Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Shareholder Meeting (April 2011)
32 slides from Republic Bancorp's shareholder meeting presentation, Apr 21, 2011
Slide 1: Republic Bancorp Annual Meeting of Shareholders
REPUBLIC BANCORP ANNUAL MEETING OF SHAREHOLDERS Thursday, April 21, 2011
Slide 2: Safe Harbor
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 tha
Slide 3: Steve Trager, President and Chief Executive Officer
3 Steve Trager President and Chief Executive Officer
Slide 4: Highlights Year ended December 31, 2010
4 HighlightsYear ended December 31, 2010
Slide 5: 2010 Highlights
5 2010 Highlights Total net income of $64.8 million, a 54% increase over 2009Record year at Tax Refund Solutions (“TRS”)Return On Average Assets (“ROA”) of 1.85%Return On Average Equity (“ROE”) of 17.92% Core banking low cost deposit balances increased $105 millionTraditional Bank net interest margi
Slide 6: 2010 Highlights
6 2010 Highlights Enhanced technologyNew core operating system Mobile BankingBranch Capture Republic Bank Foundation established with a $5 million initial contribution National Recognition - Four times during the year, Republic was recognized by a national publication as one of the best performing b
Slide 7: Total Return Analysis
7 Total Return Analysis * 12/31/00 – 12/31/10 472.1% 15.1% 85.4% 22.1% 36.4% Republic Bancorp, Inc. S&P 500 Russell 2000 Index NASDAQ Bank Index DOW JONES Industrial Average * - gross dividends assumed reinvested
Slide 8: Outstanding Compounded Annual Growth Rates
8 Outstanding Compounded Annual Growth Rates As of December 31, 2010 5-Year Compound Annual Growth Rate 3-Year Compound Annual Growth Rate YTD Diluted EPS 13.7% 37.2% YTD Cash Dividends (Class A) 12.9% 9.8% Stock Price 4.1% 12.8% Book Value Per Share 11.1% 13.1%
Slide 9: Net Income
9 Net Income In Millions $33.7 $42.1 $64.8 2008 2009 2010
Slide 10: Diluted Earnings Per Class A Common Stock
10 Diluted Earnings Per Class A Common Stock $1.62 $2.02 $3.10 2008 2009 2010 37.2% three year EPS annual compounded growth rate
Slide 11: Balance Sheet
11 Balance Sheet
Slide 12: Strong Capital Foundation
12 Strong Capital Foundation Republic Bancorp, Inc. Well Capitalized Requirement 12/31/10 12/31/09 Tier 1 Leverage 12.05% 10.52% 5.00% Tier 1 Risk Based 20.89% 17.25% 6.00% Total Risk Based 22.04% 18.37% 10.00%
Slide 13: Lending Strategy – Dec. 31, 2010 Highlights
13 Lending Strategy– Dec. 31, 2010 Highlights Loan Portfolio Total Loans: $2.2 Billion Industry leading credit quality 97% of loans in Kentucky and Southern Indiana market footprint Diversification between retail and commercial lendingFocus on segments where high touch service matters Locally owned
Slide 14: 2010 Average Core Deposits
14 2010 Average Core Deposits (excludes Institutional Brokered Deposits & CDs) Quarter Ended Quarter Ended Dec 31, 2010 Dec 31, 2009 Change (in thousands) NON-INT BEARING DEPOSITS $ 330,341 $ 321,661 $ 8,680 NOW & PASSBOOK SAVINGS 308,781 249,456 59,325 MONEY MARKET & SUPER NOW 581,396 524,666 56,73
Slide 15: Deposit Mix – December 31, 2010
15 Deposit Mix – December 31, 2010 Excluding Deposits Associated with TRS Money Market 38% Total Non-Interest-Bearing Deposits 18% Demand (NOW and SuperNOW) 17% Time Deposits $100,000+ 9% Other Certificates of Deposit 9% Retail CDARS 5% IRA 2% Savings 2% Total Deposits: $1.7 Billion 4th Qtr 2010 Tra
Slide 16: Deposit Market Share – Jefferson County, Kentucky
16 Deposit Market Share – Jefferson County, Kentucky PNC/National City 26.3% All Other 16.4% JP Morgan Chase 15.9% Fifth Third 12.7% Republic 8.5% BB&T 7.9% Stock Yards 7.8% US Bank 4.5% 26 FDIC Insured Institutions. $15.7 Billion Total Deposits Source: FDIC Summary of Deposits. Data as of 6/30/10
Slide 17: Industry Strong Credit Quality
17 Industry Strong Credit Quality
Slide 18: Credit Quality Trends – Traditional Banking
18 Credit Quality Trends – Traditional Banking As of and for the Year Ended December 31, Ratio 2010 2009 2008 Non Performing Loans/ Total Loans 1.30% 1.90% 0.58% Non Performing Assets/ Total Assets 1.32% 1.60% 0.69% Allowance/ Non Performing Loans 82% 53% 110% Allowance/ Gross Loans 1.06% 1.01% 0.64
Slide 19: Net Loan Charge Offs To Average Loans
19 Net Loan Charge Offs To Average Loans (Traditional Banking Segment) Peer(1) Republic 2007 2008 2009 2010 0.29% 0.10% 0.97% 0.26% 1.86% 0.34% 1.64% 0.51% (1) Peer Data obtained from December 31, 2010 Uniform Bank Performance Report (“UBPR”)
Slide 20: Non Performing Loans To Total Loans
20 Non Performing Loans To Total Loans 12/31/2007 12/31/2008 12/31/2009 12/31/2010 0.96% 0.40% 2.36% 0.58% 4.33% 1.90% 3.87% 1.30% (1) Peer Data obtained from December 31, 2010 Uniform Bank Performance Report (“UBPR”)
Slide 21: Delinquent Loans To Total Loans
21 Delinquent Loans To Total Loans 2007 2008 2009 2010 0.69% 1.07% 1.98% 1.24%
Slide 22: Results of Operations
22 Results of Operations
Slide 23: Net Interest Income – Traditional Banking Segment
23 Net Interest Income – Traditional Banking Segment In Millions $111 $110 $106 2008 2009 2010
Slide 24: Non Interest Income as a % of Total Revenue
24 Non Interest Income as a % of Total Revenue 2009 2009 2010 18.52% 21.32% 31.18% Strong service charges on deposits Significant TRS and mortgage banking contribution
Slide 25: Highlights First Quarter 2011
25 Highlights First Quarter 2011
Slide 26: First Quarter 2011 Highlights
26 First Quarter 2011 Highlights Record net income of $71.4 million, a 60% increase over prior yearTRS segment net income increased $27.8 million Return On Average Assets (“ROA”) of 7.01% Return On Average Equity (“ROE”) of 69.96% “Traditional Bank” deposit period end balances increased $65 million
Slide 27: First Quarter 2011 Highlights: Tax Season Overview
27 First Quarter 2011 HighlightsTax Season Overview 3.6 million customers $14.4 billion of state and federal electronic tax refunds processed 16.3% increase in the amount of refunds processed 662,000 Refund Anticipation Loans (“RALs”) $1.0 billion of RALs processed 31, 2010 15%/85% - RAL / Electroni
Slide 28: Net Income
28 Net Income In Millions $25.8 $44.6 $71.4 1Q 2009 1Q 2010 1Q 2011
Slide 29: Asset Quality – March 31, 2011
29 Asset Quality – March 31, 2011 Traditional Banking Segment Republic Peer(1) Non-performing loans to total loans 1.23% 3.87% Delinquent loans (30-89 days) to total loans 1.04% 5.13% (1) Peer Data obtained from December 31, 2010 Uniform Bank Performance Report (“UBPR”)
Slide 30: Growth Initiatives
30 Growth Initiatives Develop new lines of business Secondary market lending Attract customers leaving troubled institutions looking for safety and soundness Add strategically located banking centers and make selective acquisitions Outperform peer financial performance Focus on core deposit growth i
Slide 31: 2011 Challenges & Opportunities
31 2011 Challenges & Opportunities Challenges New Regulation E requirements New FDIC overdraft guidanceOngoing regulatory dialogue regarding the TRS business Improving net interest margin by capitalizing on low cost deposit opportunities within Treasury Management Non-interest expense control Contin
Slide 32: Thank You
32 THANK YOU