Republic Bancorp, Inc. Reports $25.2 Million Net Income for Q2 2024
Republic Bancorp, Inc. (“Republic” or the “Company”) announced a net income of $25.2 million for the second quarter of 2024, translating to Diluted Earnings per Class A Common Share (“Diluted EPS”) of $1.30. This marks a 20% increase in net income and a 22% rise in EPS compared to the same period in 2023.
Logan Pichel, President and CEO of Republic Bank & Trust Company, expressed satisfaction with the Company’s performance, attributing it to their commitment to excellent client service, a successful diversified business model, and prudent risk and expense management. “We are particularly proud of achieving an impressive Net Promoter Score (NPS) of 67.2, well above the industry average of 23.9,” Pichel noted. “This score highlights our dedication to delivering outstanding customer experiences.”
Key achievements for Q2 2024 include:
- Core Asset Quality: Maintained excellent asset quality with net charge-offs to average loans at just 0.02% and nonperforming loans to total loans at 0.39% as of June 30, 2024.
- Mortgage Loan Sale: Sold $67 million in lower-yielding mortgage loans, with proceeds reinvested into higher-yielding loan opportunities.
- Traditional Bank Loan Growth: The Traditional Bank loan portfolio grew by $16 million. New loan production slowed due to disciplined pricing, which is expected to impact short-term growth.
- Borrowing Strategy: Borrowed $100 million from the Federal Home Loan Bank (FHLB) for five years at an annualized cost of 4.42%, compared to 5.55% for overnight borrowings.
- Republic Processing Group (RPG): Continued positive performance, with a 14% increase in net income year-over-year, despite a slight decline in Republic Payment Solutions (RPS) revenue.
Looking ahead, Republic plans to focus on achieving moderate deposit growth while leveraging its superior customer service, competitive products, and robust digital capabilities to expand its customer base and drive long-term value.
Financial Performance Highlights:
- Income Before Income Tax Expense: Increased by 21% to $32.1 million for Q2 2024.
- Net Income: Rose by 20% to $25.2 million.
- Diluted EPS: Increased by 22% to $1.30.
- Return on Average Assets (ROA): Improved to 1.50% from 1.37%.
- Return on Average Equity (ROE): Enhanced to 10.57% from 9.41%.
Core Bank Performance:
- Net Income: Increased by 24% to $15.0 million.
- Net Interest Income: Rose by 3% to $52.8 million.
- Net Interest Margin (NIM): Decreased from 3.65% to 3.46% due to shifts in funding mix and increased cost of interest-bearing liabilities.
Additional Notes:
- Average outstanding warehouse balances decreased slightly, while usage rates increased.
- Average Traditional Bank loans grew with higher yields.
- Increased interest-earning cash balances reflect a strategic response to economic uncertainty.
- Investment portfolio maintained a short duration to manage interest rate risk.
For more details, including segment-level data, please refer to the financial supplement attached to this release or Exhibit 99.2 of the Company’s Form 8-K filed with the SEC on July 19, 2024.
