Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Shareholder Meeting (April 2013)
37 slides from Republic Bancorp's shareholder meeting presentation, Apr 25, 2013
Slide 1: Annual Meeting of Shareholders
Slide: 1 Annual Meeting of ShareholdersThursday, April 25, 2013 REPUBLIC BANCORP TM
Slide 2: Safe Harbor
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 emphas
Slide 3: Steve Trager, Chairman and Chief Executive Officer
Slide: 3 Steve TragerChairman and Chief Executive Officer
Slide 4: Highlights Year ended December 31, 2012
Slide: 4 Highlights Year ended December 31, 2012
Slide 5: Banking Center Locations
Slide: 5 Republic Bank & Trust Company Louisville, KY 18 Lexington, KY 5 Owensboro, KY 2 Covington, KY 1 Crestwood, KY 1 Elizabethtown, KY 1 Florence, KY 1 Frankfort, KY 1 Georgetown, KY 1 Independence, KY 1 Shelbyville, KY 1 Shepherdsville, KY 1 Floyds, Knobs, IN 1 Jeffersonville, IN 1 New Albany,
Slide 6: 2012 Highlights
Slide: 6 2012 Highlights Increased Net Income 27% over 2011 to $119.3M.Return On Average Assets (“ROA”) of 3.35%.Return On Average Equity (“ROE”) of 22.51%.Acquired Tennessee Commerce Bank (“TCB”) in Franklin, TN, 1/27/12. Acquired First Commercial Bank (“FCB”) in Bloomington, MN, 9/7/12.Bank acquis
Slide 7: 2012 Highlights
Slide: 7 2012 Highlights “Total risk based capital” ratio of 25.28%; more than 2.5X the amount necessary to be considered “well capitalized”Notable improvement in Industry-strong credit quality.Nine (9) basis point increase in Traditional Bank net interest margin.Grew Mortgage Warehouse loan portfol
Slide 8: 2012 Highlights
Slide: 8 2012 Highlights Supported the Republic Bank Foundation with a $2.5 million contribution (what we make here, stays here!).Completed another solid year at Tax Refund Solutions (“TRS”). Realigned TRS into our newly established Republic Processing Group (“RPG”) segment.Formed Republic Payment S
Slide 9: Ten Year Total Returns
Slide: 9 Ten Year Total Returns 12/31/02 -12/31/12 - gross dividends assumed to be reinvested into Company stock or the applicable index
Slide 10: Outstanding Compounded Annual Growth Rates
Slide 10: Outstanding Compounded Annual Growth Rates As of December 31, 2012 5‐Year Compound Annual Growth Rate 3‐Year Compound Annual Growth Rate YTD Diluted EPS 36.5% 41.2% YTD Cash Dividends (Class A) 32.8% 50.1% Book Value Per Share 15.9% 19.0%
Slide 11: Net Income
Net Income Inmillions
Slide 12: Diluted Earnings Per Class A Common Stock
Slide: 12 Diluted Earnings Per Class A Common Stock 40.5% three year EPS annual compounded growth rate
Slide 13: Balance Sheet
Slide: 13 Balance Sheet
Slide 14: Strong Capital Foundation
Slide 14: Strong Capital Foundation Republic Well Bancorp, Inc. Capitalized 12/31/12 12/31/11 12/31/10 Requirement Tier 1 Leverage 16.36% 14.77% 12.05% 5.00% Tier 1 Risk Based 24.31% 23.59% 20.89% 6.00% Total Risk Based 25.28% 24.74% 22.04% 10.00%
Slide 15: Highlights Loan Portfolio
Slide 15: Highlights Loan Portfolio Total Loans: $2.7 Billion Industry leading credit quality 92% of loans in Kentucky, southern Indiana, and Florida market footprint Diversification between retail and commercial lending Warehouse lines of credit percentage of the portfolio increased substantially f
Slide 16: 2012 Core Deposits - Quarterly Averages
Slide 16: Quarter Ended Quarter Ended (in thousands) Dec 31, 2012 Dec 31, 2011 Change Non Interest Bearing 521,188 $ 430,702 $ 90,486 $ Now & Passbook Sav ings 619,107 600,167 18,940 Money Market & Super Now 376,639 355,715 20,924 Liquid CDs 34,402 26,367 8,035 Money Market CDs 21,376 21,217 159 Mon
Slide 17: Deposit Mix - December 31, 2012
Slide 17: 4th Qtr 2012 Traditional Bank Cost of Deposits: 0.22% Deposit Mix – December 31, 2012 Excluding Deposits Associated with RPG Total Deposits: $2.0 Billion Demand (NOW and SuperNOW) 29% Money Market 26% Savings 3% IRA 2% Time Deposits 100,000+ 4% Other Certificates of Deposit 5% All Other Br
Slide 18: Deposit Market Share - Jefferson County, Kentucky
Slide 18: Deposit Market Share – Jefferson County, Kentucky Source: FDIC Summary of Deposits (Data as of 6/30/12) 26 FDIC Insured Institutions ‐ $16.7 Billion Total Deposits PNC 24.4% JP Morgan Chase 19.4% Fifth Third 12.6% BB&T 7.6% Republic 8.1% Stock Yards 8.2% US Bank 4.9% All Other 14.8%
Slide 19: Industry Strong Credit Quality
Slide: 19 Industry Strong Credit Quality
Slide 20: Credit Quality Trends - Traditional Banking
Slide 20: Credit Quality Trends – Traditional Banking Excluding Acquisitions Ratio 2012 2012 2011 2010 Non Performing Loans / Total Loans 0.74% 0.82% 1.02% 1.30% Non Performing Assets / Total Assets 0.95% 1.41% 1.10% 1.32% Delinquent Loans / Total Loans 0.59% 0.79% 1.07% 1.24% Allowance / Non Perfor
Slide 21: Net Loan Charge Offs To Average Loans
Slide: 21 Net Loan Charge Offs To Average Loans (Traditional Banking Segment) (1) Peer Data obtained from December 31, 2012 Uniform Bank Performance Report (“UBPR”)
Slide 22: Non Performing Loans To Total Loans
Slide: 22 Non Performing Loans To Total Loans (1) Peer Data obtained from December 31, 2012 Uniform Bank Performance Report (“UBPR”)
Slide 23: Delinquent Loans To Total Loans
Slide: 23 Delinquent Loans To Total Loans
Slide 24: Results of Operations
Slide: 24 Results of Operations
Slide 25: Net Interest Income - Traditional Banking Segment
Slide: 25 Net Interest Income – T raditional Banking Segment
Slide 26: Non Interest Income as a % of Total Revenue
Slide: 26 Non Interest Income as a % of Total Revenue Bargain purchase gains from two bank acquisitions Significant RPG and mortgage banking contribution
Slide 27: Highlights First Quarter 2013
Slide: 27 Highlights First Quarter 2013
Slide 28: 1Q 2013 Highlights
Slide: 28 1Q 2013 Highlights Strong net income of $13.3 million. Return On Average Assets (“ROA”) of 1.55%. Return On Average Equity (“ROE”) of 9.83%. Capital ratios continued to exceed “well capitalized” with a total risk based capital ratio exceeding 25% at RB&T. Net interest income for Core Bank
Slide 29: The Bank Director: Republic Bancorp Ranked #1
THE BANK DIRECTOR THE 50 BEST USERS OF CAPITAL REPUBLIC BANCORP RANKED #1 FOR THE SECOND YEAR IN A ROW! Ticker State Total Industry Core. «==« ROE Average CEMA Final Assets ($000) Type ROTCE(‘%) Rank TCE/TA(%) Rank Score. | Republic Bancorp, Inc. RBCAA KY 3,278,800 Bank 2049 9 1349 53 62
Slide 30: Net Income
Net Income In Millions $90.0 5 $80.0 ~ $71.4 $70.0 $60.0 - $50.0 - $40.0 - $30.0 $20.0 - $10.0 - $0.0 + 1Q 2011 1Q 2012 1Q 2013
Slide 31: Net Income - Core Bank
Slide: 31 Net Income – Core Bank (excluding Bargain Purchase Gains, net of tax) Excludes Bargain Purchase Gains of $845,000 and $18.1 million in 2013 and 2012, net of income taxes.
Slide 32: Gross Loans - Traditional Bank
Slide: 32 Gross Loans – Traditional Bank (excluding Warehouse loans and 2012 acquired bank loans)
Slide 33: Asset Quality - 3/31/13 Traditional Banking Segment
Slide 33: Asset Quality – 3/31/13 Traditional Banking Segment 33 (1) Peer Data obtained from December 31, 2012 Uniform Bank Performance Report (“UBPR”) Republic Excluding Impact of Total Acquisitions Acquisitions Republic Peer (1) Non-performing loans to total loans 0.73% 0.07% 0.80% 2.24% Annualize
Slide 34: Ongoing Initiatives
Slide: 34 Ongoing Initiatives Make additional acquisitions with a focus in the near-term toward FDIC-assisted deals. Grow traditional loan portfolios – commercial and retail loans. Grow product lines – Warehouse Lending, Credit Card, and Debit Card income. Expand new lines of business – Prepaid Card
Slide 35: Future Challenges
Slide: 35 Future Challenges Growing net interest margin for all banks in current rate environment. Secondary market demand makes growing portfolio difficult. Extensive competition for A+ loan credits. Political uncertainty causing many customers to sit on the sideline. Consumer Financial Protection
Slide 36: We were here for you yesterday
Slide: 36 We were here for you yesterday.We are here for you today.We will be here for you tomorrow.
Slide 37: Thank You
Slide: 37 THANK YOU