Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Howe Barnes Presentation (October 2008)
28 slides from Republic Bancorp's conference presentation, Oct 30, 2008
Slide 1: Republic Bancorp Howe Barnes Presentation
ee REPUBLIC BANCORP. HOWE BARNES Presentation Thursday, October 30, 2008
Slide 2: Safe Harbor
Safe Harbor During the course of this presentation, we will be providing you with a discussion of some of the factors we currently anticipate may influence the future results of Republic Bancorp, Inc. (“Republic” or the “Company”), as well as certain financial projections. We want to emphasize that
Slide 3: Steve Trager, President and Chief Executive Officer
Steve Trager President and Chief Executive Officer 9 }
Slide 4: Stock Overview
eee Stock Overview 1998 — IPO completed. 2.14 NASDAQ Symbol RBCAA ‘Shares Outstanding 09/30/08 20.6 ‘Market Capitalization 09/30/08 Stock Price 1/1/08 Stock Price 09/30/08 ‘Stock Price 10/28/08 Book Value Per Share 09/30/08 Average Daily Volume Class A Common Stock Dividend Yield Diluted Earnings pe
Slide 5: Company Profile
@ ee} Company Profile >» Headquartered in Louisville, Kentucky > Largest Kentucky based bank holding company > Holding Company for Republic Bank & Trust Company and Republic Bank Industry Leading Credit Quality ROA 1.40% YTD 9/30/08 ROE 16.66% YTD 9/30/08 $3.0 billion in assets $2.3 billion in loans
Slide 6: Outstanding Three-Year Record
eee) Outstanding Three-Year Record Compound Annual Growth Rate* Diluted EPS 18.63% Cash Dividends declared (Class A) 12.82% Stock Price Per Share 12.63% Book Value Per Share 8.01% * ~ As of September 30, 2008
Slide 7: Diversified Growth Markets Full Service Banking Centers
Diversified Growth Markets 45 Full Service Banking Centers Banking Center Locations: >» Kentucky - 36 - Louisville — 20 - Central / Western - 12 - Northern - 4 > Ohio-1 > Indiana - 3 @ (continued)
Slide 8: Florida Banking Market
~ - Nis me Banking Market Florida - Metropolitan Tampa — 5 Acquired in October 2006 Currently $88 million in total assets
Slide 9: Market Characteristics
eee) Market Characteristics > Louisville — 16" largest city in the U.S. » Steady economic and job growth rates > Stable real estate values > Large employers > Stable source of deposits and Loans > Attractive growth markets > Tourism » Existing and contiguous markets provide attractive opportunities
Slide 10: Organization History
Organization History 1977 1982 1984- 1987 1994 1998 2001 2005 2006 2008 Acquisition of 80+ year old Shelby County, Kentucky bank, renamed Republic Bank of Shelby County - Shelbyville Republic Bank & Trust Company founded Acquisition of 3 failed Saving and Loan Institutions Merger of the three Republ
Slide 11: Asset Growth
eee, Asset Growth
Slide 12: Operational Philosophy
@ ee} Operational Philosophy >» Executive Management and Board of Directors commitment to corporate governance >» Localized market leadership > Decentralized decision making >» Centralized operations and risk management > Specialized product offerings >» Maximized use of technology
Slide 13: Growth Strategies / Strategic Initiatives
ee Growth Strategies / Strategic Initiatives . > Entering fast growing markets by adding strategically located banking centers and making selective acquisitions = Focused on markets with attractive growth prospects - Focused within growing communities = Strategic de novo branching = Selective acquis
Slide 14: Deposit Mix
eee) Deposit Mix \ Interest Total Bearing Non Interest Demand Bearing (NOW and Deposits Supernow) 16% 11% Brokered Deposits: 12% Other Certificates, of Deposit case ‘Savings 2% Certificates, of Deposit 400,000+ 11% Cost of Deposits:() 2.72% 14 Note: "For the nine months ended September 20, 2008,
Slide 15: Lending Strategy
eee! Lending Strategy \ Highl ) an Portfolio (1) ) Industry leading credit quality with non performing loans to total loans of 0.69% as of 9/30/08 98% of loans in Kentucky and Southern Indiana market footprint Diversification between Consumer and Commercial Focus on segments where high touch service
Slide 16: Concentrations of Commercial Credit
Concentrations of Commercial Credit Description % of Total Loans Apartment Building Operators 7% Office Condominiums T% Real Property Lessors 5% Medical Offices 3% Strip Centers 3% Restaurants 1% Warehouses 1% Religious Organizations 1% Single Family Housing Construction 1% Sub Dividers and Develope
Slide 17: Key Investment Points
eee! Key Investment Points > Industry leading performance in 2008 > Outstanding credit quality > Acquisition opportunities > Diversification of income sources > Positioned for sustainable, profitable growth > We were here for you yesterday. We are here for you today. We will be here for you tomorrow
Slide 18: Financial Highlights
ee Financial Highlights
Slide 19: Performance Summary
eee} Performance Summary TT 9/30/08 2007 2006 Return on average assets 1.25% 0.81% 0.98% Return on average equity 15.18% 10.25% 12.46% Non performing loans to total loans — Period 0.69% 0.40% 0.28% end Net Charge Off to average loans - Traditional 0.19% 0.10% 0.09% Banking Segment Book value per sha
Slide 20: Diluted Earnings
Diluted Earnings Per Class A Common Stock $1.90 ee] 2006 2007 9/30/08 TTM © > 18.63% three year compound growth rate for EPS
Slide 21: Net Income
Net Income (In thousands) $39,454 $28,351 $24,913 2006 2007 9/30/08 TTM > Performance Drivers Increased net interest income + Strong fee based non interest income - Non interest expense control = Strong asset quality » TRS 21
Slide 22: Net Interest Income
eee! Net Interest Income (in thousands) $125,302 $88,298 $24.478 2006 2007 9/30/08 TTM > Performance Drivers - Balance Sheet well positioned for Rate Cuts - Steepening of yield curve - Significant TRS contribution
Slide 23: Net Interest Margin vs. Year End Prime Interest Rate
Net Interest Margin vs. Year End Prime Interest Rate @ 2003 2004 J =@-NIM YEAR END PRIME 2007 2008 - TTM
Slide 24: Non Interest Income as a % of Total Revenue
Non Interest Income as a aaEP % of Total Revenue 20.76% 2006 2007 9/30/08 TTM » Strong service charges on deposits > Significant TRS contribution
Slide 25: Tax Refund Solutions
@ee| Tax Refund Solutions Total Refund Anticipation Loan Volume $1.8 billion Total Electronic Refund Check Volume $3.6 billion Net Income (YTD 9/30/08) $16.2 million
Slide 26: Five Year Cumulative Total Return
Five Year Cumulative Total Return* eee $206.21 $156.09 $140.06 $124.72 $100.00 per 2005 2006 2007 9/30/2008 *~ Assumes an investment of $100 on December 31,2003
Slide 27: Total Market Capitalization
eee! Total Market Capitalization {tn mitions) 9/30/2008
Slide 28: Thank You
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