Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — 2012 Raymond James Bank Conference
28 slides from Republic Bancorp's conference presentation, Aug 13, 2012
Slide 1: 2012 Raymond James Bank Conference
2012 Raymond James Bank Conference August 14, 2012
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, Chairman and Chief Executive Officer
Steve Trager Chairman and Chief Executive Officer
Slide 4: Company Profile
Company Profile 4 • Second largest Kentucky based bank holding company with total assets of $3.3 billion at 6/30/12 • Holding Company for Republic Bank & Trust Company (Kentucky) and Republic Bank (Florida) – 43 locations in KY, IN, OH, FL and TN • Diverse Business Operating Segments – Traditional b
Slide 5: Stock Overview
Stock Overview 1998 – IPO completed 2.14 million shares issued NASDAQ Symbol RBCAA Total Shares Outstanding – 6/30/12 21.0 million Total Market Capitalization – 7/31/12 $494.7 million Stock Price – 12/31/11 $22.90 Stock Price - 7/31/12 $23.61 Book Value Per Share – 6/30/12 $25.75 Tangible Book Value
Slide 6: Total Return Analysis
Total Return Analysis * 10 Years (8/1/02 – 7/31/12) * ‐ gross dividends assumed to be reinvested into security/index. RBCAA S&P 500 Russell 2000 Index NASDAQ Bank Index DOW JONES Industrial Average 213.3% 84.8% 129.0% ‐ 1.3% 91.6%
Slide 7: Strong Dividend History
Strong Dividend History $0.473 $0.517 $0.561 $0.605 $0.649 * Projected 2012 based on 3rd quarter & 4th quarter 2012 dividends equal to 2nd quarter 2012 dividend. 2008 2009 2010 2011 2012*
Slide 8: Banking Market Overview
Banking Market Overview Banking Center Locations: Kentucky – 35 Louisville – 20 Central / Western – 12 Northern – 3 Ohio – 1 Indiana – 3 Tennessee – 1
Slide 9: Banking Market Overview: Florida
Banking Market Overview Florida Metropolitan Tampa – 4 Acquired in 2006 $115 million in total assets as of June 30, 2012
Slide 10: YTD June 30, 2012 Highlights
YTD June 30, 2012 ‐ Highlights • Record net income of $92.1 million, a 15% increase over prior year • Purchase of Tennessee Commerce Bank (“TCB”), resulting in Bargain Purchase Gain of $27.8 million • Return On Average Assets (“ROA”) of 4.94% • Return On Average Equity (“ROE”) of 35.19% • Capital ra
Slide 11: YTD June 30, 2012 Highlights
YTD June 30, 2012 ‐ Highlights • Solid Organic Loan Portfolio Growth • Mortgage Warehouse Lending Growth • Core Deposit Growth • Increased cash dividends 7% during 2nd Qtr 2012 ‐ 12th consecutive annual increase • Credit metrics continued to compare favorably to peer
Slide 12: 2012 Highlights – RPG (TRS Division)
2012 Highlights – RPG (TRS Division) • 3.4 million products • $13.5 billion of state and federal electronic tax refunds processed • RALs outstanding past their expected funding date from the IRS at June 30, 2012 = 1.39% of total RALs originated compared to 1.49% at June 30, 2011 • 15% / 85% ‐ RAL /
Slide 13: Solid Net Income Growth
Solid Net Income Growth $24.9 $33.7 $42.1 $64.8 $94.1 $80.1 $92.1 In millions
Slide 14: Diluted Earnings Per Class A Common Stock
Diluted Earnings Per Class A Common Stock $1.20 $1.62 $2.02 $3.10 $4.49 $3.82 $4.38 32.3% five year annual compounded growth rate for June 30, 2012 TTM Diluted EPS
Slide 15: Balance Sheet
REPUBLIC \ Balance Sheet :
Slide 16: June 30, 2012 Capital Foundation
June 30, 2012 Capital Foundation Republic Bancorp Peer 16.94% 26.49% 27.50% 9.88% 14.41% 15.97% Republic Bancorp Peer Well Capitalized 5.0% Well Capitalized 6.0% Well Capitalized 10.0% Peer Data Obtained from June 30, 2012 Uniform Bank Performance Report (“UBPR”)
Slide 17: Loan Portfolio
Loan Portfolio Loan Portfolio Balances in millions $2,397 $2,304 $2,268 $2,175 $2,285 $2,440 Loan Portfolio Composition 6/30/12 Residential Real Estate ‐ Owner Occupied 45% Residential Real Estate ‐ Non ‐ Owner Occupied 4% Commercial Real Estate 26% Commercial Real Estate ‐ Purchased Whole Loans 1%
Slide 18: Commercial Concentration Report
Commercial Concentration Report 6/30/12 in thousands % of Loans Risk Based Industry Category Outstanding Capital Nonres Bldg Oper (Office Condo's) 177,900 $ 31% Warehouse Lending 170,500 29% Residential Building Operators 101,075 17% Offices & Clinics of Medical Doctors 75,697 13% Real Property Less
Slide 19: Deposits Summary
Interest Bearing Demand 28% Money Market Accounts 24% Brokered Money Market Accounts 1% Savings 3% IRAs 2% CDs $100K and Over 4% Other CDs 6% Brokered CDs 5% Non Interest Bearing 27% Avg. Quarterly Transactional Account Balances Deposit Composition 6/30/12 Period End Total Deposits: $1.90 Billion De
Slide 20: Industry Strong Credit Quality
Industry Strong Credit Quality
Slide 21: Credit Quality Trends – Traditional Banking
Credit Quality Trends – Traditional Banking Ratio 6/30/12 3/31/12 2011 2010 2009 Non Performing Loans / Total Loans 0.93% 1.03% 1.02% 1.30% 1.90% Non Performing Assets / Total Assets 1.26% 1.51% 1.10% 1.32% 1.60% Delinquent Loans / Total Loans 0.74% 1.14% 1.07% 1.24% 1.98% Allowance / Non Performing
Slide 22: Net Loan Charge Offs To Average Loans
Net Loan Charge Offs To Average Loans (Traditional Banking Segment) 0.10% 0.26% 0.34% 0.51% 0.24% 0.19% 0.46% 0.29% 0.97% 1.86% 1.66% 0.93% 1.03% 0.63% Republic Peer(1) 22 (1) Peer Data obtained from June 30, 2012 UBPR (2) YTD June data annualized
Slide 23: Non Performing Loans To Total Loans
Non Performing Loans To Total Loans Republic Peer(1) 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 6/30/12 0.40% 0.58% 1.90% 1.30% 1.02% 0.93% 0.96% 2.36% 4.33% 3.87% 3.17% 2.77% (1) Peer Data obtained from June 30, 2012 UBPR
Slide 24: Delinquent Loans To Total Loans
Delinquent Loans To Total Loans 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 6/30/12 0.69% 1.07% 1.98% 1.24% 1.07% 0.74%
Slide 25: Growth Initiatives
Growth Initiatives • Grow existing product lines –Warehouse Lending, Credit Card, and Debit Card income • Develop new lines of business – Prepaid Cards • Make selective acquisitions • Add strategically located banking centers • Outperform peer financial performance • Focus on core deposit growth ini
Slide 26: 2012 Challenges & Opportunities
2012 Challenges & Opportunities • Improve net interest margin by capitalizing on low cost deposit opportunities within Treasury Management • Control non ‐ interest expenses • Expand product offerings to the under ‐ served market through nontraditional delivery channels • Maintain industry ‐ strong c
Slide 27: We were here for you yesterday.
We were here for you yesterday. We are here for you today. We will be here for you tomorrow.” 27 |
Slide 28: Thank You
THANK YOU
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