Republic Bancorp (NASDAQ:RBCAA) Reports 12% Rise in Q3 2025 Net Income

2 min read | October 20, 2025 06:35 AM BST | By Sonal Goyal

Highlights

  • Q3 2025 net income rose 12% year-over-year to USD 29.7 million.
  • Diluted EPS increased 11% to USD 1.52 per share.
  • Return on average assets stood at 1.69%, and return on average equity at 10.91%.

Republic Bancorp, Inc. (NASDAQ:RBCAA) reported net income of USD 29.7 million for the third quarter of 2025, marking a 12% increase over the USD 26.5 million recorded in the same quarter last year. Diluted earnings per Class A common share rose 11% to USD 1.52, compared with USD 1.37 in Q3 2024.

The company achieved a return on average assets (ROA) of 1.69% and a return on average equity (ROE) of 10.91% for the quarter, reflecting continued profitability across core operations.

Core Bank Segment Leads Growth

The Core Bank contributed significantly to the quarterly performance, posting USD 19.8 million in net income—an increase of USD 2.7 million or 15% from the prior year’s USD 17.2 million. The improvement was primarily supported by higher net interest income and lower credit loss provisioning, partly offset by reduced noninterest income and higher operating expenses.

Net Interest Income and Margin Expansion

Net interest income at the Core Bank rose to USD 61.2 million in Q3 2025, up 12% from USD 54.6 million in Q3 2024. The Core Bank’s net interest margin (NIM) improved to 3.78%, compared with 3.53% a year earlier, aided by a decline in deposit costs.

Average interest-bearing deposit balances increased 7% year-over-year, while the weighted-average cost of total interest-bearing deposits fell from 2.77% to 2.32%. Growth was largely driven by a USD 277 million rise in business and consumer money market accounts.

Average interest-earning assets also rose, including warehouse balances which increased 9% to USD 575 million. The weighted-average yield on traditional bank loans expanded to 5.71%, while investment yields improved to 4.07% from 3.20% a year ago, as the company shifted more excess cash into longer-term securities offering better returns.

Provision for Expected Credit Losses

The Core Bank recorded a net credit of USD 479,000 for expected credit losses in Q3 2025, compared with a net charge of USD 1.6 million in Q3 2024. The improvement was driven by minimal net charge-offs and reductions in both traditional loan and warehouse balances.

As a percentage of total loans, the Core Bank’s allowance for credit losses declined by two basis points from September 30, 2024, to September 30, 2025.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next