Republic Bancorp Reports Strong Financial Performance

By Bobby Samwell • Friday, January 24 15:28 • Permanent Link

Republic Bancorp, Inc. has reported strong financial performance for the fourth quarter of 2024, with net income reaching $19.0 million and diluted earnings per share at $0.98. The year-to-date net income of $101.4 million represents a significant 12% increase over the previous year. The return on average assets ("ROA") for 2024 was reported at 1.47%, while the return on average equity ("ROE") was 10.50%, demonstrating positive growth in these key financial metrics.

The core bank's net income for the fourth quarter of 2024 increased by 11% over the same period in 2023, reaching $17.6 million. This growth was driven by a substantial $7.0 million increase in net interest income, which rose from $50.6 million in the fourth quarter of 2023 to $57.7 million in the fourth quarter of 2024. The core bank's net interest margin ("NIM") also experienced a notable uptick, increasing from 3.40% in the fourth quarter of 2023 to 3.64% in the fourth quarter of 2024.

The company also made significant strides in managing expenses, with total company non-interest expenses increasing by just 1.7% from the previous year, and core bank non-interest expenses increasing by only 0.7% during the same period. This disciplined approach to cost management contributed to a positive 267-basis-point decrease in the total company efficiency ratio, which measures the amount of non-interest expense it takes to generate one dollar of net revenue, reaching 52.68% for 2024.

Furthermore, Republic Bancorp, Inc. achieved a total company operating leverage increase of 5% over 2023, demonstrating effective growth of revenue relative to non-interest expenses. The company also maintained strong credit quality, with core bank net charge-offs for the year at 0.05%.

In addition to financial metrics, the company also emphasized its commitment to enhancing client experiences, with its Net Promoter Score ("NPS") increasing from 38 in the 1st quarter of 2023 to 75 in the 3rd quarter of 2024, which is three times the banking industry average.

The market has reacted to these announcements by moving the company's shares -2.3% to a price of $67.07. For the full picture, make sure to review Republic Bancorp's 8-K report.

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