Republic Bancorp, Inc. (NASDAQ: RBCAA), headquartered in Louisville, Kentucky, is the holding company for Republic Bank & Trust Company (the “Bank”).
Republic Bancorp, Inc. (“Republic” or the “Company”) is pleased to report solid net income of $6.3 million for the second quarter of 2014, an increase of 3.3% over the second quarter of 2013, while Diluted Earnings per Class A Common Share remained level at $0.30 for both quarters. Return on average assets (“ROA”) and return on average equity (“ROE”) were 0.73% and 4.54%, respectively, for the second quarter of 2014. For the first six months of 2014, net income was $18.3 million, with Diluted Earnings per Class A Common Share of $0.88 and an ROA and ROE of 1.04% and 6.60%, respectively.
Steve Trager, Republic’s Chairman and Chief Executive Officer, commented: “We made meaningful strides during the second quarter of 2014 in reinvesting cash from lower-yielding overnight investments into higher yielding loan products, growing total loans by $151 million for the second quarter alone. The overall growth in our loan portfolio came from multiple sources including our Mortgage Warehouse line-of-credit product, as well as new production from our Correspondent Lending division, which began purchasing loans during the second quarter of 2014. After three months of operation, this new division has purchased $12 million of conforming and jumbo 5/1 and 7/1 adjustable rate mortgage (“ARM”) loans from a small portion of the Company’s existing Mortgage Warehouse clients. The Company is excited about the growth potential in the correspondent channel, as its new loan pipeline continues to grow and the Company continues the process of approving additional Mortgage Warehouse clients as correspondent originators.”
The following chart highlights Republic’s second quarter and year-to-date 2014 financial performance compared to the same period in 2013:
|Three Months Ended||%||Six Months Ended||%|
|(dollars in thousands, except per share data)||6/30/14||6/30/13||Change||6/30/14||6/30/13||Change|
|Income before income taxes||$||9,654||$||8,946||8||%||$||28,177||$||29,924||-6||%|
|Diluted Earnings per Class A Share||$||0.30||$||0.30||0||%||$||0.88||$||0.94||-6||%|