Republic Bancorp, Inc. (RBCAA) has reported a 34.81 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $10 million in the quarter, compared with $7.42 million for the same period last year.
Revenue during the quarter grew 23.66 percent to $47.13 million from $38.11 million in the previous year period. Net interest income for the quarter rose 28.27 percent over the prior year period to $41.64 million. Non-interest income for the quarter rose 35.87 percent over the last year period to $10.48 million.
Republic Bancorp, Inc. has made provision of $5 million for loan losses during the quarter, up 141.27 percent from $2.07 million in the same period last year.
Net interest margin improved 45 basis points to 3.77 percent in the quarter from 3.32 percent in the last year period. Efficiency ratio for the quarter improved to 62 percent from 67 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: "We are very proud of our solid fourth quarter and the overall strong year we put together in 2016. We made meaningful progress toward many of our long-term goals during the year, including: (1) expanding our footprint in the Tampa-St. Pete market through a strategic acquisition; (2) launching a digital-only banking platform during the fourth quarter; (3) growing the contribution from our non-traditional business lines at the Republic Processing Group (“RPG”); and (4) further improving our ROA, ROE and our Efficiency Ratio. We are also very pleased that over the past year the market has recognized our strong performance and our future prospects as reflected by the 50% increase in our stock price during 2016. While strategic decisions for our Company will always be based on the long-term interests of our shareholders, and not the day-to-day fluctuations in our stock price, we are appreciative of the market’s recognition of the hard work by our 900+ associates and the strong results and future opportunities they have created."
Liabilities outpace assets growth
Total assets stood at $4,816.31 million as on Dec. 31, 2016, up 13.85 percent compared with $4,230.29 million on Dec. 31, 2015. On the other hand, total liabilities stood at $4,211.90 million as on Dec. 31, 2016, up 15.28 percent from $3,653.74 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $3,777.86 million as on Dec. 31, 2016, up 14.51 percent compared with $3,299.12 million on Dec. 31, 2015. Deposits stood at $3,160.69 million as on Dec. 31, 2016, up 27.06 percent compared with $2,487.48 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $971.94 million or 30.75 percent of total deposits on Dec. 31, 2016, compared with $634.86 million or 25.52 percent of total deposits on Dec. 31, 2015.
Investments stood at $534.14 million as on Dec. 31, 2016, down 3.89 percent or $21.65 million from year-ago. Shareholders equity stood at $604.41 million as on Dec. 31, 2016, up 4.83 percent or $27.86 million from year-ago.
Return on average assets moved up 14 basis points to 0.87 percent in the quarter from 0.73 percent in the last year period. At the same time, return on average equity increased 149 basis points to 6.62 percent in the quarter from 5.13 percent in the last year period.
Credit quality improves
Republic Bancorp, Inc. recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 24.64 percent or $5.71 million to $17.45 million on Dec. 31, 2016 from $23.16 million on Dec. 31, 2015. Nonperforming assets to total loans was 0.46 percent in the quarter, down from 0.70 percent in the last year period. Meanwhile, nonperforming assets to total assets was 0.36 percent in the quarter, down from 0.55 percent in the last year period.
Book value per share was $28.97 for the quarter, up 5 percent or $1.38 compared to $27.59 for the same period last year.
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