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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.
