UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): May 6, 2021
REPUBLIC BANCORP, INC.
(Exact name of registrant as specified in its charter)
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Kentucky | 0-24649 | 61-0862051 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
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601 West Market Street, Louisville, Kentucky | | 40202 |
(Address of principal executive offices) | | (zip code) |
Registrant’s telephone number, including area code: (502) 584-3600
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Title of each class | Trading Symbol | Name of each exchange on which registered |
Class A Common | RBCAA | The Nasdaq Stock Market |
NOT APPLICABLE
(Former Name or former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 22, 2021, Republic Bancorp, Inc. (“Republic” or the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2021. Subsequent to the release of its preliminary earnings, and in conjunction with the preparation of its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 (the “10-Q”), the Company positively refined its estimate for its March 31, 2021 Allowance for Credit Losses for its Easy Advance (“EA”) loans based on better-than-expected payments on these loans the Company received from the U.S. Treasury through May 5, 2021. As a result, the Company recorded incremental decreases in its Allowance for Credit Losses on EAs and for its Provision for Expected Credit Loss Expense on EAs by $7.3 million for the first quarter of 2021. Refer to the below tables for a summary of the refinements to the results discussed above.
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| | Total Company Financial Performance Highlights | ||||||||||||||
| | | Three Months Ended Mar. 31, 2021 | | | | ||||||||||
(dollars in thousands, except per share data) | |
| As Reported in 10-Q | | Preliminary | | $ Change | | % Change |
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Income Before Income Tax Expense | | | $ | 33,744 | | | $ | 26,398 | | | $ | 7,346 | | 28 | % | |
Net Income | | | | 26,053 | | | | 20,433 | | | | 5,620 | | 28 | | |
Diluted Earnings per Class A Common Share | | | | 1.25 | | | | 0.98 | | | | 0.27 | | 28 | | |
Return on Average Assets | | | | 1.65 | % | | | 1.30 | % | | | NA | | 27 | | |
Return on Average Equity | | | | 12.46 | | | | 9.77 | | | | NA | | 28 | | |
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Income Statement Data | | | | | | |
| | Three Months Ended Mar. 31, 2021 | ||||
| | As Reported in 10-Q | | Preliminary | ||
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Net interest income | | $ | 67,780 | | $ | 67,780 |
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Provision for expected credit loss expense | | | 15,262 | | | 22,608 |
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Noninterest income | | | 29,037 | | | 29,037 |
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Noninterest expense: | | | 47,811 | | | 47,811 |
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Income before income tax expense | | | 33,744 | | | 26,398 |
Income tax expense | | | 7,691 | | | 5,965 |
Net income | | $ | 26,053 | | $ | 20,433 |
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Balance Sheet Data | | As Reported in 10-Q | | Preliminary | ||
| | Mar. 31, 2021 | | Mar. 31, 2021 | ||
Assets: | | | | | | |
Cash and cash equivalents | | $ | 984,857 | | $ | 984,857 |
Investment securities, net of allowance for credit losses | | | 532,443 | | | 532,443 |
Loans held for sale | | | 79,307 | | | 79,307 |
Loans | | | 4,666,593 | | | 4,666,593 |
Allowance for credit losses | | | (75,336) | | | (82,682) |
Loans, net | | | 4,591,257 | | | 4,583,911 |
Federal Home Loan Bank stock, at cost | | | 13,153 | | | 13,153 |
Premises and equipment, net | | | 38,324 | | | 38,324 |
Right-of-use assets | | | 41,911 | | | 41,911 |
Goodwill | | | 16,300 | | | 16,300 |
Other real estate owned ("OREO") | | | 2,015 | | | 2,015 |
Bank owned life insurance ("BOLI") | | | 68,408 | | | 68,408 |
Other assets and accrued interest receivable | | | 108,565 | | | 109,482 |
Total assets | | $ | 6,476,540 | | $ | 6,470,111 |
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Liabilities and Stockholders' Equity: | | | | | | |
Deposits: | | | | | | |
Noninterest-bearing | | $ | 2,276,348 | | $ | 2,276,348 |
Interest-bearing | | | 2,995,144 | | | 2,995,144 |
Total deposits | | | 5,271,492 | | | 5,271,492 |
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Securities sold under agreements to repurchase and other short-term borrowings | | | 175,580 | | | 175,580 |
Operating lease liabilities | | | 42,854 | | | 42,854 |
Federal Home Loan Bank advances | | | 25,000 | | | 25,000 |
Subordinated note | | | 41,240 | | | 41,240 |
Other liabilities and accrued interest payable | | | 82,665 | | | 81,841 |
Total liabilities | | | 5,638,831 | | | 5,638,007 |
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Stockholders' equity | | | 837,709 | | | 832,104 |
Total liabilities and stockholders' equity | | $ | 6,476,540 | | $ | 6,470,111 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | Republic Bancorp, Inc. |
| | (Registrant) |
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Date: May 6, 2021 | By: | /s/ Kevin Sipes |
| | Executive Vice President, Chief Financial Officer & Chief Accounting Officer |
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