LOUISVILLE, Ky.--(BUSINESS WIRE)--
Republic Bancorp is pleased to report net income of $5.7 million for the
third quarter of 2009, a $1.2 million, or 26%, increase over the same
period in 2008. Diluted Earnings per Class A Common Share increased 23%
for the quarter to $0.27. For the first nine months of 2009, the Company
achieved net income of $38.3 million, a $5.2 million, or 16%, increase
over the first nine months of 2008. Diluted Earnings per Class A Common
Share increased 16% for the first nine months of 2009 to $1.84. "Once
again the Company reported strong earnings for the quarter in a
turbulent economic environment. Our core banking performance remained
solid, as we continued to benefit from strong net interest margin driven
by a growing lower-cost deposit base," Steve Trager, Republic's
President and Chief Executive Officer 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.
The following chart highlights Republic's third quarter and first nine
months of 2009 financial performance compared to the same periods in
2008:
QTR QTR % YTD YTD %
(dollars
in
thousands, 09/30/09 09/30/08 Increase 09/30/09 09/30/08 Increase
except per
share
data)
Net Income $ 5,661 $ 4,502 26 % $ 38,287 $ 33,048 16 %
Diluted
Earnings $ 0.27 $ 0.22 23 % $ 1.84 $ 1.59 16 %
per Class
A Share
Return on
Average 0.74 % 0.60 % 23 % 1.47 % 1.40 % 5 %
Assets
("ROA")
Return on
Average 7.11 % 6.61 % 8 % 16.55 % 16.66 % -1 %
Equity
("ROE")
Results of Operations for the Third
Quarter of 2009 Compared to the Third Quarter of 2008
Traditional Banking and Mortgage Banking (collectively "Core Banking")
Net income derived from the Company's Core Banking increased from $5.5
million during the third quarter of 2008 to $6.3 million during the
third quarter of 2009. Core Banking achieved this growth in net income
despite an $849,000 increase in FDIC insurance expense and a $2.1
million increase in its provision for loan losses during the quarter.
Core Banking net interest income increased $72,000 for the third quarter
of 2009 compared to the same period in 2008, as the Company's net
interest margin remained strong at 3.79% for the quarter. "We
experienced solid growth of $107 million in our low cost transaction and
money market accounts during the first nine months of the year. We grew
these all important 'core' deposits because we remained an attractive
alternative for commercial and consumer banking clients looking for a
safe place to hold their funds, while also seeking a locally based
financial institution that provides a high level of service. As a result
of this growth, our overall cost of deposits, including non
interest-bearing deposits, decreased to 0.85% for the third quarter of
2009. As we did earlier in 2009, we will continue to look for
opportunities in the coming months within Core Banking to mitigate our
risk from future increases in interest rates by extending Federal Home
Loan Bank advances and taking advantage of favorable investment options
as they arise," further noted Steve Trager.
Mortgage banking income increased $596,000, or 56%, for the third
quarter of 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 $90 million of fixed rate loans into the secondary market during
the third quarter of 2009 compared to $56 million during the third
quarter of 2008. As of September 30, 2009, the Company had $9 million in
loans held for sale with $23 million in fixed rate loan commitments to
its customers and $27 million in mandatory forward sales contracts
primarily with the Federal Home Loan Mortgage Corporation ("Freddie
Mac").
Core Banking non interest expenses increased $2.0 million, or 10%, for
the third quarter of 2009 to $23.5 million. As previously noted, Core
Banking FDIC insurance expense increased $849,000, as the FDIC increased
its premiums to all banks nationwide. Occupancy and equipment increased
$440,000 during the three months ended September 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 overall increase in non interest expense was
modest despite the significant increase in FDIC insurance expense.
"As always, credit quality remains our number one focus at Republic.
While provision expense was higher during the third quarter, our
charge-offs as a percentage of average loans within our Core Banking
were an industry-low 0.26% for the first nine months of the year.
Looking ahead, we will continue to apply our conservative and
disciplined underwriting standards as we strategically grow our client
base. In addition, we will continue to proactively and aggressively
manage our loan portfolio with the goal of maintaining our
industry-strong credit quality during these challenging times," added
Trager.
Core Banking provision for loan losses increased from $191,000 during
the third quarter of 2008 to $2.3 million during the third quarter of
2009. Provision expense was higher during the third quarter of 2009 due
to an increase in delinquent and non performing loans, as well as an
increase in historical charge-off percentages. In addition, the Company
also continued to increase its allowance for loan losses to give greater
consideration to qualitative factors including current economic
conditions in the real estate industry.
Tax Refund Solutions ("TRS")
TRS, which derives substantially all of its revenues during the first
and second quarters of the year, historically operates at a net loss
during the third and fourth quarters of the year as the Company prepares
for the upcoming tax season. TRS' net loss was $608,000 for the third
quarter of 2009 compared to a net loss of $967,000 for the same period
in 2008. The improvement in net loss for the quarter was primarily
driven by recoveries of previously charged-off Refund Anticipation Loans
("RALs") totaling $882,000 for the quarter. As a result of these
recoveries, TRS' RAL loss rate improved to approximately 0.99% of total
RALs originated as of September 30, 2009.
Entering the final quarter of 2009, the Company will begin accumulating
funds for its first quarter 2010 tax season. Due to the excessive costs
associated with securitization, the Company expects to employ a similar
on-balance sheet funding strategy as it did during the first quarter
2009 tax season. As a result, Republic expects to experience a decline
in its total Company net interest income and net interest margin during
the fourth quarter of 2009 compared to the third quarter of 2009, as it
begins to accumulate additional cash. The final impact to the Company's
net interest income and net interest margin for the fourth quarter of
2009 cannot yet be determined because the Company has not finalized its
strategy regarding the amount and the timing of its funding needs for
the 2010 tax season.
CONCLUSION
"As we near the finish line of a successful year, our disciplined
approach to a very challenging economic market remains a key factor of
our continued success. The message of 'consistency builds value' and our
ability to generate a positive return for our shareholders in all
economic cycles is as relevant today as ever. We enter 2010
well-positioned with a strong capital level, a healthy franchise and a
team in place that is ready to take advantage of the opportunities that
come with disruption in our industry. In addition, we will continue to
respond swiftly and aggressively in managing all troubled asset
situations that arise. Meanwhile, Republic's commitment to its clients
and its strong capital base, which remains among the best in the
country, give the communities we serve confidence that we will be there
for them through the good economic times and the bad. As always, 'We
were here for you yesterday. We are here for you today. We will be here
for you tomorrow.(R)'"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 $3.0 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.
We were here for you yesterday. We are here for you today. We will
be here for you tomorrow. (R)
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
Third 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
Sept. 30, 2009 Dec. 31, 2008 Sept. 30, 2008
Assets:
Cash and cash equivalents $ 138,906 $ 616,303 $ 72,735
Investment securities 498,329 904,674 546,328
Mortgage loans held for sale 8,597 11,298 6,758
Loans 2,292,913 2,303,857 2,318,373
Allowance for loan losses (19,793 ) (14,832 ) (14,247 )
Federal Home Loan Bank stock, at 26,248 25,082 25,082
cost
Premises and equipment, net 39,629 42,885 42,225
Goodwill 10,168 10,168 10,168
Other assets and accrued interest 42,424 39,933 37,632
receivable
Total assets $ 3,037,421 $ 3,939,368 $ 3,045,054
Liabilities and Stockholders'
Equity:
Deposits:
Non interest-bearing $ 325,641 $ 273,203 $ 279,260
Interest-bearing 1,352,792 2,470,166 1,521,607
Total deposits 1,678,433 2,743,369 1,800,867
Securities sold under agreements
to
repurchase and other short-term 280,841 339,012 322,608
borrowings
Federal Home Loan Bank advances 699,689 515,234 577,294
Subordinated note 41,240 41,240 41,240
Other liabilities and accrued 22,295 24,591 25,808
interest payable
Total liabilities 2,722,498 3,663,446 2,767,817
Stockholders' equity 314,923 275,922 277,237
Total liabilities and $ 3,037,421 $ 3,939,368 $ 3,045,054
Stockholders' equity
Average Balance Sheet
Data
Third Quarter Ended Sept. 30, Nine Months Ended Sept. 30,
2009 2008 2009 2008
Assets:
Investment securities $ 533,202 $ 538,270 $ 541,789 $ 574,886
Federal funds sold
and other 87,202 7,723 354,618 44,850
interest-earning
deposits
Loans and fees,
including loans held 2,308,156 2,340,007 2,411,128 2,387,926
for sale
Total earning assets 2,928,560 2,886,000 3,307,535 3,007,662
Total assets 3,056,269 3,010,211 3,478,209 3,152,532
Liabilities and
Stockholders' Equity:
Non interest-bearing $ 327,173 $ 279,061 $ 400,830 $ 338,569
deposits
Interest-bearing 1,376,461 1,413,704 1,732,077 1,484,740
deposits
Securities sold under
agreements to 311,867 352,498 322,553 373,655
repurchase and other
short-term borrowings
Federal Home Loan 655,791 622,011 622,391 605,914
Bank advances
Subordinated note 41,240 41,240 41,240 41,240
Total
interest-bearing 2,385,359 2,429,453 2,718,261 2,505,549
liabilities
Stockholders' equity 318,704 272,500 308,403 264,524
Income Statement Data
Third Quarter Ended Sept. 30, Nine Months Ended Sept. 30,
2009 2008 2009 2008
Total interest income $ 38,265 $ 43,927 $ 175,128 $ 157,360
(1)
Total interest 10,529 16,081 38,655 55,613
expense
Net interest income 27,736 27,846 136,473 101,747
Provision for loan 1,427 324 28,778 14,452
losses
Non interest income:
Service charges on 4,990 5,117 14,404 14,595
deposit accounts
Electronic refund 137 738 25,272 17,668
check fees
Net RAL 26 157 498 13,030
securitization income
Mortgage banking 1,667 1,071 9,358 3,806
income
Debit card
interchange fee 1,321 1,194 3,792 3,589
income
Net loss on sales,
calls and impairment (850 ) (5,273 ) (5,871 ) (8,880 )
of securities
Other 597 410 1,844 1,162
Total non interest 7,888 3,414 49,297 44,970
income
Non interest
expenses:
Salaries and employee 12,652 12,611 39,815 39,726
benefits
Occupancy and 5,474 4,878 16,811 14,304
equipment, net
Communication and 1,056 1,024 4,000 3,246
transportation
Marketing and 722 853 12,362 8,342
development
FDIC insurance 999 150 4,053 272
expense
Bank franchise tax 685 599 1,957 2,025
expense
Data processing 766 646 2,315 2,032
Debit card 702 624 2,070 1,812
interchange expense
Supplies 463 328 1,739 1,257
Other real estate 82 19 2,065 169
owned expense
Other 2,138 2,251 8,748 8,181
Total non interest 25,739 23,983 95,935 81,366
expenses
Income before income 8,458 6,953 61,057 50,899
tax expense
Income tax expense 2,797 2,451 22,770 17,851
Net income $ 5,661 $ 4,502 $ 38,287 $ 33,048
Third Quarter Ended Sept. 30, Nine Months Ended Sept. 30,
2009 2008 2009 2008
Per Share Data:
Basic average shares 20,779 20,591 20,731 20,485
outstanding
Diluted average 20,922 20,978 20,891 20,799
shares outstanding
End of period shares
outstanding:
Class A Common Stock 18,485 18,283 18,485 18,283
Class B Common Stock 2,309 2,322 2,309 2,322
Book value per share $ 15.14 $ 13.45 $ 15.14 $ 13.45
Earnings per share:
Basic earnings per 0.27 0.22 1.85 1.62
Class A Common Stock
Basic earnings per 0.26 0.21 1.82 1.59
Class B Common Stock
Diluted earnings per 0.27 0.22 1.84 1.59
Class A Common Stock
Diluted earnings per 0.26 0.20 1.80 1.56
Class B Common Stock
Cash dividends
declared per share:
Class A Common Stock 0.132 0.121 0.385 0.352
Class B Common Stock 0.120 0.110 0.350 0.320
Performance Ratios:
Return on average 0.74 % 0.60 % 1.47 % 1.40 %
assets
Return on average 7.11 6.61 16.55 16.66
equity
Efficiency ratio (2) 71 66 50 52
Yield on average 5.23 6.09 7.06 6.98
earning assets
Cost of
interest-bearing 1.77 2.65 1.90 2.96
liabilities
Net interest spread 3.46 3.44 5.16 4.02
Net interest margin 3.79 3.86 5.50 4.51
Asset Quality Ratios:
Loans on non-accrual 40,355 14,763 40,355 14,763
status
Loans past due 90
days or more and 2 1,217 2 1,217
still on accrual
Total non-performing 40,357 15,980 40,357 15,980
loans
Other real estate 3,239 2,017 3,239 2,017
owned
Total non-performing 43,596 17,997 43,596 17,997
assets
Non-performing loans 1.76 % 0.69 % 1.76 % 0.69 %
to total loans
Non-performing assets
to total loans 1.90 0.78 1.90 0.78
(including OREO)
Allowance for loan 0.86 0.61 0.86 0.61
losses to total loans
Allowance for loan
losses to 49 89 49 89
non-performing loans
Net loan charge-offs
to average loans - 0.26 0.70 1.32 0.72
Total Company
Net loan charge-offs
to average loans - 0.42 0.51 0.26 0.26
Banking Segment
Delinquent loans to 2.23 1.05 2.23 1.05
total loans (3)
Other Information:
End of period
full-time equivalent 752 720 752 720
employees
Number of banking 44 45 44 45
centers
Balance Sheet
Data
Quarterly Comparison
Sept. 30, June 30, 2009 March 31, Dec. 31, 2008 Sept. 30,
2009 2009 2008
Assets:
Cash and cash $ 138,906 $ 165,042 $ 442,039 $ 616,303 $ 72,735
equivalents
Investment 498,329 519,376 452,782 904,674 546,328
securities
Mortgage loans 8,597 33,287 11,499 11,298 6,758
held for sale
Loans 2,292,913 2,287,178 2,314,689 2,303,857 2,318,373
Allowance for (19,793 ) (19,886 ) (17,878 ) (14,832 ) (14,247 )
loan losses
Federal Home
Loan Bank stock, 26,248 26,248 26,248 25,082 25,082
at cost
Premises and 39,629 40,369 40,700 42,885 42,225
Equipment, net
Goodwill 10,168 10,168 10,168 10,168 10,168
Other assets and
interest 42,424 42,558 57,398 39,933 37,632
receivable
Total assets $ 3,037,421 $ 3,104,340 $ 3,337,645 $ 3,939,368 $ 3,045,054
Liabilities and
Stockholders'
Equity:
Deposits:
Non $ 325,641 $ 338,806 $ 380,039 $ 273,203 $ 279,260
interest-bearing
Interest-bearing 1,352,792 1,415,982 1,588,756 2,470,166 1,521,607
Total deposits 1,678,433 1,754,788 1,968,795 2,743,369 1,800,867
Securities sold
under agreements
to repurchase 280,841 299,028 325,214 339,012 322,608
and other
short-term
borrowings
Federal Home
Loan Bank 699,689 659,732 635,191 515,234 577,294
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Other
liabilities and 22,295 40,008 63,622 24,591 25,808
accrued interest
payable
Total 2,722,498 2,794,796 3,034,062 3,663,446 2,767,817
liabilities
Stockholders' 314,923 309,544 303,583 275,922 277,237
equity
Total
liabilities and $ 3,037,421 $ 3,104,340 $ 3,337,645 $ 3,939,368 $ 3,045,054
Stockholders'
equity
Average Balance
Sheet Data
Quarterly Comparison
Sept. 30, June 30, 2009 March 31, Dec. 31, 2008 Sept. 30,
2009 2009 2008
Assets:
Investment $ 533,202 $ 519,902 $ 572,694 $ 792,641 $ 538,270
securities
Federal funds
sold and other 87,202 188,604 795,834 232,591 7,723
interest-earning
deposits
Loans and fees,
including loans 2,308,156 2,316,494 2,612,313 2,315,382 2,340,007
held for sale
Total earning 2,928,560 3,025,000 3,980,841 3,340,614 2,886,000
assets
Total assets 3,056,269 3,216,869 4,174,783 3,470,788 3,010,211
Liabilities and
Stockholders'
Equity:
Non
interest-bearing $ 327,173 $ 346,065 $ 531,496 $ 269,903 $ 279,061
deposits
Interest-bearing 1,376,461 1,475,972 2,355,747 1,940,405 1,413,704
deposits
Securities sold
under agreements
to repurchase 311,867 328,951 327,006 381,695 352,498
and other
short-term
borrowings
Federal Home
Loan Bank 655,791 662,652 547,540 536,161 622,011
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Total
interest-bearing 2,385,359 2,508,815 3,271,533 2,899,501 2,429,453
liabilities
Stockholders' 318,704 311,831 293,456 276,663 272,500
equity
Income
Statement Data
Quarterly Comparison
Sept. 30, June 30, 2009 March 31, Dec. 31, 2008 Sept. 30,
2009 2009 2008
Total interest $ 38,265 $ 39,506 $ 97,357 $ 44,782 $ 43,927
income (4)
Total interest 10,529 11,585 16,541 16,805 16,081
expense
Net interest 27,736 27,921 80,816 27,977 27,846
income
Provision for 1,427 1,686 25,665 1,753 324
loan losses
Non interest
income:
Service
charges on 4,990 4,992 4,422 4,809 5,117
deposit
accounts
Electronic
refund check 137 2,230 22,905 88 738
fees
Net RAL
securitization 26 60 412 317 157
income
Mortgage 1,667 3,517 4,174 (270 ) 1,071
banking income
Debit card
interchange 1,321 1,312 1,159 1,187 1,194
fee income
Net loss on
sales, calls (850 ) (1,896 ) (3,125 ) (5,484 ) (5,273 )
and impairment
of securities
Other 597 692 555 343 410
Total non
interest 7,888 10,907 30,502 990 3,414
income
Non interest
expenses:
Salaries and
employee 12,652 12,647 14,516 12,392 12,611
benefits
Occupancy and 5,474 5,428 5,909 5,456 4,878
equipment, net
Communication
and 1,056 1,021 1,923 1,426 1,024
transportation
Marketing and 722 663 10,977 866 853
development
FDIC insurance 999 2,004 1,050 880 150
expense
Bank franchise 685 637 635 573 599
tax expense
Data 766 779 770 739 646
processing
Debit card
interchange 702 694 674 590 624
expense
Supplies 463 398 878 392 328
Other real
estate owned 82 272 1,711 69 19
expense
Other 2,138 2,011 4,599 2,843 2,251
Total non
interest 25,739 26,554 43,642 26,226 23,983
expenses
Income before
income tax 8,458 10,588 42,011 988 6,953
expense
Income tax 2,797 3,721 16,252 384 2,451
expense
Net income $ 5,661 $ 6,867 $ 25,759 $ 604 $ 4,502
Quarterly Comparison
Sept. 30, June 30, March 31, Dec. 31, 2008 Sept. 30,
2009 2009 2009 2008
Per Share Data:
Basic average
shares 20,779 20,749 20,662 20,615 20,591
outstanding
Diluted average
shares 20,922 20,910 20,832 20,886 20,978
outstanding
End of period
shares
outstanding:
Class A Common 18,485 18,439 18,412 18,318 18,283
Stock
Class B Common 2,309 2,310 2,310 2,310 2,322
Stock
Book value per $ 15.14 $ 14.92 $ 14.65 $ 13.38 $ 13.45
share
Earnings per
share:
Basic earnings
per Class A 0.27 0.33 1.25 0.03 0.22
Common Stock
Basic earnings
per Class B 0.26 0.32 1.24 0.02 0.21
Common Stock
Diluted earnings
per Class A 0.27 0.33 1.24 0.03 0.22
Common Stock
Diluted earnings
per Class B 0.26 0.32 1.23 0.02 0.20
Common Stock
Cash dividends
declared per
share:
Class A Common 0.132 0.132 0.121 0.121 0.121
Stock
Class B Common 0.121 0.121 0.110 0.110 0.110
Stock
Performance
Ratios:
Return on 0.74 % 0.85 % 2.47 % 0.07 % 0.60 %
average assets
Return on 7.11 8.81 35.11 0.87 6.61
average equity
Efficiency ratio 71 65 38 76 66
(2)
Yield on average 5.23 5.22 9.78 5.36 6.09
earning assets
Cost of
interest-bearing 1.77 1.85 2.02 2.32 2.65
liabilities
Net interest 3.46 3.37 7.76 3.04 3.44
spread
Net interest 3.79 3.69 8.12 3.35 3.86
margin
Asset Quality
Data:
Loans on
non-accrual 40,355 31,094 24,133 11,324 14,763
status
Loans past due
90 days or more 2 318 352 2,133 1,217
and still on
accrual
Total
non-performing 40,357 31,412 24,485 13,457 15,980
loans
Other real 3,239 2,723 6,386 5,737 2,017
estate owned
Total
non-performing 43,596 34,135 30,871 19,194 17,997
assets
Non-performing
loans to total 1.76 % 1.37 % 1.06 % 0.58 % 0.69 %
loans
Non-performing
assets to total 1.90 1.49 1.33 0.83 0.78
loans (including
OREO)
Allowance for
loan losses to 0.86 0.87 0.77 0.64 0.61
total loans
Allowance for
loan losses to 49 64 73 110 89
non-performing
loans
Net loan
charge-offs to 0.26 (0.06 ) 3.46 0.20 0.70
average loans -
Total Company
Net loan
charge-offs to 0.42 0.23 0.13 0.25 0.51
average loans -
Banking Segment
Delinquent loans
to total loans 2.23 1.71 1.53 1.07 1.05
(3)
Other
Information:
End of period
full-time 752 745 742 724 720
equivalent
employees
Number of 44 44 45 45 45
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 nine months ended September 30,
2009 and 2008 follows:
Three Months Ended September 30, 2009
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 27,576 $ 47 $ 113 $ 27,736
income
Provision for 2,309 (882 ) - 1,427
loan losses
Electronic
Refund Check - 137 - 137
fees
Net RAL
securitization - 26 - 26
income
Mortgage - - 1,667 1,667
banking income
Net loss on
sales, calls (850 ) - - (850 )
and impairment
of securities
Other non
interest 6,864 18 26 6,908
income
Total non
interest 6,014 181 1,693 7,888
income
Total non
interest 23,132 2,283 324 25,739
expenses
Gross
operating 8,149 (1,173 ) 1,482 8,458
profit
Income tax 2,855 (565 ) 507 2,797
expense
Net income $ 5,294 $ (608 ) $ 975 $ 5,661
Segment assets $ 3,020,498 $ 7,966 $ 8,957 $ 3,037,421
Net interest 3.79 % NM NM 3.79 %
margin
Three Months Ended September 30, 2008
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 27,520 $ 229 $ 97 $ 27,846
income
Provision for 191 133 - 324
loan losses
Electronic
Refund Check - 738 - 738
fees
Net RAL
securitization - 157 - 157
income
Mortgage - - 1,071 1,071
banking income
Net loss on
sales, calls
and impairment
of securities (5,273 ) - - (5,273 )
Other non
interest 7,140 25 (444 ) 6,721
income
Total non
interest 1,867 920 627 3,414
income
Total non
interest 21,250 2,574 159 23,983
expenses
Gross
operating 7,946 (1,558 ) 565 6,953
profit
Income tax 2,840 (591 ) 202 2,451
expense
Net income $ 5,106 $ (967 ) $ 363 $ 4,502
Segment assets $ 2,981,809 $ 56,428 $ 6,817 $ 3,045,054
Net interest 3.85 % NM NM 3.86 %
margin
Nine Months Ended September 30, 2009
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 82,905 $ 52,880 $ 688 $ 136,473
income
Provision for 9,425 19,353 - 28,778
loan losses
Electronic
Refund Check - 25,272 - 25,272
fees
Net RAL
securitization - 498 - 498
income
Mortgage - - 9,358 9,358
banking income
Net loss on
sales, calls (5,871 ) - - (5,871 )
and impairment
of securities
Other non
interest 19,912 50 78 20,040
income
Total non
interest 14,041 25,820 9,436 49,297
income
Total non
interest 71,212 23,632 1,091 95,935
expenses
Gross
operating 16,309 35,715 9,033 61,057
profit
Income tax 5,428 14,290 3,052 22,770
expense
Net income $ 10,881 $ 21,425 $ 5,981 $ 38,287
Segment assets $ 3,020,498 $ 7,966 $ 8,957 $ 3,037,421
Net interest 3.79 % NM NM 5.50 %
margin
Nine Months Ended September 30, 2008
(dollars in Traditional Banking Tax Refund Mortgage Banking Total Company
thousands) Solutions
Net interest $ 81,086 $ 20,373 $ 288 $ 101,747
income
Provision for 6,094 8,358 - 14,452
loan losses
Electronic
Refund Check - 17,668 - 17,668
fees
Net RAL
securitization - 13,030 - 13,030
income
Mortgage - - 3,806 3,806
banking income
Net loss on
sales, calls (8,880 ) - - (8,880 )
and impairment
of securities
Other non
interest 20,619 29 (1,302 ) 19,346
income
Total non
interest 11,739 30,727 2,504 44,970
income
Total non
interest 63,203 17,545 618 81,366
expenses
Gross
operating 23,528 25,197 2,174 50,899
profit
Income tax 8,135 8,966 750 17,851
expense
Net income $ 15,393 $ 16,231 $ 1,424 $ 33,048
Segment assets $ 2,981,809 $ 56,428 $ 6,817 $ 3,045,054
Net interest 3.90 % NM NM 4.51 %
margin
_____________________________________
(1) - The amount of loan fee income included in total interest income
was $763,000 and $1.3 million for the quarters ended September 30, 2009
and 2008. The amount of loan fee income included in total interest
income was $59.8 million and $23.0 million for the nine months ended
September 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: $763,000 (quarter ended September 30, 2009),
$1.2 million (quarter ended June 30, 2009), $57.8 million (quarter ended
March 31, 2009), $1.4 million (quarter ended December 31, 2008 and, $1.3
million (quarter ended September 30, 2008).
NM - Not meaningful
Source: Republic Bancorp
Contact: Republic Bancorp
Kevin Sipes, 502-560-8628
Executive Vice President and Chief Financial Officer