Republic Bancorp profits decline 28 percent, still 'solid'
July 22, 2006 - Louisville, Kentucky
Louisville's Republic Bancorp yesterday reported a 28 percent profit decline for the quarter ended June 30, primarily because of the discontinuation of the company's payday-loan business.
Excluding the payday-loan business, the bank holding company had profit of nearly $6 million, down from $6.6 million a year earlier.
"Although we did not post record earnings, we believe our results were solid and are a testament to the core banking principles that we practice," Steve Trager, Republic chief executive, said in a statement. He cited the slight difference between the short-term interest rates it pays for deposits and the long-term rates it charges for loans as pressuring profits.
The company said its loan portfolio, particularly residential real estate, has lifted banking net interest income.
Noninterest-income increases included a 24 percent increase in deposit service charges, primarily from new checking accounts.
Net income in the quarter was $6 million, or 30 cents per share.
A year earlier, the company's net was $7.9 million, or 32 cents per share.
Republic's stock closed yesterday down 12 cents at $20.18.
The Courier-Journal, Staff Writer
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