Republic Bancorp, Inc. (NASDAQ: RBCAA) has reported a notable increase in its net income for the second quarter of 2024. The company's net income for this period stood at $25.2 million, marking a 20% rise from the second quarter of 2023. Diluted earnings per class A common share ("diluted EPS") also rose by 22% to $1.30 per share compared to the same period last year.
The company's income before income tax expense for the second quarter of 2024 was $32.1 million, up 21% from the second quarter of 2023. Additionally, the return on average assets ("ROA") increased to 1.50% from 1.37% in the previous year, while the return on average equity ("ROE") rose to 10.57% from 9.41%.
In terms of the core bank's performance, net income for this segment reached $15.0 million in the second quarter of 2024, representing a 24% increase from the same period in 2023. The core bank's net interest income also saw a 3% increase to $52.8 million.
However, the net interest margin ("NIM") for the core bank decreased from 3.65% in the second quarter of 2023 to 3.46% in the second quarter of 2024. This decrease was primarily attributed to a shift in funding mix, as the average noninterest-bearing deposits decreased from $1.5 billion to $1.2 billion during the same period.
Furthermore, the company's traditional bank loan portfolio grew by $16 million during the second quarter of 2024. Despite slower new loan production in the first six months of 2024, the weighted average yield for the traditional bank's overall loan portfolio increased to 5.57% from 4.98% in the second quarter of 2023.
Republic Bancorp also noted positive results from its Republic Processing Group ("RPG") during the second quarter of 2024. While Republic Payment Solutions ("RPS") experienced a slight decrease in revenue due to a revenue share arrangement implemented in the first quarter of 2024, both Republic Credit Solutions ("RCS") and Tax Refund Solutions ("TRS") saw solid increases in net income, contributing to a 14% overall net income growth for RPG compared to the second quarter of 2023.
Finally, the company focused on achieving moderately priced deposit growth for the second half of 2024, highlighting its commitment to customer service, competitive products, convenient locations, and solid digital capabilities.
The market has reacted to these announcements by moving the company's shares 1.9% to a price of $63.28. Check out the company's full 8-K submission here.
