Republic Bancorp, Inc. (RBCAA) has reported a 12.87 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $20.02 million in the quarter, compared with $17.74 million for the same period last year. Revenue during the quarter grew 16.63 percent to $69.01 million from $59.17 million in the previous year period. Net interest income for the quarter rose 43.12 percent over the prior year period to $56.44 million. Non-interest income for the quarter rose 0.01 percent over the last year period to $24.92 million.
Republic Bancorp, Inc. has made provision of $12.35 million for loan losses during the quarter, up 138.16 percent from $5.19 million in the same period last year.
Net interest margin improved 121 basis points to 4.99 percent in the quarter from 3.78 percent in the last year period. Efficiency ratio for the quarter improved to 48 percent from 51 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Steve Trager, Republic's chairman and chief executive officer, commented: "I am very excited to see the solid growth in our overall net income for the quarter, as we have made, and continue to make, significant investments in people and technology in order to advance our long-term strategic initiatives. As is typically the case during the first quarter of each year, the Tax Refund Solutions ("TRS") division of our Republic Processing Group ("RPG") made a proportionately significant contribution to net income for the quarter, as we completed the bulk of our tax season for 2017. In addition, the Republic Credit Solutions ("RCS") division of RPG had another strong quarter, as well, contributing $1.3 million to RPG’s net income for the quarter."
Deposits stood at $3,348.78 million as on Mar. 31, 2017, up 22.37 percent compared with $2,736.65 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $1,070.24 million or 31.96 percent of total deposits on Mar. 31, 2017, compared with $800.95 million or 29.27 percent of total deposits on Mar. 31, 2016.
Investments stood at $578.13 million as on Mar. 31, 2017, up 3.87 percent or $21.52 million from year-ago. Shareholders equity was at $620.66 million as on Mar. 31, 2017.
Return on average assets moved up 5 basis points to 1.65 percent in the quarter from 1.60 percent in the last year period. At the same time, return on average equity increased 105 basis points to 13.12 percent in the quarter from 12.07 percent in the last year period.
Credit quality improves
Republic Bancorp recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 13.35 percent or $2.83 million to $18.36 million on Mar. 31, 2017 from $21.19 million on Mar. 31, 2016. Nonperforming assets to total loans was 0.49 percent in the quarter, down from 0.63 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.39 percent in the quarter, down from 0.50 percent in the last year period. Equity to assets ratio was 13.31 percent for the quarter, down from 13.93 percent for the previous year quarter. Book value per share was $29.76 for the quarter, up 5.16 percent or $1.46 compared to $28.30 for the same period last year.
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