Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Shareholder Meeting (April 2022)
31 slides from Republic Bancorp's shareholder meeting presentation, Apr 21, 2022
Slide 1: Annual Meeting of Shareholders April 21, 2022
Annual Meeting of Shareholders April 21, 2022
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 fo
Slide 3: Steve Trager, Executive Chair
3 STEVE TRAGER Executive Chair, Republic Bancorp, Inc.
Slide 4: 2021 Highlights
$8mm increase in pre - tax income vs 2020 Core deposit* growth of approximately $400mm Expenses flat vs 2020 Record earnings in Warehouse and 2 nd best year in M ortgage Banking Revenue Earned Paycheck Protection Program (PPP) Fee Income of $17mm Reduced Headcount by 48 FTE ’s Increased Spans of Con
Slide 5: Year ended December 31, 2021 Financial Highlights
Year ended December 31, 2021 5 Financial Highlights
Slide 6: 2021 Financial Highlights – Solid Growth in Net Income; Better Growth in EPS
6 2021 Financial Highlights – ➢ Solid Growth in Net Income; Better Growth in EPS Net Income ($000s) 2020 2021 Core Bank $ 54,148 $ 59,056 Republic Processing Group (RPG) 29,098 27,733 Total Company $ 83,246 $ 86,789 +4% over 2020 EPS 2020 2021 Diluted Earnings Per Class A Common Share $ 3.99 $ 4.24
Slide 7: 2021 Financial Highlights Peer Analysis – Total Return Analysis
7 2021 Financial Highlights Peer Analysis – 2021 Total Return Analysis* Regionals Annual Stock Yards Bancorp Inc 61.0% Bank OZK 53.0% First Financial Bancorp 44.6% Republic Bancorp Inc/KY 44.6% NASDAQ Bank Index 42.9% First Bancorp/Southern Pines N 37.7% 1st Source Corp 26.4% Great Southern Bancorp
Slide 8: Financial Highlights - Total Returns
Financial Highlights - Total Returns 8 ➢ 41% annual growth in stock price during 2021 ➢ 3 - Year Compounded Return of 9.5% Market Value per Class A Common Share January 1, 2021 $ 36.07 December 31, 2021 $ 50.84 +41% growth in stock price for 2021
Slide 9: 2021 Financial Highlights – Net Interest Income remained strong
9 2021 Financial Highlights – NM – Not Meaningful ➢ Net Interest Income remained strong despite low - rate environment and excess cash 2020 2021 2020 2021 Core Bank (excluding PPP portfolio) $ 174,522 $ 163,519 3.38% 2.98% PPP portfolio impact 12,178 20,029 0.01% 0.22% Total Core Bank 186,700 183,54
Slide 10: Record Year for Warehouse Lending
Record Year for Warehouse Lending ❑ $ 748 million in average balance in 2021 represents 14% of average earning assets and 4 th largest loan category ❑ 17 associates $0.8 $0.7 2020 2021 Outstanding (Avg.) Commitment (Avg.) $16.3 $16.4 2020 2021 $ in billions Net Income $ in millions $1.4 $1.4 ❑ Room
Slide 11: 2021 Financial Highlights – Provision
$14 $15 $17 $(0) $31 $15 $(5.0) $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2020 2021 RPG Provision Core Bank Provision Total Company 11 2021 Financial Highlights – Millions Provision Due to rounding, parts may not sum to the whole in graph above. ➢ Near zero net charge - offs at Core Bank ➢ RPG los
Slide 12: 2021 Financial Highlights – Total Noninterest Income
Mortgage Banking Income , $20MM Net Refund Transfer Fees , $20MM RPG Program Fees , $15MM Service Charges on Deposits , $13MM Interchange Fees , $13MM Other , $6MM 2021 Noninterest Income Mix 12 2021 Financial Highlights – Total Noninterest Income 2021 - $87 Million 2020 - $87 Million ➢ Mortgage Ban
Slide 13: 2021 Financial Highlights – Total Noninterest Expense
Salaries and Employee Benefits , $110MM Technology, Communication, and Equipment , $29MM Occupancy , $13MM Other , $30MM 2021 Noninterest Expense Mix 13 2021 Financial Highlights – Total Noninterest Expense 2021 - $182 Million, - 2% 2020 - $185 Million ➢ Reduced noninterest expense by 2% from 2020
Slide 14: Balance Sheet
REPUBLIC BANCORP Balance Sheet
Slide 15: Balance Sheet – Loan Portfolio
Balance Sheet – Residential Real Estate 25% Traditional Commercial Portfolios 44% Home Equity 5% Consumer Other 1% Aircraft 3% RPG Loans 3% Warehouse Lines of Credit 19% *Total loans excluding PPP is a non - GAAP measure. See appendix for non - GAAP reconciliation. 15 Loan Portfolio (ex PPP*) Dec. 3
Slide 16: Balance Sheet – Well reserved in the face of economic uncertainty
16 Balance Sheet – ➢ Continued to be well reserved in the face of economic uncertainty Reportable Segment (in $000s) Allowance Allowance to Loans Allowance Allowance to Loans Traditional Bank, Less PPP $ 49,699 1.50% $ 49,407 1.43% Plus: Paycheck Protection Program - 0.00% - 0.00% Traditional Bank 4
Slide 17: Balance Sheet – Core Bank credit quality
17 Balance Sheet – ➢ Continued strong Core Bank credit quality Ratio 12/31/2020 12/31/2021 Nonperforming Loans / Total Loans 0.50% 0.47% Nonperforming Assets / Total Assets 0.45% 0.40% Delinquent Loans / Total Loans 0.21% 0.17% Allowance* / Nonperforming Loans 221% 251% Allowance* / Total Loans 1.11
Slide 18: Balance Sheet – Deposit Portfolio
Balance Sheet – Core Bank - Time and Brokered Deposits 6% RPG Deposits 9% Core Bank - IB Transactional Deposits 33% Core Bank - NIB Transactional Deposits 53% 18 Deposit Portfolio Dec. 31, 2021 Total Deposits Dec. 31, 2021 - $4.8 Billion, + 2% Dec. 31, 2020 - $4.7 Billion IB – Interest Bearing NIB –
Slide 19: Balance Sheet – Capital Ratios
Capital Ratio 12/31/2021 Republic Bancorp 1 Peer 2 Well Capitalized Minimum Requirement 3 Tier 1 Leverage 13.35% 9.55% 5.00% CET 1 Risk Based 16.37% 13.57% 6.50% Tier 1 Risk Based 16.37% 13.58% 8.00% Total Risk Based 17.47% 14.65% 10.00% 19 Balance Sheet – 1. The Company is still in the process of p
Slide 20: Balance Sheet – Long History of Solid 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 $1.23 $1.36 $0.21 $1.10 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 Cash Dividend Paid Regular Dividend Special Dividend 20 ➢ Long History of Solid Dividend I
Slide 21: Cultural Highlights
REPUBLIC BANCORP Cultural Highlights
Slide 22: Cultural Highlights – Associates and Communities
22 Cultural Highlights – ➢ Associates and Communities Logan Pichel named CEO of Republic Bank and director of Republic Bancorp, Inc. and Republic Bank Concluded National Search with Hiring of Jeff Starke as Chief Information Officer Board members Ernest W. Marshall, Jr. and George Nichols, III, incl
Slide 23: Cultural Highlights – Associates and Communities
23 Cultural Highlights – ➢ Associates and Communities Originated $210 million in additional PPP loans during 2021 ($528 million of PPP originations in 2020) Contributed over $2.1 million to various philanthropic organizations Enhanced focus on Inclusion & Diversity Surpassed $1 million in total Comm
Slide 24: Logan Pichel, President and CEO, Republic Bank & Trust Company
24 LOGAN PICHEL President and Chief Executive Officer, Republic Bank & Trust Company
Slide 25: First Quarter Results and Strategic Initiatives
First Quarter Results and Strategic Initiatives Quarter ended March 31, 2022 25
Slide 26: 1Q22 Results
26 1Q22 Results - ➢ Total Company net income growth of 7% ➢ Strong growth in RPG net income ➢ Reduction in PPP revenue at Core Bank ➢ Reduction in Mortgage Banking and Warehouse Lending income at Core Bank due to rising interest rates Net Income by Segment ($000s) 1Q2021 1Q2022 Traditional Bank excl
Slide 27: 1Q 2022 Results – Segment highlights
27 1Q 2022 Results – Non - PPP Traditional Bank Loan Portfolio growth of almost $110 million Non - PPP Traditional Bank Net Interest Income increased 2% TRS Segment Net Income increased $10.3 million, or 212% Republic Credit Solutions Segment Net Income increased 20% Elite net - promoter score when
Slide 28: Strategic Initiatives
28 Strategic Initiatives – Increase Revenue Generating Opportunities Strengthen Operational Efficiency Improve Customer Satisfaction Enhance Talent Development and Associate Satisfaction Strengthen Inclusion and Diversity (Environmental, Social, and Governance) Build on and Improve Digital Strategy
Slide 29: Republic Bancorp
REPUBLIC BANCORP 29
Slide 30: Thank You
Thank You 30
Slide 31: Appendix – Non-GAAP Disclosure
31 Appendix – Non - GAAP Disclosure ➢ Due to the short - term nature of the PPP, management believes total loans excluding its PPP portfolio is a more appropriate measure to analyze the Bank’s loan portfolio. 2020 2021 Total Loans - Total Company - GAAP $4,813,103 $4,496,562 Less: PPP portfolio 392,