Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Shareholder Meeting (April 2012)
36 slides from Republic Bancorp's shareholder meeting presentation, Apr 19, 2012
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Annual Meeting of Shareholders Thursday, April 19, 2012 Thursday, April 19, 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 3
Slide 4: Highlights Year ended December 31, 2011
Highlights Year ended December 31, 2011 4
Slide 5: 2011 Highlights
2011 Highlights Increased Net Income 45% over 2010 to $94.1M Return On Average Assets (“ROA”) of 2.76% Return On Average Equity (“ROE”) of 21.42% Improved credit quality Grew core deposit balances over $100M Capital ratios continued to exceed “well capitalized” with a total risk based capital ratio
Slide 6: 2011 Highlights
2011 Highlights Increased cash dividends 8% during 2nd Qtr 2011 ‐ 12th consecutive year of increased dividends Launched Mortgage Warehouse Lending Supported the Republic Bank Foundation with another $5.0 million contribution Completed another record year at Tax Refund Solutions (“TRS”) 6
Slide 7: Total Returns 12/31/01 - 12/31/11
Total Returns* 12/31/01 ‐12/31/11 NASDAQ Bank Index S&P 500 DOW JONES Industrial Average Russell 2000 Index Republic Bancorp, Inc. ‐3.0% 33.3% 56.2% 73.1% 156.9% 7 * ‐ gross dividends assumed reinvested 7
Slide 8: Outstanding Compounded Annual Growth Rates
Outstanding Compounded Annual Growth Rates As of December 31, 2011 5‐Year Compound Annual Growth Rate 3‐Year Compound Annual Growth Rate YTD Diluted EPS 27.2% 40.5% YTD Cash Dividends (Class A) 10.8% 8.6% Book Value Per Share 13.4% 17.3% 8
Slide 9: Net Income
Net Income 2009 2010 2011 $42.1 $64.8 $94.1 (in millions) 9
Slide 10: Diluted Earnings Per Class A Common Stock
Diluted Earnings Per Class A Common Stock 2009 2010 2011 $2.02 $3.10 $4.49 40.5% three year EPS annual compounded growth rate 10
Slide 11: Balance Sheet
REPUBLIC | Balance Sheet
Slide 12: Strong Capital Foundation
Strong Capital Foundation Republic Well Bancorp, Inc. Capitalized 12/31/11 12/31/10 Requirement Tier 1 Leverage 14.77% 12.05% 5.00% Tier 1 Risk Based 23.59% 20.89% 6.00% Total Risk Based 24.74% 22.04% 10.00% 12
Slide 13: Loan Portfolio Highlights and Lending Strategy
13 Residential Real Estate 48% Commercial Real Estate 29% Real Estate Construction 3% Home Equity 12% Commercial 5% Warehouse Lines of Credit 2% Consumer 1% Highlights Loan Portfolio Total Loans: $2.3 Billion Industry leading credit quality 97% of loans in Kentucky, southern Indiana, and Florida mar
Slide 14: 2011 Core Deposits - Quarterly Averages
Quarter Ended Quarter Ended (in thousands) Dec 31, 2011 Dec 31, 2010 Change Non Interest Bearing $ 430,702 $ 330,341 $ 1 00,361 Now & Passbook Sav ings 600,167 308,781 291,386 Money Market & Super Now 355,715 581,396 (225,681) Liquid CDs 26,367 19,816 6,551 Money Market CDs 21,217 2 4,577 (3,360) Mo
Slide 15: Deposit Mix - December 31, 2011
4th Qtr 2011 Traditional Bank Cost of Deposits: 0.36% Deposit Mix – December 31, 2011 Excluding Deposits Associated with TRS Total Deposits: $1.7 Billion Demand (NOW and SuperNOW) 30% Money Market 25% Savings 3% IRA 2% Time Deposits $100,000+ 5% Other Certificates of Deposit 6% All Other Brokered 2%
Slide 16: Deposit Market Share - Jefferson County, Kentucky
16 Deposit Market Share – Jefferson County, Kentucky Source: FDIC Summary of Deposits (Data as of 6/30/11) 25 FDIC Insured Institutions ‐ $15.7 Billion Total Deposits PNC/National City 25.0% JP Morgan Chase 17.6% Fifth Third 12.7% BB&T 7.3% Republic 8.4% Stock Yards 8.0% US Bank 4.5% All Other 16.5%
Slide 17: Industry Strong Credit Quality
Industry Strong Credit Quality 17
Slide 18: Credit Quality Trends - Traditional Banking
Credit Quality Trends – Traditional Banking As of and for the Year Ended December 31, Ratio 2011 2010 2009 Non Performing Loans / Total Loans 1.02% 1.30% 1.90% Non Performing Assets / Total Assets 1.10% 1.32% 1.60% Delinquent Loans / Total Loans 1.07% 1.24% 1.98% Allowance / Non Performing Loans 103
Slide 19: Net Loan Charge Offs To Average Loans
Net Loan Charge Offs To Average Loans (Traditional Banking Segment) 2007 2008 2009 2010 2011 0.29% 0.97% 1.86% 1.64% 0.92% 0.10% 0.26% 0.34% 0.51% 0.24% Peer(1) Republic (1) Peer Data obtained from December 31, 2011 Uniform Bank Performance Report (“UBPR”) 19 12/31/2007 12/31/2008 12/31/2009 12/31/2
Slide 20: Non Performing Loans To Total Loans
0.96% 2.36% 4.33% 3.87% 3.15% 0.40% 0.58% 1.90% 1.30% 1.02% Peer(1) Republic Non Performing Loans To Total Loans (1) Peer Data obtained from December 31, 2011 Uniform Bank Performance Report (“UBPR”) 20
Slide 21: Delinquent Loans To Total Loans
Delinquent Loans To Total Loans 2007 2008 2009 2010 2011 0.69% 1.07% 1.98% 1.24% 1.07% 21
Slide 22: Results of Operations
Results of Operations |
Slide 23: Net Interest Income - Traditional Banking Segment
Net Interest Income – Traditional Banking Segment 2009 2010 2011 $110 $106 $105 In Millions 23
Slide 24: Non Interest Income as a % of Total Revenue
Non Interest Income as a % of Total Revenue 2009 2010 2011 21.32% 31.18% 38.01% Strong service charges on deposit Significant TRS and mortgage banking contribution 24
Slide 25: Highlights First Quarter 2012
Highlights First Quarter 2012 25
Slide 26: 1Q 2012 Highlights
1Q 2012 Highlights Record net income of $82.5 million, a 15% increase over prior year Purchase of Tennessee Commerce Bank (“TCB”), resulting in Bargain Purchase Gain of $27.9 million Return On Average Assets (“ROA”) of 7.94% Return On Average Equity (“ROE”) of 64.47% Capital ratios continued to exce
Slide 27: 1Q 2012 Highlights - TRS
1Q 2012 Highlights ‐ TRS 3.2 million customers $12.8 billion of state and federal electronic tax refunds processed RALs outstanding past their expected funding date from the IRS at March 31, 2012 = 1.59% of total RALs originated compared to 1.75% at March 31, 2011 13% / 87% ‐ RAL / Electronic Refund
Slide 28: TCB Purchase Summary
TCB Purchase Summary Originally Actual Pro Forma Projected Day 1 Loans Settlement After Settlement Settlement Sold Back FDIC Repuchase (in thousands) as of 11/8/11 as of 1/27/12 to FDIC of Loans Loans and REO (contractual amount) $ 121,652 $ 113,281 $ (19,800) $ 93,481 All Other Assets (contractual
Slide 29: TCB Balance Sheet - 3/31/12
TCB Balance Sheet ‐ 3/31/12 3/31/12 (in thousands) Amount ASSETS Cash and cash equivalents $ 93,990 Securities available for sale 4,357 Loans to be repurchased by the FDIC, net of discount 17,028 Loans 49,933 Federal Home Loan Bank stock, at cost 2,459 Other assets and accrued interest receivable 1,
Slide 30: Net Income
Net Income 1Q 2010 1Q 2011 1Q 2012 $44.6 $71.4 $82.5 In Millions 30
Slide 31: Gross Loans - Core Bank
Gross Loans – Core Bank Dec 10 Dec 11 Mar 12 $2,175 $2,285 $2,392 In Millions 31
Slide 32: Asset Quality - 3/31/12 Traditional Banking Segment
Asset Quality – 3/31/12 Traditional Banking Segment (1) Peer Data obtained from December 31, 2011 Uniform Bank Performance Report (“UBPR”) Republic Excluding Impact of Total TCB TCB Republic Peer (1) Non-performing loans to total loans 0.99% 0.04% 1.03% 3.15% Delinquent loans (30-89 days) to total l
Slide 33: 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 initiatives Con
Slide 34: 2012 Challenges & Opportunities
2012 Challenges & Opportunities Successfully convert TCB to Republic’s core system 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 deliver
Slide 35: 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. 35
Slide 36: Thank You
od ; THANK YOU 36 |