Republic Bancorp, Inc. · NASDAQ:RBCAA
Republic Bancorp — Shareholder Meeting (April 2015)
36 slides from Republic Bancorp's shareholder meeting presentation, Apr 23, 2015
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Thursday, April 23, 2015
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
Slide 4: Highlights Year ended December 31, 2014
Highlights Year ended December 31, 2014
Slide 5: Republic Bank Banking Centers
Republic Bank Banking Centers Louisville, KY 17 Lexington, KY 4 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, IN 1 Frank
Slide 6: Stock Overview
Stock Overview 1998 – IPO completed2.6million shares issued (adjusted)NASDAQ Symbol RBCAA Shares Outstanding – 12/31/1420.8million Market Capitalization – 12/31/14515million Average Daily Volume 24,600 shares (trailing 12 months at 12/31/14)Stock Price – 12/31/14$24.72 Stock Price - 12/31/13$24.54 B
Slide 7: 2014 Highlights
2014 Highlights Net income of $28.8 million, an increase of 13% over 2013, resulting in Diluted Earnings per Class A Common share of $1.38 Return On Average Assets (“ROA”) of 0.81% Return On Average Equity (“ROE”) of 5.16% Total gross loans grew by $451 million, or 17%, during 2014 Mortgage Warehous
Slide 8: 2014 Highlights (continued)
2014 Highlights (continued) Capital ratios continued to exceed “well capitalized” with a total risk based capital ratio of 22.17% at year end Traditional Banking credit metrics continued to outperform peers Grew core deposit balances $60M, or 4% Increased quarterly cash dividend by 6%, representing
Slide 9: Net Income and Earnings Per Share
Net Income and Earnings Per Share $(5) $- $5 $10 $15 $20 $25 $30 2013 2014 $(1.4) $4.5 $26.8 $24.3 In Millions Net Income Republic Processing Group Core Banking $25.4 $28.8 $1.10 $1.15 $1.20 $1.25 $1.30 $1.35 $1.40 2013 2014 $1.22 $1.38 EPS
Slide 10: Net Interest Income – Core Banking
Net Interest Income – Core Banking 4Q13 1Q14 2Q14 3Q14 4Q14 $32.0 $32.5 $32.4 $33.1 $34.3 In Millions
Slide 11: Non Interest Expense – Core Banking
Non Interest Expense – Core Banking 2013 2014 $50.7 $48.2 $19.4 $20.3 $29.7 $28.0 In Millions Salaries and Benefits Occupancy Other $99.8 $96.5
Slide 12: Balance Sheet
Balance Sheet
Slide 13: Strong Capital Foundation
Well 12/31/2014 Capitalized Capital Republic Minimum Ratio Bancorp Peer (1) Requirement Tier 1 Leverage 15.92% 9.83% 5.00% Tier 1 Risk Based 21.28% 13.24% 6.00% Total Risk Based 22.17% 14.40% 10.00% Strong Capital Foundation (1) Peer Data obtained from the December 31, 2014 Uniform Bank Performance
Slide 14: Loan Portfolio - 5yr History
Loan Portfolio (Excluding Acquired Banks) - 5yr History Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Residential Real Estate Commercial & Construction Real Estate Commercial & Industrial Outstanding Warehouse Balances Other $ In Millions $2,175 $2,285 $2,511 $2,494 $2,984 61% 60% 55% 55% 55% 33% 32% 31% 33% 2
Slide 15: Warehouse Lending 2011-2015
Warehouse Lending 2011-2015 Dec 11 Dec 12 Dec 13 Dec 14 Mar 15 $41 $217 $150 $319 $423 $80 $331 $358 $528 $563 Outstanding Balance Commitments In Millions
Slide 16: 2014 Core Deposits - Quarterly Averages
Quarter Ended Quarter Ended (in thousands) Dec 31, 2014 Dec 31, 2013 Change Non Interest Bearing $ 529,091 $ 505,115 $ 23,976 Now & Passbook Sav ings 779,239 725,398 53,841 Money Market Accounts 379,635 390,959 (11,324) Liquid CDs 33,803 34,811 (1,008) Money Market CDs 18,379 20,030 (1,651) Money Ma
Slide 17: Core Banking Deposits - 5yr History
Core Banking Deposits - 5yr History Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Non-Interest Bearing Interest-Bearing DDA MMDA/SAV Time Deposits Brokered Deposits In Millions $1,724 $1,977 $1,985 $2,050 23% 24% 24% 24% 30% 29% 33% 34% 28% 29% 28% 28% 13% 11% 9% 9% 6% 7% 6% 5% 19% 17% 39% 18% 7% $1,727 Percen
Slide 18: Lower Cost Deposits - 5yr History
Lower Cost Deposits - 5yr History Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Non-Interest Bearing Interest-Bearing DDA MMDA/SAV In Millions $1,300 $1,411 $1,637 $1,698 $1,757
Slide 19: Industry Strong Credit Quality
Industry Strong Credit Quality
Slide 20: Credit Quality Trends – Core Banking
Credit Quality Trends – Core Banking (includes acquisitions) Ratio 12/31/2014 12/31/2013 12/31/2012 12/31/2011 12/31/2010 Non Performing Loans / Total Loans 0.78% 0.81% 0.82% 1.02% 1.30% Non Performing Assets / Total Assets 0.93% 1.13% 1.41% 1.10% 1.32% Delinquent Loans / Total Loans 0.52% 0.63% 0.7
Slide 21: Non Performing Loans To Total Loans
12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 3.85% 3.16% 2.27% 1.49% 1.06% 1.30% 1.02% 0.82% 0.81% 0.78% Peer(1) Republic Non Performing Loans To Total Loans (1) Peer Data obtained from December 31, 2014 Uniform Bank Performance Report (“UBPR”)
Slide 22: Delinquent Loans To Total Loans
Delinquent Loans To Total Loans Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 1.24% 1.07% 0.79% 0.63% 0.52%
Slide 23: Net Loan Charge Offs To Average Loans
Net Loan Charge Offs To Average Loans (Core Banking )2010 2011 2012 2013 2014 1.66% 0.93% 0.61% 0.30% 0.18% 0.51% 0.24% 0.34% 0.18% 0.08% Peer(1) Republic (1) Peer Data obtained from December 31, 2014 Uniform Bank Performance Report (“UBPR”)
Slide 24: Interest Rate Management Strategy
Interest Rate Management Strategy
Slide 25: Interest Rate Sensitivity
Interest Rate Sensitivity Asset Repricing: 83% of our total loan portfolio reprices within 5yrs as of December 31, 2014 Commercial Real Estate portfolio repricing within 5yrs increased from 69% in 2013 to 81% in 2014 Commercial & Industrial portfolio repricing within 5yrs increased from 63% in 2013
Slide 26: Historical Net Interest Income
Historical Net Interest Income -25% -20% -15% -10% -5% 0% 5% Up 100 bp Up 200 bp Up 300 bp Up 400 bp % Change from Base* Policy Limit 12/31/2013 12/31/2014 * Result of instantaneous interest rate shock in terms of basis points. i.e. 100bp = 1%
Slide 27: Highlights First Quarter 2015
Highlights First Quarter 2015
Slide 28: 1Q 2015 Highlights
1Q 2015 Highlights Net income of $13.8 million, an increase of 15% over the first quarter of 2014 Return On Average Assets (“ROA”) of 1.40% Return On Average Equity (“ROE”) of 9.72% Capital ratios under new Basel III standard continued to exceed “well capitalized” with a total risk based capital rat
Slide 29: 1Q 2015 Highlights – RPG
1Q 2015 Highlights – RPG A 39% increase in refund transfers processed from 2014 Over $75 million loaded onto prepaid cards, up $9 million, or 14% from 2014 $4 million in gross loans outstanding for pilot RCS programs Signed agreement with Fenway Summer to pilot FS Card unsecured credit card program
Slide 30: Net Income and Earnings Per Share
Net Income and Earnings Per Share $- $2 $4 $6 $8 $10 $12 $14 1Q 2014 1Q 2015 $6.6 $7.2 $5.4 $6.6 In Millions Net Income Republic Processing Group Core Banking $12.0 $13.8 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 1Q2014 1Q2015 $0.58 $0.66 EPS 30 Average
Slide 31: Core Bank Loan Growth
Average Ending Ending Quarterly Quarterly (dollars in thousands) Balance Balance $ Balance Balance $Origination Channel 3/31/2015 12/31/14 Change 3/31/2015 3/31/2014 Change Warehouse Lending $ 423,155 $ 319,431 $ 103,724 $ 281,005 $ 116,607 $ 164,398 Correspondent Lending 231,451 226,628 4,823 232,3
Slide 32: Asset Quality – 3/31/15 Core Banking
Asset Quality – 3/31/15 Core Banking (1) Peer Data obtained from December 31, 2014 Uniform Bank Performance Report (“UBPR”) RepublicPeer (1)Non-performing loans to total loans0.79%1.06%Delinquent loans (30-89 days and accruing) to total loans0.10%0.48%
Slide 33: Prepaid Cards
Prepaid Cards $- $10 $20 $30 $40 $50 $60 $70 $80 1Q2014 1Q2015 $66 $75 In Millions Fundings $- $1 $2 $3 $4 $5 $6 $7 $8 Mar 2014 Mar 2015 $6 $7 In Millions Deposits
Slide 34: Initiatives
Initiatives Bank acquisitions; either purchase or FDIC-assisted Grow traditional loan portfolios – commercial and retail loans Grow product lines – Warehouse Lending, Dealer Services, Equipment Lease Financing Expand new lines of business – Prepaid Cards, Short-term credit products. Focus on core de
Slide 35: It's just easier here. Republic Bank.
It’s just easier here. Republic Bank.
Slide 36: Thank You
THANK YOU