Republic Bancorp Q4 net income $5.2 million
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For the 2014 fiscal year, the company achieved net income of $28.8 million, resulting in Diluted Earnings per Class A Common Share of $1.38, a 13% increase over 2013.
Net income from Core Banking was $6.6 million for the fourth quarter of 2014, an increase of $1.5 million, or 31%, from the fourth quarter of 2013. The increase in quarterly net income at the Core Bank was largely driven by solid growth in net interest income complemented by a meaningful reduction in overhead expenses.
Net interest income at the Core Bank increased to $29.4 million during the fourth quarter of 2014, a $2.7 million, or 10%, increase over the fourth quarter of 2013. The Core Bank's net interest margin was 3.36% during the fourth quarter of 2014 compared to 3.27% during the fourth quarter of 2013.
Net interest income at the Core Bank, excluding the impact from the company's 2012 FDIC-assisted transactions, increased 11%.
Net interest income at the Core Bank, excluding the impact from the company's 2012 FDIC-assisted transactions, increased $2.8 million, or 11%, from the fourth quarter of 2013 to Q4 2014. While net interest income at the Core Bank continues to benefit from discount accretion on the loans it acquired in the company's 2012 FDIC-assisted transactions, this benefit continues to decline as the remaining loans from this transaction pay down or completely pay off.
Altogether, the company earned $978,000 in discount accretion from its 2012 FDIC-assisted transactions during the fourth quarter of 2014 compared to $1.1 million during the fourth quarter of 2013. Accretion income from the 2012 FDIC-assisted transactions contributed 11 and 13 basis points to the Core Bank's net interest margin during these two periods.
The Core Bank's provision for loan and lease losses was $1.4 million for the fourth quarter of 2014 compared to $552,000 during the fourth quarter of 2013. Provision expense for the fourth quarter of 2014 primarily represented an increase in general loan loss reserves, driven by the previously mentioned strong growth in the Core Bank's loan portfolio. The Core Bank's overall credit metrics in both periods continued to compare favorably to peer. ■