Republic Bancorp | 8-K: FY2025 Q4 EPS: USD 1.17

EPS: As of FY2025 Q4, the actual value is USD 1.17.Overall Company PerformanceNet IncomeFourth Quarter 2025: $22.8 million, a 20% increase from $19.0 million in Q4 2024.Full Year 2025: $131.317 million, a 30% increase from $101.371 million in 2024.Diluted EPSFourth Quarter 2025: $1.17 per share, a 19% increase from $0.98 per share in Q4 2024.Full Year 2025: $6.72 per share, a 29% increase from $5.21 per share in 2024.Return on Average Assets (ROA)Fourth Quarter 2025: 1.28%, a 16% increase from 1.10% in Q4 2024.Full Year 2025: 1.84%, a 25% increase from 1.47% in 2024.Return on Average Equity (ROE)Fourth Quarter 2025: 8.20%, an 8% increase from 7.63% in Q4 2024.Full Year 2025: 12.31%, a 17% increase from 10.50% in 2024.Income Before Income Tax ExpenseFourth Quarter 2025: $27.595 million, a 20% increase from $23.050 million in Q4 2024.Full Year 2025: $165.709 million, a 30% increase from $127.703 million in 2024.Total Stockholders’ EquitySurpassed $1.0 billion in 2025.Total Company Period-End LoansIncreased $7 million during 2025.Total Company Loan-to-Deposit Ratio (Quarterly Average)100% for Q4 2025 compared to 101% for Q4 2024.Total Company AssetsApproximately $7.04 billion as of December 31, 2025.Core Bank Performance (Traditional Banking and Warehouse Lending)Net Income$15.9 million for Q4 2025, a $1.7 million (10%) decrease from $17.6 million in Q4 2024.Net Interest Income$63.7 million for Q4 2025, a $6.1 million (11%) increase over $57.7 million in Q4 2024.Traditional Banking Net Interest Income: $59.483 million in Q4 2025, up $5.541 million from $53.942 million in Q4 2024.Warehouse Lending Net Interest Income: $4.238 million in Q4 2025, up $520,000 from $3.718 million in Q4 2024.Net Interest Margin (NIM)Rose from 3.64% in Q4 2024 to 3.87% in Q4 2025.Traditional Banking NIM: 3.99% in Q4 2025, up 0.26% from 3.73% in Q4 2024.Warehouse Lending NIM: 2.69% in Q4 2025, up 0.01% from 2.68% in Q4 2024.Interest-Earning AssetsAverage Interest-Earning Cash: $407 million (yield 3.86%) in Q4 2025 compared to $584 million (yield 4.81%) in Q4 2024.Average Investments: $901 million (yield 4.09%) in Q4 2025 compared to $595 million (yield 3.16%) in Q4 2024.Average Outstanding Warehouse Line of Credit Balances: Increased $72 million (13%) from $553 million in Q4 2024 to $625 million in Q4 2025, with weighted-average yield declining 72 basis points to 6.72%.Traditional Bank Average Loans: Increased $32 million from $4.57 billion in Q4 2024 to $4.60 billion in Q4 2025, with weighted-average yield expanding 15 basis points to 5.72%.Funding LiabilitiesWeighted-Average Cost of Total Interest-Bearing Deposits: Decreased from 2.43% in Q4 2024 to 2.12% in Q4 2025.Average Interest-Bearing Deposit Balances: Grew $228 million (6%) for the same period, including a $223 million increase in average balances for business and consumer money market accounts.Average Noninterest-Bearing Deposits: Decreased $35 million from Q4 2024 to Q4 2025.Loan BalancesTraditional Banking Average Loan Balances: $4.601 billion in Q4 2025, up $31.959 million (1%) from $4.569 billion in Q4 2024.Warehouse Lending Average Loan Balances: $624.655 million in Q4 2025, up $71.799 million (13%) from $552.856 million in Q4 2024.Total Core Bank Average Loan Balances: $5.226 billion in Q4 2025, up $103.758 million (2%) from $5.122 billion in Q4 2024.Traditional Banking Period-End Loan Balances: $4.546 billion in Q4 2025, down -$22.882 million (-1%) from $4.569 billion in Q4 2024.Warehouse Lending Period-End Loan Balances: $754.090 million in Q4 2025, up $203.330 million (37%) from $550.760 million in Q4 2024.Total Core Bank Period-End Loan Balances: $5.300 billion in Q4 2025, up $180.448 million (4%) from $5.120 billion in Q4 2024.Provision for Expected Credit LossesNet charge of $6.4 million for Q4 2025 compared to a net charge of $367,000 for Q4 2024.Q4 2025 drivers: $4.8 million specific allocation in Traditional Bank, $879,000 charge related to net charge-offs, $360,000 net charge for Warehouse.Allowance for Credit Losses on Loans (Allowance to Loans)Traditional Bank: 1.40% as of Dec 31, 2025, up 0.09% from 1.31% as of Dec 31, 2024.Warehouse Lending: 0.25% as of Dec 31, 2025, unchanged from 0.25% as of Dec 31, 2024.Total Core Bank: 1.24% as of Dec 31, 2025, up 0.05% from 1.19% as of Dec 31, 2024.Allowance for Credit Losses on Loans Roll-Forward (Q4 2025)Traditional Bank: Beginning Balance $58.479 million, Provision $6.062 million, Charge-offs -$961,000, Recoveries $82,000, Ending Balance $63.662 million.Warehouse Lending: Beginning Balance $1.522 million, Provision $360,000, Charge-offs $0, Recoveries $0, Ending Balance $1.882 million.Total Core Bank: Beginning Balance $60.001 million, Provision $6.422 million, Charge-offs -$961,000, Recoveries $82,000, Ending Balance $65.544 million.Credit Quality Ratios (as of Dec 31, 2025 vs Dec 31, 2024)Nonperforming loans to total loans: 0.45% (2025) vs 0.44% (2024).Nonperforming assets to total loans (including OREO): 0.47% (2025) vs 0.46% (2024).Delinquent loans to total loans: 0.26% (2025) vs 0.20% (2024).Net charge-offs to average loans: 0.03% (2025) vs 0.05% (2024).Noninterest IncomeIncreased by $1.0 million from $9.7 million in Q4 2024 to $10.7 million in Q4 2025.Noninterest Expense$49.3 million for Q4 2025, an increase of $3.5 million over Q4 2024, driven by a combined $2.4 million (9%) increase in Salaries and employee benefits.Republic Processing Group (RPG) PerformanceNet Income$6.9 million for Q4 2025, a $5.5 million increase over $1.4 million in Q4 2024.Tax Refund Solutions (TRS): Recorded a net loss of -$1.4 million during Q4 2025, compared to a net loss of -$6.4 million for Q4 2024, reflecting the impact of a non-renewed large tax preparer contract.Republic Payment Solutions (RPS): Net income was $2.0 million for Q4 2025, a $298,000 increase over Q4 2024, primarily due to no revenue-share recorded in Q4 2025 compared to $1.1 million paid in Q4 2024.Republic Credit Solutions (RCS): Net income rose by $200,000 to $6.3 million for Q4 2025, compared to $6.1 million for Q4 2024, driven by lower Provision and increased originations within its installment loan product.Allowance for Credit Losses on Loans (Allowance to Loans)Tax Refund Solutions: 1.03% as of Dec 31, 2025, down -4.14% from 5.17% as of Dec 31, 2024.Republic Credit Solutions: 17.15% as of Dec 31, 2025, up 0.85% from 16.30% as of Dec 31, 2024.Total Republic Processing Group: 13.57% as of Dec 31, 2025, up 3.92% from 9.65% as of Dec 31, 2024.Allowance for Credit Losses on Loans Roll-Forward (Q4 2025)Tax Refund Solutions: Beginning Balance $1,000, Provision -$562,000, Charge-offs $0, Recoveries $894,000, Ending Balance $333,000.Republic Credit Solutions: Beginning Balance $19.863 million, Provision $4.219 million, Charge-offs -$4.989 million, Recoveries $382,000, Ending Balance $19.475 million.Total Republic Processing Group: Beginning Balance $19.864 million, Provision $3.657 million, Charge-offs -$4.989 million, Recoveries $1.276 million, Ending Balance $19.808 million.Other Operational HighlightsCore Bank Period-End Deposits: Increased by $218 million (5%) during 2025, excluding wholesale brokered deposits and listing service deposits.RBF Operations Sale: Republic Bancorp, Inc. entered into an agreement to sell its St. Louis-based Republic Bank Finance (RBF) operations in December 2025, with the sale expected to close in Q1 2026 and record a gain of approximately $6 million, net of broker commissions.Net Promoter Score: 73 during Q3 2025, placing the company in the “Excellent” category.Associate Engagement Score: 81%, placing the company in the “Great” category.Outlook / GuidanceRepublic Bancorp, Inc. anticipates another strong year in 2026, supported by strong credit quality, capital ratios, and a robust liquidity position. The company plans to maintain its focus on disciplined growth, operational excellence, and efficiency. The sale of RBF operations is projected to finalize in Q1 2026, generating an estimated $6 million gain.