Republic Bancorp, Inc. Announces 22% Increase In Third Quarter Earnings Per Share.Business Editors LOUISVILLE Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky.--(BUSINESS WIRE)--Oct. 18, 2001
Republic Bancorp, Inc. (Republic) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RBCAA), the holding company for Republic Bank & Trust Company and Republic Bank & Trust Company of Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , continued its strong performance during the third quarter of 2001 and remained on target to achieve its best earnings year in the history of the Company. Net income was $3.7 million during the quarter, a significant increase over the $3.1 million attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. during the third quarter of 2000. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings per Class A Common share rose from $0.18 per share during the third quarter of 2000 to $0.22 per share for third quarter 2001, an increase of 22%. Net income for the third quarter 2001, excluding the provision for loan losses, was up 32% over third quarter 2000 as the provision exceeded net charge-offs during the third quarter 2001 by $647,000. Management provided for this increase in the allowance for loan losses because of continued strong growth in commercial real estate lending during the quarter of $15 million, a significant slowing in the U.S. economy during the quarter and an overall change in the product mix within the loan portfolio. The rise in earnings is largely attributable to increased net interest income, deposit fee income and gains on the sale of loans into the secondary market. Net interest income increased to $14.2 million during the third quarter of 2001 compared to $12.4 million for the same period in 2000, an increase of $1.8 million, or 14%. The increase was the result of a rise in average loans outstanding and a sustained shift to lower cost deposits and advances from the Federal Home Loan Bank. Net income for the nine months ended September September: see month. 30, 2001 increased to $13.0 million compared to $9.8 million during the same period in 2000. Diluted earnings per Class A Common share increased from $0.57 during the first nine months of 2000 to $0.77, or 35%, during the same period in 2001. The same factors that led to the increase in Republic's third quarter performance were also contributing factors in its nine-month performance. Republic's book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: increased from $6.94 at September 30, 2000 to $7.57 at September 30, 2001. "This has been a great year for Republic. As a result of the efforts of many of our associates, we have been able to grow income in many areas throughout the Company, which bodes well for our future" commented Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Trager, Republic's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Management remains positive about the potential for growth in the Company's non-interest income categories, as well. Service charges on deposits were $1.6 million during the third quarter of this year, an increase of $464,000 over the third quarter of 2000. The primary contributor to this growth was the "Overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers Honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. " program, which added an additional $600,000 in fee income during the third quarter of 2001. Management believes this source of revenue will continue to grow as those newly acquired clients who responded to the "Absolutely Free Checking" promotion become eligible for the "Overdraft Honor" program. "During the first three-quarters Noun 1. three-quarters - three of four equal parts; "three-fourths of a pound" three-fourths common fraction, simple fraction - the quotient of two integers three-quarters npl → of 2001, we mobilized our staff and resources to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. consumer demand for refinancing Refinancing An extension and/or increase in amount of existing debt. of home loans," noted Trager. The "$999" product which caps closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, on secondary market loans at $999 and the guaranteed 20-day maximum closing time promotion have allowed Republic to capture a meaningful share of the recent refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. activity. As a result, gains on sale of loans for the third quarter 2001 increased $1.2 million over third quarter 2000 to $1.6 million. For the quarter Republic sold nearly $115 million of loans into the secondary market compared to $24 million during the third quarter of 2000. "We are very excited about our expansion into a new area and new lines of business, as well. Our newly chartered Indiana Bank, which began operations in May 2001, turned a profit in just its fourth month of operation. Because of the new Bank's early success, we plan to pursue further branching opportunities in southern Indiana Southern Indiana, in the United States, is notable because it is culturally distinct from the rest of the state. The area's geography has led to a blend of Northern and Southern culture that is not found in the rest of Indiana. . In July July: see month. , Republic also became a 40% owner in the Patriot Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a newly formed independent insurance agency. We believe the insurance business is a natural fit for our client base and the products offered by the Patriot Group will provide an excellent complement to the products and services currently offered by Republic," Trager continued. "Given the recent tragic events in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C., we recognize the uncertainty the future brings. Because of this uncertainty, we point to our track record of steady growth and our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. commitment to enhancing shareholder value. The market, too, has recognized these values with a 114% increase in the value of Republic stock through the first nine months of this year. We are dedicated to these philosophies and remain diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d in our efforts to profitably grow the Company for many years to come," Trager concluded. Republic Bancorp, Inc. is headquartered in Louisville with $1.5 billion in assets. Republic Bancorp has 21 Republic Bank & Trust Company banking centers in 7 Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. communities: Bowling Green Bowling Green. 1 City (1990 pop. 40,641), seat of Warren co., S Ky., on the Barren River; inc. 1812. It is a shipping and marketing center for an area producing tobacco, corn, livestock, and dairy items. , Elizabethtown Elizabethtown, city (1990 pop. 18,167), seat of Hardin co., central Ky.; inc. 1797. Originally developed as a trade center for agriculture, whiskey, and tobacco, the city now manufactures a variety of products. , Frankfort Frankfort, city (1990 pop. 25,968), state capital and seat of Franklin co., N central Ky., on both sides of the Kentucky River, in the heart of the bluegrass country; inc. 1796. , Lexington, Louisville, Owensboro, Shelbyville; Republic Bank & Trust Company of Indiana in Clarksville, Indiana Clarksville is a town in Clark County, Indiana, along the Ohio River. The population was 21,400 at the 2000 United States Census. Geography Clarksville is located at (38.311885, -85.767265)GR1. ; internet banking at www.republicbank.com; and Refunds Now, a nationwide tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. loan and check provider. Republic Bancorp, Inc. is traded on the NASDAQ (RBCAA). Statements in this press release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Republic's plans, objectives, or future performance are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based on management's current expectations. Republic's actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed in Republic's 2000 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission.
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(in thousand except per share data)
Statement of Financial Condition
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
----------- ----------- -----------
Assets
Cash and cash equivalents $ 59,226 $ 40,215 $ 24,413
Securities available for sale 223,534 171,800 181,200
Securities held to maturity 1,488 103,768 105,348
Mortgage loans held for sale 15,121 5,229 4,872
Loans 1,174,705 1,144,393 1,132,678
Allowance for loan losses (8,549) (7,862) (7,862)
FHLB stock 17,074 16,171 15,872
Other assets 31,487 34,358 34,853
----------- ----------- -----------
Total Assets $ 1,514,086 $ 1,508,072 $ 1,491,374
=========== =========== ===========
Liabilities and Equity
Non-interest bearing deposits $ 120,080 $ 107,317 $ 101,743
Interest bearing deposits 727,109 756,444 743,835
----------- ----------- -----------
Total deposits 847,189 863,761 845,578
Short-term borrowings 222,456 263,001 232,575
Other borrowed funds 297,829 246,050 281,699
Other liabilities 23,213 18,318 19,232
----------- ----------- -----------
Total liabilities 1,390,687 1,391,130 1,379,084
Stockholders' equity 123,399 116,942 112,290
----------- ----------- -----------
Total Liabilities and Equity $ 1,514,086 $ 1,508,072 $ 1,491,374
=========== =========== ===========
Average Balances
Third quarter Ended Nine months Ended
Sept. 30, Sept. 30,
---------------------- ----------------------
2001 2000 2001 2000
---- ---- ---- ----
Assets
Securities $ 282,955 $ 273,619 $ 281,471 $ 274,329
Loans, including loans
held for sale 1,189,103 1,126,124 1,181,145 1,100,406
Total earning assets 1,472,058 1,399,743 1,462,616 1,374,735
Total assets 1,523,850 1,451,190 1,513,359 1,425,785
Liabilities and Equity
Non-interest bearing
deposits $ 114,573 $ 96,820 $ 114,196 $ 101,422
Interest bearing
deposits 730,971 735,551 738,708 724,412
Short-term borrowings 242,797 248,668 247,241 234,104
Other borrowed funds 297,785 246,413 279,001 244,824
Total interest bearing
liabilities 1,271,553 1,230,632 1,264,950 1,203,340
Equity 121,478 110,742 119,629 108,040
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(continued) (in thousands except per share data)
Third quarter Ended Nine months Ended
September 30, September 30,
---------------------- ----------------------
2001 2000 2001 2000
Income Statement Data
Total interest
income (1) (2) $ 28,288 $ 29,886 $ 90,457 $ 87,684
Total interest expense 14,114 17,495 46,001 48,434
---------- ---------- ---------- ----------
Net interest income 14,174 12,391 44,456 39,250
Provision for loan
losses 569 39 2,206 1,006
Service charges
on deposit accounts 1,622 1,158 4,410 3,063
Electronic refund check
fees 13 2,075 1,064
Other service charges
and fees 378 129 1,087 272
Net gain on sale of loans 1,554 347 3,775 936
Net gain (loss) on sale
of securities 159 1,313 (161)
Other 493 400 1,392 1,199
---------- ---------- ---------- ----------
Total non-interest
income 4,219 2,034 14,052 6,373
Salaries and employee
benefits 6,401 5,010 19,444 15,637
Occupancy and equipment 2,278 2,191 6,855 6,548
Communication and
transportation 567 507 1,714 1,553
Marketing and development 622 387 1,895 1,121
Supplies 262 232 854 715
Other 2,049 1,469 6,059 4,518
---------- ---------- ---------- ----------
Total non-interest
expense 12,179 9,796 36,821 30,092
Net income before taxes 5,645 4,590 19,481 14,525
Income taxes 1,933 1,522 6,524 4,744
---------- ---------- ---------- ----------
Net income 3,712 3,068 12,957 9,781
========== ========== ========== ==========
Per Share Data
Basic average shares
outstanding 16,022 16,597 16,141 16,635
Diluted average
equivalent shares 17,082 17,485 17,135 17,554
Book value per
share (3) $ 7.57 $ 6.94 $ 7.57 $ 6.94
Basic earnings per share
Class A common 0.23 0.19 0.80 0.59
Basic earnings per share
Class B common 0.23 0.18 0.79 0.58
Diluted earnings per
share Class A common 0.22 0.18 0.77 0.57
Diluted earnings per
share Class B common 0.22 0.18 0.76 0.56
Cash dividends per share
Class A common 0.044 0.03575 0.132 0.10725
Cash dividends per share
Class B common 0.040 0.03250 0.120 0.09750
(1) The amount of fees on loans in total interest income was
approximately $680 and $536 for the quarters ended September 30,
2001 and 2000, respectively.
(2) The amount of fees on loans in total interest income was
approximately $4,841 and $3,115 for the nine months ended
September 30, 2001 and 2000, respectively.
(3) Exclusive of accumulated other comprehensive income (loss).
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(continued)
Third quarter Ended Nine months Ended
September 30, September 30,
------------------ ------------------
2001 2000 2001 2000
Performance ratios
Return on average assets 0.97% 0.85% 1.14% 0.91%
Return on average common
equity 12.22 11.08 14.44 12.07
Yield on average earning
assets 7.69 8.54 8.25 8.50
Cost of interest bearing
liabilities 4.44 5.69 4.85 5.37
Net interest spread 3.25 2.85 3.40 3.14
Net interest margin 3.85 3.54 4.05 3.81
Efficiency ratio 66 68 63 66
Asset quality ratios
Loans on non-accrual status 4,128 3,410
Loans past due 90 days or more 619 1,279
Total non-performing loans 4,747 4,689
Other real estate owned 537 234
Total non-performing assets 5,284 4,923
Non-performing loans to total loans 0.40% 0.41%
Non-performing assets to total loans 0.45 0.43
Net loan charge-offs to average loans 0.17 0.12
Allowance for loan losses to total loans 0.73 0.69
Allowance for loan losses to non-performing loans 180 168
Delinquent loans to total loans 1.41 1.59
Other key data
End-of-period full-time equivalent employees 513 465
Number of bank offices 22 22
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