LOUISVILLE, Ky.--(BUSINESS WIRE)-- Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).
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Republic Bancorp, Inc. (“Republic” or the “Company”) reported solid second quarter net income of $15.8 million resulting in Diluted Earnings per Class A Common Share (“Diluted EPS”) of $0.76. Year-to-date (“YTD”) net income for the first six months of 2020 was $42.5 million resulting in return on average assets (“ROA”) and return on average equity (“ROE”) of 1.45% and 10.79%. Net income for the second quarter and first six months of 2020 was negatively impacted by estimated Provisions for Expected Credit Loss Expense (“Provision”) directly related to the on-going COVID-19 pandemic.
Steve Trager, Chairman & CEO of Republic commented, “With 2020 halfway over, I think we can all say that it will go down as one of the most unforgettable years in our lifetimes. As the CEO of a publicly traded company, I am proud of our operating performance during these challenging times, and I believe our financial results speak for themselves. In addition, I am also extremely proud of our organizational response to the COVID-19 pandemic. We were able to support our client base at an elite level while also protecting our associates and the communities we serve during a very scary time. I cannot stress enough how incredible the efforts were, and continue to be, from all of our associates in this endeavor, with nearly 80% of our workforce working from home through much of the pandemic. With the world slowly returning to normal business operations, we reopened our banking centers to foot traffic on June 4th, and on June 15th began bringing back up to 25% of our back-office support staff. Our “return-to-work” team continues to refine its plan to bring all of our associates back to the office over an extended period of time, provided we can do so in a safe-and-sound manner.”
Trager continued, “Just as important at this time, all of us at Republic are heartbroken by recent events that led to the current protests and demands for change. Our Executive Team has spent many hours listening – first to our Black and African-American associates, and then to the leaders and change-makers from the community. This reinforced our belief that corporate America, first and foremost, must step up to ensure economic equality for all. Initially, we have plans to develop a community loan fund, which will be designed to help small businesses in need within economically challenged areas of the communities we serve. We recognize these are small first steps on a very long journey to racial equity and justice, but we are committed to long-standing efforts that will positively impact the Black and African-American community.”
The following table highlights Republic’s financial performance for the three and six months ended June 30, 2020 and 2019:
Total Company Financial Performance Highlights |
|||||||||||||||||||||||||||||||
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) |
2020 |
2019 |
$ Change |
% Change |
2020 |
2019 |
$ Change |
% Change |
|||||||||||||||||||||||
Income Before Income Tax Expense* |
$ |
19,597 |
$ |
21,183 |
$ |
(1,586) |
(7) |
% |
$ |
53,175 |
$ |
58,159 |
$ |
(4,984) |
(9) |
% |
|||||||||||||||
Net Income * |
15,804 |
18,007 |
(2,203) |
(12) |
42,501 |
47,523 |
(5,022) |
(11) |
|||||||||||||||||||||||
Diluted Earnings per Class A Common Share |
0.76 |
0.86 |
(0.10) |
(12) |
2.04 |
2.28 |
(0.24) |
(11) |
|||||||||||||||||||||||
Return on Average Assets |
1.04 |
% |
1.31 |
% |
NA |
(21) |
1.45 |
% |
1.73 |
% |
NA |
(16) |
|||||||||||||||||||
Return on Average Equity |
7.93 |
9.88 |
NA |
(20) |
10.79 |
13.24 |
NA |
(19) |
|||||||||||||||||||||||
* Results by reportable segment provided near the end of this earnings release. NA – Not applicable
Results of Operations for the Second Quarter of 2020 Compared to the Second Quarter of 2019
Core Bank(1)
Net income from Core Banking was $13.2 million for the second quarter of 2020, a 2% increase from the second quarter of 2019, while pretax net income from Core Banking for the second quarter of 2020 was even more favorable with a 12% increase over the second quarter of 2019. The comparability of second quarter net income for the Core Bank was negatively impacted by the benefit of certain infrequent income tax items recorded during the second quarter of 2019. Particularly strong revenues from the Core Bank’s Mortgage Banking and Warehouse Lending (“Warehouse”) segments, along with income from the origination of $526 million in Paycheck Protection Program (“PPP”) loans, drove the Core Bank’s second quarter earnings in 2020. Partially offsetting these increases was additional Provision, as management continues to update the estimated impact of the COVID-19 pandemic to the Core Bank’s loan portfolio.
Net Interest Income – Core Bank net interest income was $45.5 million for the second quarter of 2020, a 1% decrease from the same period in 2019. Industry-wide net interest margin compression was the primary driver of the slight decrease and was partially offset by the benefit to net interest income of robust loan growth in the Warehouse segment and solid loan growth within the Traditional Banking segment, particularly within the PPP portfolio. Overall, average Core Bank loans grew $434 million, or 10%, from the second quarter of 2019. Usage rates on the Core Bank’s Warehouse lines rose from 57% during the second quarter of 2019 to 68% during the second quarter of 2020, driving average Warehouse balances from $635 million to a robust $807 million during these same time periods. The Core Bank’s Traditional Banking segment loan averages grew $232 million over the second quarter of 2019, driven by $526 million in PPP loans originated during the second quarter of 2020. The Bank earns an annual coupon of 1% plus lender fees for each PPP origination.
Consistent with a 225 basis point drop in the Federal Funds Target Rate over the past 12 months, the Core Bank’s net interest spread and net interest margin compressed 26 basis points and 39 basis points, respectively, from the second quarter of 2019 to the same period in 2020. The Core Bank’s net interest spread, the weighted average rate earned on its interest-earning assets less the weighted average cost paid on its interest-bearing liabilities, contracted primarily because the Core Bank’s liabilities had less room to reprice downward than its asset counterparts. The Core Bank’s net interest margin contracted 13 basis points more than the contraction in its net interest spread due to the reduction in benefit it realizes from its noninterest-bearing funding sources.
The following tables present by reportable segment the overall changes in the Core Bank’s net interest income, net interest margin, as well as average and period-end loan balances:
Net Interest Income |
Net Interest Margin |
||||||||||||||||||||||
(dollars in thousands) |
Three Months Ended Jun. 30, |
Three Months Ended Jun. 30, |
|||||||||||||||||||||
Reportable Segment |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
|||||||||||||||||
Traditional Banking* |
$ |
39,035 |
$ |
41,877 |
$ |
(2,842) |
3.26 |
% |
3.75 |
% |
(0.49) |
% |
|||||||||||
Warehouse Lending |
6,063 |
3,957 |
2,106 |
3.01 |
2.49 |
0.52 |
|||||||||||||||||
Mortgage Banking* |
419 |
170 |
249 |
NM |
NM |
NM |
|||||||||||||||||
Core Bank |
$ |
45,517 |
$ |
46,004 |
$ |
(487) |
3.23 |
3.62 |
(0.39) |
||||||||||||||
Average Loan Balances |
Period-End Loan Balances |
|||||||||||||||||||||||||
(dollars in thousands) |
Three Months Ended Jun. 30, |
Jun. 30, |
||||||||||||||||||||||||
Reportable Segment |
2020 |
2019 |
$ Change |
% Change |
2020 |
2019 |
$ Change |
% Change |
||||||||||||||||||
Traditional Banking* |
$ |
3,883,753 |
$ |
3,651,630 |
$ |
232,123 |
6 |
% |
$ |
3,935,823 |
$ |
3,699,576 |
$ |
236,247 |
6 |
% |
||||||||||
Warehouse Lending |
806,771 |
634,688 |
172,083 |
27 |
1,029,779 |
737,794 |
291,985 |
40 |
||||||||||||||||||
Mortgage Banking* |
42,290 |
12,153 |
30,137 |
248 |
40,028 |
13,883 |
26,145 |
188 |
||||||||||||||||||
Core Bank |
$ |
4,732,814 |
$ |
4,298,471 |
$ |
434,343 |
10 |
$ |
5,005,630 |
$ |
4,451,253 |
$ |
554,377 |
12 |
||||||||||||
*Includes loans held for sale NM – Not meaningful
Provision for Expected Credit Loss Expense – The Core Bank’s Provision increased to $3.5 million for the second quarter of 2020 from $1.8 million for the same period in 2019. The Provision for the second quarter of 2020 primarily reflected $4.6 million of Provision related to the potential impact of the COVID-19 pandemic to the Core Bank’s loan portfolio partially offset by a reduction of $1.5 million in reserves due to a $112 million decrease in non-PPP Traditional Bank loans during the second quarter of 2020. The Provision for the second quarter of 2019 included a $1.2 million estimated specific loan loss reserve for one commercial-related client that defaulted during the period.
As of June 30, 2020, the Traditional Banking segment maintained $793 million in loans under deferral and forbearance agreements due to COVID-19 hardship. These deferral and forbearance agreements were generally under three-month terms but could be further extended based on underlying borrower circumstances. The following table presents the balances of loans in COVID-19 related deferral or forbearance, the balance of PPP loans, and the remainder of the Traditional Bank’s loan portfolio by loan class as of June 30, 2020:
Total |
||||||||||||||||||||
June 30, 2020 (dollars in thousands) |
COVID-19 Hardship (1) |
PPP Loans |
Other Loans |
Traditional Banking |
||||||||||||||||
Traditional Banking: |
||||||||||||||||||||
Residential real estate: |
||||||||||||||||||||
Owner occupied |
$ |
51,570 |
$ |
— |
$ |
833,755 |
$ |
885,325 |
||||||||||||
Nonowner occupied |
58,754 |
— |
195,946 |
254,700 |
||||||||||||||||
Commercial real estate |
491,314 |
— |
830,976 |
1,322,290 |
||||||||||||||||
Commercial & industrial |
141,720 |
511,065 |
251,942 |
904,727 |
||||||||||||||||
Construction & land development |
28,927 |
— |
128,327 |
157,254 |
||||||||||||||||
Lease financing receivables |
2,443 |
— |
9,421 |
11,864 |
||||||||||||||||
Home equity |
13,776 |
— |
251,490 |
265,266 |
||||||||||||||||
Consumer |
4,678 |
— |
129,719 |
134,397 |
||||||||||||||||
Total Traditional Banking |
$ |
793,182 |
$ |
511,065 |
$ |
2,631,576 |
$ |
3,935,823 |
||||||||||||
Percent of Total Traditional Banking |
20 |
% |
13 |
% |
67 |
% |
100 |
% |
||||||||||||
(1) Loans under deferral or forbearance agreements due to COVID-19 hardship. Agreements are generally under three-month terms.
Noninterest Income – Core Bank noninterest income was $14.5 million during the second quarter of 2020, a $4.2 million, or 41%, increase from the solid $10.3 million achieved during the second quarter of 2019. Items significantly impacting noninterest income for the quarter included the following:
- Mortgage Banking income increased $6.0 million, resulting from a $137 million increase in secondary market loans originated from period to period combined with a $59 million increase in the Bank’s pipeline of secondary market loans from June 30, 2019 to June 30, 2020. The increase in volume is a proud accomplishment, as our Mortgage Banking associates accommodated this high demand in a predominantly digital and virtual environment, while maintaining industry-strong closing times.
- Offsetting the increase in Mortgage Banking income were decreases in Service Charges on Deposits of $1.1 million and Interchange Income of $444,000. These decreases largely reflect a change in consumer savings and spending patterns during the pandemic-driven economic restrictions. At this time, the Company is uncertain if and for how long these current patterns will continue.
Noninterest Expense – Core Bank noninterest expense increased 1% when comparing the second quarter of 2020 to the same period in 2019. Items significantly impacting noninterest expense for the quarter included the following:
- Salaries and benefits expense increased $894,000, or 4%, substantially driven by higher Mortgage Banking commissions.
- Data Processing expense increased $483,000, or 22%, driven by the Company’s increased investment in Software-as-a-Service applications since June 30, 2019.
- Offsetting the above were decreases in Marketing and Development, Interchange, and Travel and Entertainment expenses, with each of these expenses driven downward as a direct result of pandemic-related influences.
Republic Processing Group(2)
Republic Processing Group (“RPG”) reported net income of $2.6 million for the second quarter of 2020 compared to $5.1 million for the same period in 2019, with a $3.5 million decrease in net income at RPG’s Tax Refund Solutions (“TRS”) segment partially offset by a $1.0 million increase in net income at its Republic Credit Solutions (“RCS”) segment.
Tax Refund Solutions
Related to TRS, an increase in estimated Provision for its Easy Advance (“EA”) loans drove the negative swing in net income for the quarter. Overall, the TRS Provision increased from a net charge of $392,000 during the second quarter of 2019 to a net charge of $4.4 million during the second quarter of 2020. With the second quarter EA paydowns, the percent of unpaid EA’s to total EA’s originated dropped to 5.05% at June 30, 2020. This compares to 3.45% at June 30, 2019, a difference of 160 basis points. By comparison, the unpaid EA percentage was 6.77% at March 31, 2020, compared to 5.84% at March 31, 2019, representing a difference of 93 basis points.
The higher net charges to the Provision during the second quarter of 2020 and the higher unpaid EA balances as a percentage of EA originations as of June 30, 2020, resulted from repayment rates from the U.S. Treasury that significantly lagged those during the second quarter of 2019. Management believes the significant decline in repayment rates from the U.S. Treasury during the second quarter of 2020 was directly related to the impact of the current COVID-19 pandemic and the ability of the IRS to facilitate payment processing for certain types of tax returns that require further taxpayer communication and verification. While management is optimistic that EA loss rates could still finish more in-line with those from the prior years, management is uncertain if or when this turnaround could occur. As a result, the Company completely charged-off all remaining unpaid EA’s as of June 30, 2020, in-line with its customary June 30th charge-off policy for EA loans. Any EA payments received after June 30, 2020 will be credited as a direct recovery to the Provision in the period it is received.
In addition to an increase in EA related Provision, a $716,000, or 20%, decrease in net Refund Transfer (“RT”) revenues during the second quarter of 2020 compared to the second quarter of 2019 also negatively impacted TRS’s quarter-to-quarter comparison. RT’s processed decreased 8% and revenue per RT decreased 1% from 2019 to 2020. As with the lag in payments from the U.S. Treasury related to EA’s, management believes the COVID-19 pandemic also negatively impacted 2020 RT volume, particularly within the second quarter of 2020.
Republic Credit Solutions
Net income at RCS increased from $4.1 million during the second quarter of 2019 to $5.1 million for the second quarter of 2020. The increase in RCS’s net income primarily reflected a release of $3.2 million in RCS’s reserves as a result of a $7 million decrease in outstanding balances for its line-of-credit product during the second quarter of 2020. Provision expense for RCS’s line-of-credit product swung from a net charge of $2.2 million during the second quarter of 2019 to a net credit of $1.5 million for second quarter of 2020. RCS provides for losses on this line-of-credit product at approximately 49% of outstanding balances, while earning approximately 90% of its total revenue (interest income and noninterest income) from this product. The $3.7 million reduction in RCS’s Provision for the quarter was partially offset by a $2.0 million reduction in RCS’s revenues resulting from the decrease in outstanding loan balances.
Republic Bancorp, Inc. (the “Company”) is the parent company of Republic Bank & Trust Company (the “Bank”). The Bank currently has 42 full-service banking centers and two loan production offices throughout five states: 28 banking centers in 8 Kentucky communities – Covington, Crestview Hills, Florence, Georgetown, Lexington, Louisville, Shelbyville, and Shepherdsville; three banking centers in southern Indiana – Floyds Knobs, Jeffersonville, and New Albany; seven banking centers in six Florida communities (Tampa MSA) – Largo, New Port Richey, St. Petersburg, Seminole, Tampa, and Temple Terrace, and one loan production office in Oldsmar; two banking centers in two Tennessee communities (Nashville MSA) – Cool Springs and Green Hills, and one loan production office in Brentwood; and two banking centers in two Ohio communities (Cincinnati MSA) – Norwood and West Chester. The Bank offers internet banking at www.republicbank.com. The Bank also offers separately branded, nation-wide digital banking at www.mymemorybank.com. The Company has $6.5 billion in assets and is headquartered in Louisville, Kentucky. The Company’s Class A Common Stock is listed under the symbol “RBCAA” on the NASDAQ Global Select Market.
Republic Bank. It’s just easier here. ®
Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the preceding paragraphs are based on our current expectations and assumptions regarding our business, the future impact to our balance sheet and income statement resulting from changes in interest rates, the yield curve, the ability to develop products and strategies in order to meet the Company’s long-term strategic goals, the economy, and other future conditions, including, but not limited to, the impact of the COVID-19 pandemic. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Actual results could differ materially based upon factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission, including those factors set forth as “Risk Factors” in the Company’s Annual Report on Form 10-K for the period ended December 31, 2019 and quarterly report on Form 10-Q for the period ended March 31, 2020. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.
Republic Bancorp, Inc. Financial Information |
||||||||||
Second Quarter 2020 Earnings Release |
||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
||||||||||
Balance Sheet Data |
||||||||||
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
||||||||
Assets: |
||||||||||
Cash and cash equivalents |
$ |
560,195 |
$ |
385,303 |
$ |
473,779 |
||||
Investment securities, net of allowance for credit losses (3) |
545,607 |
537,074 |
447,512 |
|||||||
Loans held for sale |
52,992 |
31,468 |
63,949 |
|||||||
Loans held for sale upon branch divestiture |
— |
— |
131,881 |
|||||||
Loans |
5,065,092 |
4,433,151 |
4,390,533 |
|||||||
Allowance for credit losses (3) |
(55,097) |
(43,351) |
(45,983) |
|||||||
Loans, net |
5,009,995 |
4,389,800 |
4,344,550 |
|||||||
Federal Home Loan Bank stock, at cost |
25,629 |
30,831 |
32,242 |
|||||||
Premises and equipment, net |
42,753 |
46,196 |
44,199 |
|||||||
Right-of-use assets |
34,450 |
35,206 |
37,450 |
|||||||
Goodwill |
16,300 |
16,300 |
16,300 |
|||||||
Other real estate owned ("OREO") |
2,194 |
113 |
1,095 |
|||||||
Bank owned life insurance ("BOLI") |
67,217 |
66,433 |
65,642 |
|||||||
Other assets and accrued interest receivable |
103,243 |
81,595 |
64,535 |
|||||||
Total assets |
$ |
6,460,575 |
$ |
5,620,319 |
$ |
5,723,134 |
||||
Liabilities and Stockholders' Equity: |
||||||||||
Deposits: |
||||||||||
Noninterest-bearing |
$ |
1,821,400 |
$ |
1,033,379 |
$ |
1,003,793 |
||||
Interest-bearing |
3,196,685 |
2,752,629 |
2,557,127 |
|||||||
Deposits held for assumption upon branch divestiture |
— |
— |
152,954 |
|||||||
Total deposits |
5,018,085 |
3,786,008 |
3,713,874 |
|||||||
Securities sold under agreements to repurchase and other short-term borrowings |
177,397 |
167,617 |
226,002 |
|||||||
Operating lease liabilities |
35,571 |
36,530 |
38,852 |
|||||||
Federal Reserve Paycheck Protection Program Liquidity Facility |
169,209 |
— |
— |
|||||||
Federal Home Loan Bank advances |
137,500 |
750,000 |
915,000 |
|||||||
Subordinated note |
41,240 |
41,240 |
41,240 |
|||||||
Other liabilities and accrued interest payable |
85,954 |
74,680 |
56,738 |
|||||||
Total liabilities |
5,664,956 |
4,856,075 |
4,991,706 |
|||||||
Stockholders' equity |
795,619 |
764,244 |
731,428 |
|||||||
Total liabilities and stockholders' equity |
$ |
6,460,575 |
$ |
5,620,319 |
$ |
5,723,134 |
||||
Average Balance Sheet Data |
|||||||||||||
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||
Assets: |
|||||||||||||
Federal funds sold and other interest-earning deposits |
$ |
299,760 |
$ |
297,205 |
$ |
253,548 |
$ |
293,587 |
|||||
Investment securities, including FHLB stock |
605,776 |
514,366 |
562,751 |
538,923 |
|||||||||
Loans, including loans held for sale |
4,867,622 |
4,424,905 |
4,680,380 |
4,341,254 |
|||||||||
Total interest-earning assets |
5,773,158 |
5,236,476 |
5,496,679 |
5,173,764 |
|||||||||
Total assets |
6,094,421 |
5,480,525 |
5,860,683 |
5,478,609 |
|||||||||
Liabilities and Stockholders' Equity: |
|||||||||||||
Noninterest-bearing deposits, including those held for assumption |
$ |
1,697,603 |
$ |
1,098,817 |
$ |
1,473,314 |
$ |
1,178,198 |
|||||
Interest-bearing deposits, including those held for assumption |
2,880,988 |
2,588,836 |
2,868,160 |
2,609,188 |
|||||||||
Securities sold under agreements to |
|||||||||||||
repurchase and other short-term borrowings |
176,541 |
220,189 |
192,755 |
225,864 |
|||||||||
Federal Reserve Paycheck Protection Program Liquidity Facility |
122,769 |
— |
61,384 |
— |
|||||||||
Federal Home Loan Bank advances |
263,296 |
710,879 |
317,307 |
611,695 |
|||||||||
Subordinated note |
41,240 |
41,240 |
41,240 |
41,240 |
|||||||||
Total interest-bearing liabilities |
3,484,834 |
3,561,144 |
3,480,846 |
3,487,987 |
|||||||||
Stockholders' equity |
797,227 |
728,723 |
788,064 |
717,838 |
|||||||||
Republic Bancorp, Inc. Financial Information |
|||||||||||||
Second Quarter 2020 Earnings Release (continued) |
|||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
|||||||||||||
Income Statement Data |
|||||||||||||
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||
Total interest income (4) |
$ |
57,091 |
$ |
65,664 |
$ |
138,250 |
$ |
148,297 |
|||||
Total interest expense |
4,886 |
11,718 |
13,307 |
22,052 |
|||||||||
Net interest income |
52,205 |
53,946 |
124,943 |
126,245 |
|||||||||
Provision for expected credit loss expense (3) |
6,534 |
4,460 |
29,294 |
21,691 |
|||||||||
Noninterest income: |
|||||||||||||
Service charges on deposit accounts |
2,451 |
3,598 |
5,587 |
6,901 |
|||||||||
Net refund transfer fees |
2,913 |
3,629 |
18,736 |
20,729 |
|||||||||
Mortgage banking income |
8,398 |
2,416 |
13,193 |
3,955 |
|||||||||
Interchange fee income |
2,808 |
3,257 |
5,360 |
6,014 |
|||||||||
Program fees |
1,138 |
1,037 |
3,762 |
2,111 |
|||||||||
Increase in cash surrender value of BOLI |
395 |
377 |
784 |
759 |
|||||||||
Net gains on OREO |
1 |
90 |
4 |
220 |
|||||||||
Other |
647 |
721 |
1,894 |
1,853 |
|||||||||
Total noninterest income |
18,751 |
15,125 |
49,320 |
42,542 |
|||||||||
Noninterest expense: |
|||||||||||||
Salaries and employee benefits |
26,324 |
25,286 |
52,946 |
50,362 |
|||||||||
Occupancy and equipment, net |
6,715 |
6,472 |
13,561 |
13,056 |
|||||||||
Communication and transportation |
1,353 |
1,071 |
2,642 |
2,232 |
|||||||||
Marketing and development |
1,018 |
1,278 |
1,851 |
2,380 |
|||||||||
FDIC insurance expense |
299 |
295 |
299 |
743 |
|||||||||
Bank franchise tax expense |
914 |
935 |
3,420 |
3,431 |
|||||||||
Data processing |
2,753 |
2,217 |
5,292 |
4,313 |
|||||||||
Interchange related expense |
1,173 |
1,302 |
2,249 |
2,617 |
|||||||||
Supplies |
539 |
582 |
991 |
1,066 |
|||||||||
Other real estate owned and other repossession expense |
21 |
148 |
39 |
194 |
|||||||||
Legal and professional fees |
1,025 |
844 |
2,262 |
1,730 |
|||||||||
Other |
2,691 |
2,998 |
6,242 |
6,813 |
|||||||||
Total noninterest expense |
44,825 |
43,428 |
91,794 |
88,937 |
|||||||||
Income before income tax expense |
19,597 |
21,183 |
53,175 |
58,159 |
|||||||||
Income tax expense |
3,793 |
3,176 |
10,674 |
10,636 |
|||||||||
Net income |
$ |
15,804 |
$ |
18,007 |
$ |
42,501 |
$ |
47,523 |
|||||
| Republic Bancorp, Inc. Financial InformationSecond Quarter 2020 Earnings Release (continued) | ||||||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
||||||||||||||||
Selected Data and Ratios |
||||||||||||||||
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Per Share Data: |
||||||||||||||||
Basic weighted average shares outstanding |
21,016 |
21,016 |
21,035 |
20,997 |
||||||||||||
Diluted weighted average shares outstanding |
21,041 |
21,138 |
21,077 |
21,125 |
||||||||||||
Period-end shares outstanding: |
||||||||||||||||
Class A Common Stock |
18,708 |
18,740 |
18,708 |
18,740 |
||||||||||||
Class B Common Stock |
2,200 |
2,208 |
2,200 |
2,208 |
||||||||||||
Book value per share (5) |
$ |
38.05 |
$ |
34.92 |
$ |
38.05 |
$ |
34.92 |
||||||||
Tangible book value per share (5) |
36.93 |
33.87 |
36.93 |
33.87 |
||||||||||||
Earnings per share ("EPS"): |
||||||||||||||||
Basic EPS - Class A Common Stock |
$ |
0.76 |
$ |
0.86 |
$ |
2.04 |
$ |
2.29 |
||||||||
Basic EPS - Class B Common Stock |
0.69 |
0.79 |
1.86 |
2.08 |
||||||||||||
Diluted EPS - Class A Common Stock |
0.76 |
0.86 |
2.04 |
2.28 |
||||||||||||
Diluted EPS - Class B Common Stock |
0.69 |
0.78 |
1.85 |
2.07 |
||||||||||||
Cash dividends declared per Common share: |
||||||||||||||||
Class A Common Stock |
$ |
0.286 |
$ |
0.264 |
$ |
0.572 |
$ |
0.528 |
||||||||
Class B Common Stock |
0.260 |
0.240 |
0.520 |
0.480 |
||||||||||||
Performance Ratios: |
||||||||||||||||
Return on average assets |
1.04 |
% |
1.31 |
% |
1.45 |
% |
1.73 |
% |
||||||||
Return on average equity |
7.93 |
9.88 |
10.79 |
13.24 |
||||||||||||
Efficiency ratio (6) |
63 |
63 |
53 |
53 |
||||||||||||
Yield on average interest-earning assets (4) |
3.96 |
5.02 |
5.03 |
5.73 |
||||||||||||
Cost of average interest-bearing liabilities |
0.56 |
1.32 |
0.76 |
1.26 |
||||||||||||
Cost of average deposits (7) |
0.32 |
0.75 |
0.46 |
0.72 |
||||||||||||
Net interest spread (4) |
3.40 |
3.70 |
4.27 |
4.47 |
||||||||||||
Net interest margin - Total Company (4) |
3.62 |
4.12 |
4.55 |
4.88 |
||||||||||||
Net interest margin - Core Bank (1) |
3.23 |
3.62 |
3.43 |
3.69 |
||||||||||||
Other Information: |
||||||||||||||||
End of period FTEs (8) - Total Company |
1,094 |
1,089 |
1,094 |
1,089 |
||||||||||||
End of period FTEs - Core Bank |
1,001 |
1,012 |
1,001 |
1,012 |
||||||||||||
Number of full-service banking centers |
42 |
45 |
42 |
45 |
||||||||||||
Republic Bancorp, Inc. Financial Information |
||||||||||||||||
Second Quarter 2020 Earnings Release (continued) |
||||||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
||||||||||||||||
Credit Quality Data and Ratios |
As of and for the |
As of and for the |
||||||||||||||
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Credit Quality Asset Balances: |
||||||||||||||||
Nonperforming Assets - Total Company: |
||||||||||||||||
Loans on nonaccrual status |
$ |
19,884 |
$ |
19,238 |
$ |
19,884 |
$ |
19,238 |
||||||||
Loans past due 90-days-or-more and still on accrual |
535 |
166 |
535 |
166 |
||||||||||||
Total nonperforming loans |
20,419 |
19,404 |
20,419 |
19,404 |
||||||||||||
OREO |
2,194 |
1,095 |
2,194 |
1,095 |
||||||||||||
Total nonperforming assets |
$ |
22,613 |
$ |
20,499 |
$ |
22,613 |
$ |
20,499 |
||||||||
Nonperforming Assets - Core Bank (1): |
||||||||||||||||
Loans on nonaccrual status |
$ |
19,884 |
$ |
19,238 |
$ |
19,884 |
$ |
19,238 |
||||||||
Loans past due 90-days-or-more and still on accrual |
— |
— |
— |
— |
||||||||||||
Total nonperforming loans |
19,884 |
19,238 |
19,884 |
19,238 |
||||||||||||
OREO |
2,194 |
1,095 |
2,194 |
1,095 |
||||||||||||
Total nonperforming assets |
$ |
22,078 |
$ |
20,333 |
$ |
22,078 |
$ |
20,333 |
||||||||
Delinquent loans: |
||||||||||||||||
Delinquent loans - Core Bank |
$ |
7,862 |
$ |
12,524 |
$ |
7,862 |
$ |
12,524 |
||||||||
Delinquent loans - RPG (2) |
6,184 |
6,802 |
6,184 |
6,802 |
||||||||||||
Total delinquent loans - Total Company |
$ |
14,046 |
$ |
19,326 |
$ |
14,046 |
$ |
19,326 |
||||||||
Credit Quality Ratios - Total Company: |
||||||||||||||||
Nonperforming loans to total loans |
0.40 |
% |
0.44 |
% |
0.40 |
% |
0.44 |
% |
||||||||
Nonperforming assets to total loans (including OREO) |
0.45 |
0.47 |
0.45 |
0.47 |
||||||||||||
Nonperforming assets to total assets |
0.35 |
0.36 |
0.35 |
0.36 |
||||||||||||
Allowance for credit losses to total loans |
1.09 |
1.05 |
1.09 |
1.05 |
||||||||||||
Allowance for credit losses to nonperforming loans |
270 |
237 |
270 |
237 |
||||||||||||
Delinquent loans to total loans (9) |
0.28 |
0.44 |
0.28 |
0.44 |
||||||||||||
Net charge-offs to average loans (annualized) |
1.80 |
1.49 |
1.03 |
0.94 |
||||||||||||
Credit Quality Ratios - Core Bank: |
||||||||||||||||
Nonperforming loans to total loans |
0.40 |
% |
0.45 |
% |
0.40 |
% |
0.45 |
% |
||||||||
Nonperforming assets to total loans (including OREO) |
0.44 |
0.47 |
0.44 |
0.47 |
||||||||||||
Nonperforming assets to total assets |
0.36 |
0.37 |
0.36 |
0.37 |
||||||||||||
Allowance for credit losses to total loans |
0.92 |
0.77 |
0.92 |
0.77 |
||||||||||||
Allowance for credit losses to nonperforming loans |
230 |
171 |
230 |
171 |
||||||||||||
Delinquent loans to total loans |
0.16 |
0.29 |
0.16 |
0.29 |
||||||||||||
Net charge-offs to average loans (annualized) |
0.04 |
0.04 |
0.01 |
0.04 |
||||||||||||
| Republic Bancorp, Inc. Financial Information | |||||||||||||||||
Second Quarter 2020 Earnings Release (continued) |
|||||||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
|||||||||||||||||
Balance Sheet Data |
|||||||||||||||||
Quarterly Comparison |
|||||||||||||||||
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
|||||||||||||
Assets: |
|||||||||||||||||
Cash and cash equivalents |
$ |
560,195 |
$ |
316,263 |
$ |
385,303 |
$ |
397,072 |
$ |
473,779 |
|||||||
Investment securities, net of allowance for credit losses (3) |
545,607 |
608,330 |
537,074 |
638,697 |
447,512 |
||||||||||||
Loans held for sale |
52,992 |
54,904 |
31,468 |
51,243 |
63,949 |
||||||||||||
Loans held for sale upon branch divestiture |
— |
— |
— |
130,770 |
131,881 |
||||||||||||
Loans |
5,065,092 |
4,515,599 |
4,433,151 |
4,664,054 |
4,390,533 |
||||||||||||
Allowance for credit losses (3) |
(55,097) |
(70,431) |
(43,351) |
(46,932) |
(45,983) |
||||||||||||
Loans, net |
5,009,995 |
4,445,168 |
4,389,800 |
4,617,122 |
4,344,550 |
||||||||||||
Federal Home Loan Bank stock, at cost |
25,629 |
38,900 |
30,831 |
32,242 |
32,242 |
||||||||||||
Premises and equipment, net |
42,753 |
44,215 |
46,196 |
46,735 |
44,199 |
||||||||||||
Right-of-use assets |
34,450 |
34,349 |
35,206 |
36,051 |
37,450 |
||||||||||||
Goodwill |
16,300 |
16,300 |
16,300 |
16,300 |
16,300 |
||||||||||||
Other real estate owned |
2,194 |
85 |
113 |
119 |
1,095 |
||||||||||||
Bank owned life insurance |
67,217 |
66,822 |
66,433 |
66,037 |
65,642 |
||||||||||||
Other assets and accrued interest receivable |
103,243 |
96,697 |
81,595 |
71,259 |
64,535 |
||||||||||||
Total assets |
$ |
6,460,575 |
$ |
5,722,033 |
$ |
5,620,319 |
$ |
6,103,647 |
$ |
5,723,134 |
|||||||
Liabilities and Stockholders' Equity: |
|||||||||||||||||
Deposits: |
|||||||||||||||||
Noninterest-bearing |
$ |
1,821,400 |
$ |
1,300,891 |
$ |
1,033,379 |
$ |
1,031,553 |
$ |
1,003,793 |
|||||||
Interest-bearing |
3,196,685 |
2,770,566 |
2,752,629 |
2,703,199 |
2,557,127 |
||||||||||||
Deposits held for assumption upon branch divestiture |
— |
— |
— |
142,384 |
152,954 |
||||||||||||
Total deposits |
5,018,085 |
4,071,457 |
3,786,008 |
3,877,136 |
3,713,874 |
||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings |
177,397 |
126,080 |
167,617 |
167,949 |
226,002 |
||||||||||||
Operating lease liabilities |
35,571 |
35,537 |
36,530 |
37,391 |
38,852 |
||||||||||||
Federal Reserve Paycheck Protection Program Liquidity Facility |
169,209 |
— |
— |
— |
— |
||||||||||||
Federal Home Loan Bank advances |
137,500 |
572,500 |
750,000 |
1,170,000 |
915,000 |
||||||||||||
Subordinated note |
41,240 |
41,240 |
41,240 |
41,240 |
41,240 |
||||||||||||
Other liabilities and accrued interest payable |
85,954 |
91,173 |
74,680 |
65,484 |
56,738 |
||||||||||||
Total liabilities |
5,664,956 |
4,937,987 |
4,856,075 |
5,359,200 |
4,991,706 |
||||||||||||
Stockholders' equity |
795,619 |
784,046 |
764,244 |
744,447 |
731,428 |
||||||||||||
Total liabilities and stockholders' equity |
$ |
6,460,575 |
$ |
5,722,033 |
$ |
5,620,319 |
$ |
6,103,647 |
$ |
5,723,134 |
|||||||
Average Balance Sheet Data |
|||||||||||||||||
Quarterly Comparison |
|||||||||||||||||
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
|||||||||||||
Assets: |
|||||||||||||||||
Federal funds sold and other interest-earning deposits |
$ |
299,760 |
$ |
207,335 |
$ |
152,286 |
$ |
302,156 |
$ |
297,205 |
|||||||
Investment securities, including FHLB stock |
605,776 |
519,726 |
632,559 |
547,281 |
514,366 |
||||||||||||
Loans, including loans held for sale |
4,867,622 |
4,493,137 |
4,588,538 |
4,606,139 |
4,424,905 |
||||||||||||
Total interest-earning assets |
5,773,158 |
5,220,198 |
5,373,383 |
5,455,576 |
5,236,476 |
||||||||||||
Total assets |
6,094,421 |
5,626,946 |
5,638,498 |
5,711,636 |
5,480,525 |
||||||||||||
Liabilities and Stockholders' Equity: |
|||||||||||||||||
Noninterest-bearing deposits, including those held for assumption |
$ |
1,697,603 |
$ |
1,249,025 |
$ |
1,062,010 |
$ |
1,065,904 |
$ |
1,098,817 |
|||||||
Interest-bearing deposits, including those held for assumption |
2,880,988 |
2,855,332 |
2,966,993 |
2,833,632 |
2,588,836 |
||||||||||||
Securities sold under agreements to |
|||||||||||||||||
repurchase and other short-term borrowings |
176,541 |
208,969 |
248,558 |
246,889 |
220,189 |
||||||||||||
Federal Reserve Paycheck Protection Program Liquidity Facility |
122,769 |
— |
— |
— |
— |
||||||||||||
Federal Home Loan Bank advances |
263,296 |
371,319 |
469,130 |
690,457 |
710,879 |
||||||||||||
Subordinated note |
41,240 |
41,240 |
41,240 |
41,240 |
41,240 |
||||||||||||
Total interest-bearing liabilities |
3,484,834 |
3,476,860 |
3,725,921 |
3,812,218 |
3,561,144 |
||||||||||||
Stockholders' equity |
797,227 |
778,900 |
758,740 |
742,176 |
728,723 |
||||||||||||
| Republic Bancorp, Inc. Financial InformationSecond Quarter 2020 Earnings Release (continued) | |||||||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
|||||||||||||||||
Income Statement Data |
|||||||||||||||||
Three Months Ended |
|||||||||||||||||
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
|||||||||||||
Total interest income (4) |
$ |
57,091 |
$ |
81,159 |
$ |
64,527 |
$ |
68,059 |
$ |
65,664 |
|||||||
Total interest expense |
4,886 |
8,421 |
10,132 |
12,573 |
11,718 |
||||||||||||
Net interest income |
52,205 |
72,738 |
54,395 |
55,486 |
53,946 |
||||||||||||
Provision for expected credit loss expense (3) |
6,534 |
22,760 |
914 |
3,153 |
4,460 |
||||||||||||
Noninterest income: |
|||||||||||||||||
Service charges on deposit accounts |
2,451 |
3,136 |
3,547 |
3,749 |
3,598 |
||||||||||||
Net refund transfer fees |
2,913 |
15,823 |
112 |
317 |
3,629 |
||||||||||||
Mortgage banking income |
8,398 |
4,795 |
2,480 |
3,064 |
2,416 |
||||||||||||
Interchange fee income |
2,808 |
2,552 |
2,814 |
3,031 |
3,257 |
||||||||||||
Program fees |
1,138 |
2,624 |
1,284 |
1,317 |
1,037 |
||||||||||||
Increase in cash surrender value of BOLI |
395 |
389 |
397 |
394 |
377 |
||||||||||||
Net gains on OREO |
1 |
3 |
53 |
267 |
90 |
||||||||||||
Net gain (loss) on branch divestiture |
— |
— |
7,948 |
(119) |
— |
||||||||||||
Other |
647 |
1,247 |
1,020 |
791 |
721 |
||||||||||||
Total noninterest income |
18,751 |
30,569 |
19,655 |
12,811 |
15,125 |
||||||||||||
Noninterest expense: |
|||||||||||||||||
Salaries and employee benefits |
26,324 |
26,622 |
23,997 |
24,822 |
25,286 |
||||||||||||
Occupancy and equipment, net |
6,715 |
6,846 |
6,497 |
6,571 |
6,472 |
||||||||||||
Communication and transportation |
1,353 |
1,289 |
1,198 |
1,017 |
1,071 |
||||||||||||
Marketing and development |
1,018 |
833 |
1,223 |
1,420 |
1,278 |
||||||||||||
FDIC insurance expense |
299 |
— |
— |
— |
295 |
||||||||||||
Bank franchise tax expense |
914 |
2,506 |
927 |
935 |
935 |
||||||||||||
Data processing |
2,753 |
2,539 |
2,532 |
2,344 |
2,217 |
||||||||||||
Interchange related expense |
1,173 |
1,076 |
1,115 |
1,138 |
1,302 |
||||||||||||
Supplies |
539 |
452 |
335 |
292 |
582 |
||||||||||||
OREO expense |
21 |
18 |
2 |
130 |
148 |
||||||||||||
Legal and professional fees |
1,025 |
1,237 |
601 |
1,026 |
844 |
||||||||||||
Other |
2,691 |
3,551 |
2,408 |
2,716 |
2,998 |
||||||||||||
Total noninterest expense |
44,825 |
46,969 |
40,835 |
42,411 |
43,428 |
||||||||||||
Income before income tax expense |
19,597 |
33,578 |
32,301 |
22,733 |
21,183 |
||||||||||||
Income tax expense |
3,793 |
6,881 |
6,533 |
4,325 |
3,176 |
||||||||||||
Net income |
$ |
15,804 |
$ |
26,697 |
$ |
25,768 |
$ |
18,408 |
$ |
18,007 |
|||||||
| Republic Bancorp, Inc. Financial InformationSecond Quarter 2020 Earnings Release (continued) | |||||||||||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
|||||||||||||||||||||
Selected Data and Ratios |
|||||||||||||||||||||
As of and for the Three Months Ended |
|||||||||||||||||||||
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
|||||||||||||||||
Per Share Data: |
|||||||||||||||||||||
Basic weighted average shares outstanding |
21,016 |
21,035 |
21,036 |
21,036 |
21,016 |
||||||||||||||||
Diluted weighted average shares outstanding |
21,041 |
21,094 |
21,133 |
21,137 |
21,138 |
||||||||||||||||
Period-end shares outstanding: |
|||||||||||||||||||||
Class A Common Stock |
18,708 |
18,687 |
18,737 |
18,744 |
18,740 |
||||||||||||||||
Class B Common Stock |
2,200 |
2,200 |
2,206 |
2,208 |
2,208 |
||||||||||||||||
Book value per share (5) |
$ |
38.05 |
$ |
37.54 |
$ |
36.49 |
$ |
35.54 |
$ |
34.92 |
|||||||||||
Tangible book value per share (5) |
36.93 |
36.45 |
35.41 |
34.47 |
33.87 |
||||||||||||||||
Earnings per share ("EPS"): |
|||||||||||||||||||||
Basic EPS - Class A Common Stock |
$ |
0.76 |
$ |
1.29 |
$ |
1.23 |
$ |
0.88 |
$ |
0.86 |
|||||||||||
Basic EPS - Class B Common Stock |
0.69 |
1.17 |
1.13 |
0.80 |
0.79 |
||||||||||||||||
Diluted EPS - Class A Common Stock |
0.76 |
1.28 |
1.23 |
0.88 |
0.86 |
||||||||||||||||
Diluted EPS - Class B Common Stock |
0.69 |
1.16 |
1.12 |
0.80 |
0.78 |
||||||||||||||||
Cash dividends declared per Common share: |
|||||||||||||||||||||
Class A Common Stock |
$ |
0.286 |
$ |
0.286 |
$ |
0.264 |
$ |
0.264 |
$ |
0.264 |
|||||||||||
Class B Common Stock |
0.260 |
0.260 |
0.240 |
0.240 |
0.240 |
||||||||||||||||
Performance Ratios: |
|||||||||||||||||||||
Return on average assets |
1.04 |
% |
1.90 |
% |
1.83 |
% |
1.29 |
% |
1.31 |
% |
|||||||||||
Return on average equity |
7.93 |
13.71 |
13.58 |
9.92 |
9.88 |
||||||||||||||||
Efficiency ratio (6) |
63 |
45 |
62 |
62 |
63 |
||||||||||||||||
Yield on average interest-earning assets (4) |
3.96 |
6.22 |
4.80 |
4.99 |
5.02 |
||||||||||||||||
Cost of average interest-bearing liabilities |
0.56 |
0.97 |
1.09 |
1.32 |
1.32 |
||||||||||||||||
Cost of average deposits (7) |
0.32 |
0.61 |
0.74 |
0.82 |
0.75 |
||||||||||||||||
Net interest spread (4) |
3.40 |
5.25 |
3.71 |
3.67 |
3.70 |
||||||||||||||||
Net interest margin - Total Company (4) |
3.62 |
5.57 |
4.05 |
4.07 |
4.12 |
||||||||||||||||
Net interest margin - Core Bank (1) |
3.23 |
3.65 |
3.56 |
3.56 |
3.62 |
||||||||||||||||
Other Information: |
|||||||||||||||||||||
End of period FTEs (8) - Total Company |
1,094 |
1,077 |
1,080 |
1,093 |
1,089 |
||||||||||||||||
End of period FTEs - Core Bank |
1,001 |
994 |
997 |
1,013 |
1,012 |
||||||||||||||||
Number of full-service banking centers |
42 |
42 |
41 |
45 |
45 |
||||||||||||||||
Republic Bancorp, Inc. Financial Information |
||||||||||||||||||||
Second Quarter 2020 Earnings Release (continued) |
||||||||||||||||||||
(all amounts other than per share amounts, number of employees, and number of banking centers are expressed in thousands unless otherwise noted) |
||||||||||||||||||||
Credit Quality Data and Ratios |
||||||||||||||||||||
As of and for the Three Months Ended |
||||||||||||||||||||
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
||||||||||||||||
Credit Quality Asset Balances: |
||||||||||||||||||||
Nonperforming Assets - Total Company: |
||||||||||||||||||||
Loans on nonaccrual status |
$ |
19,884 |
$ |
20,358 |
$ |
23,332 |
$ |
20,574 |
$ |
19,238 |
||||||||||
Loans past due 90-days-or-more and still on accrual |
535 |
495 |
157 |
175 |
166 |
|||||||||||||||
Total nonperforming loans |
20,419 |
20,853 |
23,489 |
20,749 |
19,404 |
|||||||||||||||
OREO |
2,194 |
85 |
113 |
119 |
1,095 |
|||||||||||||||
Total nonperforming assets |
$ |
22,613 |
$ |
20,938 |
$ |
23,602 |
$ |
20,868 |
$ |
20,499 |
||||||||||
Nonperforming Assets - Core Bank (1): |
||||||||||||||||||||
Loans on nonaccrual status |
$ |
19,884 |
$ |
20,358 |
$ |
23,332 |
$ |
20,574 |
$ |
19,238 |
||||||||||
Loans past due 90-days-or-more and still on accrual |
— |
— |
— |
- |
- |
|||||||||||||||
Total nonperforming loans |
19,884 |
20,358 |
23,332 |
20,574 |
19,238 |
|||||||||||||||
OREO |
2,194 |
85 |
113 |
119 |
1,095 |
|||||||||||||||
Total nonperforming assets |
$ |
22,078 |
$ |
20,443 |
$ |
23,445 |
$ |
20,693 |
$ |
20,333 |
||||||||||
Delinquent Loans: |
||||||||||||||||||||
Delinquent loans - Core Bank |
$ |
7,862 |
$ |
11,863 |
$ |
13,042 |
$ |
13,496 |
$ |
12,524 |
||||||||||
Delinquent loans - RPG (2) (10) |
6,184 |
30,764 |
7,762 |
6,876 |
6,802 |
|||||||||||||||
Total delinquent loans - Total Company |
$ |
14,046 |
$ |
42,627 |
$ |
20,804 |
$ |
20,372 |
$ |
19,326 |
||||||||||
Credit Quality Ratios - Total Company: |
||||||||||||||||||||
Nonperforming loans to total loans |
0.40 |
% |
0.46 |
% |
0.53 |
% |
0.44 |
% |
0.44 |
% |
||||||||||
Nonperforming assets to total loans (including OREO) |
0.45 |
0.46 |
0.53 |
0.45 |
0.47 |
|||||||||||||||
Nonperforming assets to total assets |
0.35 |
0.37 |
0.42 |
0.34 |
0.36 |
|||||||||||||||
Allowance for credit losses to total loans |
1.09 |
1.56 |
0.98 |
1.01 |
1.05 |
|||||||||||||||
Allowance for credit losses to nonperforming loans |
270 |
338 |
185 |
226 |
237 |
|||||||||||||||
Delinquent loans to total loans (9) (10) |
0.28 |
0.94 |
0.47 |
0.44 |
0.44 |
|||||||||||||||
Net charge-offs to average loans (annualized) |
1.80 |
0.19 |
0.39 |
0.68 |
1.49 |
|||||||||||||||
Credit Quality Ratios - Core Bank: |
||||||||||||||||||||
Nonperforming loans to total loans |
0.40 |
% |
0.46 |
% |
0.54 |
% |
0.45 |
% |
0.45 |
% |
||||||||||
Nonperforming assets to total loans (including OREO) |
0.44 |
0.47 |
0.54 |
0.45 |
0.47 |
|||||||||||||||
Nonperforming assets to total assets |
0.36 |
0.38 |
0.43 |
0.35 |
0.37 |
|||||||||||||||
Allowance for credit losses to total loans |
0.92 |
0.97 |
0.70 |
0.73 |
0.77 |
|||||||||||||||
Allowance for credit losses to nonperforming loans |
230 |
210 |
129 |
163 |
171 |
|||||||||||||||
Delinquent loans to total loans |
0.16 |
0.27 |
0.30 |
0.30 |
0.29 |
|||||||||||||||
Net (recoveries) charge-offs to average loans (annualized) |
0.04 |
(0.03) |
0.19 |
0.15 |
0.04 |
|||||||||||||||
Republic Bancorp, Inc. Financial Information Second Quarter 2020 Earnings Release (continued)
Segment Data:
Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar.
As of June 30, 2020, the Company was divided into five reportable segments: Traditional Banking, Warehouse Lending (“Warehouse”), Mortgage Banking, Tax Refund Solutions (“TRS”), and Republic Credit Solutions (“RCS”). Management considers the first three segments to collectively constitute “Core Bank” or “Core Bankingoperations, while the last two segments collectively constitute Republic Processing Group (“RPG”) operations. MemoryBank®, the Company’s national branchless banking platform is part of the Traditional Banking segment.
The nature of segment operations and the primary drivers of net revenues by reportable segment are provided below:
Reportable Segment: |
Nature of Operations: |
Primary Drivers of Net Revenue: |
||
Core Banking: |
||||
Traditional Banking |
Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its digital delivery channels. |
Loans, investments, and deposits. |
||
Warehouse Lending |
Provides short-term, revolving credit facilities to mortgage bankers across the United States. |
Mortgage warehouse lines of credit. |
||
Mortgage Banking |
Primarily originates, sells and services long-term, single-family, first-lien residential real estate loans primarily to clients in the Bank's market footprint. |
Loan sales and servicing. |
||
Republic Processing Group: |
||||
Tax Refund Solutions |
TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. |
Loans, refund transfers, and prepaid cards. |
||
Republic Credit Solutions |
Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. |
Unsecured, consumer loans. |
The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2019 Annual Report on Form 10-K. Republic evaluates segment performance using operating income. The Company allocates goodwill to the Traditional Banking segment. Republic generally allocates income taxes based on income before income tax expense unless reasonable and specific segment allocations can be made. The Company makes transactions among reportable segments at carrying value.
Republic Bancorp, Inc. Financial Information |
||||||||||||||||||||||||||||||
Second Quarter 2020 Earnings Release (continued) |
||||||||||||||||||||||||||||||
Segment information for the three and six months ended June 30, 2020 and 2019 follows: |
||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 |
||||||||||||||||||||||||||||||
Core Banking |
Republic Processing Group ("RPG") |
|||||||||||||||||||||||||||||
Total |
Tax |
Republic |
||||||||||||||||||||||||||||
Traditional |
Warehouse |
Mortgage |
Core |
Refund |
Credit |
Total |
Total |
|||||||||||||||||||||||
(dollars in thousands) |
Banking |
Lending |
Banking |
Banking |
Solutions |
Solutions |
RPG |
Company |
||||||||||||||||||||||
Net interest income |
$ |
39,035 |
$ |
6,063 |
$ |
419 |
$ |
45,517 |
$ |
1,081 |
$ |
5,607 |
$ |
6,688 |
$ |
52,205 |
||||||||||||||
Provision for expected credit loss expense |
3,080 |
449 |
— |
3,529 |
4,448 |
(1,443) |
3,005 |
6,534 |
||||||||||||||||||||||
Net refund transfer fees |
— |
— |
— |
— |
2,913 |
— |
2,913 |
2,913 |
||||||||||||||||||||||
Mortgage banking income |
— |
— |
8,398 |
8,398 |
— |
— |
— |
8,398 |
||||||||||||||||||||||
Program fees |
— |
— |
— |
— |
618 |
520 |
1,138 |
1,138 |
||||||||||||||||||||||
Other noninterest income |
6,126 |
17 |
8 |
6,151 |
151 |
— |
151 |
6,302 |
||||||||||||||||||||||
Total noninterest income |
6,126 |
17 |
8,406 |
14,549 |
3,682 |
520 |
4,202 |
18,751 |
||||||||||||||||||||||
Total noninterest expense |
36,688 |
811 |
2,689 |
40,188 |
3,734 |
903 |
4,637 |
44,825 |
||||||||||||||||||||||
Income before income tax expense |
5,393 |
4,820 |
6,136 |
16,349 |
(3,419) |
6,667 |
3,248 |
19,597 |
||||||||||||||||||||||
Income tax expense |
729 |
1,085 |
1,288 |
3,102 |
(853) |
1,544 |
691 |
3,793 |
||||||||||||||||||||||
Net income |
$ |
4,664 |
$ |
3,735 |
$ |
4,848 |
$ |
13,247 |
$ |
(2,566) |
$ |
5,123 |
$ |
2,557 |
$ |
15,804 |
||||||||||||||
Period-end assets |
$ |
4,967,759 |
$ |
1,028,400 |
$ |
54,518 |
$ |
6,050,677 |
$ |
306,583 |
$ |
103,315 |
$ |
409,898 |
$ |
6,460,575 |
||||||||||||||
Net interest margin |
3.26 |
% |
3.01 |
% |
NM |
3.23 |
% |
NM |
NM |
NM |
3.62 |
% |
||||||||||||||||||
Net-revenue concentration* |
63 |
% |
9 |
% |
12 |
% |
84 |
% |
7 |
% |
9 |
% |
16 |
% |
100 |
% |
||||||||||||||
Three Months Ended June 30, 2019 |
||||||||||||||||||||||||||||||
Core Banking |
Republic Processing Group ("RPG") |
|||||||||||||||||||||||||||||
Total |
Tax |
Republic |
||||||||||||||||||||||||||||
Traditional |
Warehouse |
Mortgage |
Core |
Refund |
Credit |
Total |
Total |
|||||||||||||||||||||||
(dollars in thousands) |
Banking |
Lending |
Banking |
Banking |
Solutions |
Solutions |
RPG |
Company |
||||||||||||||||||||||
Net interest income |
$ |
41,877 |
$ |
3,957 |
$ |
170 |
$ |
46,004 |
$ |
710 |
$ |
7,232 |
$ |
7,942 |
$ |
53,946 |
||||||||||||||
Provision for expected credit loss expense |
1,427 |
417 |
— |
1,844 |
392 |
2,224 |
2,616 |
4,460 |
||||||||||||||||||||||
Net refund transfer fees |
— |
— |
— |
— |
3,629 |
— |
3,629 |
3,629 |
||||||||||||||||||||||
Mortgage banking income |
— |
— |
2,416 |
2,416 |
— |
— |
— |
2,416 |
||||||||||||||||||||||
Program fees |
— |
— |
— |
— |
50 |
987 |
1,037 |
1,037 |
||||||||||||||||||||||
Other noninterest income |
7,853 |
13 |
56 |
7,922 |
89 |
32 |
121 |
8,043 |
||||||||||||||||||||||
Total noninterest income |
7,853 |
13 |
2,472 |
10,338 |
3,768 |
1,019 |
4,787 |
15,125 |
||||||||||||||||||||||
Total noninterest expense |
37,764 |
792 |
1,354 |
39,910 |
2,849 |
669 |
3,518 |
43,428 |
||||||||||||||||||||||
Income before income tax expense |
10,539 |
2,761 |
1,288 |
14,588 |
1,237 |
5,358 |
6,595 |
21,183 |
||||||||||||||||||||||
Income tax expense |
744 |
621 |
270 |
1,635 |
288 |
1,253 |
1,541 |
3,176 |
||||||||||||||||||||||
Net income |
$ |
9,795 |
$ |
2,140 |
$ |
1,018 |
$ |
12,953 |
$ |
949 |
$ |
4,105 |
$ |
5,054 |
$ |
18,007 |
||||||||||||||
Period-end assets |
$ |
4,805,449 |
$ |
738,300 |
$ |
20,568 |
$ |
5,564,317 |
$ |
36,834 |
$ |
121,983 |
$ |
158,817 |
$ |
5,723,134 |
||||||||||||||
Net interest margin |
3.75 |
% |
2.49 |
% |
NM |
3.62 |
% |
NM |
NM |
NM |
4.12 |
% |
||||||||||||||||||
Net-revenue concentration* |
72 |
% |
6 |
% |
4 |
% |
82 |
% |
6 |
% |
12 |
% |
18 |
% |
100 |
% |
||||||||||||||
*Net revenues represent total net interest income plus noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue.
Six Months Ended June 30, 2020 |
|||||||||||||||||||||||||||||
Core Banking |
Republic Processing Group ("RPG") |
||||||||||||||||||||||||||||
Total |
Tax |
Republic |
|||||||||||||||||||||||||||
Traditional |
Warehouse |
Mortgage |
Core |
Refund |
Credit |
Total |
Total |
||||||||||||||||||||||
(dollars in thousands) |
Banking |
Lending |
Banking |
Banking |
Solutions |
Solutions |
RPG |
Company |
|||||||||||||||||||||
Net interest income |
$ |
79,656 |
$ |
10,370 |
$ |
632 |
$ |
90,658 |
$ |
21,606 |
$ |
12,679 |
$ |
34,285 |
$ |
124,943 |
|||||||||||||
Provision for expected credit loss expense |
8,669 |
781 |
— |
9,450 |
19,581 |
263 |
19,844 |
29,294 |
|||||||||||||||||||||
Net refund transfer fees |
— |
— |
— |
— |
18,736 |
— |
18,736 |
18,736 |
|||||||||||||||||||||
Mortgage banking income |
— |
— |
13,193 |
13,193 |
— |
— |
— |
13,193 |
|||||||||||||||||||||
Program fees |
— |
— |
— |
— |
930 |
2,832 |
3,762 |
3,762 |
|||||||||||||||||||||
Other noninterest income |
13,361 |
28 |
32 |
13,421 |
208 |
— |
208 |
13,629 |
|||||||||||||||||||||
Total noninterest income |
13,361 |
28 |
13,225 |
26,614 |
19,874 |
2,832 |
22,706 |
49,320 |
|||||||||||||||||||||
Total noninterest expense |
73,335 |
1,614 |
4,685 |
79,634 |
10,363 |
1,797 |
12,160 |
91,794 |
|||||||||||||||||||||
Income before income tax expense |
11,013 |
8,003 |
9,172 |
28,188 |
11,536 |
13,451 |
24,987 |
53,175 |
|||||||||||||||||||||
Income tax expense |
1,189 |
1,801 |
1,926 |
4,916 |
2,644 |
3,114 |
5,758 |
10,674 |
|||||||||||||||||||||
Net income |
$ |
9,824 |
$ |
6,202 |
$ |
7,246 |
$ |
23,272 |
$ |
8,892 |
$ |
10,337 |
$ |
19,229 |
$ |
42,501 |
|||||||||||||
Period-end assets |
$ |
4,967,759 |
$ |
1,028,400 |
$ |
54,518 |
$ |
6,050,677 |
$ |
306,583 |
$ |
103,315 |
$ |
409,898 |
$ |
6,460,575 |
|||||||||||||
Net interest margin |
3.52 |
% |
2.86 |
% |
NM |
3.43 |
% |
NM |
NM |
NM |
4.55 |
% |
|||||||||||||||||
Net-revenue concentration* |
53 |
% |
6 |
% |
8 |
% |
67 |
% |
24 |
% |
9 |
% |
33 |
% |
100 |
% |
|||||||||||||
Six Months Ended June 30, 2019 |
|||||||||||||||||||||||||||||
Core Banking |
Republic Processing Group ("RPG") |
||||||||||||||||||||||||||||
Total |
Tax |
Republic |
|||||||||||||||||||||||||||
Traditional |
Warehouse |
Mortgage |
Core |
Refund |
Credit |
Total |
Total |
||||||||||||||||||||||
(dollars in thousands) |
Banking |
Lending |
Banking |
Banking |
Solutions |
Solutions |
RPG |
Company |
|||||||||||||||||||||
Net interest income |
$ |
83,224 |
$ |
6,852 |
$ |
272 |
$ |
90,348 |
$ |
21,148 |
$ |
14,749 |
$ |
35,897 |
$ |
126,245 |
|||||||||||||
Provision for expected credit loss expense |
1,616 |
642 |
— |
2,258 |
13,826 |
5,607 |
19,433 |
21,691 |
|||||||||||||||||||||
Net refund transfer fees |
— |
— |
— |
— |
20,729 |
— |
20,729 |
20,729 |
|||||||||||||||||||||
Mortgage banking income |
— |
— |
3,955 |
3,955 |
— |
— |
— |
3,955 |
|||||||||||||||||||||
Program fees |
— |
— |
— |
— |
196 |
1,915 |
2,111 |
2,111 |
|||||||||||||||||||||
Other noninterest income |
14,749 |
23 |
96 |
14,868 |
220 |
659 |
879 |
15,747 |
|||||||||||||||||||||
Total noninterest income |
14,749 |
23 |
4,051 |
18,823 |
21,145 |
2,574 |
23,719 |
42,542 |
|||||||||||||||||||||
Total noninterest expense |
73,314 |
1,550 |
2,674 |
77,538 |
9,963 |
1,436 |
11,399 |
88,937 |
|||||||||||||||||||||
Income before income tax expense |
23,043 |
4,683 |
1,649 |
29,375 |
18,504 |
10,280 |
28,784 |
58,159 |
|||||||||||||||||||||
Income tax expense |
2,509 |
1,054 |
346 |
3,909 |
4,318 |
2,409 |
6,727 |
10,636 |
|||||||||||||||||||||
Net income |
$ |
20,534 |
$ |
3,629 |
$ |
1,303 |
$ |
25,466 |
$ |
14,186 |
$ |
7,871 |
$ |
22,057 |
$ |
47,523 |
|||||||||||||
Period-end assets |
$ |
4,805,449 |
$ |
738,300 |
$ |
20,568 |
$ |
5,564,317 |
$ |
36,834 |
$ |
121,983 |
$ |
158,817 |
$ |
5,723,134 |
|||||||||||||
Net interest margin |
3.81 |
% |
2.63 |
% |
NM |
3.69 |
% |
NM |
NM |
NM |
4.88 |
% |
|||||||||||||||||
Net-revenue concentration* |
58 |
% |
4 |
% |
3 |
% |
65 |
% |
25 |
% |
10 |
% |
35 |
% |
100 |
% |
|||||||||||||
*Net revenues represent total net interest income plus noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue.
Republic Bancorp, Inc. Financial Information |
|
Second Quarter 2020 Earnings Release (continued) |
|
(1) |
“Core Bank” or “Core Banking” operations consist of the Traditional Banking, Warehouse Lending, and Mortgage Banking segments. |
(2) |
Republic Processing Group operations consist of the Tax Refund Solutions and Republic Credit Solutions segments. |
(3) |
Effective January 1, 2020, the Company adopted Accounting Standards Codification (“ASC”) 326 Financial Instruments – Credit Losses, which replaces the pre-January 1, 2020 “probable-incurred” method for calculating the Company’s Allowance for Credit Losses (“ACL”) with the current expected credit loss (“CECL”) method. CECL is applicable to financial assets measured at amortized cost, including loan and lease receivables and held-to-maturity debt securities. CECL also applies to certain off-balance sheet credit exposures. In addition to CECL, ASC 326 made changes to the accounting for Available-for-Sale (“AFS”) debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on AFS debt securities that the Company does not intend or will likely not be compelled to sell. |
When measuring an ACL, CECL primarily differs from the probable-incurred method by: a) incorporating a lower “expected” threshold for loss recognition versus a higher “probable” threshold; b) requiring life-of-loan considerations; and c) requiring reasonable and supportable forecasts. The Company’s CECL method is a “static-pool” method that analyzes historical closed pools of loans over their expected lives to attain a loss rate, which is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Due to its reasonably strong correlation to the Company's historical net loan losses, the Company has chosen to use the national unemployment rate as its primary forecasting tool. |
|
In accord with the adoption of ASC 326 and CECL, the Company recorded on January 1, 2020 a $6.7 million, or 16%, increase in the ACL for its loans and leases, a $51,000 ACL for its investment debt securities, and an approximate $456,000 ACL for its off-balance sheet exposures. This adoption also reduced the Company’s retained earnings on a tax-effected basis, with no impact on 2020 earnings. The adoption date increase in ACL for the Company’s loans and leases primarily reflects additional ACL for longer duration loan portfolios, such as the Company's residential real estate and consumer loan portfolios. No additional segmentation of the Bank's loan portfolios was deemed necessary upon adoption. |
|
(4) |
The amount of loan fee income can meaningfully impact total interest income, loan yields, net interest margin, and net interest spread. The amount of loan fee income included in total interest income was $7.8 million and $8.4 million for the quarters ended June 30, 2020 and 2019. The amount of loan fee income included in total interest income was $36.2 million and $37.0 million for the six months ended June 30, 2020 and 2019. |
The amount of loan fee income included in total interest income per quarter was as follows: $7.8 million (quarter ended June 30, 2020); $28.5 million (quarter ended March 31, 2020); $8.5 million (quarter ended December 31, 2019); $9.1 million (quarter ended September 30, 2019); and $8.4 million (quarter ended June 30, 2019). |
|
Interest income for Easy Advances (“EA’s”) is composed entirely of loan fees. The loan fees disclosed above included EA fees of $19.5 million and $19.1 million for the six months ended June 30, 2020 and 2019. EA’s are only offered during the first two months of each year. |
|
(5) |
The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity in accordance with applicable regulatory requirements, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy. |
Quarterly Comparison |
||||||||||||||||||||
(dollars in thousands, except per share data) |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
|||||||||||||||
Total stockholders' equity - GAAP (a) |
$ |
795,619 |
$ |
784,046 |
$ |
764,244 |
$ |
744,447 |
$ |
731,428 |
||||||||||
Less: Goodwill |
16,300 |
16,300 |
16,300 |
16,300 |
16,300 |
|||||||||||||||
Less: Mortgage servicing rights |
6,711 |
5,994 |
5,888 |
5,483 |
5,158 |
|||||||||||||||
Less: Core deposit intangible |
377 |
423 |
469 |
516 |
562 |
|||||||||||||||
Tangible stockholders' equity - Non-GAAP (c) |
$ |
772,231 |
$ |
761,329 |
$ |
741,587 |
$ |
722,148 |
$ |
709,408 |
||||||||||
Total assets - GAAP (b) |
$ |
6,460,575 |
$ |
5,722,033 |
$ |
5,620,319 |
$ |
6,103,647 |
$ |
5,723,134 |
||||||||||
Less: Goodwill |
16,300 |
16,300 |
16,300 |
16,300 |
16,300 |
|||||||||||||||
Less: Mortgage servicing rights |
6,711 |
5,994 |
5,888 |
5,483 |
5,158 |
|||||||||||||||
Less: Core deposit intangible |
377 |
423 |
469 |
516 |
562 |
|||||||||||||||
Tangible assets - Non-GAAP (d) |
$ |
6,437,187 |
$ |
5,699,316 |
$ |
5,597,662 |
$ |
6,081,348 |
$ |
5,701,114 |
||||||||||
Total stockholders' equity to total assets - GAAP (a/b) |
12.31 |
% |
13.70 |
% |
13.60 |
% |
12.20 |
% |
12.78 |
% |
||||||||||
Tangible stockholders' equity to tangible assets - Non-GAAP (c/d) |
12.00 |
% |
13.36 |
% |
13.25 |
% |
11.87 |
% |
12.44 |
% |
||||||||||
Number of shares outstanding (e) |
20,908 |
20,887 |
20,943 |
20,948 |
20,948 |
|||||||||||||||
Book value per share - GAAP (a/e) |
$ |
38.05 |
$ |
37.54 |
$ |
36.49 |
$ |
35.54 |
$ |
34.92 |
||||||||||
Tangible book value per share - Non-GAAP (c/e) |
36.93 |
36.45 |
35.41 |
34.47 |
33.87 |
|||||||||||||||
(6) |
The efficiency ratio, a non-GAAP measure with no GAAP comparable, equals total noninterest expense divided by the sum of net interest income and noninterest income. The ratio excludes net gains (losses) on sales, calls, and impairment of investment securities and the Company’s net gain from its November 2019 branch divestiture. |
Three Months Ended Jun. 30, |
Six Months Ended Jun. 30, |
|||||||||||||
(dollars in thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||
Net interest income |
$ |
52,205 |
$ |
53,946 |
$ |
124,943 |
$ |
126,245 |
||||||
Noninterest income |
18,751 |
15,125 |
49,320 |
42,542 |
||||||||||
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities |
16 |
33 |
16 |
33 |
||||||||||
Total adjusted revenue - Non-GAAP (a) |
$ |
70,956 |
$ |
69,071 |
$ |
174,247 |
$ |
168,754 |
||||||
Noninterest expense (b) |
$ |
44,825 |
$ |
43,428 |
$ |
91,794 |
$ |
88,937 |
||||||
Efficiency Ratio - Non-GAAP (b/a) |
63 |
% |
63 |
% |
53 |
% |
53 |
% |
||||||
Three Months Ended |
||||||||||||||||
(dollars in thousands) |
Jun. 30, 2020 |
Mar. 31, 2020* |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
|||||||||||
Net interest income |
$ |
52,205 |
$ |
72,738 |
$ |
54,395 |
$ |
55,486 |
$ |
53,946 |
||||||
Noninterest income |
18,751 |
30,569 |
19,655 |
12,811 |
15,125 |
|||||||||||
Less: Net gain on branch divestiture |
— |
— |
7,948 |
(119) |
— |
|||||||||||
Less: Net gain (loss) on sales, calls, and impairment of debt and equity securities |
16 |
40 |
(12) |
19 |
33 |
|||||||||||
Total adjusted revenue - Non-GAAP (a) |
$ |
70,940 |
$ |
103,267 |
$ |
66,114 |
$ |
68,397 |
$ |
69,038 |
||||||
Noninterest expense (b) |
$ |
44,825 |
$ |
46,969 |
$ |
40,835 |
$ |
42,411 |
$ |
43,428 |
||||||
Efficiency Ratio - Non-GAAP (b/a) |
63 |
% |
45 |
% |
62 |
% |
62 |
% |
63 |
% |
||||||
*The Company’s efficiency ratio for the first quarter of each year traditionally benefits from seasonal revenues from its TRS segment.
(7) |
The cost of average deposits ratio equals annualized total interest expense on deposits divided by total average interest-bearing deposits plus total average noninterest-bearing deposits. |
(8) |
FTEs – Full-time-equivalent employees. |
(9) |
The delinquent loans to total loans ratio equals loans 30-days-or-more past due divided by total loans. Depending on loan class, loan delinquency is determined by the number of days or the number of payments past due. |
(10) |
Delinquent loans for the RPG segment included $23 million of EA’s at March 31, 2020. EA’s are only offered during the first two months of each year. EA’s do not have a contractual due date but are eligible for delinquency consideration three weeks after the taxpayer-customer’s tax return is submitted to the applicable tax authority. All unpaid EA’s are charged-off by the end of the second quarter of each year. |
NM – Not meaningful
NA – Not applicable
View source version on businesswire.com: https://www.businesswire.com/news/home/20200717005041/en/
Kevin Sipes Executive Vice President & Chief Financial Officer (502) 560-8628
Source: Republic Bancorp, Inc.