Republic Bancorp reported first-quarter 2026 net income of $42.6 million, down 10% from $47.3 million a year earlier, while diluted earnings per Class A share fell to $2.18 from $2.42.
On an adjusted basis, net income rose to $39.9 million from $38.9 million, a 3% increase, and adjusted diluted EPS increased to $2.04 from $1.99.
The company’s core bank drove much of the improvement. Core bank net income climbed 37% to $23.8 million from $17.4 million, while adjusted core bank net income increased 21% to $21.1 million from $17.4 million.
Core bank net interest income rose 12% to $63.2 million from $56.3 million. Net interest margin expanded to 3.96% from 3.70%, an increase of 26 basis points.
That margin improvement came as the weighted-average cost of total interest-bearing deposits declined to 1.98% from 2.26%. Average interest-bearing deposit balances increased 8% to $? Wait—balance details show average interest-bearing deposits rose by $277 million, or 8%. Average interest-bearing cash fell to $344 million from $517 million, while average investments increased to $907 million from $620 million.
Warehouse lending also grew in size but not in profitability. Average outstanding warehouse lines of credit increased 33% to $610 million from $459 million, while the weighted-average yield fell to 6.34% from 7.06%, a decline of 72 basis points. Average committed warehouse lines increased to $1.22 billion from $968 million, and usage rose to 50% from 47%.
Traditional banking average loans increased to $4.62 billion from $4.58 billion, up $42 million, while the weighted-average yield edged up to 5.64% from 5.61%.
Period-end total core bank loans rose to $5.23 billion from $5.14 billion, an increase of $90.3 million, or 2%.
Republic Processing Group was the drag on the quarter. Its net income fell 37% to $18.8 million from $29.9 million, and adjusted net income declined 12% to $18.8 million from $21.5 million.
At the company level, income before tax decreased to $55.4 million from $60.0 million, and return on average assets fell to 2.40% from 2.61%. Return on average equity dropped to 15.28% from 18.74%.
The provision for expected credit losses shifted to a net charge of $394,000 from a net credit of $722,000 a year earlier. Following these announcements, the company's shares moved 1.3%, and are now trading at a price of $69.64. For more information, read the company's full 8-K submission here.
