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REPUBLIC BANCORP INC. REPORTS RECORD EARNINGS

 ANN ARBOR, Mich., Oct. 12 /PRNewswire/ -- Republic Bancorp Inc. (NASDAQ-NMS: RBNC) today announced earnings for the bank holding company for the quarter ended Sept. 30, 1993, were up 81 percent over the quarter ended Sept. 30, 1992. Net income for the third quarter was $6,076,000, compared to $3,360,000 earned for the same period in 1992. Net income for the nine months ended Sept. 30, 1993, was a record $18,219,000, an increase of 85 percent over the $9,848,000 earned for the nine months ended Sept. 30, 1992.
 Fully diluted earnings per share increased to $1.31 for the first nine months of 1993 from $.77 in 1992. Return on average assets was 2.06 percent for the first nine months of 1993 and return on average common equity was 25.82 percent, compared to 1.44 percent and 18.11 percent, respectively, for the same period in 1992. All earnings- per-share amounts presented reflect the company's 10-percent stock dividend which will be issued Oct. 29, 1993, to shareholders of record on Oct. 1, 1993.
 The increase in earnings is primarily due to a significant increase in single-family mortgage volume, which resulted in higher levels of mortgage banking income and net interest income. Residential mortgage loan closings were $1.3 billion for the third quarter, an increase of 116 percent over the $599 million closed during the third quarter of 1992, and $3.2 billion for the first nine months of 1993, an increase of 143 percent over the $1.3 billion closed during the same period in 1992. The increase in mortgage volume is primarily due to the expansion of the company's mortgage delivery system, which is conducted through 75 offices located in 15 states, and continued record-setting low mortgage interest rates. The company has a mortgage loan pipeline of loan applications in process of approximately $1.5 billion at Sept. 30, 1993, and a mortgage loan servicing portfolio of $2.5 billion.
 The company's total assets as of Sept. 30, 1993, were $1.2 billion, compared to $1.0 billion as of Sept. 30, 1992, an increase of 18 percent. The company's total shareholders' equity exceeded the $100 million threshold during the quarter and totals $105 million at Sept. 30, 1993. Republic continues to significantly exceed all regulatory capital guidelines and at Sept. 30, 1993, had Total Risk- Based Capital of 19.37 percent, more than double the minimum regulatory requirements.
 As previously announced on Oct. 1, 1993, Republic Bancorp Inc. singed a letter of intent with California United Bank, N.A. ("C.U.B.") of Encino, Calif., to purchase certain assets of C.U.B.'s mortgage banking division, including C.U.B.'s mortgage origination network, its mortgage loan production offices and certain other assets. Republic is not purchasing any of the division's mortgage servicing portfolio. C.U.B.'s mortgage division has six loan production offices in California and funded approximately $750 million in single-family mortgages in the nine months ended Sept. 30, 1993. The final terms, including the price of the transaction, are subject to the execution of a definitive sales agreement and the fulfillment of several conditions including licensing requirements. The transaction would be for cash and is expected to close in the fourth quarter of 1993.
 Republic Bancorp Inc. is a registered bank holding company with headquarters in Ann Arbor. The company has four subsidiaries with 75 offices in 15 states: Michigan, Ohio, Illinois, Indiana, Missouri, Iowa, Virginia, Maryland, Kentucky, North Carolina, Georgia, Florida, Colorado, Tennessee and Alabama. The company's common stock is traded on the NASDAQ Stock Market under the symbol RBNC.
 REPUBLIC BANCORP INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (Dollars in thousands)
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30
 1993 1992 1993 1992
 Interest Income
 Loans, including fees $17,132 $15,052 $48,876 $42,524
 Investment securities 563 1,304 2,855 5,278
 Mortgage-backed securities 872 1,943 4,472 5,181
 Money market investments:
 Federal funds sold 250 213 1,219 626
 Securities held for sale 637 256 1,588 1,163
 Other 47 137 155 395
 Total interen?come 19,501 18,905 59,165 55,167
 Interest Expense
 Demand deposits 441 449 1,323 1,486
 Savings and time deposits 7,072 8,872 24,033 25,743
 Short-term borrowings 2,154 273 4,543 1,252
 Long-term debt 798 515 2,493 1,552
 Total interest expense 10,465 10,109 32,392 30,033
 Net interest income 9,036 8,796 26,773 25,134
 Provision for loan losses 190 1,883 511 2,614
 Net interest income
 after provision for
 loan losses 8,846 6,913 26,262 22,520
 Non-Interest Income
 Service charges 390 375 1,109 1,075
 Mortgage banking 22,250 8,168 60,188 19,763
 Gain on sale of
 securities 1,135 2,244 1,516 3,570
 Gain on sale of
 commercial loans 760 --- 1,814 ---
 Other 285 293 882 776
 Total non-interest
 income 24,820 11,080 65,509 25,184
 Non-Interest Expense
 Salaries and employee
 benefits 14,504 7,010 38,864 17,832
 Occupancy expense
 of premises 1,170 696 3,257 1,927
 Equipment expense 774 428 2,166 1,250
 Other 7,450 4,145 20,765 10,980
 Minority interest 106 16 236 63
 Total non-interest
 expense 24,004 12,295 65,288 32,052
 Income before
 income taxes 9,662 5,698 26,483 15,652
 Provision for
 income taxes 3,586 2,338 9,214 5,804
 Net income before
 cumulative effect of change
 in accounting principle 6,076 3,360 17,269 9,848
 Cumulative effect of change
 in accounting principle --- --- (950) ---
 Net income 6,076 3,360 18,219 9,848
 Less dividends on
 preferred shares --- 3 --- 276
 Net income applicable
 to common shares $6,076 $3,357 $18,219 $9,572
 Net income per
 common share
 Income before cumulative
 effect of change in
 accounting principle $.43 $.26 $1.24 $.82
 Cumulative effect of
 change in accounting
 principle --- --- .07 ---
 Net income per common
 share - primary $.43 $.26 $1.31 $.82
 Net income per common
 share - fully diluted $.43 $.25 $1.31 $.77
 Average common shares
 outstanding
 Primary 14,042 12,933 13,897 11,684
 Fully diluted 14,110 13,594 13,947 12,787
 REPUBLIC BANCORP INC.
 SUMMARY OF SELECTED FINANCIAL DATA
 (Dollars in thousands, except operating data)
 Sept. 30,
 Quarter-End Balances: 1993 1992
 Total assets $1,217,909 $1,028,384
 Portfolio loans 445,158 516,757
 Allowance for loan losses 7,422 6,875
 Mortgage loans held for sale 472,301 215,908
 Total securities 181,368 196,954
 Total deposits 853,503 852,547
 Long-term debt 13,009 29,379
 Shareholders' equity 105,052 82,943
 Nine Months Ended Sept. 30,
 Asset Quality Ratios: 1993 1992
 Non-performing assets to loans
 and other real estate owned(2,4)(pct.) .60 1.20
 Non-performing assets to total
 assets(4)(pct.) .46 .87
 Allowance for estimated loan losses
 to non-performing loans(pct.) 179.00 124.21
 Allowance for estimated loan losses
 to loans(3)(pct.) 1.67 1.33
 Net charge-offs to average loans
 outstanding(1,3)(pct.) .05 .31
 Capital Ratios:
 Total shareholders' equity to assets(pct.) 8.63 8.07
 Tier 1 risk-based capital(pct.) 15.52 13.85
 Total risk-based capital(pct.) 19.37 15.04
 Tier 1 leverage(pct.) 8.23 8.30
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 Operating Data (in millions): 1993 1992 1993 1992
 Residential mortgage loan
 closings $1,296 $599 $3,223 $1,326
 Mortgage loan servicing
 portfolio 2,494 963 2,494 963
 Performance Ratios(1):
 Return on average assets(pct.) 2.00 1.38 2.06 1.44
 Return on average common
 equity(pct.) 24.07 16.98 25.82 18.11
 Net interest margin(pct.) 3.20 3.73 3.24 3.81
 (1) Annualized
 (2) Includes loans held for sale.
 (3) Does not include loans held for sale.
 (4) Non-performing assets were $5,565,000 and $8,916,000,
 respectively, as of Sept. 30, 1993, and 1992. Included in
 non-performing assets was other real estate owned of
 $1,418,000 and $3,380,000, respectively.
 -0- 10/11/93
 /CONTACT: Dana M. Cluckey of Republic Bancorp, 517-725-7337/
 (RBNC)


CO: Republic Bancorp Inc. ST: Michigan IN: FIN SU: ERN

SB-JS -- DE007 -- 0992 10/12/93 10:12 EDT
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Date:Oct 12, 1993
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