Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Shareholder Meeting (April 2021)
30 slides from Republic Bancorp's shareholder meeting presentation, Apr 22, 2021
Slide 1: Annual Meeting of Shareholders April 22, 2021
Annual Meeting of Shareholders April 22, 2021
Slide 2: 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 these forwar
Slide 3: Steve Trager, Chair and Chief Executive Officer
STEVE TRAGER Chair and Chief Executive Officer 3
Slide 4: Financial Highlights Year ended December 31, 2020
Financial Highlights Year ended December 31, 2020 4
Slide 5: 2020 Financial Highlights
2020 Financial Highlights – 5 (1) Pre-Tax, Pre-Provision Adjusted Income is a non-GAAP measure that management believes better reflects the operating performance of the Company (See Non-GAAP reconciliation within the Appendix of this Presentation) +7% over 2019 Net Income ($000s) 2018 2019 2020 Core
Slide 6: 2020 Financial Highlights: Net Interest Income and Margin
6 2020 Financial Highlights – NM – Not Meaningful 2018 2019 2020 2018 2019 2020 Core Bank $ 176,526 $ 184,574 $ 186,700 3.70% 3.61% 3.39% Republic Processing Group (RPG) 49,532 51,552 45,615 NM NM NM Total Company $ 226,058 $ 236,126 $ 232,315 4.62% 4.46% 4.10% Net Interest Income ($000s) Net Intere
Slide 7: 2020 Financial Highlights: Provision and Net Charge-offs
2020 Financial Highlights – 7 $28 $23 $14 $4 $3 $17 $31 $26 $31 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2018 2019 2020 RPG Provision Core Bank Provision Total Company $15.2 COVID net impact - Core Bank and Total Company Millions Year Core Bank Total Company 2018 0.06% 0.72% 2019 0.11% 0.61% 2020
Slide 8: 2020 Financial Highlights: Noninterest Income Mix
2020 Financial Highlights – 8 Mortgage Banking Income, $32MM Net Refund Transfer Fees, $20MM Program Fees, $7MM Service Charges on Deposits, $12MM Interchange Fees, $11MM Other, $5MM 2020 Noninterest Income Mix Total Noninterest Income 2020 - $87 Million, +16% 2019 - $75 Million 2018 - $63 Million ➢
Slide 9: 2020 Financial Highlights: Noninterest Expense Mix
2020 Financial Highlights – 9 Salaries and Employee Benefits, $106MM Technology, Communication, and Equipment, $29MM Occupancy, $13MM Other, $37MM 2020 Noninterest Expense Mix Total Noninterest Expense 2020 - $185 Million 2019 - $172 Million 2018 - $164 Million ➢ Investments in Talent and Technology
Slide 10: Balance Sheet
REPUBLIC BANK Balance Sheet
Slide 11: Balance Sheet: Loan Portfolio
Balance Sheet – Residential Real Estate 24% Traditional Commercial Portfolios 37% Home Equity 5% Consumer Other 1% Aircraft 2% RPG Loans 3% PPP Loans 8% Warehouse Lines of Credit 20% 11 Loan Portfolio Dec. 31, 2020 Total Loans Dec. 31, 2020 - $4.8 Billion, +9% Dec. 31, 2019 - $4.4 Billion Dec. 31, 2
Slide 12: Balance Sheet: Allowance by Reportable Segment
12 Balance Sheet – Reportable Segment (in $000s) Allowance Allowance to Loans Allowance Allowance to Loans Traditional Bank, Less PPP $ 49,699 1.50% $ 28,205 0.78% Plus: Paycheck Protection Program - 0.00% NA NA Traditional Bank 49,699 1.34% 28,205 0.78% Warehouse Lending 2,407 0.25% 1,794 0.25% Tot
Slide 13: Balance Sheet: Credit Quality Ratios
13 Balance Sheet – Ratio 12/31/2019 12/31/2020 Nonperforming Loans / Total Loans 0.54% 0.50% Nonperforming Assets / Total Assets 0.43% 0.45% Delinquent Loans / Total Loans 0.30% 0.21% Allowance* / Nonperforming Loans 129% 221% Allowance* / Total Loans 0.70% 1.11% Net Charge-offs / Average Loans 0.11
Slide 14: Balance Sheet: Deposit Portfolio
Balance Sheet – Core Bank - Time and Brokered Deposits 9% RPG Deposits 8% Core Bank - IB Transactional Deposits 32% Core Bank - NIB Transactional Deposits 51% 14 Deposit Portfolio Dec. 31, 2020 Total Deposits Dec. 31, 2020 - $4.7 Billion, +25% Dec. 31, 2019 - $3.8 Billion Dec. 31, 2018 - $3.5 Billio
Slide 15: Balance Sheet: Loan to Deposit Ratio
15 Balance Sheet – (1) The loan to deposit ratio excludes brokered deposits For the Quarter Ended Loan to Deposits(1) 12/31/2018 12/31/2019 12/31/2020 3/31/2021 Traditional Bank 106% 105% 87% 78% Core Bank 119% 124% 108% 100% RPG 305% 271% 99% 78% Total Company 121% 126% 108% 99% For the Years Ended
Slide 16: Balance Sheet: Capital Ratios
Capital Ratio 12/31/2020 Republic Bancorp1 Peer2 Well Capitalized Minimum Requirement3 Tier 1 Leverage 13.70% 9.58% 5.00% CET 1 Risk Based 16.61% 13.37% 6.50% Tier 1 Risk Based 17.43% 13.39% 8.00% Total Risk Based 18.52% 14.55% 10.00% 16 Balance Sheet – 1. The Company is still in the process of prep
Slide 17: Balance Sheet: Long History of Dividend Increases
$0.09 $0.12 $0.14 $0.16 $0.20 $0.24 $0.29 $0.35 $0.41 $0.46 $0.51 $0.55 $0.59 $0.64 $0.68 $0.73 $0.77 $0.81 $0.86 $0.95 $1.03 $1.12 $1.21 $0.21 $1.10 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Cash Dividend Paid Regular Dividend Special Dividend 17 ➢ Long History of Solid Dividend Increases *CA
Slide 18: Cultural Highlights
Cultural Highlights 18
Slide 19: Cultural Highlights: Thoughtful Pandemic Response
• Transformed almost 100% of our back-office to a work-from-home environment • Provided remote service through our fleet of Interactive Teller Machines • Originated over 4,700 PPP Loans totaling over $700 million during 2020 and 2021 • During 2020, provided loan deferrals and forbearances on just ov
Slide 20: Cultural Highlights: Associates and Communities
• In June 2020, Logan Pichel was selected as the new President for Republic Bank • In July 2020, Pedro Bryant appointed Republic Bank’s Managing Director for Community Lending and began managing Republic Bank’s newly formed Community Loan Fund • In September 2020, Ashley Duncan appointed Republic Ba
Slide 21: Cultural Highlights: 2020 Honors
Cultural Highlights - 21 • Recognized as a “Best Place to Work” for 5th consecutive year • Selected as a Business Impact Award winner by Louisville Business First • Chosen for the 14th consecutive year as the Best Local Bank by LEO Readers’ Choice Awards • Won the Innovation Award in Mastercard's an
Slide 22: First Quarter Results and Long-Term Initiatives
First Quarter Results and Long-Term Initiatives Quarter ended March 31, 2021 22
Slide 23: 1Q21 Results
1Q21 Results - 23 ➢ Strong Growth in Core Bank Earnings ➢ Impact of Delayed Tax Season Net Income by Segment ($000s) 1Q2020 1Q2021 $ Change % Change Core Bank 10,025 16,407 6,382 64% Republic Processing Group (RPG) 16,672 4,026 (12,646) -76% Total Company $ 26,697 $ 20,433 $ (6,264) -23%
Slide 24: 1Q21 Results: Key Drivers
• Mortgage Banking income increased $2.4 million, or 50%, from 1Q20 • Warehouse Lending net income increased $2.1 million, or 85%, from 1Q20 • Originated over $175 million in PPP loans to over 1,000 businesses • Grew core deposits(1) $232 million, or 5% during 1Q21 • Net charge-offs to average loans
Slide 25: Long-Term Initiatives
• Increase market share within footprint • Enhance capital deployment in technology, digital, and fintech • Enhance customer service and improve efficiency • Continue support for diversity and inclusion for community and associates Long-Term Initiatives - 25
Slide 26: Republic Bank
REPUBLIC BANK
Slide 27: Thank You
REPUBLIC BANK Thank You
Slide 28: Appendix – Non-GAAP Reconciliations
Appendix – Non-GAAP Reconciliations Management uses non-GAAP measures to evaluate the on-going performance of the Company. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by
Slide 29: Pre-Tax, Pre-Provision Adjusted Income (PTPPAI)
Pre-Tax, Pre-Provision Adjusted Income (PTPPAI) Pre-Tax, Pre-Provision Adjusted Income is a non-GAAP measure that management believes better reflects the operating performance of the Company. PTPPAI excludes significant, generally non- recurring items that may reduce comparability between periods. 2
Slide 30: Core Deposits
Core Deposits Core deposits, a non-GAAP measure, are total deposits excluding time deposits greater than or equal to $250,000, all brokered deposits, and all deposits attributable to the Company’s RPG operations. Core deposits are intended to include those deposits that are more stable and lower cos