Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Investor Presentation (June 2015)
36 slides from Republic Bancorp's investor presentation, Jun 5, 2015
Slide 1: Friday, June 5, 2015
FRIDAY, JUNE 5, 2015
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 Largest Kentucky based bank holding company with total assets of $4.0 billion at 3/31/15 Holding Company for Republic Bank & Trust Company (Kentucky) 40 full service banking centers in KY, IN, TN, OH and FLDiverse Business Operating SegmentsTraditional BankingWarehouse LendingMortgag
Slide 5: Stock and Share Information
1998 – IPO completed NASDAQ Symbol Shares Outstanding – 3/31/15 Market Capitalization – 3/31/15 Average Daily Volume 2.6 million shares issued (adjusted) RBCAA 20.9 million 516 million 20,689 shares (trailing 12 months at 3/31/15 Stock Price – 3/31/15 Stock Price – 12/31/14 Book Value Per Share – 3/
Slide 6: Republic Bank Banking Centers
Republic Bank Banking Centers Louisville, KY 17 Lexington, KY 4 Owensboro, KY 2 Covington, KY 1 Elizabethtown, KY 1 Florence, KY 1 Frankfort, KY 1 Georgetown, KY 1 Independence, KY 1 Shelbyville, KY 1 Floyds Knobs, IN 1 Jeffersonville, IN 1 New Albany, IN 1 Franklin, TN 1 Nashville, TN Temple Terrac
Slide 7: Highlights Year ended December 31, 2014
Highlights Year ended December 31, 2014
Slide 8: 2014 Highlights
2014 Highlights Net income of $28.8 million, an increase of 13% over 2013, resulting in Diluted Earnings per Class A Common share of $1.38 Return On Average Assets (“ROA”) of 0.81% Return On Average Equity (“ROE”) of 5.16% Total gross loans grew by $451 million, or 17%, during 2014 Mortgage Warehous
Slide 9: 2014 Highlights (continued)
2014 Highlights (continued) Capital ratios continued to exceed “well capitalized” with a total risk based capital ratio of 22.17% at year end Traditional Banking credit metrics continued to outperform peers Grew core deposit balances $60M, or 4% Increased quarterly cash dividend by 6%
Slide 10: Net Income and Earnings Per Share
Net Income and Earnings Per Share In Millions Net Income Republic Processing Group Core Banking EPS $30 $25 $20 $15 $10 $5 $- $(5) $25.4 $28.8 $26.8 $24.3 $(1.4) $4.5 2013 2014 $1.40 $1.35 $1.30 $1.25 $1.20 $1.15 $1.10 $1.22 $1.38 2013 2014
Slide 11: Net Interest Income – Core Banking
Net Interest Income – Core Banking In Millions $26.7 $27.2 $27.5 $28.4 $29.4 4Q13 1Q14 2Q14 3Q14 4Q14
Slide 12: Non Interest Expense – Core Banking
Non Interest Expense – Core Banking In Millions Salaries and Benefits Occupancy Other $99.7 $96.5 $29.6 $19.4 $50.7 $28.0 $20.3 $48.2 2013 2014
Slide 13: 2015 Highlights
2015 Highlights
Slide 14: 1Q 2015 Highlights
1Q 2015 Highlights Net income of $13.8 million, an increase of 15% over the first quarter of 2014 Return On Average Assets (“ROA”) of 1.40% Return On Average Equity (“ROE”) of 9.72% Capital ratios under new Basel III standard continued to exceed “well capitalized” with a total risk based capital rat
Slide 15: 1Q 2015 Highlights - RPG
1Q 2015 Highlights - RPG A 39% increase in refund transfers processed from 2014 Over $75 million loaded onto prepaid cards, up $9 million, or 14% from 2014 $4 million in gross loans outstanding for pilot RCS programs Signed agreement with Fenway Summer to pilot FS Card unsecured credit card program
Slide 16: Net Income and Earnings Per Share
Net Income and Earnings Per Share Net Income Republic Processing Group Core Banking EPS In Millions $14 $12 $10 $8 $6 $4 $2 $- $12.0 $13.8 $5.4 $6.6 $6.6 $7.2 1Q 2014 1Q 2015 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- $0.58 $0.66 1Q2014 1Q2015
Slide 17: Balance Sheet
Balance Sheet
Slide 18: Strong Capital Foundation
Strong Capital Foundation 3/31/2015 Capital Ratio Tier 1 Leverage Common Equity Tier 1 Tier 1 Risk Based Total Risk Based Republic Bancorp 15.11% 19.37% 20.76% 21.62% Peer (1) 9.90% 12.79% 12.91% 14.05% Well Capitalized Minimum Requirement 5.00% 6.50% 8.00% 10.00% (1) Peer Data obtained from the Rep
Slide 19: Loan Portfolio (Excluding Acquired Banks)
Loan Portfolio (Excluding Acquired Banks) (2011- 1Q2015) Residential Real Estate Commercial & Industrial Other Commercial & Construction Real Estate Outstanding Warehouse Balances $ In Millions $2,285 $2,511 $2,494 $2,984 $3,119 32% 60% 9% 29% 56% 6% 32% 56% 11% 27% 56% 14% 27% 53% Dec 11 Dec 12 Dec
Slide 20: Warehouse Lending
Warehouse Lending (2011 - 1Q2015) Outstanding Balance Commitments In Millions $41 $80 $217 $331 $150 $358 $319 $528 $423 $563 Dec 11 Dec 12 Dec 13 Dec 14 Mar 15
Slide 21: Core Bank Loan Growth
Core Bank Loan Growth (dollars in thousands) Origination Channel Ending Balance 3/31/2015 Ending Balance 12/31/14 $ Change Average Quarterly Balance 3/31/2015 Average Quarterly Balance 3/31/2014 $ Change Warehouse Lending Correspondent Lending 2012-FDIC Acquired Loans Traditional Branch Network Tota
Slide 22: Industry Strong Credit Quality
Industry Strong Credit Quality
Slide 23: Credit Quality Trends – Core Banking
Credit Quality Trends – Core Banking (includes acquisitions) Ratio Qtr Ended 3/31/2015 As of and for Year Ended 12/31/2014 12/31/2013 12/31/2012 12/31/2011 Non Performing Loans / Total Loans 0.79% 0.78% 0.81% 0.82% 1.02% Non Performing Assets / Total Assets 0.83% 0.93% 1.13% 1.41% 1.10% Delinquent L
Slide 24: Non Performing Loans To Total Loans
Non Performing Loans To Total Loans Peer(1) Republic 3.16% 1.02% 2.27% 0.82% 1.49% 0.81% 1.05% 0.78% 1.00% 0.79% 12/31/11 12/31/12 12/31/13 12/31/14 3/31/15 (1) Peer Data obtained from RB&T March 31, 2015 Uniform Bank Performance Report (“UBPR”) Peer Group #1
Slide 25: Delinquent Loans To Total Loans
Delinquent Loans To Total Loans 1.07% 0.79% 0.63% 0.52% 0.49% Dec 2011 Dec 2012 Dec 2013 Dec 2014 Mar 2015
Slide 26: Net Loan Charge Offs To Average Loans
Net Loan Charge Offs To Average Loans (Core Banking ) Peer(1)(2) Republic(2) 0.93% 0.24% 0.61% 0.34% 0.30% 0.18% 0.18% 0.08% 0.12% 0.02% 2011 2012 2013 2014 1Q2015 (1) Peer Data obtained from RB&T March 31, 2015 Uniform Bank Performance Report (“UBPR”) (2) March 31, 2015 data annualized
Slide 27: Asset Quality – 3/31/15 Core Banking
Asset Quality – 3/31/15 Core Banking Non-performing loans to total loans Delinquent loans (30-89 days and accruing) to total loans Republic 0.79% 0.10% Peer (1) 1.00% 0.45% (1) Peer Data obtained from RB&T March 31, 2015 Uniform Bank Performance Report (“UBPR”) Peer Group #1
Slide 28: Core Banking Deposits
Core Banking Deposits (2011-1Q2015) Non-Interest Bearing Interest-Bearing DDA MMDA/SAV Time Deposits Brokered Deposits In Millions 6% 13% 28% 30% 23% $1,727 $1,977 $1,985 $2,050 $2,254 7% 11% 29% 29% 24% 6% 9% 28% 33% 24% 5% 9% 28% 34% 24% 8% 9% 26% 33% 24% Dec 11 Dec 12 Dec 13 Dec 14 Mar 15 Percent
Slide 29: Core Deposits-Quarterly Averages
Core Deposits-Quarterly Averages (excludes Institutional Brokered Deposits & CDs) (in thousands) Quarter Ended Mar 31, 2015 Quarter Ended Dec 31, 2014 Change Non Interest Bearing $ 639,023 $ 529,091 $ 109,932 Now & Passbook Savings 791,336 779,239 12,097 Money Market Accounts 386,182 379,635 6,547 L
Slide 30: Prepaid Cards
Prepaid Cards In Millions Fundings In Millions Deposits $80 $70 $60 $50 $40 $30 $20 $10 $- $66 $75 1Q2014 1Q2015 $8 $7 $6 $5 $4 $3 $2 $1 $- $6 $7 Mar 2014 Mar 2015
Slide 31: Interest Rate Management Strategy
Interest Rate Management Strategy
Slide 32: Interest Rate Sensitivity
Interest Rate Sensitivity Asset Repricing: 84% of our total loan portfolio reprices within 5yrs as of March 31, 2015 Commercial Real Estate portfolio repricing within 5yrs increased from 69% in 2013 to 81% in 2014 and to 83% as of March 31, 2015 Commercial & Industrial portfolio repricing within 5yr
Slide 33: Historical Net Interest Income
Historical Net Interest Income % Change from Base* Up 100 bp Up 200 bp Up 300 bp Up 400 bp 5% 0% -5% -10% -15% -20% -25% Policy Limit 12/31/2013 12/31/2014 3/31/2015 *Result of instantaneous interest rate shock in terms of basis points (“bp”). i.e. 100bp = 1%
Slide 34: Initiatives
Initiatives Bank acquisitions; either purchase or FDIC-assisted Grow traditional loan portfolios – commercial and retail loans Grow product lines – Warehouse Lending, Dealer Services, Equipment Lease Financing Expand new lines of business – Prepaid Cards, Short-term credit products Focus on core dep
Slide 35: It's just easier here.
It’s just easier here. (SM)
Slide 36: Thank You
THANK YOU