U.S. Markets closed
  • S&P 500

    3,298.46
    +51.87 (+1.60%)
     
  • Nasdaq

    10,913.56
    +241.26 (+2.26%)
     
  • Russell 2000

    1,474.91
    +23.09 (+1.59%)
     
  • Crude Oil

    40.04
    -0.27 (-0.67%)
     
  • Gold

    1,864.30
    -12.60 (-0.67%)
     
  • Silver

    22.99
    -0.21 (-0.91%)
     
  • EUR/USD

    1.1639
    -0.0037 (-0.3142%)
     
  • 10-Yr Bond

    0.6590
    -0.0070 (-1.05%)
     
  • Vix

    26.38
    -2.13 (-7.47%)
     
  • GBP/USD

    1.2744
    -0.0007 (-0.0586%)
     
  • BTC-USD

    10,716.05
    +19.06 (+0.18%)
     
  • CMC Crypto 200

    230.19
    +12.36 (+5.67%)
     
  • FTSE 100

    5,842.67
    +19.89 (+0.34%)
     
  • Nikkei 225

    23,204.62
    +116.82 (+0.51%)
     

Republic Bancorp, Inc.’s Third Quarter Net Income from Continuing Operations Increases 7%

LOUISVILLE, Ky.--(BUSINESS WIRE)--

Republic Bancorp, Inc. (RBCAA), headquartered in Louisville, Kentucky, is the holding company of Republic Bank & Trust Company (the “Bank”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191018005007/en/

Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report third quarter net income from continuing operations of $17.5 million, a 7% increase over the third quarter of 2018, resulting in Diluted Earnings per Class A Common Share (“Diluted EPS”) from continuing operations of $0.83. Year-to-date net income from continuing operations was $63.0 million, which is a 10% increase from the same period in 2018. The Company’s return on average assets (“ROA”) and return on average equity (“ROE”) was 1.58% and 12.11% for the first nine months of 2019.

Steve Trager, Chairman & CEO of Republic commented, “With $2.8 million of primarily nonrecurring tax benefits recorded during the third quarter of 2018 reducing comparability of our quarterly and year-to-date net income metrics, we have benchmarked our 2019 results using pre-tax net income. In addition, the July 2019 sale announcement by the Company of four banking centers created a discontinued operations reporting requirement for these units. As a result, we view our pre-tax net income from continuing operations to be more reflective of our true operating performance for the third quarters and nine months ended September 30, 2019 and 2018.

“As it relates to our pre-tax net income from continuing operations, we are excited about these results. Overall pre-tax net income from continuing operations increased to $21.7 million for the third quarter of 2019, an increase of 20% over the third quarter of 2018. Healthy growth in net interest income, a strong increase in mortgage banking income, and a positive reduction in provision for loan losses within the Republic Processing Group drove the overall results for the quarter,” concluded Steve Trager.

The following table highlights Republic’s financial performance for the third quarters and nine months ended September 30, 2019 and 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company Financial Performance Highlights

 

 

 

Three Months Ended Sep. 30,

 

 

 

 

Nine Months Ended Sep. 30,

 

 

 

(dollars in thousands, except per share data)

 

 

2019

 

2018

 

$ Change

 

% Change

 

 

2019

 

2018

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Tax Expense*:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

 

$

21,660

 

 

$

18,037

 

 

$

3,623

 

20

%

 

 

$

77,543

 

 

$

70,593

 

 

$

6,950

 

10

%

 

Discontinued Operations

 

 

 

1,073

 

 

 

1,172

 

 

 

(99)

 

(8)

 

 

 

 

3,349

 

 

 

3,342

 

 

 

7

 

 

 

Total Income Before Income Tax Expense

 

 

$

22,733

 

 

$

19,209

 

 

$

3,524

 

18

 

 

 

$

80,892

 

 

$

73,935

 

 

$

6,957

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income*:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

 

$

17,457

 

 

$

16,322

 

 

$

1,135

 

7

%

 

 

$

63,030

 

 

$

57,537

 

 

$

5,493

 

10

%

 

Discontinued Operations

 

 

 

951

 

 

 

1,089

 

 

 

(138)

 

(13)

 

 

 

 

2,901

 

 

 

3,009

 

 

 

(108)

 

(4)

 

 

Total Net Income

 

 

$

18,408

 

 

$

17,411

 

 

$

997

 

6

 

 

 

$

65,931

 

 

$

60,546

 

 

$

5,385

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS**:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

 

$

0.83

 

 

$

0.78

 

 

$

0.05

 

6

%

 

 

$

3.01

 

 

$

2.76

 

 

$

0.25

 

9

%

 

Discontinued Operations

 

 

 

0.05

 

 

 

0.05

 

 

 

0.00

 

 

 

 

 

0.14

 

 

 

0.14

 

 

 

(0.00)

 

 

 

Diluted EPS

 

 

$

0.88

 

 

$

0.83

 

 

$

0.05

 

6

 

 

 

$

3.15

 

 

$

2.90

 

 

$

0.25

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

 

 

1.29

%

 

 

1.37

%

 

 

NA

 

(6)

%

 

 

 

1.58

%

 

 

1.57

%

 

 

NA

 

1

%

 

Return on Average Equity

 

 

 

9.92

 

 

 

10.31

 

 

 

NA

 

(4)

 

 

 

 

12.11

 

 

 

12.23

 

 

 

NA

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA – Not applicable

*See segment-level data below

**Diluted EPS = Diluted Earnings per Class A Common Share

Results of Operations for the Third Quarter of 2019 Compared to the Third Quarter of 2018

The following tables present segment-level pre-tax and after-tax net income results for the third quarters and nine months ended September 30, 2019 and 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX EXPENSE

(dollars in thousands)

 

 

Three Months Ended Sep. 30,

 

 

 

 

Nine Months Ended Sep. 30,

 

 

 

Reportable Segment

 

 

2019

 

2018

 

$ Change

 

% Change

 

 

2019

 

2018

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional Banking

 

 

$

12,471

 

$

11,804

 

$

667

 

6

%

 

 

$

33,238

 

$

31,628

 

$

1,610

 

5

%

 

Warehouse Lending

 

 

 

2,744

 

 

3,774

 

 

(1,030)

 

(27)

 

 

 

 

7,427

 

 

9,588

 

 

(2,161)

 

(23)

 

 

Mortgage Banking

 

 

 

1,705

 

 

546

 

 

1,159

 

212

 

 

 

 

3,354

 

 

764

 

 

2,590

 

339

 

 

Core Banking from Continuing Operations

 

 

 

16,920

 

 

16,124

 

 

796

 

5

 

 

 

 

44,019

 

 

41,980

 

 

2,039

 

5

 

 

Tax Refund Solutions

 

 

 

(281)

 

 

(1,251)

 

 

970

 

78

 

 

 

 

18,223

 

 

17,662

 

 

561

 

3

 

 

Republic Credit Solutions

 

 

 

5,021

 

 

3,164

 

 

1,857

 

59

 

 

 

 

15,301

 

 

10,951

 

 

4,350

 

40

 

 

Republic Processing Group from Continuing Operations

 

 

 

4,740

 

 

1,913

 

 

2,827

 

148

 

 

 

 

33,524

 

 

28,613

 

 

4,911

 

17

 

 

Total Company from Continuing Operations

 

 

 

21,660

 

 

18,037

 

 

3,623

 

20

 

 

 

 

77,543

 

 

70,593

 

 

6,950

 

10

 

 

Discontinued Operations

 

 

 

1,073

 

 

1,172

 

 

(99)

 

(8)

 

 

 

 

3,349

 

 

3,342

 

 

7

 

 

 

Total Company

 

 

$

22,733

 

$

19,209

 

$

3,524

 

18

 

 

 

$

80,892

 

$

73,935

 

$

6,957

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

(dollars in thousands)

 

 

Three Months Ended Sep. 30,

 

 

 

 

Nine Months Ended Sep. 30,

 

 

 

Reportable Segment

 

 

2019

 

2018

 

$ Change

 

% Change

 

 

2019

 

2018

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional Banking

 

 

$

10,349

 

$

10,921

 

$

(572)

 

(5)

%

 

 

$

28,933

 

$

27,055

 

$

1,878

 

7

%

 

Warehouse Lending

 

 

 

2,127

 

 

2,910

 

 

(783)

 

(27)

 

 

 

 

5,756

 

 

7,395

 

 

(1,639)

 

(22)

 

 

Mortgage Banking

 

 

 

1,347

 

 

432

 

 

915

 

212

 

 

 

 

2,650

 

 

604

 

 

2,046

 

339

 

 

Core Banking from Continuing Operations

 

 

 

13,823

 

 

14,263

 

 

(440)

 

(3)

 

 

 

 

37,339

 

 

35,054

 

 

2,285

 

7

 

 

Tax Refund Solutions

 

 

 

(214)

 

 

(452)

 

 

238

 

53

 

 

 

 

13,972

 

 

13,998

 

 

(26)

 

 

 

Republic Credit Solutions

 

 

 

3,848

 

 

2,511

 

 

1,337

 

53

 

 

 

 

11,719

 

 

8,485

 

 

3,234

 

38

 

 

Republic Processing Group from Continuing Operations

 

 

 

3,634

 

 

2,059

 

 

1,575

 

76

 

 

 

 

25,691

 

 

22,483

 

 

3,208

 

14

 

 

Total Company from Continuing Operations

 

 

 

17,457

 

 

16,322

 

 

1,135

 

7

 

 

 

 

63,030

 

 

57,537

 

 

5,493

 

10

 

 

Discontinued Operations

 

 

 

951

 

 

1,089

 

 

(138)

 

(13)

 

 

 

 

2,901

 

 

3,009

 

 

(108)

 

(4)

 

 

Total Company

 

 

$

18,408

 

$

17,411

 

$

997

 

6

 

 

 

$

65,931

 

$

60,546

 

$

5,385

 

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Bank(1) – While third quarter 2019 Core Bank net income from continuing operations declined by 3% from the third quarter of 2018 due primarily to the previously mentioned tax benefits recorded during the third quarter of 2018, Core Bank pre-tax net income from continuing operations increased a solid 5% over the third quarter of 2018. Benefits from continued growth in net interest income and strong mortgage banking income, partially offset by increases in provision for loan losses (“Provision”) and noninterest expense, drove the overall increase in pre-tax net income from continuing operations.

Driven by 12% growth in average loan balances, Core Bank net interest income from continuing operations grew $2.2 million, or 5%, for the third quarter of 2019. The benefit to net interest income resulting from the strong loan growth was partially offset by compression within the Core Bank’s net interest margin.

The following tables present the overall changes in the Core Bank’s net interest income, net interest margin, as well as average and period-end loan balances by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

Net Interest Margin

 

(dollars in thousands)

 

 

Three Months Ended Sep. 30,

 

 

 

 

 

Three Months Ended Sep. 30,

 

 

 

 

Reportable Segment

 

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Traditional Banking*

 

 

$

41,334

 

$

39,083

 

$

2,251

 

 

3.77

...