest-earning 188,604 7,661 490,542 63,617
deposits
Loans and fees,
including loans held 2,316,494 2,361,208 2,463,377 2,412,149
for sale
Total earning assets 3,025,000 2,931,191 3,500,071 3,069,162
Total assets 3,216,869 3,055,623 3,693,273 3,224,574
Liabilities and
Stockholders' Equity:
Non interest-bearing $ 346,065 $ 301,421 $ 438,268 $ 368,649
deposits
Interest-bearing 1,475,972 1,360,818 1,913,429 1,520,649
deposits
Securities sold under
agreements to 328,951 363,485 327,984 384,350
repurchase and other
short-term borrowings
Federal Home Loan Bank 662,652 675,918 605,414 597,778
advances
Subordinated note 41,240 41,240 41,240 41,240
Total interest-bearing 2,508,815 2,441,461 2,888,067 2,544,017
liabilities
Stockholders' equity 311,831 266,148 302,692 260,492
Income Statement Data
Second Quarter Ended June 30, Six Months Ended June 30,
2009 2008 2009 2008
Total interest income $ 39,506 $ 45,673 $ 136,863 $ 113,433
(1)
Total interest expense 11,585 16,400 28,126 39,532
Net interest income 27,921 29,273 108,737 73,901
Provision for loan 1,686 3,629 27,351 14,128
losses
Non interest income:
Service charges on 4,992 4,933 9,414 9,478
deposit accounts
Electronic refund 2,230 2,970 25,135 16,930
check fees
Net RAL securitization 60 286 472 12,873
income
Mortgage banking 3,517 1,133 7,691 2,735
income
Debit card interchange 1,312 1,246 2,471 2,395
fee income
Net loss on sales,
calls and impairment (1,896 ) (3,388 ) (5,021 ) (3,607 )
of securities
Other 692 432 1,247 752
Total non interest 10,907 7,612 41,409 41,556
income
Non interest expenses:
Salaries and employee 12,647 12,615 27,163 27,115
benefits
Occupancy and 5,428 4,754 11,337 9,426
equipment, net
Communication and 1,021 884 2,944 2,222
transportation
Marketing and 663 730 11,640 7,489
development
FDIC insurance 2,004 63 3,054 122
assessment
Bank franchise tax 637 703 1,272 1,426
expense
Data processing 779 669 1,549 1,386
Debit card interchange 694 612 1,368 1,188
expense
Supplies 398 373 1,276 929
Other real estate 272 125 1,983 150
owned expense
Other 2,011 2,175 6,610 5,930
Total non interest 26,554 23,703 70,196 57,383
expenses
Income before income 10,588 9,553 52,599 43,946
tax expense
Income tax expense 3,721 3,130 19,973 15,400
Net income $ 6,867 $ 6,423 $ 32,626 $ 28,546
Second Quarter Ended June 30, Six Months Ended June 30,
2009 2008 2009 2008
Per Share Data:
Basic average shares 20,749 20,525 20,706 20,432
outstanding
Diluted average shares 20,910 20,839 20,876 20,697
outstanding
End of period shares
outstanding:
Class A Common Stock 18,439 18,221 18,439 18,221
Class B Common Stock 2,310 2,339 2,310 2,339
Book value per share $ 14.92 $ 13.18 $ 14.92 $ 13.18
Earnings per share:
Basic earnings per 0.33 0.31 1.58 1.40
Class A Common Stock
Basic earnings per 0.32 0.30 1.56 1.38
Class B Common Stock
Diluted earnings per 0.33 0.31 1.57 1.38
Class A Common Stock
Diluted earnings per 0.32 0.30 1.54 1.36
Class B Common Stock
Cash dividends
declared per share:
Class A Common Stock 0.132 0.121 0.253 0.231
Class B Common Stock 0.121 0.110 0.230 0.210
Performance Ratios:
Return on average 0.85 % 0.84 % 1.77 % 1.77 %
assets
Return on average 8.81 9.65 21.56 21.92
equity
Efficiency ratio(2) 66 59 45 48
Yield on average 5.22 6.23 7.82 7.39
earning assets
Cost of
interest-bearing 1.85 2.69 1.95 3.11
liabilities
Net interest spread 3.37 3.54 5.87 4.28
Net interest margin 3.69 3.99 6.21 4.82
Asset Quality Ratios:
Loans on non-accrual 31,094 17,688 31,094 17,688
status
Loans past due 90 days
or more and still on 318 1,476 79 1,476
accrual
Total non-performing 31,412 19,164 31,173 19,164
loans
Other real estate 2,723 2,160 2,723 2,160
owned
Total non-performing 34,135 21,324 33,896 21,324
assets
Non-performing loans 1.37 % 0.82 % 1.37 % 0.82 %
to total loans
Non-performing assets
to total loans 1.49 0.91 1.49 0.91
(including OREO)
Allowance for loan 0.87 0.77 0.87 0.77
losses to total loans
Allowance for loan
losses to 64 94 64 94
non-performing loans
Net loan charge-offs
to average loans - (0.06 ) 0.11 1.81 0.74
Total Company
Net loan charge-offs
to average loans - 0.23 0.12 0.18 0.13
Banking Segment
Delinquent loans to 1.71 1.01 1.71 1.01
total loans(3)
Other Information:
End of period
full-time equivalent 745 710 745 710
employees
Number of banking 44 42 44 42
centers
Balance Sheet
Data
Quarterly Comparison
June 30, 2009 March 31, Dec. 31, 2008 Sept. 30, June 30, 2008
2009 2008
Assets:
Cash and cash $ 165,042 $ 442,039 $ 616,303 $ 72,735 $ 88,565
equivalents
Investment 519,376 452,782 904,674 546,328 510,661
securities
Mortgage loans 33,287 11,499 11,298 6,758 11,621
held for sale
Loans 2,287,178 2,314,689 2,303,857 2,318,373 2,348,509
Allowance for (19,886 ) (17,878 ) (14,832 ) (14,247 ) (17,995 )
loan losses
Federal Home
Loan Bank stock, 26,248 26,248 25,082 25,082 24,754
at cost
Premises and 40,369 40,700 42,885 42,225 39,859
Equipment, net
Goodwill 10,168 10,168 10,168 10,168 10,168
Other assets and
interest 42,558 57,398 39,933 37,632 37,067
receivable
Total assets $ 3,104,340 $ 3,337,645 $ 3,939,368 $ 3,045,054 $ 3,053,209
Liabilities and
Stockholders'
Equity:
Deposits:
Non $ 338,806 $ 380,039 $ 273,203 $ 279,260 $ 293,210
interest-bearing
Interest-bearing 1,415,982 1,588,756 2,470,166 1,521,607 1,335,743
Total deposits 1,754,788 1,968,795 2,743,369 1,800,867 1,628,953
Securities sold
under agreements
to repurchase 299,028 325,214 339,012 322,608 330,730
and other
short-term
borrowings
Federal Home
Loan Bank 659,732 635,191 515,234 577,294 749,837
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Other
liabilities and 40,008 63,622 24,591 25,808 31,461
accrued interest
payable
Total 2,794,796 3,034,062 3,663,446 2,767,817 2,782,221
liabilities
Stockholders' 309,544 303,583 275,922 277,237 270,988
equity
Total
liabilities and $ 3,104,340 $ 3,337,645 $ 3,939,368 $ 3,045,054 $ 3,053,209
Stockholders'
equity
Average Balance
Sheet Data
Quarterly Comparison
June 30, 2009 March 31, Dec. 31, 2008 Sept. 30, June 30, 2008
2009 2008
Assets:
Investment $ 519,902 $ 572,694 $ 792,641 $ 538,270 $ 562,322
securities
Federal funds
sold and other 188,604 795,834 232,591 7,723 7,661
interest-earning
deposits
Loans and fees,
including loans 2,316,494 2,612,313 2,315,382 2,340,007 2,361,208
held for sale
Total earning 3,025,000 3,980,841 3,340,614 2,886,000 2,931,191
assets
Total assets 3,216,869 4,174,783 3,470,788 3,010,211 3,055,623
Liabilities and
Stockholders'
Equity:
Non
interest-bearing $ 346,065 $ 531,496 $ 269,903 $ 279,061 $ 301,421
deposits
Interest-bearing 1,475,972 2,355,747 1,940,405 1,413,704 1,360,818
deposits
Securities sold
under agreements
to repurchase 328,951 327,006 381,695 352,498 363,485
and other
short-term
borrowings
Federal Home
Loan Bank 662,652 547,540 536,161 622,011 675,918
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Total
interest-bearing 2,508,815 3,271,533 2,899,501 2,429,453 2,441,461
liabilities
Stockholders' 311,831 293,456 276,663 272,500 266,148
equity
Income
Statement Data
Quarterly Comparison
June 30, March 31, Dec. 31, 2008 Sept. 30, June 30, 2008
2009 2009 2008
Total interest $ 39,506 $ 97,357 $ 44,782 $ 43,927 $ 45,673
income(4)
Total interest 11,585 16,541 16,805 16,081 16,400
expense
Net interest 27,921 80,816 27,977 27,846 29,273
income
Provision for 1,686 25,665 1,753 324 3,629
loan losses
Non interest
income:
Service
charges on 4,992 4,422 4,809 5,117 4,933
deposit
accounts
Electronic
refund check 2,230 22,905 88 738 2,970
fees
Net RAL
securitization 60 412 317 157 286
income
Mortgage 3,517 4,174 (270 ) 1,071 1,133
banking income
Debit card
interchange 1,312 1,159 1,187 1,194 1,246
fee income
Net loss on
sales, calls (1,896 ) (3,125 ) (5,484 ) (5,273 ) (3,388 )
and impairment
of securities
Other 692 555 343 410 432
Total non
interest 10,907 30,502 990 3,414 7,612
income
Non interest
expenses:
Salaries and
employee 12,647 14,516 12,392 12,611 12,615
benefits
Occupancy and 5,428 5,909 5,456 4,878 4,754
equipment, net
Communication
and 1,021 1,923 1,426 1,024 884
transportation
Marketing and 663 10,977 866 853 730
development
FDIC insurance 2,004 1,050 880 150 63
assessment
Bank franchise 637 635 573 599 703
tax expense
Data 779 770 739 646 669
processing
Debit card
interchange 694 674 590 624 612
expense
Supplies 398 878 392 328 373
Other real
estate owned 272 1,711 69 19 125
expense
Other 2,011 4,599 2,843 2,251 2,175
Total non
interest 26,554 43,642 26,226 23,983 23,703
expenses
Income before
income tax 10,588 42,011 988 6,953 9,553
expense
Income tax 3,721 16,252 384 2,451 3,130
expense
Net income $ 6,867 $ 25,759 $ 604 $ 4,502 $ 6,423
Quarterly Comparison
June 30, March 31, Dec. 31, Sept. 30, June 30, 2008
2009 2009 2008 2008
Per Share Data:
Basic average
shares 20,749 20,662 20,615 20,591 20,525
outstanding
Diluted average
shares 20,910 20,832 20,886 20,978 20,839
outstanding
End of period
shares
outstanding:
Class A Common 18,439 18,412 18,318 18,283 18,221
Stock
Class B Common 2,310 2,310 2,310 2,322 2,339
Stock
Book value per $ 14.92 $ 14.65 $ 13.38 $ 13.45 $ 13.18
share
Earnings per
share:
Basic earnings
per Class A 0.33 1.25 0.03 0.22 0.31
Common Stock
Basic earnings
per Class B 0.32 1.24 0.02 0.21 0.30
Common Stock
Diluted earnings
per Class A 0.33 1.24 0.03 0.22 0.31
Common Stock
Diluted earnings
per Class B 0.32 1.23 0.02 0.20 0.30
Common Stock
Cash dividends
declared per
share:
Class A Common 0.132 0.121 0.121 0.121 0.121
Stock
Class B Common 0.121 0.110 0.110 0.110 0.110
Stock
Performance
Ratios:
Return on 0.85 % 2.47 % 0.07 % 0.60 % 0.84 %
average assets
Return on 8.81 35.11 0.87 6.61 9.65
average equity
Efficiency ratio 66 38 76 66 59
(2)
Yield on average 5.22 9.78 5.36 6.09 6.23
earning assets
Cost of
interest-bearing 1.85 2.02 2.32 2.65 2.69
liabilities
Net interest 3.37 7.76 3.04 3.44 3.54
spread
Net interest 3.69 8.12 3.35 3.86 3.99
margin
Asset Quality
Data:
Loans on
non-accrual 31,094 24,133 11,324 14,763 17,688
status
Loans past due
90 days or more 3,183 352 2,133 1,217 1,476
and still on
accrual
Total
non-performing 34,277 24,485 13,457 15,980 19,164
loans
Other real 2,723 6,386 5,737 2,017 2,160
estate owned
Total
non-performing 37,000 30,871 19,194 17,997 21,324
assets
Non-performing
loans to total 1.37 % 1.06 % 0.58 % 0.69 % 0.82 %
loans
Non-performing
assets to total 1.49 1.33 0.83 0.78 0.91
loans (including
OREO)
Allowance for
loan losses to 0.87 0.77 0.64 0.61 0.77
total loans
Allowance for
loan losses to 64 73 110 89 94
non-performing
loans
Net loan
charge-offs to (0.06 ) 3.46 0.20 0.70 0.11
average loans -
Total Company
Net loan
charge-offs to 0.23 0.13 0.25 0.51 0.12
average loans -
Banking Segment
Delinquent loans
to total loans 1.71 1.53 1.07 1.05 1.01
(3)
Other
Information:
End of period
full-time 745 742 724 720 710
equivalent
employees
Number of 44 45 45 45 42
banking centers
Segment Data:
The reportable segments are determined by the type of products and services
offered, distinguished between Traditional Banking, Mortgage Banking and Tax
Refund Solutions ("TRS"). Loans, investments and deposits provide the majority
of revenue from traditional 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 three months and six months ended June 30, 2009 and 2008
follows:
Three Months Ended June 30, 2009
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 27,371 $ 259 $ 291 $ 27,921
income
Provision for 3,459 (1,773 ) - 1,686
loan losses
Electronic
Refund Check - 2,230 - 2,230
fees
Net RAL
securitization - 60 - 60
income
Mortgage - - 3,517 3,517
banking income
Other revenue 5,193 17 (110 ) 5,100
Total non
interest 5,193 2,307 3,407 10,907
income
Total non
interest 23,773 2,448 333 26,554
expenses
Gross
operating 5,332 1,891 3,365 10,588
profit
Income tax 1,876 743 1,102 3,721
expense
Net income $ 3,456 $ 1,148 $ 2,263 $ 6,867
Segment assets $ 3,064,313 $ 6,693 $ 33,334 $ 3,104,340
Net interest 3.72 % NM NM 3.69 %
margin
Three Months Ended June 30, 2008
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 28,436 $ 748 $ 89 $ 29,273
income
Provision for 2,857 772 - 3,629
loan losses
Electronic
Refund Check - 2,970 - 2,970
fees
Net RAL
securitization - 286 - 286
income
Mortgage - - 1,133 1,133
banking income
Other revenue 3,751 (5 ) (523 ) 3,223
Total non
interest 3,751 3,251 610 7,612
income
Total non
interest 21,076 2,407 220 23,703
expenses
Gross
operating 8,254 820 479 9,553
profit
Income tax 2,796 172 162 3,130
expense
Net income $ 5,458 $ 648 $ 317 $ 6,423
Segment assets $ 3,032,078 $ 9,445 $ 11,686 $ 3,053,209
Net interest 4.00 % NM NM 3.99 %
margin
Six Months Ended June 30, 2009
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 55,329 $ 52,833 $ 575 $ 108,737
income
Provision for 7,116 20,235 - 27,351
loan losses
Electronic
Refund Check - 25,135 - 25,135
fees
Net RAL
securitization - 472 - 472
income
Mortgage - - 7,691 7,691
banking income
Other revenue 8,027 32 52 8,111
Total non
interest 8,027 25,639 7,743 41,409
income
Total non
interest 48,080 21,349 767 70,196
expenses
Gross
operating 8,160 36,888 7,551 52,599
profit
Income tax 2,573 14,855 2,545 19,973
expense
Net income $ 5,587 $ 22,033 $ 5,006 $ 32,626
Segment assets $ 3,064,313 $ 6,693 $ 33,334 $ 3,104,340
Net interest 3.79 % NM NM 6.21 %
margin
Six Months Ended June 30, 2008
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 53,566 $ 20,144 $ 191 $ 73,901
income
Provision for 5,903 8,225 - 14,128
loan losses
Electronic
Refund Check - 16,930 - 16,930
fees
Net RAL
securitization - 12,873 - 12,873
income
Mortgage - - 2,735 2,735
banking income
Other revenue 9,872 4 (858 ) 9,018
Total non
interest 9,872 29,807 1,877 41,556
income
Total non
interest 41,953 14,971 459 57,383
expenses
Gross
operating 15,582 26,755 1,609 43,946
profit
Income tax 5,295 9,557 548 15,400
expense
Net income $ 10,287 $ 17,198 $ 1,061 $ 28,546
Segment assets $ 3,032,078 $ 9,445 $ 11,686 $ 3,053,209
Net interest 3.92 % NM NM 4.82 %
margin
(1) - The amount of loan fee income included in total interest income was $1.2
million and $2.2 million for the quarters ended June 30, 2009 and 2008. The
amount of loan fee income included in total interest income was $59.1 million
and $21.6 million for the six months ended June 30, 2009 and 2008.
(2) - Equals total non-interest expense divided by the sum of net interest
income and non interest income. The ratio excludes net loss on sales, calls and
impairment of investment securities.
(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: $1.2 million (quarter ended June 30, 2009), $57.8
million (quarter ended March 31, 2009), $1.4 million (quarter ended December 31,
2008), $1.3 million (quarter ended September 30, 2008) and $2.2 million (quarter
ended June 30, 2008).
NM - Not meaningful
Source: Republic Bancorp, Inc.
Contact: Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President and Chief Financial Officer
502-560-8628