Republic Bancorp(RBCAA) - 2025 Q2 - Quarterly Results

Financial Position - Total assets as of June 30, 2025, were $6,970,917, a decrease of 1.5% from $7,075,555 on March 31, 2025[4] - Total assets increased to $7,062,031,000 in Q2 2025 from $6,706,884,000 in Q2 2024, marking an increase of 5.3%[10] - Period-end assets as of June 30, 2025, totaled $6,970,917,000, an increase from $6,616,574,000 as of June 30, 2024, representing a growth of 5.4%[22] - Total liabilities decreased to $5,910,811 as of June 30, 2025, down 2.2% from $6,041,466 on March 31, 2025[4] - Total stockholders' equity increased to $1,060,106 as of June 30, 2025, up 2.9% from $1,034,089 on March 31, 2025[4] - Total stockholders' equity increased to $1.060 billion as of June 30, 2025, up from $1.034 billion at the end of Q1 2025[28] Loans and Credit Quality - Loans increased to $5,373,020 as of June 30, 2025, up 1.6% from $5,289,793 on March 31, 2025[4] - The average balance of loans, including loans held for sale, was $5,318,666 for the three months ended June 30, 2025[6] - Total Core Banking loans rose to $5,253,925 in Q2 2025 from $5,135,861 in Q1 2025, an increase of 2.3%[12] - Total nonperforming loans as of June 30, 2025, were $21,642, a decrease from $22,850 as of March 31, 2025, representing a reduction of approximately 5.3%[14] - The allowance for credit losses on loans was $81,760 as of June 30, 2025, compared to $106,303 on March 31, 2025, reflecting a reduction of 23.1%[4] - The allowance for credit losses to total loans ratio was 1.52% as of June 30, 2025, down from 2.01% as of March 31, 2025[14] - Provision for credit losses in Q2 2025 was $1,823,000, significantly lower than $5,143,000 in Q2 2024, indicating improved credit quality[10] - The annualized net charge-offs (NCOs) to average loans ratio was 1.99% for the second quarter of 2025, significantly up from 0.24% in the previous quarter[14] Income and Revenue - Total interest income for Q2 2025 was $102,203,000, an increase from $97,700,000 in Q2 2024, representing a 4.9% year-over-year growth[10] - Net interest income for Q2 2025 reached $76,202,000, compared to $68,536,000 in Q2 2024, reflecting an increase of 11.2%[10] - Noninterest income totaled $17,644,000 in Q2 2025, down from $18,346,000 in Q2 2024, a decrease of 3.8%[10] - Net income for Q2 2025 was $31,484,000, up from $25,206,000 in Q2 2024, representing a 25% increase[10] - Net income for the six months ended June 30, 2025, was $78,752,000, compared to $25,206,000 for the same period in 2024, indicating a significant increase of 212.5%[22] Efficiency and Ratios - The efficiency ratio increased to 55.0% in Q2 2025 from 40.3% in Q1 2025, showing a deterioration of 36.4%[11] - The net interest margin improved to 4.61% in Q2 2025 from 4.36% in Q2 2024[10] - The net interest margin for the total company was 4.61% in Q2 2025, down from 6.28% in Q1 2025, a decrease of 26.7%[11] - Basic EPS for Class A Common Stock decreased to $1.62 in Q2 2025 from $2.43 in Q1 2025, representing a decline of 33.4%[11] Segment Performance - The Republic Processing Group segments, including Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions, primarily drive net revenue through net interest income and program fees[16] - The Core Banking segments, Traditional Banking and Warehouse Lending, are primarily driven by net interest income[16] - As of June 30, 2025, the company had a total of 5 reportable segments, with Core Banking operations considered as Traditional Banking and Warehouse Lending[16] - The company reported a net-revenue concentration of 100% across its segments for Q2 2025, with core banking contributing 75%[20] Other Financial Metrics - The cost of average deposits was 1.62% in Q2 2025, slightly up from 1.57% in Q1 2025[11] - The tangible book value per share rose to $51.78 as of June 30, 2025, compared to $50.46 at the end of Q1 2025[28] - The company reported a net gain on the sale of mortgage loans of $1.483 million in Q2 2025, slightly up from $1.411 million in Q1 2025[27] - The company originated $51.788 million in mortgage loans and $321.127 million in consumer loans during Q2 2025, showing strong loan origination activity[27] - Total loan fees for the company reached $14.195 million in Q2 2025, compared to $47.513 million in Q1 2025, reflecting a significant decrease[25]