LOUISVILLE, Ky.--(BUSINESS WIRE)--
Republic Bancorp, Inc. is pleased to report net income of $44.6 million
for the first quarter of 2010, an $18.9 million increase over the first
quarter of 2009. Diluted Earnings per Class A Common Share increased to
$2.14 for the quarter. Return on average assets ("ROA") and return on
average equity ("ROE") were both strong during the quarter at 4.04% and
53.63%, respectively. Steve Trager, Republic's President & CEO noted, "I
am proud and excited to be part of such a dynamic and growing company as
Republic. This was an exceptional quarter for us, as our solid core
banking performance was bolstered by another successful tax season.
Thanks to our associates and clients, Republic was recently listed #5 in
the Bank Director Magazine listing of America's top 150
performing banks with $3 billion or more in assets. With our strong
first quarter, we have an opportunity to remain one of the top
performing banks in the country during 2010."
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 first quarter 2010 financial
performance compared to the same period in 2009:
Three Months Ended %
(dollars in thousands, except per share data) 3/31/10 3/31/09 Increase
Gross Operating Profit $ 68,820 $ 42,011 64 %
Net Income $ 44,628 $ 25,759 73 %
Diluted Earnings per Class A Share $ 2.14 $ 1.24 73 %
Return on Average Assets 4.04 % 2.47 % 64 %
Return on Average Equity 53.63 % 35.11 % 53 %
Results of Operations for the First
Quarter of 2010 Compared to the First Quarter of 2009
Tax Refund Solutions ("TRS")
TRS entered the first quarter 2010 tax season with a plan that, among
other things, reduced prices on its Refund Anticipation Loan ("RAL") and
Electronic Refund Check/Electronic Refund Deposit ("ERC/ERD") products,
eliminated some products such as instant RALs, limited the number of
locations that could offer the RAL product, focused on the consistent
delivery of products to its customers and emphasized asset quality
through improved loan underwriting. This led to net income at TRS of
$41.7 million for the first quarter of 2010 compared to $20.9 million
for the first quarter of 2009.
The Company was able to achieve its strong growth in net income at TRS
despite an 11% decline in RAL fees and a reduction in the number of tax
preparation offices that originated Republic RALs during the first
quarter 2010 tax season. The increase in net income from TRS was driven
by lower losses on RALs, growth in demand for TRS' non-loan ERC/ERD
product, lower funding costs compared to the first quarter of 2009 and a
boost in the average number of bank products per active location.
The 11% decline in RAL fees for the first quarter of 2010 was driven by
the Company's new pricing model, which substantially reduced Republic's
pricing to the customer on its RAL product. In conjunction with the new
pricing model, Republic significantly reduced third party payments to
technology and service providers, partially offsetting the reduction in
price. While the Company experienced a decline in RAL revenue during the
quarter, ERC/ERD fee income increased $30.3 million, or 132%, over the
first quarter of 2009 positively impacted by a 28% increase in ERC/ERD
volume, as well as the reduction in third party payments.
A significant driver in the overall profitability of TRS was the
reduction in unfunded RALs compared to the prior year. RALs outstanding
past their expected funding date from the IRS at quarter end 2010 and
2009 were $18.5 million, or 0.63% of total RALs originated during the
first quarter 2010 season, compared to $33.9 million, or 1.38% of RALs
originated during the first quarter 2009 season. As a result, TRS'
provision for loan losses was $14.0 million for the first quarter of
2010 compared to $22.0 million during the first quarter of 2009. The
decrease in the TRS provision for loan losses was largely due to
improved underwriting criteria developed from the Company's 2009 tax
season funding history from the IRS.
TRS net income also benefited significantly from lower funding costs in
2010 as compared to 2009. Average brokered deposits outstanding utilized
to fund RALs during the first quarter of 2010 and 2009 were $1.0 billion
and $857 million, with a weighted average cost of 0.53% and 2.29%,
respectively. As a result, interest expense for the TRS segment was $1.4
million for the first quarter of 2010, a decrease of $3.3 million from
the first quarter of 2009.
"There were several reasons for the strong results in our tax segment.
First and foremost contributing to our success was the off-season
preparation and overall execution of our strategic enhancements that
were implemented by all of our dedicated TRS associates. We remain
committed to fulfilling the need for refund settlement products as
represented by the millions of taxpayers who used such services
throughout the United States in 2010," further noted Trager.
Traditional Banking and Mortgage Banking (collectively "Core Banking")
Overall, net income from Core Banking decreased from $4.9 million during
the first quarter of 2009 to $2.9 million during the first quarter of
2010, as the Company deployed a strategy which took advantage of the
opportunity to lower funding costs by prepaying high rate borrowings
during the first quarter of 2010 resulting in a pre-tax early
termination penalty of $1.5 million. Net income for the first quarter of
2010 was also negatively impacted by lower net interest income.
Core Banking net interest income declined by $904,000 during the first
quarter of 2010 compared to the same period in 2009, as the Traditional
Bank's net interest margin decreased to a still solid 3.78% for the
quarter. "Given our continued strong earnings and overall capital
strength, we have remained conservative with our monthly cash in-flows
from security and loan paydowns during the past several months,
generally reinvesting much of our excess cash into lower-yielding,
immediately repricing type investment instruments." This strategy, which
negatively impacted Republic's net interest income the past several
quarters, has bolstered the Company's risk position against future
increases in short-term market interest rates. In addition, decreased
demand for adjustable rate loan products combined with the Company's
enhanced underwriting standards resulted in a decrease in average loan
balances within the Traditional Banking segment compared to the first
quarter of 2009.
Core Banking non interest income decreased by $664,000 during the first
quarter of 2010 to $6.5 million. Within the non interest income
category, mortgage banking income decreased by $3.2 million for the
first quarter of 2010. The decline in mortgage banking income was driven
by a decrease in consumer demand for long-term, fixed rate home loans,
as well as a $1.1 million credit to mortgage banking income recorded by
the Company during the first quarter of 2009 to reverse a previously
established valuation allowance for its mortgage servicing rights
("MSR") portfolio. Partially offsetting the decline in mortgage banking
income, the Company incurred an Other-Than-Temporary-Impairment ("OTTI")
charge associated with its small private label security portfolio of
only $69,000 during the first quarter of 2010, while during the first
quarter of 2009 the Company incurred a $3.1 million OTTI charge.
Core Banking non-interest expenses increased $1.9 million, or 8%, for
the first quarter of 2010 to $26.6 million. The increase in non-interest
expense was primarily driven by the previously mentioned $1.5 million
early termination penalty associated with the early payoff of $87
million in FHLB advances during February 2010. These advances had a
weighted average cost of 3.48% and were all scheduled to mature in the
next 12 months. If short-term interest rates remain stable over the next
12 months, management anticipates this strategy will save the Company
approximately $1.6 million in interest expense on its FHLB advances
during that time period, netting the Company a combined overall savings
of approximately $100,000 as a result of the transaction.
Core Banking provision for loan losses for the first quarter of 2010 was
$2.8 million as compared to $3.7 million for the first quarter of 2009,
as the Core Bank's credit metrics stabilized during the quarter.
Included in its improved credit metrics was a $3 million reduction in
non-performing loans for the quarter, as well as an improvement in the
Traditional Bank's delinquency ratio to 1.78% at quarter end. Overall,
the Traditional Bank's allowance for loan losses as a percentage of
total loans grew from 1.01% at December 31, 2009 to 1.07% at March 31,
2010. "Localized lending and conservative underwriting standards have,
to a degree, minimized the recession's impact on our portfolio. Our
familiarity and local market knowledge, coupled with our proactive
management and development of prudent solutions to address customers'
financial issues, have been critical elements of our strategy for
minimizing potential losses," commented Steve Trager.
CONCLUSION
"In combination with the tremendous financial success we had during the
first quarter, we furthered our commitment to the charitable and
philanthropic community with a $5 million contribution to the new
Republic Bank Foundation, which was formed to support charitable,
educational, scientific and religious organizations throughout
communities in Kentucky, Indiana, Ohio and Florida. We are thrilled that
we are in such a strong position financially and are able to support
such a worthwhile organization. We are very proud of our position in the
community as a leader in supporting charitable causes and pledge to
maintain this treasured status in the future. As a locally owned
company, our clients, shareholders and associates can take great pride
in the fact that 'what we make in our community, stays in our community.'
"As we wrap up another successful quarter, we are reminded why our
steady approach to banking has served us so well. Our conservative risk
management and adherence to the basic banking principles have provided
great returns to our shareholders and associates. You can be assured we
will continue to employ prudent underwriting standards and hold true to
our core strategies that give us the best opportunity to persevere
throughout challenging times. We look forward to the remainder of 2010
with much optimism, as we have built a solid foundation for growth in
addition to strong capital and liquidity levels. Once again, we would
like to thank all of our clients, shareholders and associates for their
contribution to our success. Without their continued support none of
this success would be possible. 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 $3.2 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 2009 Form 10-K
and subsequent 10-Qs filed with the Securities and Exchange Commission.
Republic Bancorp, Inc. Financial Information
First Quarter 2010 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
March 31, 2010 Dec. 31, 2009 March 31, 2009
Assets:
Cash and cash equivalents $ 322,291 $ 1,068,179 $ 442,039
Investment securities 460,231 467,235 452,782
Mortgage loans held for sale 5,801 5,445 11,499
Loans 2,273,188 2,268,232 2,314,689
Allowance for loan losses (25,640 ) (22,879 ) (17,878 )
Federal Home Loan Bank stock, at 26,274 26,248 26,248
cost
Premises and equipment, net 38,300 39,380 40,700
Goodwill 10,168 10,168 10,168
Other assets and accrued interest 70,382 56,760 57,398
receivable
Total assets $ 3,180,995 $ 3,918,768 $ 3,337,645
Liabilities and Stockholders'
Equity:
Deposits:
Non interest-bearing $ 473,221 $ 318,275 $ 380,039
Interest-bearing 1,425,909 2,284,206 1,588,756
Total deposits 1,899,130 2,602,481 1,968,795
Securities sold under agreements
to repurchase and other 275,111 299,580 325,214
short-term borrowings
Federal Home Loan Bank advances 545,564 637,607 635,191
Subordinated note 41,240 41,240 41,240
Other liabilities and accrued 62,736 21,840 63,622
interest payable
Total liabilities 2,823,781 3,602,748 3,034,062
Stockholders' equity 357,214 316,020 303,583
Total liabilities and $ 3,180,995 $ 3,918,768 $ 3,337,645
Stockholders' equity
Average Balance Sheet Data
Three Months Ended March 31,
2010 2009
Assets:
Investment securities $ 474,792 $ 572,694
Federal funds sold and other interest-earning 1,093,433 795,834
deposits
Loans and fees, including loans held for sale 2,658,713 2,612,313
Total earning assets 4,226,938 3,980,841
Total assets 4,423,918 4,174,783
Liabilities and Stockholders' Equity:
Non interest-bearing deposits $ 635,587 $ 531,496
Interest-bearing deposits 2,406,326 2,355,747
Securities sold under agreements to repurchase 324,149 327,006
and other short-term borrowings
Federal Home Loan Bank advances 612,379 547,540
Subordinated note 41,240 41,240
Total interest-bearing liabilities 3,384,094 3,271,533
Stockholders' equity 332,859 293,456
Income Statement Data
Three Months Ended March 31,
2010 2009
Total interest income(1) $ 87,229 $ 97,357
Total interest expense 10,357 16,541
Net interest income 76,872 80,816
Provision for loan losses 16,790 25,665
Non interest income:
Service charges on deposit accounts 3,872 4,422
Electronic refund check fees 53,168 22,905
Net RAL securitization income 195 412
Mortgage banking income 1,012 4,174
Debit card interchange fee income 1,220 1,159
Net gain / loss on sales, calls and impairment (69 ) (3,125 )
of securities
Other 479 555
Total non interest income 59,877 30,502
Non interest expenses:
Salaries and employee benefits 17,378 14,516
Occupancy and equipment, net 6,418 5,909
Communication and transportation 2,469 1,923
Marketing and development 8,592 10,977
FDIC insurance expense 1,117 1,050
Bank franchise tax expense 1,145 635
Data processing 720 770
Debit card processing expense 649 674
Supplies 1,032 878
Other real estate owned expense 301 1,711
FHLB advance prepayment expense 1,531 -
Other 9,787 4,599
Total non interest expenses 51,139 43,642
Income before income tax expense 68,820 42,011
Income tax expense 24,192 16,252
Net income $ 44,628 $ 25,759
Three Months Ended March 31,
2010 2009
Per Share Data:
Basic average shares outstanding 20,814 20,662
Diluted average shares outstanding 20,872 20,832
End of period shares outstanding:
Class A Common Stock 18,502 18,412
Class B Common Stock 2,309 2,310
Book value per share $ 17.16 $ 14.65
Earnings per share:
Basic earnings per Class A Common Stock 2.15 1.25
Basic earnings per Class B Common Stock 2.13 1.24
Diluted earnings per Class A Common Stock 2.14 1.24
Diluted earnings per Class B Common Stock 2.13 1.23
Cash dividends declared per share:
Class A Common Stock 0.132 0.121
Class B Common Stock 0.120 0.110
Performance Ratios:
Return on average assets 4.04 % 2.47 %
Return on average equity 53.63 35.11
Efficiency ratio(2) 37 38
Yield on average earning assets 8.25 9.78
Cost of interest-bearing liabilities 1.22 2.02
Net interest spread 7.03 7.76
Net interest margin 7.27 8.12
Asset Quality Ratios:
Loans on non-accrual status 39,955 24,133
Loans past due 90 days or more and still on 4 352
accrual
Total non-performing loans 39,959 24,485
Other real estate owned 6,203 6,386
Total non-performing assets 46,162 30,871
Non-performing loans to total loans 1.76 % 1.06 %
Non-performing loans to total loans - Banking 1.78 % 1.07 %
Segment
Non-performing assets to total loans (including 2.03 1.33
OREO)
Allowance for loan losses to total loans 1.13 0.77
Allowance for loan losses to total loans - 1.07 0.77
Banking Segment
Allowance for loan losses to non-performing 64 73
loans
Net loan charge-offs to average loans 2.11 3.46
Net loan charge-offs to average loans - Banking 0.31 0.13
Segment
Delinquent loans to total loans(3) 1.76 1.53
Delinquent loans to total loans - Banking 1.78 1.33
Segment(3)
Other Information:
End of period full-time equivalent employees 749 742
Number of banking centers 44 45
Balance Sheet
Data
Quarterly Comparison
March 31, Dec. 31, 2009 Sept. 30, June 30, 2009 March 31,
2010 2009 2009
Assets:
Cash and cash $ 322,291 $ 1,068,179 $ 138,906 $ 165,042 $ 442,039
equivalents
Investment 460,231 467,235 498,329 519,376 452,782
securities
Mortgage loans 5,801 5,445 8,597 33,287 11,499
held for sale
Loans 2,273,188 2,268,232 2,292,913 2,287,178 2,314,689
Allowance for (25,640 ) (22,879 ) (19,793 ) (19,886 ) (17,878 )
loan losses
Federal Home
Loan Bank stock, 26,274 26,248 26,248 26,248 26,248
at cost
Premises and 38,300 39,380 39,629 40,369 40,700
Equipment, net
Goodwill 10,168 10,168 10,168 10,168 10,168
Other assets and
interest 70,382 56,760 42,424 42,558 57,398
receivable
Total assets $ 3,180,995 $ 3,918,768 $ 3,037,421 $ 3,104,340 $ 3,337,645
Liabilities and
Stockholders'
Equity:
Deposits:
Non $ 473,221 $ 318,275 $ 325,641 $ 338,806 $ 380,039
interest-bearing
Interest-bearing 1,425,909 2,284,206 1,352,792 1,415,982 1,588,756
Total deposits 1,899,130 2,602,481 1,678,433 1,754,788 1,968,795
Securities sold
under agreements
to repurchase 275,111 299,580 280,841 299,028 325,214
and other
short-term
borrowings
Federal Home
Loan Bank 545,564 637,607 699,689 659,732 635,191
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Other
liabilities and 62,736 21,840 22,295 40,008 63,622
accrued interest
payable
Total 2,823,781 3,602,748 2,722,498 2,794,796 3,034,062
liabilities
Stockholders' 357,214 316,020 314,923 309,544 303,583
equity
Total
liabilities and $ 3,180,995 $ 3,918,768 $ 3,037,421 $ 3,104,340 $ 3,337,645
Stockholders'
equity
Average Balance
Sheet Data
Quarterly Comparison
March 31, Dec. 31, 2009 Sept. 30, June 30, 2009 March 31,
2010 2009 2009
Assets:
Investment $ 474,792 $ 522,783 $ 533,202 $ 519,902 $ 572,694
securities
Federal funds
sold and other 1,093,433 301,090 87,202 188,604 795,834
interest-earning
deposits
Loans and fees,
including loans 2,658,713 2,287,368 2,308,156 2,316,494 2,612,313
held for sale
Total earning 4,226,938 3,111,241 2,928,560 3,025,000 3,980,841
assets
Total assets 4,423,918 3,232,793 3,056,269 3,216,869 4,174,783
Liabilities and
Stockholders'
Equity:
Non
interest-bearing $ 635,587 $ 324,797 $ 327,173 $ 346,065 $ 531,496
deposits
Interest-bearing 2,406,326 1,544,941 1,376,461 1,475,972 2,355,747
deposits
Securities sold
under agreements
to repurchase 324,149 327,056 311,867 328,951 327,006
and other
short-term
borrowings
Federal Home
Loan Bank 612,379 653,747 655,791 662,652 547,540
advances
Subordinated 41,240 41,240 41,240 41,240 41,240
note
Total
interest-bearing 3,384,094 2,566,984 2,385,359 2,508,815 3,271,533
liabilities
Stockholders' 332,859 316,855 318,704 311,831 293,456
equity
Income Statement Data
Quarterly Comparison
March 31, Dec. 31, Sept. 30, June 30, 2009 March 31, 2009
2010 2009 2009
Total interest $ 87,229 $ 37,477 $ 38,265 $ 39,506 $ 97,357
income(4)
Total interest 10,357 10,087 10,529 11,585 16,541
expense
Net interest 76,872 27,390 27,736 27,921 80,816
income
Provision for 16,790 5,197 1,427 1,686 25,665
loan losses
Non interest
income:
Service
charges on 3,872 4,752 4,990 4,992 4,422
deposit
accounts
Electronic
refund check 53,168 17 137 2,230 22,905
fees
Net RAL
securitization 195 16 26 60 412
income
Mortgage 1,012 1,663 1,667 3,517 4,174
banking income
Debit card
interchange 1,220 1,322 1,321 1,312 1,159
fee income
Net gain /
loss on sales,
calls and (69 ) 49 (850 ) (1,896 ) (3,125 )
impairment of
securities
Other 479 505 597 692 555
Total non
interest 59,877 8,324 7,888 10,907 30,502
income
Non interest
expenses:
Salaries and
employee 17,378 11,358 12,652 12,647 14,516
benefits
Occupancy and 6,418 5,559 5,474 5,428 5,909
equipment, net
Communication
and 2,469 1,354 1,056 1,021 1,923
transportation
Marketing and 8,592 784 722 663 10,977
development
FDIC insurance 1,117 940 999 2,004 1,050
expense
Bank franchise 1,145 686 685 637 635
tax expense
Data 720 702 766 779 770
processing
Debit card
processing 649 1,026 702 694 674
expense
Supplies 1,032 659 463 398 878
Other real
estate owned 301 188 82 272 1,711
expense
FHLB advance
prepayment 1,531 - - - -
expense
Other 9,787 2,294 2,138 2,011 4,599
Total non
interest 51,139 25,550 25,739 26,554 43,642
expenses
Income before
income tax 68,820 4,967 8,458 10,588 42,011
expense
Income tax 24,192 1,123 2,797 3,721 16,252
expense
Net income $ 44,628 $ 3,844 $ 5,661 $ 6,867 $ 25,759
Quarterly Comparison
March 31, Dec. 31, Sept. 30, June 30, 2009 March 31,
2010 2009 2009 2009
Per Share Data:
Basic average
shares 20,814 20,802 20,779 20,749 20,662
outstanding
Diluted average
shares 20,872 20,890 20,922 20,910 20,832
outstanding
End of period
shares
outstanding:
Class A Common 18,502 18,499 18,485 18,439 18,412
Stock
Class B Common 2,309 2,309 2,309 2,310 2,310
Stock
Book value per $ 17.16 $ 15.19 $ 15.14 $ 14.92 $ 14.65
share
Earnings per
share:
Basic earnings
per Class A 2.15 0.19 0.27 0.33 1.25
Common Stock
Basic earnings
per Class B 2.13 0.17 0.26 0.32 1.24
Common Stock
Diluted earnings
per Class A 2.14 0.19 0.27 0.33 1.24
Common Stock
Diluted earnings
per Class B 2.13 0.17 0.26 0.32 1.23
Common Stock
Cash dividends
declared per
share:
Class A Common 0.132 0.132 0.132 0.132 0.121
Stock
Class B Common 0.120 0.120 0.120 0.120 0.110
Stock
Performance
Ratios:
Return on 4.04 % 0.48 % 0.74 % 0.85 % 2.47 %
average assets
Return on 53.63 4.85 7.11 8.81 35.11
average equity
Efficiency ratio 37 71 71 65 38
(2)
Yield on average 8.25 4.82 5.23 5.22 9.78
earning assets
Cost of
interest-bearing 1.22 1.57 1.77 1.85 2.02
liabilities
Net interest 7.03 3.25 3.46 3.37 7.76
spread
Net interest 7.27 3.52 3.79 3.69 8.12
margin
Asset Quality
Data:
Loans on
non-accrual 39,955 43,136 40,355 31,094 24,133
status
Loans past due
90 days or more 4 8 2 318 352
and still on
accrual
Total
non-performing 39,959 43,144 40,357 31,412 24,485
loans
Other real 6,203 4,772 3,239 2,723 6,386
estate owned
Total
non-performing 46,162 47,916 43,596 34,135 30,871
assets
Non-performing
loans to total 1.76 % 1.90 % 1.76 % 1.37 % 1.06 %
loans
Non-performing
loans to total 1.78 % 1.90 % 1.76 % 1.37 % 1.07 %
loans - Banking
Segment
Non-performing
assets to total 2.03 2.11 1.90 1.49 1.33
loans (including
OREO)
Allowance for
loan losses to 1.13 1.01 0.86 0.87 0.77
total loans
Allowance for
loan losses to 1.07 1.01 0.86 0.87 0.77
total loans -
Banking Segment
Allowance for
loan losses to 64 53 49 64 73
non-performing
loans
Net loan
charge-offs to 2.11 0.37 0.26 (0.06 ) 3.46
average loans
Net loan
charge-offs to 0.31 0.59 0.42 0.23 0.13
average loans -
Banking Segment
Delinquent loans
to total loans 1.76 1.98 2.23 1.71 1.53
(3)
Delinquent loans
to total loans - 1.78 1.98 2.23 1.71 1.33
Banking Segment
(3)
Other
Information:
End of period
full-time 749 735 745 742 742
equivalent
employees
Number of 44 44 44 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"). They are also distinguished by the level of
information provided to the chief operating decision maker, who uses such
information to review performance of various components of the business (such as
branches and subsidiary banks), which are then aggregated if operating
performance, products/services, and customers are similar. Loans, investments
and deposits provide the majority of the net revenue from Traditional Banking
operations; servicing fees and loan sales provide the majority of revenue from
Mortgage Banking operations; RAL fees and ERC/ERD fees provide the majority of
the revenue from TRS. All Company operations are domestic. Segment information
for the three months ended March 31, 2010 and 2009 follows:
Three Months Ended March 31, 2010
Traditional Tax Refund Mortgage
(dollars in thousands) Total Company
Banking Solutions Banking
Net interest income $ 27,261 $ 49,534 $ 77 $ 76,872
Provision for loan losses 2,777 14,013 - 16,790
Electronic Refund Check fees - 53,168 - 53,168
Net RAL securitization - 195 - 195
income
Mortgage banking income - - 1,012 1,012
Net gain on sales, calls and (69 ) - - (69 )
impairment of securities
Other non interest income 5,563 8 - 5,571
Total non interest income 5,494 53,371 1,012 59,877
Total non interest expenses 25,809 24,502 828 51,139
Gross operating profit 4,169 64,390 261 68,820
Income tax expense 1,394 22,677 121 24,192
Net income $ 2,775 $ 41,713 $ 140 $ 44,628
Segment assets $ 3,019,385 $ 147,209 $ 14,401 $ 3,180,995
Net interest margin 3.78 % NM NM 7.27 %
Three Months Ended March 31, 2009
Traditional Tax Refund Mortgage
(dollars in thousands) Total Company
Banking Solutions Banking
Net interest income $ 27,958 $ 52,574 $ 284 $ 80,816
Provision for loan losses 3,657 22,008 - 25,665
Electronic Refund Check fees - 22,905 - 22,905
Net RAL securitization - 412 - 412
income
Mortgage banking income - - 4,174 4,174
Net loss on sales, calls and (3,125 ) - - (3,125 )
impairment of securities
Other non interest income 5,959 15 162 6,136
Total non interest income 2,834 23,332 4,336 30,502
Total non interest expenses 24,307 18,901 434 43,642
Gross operating profit 2,828 34,997 4,186 42,011
Income tax expense 697 14,112 1,443 16,252
Net income $ 2,131 $ 20,885 $ 2,743 $ 25,759
Segment assets $ 3,180,121 $ 137,555 $ 19,969 $ 3,337,645
Net interest margin 3.85 % NM NM 8.12 %
(1) - The amount of loan fee income included in total interest income was $51.2
million and $57.8 million for the quarters ended March 31, 2010 and 2009.
(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: $51.2 million (quarter ended March 31, 2010), $900,000
(quarter ended December 31, 2009), $763,000 (quarter ended September 30, 2009),
$1.2 million (quarter ended June 30, 2009) and $57.8 million (quarter ended
March 31, 2009).
NM - Not meaningful
Source: Republic Bancorp, Inc.
Contact: Republic Bancorp, Inc.
Kevin Sipes
Executive Vice President and Chief Financial Officer
502-560-8628