Republic Bancorp Reports Solid Third Quarter Results Highlighted by Continued Strong Core Banking Net Interest Income Expansion
LOUISVILLE, Ky., October 23, 2026--Republic Bancorp, Inc. ("Republic" or the "Company") reported third quarter 2026 net income and Diluted Earnings per Class A Common Share ("Diluted EPS") of $31.1 million and $1.59, representing increases of 4% and 5% from the $29.7 million and $1.52 reported for the third quarter of 2025. As a result, the Company achieved a return on average assets ("ROA") and a return on average equity ("ROE") of 1.74% and 10.48% for the third quarter of 2026.
Logan Pichel, President and Chief Executive Officer of the Bank, commented, "Republic delivered another quarter of solid financial performance, reflecting the strength, consistency and earnings power of our Core Banking(1) franchise. Our Core Bank's outstanding financial performance was driven by strong loan growth across our core markets and lending categories, combined with net interest income expansion, disciplined expense management, and solid credit quality. Our relationship-driven business model, exceptional client engagement, and consistent execution continue to differentiate Republic and position us for sustained success. As we enter the final quarter of the year, we remain well-positioned to capitalize on growth opportunities, deepen client relationships, and build on this momentum as we work toward another year of exceptional financial performance.
"Despite operating in a lower-rate environment for most of the past year, our Core Banking segment increased its third quarter 2026 net interest income by $4.8 million, or 8%, over the third quarter of 2025, while expanding its net interest margin 25 basis points to 4.03%. These results reflected lower funding costs, a favorable shift in earning assets, disciplined pricing actions, and proactive balance sheet management.
"On September 16, 2026, the Federal Reserve increased the Federal Funds Target Rate by 25 basis points to a range of 3.75%-4.00%, marking its first rate increase since July 2023 and the first monetary policy change since December 2025. This return to a tightening cycle reinforces the importance of strong balance sheet management and effective pricing execution. Based on the Company's current interest rate risk position, we believe the higher-rate environment will provide incremental growth to our Core Bank's net interest income over the near-term.
"During the third quarter, we began realizing the benefits of a new Republic Payment Solutions ('RPS')(1) program launched late in the second quarter, following several years of strategic planning and successful cross-functional execution. The program generated approximately $180 million of lower-cost average deposits during the quarter, enhancing liquidity, diversifying our funding base, favorably lowering our loan-to-deposit ratio, and contributing incremental fee income.