Republic Bancorp, Inc. (“Republic” or the “Company”) concluded 2013 with annual net income of $25.4 million resulting in Diluted Earnings per Class A Common share of $1.22. Return on average assets (“ROA”) and return on average equity (“ROE”) in 2013 were 0.75% and 4.65%, respectively. Net income for the fourth quarter of 2013 was $1.3 million resulting in Diluted Earnings per Class A Common Share of $0.07 with ROA and ROE of 0.16% and 0.98%, respectively.
Steve Trager, Chairman and CEO of Republic, made the following comment in regards to that announcement:
“This past year was challenging in many regards, but we managed to maintain beneficial returns despite industry-wide margin compression. With our industry-strong credit quality and capital levels, we remain well-positioned to take advantage of emerging opportunities in an ever-changing marketplace. While FDIC-assisted bank acquisitions did not materialize for us in 2013, growing our Bank and leveraging our capital through acquisition(s) remains a high priority for our Company in 2014.”
Republic Bancorp, Inc.
(NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company for Republic Bank & Trust Company (“RB&T”) and Republic Bank (“RB”), (collectively the “Bank”).
Results of Operations for the Fourth Quarter of 2013 Compared to the Fourth Quarter of 2012
Traditional Banking and Mortgage Banking (collectively “Core Banking”)
Net income from Core Banking was $5.1 million for the fourth quarter of 2013, a decrease of $3.7 million from the fourth quarter of 2012. In general, the decline in net income at the Core Bank was largely attributable to lower net interest income and lower Mortgage Banking income, which was partially offset by improvement in the Core Bank’s provision for loan losses.
Net interest income within the Core Bank for the fourth quarter of 2013 was $26.7 million compared to $30.5 million for the fourth quarter of 2012. The Core Bank’s net interest margin for the fourth quarter of 2013 was 3.27% compared to 3.69% for the fourth quarter of 2012. As expected, the Core Bank’s net interest income continued to benefit from its 2012 FDIC-assisted acquisitions, although to a lesser degree than the fourth quarter of 2012. Overall, the total contribution to net interest income from the Bank’s Tennessee and Minnesota portfolios for the fourth quarter of 2013 was $2.4 million, a decline of $1.0 million from the fourth quarter of 2012. The decline in net interest income from the Tennessee and Minnesota markets was due to a $42 million decrease in their combined portfolios from year-end 2012, as the Bank’s Special Assets group continued to successfully reduce its problem credits from the 2012 FDIC-assisted acquisitions. For the fourth quarter of 2013, the Bank’s 2012 FDIC-assisted acquisitions added approximately 18 basis points to the Core Bank’s net interest margin, as compared to a 20 basis point contribution for the fourth quarter of 2012.