Overview

• US regional bank's Q1 adjusted net income rose 3% yr/yr, driven by core banking strength

• Reported Q1 net income and diluted EPS fell 10% yr/yr due to nonrecurring items

• Processing segment net income declined, mainly from nonrenewal of large Tax Provider contract

Outlook

• Company did not provide specific guidance for future quarters or full-year results

Result Drivers

• NET INTEREST INCOME GROWTH - Core Bank net interest income rose 12% yr/yr, driven by lower deposit costs, higher yields on investments, and increased average loan balances

• EXPENSE MANAGEMENT - Flat adjusted noninterest expenses and cost savings from core system conversion supported Core Bank performance

• PROCESSING SEGMENT DECLINE - Processing Group net income fell, mainly due to nonrenewal of large Tax Provider contract and lower activity in refund-related products

Company press release: ID:nBw4YMKXLa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Republic Bancorp Inc is $78.00, about 7.6% above its April 22 closing price of $72.46

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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