Republic Bancorp, Inc. Reports Earnings of $12.9 Million for 2000 and Record Assets in Excess of $1.5 Billion.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)--Jan. 16, 2001
Republic Bancorp, Inc. (Republic) (Nasdaq: RBCAA), the holding company for Republic Bank & Trust Company, announced fourth quarter diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.19 for 2000 compared to $0.18 for the same period in 1999. Net income rose for the fourth quarter 2000 by $27,000 over the comparable 1999 period to $3.1 million while average 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. shares outstanding decreased 358,000 primarily as a result of the Company's stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program. Republic's fourth quarter 2000 performance was supported by steady increases in net interest income and service charges on deposit accounts. The increase in interest income on loans resulted primarily from the growth in the loan portfolio. The increase in service charges on deposit accounts was the direct result of the Company's continued concentrated effort to expand its core deposit base and accompanying non-interest income. "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. " and "Absolutely Free Checking", two new products designed to increase low cost deposits and non-interest income, were well received in Republic's marketplace. During the fourth quarter 2000, Republic opened over 2,400 new checking accounts with balances totaling over $4 million at December December: see month. 31, 2000. Correspondingly, service charges on deposit accounts increased by $370,000 for the fourth quarter 2000 compared to the same period in 1999. Net income for the year ended December 31, 2000 increased to $12.9 million from $12.3 million in 1999. Diluted earnings per share for the Class A Common Stock increased from $0.71 in 1999 to $0.76 in 2000. Stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. increased $13 million during 2000 to $117 million as the Company's book value per share rose from $6.46 at December 31, 1999 to $7.06 at December 31, 2000. Republic was able to achieve this performance for 2000 despite a higher and relatively unfavorable interest rate environment during the year. Republic's total assets grew to over $1.5 billion at December 31, 2000, an increase of $139 million over December 31, 1999. Loan demand was strong during 2000 with net loans increasing $105 million to $1.14 billion at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . The growth in the loan portfolio was primarily attributable to the growth in the commercial real estate portfolio, which increased $94 million from December 31, 1999. While loan growth remained strong, the Bank's level of delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. loans declined favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to 1.27% at December 31, 2000, compared to 1.29% at December 31, 1999. Funding for the growth in the loan portfolio was derived from deposits, repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. and Federal Home Loan Bank advances. Deposits and repurchase agreements increased to over $1.1 billion as of December 31, 2000 compared to $1.0 billion at year-end 1999. A significant portion of this increase was in lower cost deposits such as demand deposits and money market CD's. Republicbank.com, Republic's internet presence, accounted for $31 million of the increase in deposits. FHLB FHLB Federal Home Loan Bank advances increased from $231 million at December 31, 1999 to $246 million at December 31, 2000. Management remains positive about the success of the Company's newest banking centers while continuing to explore other profitable expansion opportunities. The Company's Springhurst location, opened in August 1999, now has over $45 million in loans and $26 million in deposits and repurchase agreements in just 17 months of operation. The new Prospect and Fern Creek banking centers, also located in the Louisville metropolitan area, continue to meet the Company's aggressive growth expectations. Republic has also applied for a bank charter in the state 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). . Management anticipates opening the new Indiana Bank in 2001 allowing Republic to provide full banking services to its 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. clients and establish many new business relationships in this area. Republic's President and Chief Executive Officer, Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Trager, commented, "We are pleased with our financial performance during 2000, particularly our growth in commercial lending. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the upcoming year, and remain firm in our belief that Republic Bancorp is an excellent 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. value, as we have demonstrated by repurchasing 440,000 of our own shares. We look forward to providing full service banking to our future and existing southern Indiana clients, and remain committed to increasing the value of our Company in 2001 and beyond." Neighborhood Banking. Republic Bank & Trust Company has 21 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 Lexington. 1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. , Louisville, Owensboro, and Shelbyville; a Loan Production office 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. ; 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; and Internet banking at www.republicbank.com. Republic Bank is headquartered in Louisville, Kentucky  “Louisville” redirects here. For other uses, see Louisville (disambiguation). , and has over $1.5 billion in assets. Republic Bancorp, Inc., Republic Bank's parent company, 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 1999 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. and subsequent 10Q reports filed with the Securities and Exchange Commission.
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(in thousands, except per share data)
Statement of Financial Condition
December 31, 2000 December 31, 1999
----------------- -----------------
Assets
Cash and cash equivalents $ 40,215 $ 67,527
Securities available for sale 171,800 181,627
Securities held to maturity 103,768 32,931
Mortgage loans held for sale 5,229 7,408
Loans, net 1,136,531 1,031,512
FHLB stock 16,171 15,054
Other assets 34,358 32,924
------------- --------------
Total Assets $ 1,508,072 $ 1,368,983
============= ==============
Liabilities and Equity
Non-interest bearing deposits $ 107,317 $ 84,256
Interest bearing deposits 756,444 716,653
------------- --------------
Total deposits 863,761 800,909
Short-term borrowings 263,001 215,718
Other borrowed funds 246,050 231,383
Other liabilities 18,318 17,203
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Total liabilities 1,391,130 1,265,213
Stockholders' equity 116,942 103,770
------------- --------------
Total Liabilities and Equity $ 1,508,072 $ 1,368,983
============= ==============
Average Balances
Fourth quarter
Ended Dec. 31, Year Ended Dec. 31,
---------------------- ----------------------
2000 1999 2000 1999
---- ---- ---- ----
Assets
Investments $ 317,136 $ 248,926 $ 285,091 $ 233,168
Loans, including loans
held for sale 1,143,968 1,027,639 1,111,356 967,751
Total earning assets 1,461,104 1,276,565 1,396,447 1,200,919
Total assets 1,515,642 1,324,601 1,448,372 1,245,088
Liabilities and Equity
Non-interest bearing
deposits $ 102,072 $ 87,782 $ 101,584 $ 87,760
Interest bearing
deposits 751,310 733,384 731,174 704,767
Short-term borrowings 271,807 169,278 243,582 129,903
Other borrowed funds 262,688 217,935 249,315 207,687
Total interest
bearing liabilities 1,285,805 1,120,597 1,224,071 1,042,357
Equity 114,786 103,596 109,734 102,969
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(continued) (in thousands, except per share data)
Fourth quarter Ended Year Ended
December 31, December 31,
-------------------- --------------------
2000 1999 2000 1999
Income Statement Data
Total interest income $ 30,975 $ 25,724 $ 118,660 $ 97,157
Total interest expense 18,417 13,491 66,851 49,552
--------- --------- --------- ---------
Net interest income 12,558 12,233 51,809 47,605
Provision for loan losses 376 329 1,382 1,806
Service charges on deposit
accounts 1,348 978 4,410 3,653
Electronic refund
check fees 6 1,070 1,238
Other service charges
and fees 170 87 442 489
Loan servicing income 85 107 363 455
Net gain on sale of loans 481 473 1,417 2,974
Net gain (loss) on sale
of securities (161) 184
Other 398 434 1,318 1,091
--------- --------- --------- ---------
Total non-interest income 2,488 2,079 8,859 10,084
Salaries and
employee benefits 4,882 5,045 20,519 20,661
Occupancy and equipment 2,277 1,869 8,825 7,632
Communication and
transportation 531 413 2,084 1,716
Marketing and development 434 267 1,555 1,266
Supplies 279 222 994 940
Other 1,535 1,421 6,052 5,168
--------- --------- --------- ---------
Total non-interest expense 9,938 9,237 40,029 37,383
Net income before taxes 4,732 4,746 19,257 18,500
Income taxes 1,592 1,633 6,336 6,248
--------- --------- --------- ---------
Net income $ 3,140 $ 3,113 $ 12,921 $ 12,252
========= ========= ========= =========
Per Share Data
Basic average shares
outstanding 16,578 16,675 16,621 16,769
Diluted average
equivalent shares 17,338 17,696 17,502 17,900
Book value per share (1) $ 7.06 $ 6.46 $ 7.06 $ 6.46
Basic earnings per share
Class A common 0.19 0.19 0.78 0.73
Basic earnings per share
Class B common 0.19 0.18 0.77 0.72
Diluted earnings per share
Class A common 0.19 0.18 0.76 0.71
Diluted earnings per share
Class B common 0.18 0.18 0.75 0.69
Cash dividends per share
Class A common 0.044 0.03575 0.15125 0.11825
Cash dividends per share
Class B common 0.040 0.03250 0.13750 0.10750
(1) Exclusive of accumulated other comprehensive income (loss).
REPUBLIC BANCORP, INC.
CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS (unaudited)
(continued)
Fourth quarter Ended Year Ended
December 31, December 31,
----------------- -----------------
2000 1999 2000 1999
Performance ratios
Return on average assets 0.83% 0.94% 0.89% 0.98%
Return on average
common equity 10.94 12.02 11.77 11.90
Yield on average earning
assets 8.48 8.06 8.50 8.09
Cost of interest bearing
liabilities 5.73 4.82 5.46 4.75
Net interest spread 2.75 3.24 3.04 3.34
Net interest margin 3.44 3.83 3.71 3.96
Efficiency ratio 66 65 66 65
Asset quality ratios
Non-performing assets
to total loans 0.47% 0.36% 0.47% 0.36%
Net loan charge-offs
to average loans 0.13 0.13 0.12 0.19
Allowance for loan losses
to total loans 0.69 0.76 0.69 0.76
Allowance for loan losses
to non-performing loans 160 213 160 213
Delinquent loans
to total loans 1.27 1.29 1.27 1.29
Other key data
Number of bank offices (2) 22 21
Number of ATMs 36 28
End-of-period full-time
equivalent employees 462 467
(2) Includes a loan production office in Clarksville, Indiana.
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