Republic Bancorp(RBCAA) - 2025 Q4 - Annual Results

Financial Performance - Total assets as of December 31, 2025, increased to $7,042,061, up from $7,014,919 as of September 30, 2025, reflecting a growth of 0.39%[4] - Total interest income for Q4 2025 was $103,233,000, slightly up from $103,108,000 in Q4 2024, resulting in a year-over-year increase of 0.12%[10] - Net interest income for Q4 2025 reached $78,810,000, compared to $75,394,000 in Q4 2024, reflecting a year-over-year growth of 4.8%[10] - Net income for Q4 2025 was $22,821,000, up from $19,016,000 in Q4 2024, which is an increase of 20.5%[10] - Net income for the year ended December 31, 2025, was $131,317, compared to $101,371 for the year ended December 31, 2024, reflecting a year-over-year increase of 29.5%[21] - Total net revenue for Q4 2025 was $94.269 million, an increase from $89.512 million in Q4 2024, representing a year-over-year growth of 5.5%[27] Asset and Liability Management - The total liabilities stood at $5,939,768, slightly up from $5,930,399, reflecting a marginal increase of 0.02%[4] - Stockholders' equity increased to $1,102,293 from $1,084,520, representing a growth of 1.56%[4] - Tangible stockholders' equity as of December 31, 2025, was $1,053.431 million, up from $942.581 million a year earlier, representing a growth of 11.8%[26] - The total stockholders' equity to total assets ratio was 15.65% as of December 31, 2025, compared to 14.49% a year prior, indicating improved capital adequacy[26] Loan and Deposit Activity - Loans held for sale rose significantly to $117,350 from $40,206 in the previous quarter, marking an increase of 192.5%[4] - Total loans increased to $5,446,329 in Q4 2025 from $5,281,374 in Q3 2025, reflecting a growth of 3.13%[12] - Total deposits decreased to $5,203,147 from $5,338,345 in the previous quarter, a decline of 2.52%[4] - Noninterest-bearing deposits were $1,173,461, down from $1,239,023, a decrease of 5.3%[4] - Total Core Bank Deposits increased to $4,809,179, a 4% increase from $4,606,457 in 2024[29] - Adjusted Core Bank Deposits reached $4,709,845, reflecting a 5% increase from $4,491,411 in 2024[29] Credit Quality and Losses - The allowance for credit losses on loans was $85,352 as of December 31, 2025, compared to $79,865 as of September 30, 2025, indicating a 6.2% increase[4] - Provision for credit losses increased to $10,079,000 in Q4 2025 from $12,951,000 in Q4 2024, indicating a decrease of 22.5%[10] - Total nonperforming loans increased to $23,967 thousand in Q4 2025 from $21,709 thousand in Q3 2025, representing a 10.4% increase[13] - Total nonperforming assets rose to $25,244 thousand in Q4 2025, up from $21,709 thousand in Q3 2025, indicating a 16.5% increase[13] - Delinquent loans for the total company reached $22,863 thousand in Q4 2025, compared to $19,382 thousand in Q3 2025, marking an increase of 12.8%[13] - The allowance for credit losses to total loans ratio was 1.57% in Q4 2025, up from 1.51% in Q3 2025[13] Operational Efficiency - The efficiency ratio increased to 59.8% in Q4 2025 from 57.4% in Q3 2025, indicating a decline in operational efficiency[11] - The efficiency ratio for Q4 2025 was 60.0%, an increase from 59.8% in Q4 2024, indicating a slight decline in operational efficiency[27] Segment Performance - The company operates through five reportable segments: Traditional Banking, Warehouse Lending, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions[15] - The Republic Processing Group's primary revenue drivers include net interest income and program fees from tax refund solutions and consumer credit products[15] Interest and Expense Management - Total interest expense decreased to $24,423,000 in Q4 2025 from $27,714,000 in Q4 2024, a reduction of 11.6%[10] - The net interest margin improved to 4.69% in Q4 2025 from 4.62% in Q4 2024[10] - The net interest margin for the total company improved to 4.69% in Q4 2025 from 4.65% in Q3 2025[11] - The cost of average deposits decreased to 1.50% in Q4 2025 from 1.64% in Q3 2025[11] Miscellaneous - The number of full-service banking centers remained stable at 47 as of Q4 2025[11] - RAs and ERAs originated amounted to $12,924 thousand in Q4 2025, a significant decrease from $662,556 thousand in Q4 2024[13] - Net credit charge to the provision for RAs and ERAs was $(598) thousand in Q4 2025, compared to $(1,454) thousand in Q3 2025[13]