Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Entity Registrant Name | REPUBLIC BANCORP INC /KY/ | |
Entity Central Index Key | 0000921557 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 18,739,086 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 2,207,626 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 473,779 | $ 351,474 |
Available-for-sale debt securities | 380,356 | 475,738 |
Held-to-maturity debt securities (fair value of $64,433 in 2019 and $64,858 in 2018) | 63,902 | 65,227 |
Equity securities with readily determinable fair value | 3,254 | 2,806 |
Mortgage loans held for sale, at fair value | 13,883 | 8,971 |
Reverse mortgage loans held for sale, at the lower of cost or fair value | 12,457 | |
Consumer loans held for sale, at the lower of cost or fair value | 37,609 | 12,838 |
Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value | 111,745 | |
Loans (loans carried at fair value of $1,302 in 2019 and $1,922 in 2018) | 4,410,669 | 4,148,227 |
Allowance for loan and lease losses | (45,983) | (44,675) |
Loans, net | 4,364,686 | 4,103,552 |
Federal Home Loan Bank stock, at cost | 32,242 | 32,067 |
Premises and equipment, net | 42,647 | 43,126 |
Premises, held for sale | 1,552 | 1,694 |
Right-of-use assets | 37,450 | |
Goodwill | 16,300 | 16,300 |
Other real estate owned | 1,095 | 160 |
Bank owned life insurance | 65,642 | 64,883 |
Other assets and accrued interest receivable | 64,535 | 61,568 |
TOTAL ASSETS | 5,723,134 | 5,240,404 |
Deposits: | ||
Noninterest-bearing | 1,003,793 | 1,003,969 |
Interest-bearing | 2,557,127 | 2,452,176 |
Deposits held for assumption in connection with sale of banking centers | 152,954 | |
Total deposits | 3,713,874 | 3,456,145 |
Securities sold under agreements to repurchase and other short-term borrowings | 226,002 | 182,990 |
Operating lease liabilities | 38,852 | |
Federal Home Loan Bank advances | 915,000 | 810,000 |
Subordinated note | 41,240 | 41,240 |
Other liabilities and accrued interest payable | 56,738 | 60,095 |
Total liabilities | 4,991,706 | 4,550,470 |
Commitments and contingent liabilities (Footnote 9) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, no par value | ||
Class A Common Stock and Class B Common Stock, no par value | 4,907 | 4,900 |
Additional paid in capital | 141,525 | 141,018 |
Retained earnings | 581,734 | 545,013 |
Accumulated other comprehensive income (loss) | 3,262 | (997) |
Total stockholders’ equity | 731,428 | 689,934 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 5,723,134 | $ 5,240,404 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity debt securities, fair value (in dollars) | $ 64,433 | $ 64,858 |
Loans carried fair value | $ 1,369 | $ 1,922 |
Preferred stock, no par value | $ 0 | $ 0 |
Class A Common Stock | ||
Common Stock, no par value | 0 | 0 |
Class B Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 60,211 | $ 53,944 | $ 137,039 | $ 123,571 |
Taxable investment securities | 3,284 | 2,708 | 6,875 | 5,342 |
Federal Home Loan Bank stock and other | 2,169 | 1,704 | 4,383 | 3,276 |
Total interest income | 65,664 | 58,356 | 148,297 | 132,189 |
INTEREST EXPENSE: | ||||
Deposits | 6,903 | 3,934 | 13,651 | 7,294 |
Securities sold under agreements to repurchase and other short-term borrowings | 330 | 222 | 751 | 435 |
Federal Home Loan Bank advances | 4,062 | 2,723 | 6,792 | 4,997 |
Subordinated note | 423 | 393 | 858 | 714 |
Total interest expense | 11,718 | 7,272 | 22,052 | 13,440 |
NET INTEREST INCOME | 53,946 | 51,084 | 126,245 | 118,749 |
Provision for loan and lease losses | 4,460 | 4,932 | 21,691 | 22,187 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 49,486 | 46,152 | 104,554 | 96,562 |
NONINTEREST INCOME: | ||||
Service charges on deposit accounts | 3,598 | 3,574 | 6,901 | 7,129 |
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 |
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 |
Interchange fee income | 3,257 | 2,891 | 6,014 | 5,558 |
Program fees | 1,037 | 1,323 | 2,111 | 3,019 |
Increase in cash surrender value of bank owned life insurance | 377 | 379 | 759 | 750 |
Net gains on other real estate owned | 90 | 320 | 220 | 452 |
Other | 721 | 1,020 | 1,853 | 2,772 |
Total noninterest income | 15,125 | 14,296 | 42,542 | 41,841 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 25,286 | 22,766 | 50,362 | 46,600 |
Occupancy and equipment, net | 6,472 | 6,391 | 13,056 | 12,612 |
Communication and transportation | 1,071 | 1,241 | 2,232 | 2,623 |
Marketing and development | 1,278 | 1,283 | 2,380 | 2,199 |
FDIC insurance expense | 295 | 345 | 743 | 870 |
Bank franchise tax expense | 935 | 860 | 3,431 | 3,378 |
Data processing | 2,217 | 2,443 | 4,313 | 4,829 |
Interchange related expense | 1,302 | 1,098 | 2,617 | 2,105 |
Supplies | 582 | 303 | 1,066 | 684 |
Other real estate owned and other repossession expense | 148 | 16 | 194 | 61 |
Legal and professional fees | 844 | 728 | 1,730 | 1,771 |
Other | 2,998 | 3,158 | 6,813 | 5,945 |
Total noninterest expense | 43,428 | 40,632 | 88,937 | 83,677 |
INCOME BEFORE INCOME TAX EXPENSE | 21,183 | 19,816 | 58,159 | 54,726 |
INCOME TAX EXPENSE | 3,176 | 4,150 | 10,636 | 11,591 |
NET INCOME | $ 18,007 | $ 15,666 | $ 47,523 | $ 43,135 |
Class A Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | $ 0.86 | $ 0.75 | $ 2.29 | $ 2.08 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | 0.86 | 0.74 | 2.28 | 2.06 |
Class B Common Stock | ||||
BASIC EARNINGS PER SHARE: | ||||
Basic earnings per share (in dollars per share) | 0.79 | 0.68 | 2.08 | 1.89 |
DILUTED EARNINGS PER SHARE: | ||||
Diluted earnings per share (in dollars per share) | $ 0.78 | $ 0.68 | $ 2.07 | $ 1.88 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 18,007 | $ 15,666 | $ 47,523 | $ 43,135 |
OTHER COMPREHENSIVE INCOME | ||||
Change in fair value of derivatives used for cash flow hedges | (146) | 77 | (215) | 276 |
Reclassification amount for net derivative losses realized in income | (13) | 9 | (32) | 35 |
Change in unrealized (loss) gain on AFS debt securities | 2,014 | (546) | 5,673 | (2,663) |
Adjustment for adoption of ASU 2016-01 | (428) | |||
Change in unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings | (1) | (15) | (34) | (17) |
Total other comprehensive income (loss) before income tax | 1,854 | (475) | 5,392 | (2,797) |
Tax effect | (389) | 99 | (1,133) | 588 |
Total other comprehensive income (loss), net of tax | 1,465 | (376) | 4,259 | (2,209) |
COMPREHENSIVE INCOME | $ 19,472 | $ 15,290 | $ 51,782 | $ 40,926 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common StockClass A Common Stock | Common StockClass B Common Stock | Common Stock | Additional Paid In Capital. | Retained EarningsClass A Common Stock | Retained EarningsClass B Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Class A Common Stock | Class B Common Stock | Total |
Balance at beginning of period at Dec. 31, 2017 | $ 4,902 | $ 139,406 | $ 487,700 | $ 416 | $ 632,424 | ||||||
Balance (in shares) at Dec. 31, 2017 | 18,607 | 2,243 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 43,135 | 43,135 | |||||||||
Net change in accumulated other comprehensive income | (1,871) | (1,871) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (9,035) | $ (981) | $ (9,035) | $ (981) | |||||||
Stock options exercised, net of shares redeemed | 48 | 48 | |||||||||
Stock options exercised, net of shares redeemed (in shares) | 2 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 28 | (28) | |||||||||
Net change in notes receivable on Class A Common Stock | 69 | 69 | |||||||||
Deferred director compensation expense - Class A Common Stock | 1 | 102 | 103 | ||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 5 | ||||||||||
Stock-based awards, Performance stock units | 53 | 53 | |||||||||
Stock-based awards, Restricted stock | 318 | 318 | |||||||||
Stock-based awards, Restricted stock (in shares) | 35 | ||||||||||
Stock-based awards, Stock options | 118 | 118 | |||||||||
Balance at end of period at Jun. 30, 2018 | 4,903 | 140,114 | 520,784 | (1,793) | 664,008 | ||||||
Balance (in shares) at Jun. 30, 2018 | 18,677 | 2,215 | |||||||||
Balance at beginning of period at Mar. 31, 2018 | 4,902 | 139,646 | 510,123 | (1,417) | 653,254 | ||||||
Balance (in shares) at Mar. 31, 2018 | 18,645 | 2,243 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 15,666 | 15,666 | |||||||||
Net change in accumulated other comprehensive income | (376) | (376) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (4,518) | (487) | (4,518) | (487) | |||||||
Stock options exercised, net of shares redeemed | 48 | 48 | |||||||||
Stock options exercised, net of shares redeemed (in shares) | 2 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 28 | (28) | |||||||||
Net change in notes receivable on Class A Common Stock | 36 | 36 | |||||||||
Deferred director compensation expense - Class A Common Stock | 1 | 47 | 48 | ||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 2 | ||||||||||
Stock-based awards, Performance stock units | 27 | 27 | |||||||||
Stock-based awards, Restricted stock | 254 | 254 | |||||||||
Stock-based awards, Stock options | 56 | 56 | |||||||||
Balance at end of period at Jun. 30, 2018 | 4,903 | 140,114 | 520,784 | (1,793) | 664,008 | ||||||
Balance (in shares) at Jun. 30, 2018 | 18,677 | 2,215 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Adjustment for adoption | ASU 2016-01 | (35) | (338) | (373) | ||||||||
Balance at beginning of period at Dec. 31, 2018 | 4,900 | 141,018 | 545,013 | (997) | 689,934 | ||||||
Balance (in shares) at Dec. 31, 2018 | 18,675 | 2,213 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 47,523 | 47,523 | |||||||||
Net change in accumulated other comprehensive income | 4,259 | 4,259 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (9,865) | (1,061) | (9,865) | (1,061) | |||||||
Stock options exercised, net of shares redeemed | 8 | (110) | (102) | ||||||||
Stock options exercised, net of shares redeemed (in shares) | 34 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 5 | (5) | |||||||||
Repurchase of Class A Common Stock | (1) | (376) | (2) | (379) | |||||||
Repurchase of Class A Common Stock (in shares) | (8) | ||||||||||
Net change in notes receivable on Class A Common Stock | (192) | (192) | |||||||||
Deferred director compensation expense - Class A Common Stock | 106 | 106 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 5 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 226 | 226 | |||||||||
Employee stock purchase plan - Class A Common Stock | 235 | 235 | |||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 5 | ||||||||||
Stock-based awards, Performance stock units | (57) | (57) | |||||||||
Stock-based awards, Performance stock units (in shares) | 23 | ||||||||||
Stock-based awards, Restricted stock | 475 | 475 | |||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||
Stock-based awards, Stock options | 200 | 200 | |||||||||
Balance at end of period at Jun. 30, 2019 | 4,907 | 141,525 | 581,734 | 3,262 | 731,428 | ||||||
Balance (in shares) at Jun. 30, 2019 | 18,740 | 2,208 | |||||||||
Balance at beginning of period at Mar. 31, 2019 | 4,899 | 141,206 | 569,189 | 1,797 | 717,091 | ||||||
Balance (in shares) at Mar. 31, 2019 | 18,698 | 2,213 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 18,007 | 18,007 | |||||||||
Net change in accumulated other comprehensive income | 1,465 | 1,465 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (4,932) | $ (530) | $ (4,932) | $ (530) | |||||||
Stock options exercised, net of shares redeemed | 8 | (110) | (102) | ||||||||
Stock options exercised, net of shares redeemed (in shares) | 34 | ||||||||||
Conversion of Class B Common Stock to Class A Common Stock (in shares) | 5 | (5) | |||||||||
Net change in notes receivable on Class A Common Stock | (158) | (158) | |||||||||
Deferred director compensation expense - Class A Common Stock | 41 | 41 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 58 | 58 | |||||||||
Employee stock purchase plan - Class A Common Stock | 114 | 114 | |||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 2 | ||||||||||
Stock-based awards, Restricted stock | 295 | 295 | |||||||||
Stock-based awards, Restricted stock (in shares) | 1 | ||||||||||
Stock-based awards, Stock options | 79 | 79 | |||||||||
Balance at end of period at Jun. 30, 2019 | $ 4,907 | $ 141,525 | 581,734 | $ 3,262 | 731,428 | ||||||
Balance (in shares) at Jun. 30, 2019 | 18,740 | 2,208 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Adjustment for adoption | ASU 2016-02 | $ 126 | $ 126 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class A Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.264 | $ 0.242 | $ 0.528 | $ 0.484 |
Class B Common Stock | ||||
Dividend declared common stock, per share (in dollars per share) | $ 0.240 | $ 0.220 | $ 0.480 | $ 0.440 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 47,523 | $ 43,135 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization on investment securities | (21) | (231) |
Net accretion on loans and amortization of core deposit intangible and operating lease components | (1,833) | (1,863) |
Unrealized (gains) losses on equity securities with readily determinable fair value | (448) | 135 |
Depreciation of premises and equipment | 4,572 | 4,998 |
Amortization of mortgage servicing rights | 733 | 731 |
Provision for loan and lease losses | 21,691 | 22,187 |
Net loss on sale of mortgage loans held for sale | (3,478) | (1,862) |
Origination of mortgage loans held for sale | (122,696) | (84,124) |
Proceeds from sale of mortgage loans held for sale | 121,262 | 79,094 |
Net gain on sale of consumer loans held for sale | (2,618) | (2,836) |
Origination of consumer loans held for sale | (346,413) | (373,409) |
Proceeds from sale of consumer loans held for sale | 324,260 | 371,552 |
Net gain realized on sale of other real estate owned | (220) | (452) |
Impairment of premises held for sale | 132 | 230 |
Deferred compensation expense - Class A Common Stock | 332 | 103 |
Stock-based awards expense - Class A Common Stock | 618 | 489 |
Increase in cash surrender value of bank owned life insurance | (759) | (750) |
Net change in other assets and liabilities: | ||
Accrued interest receivable | (774) | (476) |
Accrued interest payable | 491 | (30) |
Other assets | 581 | 2,778 |
Other liabilities | (7,775) | 3,574 |
Net cash provided by operating activities | 35,160 | 62,973 |
INVESTING ACTIVITIES: | ||
Purchases of available-for-sale debt securities | (99,026) | |
Purchases of held-to-maturity debt securities | (4,934) | |
Proceeds from calls, maturities and paydowns of available-for-sale debt securities | 101,051 | 204,811 |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 1,315 | 2,400 |
Net change in outstanding warehouse lines of credit | (269,099) | (108,269) |
Net change in other loans | (137,490) | (89,503) |
Proceeds from redemption of Federal Home Loan Bank stock | 2,102 | |
Purchase of Federal Home Loan Bank stock | (2,277) | |
Proceeds from sales of other real estate owned | 580 | 751 |
Net purchases of premises and equipment | (4,083) | (6,108) |
Net cash used in investing activities | (307,901) | (99,878) |
FINANCING ACTIVITIES: | ||
Net change in deposits | 257,729 | 40,211 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | 43,012 | (28,730) |
Payments of Federal Home Loan Bank advances | (565,000) | (377,500) |
Proceeds from Federal Home Loan Bank advances | 670,000 | 500,000 |
Repurchase of Class A Common Stock | (379) | |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 235 | 48 |
Net proceeds from Class A Common Stock options exercised | (102) | |
Cash dividends paid | (10,449) | (9,519) |
Net cash provided by (used in) financing activities | 395,046 | 124,510 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 122,305 | 87,605 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 351,474 | 299,351 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 473,779 | 386,956 |
Cash paid during the period for: | ||
Interest | 21,561 | 13,470 |
Income taxes | 6,726 | 8,177 |
SUPPLEMENTAL NONCASH DISCLOSURES: | ||
Transfers from loans to real estate acquired in settlement of loans | 1,295 | 184 |
Transfers from loans held for sale to held for investment | 2,237 | |
Transfers from loans held for investment to held for sale | 124,202 | |
Unfunded commitments in low-income-housing investments | $ 9,033 | |
Right-of-use assets recorded upon adoption of ASU 2016-02 | $ 40,202 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiaries, Republic Bank & Trust Company and Republic Insurance Services, Inc. As used in this filing, the terms “Republic,” the “Company,” “we,” “our,” and “us” refer to Republic Bancorp, Inc., and, where the context requires, Republic Bancorp, Inc. and its subsidiaries. The term the “Bank” refers to the Company’s subsidiary bank: Republic Bank & Trust Company. The term the “Captive” refers to the Company’s insurance subsidiary: Republic Insurance Services, Inc. All significant intercompany balances and transactions are eliminated in consolidation. Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through five reportable segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the United States. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. Republic Bancorp Capital Trust is a Delaware statutory business trust that is a wholly-owned unconsolidated finance subsidiary of Republic Bancorp, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, refer to the consolidated financial statements and footnotes thereto included in Republic’s Form 10-K for the year ended December 31, 2018. As of June 30, 2019, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. The Bank’s Correspondent Lending channel and the Company’s national branchless banking platform, MemoryBank ® , are considered part of the Traditional Banking segment. Core Bank Traditional Banking segment — The Traditional Banking segment provides traditional banking products primarily to customers in the Company’s market footprint. As of June 30, 2019, Republic had 45 full-service banking centers and two LPOs with locations as follows: Kentucky — 32 Metropolitan Louisville — 18 Central Kentucky — 9 Elizabethtown — 1* Frankfort — 1* Georgetown — 1 Lexington — 5 Shelbyville — 1 Western Kentucky — 2 Owensboro — 2* Northern Kentucky — 3 Covington — 1 Crestview Hills — 1 Florence — 1 Southern Indiana — 3 Floyds Knobs — 1 Jeffersonville — 1 New Albany — 1 Metropolitan Tampa, Florida — 8** Metropolitan Cincinnati, Ohio — 1 Metropolitan Nashville, Tennessee — 3** * The Company agreed to sell banking center(s) in July 2019. See Note 18 in this section of the filing for additional information. ** Includes an LPO Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population. Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing source for the Bank. Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, fees charged to clients for trust services, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, interchange related expenses, marketing and development expenses, FDIC insurance expense, franchise tax expense and various other general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies and actions of regulatory agencies. The Traditional Bank has acquired for investment single family, first lien mortgage loans that meet the Traditional Bank’s specifications through its Correspondent Lending channel. Substantially all loans purchased through the Correspondent Lending channel are purchased at a premium. Warehouse Lending segment — Through its Warehouse Lending segment, the Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single family, first lien residential real estate loans. The credit facility enables the mortgage banking clients to close single family, first lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days. Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Mortgage Banking segment — Mortgage Banking activities primarily include 15-, 20- and 30-year fixed-term single family, first lien residential real estate loans that are originated and sold into the secondary market, primarily to the FHLMC and the FNMA. The Bank typically retains servicing on loans sold into the secondary market. Administration of loans with servicing retained by the Bank includes collecting principal and interest payments, escrowing funds for property taxes and property insurance, and remitting payments to secondary market investors. The Bank receives fees for performing these standard servicing functions. Republic Processing Group Tax Refund Solutions segment — Through the TRS segment, the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the United States, as well as tax-preparation software providers (collectively, the “Tax Providers”). Substantially all of the business generated by the TRS segment occurs in the first half of the year. The TRS segment traditionally operates at a loss during the second half of the year, during which time the segment incurs costs preparing for the upcoming year’s tax season. RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of revenue share, are reported as noninterest income under the line item “Net refund transfer fees.” The EA tax credit product is a loan that allows a taxpayer to borrow funds as an advance of a portion of their tax refund. EA features consistent during 2018 and 2019: · Offered only during the first two months of each year; · No requirement that the taxpayer pays for another bank product, such as an RT; · Multiple funds disbursement methods, including direct deposit, prepaid card, check, or Walmart Direct2Cash ® , based on the taxpayer-customer’s election; · Repayment of the EA to the Bank is deducted from the taxpayer’s tax refund proceeds; and · If an insufficient refund to repay the EA occurs: o there is no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. EA features modified from 2018 to 2019: · During 2019, the taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $6,250. This compares to a maximum loan amount of $3,500 during 2018; and · During 2018, EA fees were charged only to the Tax Providers. In 2019, the fee charged to the Tax Providers was lowered; and a direct fee to the taxpayer was charged. The APR to the taxpayer for his or her portion of the total fee equated to less than 36% for all offering tiers. The Company reports fees paid for the EA product as interest income on loans. EAs are generally repaid within three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. EAs do not have a contractual due date but the Company considers an EA delinquent if it remains unpaid three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. Provisions for loan losses on EAs are estimated when advances are made, with provisions for all probable EA losses made in the first quarter of each year. Unpaid EAs are charged off by June 30 th of each year, with EAs collected during the second half of each year recorded as recoveries of previously charged off loans. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the EA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. Republic Payment Solutions — RPS is managed and operated within the TRS segment. The RPS division is an issuing bank offering general-purpose reloadable prepaid cards through third-party service providers. For the projected near-term, as the prepaid card program matures, the operating results of the RPS division are expected to be immaterial to the Company’s overall results of operations and will be reported as part of the TRS segment. The RPS division will not be considered a separate reportable segment until such time, if any, that it meets quantitative reporting thresholds. The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Republic Credit Solutions segment — Through the RCS segment, the Bank offers consumer credit products. In general, the credit products are unsecured, small dollar consumer loans and are dependent on various factors including the consumer’s ability to repay. RCS loans typically earn a higher yield but also have higher credit risk compared to loans originated through the Traditional Banking segment, with a significant portion of RCS clients considered subprime or near-prime borrowers. Additional information regarding consumer loan products offered through RCS follows: · RCS line-of-credit product – The Bank originates a line-of-credit product to generally subprime borrowers across the United States with certain services provided by Elevate Credit, Inc., its third-party servicer provider. RCS sells participation interests equal to 90% of the balances generated within three business days to a third-party special purpose entity and retains the remaining 10% interest. The line-of-credit product represents the substantial majority of RCS activity. Loan balances held for sale are carried at the lower of cost or fair value. · RCS healthcare receivables product – The Bank originates healthcare-receivables products across the United States through two different third-party service providers. In one program, the Bank retains 100% of the receivables originated. In the other program, the Bank retains 100% of the receivables originated in some instances, and in other instances, sells 100% of the receivables within one month of origination. Loan balances held for sale are carried at the lower of cost or fair value. From the fourth quarter of 2015 through the first quarter of 2018, the Bank piloted through RCS a credit-card product to generally subprime borrowers across the United States through one third-party marketer/servicer. For outstanding cards, RCS sold 90% of the balances generated within two business days of each transaction occurrence to a special purpose entity related to its third-party marketer/servicer and retained the remaining 10% interest. During the fourth quarter of 2018, the Bank and its third-party marketer/servicer finalized an agreement to sell 100% of the existing portfolio to an unrelated third party. The sale of the RCS credit-card portfolio receivables was settled in January 2019 and all accounts and related assets were transferred in March 2019. The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale of RCS loans are reported as noninterest income under “Program fees.” Accounting Standards Updates Issued The following ASUs were issued prior to June 30, 2019 and are considered relevant to the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the Company has been disclosed in prior Company financial statements, it will not be re-disclosed below. ASU. No. Topic Nature of Update Date Adoption Required Permitted Adoption Methods Expected Financial Statement Impact 2016-13 Financial Instruments – Credit Losses (Topic 326) This ASU amends guidance on reporting credit losses for assets held at amortized-cost basis and available-for-sale debt securities. January 1, 2020 Modified-retrospective approach. As a result of this ASU, the Company expects an as yet undetermined increase in its allowance for credit losses. A committee formed by the Company to oversee its transition to a current expected credit losses (“CECL”) methodology has analyzed the Company’s loan-level data and preliminarily concluded that no additional loan level segmentation beyond its current methodology segmentation would be warranted under CECL. The Company is also currently performing iterations of its allowance calculation under a “beta” CECL model provided by the same third-party software solution currently-employed to calculate the Company's allowance for loan and lease losses. 2019-04 Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. Based on areas amended. Based on areas amended. Immaterial 2019-05 Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief This ASU provides the fair value option for certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses. January 1, 2020 Modified-retrospective approach. The Company has this ASU under consideration. Accounting Standards Updates Adopted The following ASUs were adopted by the Company during the six months ended June 30, 2019: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2016-02 Leases (Topic 842) Most leases are considered operating leases, which are not accounted for on the lessees’ balance sheets. The significant change under this ASU is that those operating leases will be recorded on the balance sheet. January 1, 2019 Modified-retrospective approach, which includes a number of optional practical expedients. The Company adopted this ASU on January 1, 2019 and upon adoption recorded $40 million of right-of-use lease assets and $42 million of operating lease liabilities on its balance sheet. The adoption of this ASU did not have a meaningful impact on the Company's performance metrics, including regulatory capital ratios and return on average assets. Additionally, the Company does not believe that the adoption of this ASU by its clients will have a significant impact on the Company's ability to underwrite credit when client financial statements are presented inclusive of the requirements of this ASU. See Note 7 in this section of the filing regarding disclosures by the Company to comply with this ASU. 2018-10 Codification Improvements to Topic 842, Leases This ASU affects narrow aspects of the guidance issued in the amendments in ASU 2016-02. January 1, 2019 Adoption should conform to the adoption of ASU 2016-02 above. See Note 7 in this section of the filing regarding disclosures by the Company to comply with this ASU. 2018-11 Leases (Topic 842): Targeted Improvements This ASU provides the Company with an additional (and optional) transition method to adopt ASU 2016-02. This ASU also provides the Company with a practical expedient to not separate non-lease components from the associated lease component under certain circumstances. January 1, 2019 Adoption should conform to the adoption of ASU 2016-02 above. The Company elected the optional transition method permitted by this ASU, allowing the Company to adopt ASU 2016-02, effective January 1, 2019 with a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. 2017-12 Derivatives and Hedging (Topic 815) The amendments in this ASU make certain targeted improvements to simplify the application of hedge accounting. January 1, 2019 Prospectively. Immaterial |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2019 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES Available-for-Sale Debt Securities The gross amortized cost and fair value of AFS debt securities and the related gross unrealized gains and losses recognized in AOCI were as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2019 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 139,608 $ 20 $ (293) $ 139,335 Private label mortgage backed security 2,285 1,330 — 3,615 Mortgage backed securities - residential 151,504 2,911 (223) 154,192 Collateralized mortgage obligations 69,143 375 (139) 69,379 Corporate bonds 10,000 — (165) 9,835 Trust preferred security 3,554 446 — 4,000 Total available-for-sale debt securities $ 376,094 $ 5,082 $ (820) $ 380,356 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 218,502 $ 25 $ (1,654) $ 216,873 Private label mortgage backed security 2,348 1,364 — 3,712 Mortgage backed securities - residential 168,992 1,470 (1,253) 169,209 Collateralized mortgage obligations 73,740 222 (1,151) 72,811 Corporate bonds 10,000 — (942) 9,058 Trust preferred security 3,533 542 — 4,075 Total available-for-sale debt securities $ 477,115 $ 3,623 $ (5,000) $ 475,738 Held-to-Maturity Debt Securities The carrying value, gross unrecognized gains and losses, and fair value of HTM debt securities were as follows: Gross Gross Carrying Unrecognized Unrecognized Fair June 30, 2019 (in thousands) Value Gains Losses Value Mortgage backed securities - residential $ 129 $ 8 $ — $ 137 Collateralized mortgage obligations 18,232 116 (17) 18,331 Corporate bonds 45,079 441 (17) 45,503 Obligations of state and political subdivisions 462 — — 462 Total held-to-maturity debt securities $ 63,902 $ 565 $ (34) $ 64,433 Gross Gross Carrying Unrecognized Unrecognized Fair December 31, 2018 (in thousands) Value Gains Losses Value Mortgage backed securities - residential $ 132 $ 8 $ — $ 140 Collateralized mortgage obligations 19,544 178 (46) 19,676 Corporate bonds 45,088 16 (514) 44,590 Obligations of state and political subdivisions 463 — (11) 452 Total held-to-maturity debt securities $ 65,227 $ 202 $ (571) $ 64,858 Sales of Available-for-Sale Debt Securities During the three and six months ended June 30, 2019 and 2018, there were no gains or losses on sales or calls of AFS debt securities. Debt Securities by Contractual Maturity The amortized cost and fair value of debt securities by contractual maturity at June 30, 2019 follow. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are detailed separately. Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Carrying Fair June 30, 2019 (in thousands) Cost Value Value Value Due in one year or less $ 77,383 $ 77,167 $ 5,075 $ 5,103 Due from one year to five years 72,225 72,003 35,522 35,935 Due from five years to ten years — — 4,944 4,927 Due beyond ten years 3,554 4,000 — — Private label mortgage backed security 2,285 3,615 — — Mortgage backed securities - residential 151,504 154,192 129 137 Collateralized mortgage obligations 69,143 69,379 18,232 18,331 Total debt securities $ 376,094 $ 380,356 $ 63,902 $ 64,433 Unrealized-Loss Analysis on Debt Securities Debt securities with unrealized losses at June 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ — $ 107,091 $ (293) $ 107,091 $ (293) Mortgage backed securities - residential — — 39,033 (223) 39,033 (223) Collateralized mortgage obligations 4,189 (5) 20,687 (134) 24,876 (139) Corporate bonds — — 9,835 (165) 9,835 (165) Total available-for-sale debt securities $ 4,189 $ (5) $ 176,646 $ (815) $ 180,835 $ (820) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2018 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ 71,627 $ (598) $ 106,136 $ (1,056) $ 177,763 $ (1,654) Mortgage backed securities - residential 43,691 (484) 32,003 (769) 75,694 (1,253) Collateralized mortgage obligations 16,487 (473) 31,071 (678) 47,558 (1,151) Corporate bonds 9,058 (942) — — 9,058 (942) Total available-for-sale debt securities $ 140,863 $ (2,497) $ 169,210 $ (2,503) $ 310,073 $ (5,000) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Held-to-maturity debt securities: Collateralized mortgage obligations $ — $ — $ 5,213 $ (17) $ 5,213 $ (17) Corporate bonds 4,927 (17) — — 4,927 (17) Total held-to-maturity debt securities: $ 4,927 $ (17) $ 5,213 $ (17) $ 10,140 $ (34) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2018 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Held-to-maturity debt securities: Collateralized mortgage obligations $ — $ — $ 5,539 $ (46) $ 5,539 $ (46) Corporate bonds 39,499 (514) — — 39,499 (514) Obligations of state and political subdivisions 105 (1) 347 (10) 452 (11) Total held-to-maturity debt securities: $ 39,604 $ (515) $ 5,886 $ (56) $ 45,490 $ (571) At June 30, 2019, the Bank’s security portfolio consisted of 168 securities, 37 of which were in an unrealized loss position. At December 31, 2018, the Bank’s security portfolio consisted of 182 securities, 65 of which were in an unrealized loss position. At June 30, 2019 and December 31, 2018, there were no holdings of debt securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity. Corporate Bonds From 2013 to 2018, the Bank purchased various floating-rate corporate bonds. These bonds were rated “investment grade” by accredited rating agencies as of their respective purchase dates. The total fair value of the Bank’s corporate bonds represented 10% and 10% of the Bank’s investment portfolio as of June 30, 2019 and December 31, 2018. During 2018, one of these bonds was downgraded to BBB+ (S&P/Fitch), driving a significant decrease in the bond’s market value. As of June 30, 2019, this bond reflected an unrealized loss of $165,000. The Bank does not intend to sell this bond, and it is likely that it will not be required to sell this bond before the bond’s anticipated recovery, therefore, management does not consider this bond to have OTTI. Mortgage Backed Securities and Collateralized Mortgage Obligations At June 30, 2019, with the exception of the $3.6 million private label mortgage backed security, all other mortgage backed securities and CMOs held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily the FHLMC and FNMA. At June 30, 2019 and December 31, 2018, there were gross unrealized losses of $362,000 and $2.4 million related to AFS mortgage backed securities and CMOs. Because these unrealized losses are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, management does not consider these securities to have OTTI. Trust Preferred Security During 2015, the Parent Company purchased a $3 million floating rate TRUP at a price of 68% of par. The coupon on this security is based on the 3-month LIBOR rate plus 159 basis points. The Company performed an initial analysis prior to acquisition and performs ongoing analysis of the credit risk of the underlying borrower in relation to its TRUP. Other-than-temporary impairment Unrealized losses for all debt securities are reviewed to determine whether the losses are “other-than-temporary.” Debt securities are evaluated for OTTI on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in value below amortized cost is other-than-temporary. In conducting this assessment, the Bank evaluates a number of factors including, but not limited to the following: · The length of time and the extent to which fair value has been less than the amortized cost basis; · The Bank’s intent to hold until maturity or sell the debt security prior to maturity; · An analysis of whether it is more-likely-than-not that the Bank will be required to sell the debt security before its anticipated recovery; · Adverse conditions specifically related to the security, an industry, or a geographic area; · The historical and implied volatility of the fair value of the security; · The payment structure of the security and the likelihood of the issuer being able to make payments; · Failure of the issuer to make scheduled interest or principal payments; · Any rating changes by a rating agency; and · Recoveries or additional decline in fair value subsequent to the balance sheet date. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a general lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized for the anticipated credit losses. The Bank owns one private label mortgage backed security with a total carrying value of $3.6 million at June 30, 2019. This security is mostly backed by “Alternative A” first lien mortgage loans, but also has an insurance “wrap” or guarantee as an added layer of protection to the security holder. This asset is illiquid, and as such, the Bank determined it to be a Level 3 security in accordance with ASC Topic 820, Fair Value Measurement. Based on this determination, the Bank utilized an income valuation model (“present value model”) approach, in determining the fair value of the security. This approach is beneficial for positions that are not traded in active markets or are subject to transfer restrictions, and/or where valuations are adjusted to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support for this investment. See additional discussion regarding the Bank’s private label mortgage backed security under Footnote 10 “Fair Value” in this section of the filing. Pledged Debt Securities Debt securities pledged to secure public deposits, securities sold under agreements to repurchase and debt securities held for other purposes, as required or permitted by law are as follows: (in thousands) June 30, 2019 December 31, 2018 Carrying amount $ 274,545 $ 240,590 Fair value 274,652 240,700 Equity Securities The carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values were as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2019 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 787 $ — $ 787 Community Reinvestment Act mutual fund 2,500 — (33) 2,467 Total equity securities with readily determinable fair values $ 2,500 $ 787 $ (33) $ 3,254 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 410 $ — $ 410 Community Reinvestment Act mutual fund 2,500 — (104) 2,396 Total equity securities with readily determinable fair values $ 2,500 $ 410 $ (104) $ 2,806 For equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company’s consolidated statements of income were as follows: Gains (Losses) Recognized on Equity Securities Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 126 $ 126 $ — $ 60 $ 60 Community Reinvestment Act mutual fund — 33 33 — (14) (14) Total equity securities with readily determinable fair value $ — $ 159 $ 159 $ — $ 46 $ 46 Gains (Losses) Recognized on Equity Securities Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 378 $ 378 $ — $ (84) $ (84) Community Reinvestment Act mutual fund — 70 70 — (51) (51) Total equity securities with readily determinable fair value $ — $ 448 $ 448 $ — $ (135) $ (135) |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2019 | |
LOANS HELD FOR SALE. | |
LOANS HELD FOR SALE | 3. LOANS HELD FOR SALE In the ordinary course of business, the Bank originates for sale mortgage loans and consumer loans. Mortgage loans originated for sale are primarily originated and sold into the secondary market through the Bank’s Mortgage Banking segment, while consumer loans originated for sale are originated and sold through the RCS segment. Additionally, as described below, the Company took possession of a portfolio of reverse mortgages during the second quarter of 2019 and sold this portfolio in July 2019. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 11 “Mortgage Banking Activities” of this section of the filing. Reverse Mortgage Loans Held for Sale, at the Lower of Cost or Fair Value During the second quarter of 2019, the Company reached an agreement with one of its Warehouse clients to take possession of certain first lien, residential reverse mortgage loans as payment for the approximate $12 million outstanding on the client’s Warehouse facility with the Bank. The Bank took possession of these loans as payment on the Warehouse facility after the client informed the Bank of its intent to close its business operations. These loans were sold by the Company in July 2019 at a loss of approximately $200,000. Consumer Loans Held for Sale, at the Lower of Cost or Fair Value RCS originates for sale 90% of its line-of-credit product and a portion of its hospital receivables product. Prior to the third quarter of 2018, RCS also originated for sale 90% of its credit-card product. During the third quarter of 2018, the Bank and its third-party marketer/servicer agreed to sell 100% of the existing RCS credit-card portfolio to an unrelated third party. As a result, the Bank reclassified 100% of its RCS credit-card portfolio into a held-for-sale category and charged this portfolio down to its estimated net realizable value. The Bank and its third-party marketer/servicer settled the sale of the RCS credit-card portfolio in January 2019. Ordinary gains or losses on the sale of RCS products are reported as a component of “Program fees.” Activity for consumer loans held for sale and carried at the lower of cost or market value was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 12,864 $ 7,380 $ 12,838 $ 8,551 Origination of consumer loans held for sale 200,327 198,903 346,413 356,424 Proceeds from the sale of consumer loans held for sale (176,759) (194,263) (324,260) (354,529) Net gain on sale of consumer loans held for sale 1,177 1,664 2,618 3,238 Balance, end of period $ 37,609 $ 13,684 $ 37,609 $ 13,684 Loans Held for Sale in Connection with Sale of Banking Centers, at the Lower of Cost or Fair Value See additional detail regarding loans held for sale in connection with Sale of Banking Centers under Footnote 18 “Subsequent Event” in this section of the filing. |
LOANS AND ALLOWANCE FOR LOAN AN
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | 6 Months Ended |
Jun. 30, 2019 | |
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | |
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | 4. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES The composition of the loan portfolio follows: (in thousands) June 30, 2019 December 31, 2018 Traditional Banking: Residential real estate: Owner occupied $ 907,826 $ 907,005 Owner occupied - correspondent* 78,943 94,827 Nonowner occupied 259,166 242,846 Commercial real estate 1,253,868 1,248,940 Construction & land development 190,984 175,178 Commercial & industrial 447,295 430,355 Lease financing receivables 17,271 15,031 Home equity 296,834 332,548 Consumer: Credit cards 17,429 19,095 Overdrafts 894 1,102 Automobile loans 63,553 63,475 Other consumer 53,768 46,642 Total Traditional Banking 3,587,831 3,577,044 Warehouse lines of credit* 725,337 468,695 Total Core Banking 4,313,168 4,045,739 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 711 13,744 Republic Credit Solutions 96,790 88,744 Total Republic Processing Group 97,501 102,488 Total loans** 4,410,669 4,148,227 Allowance for loan and lease losses (45,983) (44,675) Total loans, net $ 4,364,686 $ 4,103,552 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. The following table reconciles the contractually receivable and carrying amounts of loans: (in thousands) June 30, 2019 December 31, 2018 Contractually receivable $ 4,409,882 $ 4,147,249 Unearned income(1) (1,287) (1,038) Unamortized premiums(2) 487 588 Unaccreted discounts(3) (3,064) (3,400) Net unamortized deferred origination fees and costs(4) 4,651 4,828 Carrying value of loans $ 4,410,669 $ 4,148,227 (1) Unearned income relates to lease financing receivables. (2) Unamortized premiums predominately relate to loans acquired through the Bank’s Correspondent Lending channel. (3) Unaccreted discounts include accretable and non-accretable discounts and relate to loans acquired in the Bank’s 2016 Cornerstone acquisition and its 2012 FDIC-assisted transactions. (4) Primarily attributable to the Traditional Banking segment. Purchased Credit-Impaired Loans The following table reconciles the contractually required and carrying amounts of all PCI loans: (in thousands) June 30, 2019 December 31, 2018 Contractually required principal $ 3,882 $ 4,251 Non-accretable amount (1,379) (1,521) Accretable amount (50) (50) Carrying value of loans $ 2,453 $ 2,680 The following table presents a rollforward of the accretable amount on all PCI loans: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ (50) $ (140) $ (50) $ (140) Transfers between non-accretable and accretable* (26) (241) (142) (241) Net accretion into interest income on loans, including loan fees 26 281 142 281 Balance, end of period $ (50) $ (100) $ (50) $ (100) * Transfers are primarily attributable to changes in estimated cash flows of the underlying loans. Credit Quality Indicators The following tables include loans by risk category based on the Bank’s internal analyses. Risk categories are defined in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018: June 30, 2019 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 13,234 $ 11,043 $ — $ 165 $ 1,378 $ 25,820 Owner occupied - correspondent — — 848 — — — 848 Nonowner occupied — 491 1,310 — — — 1,801 Commercial real estate 1,246,137 3,632 3,226 — 873 — 1,253,868 Construction & land development 188,719 2,205 60 — — — 190,984 Commercial & industrial 440,956 1,264 5,051 — 24 — 447,295 Lease financing receivables 17,271 — — — — — 17,271 Home equity — — 2,333 — 3 7 2,343 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 80 — — — 80 Other consumer — — 386 — — 3 389 Total Traditional Banking 1,893,083 20,826 24,337 — 1,065 1,388 1,940,699 Warehouse lines of credit 725,337 — — — — — 725,337 Total Core Banking 2,618,420 20,826 24,337 — 1,065 1,388 2,666,036 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — Other TRS loans — — 13 — — — 13 Republic Credit Solutions — — 108 — — — 108 Total Republic Processing Group — — 121 — — — 121 Total rated loans $ 2,618,420 $ 20,826 $ 24,458 $ — $ 1,065 $ 1,388 $ 2,666,157 December 31, 2018 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 14,536 $ 11,690 $ — $ 170 $ 1,476 $ 27,872 Owner occupied - correspondent — — 382 — — — 382 Nonowner occupied — 575 1,889 — — — 2,464 Commercial real estate 1,239,576 5,281 3,162 — 921 — 1,248,940 Construction & land development 175,113 — 65 — — — 175,178 Commercial & industrial 428,897 813 620 — 25 — 430,355 Lease financing receivables 15,031 — — — — — 15,031 Home equity — — 1,361 — 5 81 1,447 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 91 — — — 91 Other consumer — — 462 — — 2 464 Total Traditional Banking 1,858,617 21,205 19,722 — 1,121 1,559 1,902,224 Warehouse lines of credit 468,695 — — — — — 468,695 Total Core Banking 2,327,312 21,205 19,722 — 1,121 1,559 2,370,919 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — Other TRS loans — — — — — — — Republic Credit Solutions — — 138 — — — 138 Total Republic Processing Group — — 138 — — — 138 Total rated loans $ 2,327,312 $ 21,205 $ 19,860 $ — $ 1,121 $ 1,559 $ 2,371,057 *The above tables exclude all non-classified residential real estate, home equity and consumer loans at the respective period ends. Allowance for Loan and Lease Losses The following table presents the activity in the Allowance by portfolio class: Allowance Rollforward Three Months Ended June 30, 2019 2018 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 5,579 $ (417) $ (367) $ 221 $ 5,016 $ 5,988 $ (116) $ (15) $ 178 $ 6,035 Owner occupied - correspondent 222 (25) — — 197 278 (15) — — 263 Nonowner occupied 1,720 48 (1) 8 1,775 1,461 93 (7) 5 1,552 Commercial real estate 10,235 329 — 2 10,566 9,460 352 — 3 9,815 Construction & land development 2,443 467 — — 2,910 2,720 80 — 25 2,825 Commercial & industrial 3,235 983 — 3 4,221 2,247 84 (17) 4 2,318 Lease financing receivables 150 31 — — 181 165 (5) — — 160 Home equity 3,337 (221) — 8 3,124 3,669 (180) (34) 203 3,658 Consumer: Credit cards 1,079 14 (76) 11 1,028 756 124 (95) 20 805 Overdrafts 892 250 (299) 51 894 791 296 (270) 61 878 Automobile loans 768 (61) — 1 708 706 (39) (4) 1 664 Other consumer 512 29 (48) 56 549 990 (151) (136) 73 776 Total Traditional Banking 30,172 1,427 (791) 361 31,169 29,231 523 (578) 573 29,749 Warehouse lines of credit 1,397 417 — — 1,814 1,335 250 — — 1,585 Total Core Banking 31,569 1,844 (791) 361 32,983 30,566 773 (578) 573 31,334 Republic Processing Group: Tax Refund Solutions: Easy Advances 13,381 39 (13,425) 5 — 9,572 (881) (8,773) 82 — Other TRS loans 149 353 (264) (6) 232 125 (7) (55) 4 67 Republic Credit Solutions 12,862 2,224 (2,683) 365 12,768 12,078 5,047 (3,769) 290 13,646 Total Republic Processing Group 26,392 2,616 (16,372) 364 13,000 21,775 4,159 (12,597) 376 13,713 Total $ 57,961 $ 4,460 $ (17,163) $ 725 $ 45,983 $ 52,341 $ 4,932 $ (13,175) $ 949 $ 45,047 Allowance Rollforward Six Months Ended June 30, 2019 2018 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 5,798 $ (657) $ (384) $ 259 $ 5,016 $ 6,182 $ (307) $ (39) $ 199 $ 6,035 Owner occupied - correspondent 237 (40) — — 197 292 (29) — — 263 Nonowner occupied 1,662 178 (73) 8 1,775 1,396 449 (319) 26 1,552 Commercial real estate 10,030 532 — 4 10,566 9,043 644 — 128 9,815 Construction & land development 2,555 355 — — 2,910 2,364 434 — 27 2,825 Commercial & industrial 2,873 1,343 — 5 4,221 2,198 210 (125) 35 2,318 Lease financing receivables 158 23 — — 181 174 (14) — — 160 Home equity 3,477 (378) (13) 38 3,124 3,754 (291) (34) 229 3,658 Consumer: Credit cards 1,140 79 (226) 35 1,028 607 359 (188) 27 805 Overdrafts 1,102 269 (593) 116 894 974 313 (559) 150 878 Automobile loans 724 (23) — 7 708 687 (20) (4) 1 664 Other consumer 591 (65) (114) 137 549 1,162 (286) (256) 156 776 Total Traditional Banking 30,347 1,616 (1,403) 609 31,169 28,833 1,462 (1,524) 978 29,749 Warehouse lines of credit 1,172 642 — — 1,814 1,314 271 — — 1,585 Total Core Banking 31,519 2,258 (1,403) 609 32,983 30,147 1,733 (1,524) 978 31,334 Republic Processing Group: Tax Refund Solutions: Easy Advances — 13,420 (13,425) 5 — — 12,396 (12,478) 82 — Other TRS loans 107 406 (281) — 232 12 105 (55) 5 67 Republic Credit Solutions 13,049 5,607 (6,507) 619 12,768 12,610 7,953 (7,465) 548 13,646 Total Republic Processing Group 13,156 19,433 (20,213) 624 13,000 12,622 20,454 (19,998) 635 13,713 Total $ 44,675 $ 21,691 $ (21,616) $ 1,233 $ 45,983 $ 42,769 $ 22,187 $ (21,522) $ 1,613 $ 45,047 Nonperforming Loans and Nonperforming Assets Detail of nonperforming loans, nonperforming assets and select credit quality ratios follows: (dollars in thousands) June 30, 2019 December 31, 2018 Loans on nonaccrual status* $ 19,238 $ 15,993 Loans past due 90-days-or-more and still on accrual** 166 145 Total nonperforming loans 19,404 16,138 Other real estate owned 1,095 160 Total nonperforming assets $ 20,499 $ 16,298 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.44 % 0.39 % Nonperforming assets to total loans (including OREO) 0.46 0.39 Nonperforming assets to total assets 0.36 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.45 % 0.40 % Nonperforming assets to total loans (including OREO) 0.47 0.40 Nonperforming assets to total assets 0.37 0.32 *Loans on nonaccrual status include impaired loans. **Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. The following table presents the recorded investment in nonaccrual loans and loans past due 90-days-or-more and still on accrual by class of loans: Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Traditional Banking: Residential real estate: Owner occupied $ 8,879 $ 10,800 $ — $ — Owner occupied - correspondent 848 382 — — Nonowner occupied 461 669 — — Commercial real estate 2,361 2,318 — — Construction & land development 134 — — — Commercial & industrial 5,046 630 — — Lease financing receivables — — — — Home equity 1,444 1,095 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 47 75 — — Other consumer 18 24 — 13 Total Traditional Banking 19,238 15,993 — 13 Warehouse lines of credit — — — — Total Core Banking 19,238 15,993 — 13 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — 13 4 Republic Credit Solutions — — 153 128 Total Republic Processing Group — — 166 132 Total $ 19,238 $ 15,993 $ 166 $ 145 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Nonaccrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance, primarily retail, homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Nonaccrual loans are typically returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future contractual payments are reasonably assured. TDRs on nonaccrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms. Delinquent Loans The following tables present the aging of the recorded investment in loans by class of loans: 30 - 59 60 - 89 90 or More June 30, 2019 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,252 $ 962 $ 1,844 $ 4,058 $ 903,768 $ 907,826 Owner occupied - correspondent — — — — 78,943 78,943 Nonowner occupied 240 — 431 671 258,495 259,166 Commercial real estate — 597 301 898 1,252,970 1,253,868 Construction & land development 412 128 — 540 190,444 190,984 Commercial & industrial 507 4,426 — 4,933 442,362 447,295 Lease financing receivables — — — — 17,271 17,271 Home equity 216 498 264 978 295,856 296,834 Consumer: Credit cards 76 14 — 90 17,339 17,429 Overdrafts 272 6 — 278 616 894 Automobile loans 39 25 — 64 63,489 63,553 Other consumer 7 7 — 14 53,754 53,768 Total Traditional Banking 3,021 6,663 2,840 12,524 3,575,307 3,587,831 Warehouse lines of credit — — — — 725,337 725,337 Total Core Banking 3,021 6,663 2,840 12,524 4,300,644 4,313,168 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans 38 24 13 75 636 711 Republic Credit Solutions 5,322 1,252 153 6,727 90,063 96,790 Total Republic Processing Group 5,360 1,276 166 6,802 90,699 97,501 Total $ 8,381 $ 7,939 $ 3,006 $ 19,326 $ 4,391,343 $ 4,410,669 Delinquency ratio*** 0.19 % 0.18 % 0.07 % 0.44 % * All loans past due 90-days-or-more, excluding small balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. 30 - 59 60 - 89 90 or More December 31, 2018 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,137 $ 748 $ 3,640 $ 5,525 $ 901,480 $ 907,005 Owner occupied - correspondent — — — — 94,827 94,827 Nonowner occupied 349 — 659 1,008 241,838 242,846 Commercial real estate 511 — 588 1,099 1,247,841 1,248,940 Construction & land development — — — — 175,178 175,178 Commercial & industrial — — 25 25 430,330 430,355 Lease financing receivables — — — — 15,031 15,031 Home equity 558 — 226 784 331,764 332,548 Consumer: Credit cards 82 46 1 129 18,966 19,095 Overdrafts 223 5 2 230 872 1,102 Automobile loans — 28 — 28 63,447 63,475 Other consumer 27 7 13 47 46,595 46,642 Total Traditional Banking 2,887 834 5,154 8,875 3,568,169 3,577,044 Warehouse lines of credit — — — — 468,695 468,695 Total Core Banking 2,887 834 5,154 8,875 4,036,864 4,045,739 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans 2 4 4 10 13,734 13,744 Republic Credit Solutions 5,734 1,215 128 7,077 81,667 88,744 Total Republic Processing Group 5,736 1,219 132 7,087 95,401 102,488 Total $ 8,623 $ 2,053 $ 5,286 $ 15,962 $ 4,132,265 $ 4,148,227 Delinquency ratio*** 0.21 % 0.05 % 0.13 % 0.38 % * All loans past due 90-days-or-more, excluding smaller balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. Impaired Loans Information regarding the Bank’s impaired loans follows: (in thousands) June 30, 2019 December 31, 2018 Loans with no allocated Allowance $ 20,733 $ 19,555 Loans with allocated Allowance 21,947 21,880 Total recorded investment in impaired loans $ 42,680 $ 41,435 Amount of the allocated Allowance $ 3,768 $ 3,764 Approximately $2 million and $3 million of impaired loans at June 30, 2019 and December 31, 2018 were PCI loans. Approximately $2 million and $2 million of impaired loans at June 30, 2019 and December 31, 2018 were formerly PCI loans that became classified as “impaired” through a post-acquisition troubled debt restructuring. The following tables present the balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method: Allowance for Loan and Lease Losses Loans Individually PCI with Individually PCI with PCI without June 30, 2019 Evaluated Collectively Post-Acquisition Total Evaluated Collectively Post-Acquisition Post-Acquisition Total Allowance to (dollars in thousands) Excluding PCI Evaluated Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Total Loans Traditional Banking: Residential real estate: Owner occupied $ 1,342 $ 3,392 $ 282 $ 5,016 $ 23,043 $ 883,240 $ 1,543 $ — $ 907,826 0.55 % Owner occupied - correspondent — 197 — 197 848 78,095 — — 78,943 0.25 Nonowner occupied 3 1,772 — 1,775 1,477 257,689 — — 259,166 0.68 Commercial real estate 230 10,328 8 10,566 6,523 1,246,473 872 — 1,253,868 0.84 Construction & land development — 2,910 — 2,910 60 190,924 — — 190,984 1.52 Commercial & industrial 1,204 3,017 — 4,221 5,464 441,807 — 24 447,295 0.94 Lease financing receivables — 181 — 181 — 17,271 — — 17,271 1.05 Home equity 241 2,883 — 3,124 2,339 294,484 11 — 296,834 1.05 Consumer: Credit cards — 1,028 — 1,028 — 17,429 — — 17,429 5.90 Overdrafts — 894 — 894 — 894 — — 894 100.00 Automobile loans 80 628 — 708 80 63,473 — — 63,553 1.11 Other consumer 364 185 — 549 386 53,379 3 — 53,768 1.02 Total Traditional Banking 3,464 27,415 290 31,169 40,220 3,545,158 2,429 24 3,587,831 0.87 Warehouse lines of credit — 1,814 — 1,814 — 725,337 — — 725,337 0.25 Total Core Banking 3,464 29,229 290 32,983 40,220 4,270,495 2,429 24 4,313,168 0.76 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — — — — Other TRS loans — 232 — 232 — 711 — — 711 32.63 Republic Credit Solutions 14 12,754 — 12,768 31 96,759 — — 96,790 13.19 Total Republic Processing Group 14 12,986 — 13,000 31 97,470 — — 97,501 13.33 Total $ 3,478 $ 42,215 $ 290 $ 45,983 $ 40,251 $ 4,367,965 $ 2,429 $ 24 $ 4,410,669 1.04 % Allowance for Loan and Lease Losses Loans Individually PCI with Individually PCI with PCI without December 31, 2018 Evaluated Collectively Post-Acquisition Total Evaluated Collectively Post-Acquisition Post-Acquisition Total Allowance to (dollars in thousands) Excluding PCI Evaluated Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Total Loans Traditional Banking: Residential real estate: Owner occupied $ 2,052 $ 3,365 $ 381 $ 5,798 $ 24,860 $ 880,500 $ 1,645 $ — $ 907,005 0.64 % Owner occupied - correspondent — 237 — 237 382 94,445 — — 94,827 0.25 Nonowner occupied 4 1,658 — 1,662 2,406 240,440 — — 242,846 0.68 Commercial real estate 294 9,727 9 10,030 8,104 1,239,915 919 2 1,248,940 0.80 Construction & land development 4 2,551 — 2,555 65 175,113 — — 175,178 1.46 Commercial & industrial 130 2,743 — 2,873 1,020 429,310 — 25 430,355 0.67 Lease financing receivables — 158 — 158 — 15,031 — — 15,031 1.05 Home equity 286 3,117 74 3,477 1,361 331,101 86 — 332,548 1.05 Consumer: Credit cards — 1,140 — 1,140 — 19,095 — — 19,095 5.97 Overdrafts — 1,102 — 1,102 — 1,102 — — 1,102 100.00 Automobile loans 91 633 — 724 91 63,384 — — 63,475 1.14 Other consumer 421 170 — 591 449 46,190 3 — 46,642 1.27 Total Traditional Banking 3,282 26,601 464 30,347 38,738 3,535,626 2,653 27 3,577,044 0.85 Warehouse lines of credit — 1,172 — 1,172 — 468,695 — — 468,695 0.25 Total Core Banking 3,282 27,773 464 31,519 38,738 4,004,321 2,653 27 4,045,739 0.78 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — — — — Other TRS loans — 107 — 107 — 13,744 — — 13,744 0.78 Republic Credit Solutions 18 13,031 — 13,049 44 88,700 — — 88,744 14.70 Total Republic Processing Group 18 13,138 — 13,156 44 102,444 — — 102,488 12.84 Total $ 3,300 $ 40,911 $ 464 $ 44,675 $ 38,782 $ 4,106,765 $ 2,653 $ 27 $ 4,148,227 1.08 % The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018. The difference between the “Unpaid Principal Balance” and “Recorded Investment” columns represents life-to-date partial write downs/charge offs taken on individual impaired credits. As of Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 June 30, 2019 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allocated Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allowance Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no allocated Allowance: Residential real estate: Owner occupied $ 13,213 $ 12,452 $ — $ 10,913 $ 70 $ — $ 10,843 $ 139 $ — Owner occupied - correspondent 848 848 — 855 — — 697 — — Nonowner occupied 1,113 1,046 — 1,424 17 — 1,733 34 — Commercial real estate 4,866 3,792 — 3,573 23 — 3,917 47 — Construction & land development 60 60 — 30 1 — 20 1 — Commercial & industrial 720 612 — 622 — — 616 — — Lease financing receivables — — — — — — — — — Home equity 1,941 1,898 — 1,591 12 — 1,352 23 — Consumer 25 25 — 27 1 — 28 1 — Impaired loans with allocated Allowance: Residential real estate: Owner occupied 12,161 12,134 1,624 14,464 121 — 14,910 240 — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 622 431 3 216 41 — 162 — — Commercial real estate 3,603 3,603 238 3,951 — — 4,106 83 — Construction & land development — — — 32 — — 43 — — Commercial & industrial 4,852 4,852 1,204 2,662 7 — 1,913 15 — Lease financing receivables — — — — — — — — — Home equity 452 452 241 480 2 — 510 4 — Consumer 477 475 458 505 4 — 520 10 — Total impaired loans $ 44,953 $ 42,680 $ 3,768 $ 41,345 $ 299 $ — $ 41,370 $ 597 $ — As of Three Months Ended Six Months Ended December 31, 2018 June 30, 2018 June 30, 2018 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allocated Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allowance Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no allocated Allowance: Residential real estate: Owner occupied $ 11,676 $ 10,703 $ — $ 11,069 $ 67 $ — $ 10,976 $ 133 $ — Owner occupied - correspondent 382 382 — 386 — — 257 — — Nonowner occupied 2,729 2,350 — 2,699 22 — 2,367 45 — Commercial real estate 5,688 4,607 — 5,119 24 — 4,889 45 — Construction & land development — — — 238 — — 356 — — Commercial & industrial 712 604 — 694 — — 469 — — Lease financing receivables — — — — — — — — — Home equity 919 876 — 704 4 — 796 7 — Consumer 33 33 — 62 1 — 49 3 — Impaired loans with allocated Allowance: Residential real estate: Owner occupied 16,215 15,802 2,433 18,481 153 — 18,538 299 — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 78 56 4 195 — — 249 — — Commercial real estate 4,416 4,416 303 6,368 65 — 6,287 129 — Construction & land development 65 65 4 132 1 — 135 2 — Commercial & industrial 416 416 130 98 1 — 161 1 — Lease financing receivables — — — — — — — — — Home equity 572 571 360 992 10 — 909 19 — Consumer 554 554 530 668 6 — 700 14 — Total impaired loans $ 44,455 $ 41,435 $ 3,764 $ 47,905 $ 354 $ — $ 47,138 $ 697 $ — Troubled Debt Restructurings A TDR is a situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank would not otherwise have considered. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of their debt in the foreseeable future without the modification. This evaluation is performed in accordance with the Bank’s internal underwriting policy. All TDRs are considered “Impaired,” including PCI loans subsequently restructured. The majority of the Bank’s commercial related and construction TDRs involve a restructuring of financing terms such as a reduction in the payment amount to require only interest and escrow (if required) and/or extending the maturity date of the debt. The substantial majority of the Bank’s residential real estate TDR concessions involve reducing the client’s loan payment through a rate reduction for a set period based on the borrower’s ability to service the modified loan payment. Retail loans may also be classified as TDRs due to legal modifications, such as bankruptcies. Nonaccrual loans modified as TDRs typically remain on nonaccrual status and continue to be reported as nonperforming loans for a minimum of six consecutive months. Accruing loans modified as TDRs are evaluated for nonaccrual status based on a current evaluation of the borrower’s financial condition and ability and willingness to service the modified debt. At June 30, 2019 and December 31, 2018, $11 million and $8 million of TDRs were on nonaccrual status. Detail of TDRs differentiated by loan type and accrual status follows: Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 54 $ 4,777 152 $ 16,401 206 $ 21,178 Commercial real estate 3 1,714 8 4,247 11 5,961 Construction & land development — — 1 60 1 60 Commercial & industrial 5 4,913 4 417 9 5,330 Consumer — — 210 382 210 382 Total troubled debt restructurings 62 $ 11,404 375 $ 21,507 437 $ 32,911 Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded December 31, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 60 $ 6,378 156 $ 17,232 216 $ 23,610 Commercial real estate 3 1,203 14 6,571 17 7,774 Construction & land development — — 1 65 1 65 Commercial & industrial 2 571 3 408 5 979 Consumer — — 256 435 256 435 Total troubled debt restructurings 65 $ 8,152 430 $ 24,711 495 $ 32,863 The Bank considers a TDR to be performing to its modified terms if the loan is in accrual status and not past due 30-days-or-more as of the reporting date. A summary of the categories of TDR loan modifications outstanding and respective performance under modified terms at June 30, 2019 and December 31, 2018 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — 1 $ 945 1 $ 945 Rate reduction 138 15,535 5 589 143 16,124 Principal deferral 9 873 3 610 12 1,483 Legal modification 43 2,311 7 315 50 2,626 Total residential TDRs 190 18,719 16 2,459 206 21,178 Commercial related and construction/land development loans: Interest only payments 2 719 — — 2 719 Rate reduction 4 1,352 — — 4 1,352 Principal deferral 12 4,257 1 597 13 4,854 Legal modification — — 2 4,426 2 4,426 Total commercial TDRs 18 6,328 3 5,023 21 11,351 Consumer loans: Rate reduction — — — — — — Principal deferral 210 382 — — 210 382 Total consumer TDRs 210 382 — — 210 382 Total troubled debt restructurings 418 $ 25,429 19 $ 7,482 437 $ 32,911 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded December 31, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — 1 $ 970 1 $ 970 Rate reduction 145 16,892 12 978 157 17,870 Principal deferral 11 1,171 4 1,871 15 3,042 Legal modification 35 1,500 8 228 43 1,728 Total residential TDRs 191 19,563 25 4,047 216 23,610 Commercial related and construction/land development loans: Interest only payments 2 752 — — 2 752 Rate reduction 8 2,962 — — 8 2,962 Principal deferral 12 5,076 — — 12 5,076 Legal modification — — 1 28 1 28 Total commercial TDRs 22 8,790 1 28 23 8,818 Consumer loans: Rate reduction 1 16 — — 1 16 Principal deferral 255 419 — — 255 419 Legal modification — — — — — — Total consumer TDRs 256 435 — — 256 435 Total troubled debt restructurings 469 $ 28,788 26 $ 4,075 495 $ 32,863 As of June 30, 2019 and December 31, 2018, 77% and 88% of the Bank’s TDRs were performing according to their modified terms. The Bank had provided $3 million and $3 million of specific reserve allocations to clients whose loan terms have been modified in TDRs as of June 30, 2019 and December 31, 2018. The Bank had no commitments to lend any additional material amounts to its existing TDR relationships at June 30, 2019 or December 31, 2018. A summary of the categories of TDR loan modifications by respective performance as of June 30, 2019 and 2018 that were modified during the three months ended June 30, 2019 and 2018 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral — $ — — $ — — $ — Legal modification 7 804 2 161 9 965 Total residential TDRs 7 804 2 161 9 965 Commercial related and construction/land development loans: Legal modification — — 2 4,426 2 4,426 Total commercial TDRs — — 2 4,426 2 4,426 Total troubled debt restructurings 7 $ 804 4 $ 4,587 11 $ 5,391 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 1 $ 389 — $ — 1 $ 389 Principal deferral 2 1,501 1 169 3 1,670 Legal modification 9 273 1 46 10 319 Total residential TDRs 12 2,163 2 215 14 2,378 Commercial related and construction/land development loans: Principal deferral 3 859 1 75 4 934 Total commercial TDRs 3 859 1 75 4 934 Consumer loans: Legal modification — — 1 43 1 43 Total consumer TDRs — — 1 43 1 43 Total troubled debt restructurings 15 $ 3,022 4 $ 333 19 $ 3,355 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. As of June 30, 2019 and 2018, 15% and 90% of the Bank’s TDRs that occurred during the second quarters of 2019 and 2018 were performing according to their modified terms. The Bank provided approximately $980,000 and $422,000 in specific reserve allocations to clients whose loan terms were modified in TDRs during the second quarters of 2019 and 2018. There was no significant change between the pre and post modification loan balances for the three months ending June 30, 2019 and 2018. A summary of the categories of TDR loan modifications by respective performance as of June 30, 2019 and 2018 that were modified during the six months ended June 30, 2019 and 2018 follows: Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 1 $ 6 — $ — 1 $ 6 Legal modification 11 901 3 211 14 1,112 Total residential TDRs 12 907 3 211 15 1,118 Commercial related and construction/land development loans: Interest only payments 1 566 — — 1 566 Principal deferral 2 26 — — 2 26 Legal modification — — 2 4,426 2 4,426 Total commercial TDRs 3 592 2 4,426 5 5,018 Total troubled debt restructurings 15 $ 1,499 5 $ 4,637 20 $ 6,136 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2019 | |
DEPOSITS | |
DEPOSITS | 5. DEPOSITS The composition of the deposit portfolio follows: (in thousands) June 30, 2019 December 31, 2018 Core Bank: Demand $ 906,179 $ 937,402 Money market accounts 727,718 717,954 Savings 177,421 187,868 Individual retirement accounts(1) 50,970 53,524 Time deposits, $250 and over(1) 93,713 84,104 Other certificates of deposit(1) 246,392 239,324 Reciprocal money market and time deposits(1)(2) 192,792 217,153 Brokered deposits(1) 159,615 9,394 Total Core Bank interest-bearing deposits 2,554,800 2,446,723 Total Core Bank noninterest-bearing deposits 937,487 971,422 Total Core Bank deposits 3,492,287 3,418,145 Republic Processing Group: Money market accounts 2,327 5,453 Total RPG interest-bearing deposits 2,327 5,453 Brokered prepaid card deposits 10,854 4,350 Other noninterest-bearing deposits 55,452 28,197 Total RPG noninterest-bearing deposits 66,306 32,547 Total RPG deposits 68,633 38,000 Deposits held for assumption in connection with sale of banking centers(3) 152,954 — Total deposits $ 3,713,874 $ 3,456,145 (1) Includes time deposits. (2) Prior to June 2018, reciprocal deposits were classified as “brokered deposits.” The Economic Growth, Regulatory Relief, and Consumer Protection Act, enacted in May 2018, provides that most reciprocal deposits are no longer classified as brokered deposits if the Bank meets certain regulatory criteria. (3) See Footnote 18 “Subsequent Event” in this section of the filing. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 6 Months Ended |
Jun. 30, 2019 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 6. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit clients arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to clients are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. Should the fair value of currently pledged securities fall below the associated repurchase agreements, the Bank would be required to pledge additional securities. To mitigate the risk of under collateralization, the Bank typically pledges at least two percent more in securities than the associated repurchase agreements. All such securities are under the Bank’s control. At June 30, 2019 and December 31, 2018, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows: (dollars in thousands) June 30, 2019 December 31, 2018 Outstanding balance at end of period $ 226,002 $ 182,990 Weighted average interest rate at end of period 0.50 % 0.83 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 109,716 $ 110,854 Mortgage backed securities - residential 83,893 84,657 Collateralized mortgage obligations 59,049 10,136 Total securities pledged $ 252,658 $ 205,647 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2018 2019 2018 Average outstanding balance during the period $ 220,189 $ 178,063 $ 225,864 $ 217,532 Average interest rate during the period 0.60 % 0.50 % % 0.40 % Maximum outstanding at any month end during the period $ 226,002 $ 175,291 $ 226,002 $ 215,281 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 7. RIGHT-OF-USE ASSETS AND OPERATNG LEASE LIABILITIES The Company adopted ASU 2016-02 Leases (Topic 842), effective January 1, 2019. The adoption of this ASU did not have a meaningful impact on the Company’s net income, earnings per share, return on average assets, or return on average equity for the three and six months ended June 30, 2019. ASU 2016-02 requires the Company to record on its balance sheet the assets and liabilities that arise from leases. The Company is therefore required to record as operating lease liabilities the present value of its required minimum lease payments plus any amounts probable of being owed under a residual value guarantee. Offsetting these operating lease liabilities, the Company records right-of-use assets for the underlying leased property. Prior to January 1, 2019, operating leases were not recorded on a lessee’s balance sheet in this manner. As permitted by ASU 2018-11, the Company adopted ASU 2016-02 with a cumulative-effect adjustment as of January 1, 2019. Additionally, the Company elected the following list of practical expedients upon adoption of and as permitted by ASU 2016-02: · Concerning lease classification, the Company elected not to reassess the lease classification for any expired or existing leases accounted for in accordance with ASC Topic 840. · Concerning lease identification, the Company elected not to reassess whether any expired or existing contracts, not previously classified as a lease, are, or contain, leases. · Concerning initial direct costs, the Company elected not to reassess initial direct costs for any existing leases. · The Company elected to use hindsight in determining the lease term, whether or not to purchase the underlying leased asset, and in assessing impairment in right-of-use assets. · The Company elected that all short-term leases will not be placed on the balance sheet. Short-term leases include leases that have a lease term of 12 months or less at their commencement date and do not include a purchase option that the Company is reasonably certain to exercise. Upon adoption of ASU 2016-02 on January 1, 2019, the Company was under 50 separate and distinct operating lease contracts to lease the land and/or buildings for 38 of its offices, with 15 such operating leases contracted with a related party of the Company. As of January 1, 2019, the Company recorded total operating lease liabilities of $42 million and total right-of-use assets of $40 million, primarily reflecting the present value of its expected remaining lease payments plus any residual guarantees under its operating lease contracts. In order to discount these remaining lease payments and guarantees, the Company made assumptions concerning the expected remaining lease term and the discount rate. The Company’s assumption regarding the expected remaining lease term included the fixed noncancelable term, plus all periods for which failure to renew the lease imposed a penalty on the Company, plus all periods for which the Company was reasonably certain to exercise a lease renewal option, plus all periods for which the Company was reasonably certain not to exercise a lease termination option. In determining whether it was reasonably certain to exercise a lease renewal or termination option, the Company considered its overall strategic plan and all economic and environmental circumstances connected to the leased property. Expected remaining lease terms upon adoption of ASU 2016-02 ranged from 0.75 to 18.51 years, with a weighted average remaining term of 8.60 years. The Company employed the interest rate curve published by the FHLB of Cincinnati for the FHLB’s collateralized term borrowings as of January 1, 2019 to discount its operating lease payments and guarantees, matching expected lease term to borrowing term. Discount rates employed upon adoption of ASU 2016-02 ranged from 2.94% to 3.70%, with a weighted average rate of 3.48%. As of June 30, 2019, payments on 25 of the Company’s operating leases were considered variable because such payments were adjustable based on periodic changes in the Consumer Price Index. Prior to the release of these financial statements, the Company had executed one lease contract that had not commenced for one of its banking centers. The estimated operating lease liability and offsetting right-of-use asset to be recorded for this lease totaled approximately $493,000. The following table presents information concerning the Company’s operating lease expense recorded as a noninterest expense within the category “Occupancy and equipment, net” for the three and six months ended June 30, 2019: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2019 Operating lease expense: Related Party: Variable lease expense $ 1,156 $ 2,314 Fixed lease expense 10 18 Third Party: Variable lease expense 211 435 Fixed lease expense 384 745 Short-term lease expense 12 26 Total operating lease expense $ 1,773 $ 3,538 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,794 $ 3,577 Short-term lease payments not included in the measurement of lease liabilities 12 26 The following table presents the weighted average remaining term and weighted average discount rate for the Company’s non-short-term operating leases as of June 30, 2019: June 30, 2019 Weighted average remaining term in years 8.30 Weighted average discount rate 3.48 % The following table presents a maturity schedule of the Company’s operating lease liabilities based on undiscounted cash flows, and a reconciliation of those undiscounted cash flows to the operating lease liabilities recognized on the Company’s balance sheet as of June 30, 2019: Year (in thousands) Related Party Third Party Total Remainder of 2019 $ 2,314 $ 1,274 $ 3,588 2020 4,585 2,513 7,098 2021 4,171 2,294 6,465 2022 3,310 1,888 5,198 2023 3,310 1,363 4,673 Thereafter 15,910 2,572 18,482 Total undiscounted cash flows $ 33,600 $ 11,904 $ 45,504 Discount applied to cash flows (5,029) (1,623) (6,652) Total discounted cash flows reported as operating lease liabilities $ 28,571 $ 10,281 $ 38,852 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 6 Months Ended |
Jun. 30, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 8. FEDERAL HOME LOAN BANK ADVANCES FHLB advances were as follows: (dollars in thousands) June 30, 2019 December 31, 2018 Overnight advances $ 670,000 $ 510,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% 10,000 10,000 Fixed interest rate advances 235,000 290,000 Total FHLB advances $ 915,000 $ 810,000 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At June 30, 2019 and December 31, 2018, Republic had available borrowing capacity of $502 million and $254 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $125 million and $125 million available through various other financial institutions as of June 30, 2019 and December 31, 2018. Aggregate future principal payments on FHLB advances based on contractual maturity and the weighted average cost of such advances are detailed below: Weighted Average Year (dollars in thousands) Principal Rate Remainder of 2019 (Overnight) $ 670,000 2.46 % Remainder of 2019 (Term) 55,000 1.97 2020 120,000 1.81 2021 30,000 1.93 2022 20,000 2.12 2023 20,000 2.56 Thereafter — — Total $ 915,000 2.32 % Due to their nature, the Bank considers average balance information more meaningful than period-end balances for its overnight borrowings from the FHLB. Information regarding overnight FHLB advances follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2018 2019 2018 Average outstanding balance during the period $ 448,077 $ 226,264 $ 331,768 $ 185,801 Average interest rate during the period 2.50 % 1.88 % 2.49 % 1.70 % Maximum outstanding at any month end during the period $ 785,000 $ 500,000 $ 785,000 $ 560,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: (in thousands) June 30, 2019 December 31, 2018 First lien, single family residential real estate $ 1,161,088 $ 1,129,588 Home equity lines of credit 297,862 311,419 |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 9. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES The Company, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these instruments reflect the potential future obligations of the Company pursuant to those financial instruments. Creditworthiness for all instruments is evaluated on a case-by-case basis in accordance with the Company’s credit policies. Collateral from the client may be required based on the Company’s credit evaluation of the client and may include business assets of commercial clients, as well as personal property and real estate of individual clients or guarantors. The Company also extends binding commitments to clients and prospective clients. Such commitments assure a borrower of financing for a specified period of time at a specified rate. Additionally, the Company makes binding purchase commitments to third-party loan correspondent originators. These commitments assure that the Company will purchase a loan from such correspondent originators at a specific price for a specific period of time. The risk to the Company under such loan commitments is limited by the terms of the contracts. For example, the Company may not be obligated to advance funds if the client’s financial condition deteriorates or if the client fails to meet specific covenants. An approved but unfunded loan commitment represents a potential credit risk and a liquidity risk, since the Company’s client(s) may demand immediate cash that would require funding. In addition, unfunded loan commitments represent interest rate risk as market interest rates may rise above the rate committed to the Company’s client. Since a portion of these loan commitments normally expire unused, the total amount of outstanding commitments at any point in time may not require future funding. The following table presents the Company’s commitments, exclusive of Mortgage Banking loan commitments, for each period ended: (in thousands) June 30, 2019 December 31, 2018 Unused warehouse lines of credit $ 393,663 $ 591,305 Unused home equity lines of credit 383,772 377,277 Unused loan commitments - other 758,439 720,645 Standby letters of credit 11,766 10,642 FHLB letter of credit 10,000 10,000 Total commitments $ 1,557,640 $ 1,709,869 Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a client to a third party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Company also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Company does not deem this risk to be material. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2019 | |
FAIR VALUE | |
FAIR VALUE | 10. FAIR VALUE Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Available-for-sale debt securities: Except for the Bank’s private label mortgage backed security and its TRUP investment, the fair value of available-for-sale debt securities is typically determined by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Bank’s private label mortgage backed security remains illiquid, and as such, the Bank classifies this security as a Level 3 security in accordance with ASC Topic 820, Fair Value Measurement . Based on this determination, the Bank utilized an income valuation model (present value model) approach in determining the fair value of this security. See in this section of the filing under Footnote 2 “Investment Securities” for additional discussion regarding the Bank’s private label mortgage backed security. The Company acquired its TRUP investment in 2015 and considered the most recent bid price for the same instrument to approximate market value at June 30, 2019. The Company’s TRUP investment is considered highly illiquid and also valued using Level 3 inputs, as the most recent bid price for this instrument is not always considered generally observable. Equity securities with readily determinable fair value: Quoted market prices in an active market are available for the Bank’s CRA mutual fund investment and fall within Level 1 of the fair value hierarchy. The fair value of the Company’s Freddie Mac preferred stock is determined by matrix pricing, as described above (Level 2 inputs). Mortgage loans held for sale, at fair value: The fair value of mortgage loans held for sale is determined using quoted secondary market prices. Mortgage loans held for sale are classified as Level 2 in the fair value hierarchy. Consumer loans held for sale, at fair value: From the first quarter of 2016 through the first quarter of 2018, the Bank piloted a consumer installment-loan product across the United States using a third-party marketer/service. As part of the program, the Bank sold 100% of the balances generated through the program back to the third-party marketer/servicer approximately 21 days after origination. The Bank carried all unsold loans under the program as “held for sale” on the its balance sheet. At the initiation of this program in 2016, the Bank elected to carry these loans at fair value under a fair-value option, with the portfolio thereafter marked to market on a monthly basis. During the second quarter of 2018, the Bank and its third-party marketer/service provider suspended the origination of any new loans, and the subsequent sale of all recently-originated loans under this program, while the two parties evaluate the future offering of this product due to changes in the applicable state law impacting the product. Concurrent with the suspension of this program, the Bank reclassified these loans from held for sale on the balance sheet into the held for investment category and revalued these loans accordingly. The fair value for these loans is based on the discounted cash flows of the underlying loans, which are also classified as Level 3 inputs. Mortgage Banking derivatives : Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts (“forward contracts”) and interest rate lock loan commitments. The fair value of the Bank’s derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. The pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by the Bank. Forward contracts and rate-lock loan commitments are classified as Level 2 in the fair value hierarchy. Interest rate swap agreements: Interest rate swaps are recorded at fair value on a recurring basis. The Company values its interest rate swaps using a third-party valuation service and classifies such valuations as Level 2. Valuations of these interest rate swaps are also received from the relevant dealer counterparty and validated against the Company’s calculations. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. Impaired loans: Collateral-dependent impaired loans generally reflect partial charge-downs to their respective fair value, which is commonly based on recent real estate appraisals or BPOs. These appraisals or BPOs may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the process by the independent experts to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Collateral-dependent loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Premises carried at fair value: Premises and equipment are accounted for at the lower of cost less accumulated depreciation or fair value less estimated costs to sell. The fair value of Bank premises is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Mortgage servicing rights: On at least a quarterly basis, MSRs are evaluated for impairment based upon the fair value of the MSRs as compared to carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded, and the respective individual tranche is carried at fair value. If the carrying amount of an individual tranche does not exceed fair value, impairment is reversed if previously recognized and the carrying value of the individual tranche is based on the amortization method. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and can generally be validated against available market data (Level 2). There were no MSR tranches carried at fair value at June 30, 2019 and December 31, 2018. Assets and liabilities measured at fair value on a recurring basis , including financial assets and liabilities for which the Bank has elected the fair value option, are summarized below: Fair Value Measurements at June 30, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 139,335 $ — $ 139,335 Private label mortgage backed security — — 3,615 3,615 Mortgage backed securities - residential — 154,192 — 154,192 Collateralized mortgage obligations — 69,379 — 69,379 Corporate bonds — 9,835 — 9,835 Trust preferred security — — 4,000 4,000 Total available-for-sale debt securities $ — $ 372,741 $ 7,615 $ 380,356 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 787 $ — $ 787 Community Reinvestment Act mutual fund 2,467 — — 2,467 Total equity securities with readily determinable fair value $ 2,467 $ 787 $ — $ 3,254 Mortgage loans held for sale $ — $ 13,883 $ — $ 13,883 Consumer loans held for investment — — 1,369 1,369 Rate lock loan commitments — 1,222 — 1,222 Interest rate swap agreements — 4,645 — 4,645 Financial liabilities: Mandatory forward contracts $ — $ 467 $ — $ 467 Interest rate swap agreements — 4,778 — 4,778 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 216,873 $ — $ 216,873 Private label mortgage backed security — — 3,712 3,712 Mortgage backed securities - residential — 169,209 — 169,209 Collateralized mortgage obligations — 72,811 — 72,811 Corporate bonds — 9,058 — 9,058 Trust preferred security — — 4,075 4,075 Total available-for-sale debt securities $ — $ 467,951 $ 7,787 $ 475,738 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 410 $ — $ 410 Community Reinvestment Act mutual fund 2,396 — — 2,396 Total equity securities with readily determinable fair value $ 2,396 $ 410 $ — $ 2,806 Mortgage loans held for sale $ — $ 8,971 $ — $ 8,971 Consumer loans held for investment — — 1,922 1,922 Rate lock loan commitments — 356 — 356 Interest rate swap agreements — 1,264 — 1,264 Financial liabilities: Mandatory forward contracts $ — $ 262 $ — $ 262 Interest rate swap agreements — 1,149 — 1,149 All transfers between levels are generally recognized at the end of each quarter. There were no transfers into or out of Level 1, 2 or 3 assets during the three and six months ended June 30, 2019 and 2018. Private Label Mortgage Backed Security The following table presents a reconciliation of the Bank’s private label mortgage backed security measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 3,660 $ 4,120 $ 3,712 $ 4,449 Total gains or losses included in earnings: Net change in unrealized gain (2) (15) (34) (17) Recovery of actual losses previously recorded 38 37 75 75 Principal paydowns (81) (216) (138) (581) Balance, end of period $ 3,615 $ 3,926 $ 3,615 $ 3,926 The fair value of the Bank’s single private label mortgage backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value and the weighted average FICO score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage backed security are prepayment rates, probability of default and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly different fair value measurement. . Quantitative information about recurring Level 3 fair value measurement inputs for the Bank’s single private label mortgage backed security follows: Fair Valuation June 30, 2019 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,615 Discounted cash flow (1) Constant prepayment rate 3.9% - 4.5% (2) Probability of default 1.8% - 6.1% (3) Loss severity 50% - 75% Fair Valuation December 31, 2018 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,712 Discounted cash flow (1) Constant prepayment rate 6.5% - 8.9% (2) Probability of default 1.8% - 4.7% (3) Loss severity 50% - 75% Trust Preferred Security The following table presents a reconciliation of the Company’s TRUP measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 4,100 $ 3,900 $ 4,075 $ 3,600 Total gains or losses included in earnings: Discount accretion 11 10 21 20 Net change in unrealized gain (111) 240 (96) 530 Balance, end of period $ 4,000 $ 4,150 $ 4,000 $ 4,150 The fair value of the Company’s TRUP investment is based on the most recent bid price for this instrument, as provided by a third-party broker. Mortgage Loans Held for Sale The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2019 and December 31, 2018. The aggregate fair value, contractual balance, and unrealized gain were as follows: (in thousands) June 30, 2019 December 31, 2018 Aggregate fair value $ 13,883 $ 8,971 Contractual balance 13,542 8,676 Unrealized gain 341 295 The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2019 and 2018 for mortgage loans held for sale are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Interest income $ 170 $ 103 $ 272 $ 175 Change in fair value 128 152 46 143 Total included in earnings $ 298 $ 255 $ 318 $ 318 Consumer Loans Held for Investment RCS carries loans originated through its installment loan program at fair value. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more or on nonaccrual as of June 30, 2019 and December 31, 2018. The significant unobservable inputs in the fair value measurement of the Bank’s consumer loans were the constant prepayment rate, probability of default, and loss severity for these loans under a discounted-cash-flow model. Significant fluctuations in any of these inputs in isolation would result in a significantly lower/higher fair value measurement. The following table presents quantitative information about recurring Level 3 fair value measurement inputs for installment loans: Fair Valuation June 30, 2019 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for investment $ 1,369 Discounted Cash Flows (1) Constant prepayment rate 15.0% (2) Probability of default 50.0 (3) Loss severity 25.0 Fair Valuation December 31, 2018 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for investment $ 1,922 Discounted Cash Flows (1) Constant prepayment rate 15.0% (2) Probability of default 45.0% (3) Loss severity 20.0% The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for investment, at fair value, were as follows: (in thousands) June 30, 2019 December 31, 2018 Aggregate fair value $ 1,369 $ 1,922 Contractual balance 1,580 2,170 Unrealized (loss) gain (211) (248) The total amount of net gains from changes in fair value included in earnings for consumer loans held for investment, at fair value, are presented in the following table: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Interest income $ 90 $ 152 $ 201 $ 328 Change in fair value 19 (414) 37 (427) Total included in earnings $ 109 $ (262) $ 238 $ (99) Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at June 30, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 3,777 $ 3,777 Nonowner occupied — — 511 511 Commercial real estate — — 1,117 1,117 Commercial & industrial — — 512 512 Home equity — — 347 347 Total impaired loans* $ — $ — $ 6,264 $ 6,264 Premises $ — $ — $ 1,552 $ 1,552 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Consumer loans held for sale $ — $ — $ 1,249 $ 1,249 Impaired loans: Residential real estate: Owner occupied $ — $ — $ 4,708 $ 4,708 Nonowner occupied — — 1,007 1,007 Commercial real estate — — 1,255 1,255 Commercial & industrial — — 609 609 Home equity — — 356 356 Total impaired loans* $ — $ — $ 7,935 $ 7,935 Premises $ — $ — $ 1,694 $ 1,694 * The difference between the carrying value and the fair value of impaired loans measured at fair value is reconciled in a subsequent table of this Footnote. The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis : Range Fair Valuation Unobservable (Weighted June 30, 2019 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 3,777 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 62% (11%) Impaired loans - residential real estate nonowner occupied $ 511 Sales comparison approach Adjustments determined for differences between comparable sales 5% - 12% (12%) Impaired loans - commercial real estate $ 1,117 Sales comparison approach Adjustments determined for differences between comparable sales 22% - 25% (22%) Impaired loans - commercial & industrial $ 512 Sales comparison approach Adjustments determined for differences between comparable sales 3% (3%) Impaired loans - home equity $ 347 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 2% (2%) Premises $ 1,552 Sales comparison approach Adjustments determined for differences between comparable sales 33% - 75% (45%) Range Fair Valuation Unobservable (Weighted December 31, 2018 (dollars in thousands) Value Technique Inputs Average) Consumer loans held for sale $ 1,249 Sales comparison approach Adjustments determined for differences between comparable sales 6% (6%) Impaired loans - residential real estate owner occupied $ 4,708 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 67% (9%) Impaired loans - residential real estate nonowner occupied $ 1,007 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 27% (15%) Impaired loans - commercial real estate $ 123 Sales comparison approach Adjustments determined for differences between comparable sales 21% (21%) Impaired loans - commercial real estate $ 1,132 Income approach Adjustments for differences between net operating income expectations 17% (17%) Impaired loans - commercial & industrial $ 609 Sales comparison approach Adjustments determined for differences between comparable sales 3% (3%) Impaired loans - home equity $ 356 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 22% (8%) Premises $ 1,694 Sales comparison approach Adjustments determined for differences between comparable sales 27% - 72% (40%) Impaired Loans Collateral-dependent impaired loans are generally measured for impairment using the fair value for reasonable disposition of the underlying collateral. The Bank’s practice is to obtain new or updated appraisals or BPOs on the loans subject to the initial impairment review and then to evaluate the need for an update to this value on an as-necessary or possibly annual basis thereafter (depending on the market conditions impacting the value of the collateral). The Bank may discount the valuation amount as necessary for selling costs and past due real estate taxes. If a new or updated appraisal or BPO is not available at the time of a loan’s impairment review, the Bank may apply a discount to the existing value of an old valuation to reflect the property’s current estimated value if it is believed to have deteriorated in either: (i) the physical or economic aspects of the subject property or (ii) material changes in market conditions. The impairment review generally results in a partial charge-off of the loan if fair value less selling costs are below the loan’s carrying value. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Impaired collateral-dependent loans are as follows: (in thousands) June 30, 2019 December 31, 2018 Carrying amount of loans measured at fair value $ 5,559 $ 7,380 Estimated selling costs considered in carrying amount 724 913 Valuation allowance (19) (358) Total fair value $ 6,264 $ 7,935 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Provisions on collateral-dependent, impaired loans $ 5 $ 28 $ 27 $ 457 Premises The Company’s Traditional Banking segment classified three of its former banking centers as held for sale as of June 30, 2019 and December 31, 2018. Impairment charges are recorded when the value of a piece of property is reappraised or reassessed below the property’s then-carrying value. Impairment charges related to properties held for sale were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Impairment charges on premises $ 66 $ 126 $ 132 $ 230 The carrying amounts and estimated exit price fair values of all financial instruments follow: Fair Value Measurements at June 30, 2019: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 473,779 $ 473,779 $ — $ — $ 473,779 Available-for-sale debt securities 380,356 — 372,741 7,615 380,356 Held-to-maturity debt securities 63,902 — 64,433 — 64,433 Equity securities with readily determinable fair values 3,254 2,467 787 — 3,254 Mortgage loans held for sale, at fair value 13,883 — 13,883 — 13,883 Reverse mortgage loans held for sale, at the lower of cost or fair value 12,457 — 12,457 — 12,457 Consumer loans held for sale, at the lower of cost or fair value 37,609 — 37,609 — 37,609 Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value 111,745 — 111,745 — 111,745 Loans, net 4,364,686 — — 4,397,565 4,397,565 Federal Home Loan Bank stock 32,242 — — — NA Accrued interest receivable 14,716 — 14,716 — 14,716 Rate lock loan commitments 1,222 — 1,222 — 1,222 Interest rate swap agreements 4,645 — 4,645 — 4,645 Liabilities: Noninterest-bearing deposits $ 1,003,793 — $ 1,003,793 — $ 1,003,793 Transaction deposits 1,959,252 — 1,959,252 — 1,959,252 Time deposits 597,875 — 600,352 — 600,352 Deposits held for assumption in connection with sale of banking centers 152,954 — 152,954 — 152,954 Securities sold under agreements to repurchase and other short-term borrowings 226,002 — 226,002 — 226,002 Federal Home Loan Bank advances 915,000 — 913,453 — 913,453 Subordinated note 41,240 — 33,181 — 33,181 Accrued interest payable 1,575 — 1,575 — 1,575 Mandatory forward contracts 467 — 467 — 467 Interest rate swap agreements 4,778 — 4,778 — 4,778 Fair Value Measurements at December 31, 2018: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 351,474 $ 351,474 $ — $ — $ 351,474 Available-for-sale debt securities 475,738 — 467,951 7,787 475,738 Held-to-maturity debt securities 65,227 — 64,858 — 64,858 Equity securities with readily determinable fair values 2,806 2,396 410 — 2,806 Mortgage loans held for sale, at fair value 8,971 — 8,971 — 8,971 Consumer loans held for sale, at the lower of cost or fair value 12,838 — 12,838 — 12,838 Loans, net 4,103,552 — — 4,062,457 4,062,457 Federal Home Loan Bank stock 32,067 — — — NA Accrued interest receivable 13,942 — 13,942 — 13,942 Rate lock loan commitments 356 — 356 — 356 Interest rate swap agreements 1,264 — 1,264 — 1,264 Liabilities: Noninterest-bearing deposits $ 1,003,969 — $ 1,003,969 — $ 1,003,969 Transaction deposits 2,035,701 — 2,035,701 — 2,035,701 Time deposits 416,475 — 412,477 — 412,477 Securities sold under agreements to repurchase and other short-term borrowings 182,990 — 182,990 — 182,990 Federal Home Loan Bank advances 810,000 — 804,251 — 804,251 Subordinated note 41,240 — 33,724 — 33,724 Accrued interest payable 1,084 — 1,084 — 1,084 Mandatory forward contracts 262 — 262 — 262 Interest rate swap agreements 1,149 — 1,149 — 1,149 |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 6 Months Ended |
Jun. 30, 2019 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 11. MORTGAGE BANKING ACTIVITIES Mortgage Banking activities primarily include residential mortgage originations and servicing. Activity for mortgage loans held for sale, at fair value, was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 11,313 $ 4,496 $ 8,971 $ 5,761 Origination of mortgage loans held for sale 81,982 54,714 122,696 84,124 Proceeds from the sale of mortgage loans held for sale (81,630) (47,642) (121,262) (79,094) Net gain on sale of mortgage loans held for sale 2,218 1,085 3,478 1,862 Balance, end of period $ 13,883 $ 12,653 $ 13,883 $ 12,653 The following table presents the components of Mortgage Banking income: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Net gain realized on sale of mortgage loans held for sale $ 1,896 $ 1,101 $ 2,771 $ 1,698 Net change in fair value recognized on loans held for sale 128 152 46 143 Net change in fair value recognized on rate lock loan commitments 379 (11) 866 122 Net change in fair value recognized on forward contracts (185) (157) (205) (101) Net gain recognized 2,218 1,085 3,478 1,862 Loan servicing income 609 600 1,210 1,205 Amortization of mortgage servicing rights (411) (369) (733) (731) Net servicing income recognized 198 231 477 474 Total Mortgage Banking income $ 2,416 $ 1,316 $ 3,955 $ 2,336 Activity for capitalized mortgage servicing rights was as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 4,935 $ 4,925 $ 4,919 $ 5,044 Additions 634 359 972 602 Amortized to expense (411) (369) (733) (731) Balance, end of period $ 5,158 $ 4,915 $ 5,158 $ 4,915 There was no balance or activity in the valuation allowance for capitalized mortgage servicing rights for the three and six months ended June 30, 2019 and 2018. Other information relating to mortgage servicing rights follows: (in thousands) June 30, 2019 December 31, 2018 Fair value of mortgage servicing rights portfolio $ 7,708 $ 9,357 Monthly weighted average prepayment rate of unpaid principal balance* 232 % 160 % Discount rate 10.00 % 10.00 % Weighted average default (foreclosure) rate 0.07 % 0.14 % Weighted average life in years 5.69 * Rates are applied to individual tranches with similar characteristics. Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and interest rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price and date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Interest rate lock loan commitments represent commitments to fund loans at a specific rate. These derivatives involve underlying items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure is limited to the amounts required to be received or paid. Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors. The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost related to counterparty default. The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the fair value of mortgage loans held for sale and rate lock commitments will decline or increase. To offset this interest rate risk the Bank enters into derivatives, such as mandatory forward contracts to sell loans. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate loan lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans. The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: June 30, 2019 December 31, 2018 Notional Notional (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 13,542 $ 13,883 $ 8,676 $ 8,971 Included in other assets: Rate lock loan commitments $ 52,789 $ 1,222 $ 14,788 $ 356 Included in other liabilities: Mandatory forward contracts $ 55,442 $ 467 $ 20,063 $ 262 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 6 Months Ended |
Jun. 30, 2019 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 12. INTEREST RATE SWAPS Interest rate swap derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a cash flow hedging relationship. For a derivative designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of OCI. For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Interest Rate Swaps Used as Cash Flow Hedges The Bank entered into two interest rate swap agreements (“swaps”) during 2013 as part of its interest rate risk management strategy. The Bank designated the swaps as cash flow hedges intended to reduce the variability in cash flows attributable to either FHLB advances tied to the 3-month LIBOR or the overall changes in cash flows on certain money market deposit accounts tied to 1-month LIBOR. The counterparty for both swaps met the Bank’s credit standards and the Bank believes that the credit risk inherent in the swap contracts is not significant. The swaps were determined to be fully effective during all periods presented; therefore, no amount of ineffectiveness was included in net income. The aggregate fair value of the swaps is recorded in other liabilities with changes in fair value recorded in OCI. The amount included in AOCI would be reclassified to current earnings should the hedge no longer be considered effective. The Bank expects the hedges to remain fully effective during the remaining term of the swaps. The following table reflects information about swaps designated as cash flow hedges: June 30, 2019 December 31, 2018 Unrealized Unrealized Notional Pay Receive Assets / Gain (Loss) Assets / Gain (Loss) (dollars in thousands) Amount Rate Rate Term (Liabilities) AOCI (Liabilities) in AOCI Interest rate swap on money market deposits $ 10,000 2.17 % 1M LIBOR 12/2013 - 12/2020 $ (72) $ (56) $ 58 $ 45 Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 (61) (48) 57 45 Total $ 20,000 $ (133) $ (104) $ 115 $ 90 The following table reflects the total interest expense recorded on these swap transactions in the consolidated statements of income: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Interest rate swap on money market deposits $ (8) $ 3 $ (16) $ 20 Interest rate swap on FHLB advance (5) 6 (16) 15 Total interest (benefit) expense on swap transactions $ (13) $ 9 $ (32) $ 35 The following table presents the net gains (losses) recorded in OCI and the consolidated statements of income relating to the swaps designated as cash flow hedges: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 (Gains) losses recognized in OCI on derivative (effective portion) $ (146) $ 77 $ (215) $ 276 Gains (losses) reclassified from OCI on derivative (effective portion) 13 (9) 32 (35) Gains (losses) recognized in income on derivative (ineffective portion) — — — — The estimated net amount of the existing losses reported in AOCI at June 30, 2019 expected to be reclassified into earnings within the next 12 months is considered immaterial. Non-hedge Interest Rate Swaps The Bank enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Bank enters into offsetting positions in order to minimize the Bank’s interest rate risk. These swaps are derivatives, but are not designated as hedging instruments, and therefore changes in fair value are reported in current year earnings. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or client owes the Bank, and results in credit risk to the Bank. When the fair value of a derivative instrument contract is negative, the Bank owes the client or counterparty, and therefore, has no credit risk. A summary of the Bank’s interest rate swaps related to clients is included in the following table: June 30, 2019 December 31, 2018 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 81,453 $ 4,645 $ 26,398 $ 1,264 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 1,174 (6) 54,718 (908) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 82,627 $ 4,639 $ 81,116 $ 356 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 82,627 (4,639) 81,116 (356) Total $ 165,254 $ — $ 162,232 $ — The Bank is required to pledge securities as collateral when the Bank is in a net loss position for all swaps with dealer counterparties when such net loss positions exceed $250,000. The fair value of cash or investment securities pledged as collateral by the Bank to cover such net loss positions totaled $4.8 million and $0.0 million at June 30, 2019 and December 31, 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company calculates earnings per share under the two-class method. Under the two-class method, earnings available to common shareholders for the period are allocated between Class A Common Stock and Class B Common Stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. The difference in earnings per share between the two classes of common stock results from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2019 2018 2019 2018 Net income $ 18,007 $ 15,666 $ 47,523 $ 43,135 Dividends declared on Common Stock: Class A Shares (4,932) (4,518) (9,865) (9,035) Class B Shares (530) (487) (1,061) (981) Undistributed net income for basic earnings per share 12,545 10,661 36,597 33,119 Weighted average potential dividends on Class A shares upon exercise of dilutive options (32) (35) (68) (64) Undistributed net income for diluted earnings per share $ 12,513 $ 10,626 $ 36,529 $ 33,055 Weighted average shares outstanding: Class A Shares 18,804 18,935 18,785 18,704 Class B Shares 2,212 2,252 2,212 2,235 Effect of dilutive securities on Class A Shares outstanding 122 144 128 133 Weighted average shares outstanding including dilutive securities 21,138 21,331 21,125 21,072 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.53 $ 0.48 Undistributed earnings per share* 0.60 0.51 1.76 1.60 Total basic earnings per share - Class A Common Stock $ 0.86 $ 0.75 $ 2.29 $ 2.08 Class B Common Stock Per share dividends distributed $ 0.24 $ 0.22 $ 0.48 $ 0.44 Undistributed earnings per share* 0.55 0.46 1.60 1.45 Total basic earnings per share - Class B Common Stock $ 0.79 $ 0.68 $ 2.08 $ 1.89 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.53 $ 0.48 Undistributed earnings per share* 0.60 0.50 1.75 1.58 Total diluted earnings per share - Class A Common Stock $ 0.86 $ 0.74 $ 2.28 $ 2.06 Class B Common Stock: Per share dividends distributed $ 0.24 $ 0.22 $ 0.48 $ 0.44 Undistributed earnings per share* 0.54 0.46 1.59 1.44 Total diluted earnings per share - Class B Common Stock $ 0.78 $ 0.68 $ 2.07 $ 1.88 *To arrive at undistributed earnings per share, undistributed net income is first pro rated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Antidilutive stock options 160,000 3,000 165,000 3,000 Average antidilutive stock options 156,000 400 159,000 200 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2019 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 14. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Available-for-Sale Debt Securities: Change in unrealized (loss) gain on AFS debt securities $ 2,014 $ (546) $ 5,673 $ (2,663) Adjustment for adoption of ASU 2016-01 — — — (428) Change in unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings (1) (15) (34) (17) Net unrealized (losses) gains 2,013 (561) 5,639 (3,108) Tax effect (422) 118 (1,186) 652 Net of tax 1,591 (443) 4,453 (2,456) Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (146) 77 (215) 276 Reclassification amount for net derivative losses realized in income (13) 9 (32) 35 Net unrealized gains (159) 86 (247) 311 Tax effect 33 (19) 53 (64) Net of tax (126) 67 (194) 247 Total other comprehensive (loss) income components, net of tax $ 1,465 $ (376) $ 4,259 $ (2,209) The table below presents the significant amounts reclassified out of each component of AOCI: Amounts Reclassified from AOCI Affected Line Items Three Months Ended Six Months Ended in the Consolidated June 30, June 30, (in thousands) Statements of Income 2019 2018 2019 2018 Cash Flow Hedges: Interest rate swap on money market deposits Interest benefit (expense) on deposits $ 8 $ (3) $ 16 $ (20) Interest rate swap on FHLB advance Interest benefit (expense) on FHLB advances 5 (6) 16 (15) Total derivative losses on cash flow hedges Total interest benefit (expense) 13 (9) 32 (35) Tax effect Income tax (benefit) expense (3) 2 (7) 7 Net of tax Net income $ 10 $ (7) $ 25 $ (28) The following is a summary of the AOCI balances, net of tax: 2019 (in thousands) December 31, 2018 Change June 30, 2019 Unrealized gain (loss) on AFS debt securities $ (2,165) $ 4,480 $ 2,315 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,078 (27) 1,051 Unrealized gain (loss) on cash flow hedges 90 (194) (104) Total unrealized (loss) gain $ (997) $ 4,259 $ 3,262 2018 (in thousands) December 31, 2017 Change June 30, 2018 Unrealized loss on AFS debt securities $ (604) $ (2,443) $ (3,047) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,093 (13) 1,080 Unrealized gain (loss) on cash flow hedges (73) 247 174 Total unrealized gain (loss) $ 416 $ (2,209) $ (1,793) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 15. REVENUE FROM CONTRACTS WITH CUSTOMERS On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”). While this update modified guidance for recognizing revenue, it did not have a material impact on the timing or presentation of the Company’s revenue. The majority of the Company’s revenue comes from interest income and other sources, including loans, leases, securities, and derivatives, which are not subject to ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to its client. The Company did elect a practical expedient permitted under this guidance which allows it to expense as-incurred incremental costs of obtaining a contract when the amortization period of those costs would be less than one year. The following tables present the Company’s net revenue by reportable segment: Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Noninterest income: Service charges on deposit accounts 3,585 13 — 3,598 — — — 3,598 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income(1) — — 2,416 2,416 — — — 2,416 Interchange fee income 3,168 — — 3,168 89 — 89 3,257 Program fees(1) — — — — 50 987 1,037 1,037 Increase in cash surrender value of BOLI(1) 377 — — 377 — — — 377 Net gains (losses) on OREO 90 — — 90 — — — 90 Other 633 — 56 689 — 32 32 721 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total net revenue $ 49,730 $ 3,970 $ 2,642 $ 56,342 $ 4,478 $ 8,251 $ 12,729 $ 69,071 Net-revenue concentration(2) 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % Three Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 39,348 $ 4,164 $ 103 $ 43,615 $ 328 $ 7,141 $ 7,469 $ 51,084 Noninterest income: Service charges on deposit accounts 3,563 11 — 3,574 — — — 3,574 Net refund transfer fees — — — — 3,473 — 3,473 3,473 Mortgage banking income(1) — — 1,316 1,316 — — — 1,316 Interchange fee income 2,793 — — 2,793 79 19 98 2,891 Program fees(1) — — — — 124 1,199 1,323 1,323 Increase in cash surrender value of BOLI(1) 379 — — 379 — — — 379 Net gains (losses) on OREO 320 — — 320 — — — 320 Other 670 — 49 719 1 300 301 1,020 Total noninterest income 7,725 11 1,365 9,101 3,677 1,518 5,195 14,296 Total net revenue $ 47,073 $ 4,175 $ 1,468 $ 52,716 $ 4,005 $ 8,659 $ 12,664 $ 65,380 Net-revenue concentration(2) 73 % 6 % 2 % 81 % 6 % 13 % 19 % 100 % (1) This revenue is not subject to ASU 2014-09, Revenue from Contracts with Customers. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Noninterest income: Service charges on deposit accounts 6,878 23 — 6,901 — — — 6,901 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income(1) — — 3,955 3,955 — — — 3,955 Interchange fee income 5,794 — — 5,794 220 — 220 6,014 Program fees(1) — — — — 196 1,915 2,111 2,111 Increase in cash surrender value of BOLI(1) 759 — — 759 — — — 759 Net gains (losses) on OREO 220 — — 220 — — — 220 Other 1,098 — 96 1,194 — 659 659 1,853 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total net revenue $ 97,973 $ 6,875 $ 4,323 $ 109,171 $ 42,293 $ 17,323 $ 59,616 $ 168,787 Net-revenue concentration(2) 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % Six Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 77,536 $ 7,755 $ 175 $ 85,466 $ 19,014 $ 14,269 $ 33,283 $ 118,749 Noninterest income: Service charges on deposit accounts 7,110 19 — 7,129 — — — 7,129 Net refund transfer fees — — — — 19,825 — 19,825 19,825 Mortgage banking income(1) — — 2,336 2,336 — — — 2,336 Interchange fee income 5,331 — — 5,331 188 39 227 5,558 Program fees(1) — — — — 183 2,836 3,019 3,019 Increase in cash surrender value of BOLI(1) 750 — — 750 — — — 750 Net gains (losses) on OREO 452 — — 452 — — — 452 Other 1,084 — 87 1,171 1,002 599 1,601 2,772 Total noninterest income 14,727 19 2,423 17,169 21,198 3,474 24,672 41,841 Total net revenue $ 92,263 $ 7,774 $ 2,598 $ 102,635 $ 40,212 $ 17,743 $ 57,955 $ 160,590 Net-revenue concentration(2) 57 % 5 % 2 % 64 % 25 % 11 % 36 % 100 % (1) This revenue is not subject to ASU 2014-09, Revenue from Contracts with Customers. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. The following represents information for significant revenue streams subject to ASC 606: Service charges on deposits – The Company earns revenue for account-based and event-driven services on its retail and commercial deposit accounts. Contracts for these services are generally in the form of deposit agreements, which disclose fees for deposit services. Revenue for event-driven services is recognized in close proximity or simultaneously with service performance. Revenue for certain account-based services may be recognized at a point in time or over the period the service is rendered, typically no longer than a month. Examples of account-based and event-driven service charges on deposits include per item fees, paper-statement fees, check-cashing fees, and analysis fees. Net refund transfer fees – An RT is a fee-based product offered by the Bank through third-party tax preparers located throughout the United States, as well as tax-preparation software providers (collectively, the “Tax Providers”), with the Bank acting as an independent contractor of the Tax Providers. An RT allows a taxpayer to pay any applicable tax preparation and filing related fees directly from his federal or state government tax refund, with the remainder of the tax refund disbursed directly to the taxpayer. RT fees and all applicable tax preparation, transmitter, audit, and any other taxpayer authorized amounts are deducted from the tax refund by either the Bank or the Bank’s service provider and automatically forwarded to the appropriate party as authorized by the taxpayer. RT fees generally receive first priority when applying fees against the taxpayer’s refund, with the Bank’s share of RT fees generally superior to the claims of other third-party service providers, including the Tax Providers. The remainder of the refund is disbursed to the taxpayer by a Bank check printed at a tax office, direct deposit to the taxpayer’s personal bank account, loaded to a NetSpend Visa® Prepaid Card or Walmart Direct2Cash . The Company executes contracts with individual Tax Providers to offer RTs to their taxpayers. RT revenue is recognized by the Bank immediately after the taxpayer’s refund is disbursed in accordance with the RT contract with the taxpayer. The fee paid by the taxpayer for the RT is shared between the Bank and the Tax Providers based on contracts executed between the parties. The Company presents RT revenue net of any amounts shared with the Tax Providers. The Bank’s share of RT revenue is generally based on the obligations undertaken by the Tax Provider for each individual RT program, with more obligations generally corresponding to higher RT revenue share. The significant majority of net RT revenue is recognized and obligations under RT contracts fulfilled by the Bank during the first half of each year. Incremental expenses associated with the fulfilment of RT contracts are generally expensed during the first half of the year. Interchange fee income – As an “issuing bank” for card transactions, the Company earns interchange fee income on transactions executed by its cardholders with various third-party merchants. Through third-party intermediaries, merchants compensate the Company for each transaction for the ability to efficiently settle the transaction and for the Company’s willingness to accept certain risks inherent in the transaction. There is no written contract between the merchant and the Company, but a contract is implied between the two parties by customary business practices. Interchange fee income is recognized almost simultaneously by the Company upon the completion of a related card transaction. The Company compensates its cardholders by way of cash or other “rewards” for generating card transactions. These rewards are disclosed in cardholder agreements between the Company and its cardholders. Reward costs are accrued over time based on card transactions generated by the cardholder. Interchange fee income is presented net of reward costs within noninterest income. Net gains/(losses) on other real estate – The Company routinely sells OREO it has acquired through loan foreclosure. Net gains/(losses) on OREO reflect both 1) the gain or loss recognized upon an executed deed and 2) mark-to-market writedowns the Company takes on its OREO inventory. The Company generally recognizes gains or losses on OREO at the time of an executed deed, although gains may be recognized over a financing period if the Company finances the sale. For financed OREO sales, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. Mark-to-market writedowns taken by the Company during the property’s holding period are generally at least 10% per year but may be higher based on updated real estate appraisals or BPOs. Incremental expenditures to bring OREO to salable condition are generally expensed as-incurred. Capital commitment fee – The Company received and recorded a $1.0 million nonrefundable capital commitment fee during the first quarter of 2018. The fee was paid by a third party upon the Company’s completion of its contractual obligations to build the infrastructure and disburse funds for a new collaborative credit product offered to the third party’s customers through the Bank. The completion of the infrastructure and the first disbursement of funds were made for this new credit product during the first quarter of 2018. Incremental expenses incurred by the Company to fulfill its obligation under this contract were expensed as-incurred. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and business units), which are then aggregated if operating performance, products/services, and clients are similar. As of June 30, 2019, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. The Bank’s Correspondent Lending channel and the Company’s national branchless banking platform, MemoryBank, are considered part of the Traditional Banking segment. The nature of segment operations and the primary drivers of net revenue by reportable segment are provided below: Reportable Segment: Nature of Operations: Primary Drivers of Net Revenue: Core Banking: Traditional Banking Provides traditional banking products to clients in its market footprint primarily via its network of banking centers and to clients outside of its market footprint primarily via its Digital and Correspondent Lending delivery channels. Loans, investments, and deposits. Warehouse Lending Provides short-term, revolving credit facilities to mortgage bankers across the United States. Mortgage warehouse lines of credit. Mortgage Banking Primarily originates, sells and services long-term, single family, first lien residential real estate loans primarily to clients in the Bank's market footprint. Loan sales and servicing. Republic Processing Group: Tax Refund Solutions TRS offers tax-related credit products and facilitates the receipt and payment of federal and state tax refunds through Refund Transfer products. The RPS division of TRS offers general-purpose reloadable cards. TRS and RPS products are primarily provided to clients outside of the Bank’s market footprint. Loans, refund transfers, and prepaid cards. Republic Credit Solutions Offers consumer credit products. RCS products are primarily provided to clients outside of the Bank’s market footprint, with a substantial portion of RCS clients considered subprime or near-prime borrowers. Unsecured, consumer loans. The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies in the Company’s 2018 Annual Report on Form 10-K. Segment performance is evaluated using operating income. Goodwill is allocated to the Traditional Banking segment. Income taxes are generally allocated based on income before income tax expense unless specific segment allocations can be reasonably made. Transactions among reportable segments are made at carrying value. Segment information follows: Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Provision for loan and lease losses 1,427 417 — 1,844 392 2,224 2,616 4,460 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income — — 2,416 2,416 — — — 2,416 Program fees — — — — 50 987 1,037 1,037 Other noninterest income 7,853 13 56 7,922 89 32 121 8,043 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total noninterest expense 37,764 792 1,354 39,910 2,849 669 3,518 43,428 Income before income tax expense 10,539 2,761 1,288 14,588 1,237 5,358 6,595 21,183 Income tax expense 744 621 270 1,635 288 1,253 1,541 3,176 Net income $ 9,795 $ 2,140 $ 1,018 $ 12,953 $ 949 $ 4,105 $ 5,054 $ 18,007 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.75 % 2.49 % NM 3.62 % NM NM NM 4.12 % Net-revenue concentration* 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % Three Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 39,348 $ 4,164 $ 103 $ 43,615 $ 328 $ 7,141 $ 7,469 $ 51,084 Provision for loan and lease losses 523 250 — 773 (888) 5,047 4,159 4,932 Net refund transfer fees — — — — 3,473 — 3,473 3,473 Mortgage banking income — — 1,316 1,316 — — — 1,316 Program fees — — — — 124 1,199 1,323 1,323 Other noninterest income 7,725 11 49 7,785 80 319 399 8,184 Total noninterest income 7,725 11 1,365 9,101 3,677 1,518 5,195 14,296 Total noninterest expense 35,415 850 1,176 37,441 2,273 918 3,191 40,632 Income before income tax expense 11,135 3,075 292 14,502 2,620 2,694 5,314 19,816 Income tax expense 2,168 702 62 2,932 609 609 1,218 4,150 Net income $ 8,967 $ 2,373 $ 230 $ 11,570 $ 2,011 $ 2,085 $ 4,096 $ 15,666 Period-end assets $ 4,501,539 $ 634,452 $ 17,998 $ 5,153,989 $ 27,192 $ 84,764 $ 111,956 $ 5,265,945 Net interest margin 3.71 % 3.08 % NM 3.64 % NM NM NM 4.19 % Net-revenue concentration* 73 % 6 % 2 % 81 % 6 % 13 % 19 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Provision for loan and lease losses 1,616 642 — 2,258 13,826 5,607 19,433 21,691 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income — — 3,955 3,955 — — — 3,955 Program fees — — — — 196 1,915 2,111 2,111 Other noninterest income 14,749 23 96 14,868 220 659 879 15,747 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total noninterest expense 73,314 1,550 2,674 77,538 9,963 1,436 11,399 88,937 Income before income tax expense 23,043 4,683 1,649 29,375 18,504 10,280 28,784 58,159 Income tax expense 2,509 1,054 346 3,909 4,318 2,409 6,727 10,636 Net income $ 20,534 $ 3,629 $ 1,303 $ 25,466 $ 14,186 $ 7,871 $ 22,057 $ 47,523 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.81 % 2.63 % NM 3.69 % NM NM NM 4.88 % Net-revenue concentration* 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % Six Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 77,536 $ 7,755 $ 175 $ 85,466 $ 19,014 $ 14,269 $ 33,283 $ 118,749 Provision for loan and lease losses 1,462 271 — 1,733 12,501 7,953 20,454 22,187 Net refund transfer fees — — — — 19,825 — 19,825 19,825 Mortgage banking income — — 2,336 2,336 — — — 2,336 Program fees — — — — 183 2,836 3,019 3,019 Other noninterest income 14,727 19 87 14,833 1,190 638 1,828 16,661 Total noninterest income 14,727 19 2,423 17,169 21,198 3,474 24,672 41,841 Total noninterest expense 68,807 1,689 2,380 72,876 8,798 2,003 10,801 83,677 Income before income tax expense 21,994 5,814 218 28,026 18,913 7,787 26,700 54,726 Income tax expense 3,940 1,329 46 5,315 4,463 1,813 6,276 11,591 Net income $ 18,054 $ 4,485 $ 172 $ 22,711 $ 14,450 $ 5,974 $ 20,424 $ 43,135 Period-end assets $ 4,501,539 $ 634,452 $ 17,998 $ 5,153,989 $ 27,192 $ 84,764 $ 111,956 $ 5,265,945 Net interest margin 3.65 % 3.13 % NM 3.60 % NM NM NM 4.85 % Net-revenue concentration* 57 % 5 % 2 % 64 % 25 % 11 % 36 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
INCOME TAXES | |
INCOME TAXES | 17. INCOME TAXES The following table illustrates the difference between the Company’s effective tax rate and the federal rates for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Federal rate times financial statement income 21.00 % 21.00 % 21.00 % 21.00 % Effect of: State taxes, net of federal benefit (2.47) 0.82 (0.51) 1.54 General business tax credits (0.55) (0.63) (0.68) (0.31) Nontaxable income (1.27) (1.35) (0.89) (0.94) Other, net (1.72) 1.10 (0.63) (0.11) Effective tax rate 14.99 % 20.94 % 18.29 % 21.18 % The following matters positively impacted the Company’s effective tax rate for the three and six months ended June 30, 2019: · As a financial institution doing business in Kentucky, the Bank is subject to a capital-based Kentucky bank franchise tax and exempt from Kentucky corporate income tax. In March 2019, however, Kentucky enacted HB354, which will transition the Bank from the bank franchise tax to a corporate income tax beginning January 1, 2021. The current Kentucky corporate income tax rate is 5%. As of March 31, 2019, the Company recorded a deferred tax asset, net of the federal benefit, of $350,000 due to the enactment of HB354, with the majority of this benefit attributed to the Traditional Bank. · In April 2019, Kentucky enacted HB458, which allows for combined filing for Republic Bancorp and the Bank. Republic Bancorp had previously filed a separate company income tax return for Kentucky and generated net operating losses, for which it had maintained a valuation allowance against the related deferred tax asset. HB458 also allows for certain net operating losses to be utilized on a combined return. Republic Bancorp expects to file a combined return beginning in 2021 and to utilize these previously generated net operating losses. The tax benefit to reverse the valuation allowance on the deferred tax asset for these losses is approximately $815,000. This benefit was recorded in the second quarter of 2019, with 100% of this benefit attributed to the Traditional Bank. · In addition to the tax benefit recognized during the second quarter associated with passage of HB458, the Company also received $388,000 in income tax benefit during the second quarter of 2019 associated with equity compensation. Substantially all of this benefit was attributed to the Traditional Bank. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2019 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 18. SUBSEQUENT EVENT Sale of Four Banking Centers In July 2019, the Bank entered into a definitive agreement to sell its four banking centers located in the Kentucky cities of Owensboro, Elizabethtown and Frankfort to Limestone Bank (“Limestone”), a subsidiary of Limestone Bancorp, Inc. The agreement provides that Limestone will acquire loans, including credit cards, with balances of approximately $112 million as of June 30, 2019, and assume deposits with balances of approximately $153 million as of the same date, associated with the four banking centers. In addition, Limestone will acquire substantially all the fixed assets of these locations, which had a book value of $1.3 million as of June 30, 2019. Based on the June 30, 2019 deposits, the all-in blended premium for the transaction is expected to be near 6% of the total deposits transferred. The final calculated premium will be primarily based on the trailing 10-day average amount of the deposits as of the closing date, as well as the branch location for the deposits. The transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to be completed in the fourth quarter of 2019. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation — The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiaries, Republic Bank & Trust Company and Republic Insurance Services, Inc. As used in this filing, the terms “Republic,” the “Company,” “we,” “our,” and “us” refer to Republic Bancorp, Inc., and, where the context requires, Republic Bancorp, Inc. and its subsidiaries. The term the “Bank” refers to the Company’s subsidiary bank: Republic Bank & Trust Company. The term the “Captive” refers to the Company’s insurance subsidiary: Republic Insurance Services, Inc. All significant intercompany balances and transactions are eliminated in consolidation. Republic is a financial holding company headquartered in Louisville, Kentucky. The Bank is a Kentucky-based, state-chartered non-member financial institution that provides both traditional and non-traditional banking products through five reportable segments using a multitude of delivery channels. While the Bank operates primarily in its market footprint, its non-brick-and-mortar delivery channels allow it to reach clients across the United States. The Captive is a Nevada-based, wholly-owned insurance subsidiary of the Company. The Captive provides property and casualty insurance coverage to the Company and the Bank as well as a group of third-party insurance captives for which insurance may not be available or economically feasible. Republic Bancorp Capital Trust is a Delaware statutory business trust that is a wholly-owned unconsolidated finance subsidiary of Republic Bancorp, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, refer to the consolidated financial statements and footnotes thereto included in Republic’s Form 10-K for the year ended December 31, 2018. As of June 30, 2019, the Company was divided into five reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last two segments collectively constitute RPG operations. The Bank’s Correspondent Lending channel and the Company’s national branchless banking platform, MemoryBank ® , are considered part of the Traditional Banking segment. Core Bank Traditional Banking segment — The Traditional Banking segment provides traditional banking products primarily to customers in the Company’s market footprint. As of June 30, 2019, Republic had 45 full-service banking centers and two LPOs with locations as follows: Kentucky — 32 Metropolitan Louisville — 18 Central Kentucky — 9 Elizabethtown — 1* Frankfort — 1* Georgetown — 1 Lexington — 5 Shelbyville — 1 Western Kentucky — 2 Owensboro — 2* Northern Kentucky — 3 Covington — 1 Crestview Hills — 1 Florence — 1 Southern Indiana — 3 Floyds Knobs — 1 Jeffersonville — 1 New Albany — 1 Metropolitan Tampa, Florida — 8** Metropolitan Cincinnati, Ohio — 1 Metropolitan Nashville, Tennessee — 3** * The Company agreed to sell banking center(s) in July 2019. See Note 18 in this section of the filing for additional information. ** Includes an LPO Republic’s headquarters are in Louisville, which is the largest city in Kentucky based on population. Traditional Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Traditional Banking assets represent investment securities and commercial and consumer loans primarily secured by real estate and/or personal property. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. FHLB advances have traditionally been a significant borrowing source for the Bank. Other sources of Traditional Banking income include service charges on deposit accounts, debit and credit card interchange fee income, title insurance commissions, fees charged to clients for trust services, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, interchange related expenses, marketing and development expenses, FDIC insurance expense, franchise tax expense and various other general and administrative costs. Traditional Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies and actions of regulatory agencies. The Traditional Bank has acquired for investment single family, first lien mortgage loans that meet the Traditional Bank’s specifications through its Correspondent Lending channel. Substantially all loans purchased through the Correspondent Lending channel are purchased at a premium. Warehouse Lending segment — Through its Warehouse Lending segment, the Core Bank provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit. These credit facilities are primarily secured by single family, first lien residential real estate loans. The credit facility enables the mortgage banking clients to close single family, first lien residential real estate loans in their own name and temporarily fund their inventory of these closed loans until the loans are sold to investors approved by the Bank. Individual loans are expected to remain on the warehouse line for an average of 15 to 30 days. Reverse mortgage loans typically remain on the line longer than conventional mortgage loans. Interest income and loan fees are accrued for each individual loan during the time the loan remains on the warehouse line and collected when the loan is sold. The Core Bank receives the sale proceeds of each loan directly from the investor and applies the funds to pay off the warehouse advance and related accrued interest and fees. The remaining proceeds are credited to the mortgage-banking client. Mortgage Banking segment — Mortgage Banking activities primarily include 15-, 20- and 30-year fixed-term single family, first lien residential real estate loans that are originated and sold into the secondary market, primarily to the FHLMC and the FNMA. The Bank typically retains servicing on loans sold into the secondary market. Administration of loans with servicing retained by the Bank includes collecting principal and interest payments, escrowing funds for property taxes and property insurance, and remitting payments to secondary market investors. The Bank receives fees for performing these standard servicing functions. Republic Processing Group Tax Refund Solutions segment — Through the TRS segment, the Bank is one of a limited number of financial institutions that facilitates the receipt and payment of federal and state tax refund products and offers a credit product through third-party tax preparers located throughout the United States, as well as tax-preparation software providers (collectively, the “Tax Providers”). Substantially all of the business generated by the TRS segment occurs in the first half of the year. The TRS segment traditionally operates at a loss during the second half of the year, during which time the segment incurs costs preparing for the upcoming year’s tax season. RTs are fee-based products whereby a tax refund is issued to the taxpayer after the Bank has received the refund from the federal or state government. There is no credit risk or borrowing cost associated with these products because they are only delivered to the taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned by the Company on RTs, net of revenue share, are reported as noninterest income under the line item “Net refund transfer fees.” The EA tax credit product is a loan that allows a taxpayer to borrow funds as an advance of a portion of their tax refund. EA features consistent during 2018 and 2019: · Offered only during the first two months of each year; · No requirement that the taxpayer pays for another bank product, such as an RT; · Multiple funds disbursement methods, including direct deposit, prepaid card, check, or Walmart Direct2Cash ® , based on the taxpayer-customer’s election; · Repayment of the EA to the Bank is deducted from the taxpayer’s tax refund proceeds; and · If an insufficient refund to repay the EA occurs: o there is no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. EA features modified from 2018 to 2019: · During 2019, the taxpayer was given the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $6,250. This compares to a maximum loan amount of $3,500 during 2018; and · During 2018, EA fees were charged only to the Tax Providers. In 2019, the fee charged to the Tax Providers was lowered; and a direct fee to the taxpayer was charged. The APR to the taxpayer for his or her portion of the total fee equated to less than 36% for all offering tiers. The Company reports fees paid for the EA product as interest income on loans. EAs are generally repaid within three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. EAs do not have a contractual due date but the Company considers an EA delinquent if it remains unpaid three weeks after the taxpayer’s tax return is submitted to the applicable taxing authority. Provisions for loan losses on EAs are estimated when advances are made, with provisions for all probable EA losses made in the first quarter of each year. Unpaid EAs are charged off by June 30 th of each year, with EAs collected during the second half of each year recorded as recoveries of previously charged off loans. Related to the overall credit losses on EAs, the Bank’s ability to control losses is highly dependent upon its ability to predict the taxpayer’s likelihood to receive the tax refund as claimed on the taxpayer’s tax return. Each year, the Bank’s EA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the EA volume occurs each year before that year’s tax refund payment patterns can be analyzed and subsequent underwriting changes made, credit losses during a current year could be higher than management’s predictions if tax refund payment patterns change materially between years. Republic Payment Solutions — RPS is managed and operated within the TRS segment. The RPS division is an issuing bank offering general-purpose reloadable prepaid cards through third-party service providers. For the projected near-term, as the prepaid card program matures, the operating results of the RPS division are expected to be immaterial to the Company’s overall results of operations and will be reported as part of the TRS segment. The RPS division will not be considered a separate reportable segment until such time, if any, that it meets quantitative reporting thresholds. The Company reports fees related to RPS programs under Program fees. Additionally, the Company’s portion of interchange revenue generated by prepaid card transactions is reported as noninterest income under “Interchange fee income.” Republic Credit Solutions segment — Through the RCS segment, the Bank offers consumer credit products. In general, the credit products are unsecured, small dollar consumer loans and are dependent on various factors including the consumer’s ability to repay. RCS loans typically earn a higher yield but also have higher credit risk compared to loans originated through the Traditional Banking segment, with a significant portion of RCS clients considered subprime or near-prime borrowers. Additional information regarding consumer loan products offered through RCS follows: · RCS line-of-credit product – The Bank originates a line-of-credit product to generally subprime borrowers across the United States with certain services provided by Elevate Credit, Inc., its third-party servicer provider. RCS sells participation interests equal to 90% of the balances generated within three business days to a third-party special purpose entity and retains the remaining 10% interest. The line-of-credit product represents the substantial majority of RCS activity. Loan balances held for sale are carried at the lower of cost or fair value. · RCS healthcare receivables product – The Bank originates healthcare-receivables products across the United States through two different third-party service providers. In one program, the Bank retains 100% of the receivables originated. In the other program, the Bank retains 100% of the receivables originated in some instances, and in other instances, sells 100% of the receivables within one month of origination. Loan balances held for sale are carried at the lower of cost or fair value. From the fourth quarter of 2015 through the first quarter of 2018, the Bank piloted through RCS a credit-card product to generally subprime borrowers across the United States through one third-party marketer/servicer. For outstanding cards, RCS sold 90% of the balances generated within two business days of each transaction occurrence to a special purpose entity related to its third-party marketer/servicer and retained the remaining 10% interest. During the fourth quarter of 2018, the Bank and its third-party marketer/servicer finalized an agreement to sell 100% of the existing portfolio to an unrelated third party. The sale of the RCS credit-card portfolio receivables was settled in January 2019 and all accounts and related assets were transferred in March 2019. The Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any gains or losses on sale of RCS loans are reported as noninterest income under “Program fees.” |
Accounting Standards Update (“ASUs”) | Accounting Standards Updates Issued The following ASUs were issued prior to June 30, 2019 and are considered relevant to the Company’s financial statements. Generally, if an issued-but-not-yet-effective ASU with an expected immaterial impact to the Company has been disclosed in prior Company financial statements, it will not be re-disclosed below. ASU. No. Topic Nature of Update Date Adoption Required Permitted Adoption Methods Expected Financial Statement Impact 2016-13 Financial Instruments – Credit Losses (Topic 326) This ASU amends guidance on reporting credit losses for assets held at amortized-cost basis and available-for-sale debt securities. January 1, 2020 Modified-retrospective approach. As a result of this ASU, the Company expects an as yet undetermined increase in its allowance for credit losses. A committee formed by the Company to oversee its transition to a current expected credit losses (“CECL”) methodology has analyzed the Company’s loan-level data and preliminarily concluded that no additional loan level segmentation beyond its current methodology segmentation would be warranted under CECL. The Company is also currently performing iterations of its allowance calculation under a “beta” CECL model provided by the same third-party software solution currently-employed to calculate the Company's allowance for loan and lease losses. 2019-04 Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. Based on areas amended. Based on areas amended. Immaterial 2019-05 Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief This ASU provides the fair value option for certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses. January 1, 2020 Modified-retrospective approach. The Company has this ASU under consideration. Accounting Standards Updates Adopted The following ASUs were adopted by the Company during the six months ended June 30, 2019: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2016-02 Leases (Topic 842) Most leases are considered operating leases, which are not accounted for on the lessees’ balance sheets. The significant change under this ASU is that those operating leases will be recorded on the balance sheet. January 1, 2019 Modified-retrospective approach, which includes a number of optional practical expedients. The Company adopted this ASU on January 1, 2019 and upon adoption recorded $40 million of right-of-use lease assets and $42 million of operating lease liabilities on its balance sheet. The adoption of this ASU did not have a meaningful impact on the Company's performance metrics, including regulatory capital ratios and return on average assets. Additionally, the Company does not believe that the adoption of this ASU by its clients will have a significant impact on the Company's ability to underwrite credit when client financial statements are presented inclusive of the requirements of this ASU. See Note 7 in this section of the filing regarding disclosures by the Company to comply with this ASU. 2018-10 Codification Improvements to Topic 842, Leases This ASU affects narrow aspects of the guidance issued in the amendments in ASU 2016-02. January 1, 2019 Adoption should conform to the adoption of ASU 2016-02 above. See Note 7 in this section of the filing regarding disclosures by the Company to comply with this ASU. 2018-11 Leases (Topic 842): Targeted Improvements This ASU provides the Company with an additional (and optional) transition method to adopt ASU 2016-02. This ASU also provides the Company with a practical expedient to not separate non-lease components from the associated lease component under certain circumstances. January 1, 2019 Adoption should conform to the adoption of ASU 2016-02 above. The Company elected the optional transition method permitted by this ASU, allowing the Company to adopt ASU 2016-02, effective January 1, 2019 with a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. 2017-12 Derivatives and Hedging (Topic 815) The amendments in this ASU make certain targeted improvements to simplify the application of hedge accounting. January 1, 2019 Prospectively. Immaterial |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | ASU. No. Topic Nature of Update Date Adoption Required Permitted Adoption Methods Expected Financial Statement Impact 2016-13 Financial Instruments – Credit Losses (Topic 326) This ASU amends guidance on reporting credit losses for assets held at amortized-cost basis and available-for-sale debt securities. January 1, 2020 Modified-retrospective approach. As a result of this ASU, the Company expects an as yet undetermined increase in its allowance for credit losses. A committee formed by the Company to oversee its transition to a current expected credit losses (“CECL”) methodology has analyzed the Company’s loan-level data and preliminarily concluded that no additional loan level segmentation beyond its current methodology segmentation would be warranted under CECL. The Company is also currently performing iterations of its allowance calculation under a “beta” CECL model provided by the same third-party software solution currently-employed to calculate the Company's allowance for loan and lease losses. 2019-04 Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. Based on areas amended. Based on areas amended. Immaterial 2019-05 Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief This ASU provides the fair value option for certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses. January 1, 2020 Modified-retrospective approach. The Company has this ASU under consideration. Accounting Standards Updates Adopted The following ASUs were adopted by the Company during the six months ended June 30, 2019: ASU. No. Topic Nature of Update Date Adopted Method of Adoption Financial Statement Impact 2016-02 Leases (Topic 842) Most leases are considered operating leases, which are not accounted for on the lessees’ balance sheets. The significant change under this ASU is that those operating leases will be recorded on the balance sheet. January 1, 2019 Modified-retrospective approach, which includes a number of optional practical expedients. The Company adopted this ASU on January 1, 2019 and upon adoption recorded $40 million of right-of-use lease assets and $42 million of operating lease liabilities on its balance sheet. The adoption of this ASU did not have a meaningful impact on the Company's performance metrics, including regulatory capital ratios and return on average assets. Additionally, the Company does not believe that the adoption of this ASU by its clients will have a significant impact on the Company's ability to underwrite credit when client financial statements are presented inclusive of the requirements of this ASU. See Note 7 in this section of the filing regarding disclosures by the Company to comply with this ASU. 2018-10 Codification Improvements to Topic 842, Leases This ASU affects narrow aspects of the guidance issued in the amendments in ASU 2016-02. January 1, 2019 Adoption should conform to the adoption of ASU 2016-02 above. See Note 7 in this section of the filing regarding disclosures by the Company to comply with this ASU. 2018-11 Leases (Topic 842): Targeted Improvements This ASU provides the Company with an additional (and optional) transition method to adopt ASU 2016-02. This ASU also provides the Company with a practical expedient to not separate non-lease components from the associated lease component under certain circumstances. January 1, 2019 Adoption should conform to the adoption of ASU 2016-02 above. The Company elected the optional transition method permitted by this ASU, allowing the Company to adopt ASU 2016-02, effective January 1, 2019 with a cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. 2017-12 Derivatives and Hedging (Topic 815) The amendments in this ASU make certain targeted improvements to simplify the application of hedge accounting. January 1, 2019 Prospectively. Immaterial |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
INVESTMENT SECURITIES | |
Schedule of gross amortized cost and fair value of available-for-sale debt securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income | Gross Gross Amortized Unrealized Unrealized Fair June 30, 2019 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 139,608 $ 20 $ (293) $ 139,335 Private label mortgage backed security 2,285 1,330 — 3,615 Mortgage backed securities - residential 151,504 2,911 (223) 154,192 Collateralized mortgage obligations 69,143 375 (139) 69,379 Corporate bonds 10,000 — (165) 9,835 Trust preferred security 3,554 446 — 4,000 Total available-for-sale debt securities $ 376,094 $ 5,082 $ (820) $ 380,356 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 (in thousands) Cost Gains Losses Value U.S. Treasury securities and U.S. Government agencies $ 218,502 $ 25 $ (1,654) $ 216,873 Private label mortgage backed security 2,348 1,364 — 3,712 Mortgage backed securities - residential 168,992 1,470 (1,253) 169,209 Collateralized mortgage obligations 73,740 222 (1,151) 72,811 Corporate bonds 10,000 — (942) 9,058 Trust preferred security 3,533 542 — 4,075 Total available-for-sale debt securities $ 477,115 $ 3,623 $ (5,000) $ 475,738 |
Schedule of carrying value, gross unrecognized gains and losses, and fair value of held-to-maturity debt securities | Gross Gross Carrying Unrecognized Unrecognized Fair June 30, 2019 (in thousands) Value Gains Losses Value Mortgage backed securities - residential $ 129 $ 8 $ — $ 137 Collateralized mortgage obligations 18,232 116 (17) 18,331 Corporate bonds 45,079 441 (17) 45,503 Obligations of state and political subdivisions 462 — — 462 Total held-to-maturity debt securities $ 63,902 $ 565 $ (34) $ 64,433 Gross Gross Carrying Unrecognized Unrecognized Fair December 31, 2018 (in thousands) Value Gains Losses Value Mortgage backed securities - residential $ 132 $ 8 $ — $ 140 Collateralized mortgage obligations 19,544 178 (46) 19,676 Corporate bonds 45,088 16 (514) 44,590 Obligations of state and political subdivisions 463 — (11) 452 Total held-to-maturity debt securities $ 65,227 $ 202 $ (571) $ 64,858 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Carrying Fair June 30, 2019 (in thousands) Cost Value Value Value Due in one year or less $ 77,383 $ 77,167 $ 5,075 $ 5,103 Due from one year to five years 72,225 72,003 35,522 35,935 Due from five years to ten years — — 4,944 4,927 Due beyond ten years 3,554 4,000 — — Private label mortgage backed security 2,285 3,615 — — Mortgage backed securities - residential 151,504 154,192 129 137 Collateralized mortgage obligations 69,143 69,379 18,232 18,331 Total debt securities $ 376,094 $ 380,356 $ 63,902 $ 64,433 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ — $ 107,091 $ (293) $ 107,091 $ (293) Mortgage backed securities - residential — — 39,033 (223) 39,033 (223) Collateralized mortgage obligations 4,189 (5) 20,687 (134) 24,876 (139) Corporate bonds — — 9,835 (165) 9,835 (165) Total available-for-sale debt securities $ 4,189 $ (5) $ 176,646 $ (815) $ 180,835 $ (820) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2018 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ 71,627 $ (598) $ 106,136 $ (1,056) $ 177,763 $ (1,654) Mortgage backed securities - residential 43,691 (484) 32,003 (769) 75,694 (1,253) Collateralized mortgage obligations 16,487 (473) 31,071 (678) 47,558 (1,151) Corporate bonds 9,058 (942) — — 9,058 (942) Total available-for-sale debt securities $ 140,863 $ (2,497) $ 169,210 $ (2,503) $ 310,073 $ (5,000) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized June 30, 2019 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Held-to-maturity debt securities: Collateralized mortgage obligations $ — $ — $ 5,213 $ (17) $ 5,213 $ (17) Corporate bonds 4,927 (17) — — 4,927 (17) Total held-to-maturity debt securities: $ 4,927 $ (17) $ 5,213 $ (17) $ 10,140 $ (34) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2018 (in thousands) Fair Value Losses Fair Value Losses Fair Value Losses Held-to-maturity debt securities: Collateralized mortgage obligations $ — $ — $ 5,539 $ (46) $ 5,539 $ (46) Corporate bonds 39,499 (514) — — 39,499 (514) Obligations of state and political subdivisions 105 (1) 347 (10) 452 (11) Total held-to-maturity debt securities: $ 39,604 $ (515) $ 5,886 $ (56) $ 45,490 $ (571) |
Schedule of pledged investment securities | (in thousands) June 30, 2019 December 31, 2018 Carrying amount $ 274,545 $ 240,590 Fair value 274,652 240,700 |
Schedule of carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values | Gross Gross Amortized Unrealized Unrealized Fair June 30, 2019 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 787 $ — $ 787 Community Reinvestment Act mutual fund 2,500 — (33) 2,467 Total equity securities with readily determinable fair values $ 2,500 $ 787 $ (33) $ 3,254 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 410 $ — $ 410 Community Reinvestment Act mutual fund 2,500 — (104) 2,396 Total equity securities with readily determinable fair values $ 2,500 $ 410 $ (104) $ 2,806 |
Schedule of equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company’s consolidated statements of income | Gains (Losses) Recognized on Equity Securities Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 126 $ 126 $ — $ 60 $ 60 Community Reinvestment Act mutual fund — 33 33 — (14) (14) Total equity securities with readily determinable fair value $ — $ 159 $ 159 $ — $ 46 $ 46 Gains (Losses) Recognized on Equity Securities Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 378 $ 378 $ — $ (84) $ (84) Community Reinvestment Act mutual fund — 70 70 — (51) (51) Total equity securities with readily determinable fair value $ — $ 448 $ 448 $ — $ (135) $ (135) |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
LOANS HELD FOR SALE. | |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 12,864 $ 7,380 $ 12,838 $ 8,551 Origination of consumer loans held for sale 200,327 198,903 346,413 356,424 Proceeds from the sale of consumer loans held for sale (176,759) (194,263) (324,260) (354,529) Net gain on sale of consumer loans held for sale 1,177 1,664 2,618 3,238 Balance, end of period $ 37,609 $ 13,684 $ 37,609 $ 13,684 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | |
Schedule of composition of loan portfolio | (in thousands) June 30, 2019 December 31, 2018 Traditional Banking: Residential real estate: Owner occupied $ 907,826 $ 907,005 Owner occupied - correspondent* 78,943 94,827 Nonowner occupied 259,166 242,846 Commercial real estate 1,253,868 1,248,940 Construction & land development 190,984 175,178 Commercial & industrial 447,295 430,355 Lease financing receivables 17,271 15,031 Home equity 296,834 332,548 Consumer: Credit cards 17,429 19,095 Overdrafts 894 1,102 Automobile loans 63,553 63,475 Other consumer 53,768 46,642 Total Traditional Banking 3,587,831 3,577,044 Warehouse lines of credit* 725,337 468,695 Total Core Banking 4,313,168 4,045,739 Republic Processing Group*: Tax Refund Solutions: Easy Advances — — Other TRS loans 711 13,744 Republic Credit Solutions 96,790 88,744 Total Republic Processing Group 97,501 102,488 Total loans** 4,410,669 4,148,227 Allowance for loan and lease losses (45,983) (44,675) Total loans, net $ 4,364,686 $ 4,103,552 *Identifies loans to borrowers located primarily outside of the Bank’s market footprint. ** Total loans are presented inclusive of premiums, discounts and net loan origination fees and costs. See table directly below for expanded detail. |
Schedule that reconciles the contractually receivable and carrying amounts of loans | (in thousands) June 30, 2019 December 31, 2018 Contractually receivable $ 4,409,882 $ 4,147,249 Unearned income(1) (1,287) (1,038) Unamortized premiums(2) 487 588 Unaccreted discounts(3) (3,064) (3,400) Net unamortized deferred origination fees and costs(4) 4,651 4,828 Carrying value of loans $ 4,410,669 $ 4,148,227 (1) Unearned income relates to lease financing receivables. (2) Unamortized premiums predominately relate to loans acquired through the Bank’s Correspondent Lending channel. (3) Unaccreted discounts include accretable and non-accretable discounts and relate to loans acquired in the Bank’s 2016 Cornerstone acquisition and its 2012 FDIC-assisted transactions. (4) Primarily attributable to the Traditional Banking segment. |
Reconciliation of contractually-required and carrying amounts of PCI loans | (in thousands) June 30, 2019 December 31, 2018 Contractually required principal $ 3,882 $ 4,251 Non-accretable amount (1,379) (1,521) Accretable amount (50) (50) Carrying value of loans $ 2,453 $ 2,680 |
Rollforward of the accretable amount on PCI loans | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ (50) $ (140) $ (50) $ (140) Transfers between non-accretable and accretable* (26) (241) (142) (241) Net accretion into interest income on loans, including loan fees 26 281 142 281 Balance, end of period $ (50) $ (100) $ (50) $ (100) * Transfers are primarily attributable to changes in estimated cash flows of the underlying loans. |
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed | June 30, 2019 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 13,234 $ 11,043 $ — $ 165 $ 1,378 $ 25,820 Owner occupied - correspondent — — 848 — — — 848 Nonowner occupied — 491 1,310 — — — 1,801 Commercial real estate 1,246,137 3,632 3,226 — 873 — 1,253,868 Construction & land development 188,719 2,205 60 — — — 190,984 Commercial & industrial 440,956 1,264 5,051 — 24 — 447,295 Lease financing receivables 17,271 — — — — — 17,271 Home equity — — 2,333 — 3 7 2,343 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 80 — — — 80 Other consumer — — 386 — — 3 389 Total Traditional Banking 1,893,083 20,826 24,337 — 1,065 1,388 1,940,699 Warehouse lines of credit 725,337 — — — — — 725,337 Total Core Banking 2,618,420 20,826 24,337 — 1,065 1,388 2,666,036 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — Other TRS loans — — 13 — — — 13 Republic Credit Solutions — — 108 — — — 108 Total Republic Processing Group — — 121 — — — 121 Total rated loans $ 2,618,420 $ 20,826 $ 24,458 $ — $ 1,065 $ 1,388 $ 2,666,157 December 31, 2018 Special Doubtful / PCI Loans - PCI Loans - Total Rated (in thousands) Pass Mention Substandard Loss Group 1 Substandard Loans* Traditional Banking: Residential real estate: Owner occupied $ — $ 14,536 $ 11,690 $ — $ 170 $ 1,476 $ 27,872 Owner occupied - correspondent — — 382 — — — 382 Nonowner occupied — 575 1,889 — — — 2,464 Commercial real estate 1,239,576 5,281 3,162 — 921 — 1,248,940 Construction & land development 175,113 — 65 — — — 175,178 Commercial & industrial 428,897 813 620 — 25 — 430,355 Lease financing receivables 15,031 — — — — — 15,031 Home equity — — 1,361 — 5 81 1,447 Consumer: Credit cards — — — — — — — Overdrafts — — — — — — — Automobile loans — — 91 — — — 91 Other consumer — — 462 — — 2 464 Total Traditional Banking 1,858,617 21,205 19,722 — 1,121 1,559 1,902,224 Warehouse lines of credit 468,695 — — — — — 468,695 Total Core Banking 2,327,312 21,205 19,722 — 1,121 1,559 2,370,919 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — Other TRS loans — — — — — — — Republic Credit Solutions — — 138 — — — 138 Total Republic Processing Group — — 138 — — — 138 Total rated loans $ 2,327,312 $ 21,205 $ 19,860 $ — $ 1,121 $ 1,559 $ 2,371,057 *The above tables exclude all non-classified residential real estate, home equity and consumer loans at the respective period ends. |
Schedule of activity in the allowance for loan and lease losses | Allowance Rollforward Three Months Ended June 30, 2019 2018 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 5,579 $ (417) $ (367) $ 221 $ 5,016 $ 5,988 $ (116) $ (15) $ 178 $ 6,035 Owner occupied - correspondent 222 (25) — — 197 278 (15) — — 263 Nonowner occupied 1,720 48 (1) 8 1,775 1,461 93 (7) 5 1,552 Commercial real estate 10,235 329 — 2 10,566 9,460 352 — 3 9,815 Construction & land development 2,443 467 — — 2,910 2,720 80 — 25 2,825 Commercial & industrial 3,235 983 — 3 4,221 2,247 84 (17) 4 2,318 Lease financing receivables 150 31 — — 181 165 (5) — — 160 Home equity 3,337 (221) — 8 3,124 3,669 (180) (34) 203 3,658 Consumer: Credit cards 1,079 14 (76) 11 1,028 756 124 (95) 20 805 Overdrafts 892 250 (299) 51 894 791 296 (270) 61 878 Automobile loans 768 (61) — 1 708 706 (39) (4) 1 664 Other consumer 512 29 (48) 56 549 990 (151) (136) 73 776 Total Traditional Banking 30,172 1,427 (791) 361 31,169 29,231 523 (578) 573 29,749 Warehouse lines of credit 1,397 417 — — 1,814 1,335 250 — — 1,585 Total Core Banking 31,569 1,844 (791) 361 32,983 30,566 773 (578) 573 31,334 Republic Processing Group: Tax Refund Solutions: Easy Advances 13,381 39 (13,425) 5 — 9,572 (881) (8,773) 82 — Other TRS loans 149 353 (264) (6) 232 125 (7) (55) 4 67 Republic Credit Solutions 12,862 2,224 (2,683) 365 12,768 12,078 5,047 (3,769) 290 13,646 Total Republic Processing Group 26,392 2,616 (16,372) 364 13,000 21,775 4,159 (12,597) 376 13,713 Total $ 57,961 $ 4,460 $ (17,163) $ 725 $ 45,983 $ 52,341 $ 4,932 $ (13,175) $ 949 $ 45,047 Allowance Rollforward Six Months Ended June 30, 2019 2018 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner occupied $ 5,798 $ (657) $ (384) $ 259 $ 5,016 $ 6,182 $ (307) $ (39) $ 199 $ 6,035 Owner occupied - correspondent 237 (40) — — 197 292 (29) — — 263 Nonowner occupied 1,662 178 (73) 8 1,775 1,396 449 (319) 26 1,552 Commercial real estate 10,030 532 — 4 10,566 9,043 644 — 128 9,815 Construction & land development 2,555 355 — — 2,910 2,364 434 — 27 2,825 Commercial & industrial 2,873 1,343 — 5 4,221 2,198 210 (125) 35 2,318 Lease financing receivables 158 23 — — 181 174 (14) — — 160 Home equity 3,477 (378) (13) 38 3,124 3,754 (291) (34) 229 3,658 Consumer: Credit cards 1,140 79 (226) 35 1,028 607 359 (188) 27 805 Overdrafts 1,102 269 (593) 116 894 974 313 (559) 150 878 Automobile loans 724 (23) — 7 708 687 (20) (4) 1 664 Other consumer 591 (65) (114) 137 549 1,162 (286) (256) 156 776 Total Traditional Banking 30,347 1,616 (1,403) 609 31,169 28,833 1,462 (1,524) 978 29,749 Warehouse lines of credit 1,172 642 — — 1,814 1,314 271 — — 1,585 Total Core Banking 31,519 2,258 (1,403) 609 32,983 30,147 1,733 (1,524) 978 31,334 Republic Processing Group: Tax Refund Solutions: Easy Advances — 13,420 (13,425) 5 — — 12,396 (12,478) 82 — Other TRS loans 107 406 (281) — 232 12 105 (55) 5 67 Republic Credit Solutions 13,049 5,607 (6,507) 619 12,768 12,610 7,953 (7,465) 548 13,646 Total Republic Processing Group 13,156 19,433 (20,213) 624 13,000 12,622 20,454 (19,998) 635 13,713 Total $ 44,675 $ 21,691 $ (21,616) $ 1,233 $ 45,983 $ 42,769 $ 22,187 $ (21,522) $ 1,613 $ 45,047 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | (dollars in thousands) June 30, 2019 December 31, 2018 Loans on nonaccrual status* $ 19,238 $ 15,993 Loans past due 90-days-or-more and still on accrual** 166 145 Total nonperforming loans 19,404 16,138 Other real estate owned 1,095 160 Total nonperforming assets $ 20,499 $ 16,298 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.44 % 0.39 % Nonperforming assets to total loans (including OREO) 0.46 0.39 Nonperforming assets to total assets 0.36 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.45 % 0.40 % Nonperforming assets to total loans (including OREO) 0.47 0.40 Nonperforming assets to total assets 0.37 0.32 *Loans on nonaccrual status include impaired loans. **Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. |
Schedule of recorded investment in non-accrual loans and loans past due over 90-days-or-more and still on accrual by class of loans | Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* (in thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Traditional Banking: Residential real estate: Owner occupied $ 8,879 $ 10,800 $ — $ — Owner occupied - correspondent 848 382 — — Nonowner occupied 461 669 — — Commercial real estate 2,361 2,318 — — Construction & land development 134 — — — Commercial & industrial 5,046 630 — — Lease financing receivables — — — — Home equity 1,444 1,095 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 47 75 — — Other consumer 18 24 — 13 Total Traditional Banking 19,238 15,993 — 13 Warehouse lines of credit — — — — Total Core Banking 19,238 15,993 — 13 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — Other TRS loans — — 13 4 Republic Credit Solutions — — 153 128 Total Republic Processing Group — — 166 132 Total $ 19,238 $ 15,993 $ 166 $ 145 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. |
Schedule of aging of the recorded investment in loans by class of loans | 30 - 59 60 - 89 90 or More June 30, 2019 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,252 $ 962 $ 1,844 $ 4,058 $ 903,768 $ 907,826 Owner occupied - correspondent — — — — 78,943 78,943 Nonowner occupied 240 — 431 671 258,495 259,166 Commercial real estate — 597 301 898 1,252,970 1,253,868 Construction & land development 412 128 — 540 190,444 190,984 Commercial & industrial 507 4,426 — 4,933 442,362 447,295 Lease financing receivables — — — — 17,271 17,271 Home equity 216 498 264 978 295,856 296,834 Consumer: Credit cards 76 14 — 90 17,339 17,429 Overdrafts 272 6 — 278 616 894 Automobile loans 39 25 — 64 63,489 63,553 Other consumer 7 7 — 14 53,754 53,768 Total Traditional Banking 3,021 6,663 2,840 12,524 3,575,307 3,587,831 Warehouse lines of credit — — — — 725,337 725,337 Total Core Banking 3,021 6,663 2,840 12,524 4,300,644 4,313,168 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans 38 24 13 75 636 711 Republic Credit Solutions 5,322 1,252 153 6,727 90,063 96,790 Total Republic Processing Group 5,360 1,276 166 6,802 90,699 97,501 Total $ 8,381 $ 7,939 $ 3,006 $ 19,326 $ 4,391,343 $ 4,410,669 Delinquency ratio*** 0.19 % 0.18 % 0.07 % 0.44 % * All loans past due 90-days-or-more, excluding small balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. 30 - 59 60 - 89 90 or More December 31, 2018 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner occupied $ 1,137 $ 748 $ 3,640 $ 5,525 $ 901,480 $ 907,005 Owner occupied - correspondent — — — — 94,827 94,827 Nonowner occupied 349 — 659 1,008 241,838 242,846 Commercial real estate 511 — 588 1,099 1,247,841 1,248,940 Construction & land development — — — — 175,178 175,178 Commercial & industrial — — 25 25 430,330 430,355 Lease financing receivables — — — — 15,031 15,031 Home equity 558 — 226 784 331,764 332,548 Consumer: Credit cards 82 46 1 129 18,966 19,095 Overdrafts 223 5 2 230 872 1,102 Automobile loans — 28 — 28 63,447 63,475 Other consumer 27 7 13 47 46,595 46,642 Total Traditional Banking 2,887 834 5,154 8,875 3,568,169 3,577,044 Warehouse lines of credit — — — — 468,695 468,695 Total Core Banking 2,887 834 5,154 8,875 4,036,864 4,045,739 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — Other TRS loans 2 4 4 10 13,734 13,744 Republic Credit Solutions 5,734 1,215 128 7,077 81,667 88,744 Total Republic Processing Group 5,736 1,219 132 7,087 95,401 102,488 Total $ 8,623 $ 2,053 $ 5,286 $ 15,962 $ 4,132,265 $ 4,148,227 Delinquency ratio*** 0.21 % 0.05 % 0.13 % 0.38 % * All loans past due 90-days-or-more, excluding smaller balance consumer loans, were on nonaccrual status. ** Delinquent status may be determined by either the number of days past due or number of payments past due. *** Represents total loans 30-days-or-more past due by aging category divided by total loans. |
Schedule of Bank's impaired loans | (in thousands) June 30, 2019 December 31, 2018 Loans with no allocated Allowance $ 20,733 $ 19,555 Loans with allocated Allowance 21,947 21,880 Total recorded investment in impaired loans $ 42,680 $ 41,435 Amount of the allocated Allowance $ 3,768 $ 3,764 |
Schedule of balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method | Allowance for Loan and Lease Losses Loans Individually PCI with Individually PCI with PCI without June 30, 2019 Evaluated Collectively Post-Acquisition Total Evaluated Collectively Post-Acquisition Post-Acquisition Total Allowance to (dollars in thousands) Excluding PCI Evaluated Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Total Loans Traditional Banking: Residential real estate: Owner occupied $ 1,342 $ 3,392 $ 282 $ 5,016 $ 23,043 $ 883,240 $ 1,543 $ — $ 907,826 0.55 % Owner occupied - correspondent — 197 — 197 848 78,095 — — 78,943 0.25 Nonowner occupied 3 1,772 — 1,775 1,477 257,689 — — 259,166 0.68 Commercial real estate 230 10,328 8 10,566 6,523 1,246,473 872 — 1,253,868 0.84 Construction & land development — 2,910 — 2,910 60 190,924 — — 190,984 1.52 Commercial & industrial 1,204 3,017 — 4,221 5,464 441,807 — 24 447,295 0.94 Lease financing receivables — 181 — 181 — 17,271 — — 17,271 1.05 Home equity 241 2,883 — 3,124 2,339 294,484 11 — 296,834 1.05 Consumer: Credit cards — 1,028 — 1,028 — 17,429 — — 17,429 5.90 Overdrafts — 894 — 894 — 894 — — 894 100.00 Automobile loans 80 628 — 708 80 63,473 — — 63,553 1.11 Other consumer 364 185 — 549 386 53,379 3 — 53,768 1.02 Total Traditional Banking 3,464 27,415 290 31,169 40,220 3,545,158 2,429 24 3,587,831 0.87 Warehouse lines of credit — 1,814 — 1,814 — 725,337 — — 725,337 0.25 Total Core Banking 3,464 29,229 290 32,983 40,220 4,270,495 2,429 24 4,313,168 0.76 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — — — — Other TRS loans — 232 — 232 — 711 — — 711 32.63 Republic Credit Solutions 14 12,754 — 12,768 31 96,759 — — 96,790 13.19 Total Republic Processing Group 14 12,986 — 13,000 31 97,470 — — 97,501 13.33 Total $ 3,478 $ 42,215 $ 290 $ 45,983 $ 40,251 $ 4,367,965 $ 2,429 $ 24 $ 4,410,669 1.04 % Allowance for Loan and Lease Losses Loans Individually PCI with Individually PCI with PCI without December 31, 2018 Evaluated Collectively Post-Acquisition Total Evaluated Collectively Post-Acquisition Post-Acquisition Total Allowance to (dollars in thousands) Excluding PCI Evaluated Impairment Allowance Excluding PCI Evaluated Impairment Impairment Loans Total Loans Traditional Banking: Residential real estate: Owner occupied $ 2,052 $ 3,365 $ 381 $ 5,798 $ 24,860 $ 880,500 $ 1,645 $ — $ 907,005 0.64 % Owner occupied - correspondent — 237 — 237 382 94,445 — — 94,827 0.25 Nonowner occupied 4 1,658 — 1,662 2,406 240,440 — — 242,846 0.68 Commercial real estate 294 9,727 9 10,030 8,104 1,239,915 919 2 1,248,940 0.80 Construction & land development 4 2,551 — 2,555 65 175,113 — — 175,178 1.46 Commercial & industrial 130 2,743 — 2,873 1,020 429,310 — 25 430,355 0.67 Lease financing receivables — 158 — 158 — 15,031 — — 15,031 1.05 Home equity 286 3,117 74 3,477 1,361 331,101 86 — 332,548 1.05 Consumer: Credit cards — 1,140 — 1,140 — 19,095 — — 19,095 5.97 Overdrafts — 1,102 — 1,102 — 1,102 — — 1,102 100.00 Automobile loans 91 633 — 724 91 63,384 — — 63,475 1.14 Other consumer 421 170 — 591 449 46,190 3 — 46,642 1.27 Total Traditional Banking 3,282 26,601 464 30,347 38,738 3,535,626 2,653 27 3,577,044 0.85 Warehouse lines of credit — 1,172 — 1,172 — 468,695 — — 468,695 0.25 Total Core Banking 3,282 27,773 464 31,519 38,738 4,004,321 2,653 27 4,045,739 0.78 Republic Processing Group: Tax Refund Solutions: Easy Advances — — — — — — — — — — Other TRS loans — 107 — 107 — 13,744 — — 13,744 0.78 Republic Credit Solutions 18 13,031 — 13,049 44 88,700 — — 88,744 14.70 Total Republic Processing Group 18 13,138 — 13,156 44 102,444 — — 102,488 12.84 Total $ 3,300 $ 40,911 $ 464 $ 44,675 $ 38,782 $ 4,106,765 $ 2,653 $ 27 $ 4,148,227 1.08 % |
Schedule of loans individually evaluated for impairment by class of loans | As of Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 June 30, 2019 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allocated Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allowance Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no allocated Allowance: Residential real estate: Owner occupied $ 13,213 $ 12,452 $ — $ 10,913 $ 70 $ — $ 10,843 $ 139 $ — Owner occupied - correspondent 848 848 — 855 — — 697 — — Nonowner occupied 1,113 1,046 — 1,424 17 — 1,733 34 — Commercial real estate 4,866 3,792 — 3,573 23 — 3,917 47 — Construction & land development 60 60 — 30 1 — 20 1 — Commercial & industrial 720 612 — 622 — — 616 — — Lease financing receivables — — — — — — — — — Home equity 1,941 1,898 — 1,591 12 — 1,352 23 — Consumer 25 25 — 27 1 — 28 1 — Impaired loans with allocated Allowance: Residential real estate: Owner occupied 12,161 12,134 1,624 14,464 121 — 14,910 240 — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 622 431 3 216 41 — 162 — — Commercial real estate 3,603 3,603 238 3,951 — — 4,106 83 — Construction & land development — — — 32 — — 43 — — Commercial & industrial 4,852 4,852 1,204 2,662 7 — 1,913 15 — Lease financing receivables — — — — — — — — — Home equity 452 452 241 480 2 — 510 4 — Consumer 477 475 458 505 4 — 520 10 — Total impaired loans $ 44,953 $ 42,680 $ 3,768 $ 41,345 $ 299 $ — $ 41,370 $ 597 $ — As of Three Months Ended Six Months Ended December 31, 2018 June 30, 2018 June 30, 2018 Cash Basis Cash Basis Unpaid Average Interest Interest Average Interest Interest Principal Recorded Allocated Recorded Income Income Recorded Income Income (in thousands) Balance Investment Allowance Investment Recognized Recognized Investment Recognized Recognized Impaired loans with no allocated Allowance: Residential real estate: Owner occupied $ 11,676 $ 10,703 $ — $ 11,069 $ 67 $ — $ 10,976 $ 133 $ — Owner occupied - correspondent 382 382 — 386 — — 257 — — Nonowner occupied 2,729 2,350 — 2,699 22 — 2,367 45 — Commercial real estate 5,688 4,607 — 5,119 24 — 4,889 45 — Construction & land development — — — 238 — — 356 — — Commercial & industrial 712 604 — 694 — — 469 — — Lease financing receivables — — — — — — — — — Home equity 919 876 — 704 4 — 796 7 — Consumer 33 33 — 62 1 — 49 3 — Impaired loans with allocated Allowance: Residential real estate: Owner occupied 16,215 15,802 2,433 18,481 153 — 18,538 299 — Owner occupied - correspondent — — — — — — — — — Nonowner occupied 78 56 4 195 — — 249 — — Commercial real estate 4,416 4,416 303 6,368 65 — 6,287 129 — Construction & land development 65 65 4 132 1 — 135 2 — Commercial & industrial 416 416 130 98 1 — 161 1 — Lease financing receivables — — — — — — — — — Home equity 572 571 360 992 10 — 909 19 — Consumer 554 554 530 668 6 — 700 14 — Total impaired loans $ 44,455 $ 41,435 $ 3,764 $ 47,905 $ 354 $ — $ 47,138 $ 697 $ — |
Schedule of TDRs differentiated by loan type and accrual status | Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 54 $ 4,777 152 $ 16,401 206 $ 21,178 Commercial real estate 3 1,714 8 4,247 11 5,961 Construction & land development — — 1 60 1 60 Commercial & industrial 5 4,913 4 417 9 5,330 Consumer — — 210 382 210 382 Total troubled debt restructurings 62 $ 11,404 375 $ 21,507 437 $ 32,911 Troubled Debt Troubled Debt Total Restructurings on Restructurings on Troubled Debt Nonaccrual Status Accrual Status Restructurings Number of Recorded Number of Recorded Number of Recorded December 31, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 60 $ 6,378 156 $ 17,232 216 $ 23,610 Commercial real estate 3 1,203 14 6,571 17 7,774 Construction & land development — — 1 65 1 65 Commercial & industrial 2 571 3 408 5 979 Consumer — — 256 435 256 435 Total troubled debt restructurings 65 $ 8,152 430 $ 24,711 495 $ 32,863 |
Schedule of categories of TDR loan modifications outstanding and respective performance under modified terms | Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — 1 $ 945 1 $ 945 Rate reduction 138 15,535 5 589 143 16,124 Principal deferral 9 873 3 610 12 1,483 Legal modification 43 2,311 7 315 50 2,626 Total residential TDRs 190 18,719 16 2,459 206 21,178 Commercial related and construction/land development loans: Interest only payments 2 719 — — 2 719 Rate reduction 4 1,352 — — 4 1,352 Principal deferral 12 4,257 1 597 13 4,854 Legal modification — — 2 4,426 2 4,426 Total commercial TDRs 18 6,328 3 5,023 21 11,351 Consumer loans: Rate reduction — — — — — — Principal deferral 210 382 — — 210 382 Total consumer TDRs 210 382 — — 210 382 Total troubled debt restructurings 418 $ 25,429 19 $ 7,482 437 $ 32,911 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded December 31, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments — $ — 1 $ 970 1 $ 970 Rate reduction 145 16,892 12 978 157 17,870 Principal deferral 11 1,171 4 1,871 15 3,042 Legal modification 35 1,500 8 228 43 1,728 Total residential TDRs 191 19,563 25 4,047 216 23,610 Commercial related and construction/land development loans: Interest only payments 2 752 — — 2 752 Rate reduction 8 2,962 — — 8 2,962 Principal deferral 12 5,076 — — 12 5,076 Legal modification — — 1 28 1 28 Total commercial TDRs 22 8,790 1 28 23 8,818 Consumer loans: Rate reduction 1 16 — — 1 16 Principal deferral 255 419 — — 255 419 Legal modification — — — — — — Total consumer TDRs 256 435 — — 256 435 Total troubled debt restructurings 469 $ 28,788 26 $ 4,075 495 $ 32,863 |
Summary of categories of TDR loan modifications that occurred during the period | Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral — $ — — $ — — $ — Legal modification 7 804 2 161 9 965 Total residential TDRs 7 804 2 161 9 965 Commercial related and construction/land development loans: Legal modification — — 2 4,426 2 4,426 Total commercial TDRs — — 2 4,426 2 4,426 Total troubled debt restructurings 7 $ 804 4 $ 4,587 11 $ 5,391 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 1 $ 389 — $ — 1 $ 389 Principal deferral 2 1,501 1 169 3 1,670 Legal modification 9 273 1 46 10 319 Total residential TDRs 12 2,163 2 215 14 2,378 Commercial related and construction/land development loans: Principal deferral 3 859 1 75 4 934 Total commercial TDRs 3 859 1 75 4 934 Consumer loans: Legal modification — — 1 43 1 43 Total consumer TDRs — — 1 43 1 43 Total troubled debt restructurings 15 $ 3,022 4 $ 333 19 $ 3,355 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2019 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Principal deferral 1 $ 6 — $ — 1 $ 6 Legal modification 11 901 3 211 14 1,112 Total residential TDRs 12 907 3 211 15 1,118 Commercial related and construction/land development loans: Interest only payments 1 566 — — 1 566 Principal deferral 2 26 — — 2 26 Legal modification — — 2 4,426 2 4,426 Total commercial TDRs 3 592 2 4,426 5 5,018 Total troubled debt restructurings 15 $ 1,499 5 $ 4,637 20 $ 6,136 Troubled Debt Troubled Debt Restructurings Restructurings Total Performing to Not Performing to Troubled Debt Modified Terms Modified Terms Restructurings Number of Recorded Number of Recorded Number of Recorded June 30, 2018 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Interest only payments 1 $ 1,204 — $ — 1 $ 1,204 Rate reduction 2 474 — — 2 $ 474 Principal deferral 3 2,002 1 170 4 2,172 Legal modification 9 273 1 46 10 319 Total residential TDRs 15 3,953 2 216 17 4,169 Commercial related and construction/land development loans: Principal deferral 4 870 1 75 5 945 Total commercial TDRs 4 870 1 75 5 945 Consumer loans: Principal deferral 1 58 — — 1 58 Legal modification — — 1 43 1 43 Total consumer TDRs 1 58 1 43 2 101 Total troubled debt restructurings 20 $ 4,881 4 $ 334 24 $ 5,215 The tables above are inclusive of loans that were TDRs at the end of previous periods and were re-modified, e.g., a maturity date extension during the current period. |
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Recorded Number of Recorded Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Loans Investment Loans Investment Residential real estate: Owner occupied 3 $ 211 2 $ 215 3 $ 211 2 $ 215 Commercial real estate — — — — 1 566 — — Commercial & industrial 2 4,426 1 75 2 4,426 1 75 Home equity — — — — 1 6 — — Consumer — — 1 43 — — 1 43 Total 5 $ 4,637 4 $ 333 7 $ 5,209 4 $ 333 |
Schedule of carrying amount of foreclosed properties held | (in thousands) June 30, 2019 December 31, 2018 Residential real estate $ 1,095 $ 160 Total other real estate owned $ 1,095 $ 160 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | (in thousands) June 30, 2019 December 31, 2018 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure* $ 10,081 $ 3,293 |
Schedule of Easy Advances | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Easy Advances originated $ — $ — $ 388,970 $ 430,210 Net charge to the Provision for Easy Advances 39 (881) 13,420 12,396 Provision to total Easy Advances originated NA NA 3.45 % 2.88 % Easy Advances net charge-offs* $ 13,420 $ 8,691 $ 13,420 $ 12,396 Easy Advances net charge-offs to total Easy Advances originated* NA NA 3.45 % 2.88 % * The Company amended its charge-off policy for EAs during the second half of 2018 to charge-off EAs at 111 days past due instead of 60 days past due. |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
DEPOSITS | |
Ending deposit balances | (in thousands) June 30, 2019 December 31, 2018 Core Bank: Demand $ 906,179 $ 937,402 Money market accounts 727,718 717,954 Savings 177,421 187,868 Individual retirement accounts(1) 50,970 53,524 Time deposits, $250 and over(1) 93,713 84,104 Other certificates of deposit(1) 246,392 239,324 Reciprocal money market and time deposits(1)(2) 192,792 217,153 Brokered deposits(1) 159,615 9,394 Total Core Bank interest-bearing deposits 2,554,800 2,446,723 Total Core Bank noninterest-bearing deposits 937,487 971,422 Total Core Bank deposits 3,492,287 3,418,145 Republic Processing Group: Money market accounts 2,327 5,453 Total RPG interest-bearing deposits 2,327 5,453 Brokered prepaid card deposits 10,854 4,350 Other noninterest-bearing deposits 55,452 28,197 Total RPG noninterest-bearing deposits 66,306 32,547 Total RPG deposits 68,633 38,000 Deposits held for assumption in connection with sale of banking centers(3) 152,954 — Total deposits $ 3,713,874 $ 3,456,145 (1) Includes time deposits. (2) Prior to June 2018, reciprocal deposits were classified as “brokered deposits.” The Economic Growth, Regulatory Relief, and Consumer Protection Act, enacted in May 2018, provides that most reciprocal deposits are no longer classified as brokered deposits if the Bank meets certain regulatory criteria. (3) See Footnote 18 “Subsequent Event” in this section of the filing. |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |
Schedule of securities sold under agreements to repurchase | (dollars in thousands) June 30, 2019 December 31, 2018 Outstanding balance at end of period $ 226,002 $ 182,990 Weighted average interest rate at end of period 0.50 % 0.83 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 109,716 $ 110,854 Mortgage backed securities - residential 83,893 84,657 Collateralized mortgage obligations 59,049 10,136 Total securities pledged $ 252,658 $ 205,647 Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2018 2019 2018 Average outstanding balance during the period $ 220,189 $ 178,063 $ 225,864 $ 217,532 Average interest rate during the period 0.60 % 0.50 % % 0.40 % Maximum outstanding at any month end during the period $ 226,002 $ 175,291 $ 226,002 $ 215,281 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2019 Operating lease expense: Related Party: Variable lease expense $ 1,156 $ 2,314 Fixed lease expense 10 18 Third Party: Variable lease expense 211 435 Fixed lease expense 384 745 Short-term lease expense 12 26 Total operating lease expense $ 1,773 $ 3,538 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,794 $ 3,577 Short-term lease payments not included in the measurement of lease liabilities 12 26 |
Schedule of weighted average remaining term and weighted average discount rate for operating leases | June 30, 2019 Weighted average remaining term in years 8.30 Weighted average discount rate 3.48 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third Party Total Remainder of 2019 $ 2,314 $ 1,274 $ 3,588 2020 4,585 2,513 7,098 2021 4,171 2,294 6,465 2022 3,310 1,888 5,198 2023 3,310 1,363 4,673 Thereafter 15,910 2,572 18,482 Total undiscounted cash flows $ 33,600 $ 11,904 $ 45,504 Discount applied to cash flows (5,029) (1,623) (6,652) Total discounted cash flows reported as operating lease liabilities $ 28,571 $ 10,281 $ 38,852 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | (dollars in thousands) June 30, 2019 December 31, 2018 Overnight advances $ 670,000 $ 510,000 Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% 10,000 10,000 Fixed interest rate advances 235,000 290,000 Total FHLB advances $ 915,000 $ 810,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate Remainder of 2019 (Overnight) $ 670,000 2.46 % Remainder of 2019 (Term) 55,000 1.97 2020 120,000 1.81 2021 30,000 1.93 2022 20,000 2.12 2023 20,000 2.56 Thereafter — — Total $ 915,000 2.32 % |
Information Regarding Overnight FHLB Advances | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2018 2019 2018 Average outstanding balance during the period $ 448,077 $ 226,264 $ 331,768 $ 185,801 Average interest rate during the period 2.50 % 1.88 % 2.49 % 1.70 % Maximum outstanding at any month end during the period $ 785,000 $ 500,000 $ 785,000 $ 560,000 |
Real Estate Loans Pledged | (in thousands) June 30, 2019 December 31, 2018 First lien, single family residential real estate $ 1,161,088 $ 1,129,588 Home equity lines of credit 297,862 311,419 |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Bank Commitment Exclusive of Mortgage Bank Loan Commitments | (in thousands) June 30, 2019 December 31, 2018 Unused warehouse lines of credit $ 393,663 $ 591,305 Unused home equity lines of credit 383,772 377,277 Unused loan commitments - other 758,439 720,645 Standby letters of credit 11,766 10,642 FHLB letter of credit 10,000 10,000 Total commitments $ 1,557,640 $ 1,709,869 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at June 30, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 139,335 $ — $ 139,335 Private label mortgage backed security — — 3,615 3,615 Mortgage backed securities - residential — 154,192 — 154,192 Collateralized mortgage obligations — 69,379 — 69,379 Corporate bonds — 9,835 — 9,835 Trust preferred security — — 4,000 4,000 Total available-for-sale debt securities $ — $ 372,741 $ 7,615 $ 380,356 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 787 $ — $ 787 Community Reinvestment Act mutual fund 2,467 — — 2,467 Total equity securities with readily determinable fair value $ 2,467 $ 787 $ — $ 3,254 Mortgage loans held for sale $ — $ 13,883 $ — $ 13,883 Consumer loans held for investment — — 1,369 1,369 Rate lock loan commitments — 1,222 — 1,222 Interest rate swap agreements — 4,645 — 4,645 Financial liabilities: Mandatory forward contracts $ — $ 467 $ — $ 467 Interest rate swap agreements — 4,778 — 4,778 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Financial assets: Available-for-sale debt securities: U.S. Treasury securities and U.S. Government agencies $ — $ 216,873 $ — $ 216,873 Private label mortgage backed security — — 3,712 3,712 Mortgage backed securities - residential — 169,209 — 169,209 Collateralized mortgage obligations — 72,811 — 72,811 Corporate bonds — 9,058 — 9,058 Trust preferred security — — 4,075 4,075 Total available-for-sale debt securities $ — $ 467,951 $ 7,787 $ 475,738 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 410 $ — $ 410 Community Reinvestment Act mutual fund 2,396 — — 2,396 Total equity securities with readily determinable fair value $ 2,396 $ 410 $ — $ 2,806 Mortgage loans held for sale $ — $ 8,971 $ — $ 8,971 Consumer loans held for investment — — 1,922 1,922 Rate lock loan commitments — 356 — 356 Interest rate swap agreements — 1,264 — 1,264 Financial liabilities: Mandatory forward contracts $ — $ 262 $ — $ 262 Interest rate swap agreements — 1,149 — 1,149 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at June 30, 2019 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Impaired loans: Residential real estate: Owner occupied $ — $ — $ 3,777 $ 3,777 Nonowner occupied — — 511 511 Commercial real estate — — 1,117 1,117 Commercial & industrial — — 512 512 Home equity — — 347 347 Total impaired loans* $ — $ — $ 6,264 $ 6,264 Premises $ — $ — $ 1,552 $ 1,552 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Fair (in thousands) (Level 1) (Level 2) (Level 3) Value Consumer loans held for sale $ — $ — $ 1,249 $ 1,249 Impaired loans: Residential real estate: Owner occupied $ — $ — $ 4,708 $ 4,708 Nonowner occupied — — 1,007 1,007 Commercial real estate — — 1,255 1,255 Commercial & industrial — — 609 609 Home equity — — 356 356 Total impaired loans* $ — $ — $ 7,935 $ 7,935 Premises $ — $ — $ 1,694 $ 1,694 * The difference between the carrying value and the fair value of impaired loans measured at fair value is reconciled in a subsequent table of this Footnote. |
Impaired collateral dependent loans classified with Level 3 fair value hierarchy | (in thousands) June 30, 2019 December 31, 2018 Carrying amount of loans measured at fair value $ 5,559 $ 7,380 Estimated selling costs considered in carrying amount 724 913 Valuation allowance (19) (358) Total fair value $ 6,264 $ 7,935 |
Provisions for loss on collateral dependent impaired loans | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Provisions on collateral-dependent, impaired loans $ 5 $ 28 $ 27 $ 457 |
Schedule of Impairment charges on premises and equipment | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Impairment charges on premises $ 66 $ 126 $ 132 $ 230 |
Carrying amount and estimated exit-price fair values of financial instruments | Fair Value Measurements at June 30, 2019: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 473,779 $ 473,779 $ — $ — $ 473,779 Available-for-sale debt securities 380,356 — 372,741 7,615 380,356 Held-to-maturity debt securities 63,902 — 64,433 — 64,433 Equity securities with readily determinable fair values 3,254 2,467 787 — 3,254 Mortgage loans held for sale, at fair value 13,883 — 13,883 — 13,883 Reverse mortgage loans held for sale, at the lower of cost or fair value 12,457 — 12,457 — 12,457 Consumer loans held for sale, at the lower of cost or fair value 37,609 — 37,609 — 37,609 Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value 111,745 — 111,745 — 111,745 Loans, net 4,364,686 — — 4,397,565 4,397,565 Federal Home Loan Bank stock 32,242 — — — NA Accrued interest receivable 14,716 — 14,716 — 14,716 Rate lock loan commitments 1,222 — 1,222 — 1,222 Interest rate swap agreements 4,645 — 4,645 — 4,645 Liabilities: Noninterest-bearing deposits $ 1,003,793 — $ 1,003,793 — $ 1,003,793 Transaction deposits 1,959,252 — 1,959,252 — 1,959,252 Time deposits 597,875 — 600,352 — 600,352 Deposits held for assumption in connection with sale of banking centers 152,954 — 152,954 — 152,954 Securities sold under agreements to repurchase and other short-term borrowings 226,002 — 226,002 — 226,002 Federal Home Loan Bank advances 915,000 — 913,453 — 913,453 Subordinated note 41,240 — 33,181 — 33,181 Accrued interest payable 1,575 — 1,575 — 1,575 Mandatory forward contracts 467 — 467 — 467 Interest rate swap agreements 4,778 — 4,778 — 4,778 Fair Value Measurements at December 31, 2018: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 351,474 $ 351,474 $ — $ — $ 351,474 Available-for-sale debt securities 475,738 — 467,951 7,787 475,738 Held-to-maturity debt securities 65,227 — 64,858 — 64,858 Equity securities with readily determinable fair values 2,806 2,396 410 — 2,806 Mortgage loans held for sale, at fair value 8,971 — 8,971 — 8,971 Consumer loans held for sale, at the lower of cost or fair value 12,838 — 12,838 — 12,838 Loans, net 4,103,552 — — 4,062,457 4,062,457 Federal Home Loan Bank stock 32,067 — — — NA Accrued interest receivable 13,942 — 13,942 — 13,942 Rate lock loan commitments 356 — 356 — 356 Interest rate swap agreements 1,264 — 1,264 — 1,264 Liabilities: Noninterest-bearing deposits $ 1,003,969 — $ 1,003,969 — $ 1,003,969 Transaction deposits 2,035,701 — 2,035,701 — 2,035,701 Time deposits 416,475 — 412,477 — 412,477 Securities sold under agreements to repurchase and other short-term borrowings 182,990 — 182,990 — 182,990 Federal Home Loan Bank advances 810,000 — 804,251 — 804,251 Subordinated note 41,240 — 33,724 — 33,724 Accrued interest payable 1,084 — 1,084 — 1,084 Mandatory forward contracts 262 — 262 — 262 Interest rate swap agreements 1,149 — 1,149 — 1,149 |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted June 30, 2019 (dollars in thousands) Value Technique Inputs Average) Impaired loans - residential real estate owner occupied $ 3,777 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 62% (11%) Impaired loans - residential real estate nonowner occupied $ 511 Sales comparison approach Adjustments determined for differences between comparable sales 5% - 12% (12%) Impaired loans - commercial real estate $ 1,117 Sales comparison approach Adjustments determined for differences between comparable sales 22% - 25% (22%) Impaired loans - commercial & industrial $ 512 Sales comparison approach Adjustments determined for differences between comparable sales 3% (3%) Impaired loans - home equity $ 347 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 2% (2%) Premises $ 1,552 Sales comparison approach Adjustments determined for differences between comparable sales 33% - 75% (45%) Range Fair Valuation Unobservable (Weighted December 31, 2018 (dollars in thousands) Value Technique Inputs Average) Consumer loans held for sale $ 1,249 Sales comparison approach Adjustments determined for differences between comparable sales 6% (6%) Impaired loans - residential real estate owner occupied $ 4,708 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 67% (9%) Impaired loans - residential real estate nonowner occupied $ 1,007 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 27% (15%) Impaired loans - commercial real estate $ 123 Sales comparison approach Adjustments determined for differences between comparable sales 21% (21%) Impaired loans - commercial real estate $ 1,132 Income approach Adjustments for differences between net operating income expectations 17% (17%) Impaired loans - commercial & industrial $ 609 Sales comparison approach Adjustments determined for differences between comparable sales 3% (3%) Impaired loans - home equity $ 356 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 22% (8%) Premises $ 1,694 Sales comparison approach Adjustments determined for differences between comparable sales 27% - 72% (40%) |
Private label mortgage backed security | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 3,660 $ 4,120 $ 3,712 $ 4,449 Total gains or losses included in earnings: Net change in unrealized gain (2) (15) (34) (17) Recovery of actual losses previously recorded 38 37 75 75 Principal paydowns (81) (216) (138) (581) Balance, end of period $ 3,615 $ 3,926 $ 3,615 $ 3,926 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation June 30, 2019 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,615 Discounted cash flow (1) Constant prepayment rate 3.9% - 4.5% (2) Probability of default 1.8% - 6.1% (3) Loss severity 50% - 75% Fair Valuation December 31, 2018 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage backed security $ 3,712 Discounted cash flow (1) Constant prepayment rate 6.5% - 8.9% (2) Probability of default 1.8% - 4.7% (3) Loss severity 50% - 75% |
Trust preferred security | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 4,100 $ 3,900 $ 4,075 $ 3,600 Total gains or losses included in earnings: Discount accretion 11 10 21 20 Net change in unrealized gain (111) 240 (96) 530 Balance, end of period $ 4,000 $ 4,150 $ 4,000 $ 4,150 |
Mortgage loans held for sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) June 30, 2019 December 31, 2018 Aggregate fair value $ 13,883 $ 8,971 Contractual balance 13,542 8,676 Unrealized gain 341 295 |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Interest income $ 170 $ 103 $ 272 $ 175 Change in fair value 128 152 46 143 Total included in earnings $ 298 $ 255 $ 318 $ 318 |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | (in thousands) June 30, 2019 December 31, 2018 Aggregate fair value $ 1,369 $ 1,922 Contractual balance 1,580 2,170 Unrealized (loss) gain (211) (248) |
Schedule of gains and losses from changes in fair value included in earnings | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Interest income $ 90 $ 152 $ 201 $ 328 Change in fair value 19 (414) 37 (427) Total included in earnings $ 109 $ (262) $ 238 $ (99) |
Consumer loans | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation June 30, 2019 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for investment $ 1,369 Discounted Cash Flows (1) Constant prepayment rate 15.0% (2) Probability of default 50.0 (3) Loss severity 25.0 Fair Valuation December 31, 2018 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for investment $ 1,922 Discounted Cash Flows (1) Constant prepayment rate 15.0% (2) Probability of default 45.0% (3) Loss severity 20.0% |
MORTGAGE BANKING ACTIVITIES (Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 11,313 $ 4,496 $ 8,971 $ 5,761 Origination of mortgage loans held for sale 81,982 54,714 122,696 84,124 Proceeds from the sale of mortgage loans held for sale (81,630) (47,642) (121,262) (79,094) Net gain on sale of mortgage loans held for sale 2,218 1,085 3,478 1,862 Balance, end of period $ 13,883 $ 12,653 $ 13,883 $ 12,653 |
Components of Mortgage Banking Income | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Net gain realized on sale of mortgage loans held for sale $ 1,896 $ 1,101 $ 2,771 $ 1,698 Net change in fair value recognized on loans held for sale 128 152 46 143 Net change in fair value recognized on rate lock loan commitments 379 (11) 866 122 Net change in fair value recognized on forward contracts (185) (157) (205) (101) Net gain recognized 2,218 1,085 3,478 1,862 Loan servicing income 609 600 1,210 1,205 Amortization of mortgage servicing rights (411) (369) (733) (731) Net servicing income recognized 198 231 477 474 Total Mortgage Banking income $ 2,416 $ 1,316 $ 3,955 $ 2,336 |
Activity for capitalized mortgage servicing rights | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Balance, beginning of period $ 4,935 $ 4,925 $ 4,919 $ 5,044 Additions 634 359 972 602 Amortized to expense (411) (369) (733) (731) Balance, end of period $ 5,158 $ 4,915 $ 5,158 $ 4,915 |
Other information relating to mortgage servicing rights | (in thousands) June 30, 2019 December 31, 2018 Fair value of mortgage servicing rights portfolio $ 7,708 $ 9,357 Monthly weighted average prepayment rate of unpaid principal balance* 232 % 160 % Discount rate 10.00 % 10.00 % Weighted average default (foreclosure) rate 0.07 % 0.14 % Weighted average life in years 5.69 * Rates are applied to individual tranches with similar characteristics. |
Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives | June 30, 2019 December 31, 2018 Notional Notional (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 13,542 $ 13,883 $ 8,676 $ 8,971 Included in other assets: Rate lock loan commitments $ 52,789 $ 1,222 $ 14,788 $ 356 Included in other liabilities: Mandatory forward contracts $ 55,442 $ 467 $ 20,063 $ 262 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
INTEREST RATE SWAPS | |
Summary of swaps designated as cash flow hedges | June 30, 2019 December 31, 2018 Unrealized Unrealized Notional Pay Receive Assets / Gain (Loss) Assets / Gain (Loss) (dollars in thousands) Amount Rate Rate Term (Liabilities) AOCI (Liabilities) in AOCI Interest rate swap on money market deposits $ 10,000 2.17 % 1M LIBOR 12/2013 - 12/2020 $ (72) $ (56) $ 58 $ 45 Interest rate swap on FHLB advance 10,000 2.33 % 3M LIBOR 12/2013 - 12/2020 (61) (48) 57 45 Total $ 20,000 $ (133) $ (104) $ 115 $ 90 |
Schedule of interest expense recorded on swap transactions in the consolidated statements of income | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Interest rate swap on money market deposits $ (8) $ 3 $ (16) $ 20 Interest rate swap on FHLB advance (5) 6 (16) 15 Total interest (benefit) expense on swap transactions $ (13) $ 9 $ (32) $ 35 |
Summary of net gains recorded in AOCI and the consolidated statements of income relating to the swaps | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 (Gains) losses recognized in OCI on derivative (effective portion) $ (146) $ 77 $ (215) $ 276 Gains (losses) reclassified from OCI on derivative (effective portion) 13 (9) 32 (35) Gains (losses) recognized in income on derivative (ineffective portion) — — — — |
Summary of interest rate swaps related to clients | June 30, 2019 December 31, 2018 Notional Notional (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 81,453 $ 4,645 $ 26,398 $ 1,264 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 1,174 (6) 54,718 (908) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 82,627 $ 4,639 $ 81,116 $ 356 Offsetting interest rate swaps with institutional swap dealer Pay fixed/receive variable 82,627 (4,639) 81,116 (356) Total $ 165,254 $ — $ 162,232 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
EARNINGS PER SHARE | |
Earnings Per Share and Diluted Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2019 2018 2019 2018 Net income $ 18,007 $ 15,666 $ 47,523 $ 43,135 Dividends declared on Common Stock: Class A Shares (4,932) (4,518) (9,865) (9,035) Class B Shares (530) (487) (1,061) (981) Undistributed net income for basic earnings per share 12,545 10,661 36,597 33,119 Weighted average potential dividends on Class A shares upon exercise of dilutive options (32) (35) (68) (64) Undistributed net income for diluted earnings per share $ 12,513 $ 10,626 $ 36,529 $ 33,055 Weighted average shares outstanding: Class A Shares 18,804 18,935 18,785 18,704 Class B Shares 2,212 2,252 2,212 2,235 Effect of dilutive securities on Class A Shares outstanding 122 144 128 133 Weighted average shares outstanding including dilutive securities 21,138 21,331 21,125 21,072 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.53 $ 0.48 Undistributed earnings per share* 0.60 0.51 1.76 1.60 Total basic earnings per share - Class A Common Stock $ 0.86 $ 0.75 $ 2.29 $ 2.08 Class B Common Stock Per share dividends distributed $ 0.24 $ 0.22 $ 0.48 $ 0.44 Undistributed earnings per share* 0.55 0.46 1.60 1.45 Total basic earnings per share - Class B Common Stock $ 0.79 $ 0.68 $ 2.08 $ 1.89 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 0.26 $ 0.24 $ 0.53 $ 0.48 Undistributed earnings per share* 0.60 0.50 1.75 1.58 Total diluted earnings per share - Class A Common Stock $ 0.86 $ 0.74 $ 2.28 $ 2.06 Class B Common Stock: Per share dividends distributed $ 0.24 $ 0.22 $ 0.48 $ 0.44 Undistributed earnings per share* 0.54 0.46 1.59 1.44 Total diluted earnings per share - Class B Common Stock $ 0.78 $ 0.68 $ 2.07 $ 1.88 *To arrive at undistributed earnings per share, undistributed net income is first pro rated between Class A and Class B Common Shares, with Class A Common Shares receiving a 10% premium. The resulting pro-rated, undistributed net income for each class is then divided by the weighted average shares for each class. |
Antidilutive Stock Options | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Antidilutive stock options 160,000 3,000 165,000 3,000 Average antidilutive stock options 156,000 400 159,000 200 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2019 2018 2019 2018 Available-for-Sale Debt Securities: Change in unrealized (loss) gain on AFS debt securities $ 2,014 $ (546) $ 5,673 $ (2,663) Adjustment for adoption of ASU 2016-01 — — — (428) Change in unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings (1) (15) (34) (17) Net unrealized (losses) gains 2,013 (561) 5,639 (3,108) Tax effect (422) 118 (1,186) 652 Net of tax 1,591 (443) 4,453 (2,456) Cash Flow Hedges: Change in fair value of derivatives used for cash flow hedges (146) 77 (215) 276 Reclassification amount for net derivative losses realized in income (13) 9 (32) 35 Net unrealized gains (159) 86 (247) 311 Tax effect 33 (19) 53 (64) Net of tax (126) 67 (194) 247 Total other comprehensive (loss) income components, net of tax $ 1,465 $ (376) $ 4,259 $ (2,209) |
Summary of amounts reclassified out of each component of AOCI | Amounts Reclassified from AOCI Affected Line Items Three Months Ended Six Months Ended in the Consolidated June 30, June 30, (in thousands) Statements of Income 2019 2018 2019 2018 Cash Flow Hedges: Interest rate swap on money market deposits Interest benefit (expense) on deposits $ 8 $ (3) $ 16 $ (20) Interest rate swap on FHLB advance Interest benefit (expense) on FHLB advances 5 (6) 16 (15) Total derivative losses on cash flow hedges Total interest benefit (expense) 13 (9) 32 (35) Tax effect Income tax (benefit) expense (3) 2 (7) 7 Net of tax Net income $ 10 $ (7) $ 25 $ (28) |
Summary of the AOCI balances, net of tax | 2019 (in thousands) December 31, 2018 Change June 30, 2019 Unrealized gain (loss) on AFS debt securities $ (2,165) $ 4,480 $ 2,315 Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,078 (27) 1,051 Unrealized gain (loss) on cash flow hedges 90 (194) (104) Total unrealized (loss) gain $ (997) $ 4,259 $ 3,262 2018 (in thousands) December 31, 2017 Change June 30, 2018 Unrealized loss on AFS debt securities $ (604) $ (2,443) $ (3,047) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 1,093 (13) 1,080 Unrealized gain (loss) on cash flow hedges (73) 247 174 Total unrealized gain (loss) $ 416 $ (2,209) $ (1,793) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Noninterest income: Service charges on deposit accounts 3,585 13 — 3,598 — — — 3,598 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income(1) — — 2,416 2,416 — — — 2,416 Interchange fee income 3,168 — — 3,168 89 — 89 3,257 Program fees(1) — — — — 50 987 1,037 1,037 Increase in cash surrender value of BOLI(1) 377 — — 377 — — — 377 Net gains (losses) on OREO 90 — — 90 — — — 90 Other 633 — 56 689 — 32 32 721 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total net revenue $ 49,730 $ 3,970 $ 2,642 $ 56,342 $ 4,478 $ 8,251 $ 12,729 $ 69,071 Net-revenue concentration(2) 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % Three Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 39,348 $ 4,164 $ 103 $ 43,615 $ 328 $ 7,141 $ 7,469 $ 51,084 Noninterest income: Service charges on deposit accounts 3,563 11 — 3,574 — — — 3,574 Net refund transfer fees — — — — 3,473 — 3,473 3,473 Mortgage banking income(1) — — 1,316 1,316 — — — 1,316 Interchange fee income 2,793 — — 2,793 79 19 98 2,891 Program fees(1) — — — — 124 1,199 1,323 1,323 Increase in cash surrender value of BOLI(1) 379 — — 379 — — — 379 Net gains (losses) on OREO 320 — — 320 — — — 320 Other 670 — 49 719 1 300 301 1,020 Total noninterest income 7,725 11 1,365 9,101 3,677 1,518 5,195 14,296 Total net revenue $ 47,073 $ 4,175 $ 1,468 $ 52,716 $ 4,005 $ 8,659 $ 12,664 $ 65,380 Net-revenue concentration(2) 73 % 6 % 2 % 81 % 6 % 13 % 19 % 100 % (1) This revenue is not subject to ASU 2014-09, Revenue from Contracts with Customers. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Noninterest income: Service charges on deposit accounts 6,878 23 — 6,901 — — — 6,901 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income(1) — — 3,955 3,955 — — — 3,955 Interchange fee income 5,794 — — 5,794 220 — 220 6,014 Program fees(1) — — — — 196 1,915 2,111 2,111 Increase in cash surrender value of BOLI(1) 759 — — 759 — — — 759 Net gains (losses) on OREO 220 — — 220 — — — 220 Other 1,098 — 96 1,194 — 659 659 1,853 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total net revenue $ 97,973 $ 6,875 $ 4,323 $ 109,171 $ 42,293 $ 17,323 $ 59,616 $ 168,787 Net-revenue concentration(2) 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % Six Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income(1) $ 77,536 $ 7,755 $ 175 $ 85,466 $ 19,014 $ 14,269 $ 33,283 $ 118,749 Noninterest income: Service charges on deposit accounts 7,110 19 — 7,129 — — — 7,129 Net refund transfer fees — — — — 19,825 — 19,825 19,825 Mortgage banking income(1) — — 2,336 2,336 — — — 2,336 Interchange fee income 5,331 — — 5,331 188 39 227 5,558 Program fees(1) — — — — 183 2,836 3,019 3,019 Increase in cash surrender value of BOLI(1) 750 — — 750 — — — 750 Net gains (losses) on OREO 452 — — 452 — — — 452 Other 1,084 — 87 1,171 1,002 599 1,601 2,772 Total noninterest income 14,727 19 2,423 17,169 21,198 3,474 24,672 41,841 Total net revenue $ 92,263 $ 7,774 $ 2,598 $ 102,635 $ 40,212 $ 17,743 $ 57,955 $ 160,590 Net-revenue concentration(2) 57 % 5 % 2 % 64 % 25 % 11 % 36 % 100 % (1) This revenue is not subject to ASU 2014-09, Revenue from Contracts with Customers. (2) Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
SEGMENT INFORMATION | |
Segment Information | Three Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 41,877 $ 3,957 $ 170 $ 46,004 $ 710 $ 7,232 $ 7,942 $ 53,946 Provision for loan and lease losses 1,427 417 — 1,844 392 2,224 2,616 4,460 Net refund transfer fees — — — — 3,629 — 3,629 3,629 Mortgage banking income — — 2,416 2,416 — — — 2,416 Program fees — — — — 50 987 1,037 1,037 Other noninterest income 7,853 13 56 7,922 89 32 121 8,043 Total noninterest income 7,853 13 2,472 10,338 3,768 1,019 4,787 15,125 Total noninterest expense 37,764 792 1,354 39,910 2,849 669 3,518 43,428 Income before income tax expense 10,539 2,761 1,288 14,588 1,237 5,358 6,595 21,183 Income tax expense 744 621 270 1,635 288 1,253 1,541 3,176 Net income $ 9,795 $ 2,140 $ 1,018 $ 12,953 $ 949 $ 4,105 $ 5,054 $ 18,007 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.75 % 2.49 % NM 3.62 % NM NM NM 4.12 % Net-revenue concentration* 72 % 6 % 4 % 82 % 6 % 12 % 18 % 100 % Three Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 39,348 $ 4,164 $ 103 $ 43,615 $ 328 $ 7,141 $ 7,469 $ 51,084 Provision for loan and lease losses 523 250 — 773 (888) 5,047 4,159 4,932 Net refund transfer fees — — — — 3,473 — 3,473 3,473 Mortgage banking income — — 1,316 1,316 — — — 1,316 Program fees — — — — 124 1,199 1,323 1,323 Other noninterest income 7,725 11 49 7,785 80 319 399 8,184 Total noninterest income 7,725 11 1,365 9,101 3,677 1,518 5,195 14,296 Total noninterest expense 35,415 850 1,176 37,441 2,273 918 3,191 40,632 Income before income tax expense 11,135 3,075 292 14,502 2,620 2,694 5,314 19,816 Income tax expense 2,168 702 62 2,932 609 609 1,218 4,150 Net income $ 8,967 $ 2,373 $ 230 $ 11,570 $ 2,011 $ 2,085 $ 4,096 $ 15,666 Period-end assets $ 4,501,539 $ 634,452 $ 17,998 $ 5,153,989 $ 27,192 $ 84,764 $ 111,956 $ 5,265,945 Net interest margin 3.71 % 3.08 % NM 3.64 % NM NM NM 4.19 % Net-revenue concentration* 73 % 6 % 2 % 81 % 6 % 13 % 19 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. Six Months Ended June 30, 2019 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 83,224 $ 6,852 $ 272 $ 90,348 $ 21,148 $ 14,749 $ 35,897 $ 126,245 Provision for loan and lease losses 1,616 642 — 2,258 13,826 5,607 19,433 21,691 Net refund transfer fees — — — — 20,729 — 20,729 20,729 Mortgage banking income — — 3,955 3,955 — — — 3,955 Program fees — — — — 196 1,915 2,111 2,111 Other noninterest income 14,749 23 96 14,868 220 659 879 15,747 Total noninterest income 14,749 23 4,051 18,823 21,145 2,574 23,719 42,542 Total noninterest expense 73,314 1,550 2,674 77,538 9,963 1,436 11,399 88,937 Income before income tax expense 23,043 4,683 1,649 29,375 18,504 10,280 28,784 58,159 Income tax expense 2,509 1,054 346 3,909 4,318 2,409 6,727 10,636 Net income $ 20,534 $ 3,629 $ 1,303 $ 25,466 $ 14,186 $ 7,871 $ 22,057 $ 47,523 Period-end assets $ 4,805,449 $ 738,300 $ 20,568 $ 5,564,317 $ 36,834 $ 121,983 $ 158,817 $ 5,723,134 Net interest margin 3.81 % 2.63 % NM 3.69 % NM NM NM 4.88 % Net-revenue concentration* 58 % 4 % 3 % 65 % 25 % 10 % 35 % 100 % Six Months Ended June 30, 2018 Core Banking Republic Processing Group Total Tax Republic Traditional Warehouse Mortgage Core Refund Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions RPG Company Net interest income $ 77,536 $ 7,755 $ 175 $ 85,466 $ 19,014 $ 14,269 $ 33,283 $ 118,749 Provision for loan and lease losses 1,462 271 — 1,733 12,501 7,953 20,454 22,187 Net refund transfer fees — — — — 19,825 — 19,825 19,825 Mortgage banking income — — 2,336 2,336 — — — 2,336 Program fees — — — — 183 2,836 3,019 3,019 Other noninterest income 14,727 19 87 14,833 1,190 638 1,828 16,661 Total noninterest income 14,727 19 2,423 17,169 21,198 3,474 24,672 41,841 Total noninterest expense 68,807 1,689 2,380 72,876 8,798 2,003 10,801 83,677 Income before income tax expense 21,994 5,814 218 28,026 18,913 7,787 26,700 54,726 Income tax expense 3,940 1,329 46 5,315 4,463 1,813 6,276 11,591 Net income $ 18,054 $ 4,485 $ 172 $ 22,711 $ 14,450 $ 5,974 $ 20,424 $ 43,135 Period-end assets $ 4,501,539 $ 634,452 $ 17,998 $ 5,153,989 $ 27,192 $ 84,764 $ 111,956 $ 5,265,945 Net interest margin 3.65 % 3.13 % NM 3.60 % NM NM NM 4.85 % Net-revenue concentration* 57 % 5 % 2 % 64 % 25 % 11 % 36 % 100 % *Net revenue represents net interest income plus total noninterest income. Net-revenue concentration equals segment-level net revenue divided by total Company net revenue. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
INCOME TAXES | |
Schedule of effective tax rate that differs from that computed at the federal statutory rate | Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Federal rate times financial statement income 21.00 % 21.00 % 21.00 % 21.00 % Effect of: State taxes, net of federal benefit (2.47) 0.82 (0.51) 1.54 General business tax credits (0.55) (0.63) (0.68) (0.31) Nontaxable income (1.27) (1.35) (0.89) (0.94) Other, net (1.72) 1.10 (0.63) (0.11) Effective tax rate 14.99 % 20.94 % 18.29 % 21.18 % |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 6 Months Ended |
Jun. 30, 2019segmentitem | |
Basis of Presentation | |
Number of reportable segments | segment | 5 |
Number of banking centers | 45 |
Number of loan production offices | 2 |
Kentucky | |
Basis of Presentation | |
Number of banking centers | 32 |
Metropolitan Louisville | |
Basis of Presentation | |
Number of banking centers | 18 |
Central Kentucky | |
Basis of Presentation | |
Number of banking centers | 9 |
Elizabethtown | |
Basis of Presentation | |
Number of banking centers | 1 |
Frankfort | |
Basis of Presentation | |
Number of banking centers | 1 |
Georgetown | |
Basis of Presentation | |
Number of banking centers | 1 |
Lexington | |
Basis of Presentation | |
Number of banking centers | 5 |
Shelbyville | |
Basis of Presentation | |
Number of banking centers | 1 |
Western Kentucky | |
Basis of Presentation | |
Number of banking centers | 2 |
Owensboro | |
Basis of Presentation | |
Number of banking centers | 2 |
Northern Kentucky | |
Basis of Presentation | |
Number of banking centers | 3 |
Covington | |
Basis of Presentation | |
Number of banking centers | 1 |
Crestview Hills | |
Basis of Presentation | |
Number of banking centers | 1 |
Florence | |
Basis of Presentation | |
Number of banking centers | 1 |
Southern Indiana | |
Basis of Presentation | |
Number of banking centers | 3 |
Floyds Knobs | |
Basis of Presentation | |
Number of banking centers | 1 |
Jeffersonville | |
Basis of Presentation | |
Number of banking centers | 1 |
New Albany | |
Basis of Presentation | |
Number of banking centers | 1 |
Metropolitan Tampa, Florida | |
Basis of Presentation | |
Number of banking centers | 8 |
Metropolitan Cincinnati, Ohio | |
Basis of Presentation | |
Number of banking centers | 1 |
Metropolitan Nashville, Tennessee | |
Basis of Presentation | |
Number of banking centers | 3 |
Core Banking Activities | |
Basis of Presentation | |
Number of reportable segments | segment | 3 |
Core Banking Activities | Minimum | |
Basis of Presentation | |
Period of loan expected to remain in warehouse line | 15 days |
Core Banking Activities | Maximum | |
Basis of Presentation | |
Period of loan expected to remain in warehouse line | 30 days |
Republic Processing Group | |
Basis of Presentation | |
Number of reportable segments | segment | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 6 Months Ended | 30 Months Ended | ||||
Feb. 28, 2019 | Feb. 28, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Tax Refund Solutions | Easy Advances | ||||||||
Basis of Presentation | ||||||||
Period Easy Advance tax credit product offered | 2 months | 2 months | ||||||
Multiple loan-amount tiers, maximum advance amount | $ 3,500 | $ 6,250 | $ 3,500 | |||||
APR to the taxpayer for his or her portion of the total fee for all offering tiers (as a percent) | 36.00% | |||||||
EA's repayment term | 21 days | |||||||
Maximum repayment period before Easy Advances considered delinquent | 21 days | |||||||
Duration of unpaid EA's write off | 111 days | 111 days | 60 days | |||||
Republic Credit Solutions | Line of credit | ||||||||
Basis of Presentation | ||||||||
Percentage of loan receivable held for sale (as a percent) | 90.00% | |||||||
Interest retained (as a percent) | 10.00% | |||||||
Consumer loans held for sale period | 3 days | |||||||
Republic Credit Solutions | Credit card | ||||||||
Basis of Presentation | ||||||||
Percentage of loan receivable held for sale (as a percent) | 100.00% | 100.00% | 90.00% | |||||
Interest retained (as a percent) | 10.00% | |||||||
Consumer loans held for sale period | 2 days | |||||||
Republic Credit Solutions | Healthcare receivables | ||||||||
Basis of Presentation | ||||||||
Number of third party relationship | 2 | |||||||
Interest retained - Third party relationship one (as a percent) | 100.00% | |||||||
Interest retained - Third party relationship two (as a percent) | 100.00% | |||||||
Percentage of loan receivable held for sale - Third party relationship two (as a percent) | 100.00% | |||||||
Consumer loans held for sale period | 1 month |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASUs (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Accounting Pronouncements | ||
Right-of-use assets | $ 37,450 | |
Operating lease liabilities | $ 38,852 | |
ASU 2016-02 | Restatement | ||
Accounting Pronouncements | ||
Right-of-use assets | $ 40,000 | |
Operating lease liabilities | $ 42,000 |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 376,094 | $ 477,115 |
Gross Unrealized Gains | 5,082 | 3,623 |
Gross Unrealized Losses | (820) | (5,000) |
Fair Value | 380,356 | 475,738 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 139,608 | 218,502 |
Gross Unrealized Gains | 20 | 25 |
Gross Unrealized Losses | (293) | (1,654) |
Fair Value | 139,335 | 216,873 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 2,285 | 2,348 |
Gross Unrealized Gains | 1,330 | 1,364 |
Fair Value | 3,615 | 3,712 |
Mortgage backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 151,504 | 168,992 |
Gross Unrealized Gains | 2,911 | 1,470 |
Gross Unrealized Losses | (223) | (1,253) |
Fair Value | 154,192 | 169,209 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 69,143 | 73,740 |
Gross Unrealized Gains | 375 | 222 |
Gross Unrealized Losses | (139) | (1,151) |
Fair Value | 69,379 | 72,811 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 10,000 | 10,000 |
Gross Unrealized Losses | (165) | (942) |
Fair Value | 9,835 | 9,058 |
Trust preferred security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,554 | 3,533 |
Gross Unrealized Gains | 446 | 542 |
Fair Value | $ 4,000 | $ 4,075 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-Maturity Debt Securities | ||
Carrying Value | $ 63,902 | $ 65,227 |
Gross Unrecognized Gains | 565 | 202 |
Gross Unrecognized Losses | (34) | (571) |
Fair Value | 64,433 | 64,858 |
Mortgage backed securities - residential | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 129 | 132 |
Gross Unrecognized Gains | 8 | 8 |
Fair Value | 137 | 140 |
Collateralized mortgage obligations | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 18,232 | 19,544 |
Gross Unrecognized Gains | 116 | 178 |
Gross Unrecognized Losses | (17) | (46) |
Fair Value | 18,331 | 19,676 |
Corporate bonds | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 45,079 | 45,088 |
Gross Unrecognized Gains | 441 | 16 |
Gross Unrecognized Losses | (17) | (514) |
Fair Value | 45,503 | 44,590 |
Obligations of state and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Carrying Value | 462 | 463 |
Gross Unrecognized Losses | (11) | |
Fair Value | $ 462 | $ 452 |
INVESTMENT SECURITIES - SALES O
INVESTMENT SECURITIES - SALES OF AFS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INVESTMENT SECURITIES | ||||
Net gains (losses) on securities available for sale | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 77,383 | |
Due from one year to five years | 72,225 | |
Due beyond ten years | 3,554 | |
Amortized Cost | 376,094 | $ 477,115 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 77,167 | |
Due from one year to five years | 72,003 | |
Due beyond ten years | 4,000 | |
Total securities | 380,356 | 475,738 |
Securities held to maturity - Carrying Value | ||
Due in one year or less | 5,075 | |
Due from one year to five years | 35,522 | |
Due from five years to ten years | 4,944 | |
Total securities | 63,902 | 65,227 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 5,103 | |
Due from one year to five years | 35,935 | |
Due from five years to ten years | 4,927 | |
Fair Value | 64,433 | 64,858 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 2,285 | |
Amortized Cost | 2,285 | 2,348 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 3,615 | |
Total securities | 3,615 | 3,712 |
Mortgage backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 151,504 | |
Amortized Cost | 151,504 | 168,992 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 154,192 | |
Total securities | 154,192 | 169,209 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 129 | |
Total securities | 129 | 132 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 137 | |
Fair Value | 137 | 140 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 69,143 | |
Amortized Cost | 69,143 | 73,740 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 69,379 | |
Total securities | 69,379 | 72,811 |
Securities held to maturity - Carrying Value | ||
Securities not due at a single maturity date | 18,232 | |
Total securities | 18,232 | 19,544 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 18,331 | |
Fair Value | $ 18,331 | $ 19,676 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 4,189 | $ 140,863 |
Less than 12 months Unrealized Losses | (5) | (2,497) |
12 months or more Fair Value | 176,646 | 169,210 |
12 months or more Unrealized Losses | (815) | (2,503) |
Total Fair Value | 180,835 | 310,073 |
Total Unrealized Losses | $ (820) | $ (5,000) |
Number of securities held | 168 | 182 |
Number of securities held in an unrealized loss position | 37 | 65 |
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies | 10.00% | 10.00% |
Held-to-maturity debt securities | ||
Less than 12 months Fair Value | $ 4,927 | $ 39,604 |
Less than 12 months Unrealized Losses | (17) | (515) |
12 months or more Fair Value | 5,213 | 5,886 |
12 months or more Unrealized Losses | (17) | (56) |
Total Fair Value | 10,140 | 45,490 |
Total Unrealized Losses | (34) | (571) |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 71,627 | |
Less than 12 months Unrealized Losses | (598) | |
12 months or more Fair Value | 107,091 | 106,136 |
12 months or more Unrealized Losses | (293) | (1,056) |
Total Fair Value | 107,091 | 177,763 |
Total Unrealized Losses | (293) | (1,654) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 43,691 | |
Less than 12 months Unrealized Losses | (484) | |
12 months or more Fair Value | 39,033 | 32,003 |
12 months or more Unrealized Losses | (223) | (769) |
Total Fair Value | 39,033 | 75,694 |
Total Unrealized Losses | (223) | (1,253) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 4,189 | 16,487 |
Less than 12 months Unrealized Losses | (5) | (473) |
12 months or more Fair Value | 20,687 | 31,071 |
12 months or more Unrealized Losses | (134) | (678) |
Total Fair Value | 24,876 | 47,558 |
Total Unrealized Losses | (139) | (1,151) |
Held-to-maturity debt securities | ||
12 months or more Fair Value | 5,213 | 5,539 |
12 months or more Unrealized Losses | (17) | (46) |
Total Fair Value | 5,213 | 5,539 |
Total Unrealized Losses | (17) | (46) |
Corporate bonds | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 9,058 | |
Less than 12 months Unrealized Losses | (942) | |
12 months or more Fair Value | 9,835 | |
12 months or more Unrealized Losses | (165) | |
Total Fair Value | 9,835 | 9,058 |
Total Unrealized Losses | (165) | (942) |
Held-to-maturity debt securities | ||
Less than 12 months Fair Value | 4,927 | 39,499 |
Less than 12 months Unrealized Losses | (17) | (514) |
Total Fair Value | 4,927 | 39,499 |
Total Unrealized Losses | $ (17) | (514) |
Obligations of state and political subdivisions | ||
Held-to-maturity debt securities | ||
Less than 12 months Fair Value | 105 | |
Less than 12 months Unrealized Losses | (1) | |
12 months or more Fair Value | 347 | |
12 months or more Unrealized Losses | (10) | |
Total Fair Value | 452 | |
Total Unrealized Losses | $ (11) |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Corporate bonds | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Percentage of concentration risk | 10.00% | 10.00% |
Gross unrealized losses on available for sale securities | $ 165,000 | |
Private label mortgage backed security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Securities | 3,615,000 | |
Mortgage backed securities and CMOs | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Gross unrealized losses on available for sale securities | $ 362,000 | $ 2,400,000 |
INVESTMENT SECURITIES - TRUST P
INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2015 | |
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Amount of floating rate purchased | $ 99,026 | |
Trust preferred security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Amount of floating rate purchased | $ 3,000 | |
Price as percentage of face value | 68.00% | |
3 Month London Interbank Offered Rate (LIBOR) | Trust preferred security | ||
Amortized cost and fair value of the investment securities portfolio by contractual maturity | ||
Interest rate - Basis Spread | 1.59% |
INVESTMENT SECURITIES - OTHER T
INVESTMENT SECURITIES - OTHER THAN TEMPORARY IMPAIRMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Bank's private label mortgage backed security credit losses recognized in earnings | ||
Number of securities held | 168 | 182 |
Available-for-sale debt securities | $ 380,356 | $ 475,738 |
Private label mortgage backed security | ||
Bank's private label mortgage backed security credit losses recognized in earnings | ||
Number of securities held | 1 | |
Available-for-sale debt securities | $ 3,615 | $ 3,712 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
INVESTMENT SECURITIES | ||
Carrying amount | $ 274,545 | $ 240,590 |
Fair value | $ 274,652 | $ 240,700 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Equity securities | |||||
Amortized Cost | $ 2,500 | $ 2,500 | $ 2,500 | ||
Gross Unrealized Gains | 787 | 410 | |||
Gross Unrealized Losses | (33) | (104) | |||
Fair Value | 3,254 | 3,254 | 2,806 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 159 | $ 46 | 448 | $ (135) | |
Gains (Losses) Recognized on Equity securities, Total | 159 | 46 | 448 | (135) | |
Freddie Mac preferred stock | |||||
Equity securities | |||||
Gross Unrealized Gains | 787 | 410 | |||
Fair Value | 787 | 787 | 410 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 126 | 60 | 378 | (84) | |
Gains (Losses) Recognized on Equity securities, Total | 126 | 60 | 378 | (84) | |
Community Reinvestment Act mutual fund | |||||
Equity securities | |||||
Amortized Cost | 2,500 | 2,500 | 2,500 | ||
Gross Unrealized Losses | (33) | (104) | |||
Fair Value | 2,467 | 2,467 | $ 2,396 | ||
Gains (Losses) Recognized on Equity securities, Unrealized | 33 | (14) | 70 | (51) | |
Gains (Losses) Recognized on Equity securities, Total | $ 33 | $ (14) | $ 70 | $ (51) |
LOANS HELD FOR SALE - MORTGAGE
LOANS HELD FOR SALE - MORTGAGE LOANS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Loans held for sale | |||||
Net (loss) gain realized on sale of mortgage loans held for sale | $ 2,218,000 | $ 1,085,000 | $ 3,478,000 | $ 1,862,000 | |
Warehouse Lending | |||||
Loans held for sale | |||||
Reverse mortgage loans received as payment | $ 12,000,000 | ||||
Net (loss) gain realized on sale of mortgage loans held for sale | $ (200,000) |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 30 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Carried at lower of cost or fair value | |||||||
Balance, beginning of period | $ 12,864 | $ 13,684 | $ 7,380 | $ 12,838 | $ 8,551 | ||
Origination of consumer loans held for sale | 200,327 | 198,903 | 346,413 | 356,424 | |||
Proceeds from the sale of consumer loans held for sale | (176,759) | (194,263) | (324,260) | (354,529) | |||
Net gain on sale of consumer loans held for sale | 1,177 | 1,664 | 2,618 | 3,238 | |||
Balance, end of period | $ 37,609 | $ 12,838 | $ 13,684 | $ 37,609 | $ 13,684 | $ 7,380 | |
Republic Credit Solutions | Line of Credit and Healthcare Receivables | |||||||
Loans held for sale | |||||||
Percentage of loan receivable held for sale (as a percent) | 90.00% | 90.00% | |||||
Republic Credit Solutions | Credit card | |||||||
Loans held for sale | |||||||
Percentage of loan receivable held for sale (as a percent) | 100.00% | 100.00% | 90.00% | ||||
Reclassification of interest into held-for-sale | 100.00% |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans disclosures | ||||||
Total loans | $ 4,410,669 | $ 4,148,227 | ||||
Allowance for loan and lease losses | (45,983) | $ (57,961) | (44,675) | $ (45,047) | $ (52,341) | $ (42,769) |
Loans, net | 4,364,686 | 4,103,552 | ||||
Core Banking Activities | ||||||
Loans disclosures | ||||||
Total loans | 4,313,168 | 4,045,739 | ||||
Allowance for loan and lease losses | (32,983) | (31,569) | (31,519) | (31,334) | (30,566) | (30,147) |
Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 3,587,831 | 3,577,044 | ||||
Allowance for loan and lease losses | (31,169) | (30,172) | (30,347) | (29,749) | (29,231) | (28,833) |
Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 97,501 | 102,488 | ||||
Allowance for loan and lease losses | (13,000) | (26,392) | (13,156) | (13,713) | (21,775) | (12,622) |
Residential Real Estate - Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 907,826 | 907,005 | ||||
Allowance for loan and lease losses | (5,016) | (5,579) | (5,798) | (6,035) | (5,988) | (6,182) |
Residential Real Estate - Owner Occupied - Correspondent | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 78,943 | 94,827 | ||||
Allowance for loan and lease losses | (197) | (222) | (237) | (263) | (278) | (292) |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 259,166 | 242,846 | ||||
Allowance for loan and lease losses | (1,775) | (1,720) | (1,662) | (1,552) | (1,461) | (1,396) |
Commercial Real Estate | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 1,253,868 | 1,248,940 | ||||
Allowance for loan and lease losses | (10,566) | (10,235) | (10,030) | (9,815) | (9,460) | (9,043) |
Construction & land development | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 190,984 | 175,178 | ||||
Allowance for loan and lease losses | (2,910) | (2,443) | (2,555) | (2,825) | (2,720) | (2,364) |
Commercial & industrial | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 447,295 | 430,355 | ||||
Allowance for loan and lease losses | (4,221) | (3,235) | (2,873) | (2,318) | (2,247) | (2,198) |
Lease Financing Receivables | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 17,271 | 15,031 | ||||
Allowance for loan and lease losses | (181) | (150) | (158) | (160) | (165) | (174) |
Home equity lines of credit | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 296,834 | 332,548 | ||||
Allowance for loan and lease losses | (3,124) | (3,337) | (3,477) | (3,658) | (3,669) | (3,754) |
Consumer: Credit cards | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 17,429 | 19,095 | ||||
Allowance for loan and lease losses | (1,028) | (1,079) | (1,140) | (805) | (756) | (607) |
Consumer: Overdrafts | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 894 | 1,102 | ||||
Allowance for loan and lease losses | (894) | (892) | (1,102) | (878) | (791) | (974) |
Consumer: Automobile loan | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 63,553 | 63,475 | ||||
Allowance for loan and lease losses | (708) | (768) | (724) | (664) | (706) | (687) |
Other consumer | Traditional Banking | ||||||
Loans disclosures | ||||||
Total loans | 53,768 | 46,642 | ||||
Allowance for loan and lease losses | (549) | (512) | (591) | (776) | (990) | (1,162) |
Warehouse lines of credit | Core Banking Activities | ||||||
Loans disclosures | ||||||
Total loans | 725,337 | 468,695 | ||||
Allowance for loan and lease losses | (1,814) | (1,397) | (1,172) | (1,585) | (1,335) | (1,314) |
Easy Advances | Republic Processing Group | ||||||
Loans disclosures | ||||||
Allowance for loan and lease losses | (13,381) | (9,572) | ||||
Other TRS loans | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 711 | 13,744 | ||||
Allowance for loan and lease losses | (232) | (149) | (107) | (67) | (125) | (12) |
Republic Credit Solutions | Republic Processing Group | ||||||
Loans disclosures | ||||||
Total loans | 96,790 | 88,744 | ||||
Allowance for loan and lease losses | $ (12,768) | $ (12,862) | $ (13,049) | $ (13,646) | $ (12,078) | $ (12,610) |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Contractually receivable | $ 4,409,882 | $ 4,147,249 |
Unearned income | (1,287) | (1,038) |
Unamortized premiums | 487 | 588 |
Unaccreted discounts | (3,064) | (3,400) |
Net unamortized deferred origination fees and costs | 4,651 | 4,828 |
Carrying value of loans | $ 4,410,669 | $ 4,148,227 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - PCI RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Disclosures on loans acquired | ||||||
Contractually receivable | $ 4,409,882 | $ 4,147,249 | ||||
Carrying value of loans | 4,410,669 | 4,148,227 | ||||
PCI loan | ||||||
Disclosures on loans acquired | ||||||
Contractually receivable | 3,882 | 4,251 | ||||
Non-accretable amount | (1,379) | (1,521) | ||||
Accretable amount | $ (50) | $ (140) | $ (50) | $ (140) | (50) | (50) |
Carrying value of loans | $ 2,453 | $ 2,680 | ||||
Rollforward of the accretable discount on PCI loans | ||||||
Balance at the beginning of the period | (50) | (140) | (50) | (140) | ||
Transfers between non-accretable and accretable | (26) | (241) | (142) | (241) | ||
Net accretion into interest income on loans, including loan fees | 26 | 281 | 142 | 281 | ||
Balance at the end of the period | $ (50) | $ (100) | $ (50) | $ (100) |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - RISK CATEGORY (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Risk category of rated loans | ||
Loans | $ 4,410,669 | $ 4,148,227 |
Pass | ||
Risk category of rated loans | ||
Loans | 2,618,420 | 2,327,312 |
Special Mention | ||
Risk category of rated loans | ||
Loans | 20,826 | 21,205 |
Substandard | ||
Risk category of rated loans | ||
Loans | 24,458 | 19,860 |
PCI Loans - Group 1 | ||
Risk category of rated loans | ||
Loans | 1,065 | 1,121 |
PCI Loans - Substandard | ||
Risk category of rated loans | ||
Loans | 1,388 | 1,559 |
Rated Loans | ||
Risk category of rated loans | ||
Loans | 2,666,157 | 2,371,057 |
Core Banking Activities | ||
Risk category of rated loans | ||
Loans | 4,313,168 | 4,045,739 |
Core Banking Activities | Warehouse lines of credit | ||
Risk category of rated loans | ||
Loans | 725,337 | 468,695 |
Core Banking Activities | Pass | ||
Risk category of rated loans | ||
Loans | 2,618,420 | 2,327,312 |
Core Banking Activities | Pass | Warehouse lines of credit | ||
Risk category of rated loans | ||
Loans | 725,337 | 468,695 |
Core Banking Activities | Special Mention | ||
Risk category of rated loans | ||
Loans | 20,826 | 21,205 |
Core Banking Activities | Substandard | ||
Risk category of rated loans | ||
Loans | 24,337 | 19,722 |
Core Banking Activities | PCI Loans - Group 1 | ||
Risk category of rated loans | ||
Loans | 1,065 | 1,121 |
Core Banking Activities | PCI Loans - Substandard | ||
Risk category of rated loans | ||
Loans | 1,388 | 1,559 |
Core Banking Activities | Rated Loans | ||
Risk category of rated loans | ||
Loans | 2,666,036 | 2,370,919 |
Core Banking Activities | Rated Loans | Warehouse lines of credit | ||
Risk category of rated loans | ||
Loans | 725,337 | 468,695 |
Traditional Banking | ||
Risk category of rated loans | ||
Loans | 3,587,831 | 3,577,044 |
Traditional Banking | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 907,826 | 907,005 |
Traditional Banking | Residential Real Estate - Owner Occupied - Correspondent | ||
Risk category of rated loans | ||
Loans | 78,943 | 94,827 |
Traditional Banking | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 259,166 | 242,846 |
Traditional Banking | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 1,253,868 | 1,248,940 |
Traditional Banking | Construction & land development | ||
Risk category of rated loans | ||
Loans | 190,984 | 175,178 |
Traditional Banking | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 447,295 | 430,355 |
Traditional Banking | Lease Financing Receivables | ||
Risk category of rated loans | ||
Loans | 17,271 | 15,031 |
Traditional Banking | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 296,834 | 332,548 |
Traditional Banking | Consumer: Credit cards | ||
Risk category of rated loans | ||
Loans | 17,429 | 19,095 |
Traditional Banking | Consumer: Overdrafts | ||
Risk category of rated loans | ||
Loans | 894 | 1,102 |
Traditional Banking | Consumer: Automobile loan | ||
Risk category of rated loans | ||
Loans | 63,553 | 63,475 |
Traditional Banking | Other consumer | ||
Risk category of rated loans | ||
Loans | 53,768 | 46,642 |
Traditional Banking | Pass | ||
Risk category of rated loans | ||
Loans | 1,893,083 | 1,858,617 |
Traditional Banking | Pass | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 1,246,137 | 1,239,576 |
Traditional Banking | Pass | Construction & land development | ||
Risk category of rated loans | ||
Loans | 188,719 | 175,113 |
Traditional Banking | Pass | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 440,956 | 428,897 |
Traditional Banking | Pass | Lease Financing Receivables | ||
Risk category of rated loans | ||
Loans | 17,271 | 15,031 |
Traditional Banking | Special Mention | ||
Risk category of rated loans | ||
Loans | 20,826 | 21,205 |
Traditional Banking | Special Mention | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 13,234 | 14,536 |
Traditional Banking | Special Mention | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 491 | 575 |
Traditional Banking | Special Mention | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 3,632 | 5,281 |
Traditional Banking | Special Mention | Construction & land development | ||
Risk category of rated loans | ||
Loans | 2,205 | |
Traditional Banking | Special Mention | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 1,264 | 813 |
Traditional Banking | Substandard | ||
Risk category of rated loans | ||
Loans | 24,337 | 19,722 |
Traditional Banking | Substandard | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 11,043 | 11,690 |
Traditional Banking | Substandard | Residential Real Estate - Owner Occupied - Correspondent | ||
Risk category of rated loans | ||
Loans | 848 | 382 |
Traditional Banking | Substandard | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 1,310 | 1,889 |
Traditional Banking | Substandard | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 3,226 | 3,162 |
Traditional Banking | Substandard | Construction & land development | ||
Risk category of rated loans | ||
Loans | 60 | 65 |
Traditional Banking | Substandard | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 5,051 | 620 |
Traditional Banking | Substandard | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 2,333 | 1,361 |
Traditional Banking | Substandard | Consumer: Automobile loan | ||
Risk category of rated loans | ||
Loans | 80 | 91 |
Traditional Banking | Substandard | Other consumer | ||
Risk category of rated loans | ||
Loans | 386 | 462 |
Traditional Banking | PCI Loans - Group 1 | ||
Risk category of rated loans | ||
Loans | 1,065 | 1,121 |
Traditional Banking | PCI Loans - Group 1 | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 165 | 170 |
Traditional Banking | PCI Loans - Group 1 | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 873 | 921 |
Traditional Banking | PCI Loans - Group 1 | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 24 | 25 |
Traditional Banking | PCI Loans - Group 1 | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 3 | 5 |
Traditional Banking | PCI Loans - Substandard | ||
Risk category of rated loans | ||
Loans | 1,388 | 1,559 |
Traditional Banking | PCI Loans - Substandard | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 1,378 | 1,476 |
Traditional Banking | PCI Loans - Substandard | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 7 | 81 |
Traditional Banking | PCI Loans - Substandard | Other consumer | ||
Risk category of rated loans | ||
Loans | 3 | 2 |
Traditional Banking | Rated Loans | ||
Risk category of rated loans | ||
Loans | 1,940,699 | 1,902,224 |
Traditional Banking | Rated Loans | Residential Real Estate - Owner Occupied | ||
Risk category of rated loans | ||
Loans | 25,820 | 27,872 |
Traditional Banking | Rated Loans | Residential Real Estate - Owner Occupied - Correspondent | ||
Risk category of rated loans | ||
Loans | 848 | 382 |
Traditional Banking | Rated Loans | Residential Real Estate - Non Owner Occupied | ||
Risk category of rated loans | ||
Loans | 1,801 | 2,464 |
Traditional Banking | Rated Loans | Commercial Real Estate | ||
Risk category of rated loans | ||
Loans | 1,253,868 | 1,248,940 |
Traditional Banking | Rated Loans | Construction & land development | ||
Risk category of rated loans | ||
Loans | 190,984 | 175,178 |
Traditional Banking | Rated Loans | Commercial & industrial | ||
Risk category of rated loans | ||
Loans | 447,295 | 430,355 |
Traditional Banking | Rated Loans | Lease Financing Receivables | ||
Risk category of rated loans | ||
Loans | 17,271 | 15,031 |
Traditional Banking | Rated Loans | Home equity lines of credit | ||
Risk category of rated loans | ||
Loans | 2,343 | 1,447 |
Traditional Banking | Rated Loans | Consumer: Automobile loan | ||
Risk category of rated loans | ||
Loans | 80 | 91 |
Traditional Banking | Rated Loans | Other consumer | ||
Risk category of rated loans | ||
Loans | 389 | 464 |
Republic Processing Group | ||
Risk category of rated loans | ||
Loans | 97,501 | 102,488 |
Republic Processing Group | Other TRS loans | ||
Risk category of rated loans | ||
Loans | 711 | 13,744 |
Republic Processing Group | Republic Credit Solutions | ||
Risk category of rated loans | ||
Loans | 96,790 | 88,744 |
Republic Processing Group | Substandard | ||
Risk category of rated loans | ||
Loans | 121 | 138 |
Republic Processing Group | Substandard | Other TRS loans | ||
Risk category of rated loans | ||
Loans | 13 | |
Republic Processing Group | Substandard | Republic Credit Solutions | ||
Risk category of rated loans | ||
Loans | 108 | 138 |
Republic Processing Group | Rated Loans | ||
Risk category of rated loans | ||
Loans | 121 | 138 |
Republic Processing Group | Rated Loans | Other TRS loans | ||
Risk category of rated loans | ||
Loans | 13 | |
Republic Processing Group | Rated Loans | Republic Credit Solutions | ||
Risk category of rated loans | ||
Loans | $ 108 | $ 138 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for loan losses rollforward | ||||
Beginning Balance | $ 57,961 | $ 52,341 | $ 44,675 | $ 42,769 |
Provision for loan and lease losses | 4,460 | 4,932 | 21,691 | 22,187 |
Charged-off | (17,163) | (13,175) | (21,616) | (21,522) |
Recoveries | 725 | 949 | 1,233 | 1,613 |
Ending Balance | 45,983 | 45,047 | 45,983 | 45,047 |
Core Banking Activities | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 31,569 | 30,566 | 31,519 | 30,147 |
Provision for loan and lease losses | 1,844 | 773 | 2,258 | 1,733 |
Charged-off | (791) | (578) | (1,403) | (1,524) |
Recoveries | 361 | 573 | 609 | 978 |
Ending Balance | 32,983 | 31,334 | 32,983 | 31,334 |
Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 30,172 | 29,231 | 30,347 | 28,833 |
Provision for loan and lease losses | 1,427 | 523 | 1,616 | 1,462 |
Charged-off | (791) | (578) | (1,403) | (1,524) |
Recoveries | 361 | 573 | 609 | 978 |
Ending Balance | 31,169 | 29,749 | 31,169 | 29,749 |
Warehouse Lending | ||||
Allowance for loan losses rollforward | ||||
Provision for loan and lease losses | 417 | 250 | 642 | 271 |
Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 26,392 | 21,775 | 13,156 | 12,622 |
Provision for loan and lease losses | 2,616 | 4,159 | 19,433 | 20,454 |
Charged-off | (16,372) | (12,597) | (20,213) | (19,998) |
Recoveries | 364 | 376 | 624 | 635 |
Ending Balance | 13,000 | 13,713 | 13,000 | 13,713 |
Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 5,579 | 5,988 | 5,798 | 6,182 |
Provision for loan and lease losses | (417) | (116) | (657) | (307) |
Charged-off | (367) | (15) | (384) | (39) |
Recoveries | 221 | 178 | 259 | 199 |
Ending Balance | 5,016 | 6,035 | 5,016 | 6,035 |
Residential Real Estate - Owner Occupied - Correspondent | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 222 | 278 | 237 | 292 |
Provision for loan and lease losses | (25) | (15) | (40) | (29) |
Ending Balance | 197 | 263 | 197 | 263 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 1,720 | 1,461 | 1,662 | 1,396 |
Provision for loan and lease losses | 48 | 93 | 178 | 449 |
Charged-off | (1) | (7) | (73) | (319) |
Recoveries | 8 | 5 | 8 | 26 |
Ending Balance | 1,775 | 1,552 | 1,775 | 1,552 |
Commercial Real Estate | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 10,235 | 9,460 | 10,030 | 9,043 |
Provision for loan and lease losses | 329 | 352 | 532 | 644 |
Recoveries | 2 | 3 | 4 | 128 |
Ending Balance | 10,566 | 9,815 | 10,566 | 9,815 |
Construction & land development | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 2,443 | 2,720 | 2,555 | 2,364 |
Provision for loan and lease losses | 467 | 80 | 355 | 434 |
Recoveries | 25 | 27 | ||
Ending Balance | 2,910 | 2,825 | 2,910 | 2,825 |
Commercial & industrial | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 3,235 | 2,247 | 2,873 | 2,198 |
Provision for loan and lease losses | 983 | 84 | 1,343 | 210 |
Charged-off | (17) | (125) | ||
Recoveries | 3 | 4 | 5 | 35 |
Ending Balance | 4,221 | 2,318 | 4,221 | 2,318 |
Lease Financing Receivables | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 150 | 165 | 158 | 174 |
Provision for loan and lease losses | 31 | (5) | 23 | (14) |
Ending Balance | 181 | 160 | 181 | 160 |
Home equity lines of credit | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 3,337 | 3,669 | 3,477 | 3,754 |
Provision for loan and lease losses | (221) | (180) | (378) | (291) |
Charged-off | (34) | (13) | (34) | |
Recoveries | 8 | 203 | 38 | 229 |
Ending Balance | 3,124 | 3,658 | 3,124 | 3,658 |
Consumer: Credit cards | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 1,079 | 756 | 1,140 | 607 |
Provision for loan and lease losses | 14 | 124 | 79 | 359 |
Charged-off | (76) | (95) | (226) | (188) |
Recoveries | 11 | 20 | 35 | 27 |
Ending Balance | 1,028 | 805 | 1,028 | 805 |
Consumer: Overdrafts | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 892 | 791 | 1,102 | 974 |
Provision for loan and lease losses | 250 | 296 | 269 | 313 |
Charged-off | (299) | (270) | (593) | (559) |
Recoveries | 51 | 61 | 116 | 150 |
Ending Balance | 894 | 878 | 894 | 878 |
Consumer: Automobile loan | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 768 | 706 | 724 | 687 |
Provision for loan and lease losses | (61) | (39) | (23) | (20) |
Charged-off | (4) | (4) | ||
Recoveries | 1 | 1 | 7 | 1 |
Ending Balance | 708 | 664 | 708 | 664 |
Other consumer | Traditional Banking | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 512 | 990 | 591 | 1,162 |
Provision for loan and lease losses | 29 | (151) | (65) | (286) |
Charged-off | (48) | (136) | (114) | (256) |
Recoveries | 56 | 73 | 137 | 156 |
Ending Balance | 549 | 776 | 549 | 776 |
Warehouse lines of credit | Core Banking Activities | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 1,397 | 1,335 | 1,172 | 1,314 |
Provision for loan and lease losses | 417 | 250 | 642 | 271 |
Ending Balance | 1,814 | 1,585 | 1,814 | 1,585 |
Easy Advances | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 13,381 | 9,572 | ||
Provision for loan and lease losses | 39 | (881) | 13,420 | 12,396 |
Charged-off | (13,425) | (8,773) | (13,425) | (12,478) |
Recoveries | 5 | 82 | 5 | 82 |
Other TRS loans | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 149 | 125 | 107 | 12 |
Provision for loan and lease losses | 353 | (7) | 406 | 105 |
Charged-off | (264) | (55) | (281) | (55) |
Recoveries | (6) | 4 | 5 | |
Ending Balance | 232 | 67 | 232 | 67 |
Republic Credit Solutions | Republic Processing Group | ||||
Allowance for loan losses rollforward | ||||
Beginning Balance | 12,862 | 12,078 | 13,049 | 12,610 |
Provision for loan and lease losses | 2,224 | 5,047 | 5,607 | 7,953 |
Charged-off | (2,683) | (3,769) | (6,507) | (7,465) |
Recoveries | 365 | 290 | 619 | 548 |
Ending Balance | $ 12,768 | $ 13,646 | $ 12,768 | $ 13,646 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 19,238 | $ 15,993 |
Loans past due 90 days or more and still on accrual | 166 | 145 |
Total nonperforming loans | 19,404 | 16,138 |
Other real estate owned | 1,095 | 160 |
Total nonperforming assets | $ 20,499 | $ 16,298 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.44% | 0.39% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.46% | 0.39% |
Nonperforming assets to total assets (as percent) | 0.36% | 0.31% |
Core Banking Activities | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 19,238 | $ 15,993 |
Loans past due 90 days or more and still on accrual | $ 13 | |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.45% | 0.40% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.47% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.37% | 0.32% |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - AGING (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Aging or recorded investments in loans | ||
Nonaccrual Loan | $ 19,238 | $ 15,993 |
Loans Past Due 90 Days or More and Still Accruing Interest | 166 | 145 |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 19,238 | 15,993 |
Loans Past Due 90 Days or More and Still Accruing Interest | 13 | |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 19,238 | 15,993 |
Loans Past Due 90 Days or More and Still Accruing Interest | 13 | |
Traditional Banking | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 8,879 | 10,800 |
Traditional Banking | Residential Real Estate - Owner Occupied - Correspondent | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 848 | 382 |
Traditional Banking | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 461 | 669 |
Traditional Banking | Commercial Real Estate | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 2,361 | 2,318 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 134 | |
Traditional Banking | Commercial & industrial | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 5,046 | 630 |
Traditional Banking | Home equity lines of credit | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 1,444 | 1,095 |
Traditional Banking | Consumer: Automobile loan | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 47 | 75 |
Traditional Banking | Other consumer | ||
Aging or recorded investments in loans | ||
Nonaccrual Loan | 18 | 24 |
Loans Past Due 90 Days or More and Still Accruing Interest | 13 | |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Loans Past Due 90 Days or More and Still Accruing Interest | 166 | 132 |
Republic Processing Group | Other TRS loans | ||
Aging or recorded investments in loans | ||
Loans Past Due 90 Days or More and Still Accruing Interest | 13 | 4 |
Republic Processing Group | Republic Credit Solutions | ||
Aging or recorded investments in loans | ||
Loans Past Due 90 Days or More and Still Accruing Interest | $ 153 | $ 128 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 19,326 | $ 15,962 |
Total Loans Not Delinquent | 4,391,343 | 4,132,265 |
Carrying value of loans | $ 4,410,669 | $ 4,148,227 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.44% | 0.38% |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 8,381 | $ 8,623 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.19% | 0.21% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 7,939 | $ 2,053 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.18% | 0.05% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 3,006 | $ 5,286 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.07% | 0.13% |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 12,524 | $ 8,875 |
Total Loans Not Delinquent | 4,300,644 | 4,036,864 |
Carrying value of loans | 4,313,168 | 4,045,739 |
Core Banking Activities | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3,021 | 2,887 |
Core Banking Activities | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,663 | 834 |
Core Banking Activities | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2,840 | 5,154 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 12,524 | 8,875 |
Total Loans Not Delinquent | 3,575,307 | 3,568,169 |
Carrying value of loans | 3,587,831 | 3,577,044 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 3,021 | 2,887 |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,663 | 834 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2,840 | 5,154 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,802 | 7,087 |
Total Loans Not Delinquent | 90,699 | 95,401 |
Carrying value of loans | 97,501 | 102,488 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5,360 | 5,736 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,276 | 1,219 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 166 | 132 |
Residential Real Estate - Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,058 | 5,525 |
Total Loans Not Delinquent | 903,768 | 901,480 |
Carrying value of loans | 907,826 | 907,005 |
Residential Real Estate - Owner Occupied | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,252 | 1,137 |
Residential Real Estate - Owner Occupied | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 962 | 748 |
Residential Real Estate - Owner Occupied | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,844 | 3,640 |
Residential Real Estate - Owner Occupied - Correspondent | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 78,943 | 94,827 |
Carrying value of loans | 78,943 | 94,827 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 671 | 1,008 |
Total Loans Not Delinquent | 258,495 | 241,838 |
Carrying value of loans | 259,166 | 242,846 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 240 | 349 |
Residential Real Estate - Non Owner Occupied | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 431 | 659 |
Commercial Real Estate | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 898 | 1,099 |
Total Loans Not Delinquent | 1,252,970 | 1,247,841 |
Carrying value of loans | 1,253,868 | 1,248,940 |
Commercial Real Estate | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 511 | |
Commercial Real Estate | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 597 | |
Commercial Real Estate | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 301 | 588 |
Construction & land development | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 540 | |
Total Loans Not Delinquent | 190,444 | 175,178 |
Carrying value of loans | 190,984 | 175,178 |
Construction & land development | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 412 | |
Construction & land development | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 128 | |
Commercial & industrial | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,933 | 25 |
Total Loans Not Delinquent | 442,362 | 430,330 |
Carrying value of loans | 447,295 | 430,355 |
Commercial & industrial | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 507 | |
Commercial & industrial | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 4,426 | |
Commercial & industrial | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 25 | |
Lease Financing Receivables | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 17,271 | 15,031 |
Carrying value of loans | 17,271 | 15,031 |
Home equity lines of credit | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 978 | 784 |
Total Loans Not Delinquent | 295,856 | 331,764 |
Carrying value of loans | 296,834 | 332,548 |
Home equity lines of credit | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 216 | 558 |
Home equity lines of credit | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 498 | |
Home equity lines of credit | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 264 | 226 |
Consumer: Credit cards | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 90 | 129 |
Total Loans Not Delinquent | 17,339 | 18,966 |
Carrying value of loans | 17,429 | 19,095 |
Consumer: Credit cards | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 76 | 82 |
Consumer: Credit cards | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 14 | 46 |
Consumer: Credit cards | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1 | |
Consumer: Overdrafts | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 278 | 230 |
Total Loans Not Delinquent | 616 | 872 |
Carrying value of loans | 894 | 1,102 |
Consumer: Overdrafts | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 272 | 223 |
Consumer: Overdrafts | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6 | 5 |
Consumer: Overdrafts | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 2 | |
Consumer: Automobile loan | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 64 | 28 |
Total Loans Not Delinquent | 63,489 | 63,447 |
Carrying value of loans | 63,553 | 63,475 |
Consumer: Automobile loan | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 39 | |
Consumer: Automobile loan | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 25 | 28 |
Other consumer | Traditional Banking | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 14 | 47 |
Total Loans Not Delinquent | 53,754 | 46,595 |
Carrying value of loans | 53,768 | 46,642 |
Other consumer | Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 7 | 27 |
Other consumer | Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 7 | 7 |
Other consumer | Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 13 | |
Warehouse lines of credit | Core Banking Activities | ||
Aging or recorded investments in loans | ||
Total Loans Not Delinquent | 725,337 | 468,695 |
Carrying value of loans | 725,337 | 468,695 |
Other TRS loans | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 75 | 10 |
Total Loans Not Delinquent | 636 | 13,734 |
Carrying value of loans | 711 | 13,744 |
Other TRS loans | Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 38 | 2 |
Other TRS loans | Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 24 | 4 |
Other TRS loans | Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 13 | 4 |
Republic Credit Solutions | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 6,727 | 7,077 |
Total Loans Not Delinquent | 90,063 | 81,667 |
Carrying value of loans | 96,790 | 88,744 |
Republic Credit Solutions | Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 5,322 | 5,734 |
Republic Credit Solutions | Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | 1,252 | 1,215 |
Republic Credit Solutions | Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total Loans Delinquent | $ 153 | $ 128 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - IMPAIRED LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans | ||
Loans with no allocated Allowance | $ 20,733 | $ 19,555 |
Loans with allocated Allowance | 21,947 | 21,880 |
Total recorded investment in impaired loans | 42,680 | 41,435 |
Amount of the allocated Allowance | 3,768 | 3,764 |
PCI loan | ||
Impaired loans | ||
Total recorded investment in impaired loans | 2,000 | 3,000 |
Impaired Loans | ||
Impaired loans | ||
Total recorded investment in impaired loans | $ 2,000 | $ 2,000 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - PORTFOLIO CLASS (Details) $ in Thousands | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 3,478 | $ 3,300 | ||||
Collectively evaluated for impairment | 42,215 | 40,911 | ||||
PCI loans with post acquisition impairment | 290 | 464 | ||||
Total ending allowance for loan losses | 45,983 | $ 57,961 | 44,675 | $ 45,047 | $ 52,341 | $ 42,769 |
Impaired loans individually evaluated, excluding PCI loans | 40,251 | 38,782 | ||||
Loans collectively evaluated for impairment | 4,367,965 | 4,106,765 | ||||
PCI loans with post acquisition impairment | 2,429 | 2,653 | ||||
PCI loans without post acquisition impairment | 24 | 27 | ||||
Carrying value of loans | $ 4,410,669 | $ 4,148,227 | ||||
Allowance to Total Loans | 1.04 | 1.08 | ||||
Core Banking Activities | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 3,464 | $ 3,282 | ||||
Collectively evaluated for impairment | 29,229 | 27,773 | ||||
PCI loans with post acquisition impairment | 290 | 464 | ||||
Total ending allowance for loan losses | 32,983 | 31,569 | 31,519 | 31,334 | 30,566 | 30,147 |
Impaired loans individually evaluated, excluding PCI loans | 40,220 | 38,738 | ||||
Loans collectively evaluated for impairment | 4,270,495 | 4,004,321 | ||||
PCI loans with post acquisition impairment | 2,429 | 2,653 | ||||
PCI loans without post acquisition impairment | 24 | 27 | ||||
Carrying value of loans | $ 4,313,168 | $ 4,045,739 | ||||
Allowance to Total Loans | 0.76 | 0.78 | ||||
Core Banking Activities | Warehouse lines of credit | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 1,814 | $ 1,172 | ||||
Total ending allowance for loan losses | 1,814 | 1,397 | 1,172 | 1,585 | 1,335 | 1,314 |
Loans collectively evaluated for impairment | 725,337 | 468,695 | ||||
Carrying value of loans | $ 725,337 | $ 468,695 | ||||
Allowance to Total Loans | 0.25 | 0.25 | ||||
Traditional Banking | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 3,464 | $ 3,282 | ||||
Collectively evaluated for impairment | 27,415 | 26,601 | ||||
PCI loans with post acquisition impairment | 290 | 464 | ||||
Total ending allowance for loan losses | 31,169 | 30,172 | 30,347 | 29,749 | 29,231 | 28,833 |
Impaired loans individually evaluated, excluding PCI loans | 40,220 | 38,738 | ||||
Loans collectively evaluated for impairment | 3,545,158 | 3,535,626 | ||||
PCI loans with post acquisition impairment | 2,429 | 2,653 | ||||
PCI loans without post acquisition impairment | 24 | 27 | ||||
Carrying value of loans | $ 3,587,831 | $ 3,577,044 | ||||
Allowance to Total Loans | 0.87 | 0.85 | ||||
Traditional Banking | Residential Real Estate - Owner Occupied | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 1,342 | $ 2,052 | ||||
Collectively evaluated for impairment | 3,392 | 3,365 | ||||
PCI loans with post acquisition impairment | 282 | 381 | ||||
Total ending allowance for loan losses | 5,016 | 5,579 | 5,798 | 6,035 | 5,988 | 6,182 |
Impaired loans individually evaluated, excluding PCI loans | 23,043 | 24,860 | ||||
Loans collectively evaluated for impairment | 883,240 | 880,500 | ||||
PCI loans with post acquisition impairment | 1,543 | 1,645 | ||||
Carrying value of loans | $ 907,826 | $ 907,005 | ||||
Allowance to Total Loans | 0.55 | 0.64 | ||||
Traditional Banking | Residential Real Estate - Owner Occupied - Correspondent | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 197 | $ 237 | ||||
Total ending allowance for loan losses | 197 | 222 | 237 | 263 | 278 | 292 |
Impaired loans individually evaluated, excluding PCI loans | 848 | 382 | ||||
Loans collectively evaluated for impairment | 78,095 | 94,445 | ||||
Carrying value of loans | $ 78,943 | $ 94,827 | ||||
Allowance to Total Loans | 0.25 | 0.25 | ||||
Traditional Banking | Residential Real Estate - Non Owner Occupied | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 3 | $ 4 | ||||
Collectively evaluated for impairment | 1,772 | 1,658 | ||||
Total ending allowance for loan losses | 1,775 | 1,720 | 1,662 | 1,552 | 1,461 | 1,396 |
Impaired loans individually evaluated, excluding PCI loans | 1,477 | 2,406 | ||||
Loans collectively evaluated for impairment | 257,689 | 240,440 | ||||
Carrying value of loans | $ 259,166 | $ 242,846 | ||||
Allowance to Total Loans | 0.68 | 0.68 | ||||
Traditional Banking | Commercial Real Estate | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 230 | $ 294 | ||||
Collectively evaluated for impairment | 10,328 | 9,727 | ||||
PCI loans with post acquisition impairment | 8 | 9 | ||||
Total ending allowance for loan losses | 10,566 | 10,235 | 10,030 | 9,815 | 9,460 | 9,043 |
Impaired loans individually evaluated, excluding PCI loans | 6,523 | 8,104 | ||||
Loans collectively evaluated for impairment | 1,246,473 | 1,239,915 | ||||
PCI loans with post acquisition impairment | 872 | 919 | ||||
PCI loans without post acquisition impairment | 2 | |||||
Carrying value of loans | $ 1,253,868 | $ 1,248,940 | ||||
Allowance to Total Loans | 0.84 | 0.80 | ||||
Traditional Banking | Construction & land development | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 4 | |||||
Collectively evaluated for impairment | $ 2,910 | 2,551 | ||||
Total ending allowance for loan losses | 2,910 | 2,443 | 2,555 | 2,825 | 2,720 | 2,364 |
Impaired loans individually evaluated, excluding PCI loans | 60 | 65 | ||||
Loans collectively evaluated for impairment | 190,924 | 175,113 | ||||
Carrying value of loans | $ 190,984 | $ 175,178 | ||||
Allowance to Total Loans | 1.52 | 1.46 | ||||
Traditional Banking | Commercial & industrial | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 1,204 | $ 130 | ||||
Collectively evaluated for impairment | 3,017 | 2,743 | ||||
Total ending allowance for loan losses | 4,221 | 3,235 | 2,873 | 2,318 | 2,247 | 2,198 |
Impaired loans individually evaluated, excluding PCI loans | 5,464 | 1,020 | ||||
Loans collectively evaluated for impairment | 441,807 | 429,310 | ||||
PCI loans without post acquisition impairment | 24 | 25 | ||||
Carrying value of loans | $ 447,295 | $ 430,355 | ||||
Allowance to Total Loans | 0.94 | 0.67 | ||||
Traditional Banking | Lease Financing Receivables | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 181 | $ 158 | ||||
Total ending allowance for loan losses | 181 | 150 | 158 | 160 | 165 | 174 |
Loans collectively evaluated for impairment | 17,271 | 15,031 | ||||
Carrying value of loans | $ 17,271 | $ 15,031 | ||||
Allowance to Total Loans | 1.05 | 1.05 | ||||
Traditional Banking | Home equity lines of credit | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 241 | $ 286 | ||||
Collectively evaluated for impairment | 2,883 | 3,117 | ||||
PCI loans with post acquisition impairment | 74 | |||||
Total ending allowance for loan losses | 3,124 | 3,337 | 3,477 | 3,658 | 3,669 | 3,754 |
Impaired loans individually evaluated, excluding PCI loans | 2,339 | 1,361 | ||||
Loans collectively evaluated for impairment | 294,484 | 331,101 | ||||
PCI loans with post acquisition impairment | 11 | 86 | ||||
Carrying value of loans | $ 296,834 | $ 332,548 | ||||
Allowance to Total Loans | 1.05 | 1.05 | ||||
Traditional Banking | Consumer: Credit cards | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 1,028 | $ 1,140 | ||||
Total ending allowance for loan losses | 1,028 | 1,079 | 1,140 | 805 | 756 | 607 |
Loans collectively evaluated for impairment | 17,429 | 19,095 | ||||
Carrying value of loans | $ 17,429 | $ 19,095 | ||||
Allowance to Total Loans | 5.90 | 5.97 | ||||
Traditional Banking | Consumer: Overdrafts | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 894 | $ 1,102 | ||||
Total ending allowance for loan losses | 894 | 892 | 1,102 | 878 | 791 | 974 |
Loans collectively evaluated for impairment | 894 | 1,102 | ||||
Carrying value of loans | $ 894 | $ 1,102 | ||||
Allowance to Total Loans | 100 | 100 | ||||
Traditional Banking | Consumer: Automobile loan | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 80 | $ 91 | ||||
Collectively evaluated for impairment | 628 | 633 | ||||
Total ending allowance for loan losses | 708 | 768 | 724 | 664 | 706 | 687 |
Impaired loans individually evaluated, excluding PCI loans | 80 | 91 | ||||
Loans collectively evaluated for impairment | 63,473 | 63,384 | ||||
Carrying value of loans | $ 63,553 | $ 63,475 | ||||
Allowance to Total Loans | 1.11 | 1.14 | ||||
Traditional Banking | Other consumer | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 364 | $ 421 | ||||
Collectively evaluated for impairment | 185 | 170 | ||||
Total ending allowance for loan losses | 549 | 512 | 591 | 776 | 990 | 1,162 |
Impaired loans individually evaluated, excluding PCI loans | 386 | 449 | ||||
Loans collectively evaluated for impairment | 53,379 | 46,190 | ||||
PCI loans with post acquisition impairment | 3 | 3 | ||||
Carrying value of loans | $ 53,768 | $ 46,642 | ||||
Allowance to Total Loans | 1.02 | 1.27 | ||||
Republic Processing Group | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 14 | $ 18 | ||||
Collectively evaluated for impairment | 12,986 | 13,138 | ||||
Total ending allowance for loan losses | 13,000 | 26,392 | 13,156 | 13,713 | 21,775 | 12,622 |
Impaired loans individually evaluated, excluding PCI loans | 31 | 44 | ||||
Loans collectively evaluated for impairment | 97,470 | 102,444 | ||||
Carrying value of loans | $ 97,501 | $ 102,488 | ||||
Allowance to Total Loans | 13.33 | 12.84 | ||||
Republic Processing Group | Easy Advances | ||||||
Allowance for loans losses | ||||||
Total ending allowance for loan losses | 13,381 | 9,572 | ||||
Republic Processing Group | Other TRS loans | ||||||
Allowance for loans losses | ||||||
Collectively evaluated for impairment | $ 232 | $ 107 | ||||
Total ending allowance for loan losses | 232 | 149 | 107 | 67 | 125 | 12 |
Loans collectively evaluated for impairment | 711 | 13,744 | ||||
Carrying value of loans | $ 711 | $ 13,744 | ||||
Allowance to Total Loans | 32.63 | 0.78 | ||||
Republic Processing Group | Republic Credit Solutions | ||||||
Allowance for loans losses | ||||||
Individually evaluated for impairment, excluding PCI loans | $ 14 | $ 18 | ||||
Collectively evaluated for impairment | 12,754 | 13,031 | ||||
Total ending allowance for loan losses | 12,768 | $ 12,862 | 13,049 | $ 13,646 | $ 12,078 | $ 12,610 |
Impaired loans individually evaluated, excluding PCI loans | 31 | 44 | ||||
Loans collectively evaluated for impairment | 96,759 | 88,700 | ||||
Carrying value of loans | $ 96,790 | $ 88,744 | ||||
Allowance to Total Loans | 13.19 | 14.70 |
LOANS AND ALLOWANCE FOR LOAN_13
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - LOANS EVALUATED FOR IMPAIRMENT BY CLASS OF LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Impaired loans with no allocated Allowance: | |||||
Recorded Investment | $ 20,733 | $ 20,733 | $ 19,555 | ||
Impaired loans with allocated Allowance: | |||||
Recorded Investment | 21,947 | 21,947 | 21,880 | ||
Allowance for Loan Losses Allocated | 3,768 | 3,768 | 3,764 | ||
Total impaired loans | |||||
Unpaid Principal Balance | 44,953 | 44,953 | 44,455 | ||
Recorded Investment | 42,680 | 42,680 | 41,435 | ||
Allowance for Loan Losses Allocated | 3,768 | 3,768 | 3,764 | ||
Average Recorded Investment | 41,345 | $ 47,905 | 41,370 | $ 47,138 | |
Interest Income Recognized | 299 | 354 | 597 | 697 | |
Residential Real Estate - Owner Occupied | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 13,213 | 13,213 | 11,676 | ||
Recorded Investment | 12,452 | 12,452 | 10,703 | ||
Average Recorded Investment | 10,913 | 11,069 | 10,843 | 10,976 | |
Interest Income Recognized | 70 | 67 | 139 | 133 | |
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 12,161 | 12,161 | 16,215 | ||
Recorded Investment | 12,134 | 12,134 | 15,802 | ||
Allowance for Loan Losses Allocated | 1,624 | 1,624 | 2,433 | ||
Average Recorded Investment | 14,464 | 18,481 | 14,910 | 18,538 | |
Interest Income Recognized | 121 | 153 | 240 | 299 | |
Total impaired loans | |||||
Allowance for Loan Losses Allocated | 1,624 | 1,624 | 2,433 | ||
Residential Real Estate - Owner Occupied - Correspondent | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 848 | 848 | 382 | ||
Recorded Investment | 848 | 848 | 382 | ||
Average Recorded Investment | 855 | 386 | 697 | 257 | |
Residential Real Estate - Non Owner Occupied | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 1,113 | 1,113 | 2,729 | ||
Recorded Investment | 1,046 | 1,046 | 2,350 | ||
Average Recorded Investment | 1,424 | 2,699 | 1,733 | 2,367 | |
Interest Income Recognized | 17 | 22 | 34 | 45 | |
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 622 | 622 | 78 | ||
Recorded Investment | 431 | 431 | 56 | ||
Allowance for Loan Losses Allocated | 3 | 3 | 4 | ||
Average Recorded Investment | 216 | 195 | 162 | 249 | |
Interest Income Recognized | 41 | ||||
Total impaired loans | |||||
Allowance for Loan Losses Allocated | 3 | 3 | 4 | ||
Commercial Real Estate | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 4,866 | 4,866 | 5,688 | ||
Recorded Investment | 3,792 | 3,792 | 4,607 | ||
Average Recorded Investment | 3,573 | 5,119 | 3,917 | 4,889 | |
Interest Income Recognized | 23 | 24 | 47 | 45 | |
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 3,603 | 3,603 | 4,416 | ||
Recorded Investment | 3,603 | 3,603 | 4,416 | ||
Allowance for Loan Losses Allocated | 238 | 238 | 303 | ||
Average Recorded Investment | 3,951 | 6,368 | 4,106 | 6,287 | |
Interest Income Recognized | 65 | 83 | 129 | ||
Total impaired loans | |||||
Allowance for Loan Losses Allocated | 238 | 238 | 303 | ||
Construction & land development | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 60 | 60 | |||
Recorded Investment | 60 | 60 | |||
Average Recorded Investment | 30 | 238 | 20 | 356 | |
Interest Income Recognized | 1 | 1 | |||
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 65 | ||||
Recorded Investment | 65 | ||||
Allowance for Loan Losses Allocated | 4 | ||||
Average Recorded Investment | 32 | 132 | 43 | 135 | |
Interest Income Recognized | 1 | 2 | |||
Total impaired loans | |||||
Allowance for Loan Losses Allocated | 4 | ||||
Commercial & industrial | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 720 | 720 | 712 | ||
Recorded Investment | 612 | 612 | 604 | ||
Average Recorded Investment | 622 | 694 | 616 | 469 | |
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 4,852 | 4,852 | 416 | ||
Recorded Investment | 4,852 | 4,852 | 416 | ||
Allowance for Loan Losses Allocated | 1,204 | 1,204 | 130 | ||
Average Recorded Investment | 2,662 | 98 | 1,913 | 161 | |
Interest Income Recognized | 7 | 1 | 15 | 1 | |
Total impaired loans | |||||
Allowance for Loan Losses Allocated | 1,204 | 1,204 | 130 | ||
Home equity lines of credit | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 1,941 | 1,941 | 919 | ||
Recorded Investment | 1,898 | 1,898 | 876 | ||
Average Recorded Investment | 1,591 | 704 | 1,352 | 796 | |
Interest Income Recognized | 12 | 4 | 23 | 7 | |
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 452 | 452 | 572 | ||
Recorded Investment | 452 | 452 | 571 | ||
Allowance for Loan Losses Allocated | 241 | 241 | 360 | ||
Average Recorded Investment | 480 | 992 | 510 | 909 | |
Interest Income Recognized | 2 | 10 | 4 | 19 | |
Total impaired loans | |||||
Allowance for Loan Losses Allocated | 241 | 241 | 360 | ||
Consumer | |||||
Impaired loans with no allocated Allowance: | |||||
Unpaid Principal Balance | 25 | 25 | 33 | ||
Recorded Investment | 25 | 25 | 33 | ||
Average Recorded Investment | 27 | 62 | 28 | 49 | |
Interest Income Recognized | 1 | 1 | 1 | 3 | |
Impaired loans with allocated Allowance: | |||||
Unpaid Principal Balance | 477 | 477 | 554 | ||
Recorded Investment | 475 | 475 | 554 | ||
Allowance for Loan Losses Allocated | 458 | 458 | 530 | ||
Average Recorded Investment | 505 | 668 | 520 | 700 | |
Interest Income Recognized | 4 | $ 6 | 10 | $ 14 | |
Total impaired loans | |||||
Allowance for Loan Losses Allocated | $ 458 | $ 458 | $ 530 |
LOANS AND ALLOWANCE FOR LOAN_14
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - TDR ACCRUAL STATUS (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 437 | 495 |
Recorded Investment | $ | $ 32,911 | $ 32,863 |
Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 206 | 216 |
Recorded Investment | $ | $ 21,178 | $ 23,610 |
Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 11 | 17 |
Recorded Investment | $ | $ 5,961 | $ 7,774 |
Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 60 | $ 65 |
Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 9 | 5 |
Recorded Investment | $ | $ 5,330 | $ 979 |
Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 210 | 256 |
Recorded Investment | $ | $ 382 | $ 435 |
Loans on nonaccrual status | ||
Troubled Debt Restructurings disclosures | ||
Minimum period for which TDRs continue to be reported as non-performing loans | 6 months | |
Number of Loans | loan | 62 | 65 |
Recorded Investment | $ | $ 11,404 | $ 8,152 |
Loans on nonaccrual status | Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 54 | 60 |
Recorded Investment | $ | $ 4,777 | $ 6,378 |
Loans on nonaccrual status | Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | 3 |
Recorded Investment | $ | $ 1,714 | $ 1,203 |
Loans on nonaccrual status | Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 5 | 2 |
Recorded Investment | $ | $ 4,913 | $ 571 |
Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 375 | 430 |
Recorded Investment | $ | $ 21,507 | $ 24,711 |
Accrual Loans | Residential Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 152 | 156 |
Recorded Investment | $ | $ 16,401 | $ 17,232 |
Accrual Loans | Commercial Real Estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 8 | 14 |
Recorded Investment | $ | $ 4,247 | $ 6,571 |
Accrual Loans | Construction & land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | 1 |
Recorded Investment | $ | $ 60 | $ 65 |
Accrual Loans | Commercial & industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 4 | 3 |
Recorded Investment | $ | $ 417 | $ 408 |
Accrual Loans | Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 210 | 256 |
Recorded Investment | $ | $ 382 | $ 435 |
LOANS AND ALLOWANCE FOR LOAN_15
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - TDR MODIFICATIONS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Dec. 31, 2018USD ($)loan | |
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 437 | 495 | |||
Recorded Investment | $ 32,911,000 | $ 32,863,000 | |||
Commitments to lend any additional material amounts to existing TDR relationships | $ 0 | $ 0 | $ 0 | ||
Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 206 | 216 | |||
Recorded Investment | $ 21,178,000 | $ 23,610,000 | |||
Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 945,000 | $ 970,000 | |||
Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 143 | 157 | |||
Recorded Investment | $ 16,124,000 | $ 17,870,000 | |||
Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 12 | 15 | |||
Recorded Investment | $ 1,483,000 | $ 3,042,000 | |||
Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 50 | 43 | |||
Recorded Investment | $ 2,626,000 | $ 1,728,000 | |||
Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 21 | 23 | |||
Recorded Investment | $ 11,351,000 | $ 8,818,000 | |||
Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 2 | |||
Recorded Investment | $ 719,000 | $ 752,000 | |||
Commercial Real Estate and Commercial Construction | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 8 | |||
Recorded Investment | $ 1,352,000 | $ 2,962,000 | |||
Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 13 | 12 | |||
Recorded Investment | $ 4,854,000 | $ 5,076,000 | |||
Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | |||
Recorded Investment | $ 4,426,000 | $ 28,000 | |||
Consumer and other | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 210 | 256 | |||
Recorded Investment | $ 382,000 | $ 435,000 | |||
Consumer and other | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 16,000 | ||||
Consumer and other | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 210 | 255 | |||
Recorded Investment | $ 382,000 | $ 419,000 | |||
Consumer | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 210 | 256 | |||
Recorded Investment | $ 382,000 | $ 435,000 | |||
Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 11 | 19 | 20 | 24 | |
Recorded Investment | $ 5,391,000 | $ 3,355,000 | $ 6,136,000 | $ 5,215,000 | |
Modified During The Period | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 4,426,000 | ||||
Modified During The Period | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | 14 | 15 | 17 | |
Recorded Investment | $ 965,000 | $ 2,378,000 | $ 1,118,000 | $ 4,169,000 | |
Modified During The Period | Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 1,204,000 | ||||
Modified During The Period | Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 389,000 | $ 474,000 | |||
Modified During The Period | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 1 | 4 | ||
Recorded Investment | $ 1,670,000 | $ 6,000 | $ 2,172,000 | ||
Modified During The Period | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | 10 | 14 | 10 | |
Recorded Investment | $ 965,000 | $ 319,000 | $ 1,112,000 | $ 319,000 | |
Modified During The Period | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 4 | 5 | 5 | |
Recorded Investment | $ 4,426,000 | $ 934,000 | $ 5,018,000 | $ 945,000 | |
Modified During The Period | Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 566,000 | ||||
Modified During The Period | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 2 | 5 | ||
Recorded Investment | $ 934,000 | $ 26,000 | $ 945,000 | ||
Modified During The Period | Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 4,426,000 | ||||
Modified During The Period | Consumer loans | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 43,000 | $ 101,000 | |||
Modified During The Period | Consumer loans | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 58,000 | ||||
Modified During The Period | Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 43,000 | $ 43,000 | |||
Performing Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 418 | 469 | |||
Recorded Investment | $ 25,429,000 | $ 28,788,000 | |||
Percentage of troubled debt restructurings performing as per terms of modifications | 77.00% | 77.00% | 88.00% | ||
Specific reserve allocations made to customers | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | ||
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms | 15.00% | 90.00% | 24.00% | 94.00% | |
Specific reserve allocations made to customers whose loan terms were modified in TDRs during period | $ 980,000 | $ 422,000 | $ 1,000,000 | $ 539,000 | |
Performing Financing Receivable | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 190 | 191 | |||
Recorded Investment | $ 18,719,000 | $ 19,563,000 | |||
Performing Financing Receivable | Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 138 | 145 | |||
Recorded Investment | $ 15,535,000 | $ 16,892,000 | |||
Performing Financing Receivable | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 9 | 11 | |||
Recorded Investment | $ 873,000 | $ 1,171,000 | |||
Performing Financing Receivable | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 43 | 35 | |||
Recorded Investment | $ 2,311,000 | $ 1,500,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 18 | 22 | |||
Recorded Investment | $ 6,328,000 | $ 8,790,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 2 | |||
Recorded Investment | $ 719,000 | $ 752,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 8 | |||
Recorded Investment | $ 1,352,000 | $ 2,962,000 | |||
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 12 | 12 | |||
Recorded Investment | $ 4,257,000 | $ 5,076,000 | |||
Performing Financing Receivable | Consumer and other | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 210 | 256 | |||
Recorded Investment | $ 382,000 | $ 435,000 | |||
Performing Financing Receivable | Consumer and other | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 16,000 | ||||
Performing Financing Receivable | Consumer and other | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 210 | 255 | |||
Recorded Investment | $ 382,000 | $ 419,000 | |||
Performing Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 7 | 15 | 15 | 20 | |
Recorded Investment | $ 804,000 | $ 3,022,000 | $ 1,499,000 | $ 4,881,000 | |
Performing Financing Receivable | Modified During The Period | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 7 | 12 | 12 | 15 | |
Recorded Investment | $ 804,000 | $ 2,163,000 | $ 907,000 | $ 3,953,000 | |
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 1,204,000 | ||||
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 2 | |||
Recorded Investment | $ 389,000 | $ 474,000 | |||
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | 3 | ||
Recorded Investment | $ 1,501,000 | $ 6,000 | $ 2,002,000 | ||
Performing Financing Receivable | Modified During The Period | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 7 | 9 | 11 | 9 | |
Recorded Investment | $ 804,000 | $ 273,000 | $ 901,000 | $ 273,000 | |
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 3 | 4 | ||
Recorded Investment | $ 859,000 | $ 592,000 | $ 870,000 | ||
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 566,000 | ||||
Performing Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 2 | 4 | ||
Recorded Investment | $ 859,000 | $ 26,000 | $ 870,000 | ||
Performing Financing Receivable | Modified During The Period | Consumer loans | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 58,000 | ||||
Performing Financing Receivable | Modified During The Period | Consumer loans | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 58,000 | ||||
Nonperforming Financing Receivable | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 19 | 26 | |||
Recorded Investment | $ 7,482,000 | $ 4,075,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 16 | 25 | |||
Recorded Investment | $ 2,459,000 | $ 4,047,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Interest only payments | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 945,000 | $ 970,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Rate reduction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 5 | 12 | |||
Recorded Investment | $ 589,000 | $ 978,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 4 | |||
Recorded Investment | $ 610,000 | $ 1,871,000 | |||
Nonperforming Financing Receivable | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 7 | 8 | |||
Recorded Investment | $ 315,000 | $ 228,000 | |||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 3 | 1 | |||
Recorded Investment | $ 5,023,000 | $ 28,000 | |||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | ||||
Recorded Investment | $ 597,000 | ||||
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | |||
Recorded Investment | $ 4,426,000 | $ 28,000 | |||
Nonperforming Financing Receivable | Modified During The Period | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 4 | 4 | 5 | 4 | |
Recorded Investment | $ 4,587,000 | $ 333,000 | $ 4,637,000 | $ 334,000 | |
Nonperforming Financing Receivable | Modified During The Period | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 4,426,000 | ||||
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 2 | 3 | 2 | |
Recorded Investment | $ 161,000 | $ 215,000 | $ 211,000 | $ 216,000 | |
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 169,000 | $ 170,000 | |||
Nonperforming Financing Receivable | Modified During The Period | Residential Real Estate | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | 3 | 1 | |
Recorded Investment | $ 161,000 | $ 46,000 | $ 211,000 | $ 46,000 | |
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | 1 | 2 | 1 | |
Recorded Investment | $ 4,426,000 | $ 75,000 | $ 4,426,000 | $ 75,000 | |
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Principal deferral | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 75,000 | $ 75,000 | |||
Nonperforming Financing Receivable | Modified During The Period | Commercial Real Estate and Commercial Construction | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 2 | ||||
Recorded Investment | $ 4,426,000 | ||||
Nonperforming Financing Receivable | Modified During The Period | Consumer loans | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 43,000 | $ 43,000 | |||
Nonperforming Financing Receivable | Modified During The Period | Consumer loans | Legal modifications | |||||
Troubled Debt Restructurings disclosures | |||||
Number of Loans | loan | 1 | 1 | |||
Recorded Investment | $ 43,000 | $ 43,000 |
LOANS AND ALLOWANCE FOR LOAN_16
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - TDR MODIFIED CLASS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | |
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | 5 | 4 | 7 | 4 |
Recorded Investment with payment default | $ 4,637 | $ 333 | $ 5,209 | $ 333 |
Residential Real Estate - Owner Occupied | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 3 | 2 | 3 | 2 |
Recorded Investment with payment default | $ 211 | $ 215 | $ 211 | $ 215 |
Commercial Real Estate | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | |||
Recorded Investment with payment default | $ 566 | |||
Commercial & industrial | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 2 | 1 | 2 | 1 |
Recorded Investment with payment default | $ 4,426 | $ 75 | $ 4,426 | $ 75 |
Home equity lines of credit | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | |||
Recorded Investment with payment default | $ 6 | |||
Consumer | ||||
Troubled Debt Restructurings disclosures | ||||
Number of Loans with payment default | loan | 1 | 1 | ||
Recorded Investment with payment default | $ 43 | $ 43 |
LOANS AND ALLOWANCE FOR LOAN_17
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,095 | $ 160 |
Residential Real Estate - Owner Occupied | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,095 | $ 160 |
LOANS AND ALLOWANCE FOR LOAN_18
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | $ 4,410,669 | $ 4,148,227 |
Reverse Mortgages Held For Sale Fair Value Disclosure | 12,457 | |
Residential Real Estate - Owner Occupied | Foreclosure Proceedings In Process | ||
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable Gross Carrying Amount | 10,081 | $ 3,293 |
Reverse Mortgages Held For Sale Fair Value Disclosure | $ 7,000 |
LOANS AND ALLOWANCE FOR LOAN_19
LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES - EASY ADVANCES (Details) - Tax Refund Solutions - Easy Advances - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2019 | Feb. 28, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Period Easy Advance tax credit product offered | 2 months | 2 months | |||||
Easy Advances originated | $ 388,970 | $ 430,210 | |||||
Net Charge (Credit) to the Provision for Easy Advances | $ 39 | $ (881) | $ 13,420 | $ 12,396 | |||
Provision to total Easy Advances originated | 3.45% | 2.88% | |||||
Easy Advances net charged offs | $ 13,420 | $ 8,691 | $ 13,420 | $ 12,396 | |||
Percentage of Easy Advances net charge-offs to Total Easy Advances Originated | 3.45% | 2.88% | |||||
Duration of unpaid EA's write off | 111 days | 111 days | 60 days |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deposit Liabilities | ||
Total interest-bearing deposits | $ 2,557,127 | $ 2,452,176 |
Total non interest-bearing deposits | 1,003,793 | 1,003,969 |
Deposits held for assumption in connection with sale of banking centers | 152,954 | |
Total deposits | 3,713,874 | 3,456,145 |
Core Banking Activities | ||
Deposit Liabilities | ||
Demand | 906,179 | 937,402 |
Money market accounts | 727,718 | 717,954 |
Savings | 177,421 | 187,868 |
Individual retirement accounts | 50,970 | 53,524 |
Time deposits, $250 and over | 93,713 | 84,104 |
Other certificates of deposit | 246,392 | 239,324 |
Reciprocal money market and time deposits | 192,792 | 217,153 |
Brokered deposits | 159,615 | 9,394 |
Total interest-bearing deposits | 2,554,800 | 2,446,723 |
Total non interest-bearing deposits | 937,487 | 971,422 |
Total deposits | 3,492,287 | 3,418,145 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 2,327 | 5,453 |
Total interest-bearing deposits | 2,327 | 5,453 |
Brokered prepaid cards deposits | 10,854 | 4,350 |
Other noninterest-bearing deposits | 55,452 | 28,197 |
Total non interest-bearing deposits | 66,306 | 32,547 |
Total deposits | $ 68,633 | $ 38,000 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Securities sold under agreements to repurchase | |||||
Outstanding balance at end of period | $ 226,002 | $ 226,002 | $ 182,990 | ||
Securities sold under agreements to repurchase | |||||
Securities sold under agreements to repurchase | |||||
Securities pledged more than repurchase agreements (as a percent) | 2.00% | 2.00% | |||
Outstanding balance at end of period | $ 226,002 | $ 226,002 | $ 182,990 | ||
Weighted average interest rate at end of period (as a percent) | 0.50% | 0.50% | 0.83% | ||
Fair Value of securities pledged | $ 252,658 | $ 252,658 | $ 205,647 | ||
Average outstanding balance during the period | $ 220,189 | $ 178,063 | $ 225,864 | $ 217,532 | |
Average interest rate during the period (as a percent) | 0.60% | 0.50% | 0.67% | 0.40% | |
Maximum outstanding at any month end during the period | $ 226,002 | $ 175,291 | $ 226,002 | $ 215,281 | |
Securities sold under agreements to repurchase | U.S. Treasury securities and U.S. Government agencies | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | 109,716 | 109,716 | 110,854 | ||
Securities sold under agreements to repurchase | Mortgage backed securities - residential | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | 83,893 | 83,893 | 84,657 | ||
Securities sold under agreements to repurchase | Collateralized mortgage obligations | |||||
Securities sold under agreements to repurchase | |||||
Fair Value of securities pledged | $ 59,049 | $ 59,049 | $ 10,136 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) | Jan. 01, 2019USD ($)contractitem | Jun. 30, 2019USD ($)leaseitem |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Practical expedient - package | true | |
Practical expedient - hindsight | true | |
Number of separate and distinct operating lease contracts to lease the land and/or buildings | contract | 50 | |
Number of offices where separate and distinct operating lease contracts to lease the land and/or buildings is held | item | 38 | |
Number of operating leases contracted with a related party of the Company | contract | 15 | |
Total operating lease liabilities | $ 38,852,000 | |
Total right-of-use assets | $ 37,450,000 | |
Number of operating leases considered variable | item | 25 | |
Number of lease contracts which had not commenced | lease | 1 | |
Number of banking centers where lease had not commenced | item | 1 | |
Operating lease liabilities | $ 493,000 | |
Offsetting right-of-use assets | $ 493,000 | |
ASU 2016-02 | Restatement | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Total operating lease liabilities | $ 42,000,000 | |
Total right-of-use assets | $ 40,000,000 | |
Minimum | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Expected remaining lease terms | 9 months | |
Discounts rates | 2.94% | |
Maximum | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Expected remaining lease terms | 18 years 6 months 4 days | |
Discounts rates | 3.70% | |
Weighted Average | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Expected remaining lease terms | 8 years 7 months 6 days | |
Discounts rates | 3.48% |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Operating lease expense: | ||
Total operating lease expense | $ 1,773 | $ 3,538 |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,794 | 3,577 |
Short-term lease payments not included in the measurement of lease liabilities | $ 12 | $ 26 |
Weighted average remaining term in years | 8 years 3 months 18 days | 8 years 3 months 18 days |
Weighted average discount rate | 3.48% | 3.48% |
Related Party | ||
Operating lease expense: | ||
Variable lease expense | $ 1,156 | $ 2,314 |
Fixed lease expense | 10 | 18 |
Third Party | ||
Operating lease expense: | ||
Variable lease expense | 211 | 435 |
Fixed lease expense | 384 | 745 |
Short-term lease expense | $ 12 | $ 26 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating lease liabilities | |
Remainder of 2019 | $ 3,588 |
2020 | 7,098 |
2021 | 6,465 |
2022 | 5,198 |
2023 | 4,673 |
Thereafter | 18,482 |
Total undiscounted cash flows | 45,504 |
Discount applied to cash flows | (6,652) |
Total operating lease liabilities | 38,852 |
Related Party | |
Operating lease liabilities | |
Remainder of 2019 | 2,314 |
2020 | 4,585 |
2021 | 4,171 |
2022 | 3,310 |
2023 | 3,310 |
Thereafter | 15,910 |
Total undiscounted cash flows | 33,600 |
Discount applied to cash flows | (5,029) |
Total operating lease liabilities | 28,571 |
Third Party | |
Operating lease liabilities | |
Remainder of 2019 | 1,274 |
2020 | 2,513 |
2021 | 2,294 |
2022 | 1,888 |
2023 | 1,363 |
Thereafter | 2,572 |
Total undiscounted cash flows | 11,904 |
Discount applied to cash flows | (1,623) |
Total operating lease liabilities | $ 10,281 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
FHLB advances | ||
Total FHLB advances | $ 915,000 | $ 810,000 |
Additional collateralized advances available | 502,000 | 254,000 |
Overnight advance | ||
FHLB advances | ||
Total FHLB advances | 670,000 | 510,000 |
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% | ||
FHLB advances | ||
Total FHLB advances | $ 10,000 | $ 10,000 |
Variable interest rate advance indexed to 3-Month LIBOR plus 0.14% | London Interbank Offered Rate (LIBOR) | ||
FHLB advances | ||
Applicable margin (as a percent) | 0.14% | 0.14% |
Fixed interest rate advances | ||
FHLB advances | ||
Total FHLB advances | $ 235,000 | $ 290,000 |
Various other unsecured lines of credit | ||
FHLB advances | ||
Unsecured lines of credit | $ 125,000 | $ 125,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
FEDERAL HOME LOAN BANK ADVANCES | ||
Remainder of 2019 (Overnight) | $ 670,000 | |
2019 (Term) | 55,000 | |
2020 | 120,000 | |
2021 | 30,000 | |
2022 | 20,000 | |
2023 | 20,000 | |
Total | $ 915,000 | $ 810,000 |
Weighted Average Rate | ||
Remainder of 2019 (Overnight) | 2.46% | |
2019 (Term) | 1.97% | |
2020 | 1.81% | |
2021 | 1.93% | |
2022 | 2.12% | |
2023 | 2.56% | |
Total | 2.32% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - Federal Home Loan Bank overnight advances - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
FHLB advances | ||||
Average outstanding balance during the period | $ 448,077 | $ 226,264 | $ 331,768 | $ 185,801 |
Average interest rate during the period (as percent) | 2.50% | 1.88% | 2.49% | 1.70% |
Maximum outstanding at any month end during the period | $ 785,000 | $ 500,000 | $ 785,000 | $ 560,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
First lien, single family residential real estate | ||
Real estate loans pledged to collateralize advances and letters of credit with the FHLB | ||
Real estate loans pledged to collateralize advances and letters of credit with FHLB | $ 1,161,088 | $ 1,129,588 |
Home equity lines of credit | ||
Real estate loans pledged to collateralize advances and letters of credit with the FHLB | ||
Real estate loans pledged to collateralize advances and letters of credit with FHLB | $ 297,862 | $ 311,419 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and letters of credit | ||
Loan commitment, line credit | $ 1,557,640 | $ 1,709,869 |
Unused warehouse lines of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 393,663 | 591,305 |
Unused home equity lines of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 383,772 | 377,277 |
Unused loan commitments - other | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 758,439 | 720,645 |
Standby letters of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | 11,766 | 10,642 |
FHLB letters of credit | ||
Commitments and letters of credit | ||
Loan commitment, line credit | $ 10,000 | $ 10,000 |
FAIR VALUE - POLICIES (Details)
FAIR VALUE - POLICIES (Details) - item | 27 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Republic Credit Solutions | Installment loan | |||
Assets and Liabilities Measured on Recurring Basis | |||
Percentage of loan receivable held for sale (as a percent) | 100.00% | ||
Consumer loans held for sale period | 21 days | ||
Mortgage Servicing Rights | |||
Assets and Liabilities Measured on Recurring Basis | |||
Number of tranches carried at fair value | 0 | 0 |
FAIR VALUE - RECURRING BASIS (D
FAIR VALUE - RECURRING BASIS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Financial assets: | ||||||||
Available-for-sale debt securities | $ 380,356 | $ 380,356 | $ 475,738 | |||||
Mortgage loans held for sale, at fair value | 13,883 | $ 12,653 | 13,883 | $ 12,653 | $ 11,313 | 8,971 | $ 4,496 | $ 5,761 |
Consumer loans held for investment | 1,369 | 1,369 | 1,922 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 3,254 | 3,254 | 2,806 | |||||
U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 139,335 | 139,335 | 216,873 | |||||
Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 3,615 | 3,615 | 3,712 | |||||
Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 154,192 | 154,192 | 169,209 | |||||
Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 69,379 | 69,379 | 72,811 | |||||
Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 787 | 787 | 410 | |||||
Community Reinvestment Act mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,467 | 2,467 | 2,396 | |||||
Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 9,835 | 9,835 | 9,058 | |||||
Trust preferred security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 4,000 | 4,000 | 4,075 | |||||
Recurring basis | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 380,356 | 380,356 | 475,738 | |||||
Mortgage loans held for sale, at fair value | 13,883 | 13,883 | 8,971 | |||||
Consumer loans held for investment | 1,369 | 1,369 | 1,922 | |||||
Rate lock loan commitments | 1,222 | 1,222 | 356 | |||||
Interest rate swap agreements | 4,645 | 4,645 | 1,264 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 3,254 | 3,254 | 2,806 | |||||
Financial Liabilities: | ||||||||
Mandatory forward contracts | 467 | 467 | 262 | |||||
Interest rate swap agreements | 4,778 | 4,778 | 1,149 | |||||
Transfers between Level 1, 2 or 3 | 0 | $ 0 | 0 | $ 0 | ||||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 139,335 | 139,335 | 216,873 | |||||
Recurring basis | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 3,615 | 3,615 | 3,712 | |||||
Recurring basis | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 154,192 | 154,192 | 169,209 | |||||
Recurring basis | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 69,379 | 69,379 | 72,811 | |||||
Recurring basis | Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 787 | 787 | 410 | |||||
Recurring basis | Community Reinvestment Act mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,467 | 2,467 | 2,396 | |||||
Recurring basis | Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 9,835 | 9,835 | 9,058 | |||||
Recurring basis | Trust preferred security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 4,000 | 4,000 | 4,075 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,467 | 2,467 | 2,396 | |||||
Recurring basis | Fair Value, Inputs, Level 1 | Community Reinvestment Act mutual fund | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 2,467 | 2,467 | 2,396 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 372,741 | 372,741 | 467,951 | |||||
Mortgage loans held for sale, at fair value | 13,883 | 13,883 | 8,971 | |||||
Rate lock loan commitments | 1,222 | 1,222 | 356 | |||||
Interest rate swap agreements | 4,645 | 4,645 | 1,264 | |||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 787 | 787 | 410 | |||||
Financial Liabilities: | ||||||||
Mandatory forward contracts | 467 | 467 | 262 | |||||
Interest rate swap agreements | 4,778 | 4,778 | 1,149 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 139,335 | 139,335 | 216,873 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 154,192 | 154,192 | 169,209 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 69,379 | 69,379 | 72,811 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Freddie Mac preferred stock | ||||||||
Equity securities with readily determinable fair value: | ||||||||
Equity securities with readily determinable fair value | 787 | 787 | 410 | |||||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 9,835 | 9,835 | 9,058 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 7,615 | 7,615 | 7,787 | |||||
Consumer loans held for investment | 1,369 | 1,369 | 1,922 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | 3,615 | 3,615 | 3,712 | |||||
Recurring basis | Fair Value, Inputs, Level 3 | Trust preferred security | ||||||||
Financial assets: | ||||||||
Available-for-sale debt securities | $ 4,000 | $ 4,000 | $ 4,075 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Private label mortgage backed security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | $ 3,660 | $ 4,120 | $ 3,712 | $ 4,449 |
Net change in unrealized gain | (2) | (15) | (34) | (17) |
Recovery of actual losses previously recorded | 38 | 37 | 75 | 75 |
Principal paydowns | (81) | (216) | (138) | (581) |
Balance, end of period | 3,615 | 3,926 | 3,615 | 3,926 |
Trust preferred security | ||||
Assets measured on recurring basis, unobservable input reconciliation | ||||
Balance, beginning of period | 4,100 | 3,900 | 4,075 | 3,600 |
Discount accretion | 11 | 10 | 21 | 20 |
Net change in unrealized gain | (111) | 240 | (96) | 530 |
Balance, end of period | $ 4,000 | $ 4,150 | $ 4,000 | $ 4,150 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) | Jun. 30, 2019USD ($)item | Dec. 31, 2018USD ($) |
Fair value inputs quantitative information | ||
Consumer loans held for investment | $ 1,369,000 | $ 1,922,000 |
Recurring basis | ||
Fair value inputs quantitative information | ||
Consumer loans held for investment | 1,369,000 | 1,922,000 |
Recurring basis | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Consumer loans held for investment | 1,369,000 | 1,922,000 |
Private label mortgage backed security | Recurring basis | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 3,615,000 | $ 3,712,000 |
Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Private label mortgage backed security | Minimum | Recurring basis | Constant Prepayment Rate | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 3.9 | 6.5 |
Private label mortgage backed security | Minimum | Recurring basis | Probability of default | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 1.8 | 1.8 |
Private label mortgage backed security | Minimum | Recurring basis | Loss Severity | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 50 | 50 |
Private label mortgage backed security | Maximum | Recurring basis | Constant Prepayment Rate | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 4.5 | 8.9 |
Private label mortgage backed security | Maximum | Recurring basis | Probability of default | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 6.1 | 4.7 |
Private label mortgage backed security | Maximum | Recurring basis | Loss Severity | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 75 | 75 |
Consumer loans | ||
Fair value inputs quantitative information | ||
Consumer loans held for investment | $ 1,369,000 | $ 1,922,000 |
Consumer loans | Recurring basis | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Consumer loans held for investment | $ 1,369,000 | $ 1,922,000 |
Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Consumer loans | Recurring basis | Constant Prepayment Rate | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 15 | 15 |
Consumer loans | Recurring basis | Probability of default | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 50 | 45 |
Consumer loans | Recurring basis | Loss Severity | Fair Value, Inputs, Level 3 | ||
Fair value inputs quantitative information | ||
Measurable input percentage | 25 | 20 |
FAIR VALUE - GAINS AND LOSSES (
FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Option | |||||||
Aggregate fair value of mortgage loan | $ 13,883 | $ 12,653 | $ 13,883 | $ 8,971 | $ 11,313 | $ 4,496 | $ 5,761 |
Consumer loans held for investment | 1,369 | 1,369 | 1,922 | ||||
Contractual balance | $ 4,409,882 | $ 4,409,882 | $ 4,147,249 | ||||
Mortgage loans held for sale | |||||||
Fair Value, Option | |||||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | 0 | ||||
Aggregate fair value of mortgage loan | $ 13,883 | $ 13,883 | $ 8,971 | ||||
Contractual balance | 13,542 | 13,542 | 8,676 | ||||
Unrealized (loss) gain | 341 | 341 | 295 | ||||
Gains (losses) from changes in fair value included in earnings | 298 | 255 | 318 | 318 | |||
Mortgage loans held for sale | Interest Income | |||||||
Fair Value, Option | |||||||
Gains (losses) from changes in fair value included in earnings | 170 | 103 | 272 | 175 | |||
Mortgage loans held for sale | Change In Fair Value | |||||||
Fair Value, Option | |||||||
Gains (losses) from changes in fair value included in earnings | $ 128 | 152 | $ 46 | $ 143 | |||
Consumer loans | |||||||
Fair Value, Option | |||||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | 0 | ||||
Consumer loans held for investment | $ 1,369 | $ 1,369 | $ 1,922 | ||||
Contractual balance | 1,580 | 1,580 | 2,170 | ||||
Unrealized (loss) gain | (211) | (211) | (248) | ||||
Gains (losses) from changes in fair value included in earnings | 109 | (262) | 238 | (99) | |||
Consumer loans | Interest Income | |||||||
Fair Value, Option | |||||||
Gains (losses) from changes in fair value included in earnings | 90 | 152 | 201 | 328 | |||
Consumer loans | Change In Fair Value | |||||||
Fair Value, Option | |||||||
Gains (losses) from changes in fair value included in earnings | $ 19 | $ (414) | $ 37 | $ (427) |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 6,264 | $ 7,935 |
Consumer Loans Held For Sale | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,249 | |
Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,777 | 4,708 |
Residential Real Estate - Non Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 511 | 1,007 |
Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,117 | 1,255 |
Commercial & industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 512 | 609 |
Home equity lines of credit | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 347 | 356 |
Premises | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,552 | 1,694 |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 6,264 | 7,935 |
Fair Value, Inputs, Level 3 | Consumer Loans Held For Sale | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,249 | |
Fair Value, Inputs, Level 3 | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 3,777 | 4,708 |
Fair Value, Inputs, Level 3 | Residential Real Estate - Non Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 511 | 1,007 |
Fair Value, Inputs, Level 3 | Commercial Real Estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,117 | 1,255 |
Fair Value, Inputs, Level 3 | Commercial & industrial | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 512 | 609 |
Fair Value, Inputs, Level 3 | Home equity lines of credit | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 347 | 356 |
Fair Value, Inputs, Level 3 | Premises | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 1,552 | $ 1,694 |
FAIR VALUE - NON-RECURRING LEVE
FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Consumer Loans Held For Sale | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 6 | |
Consumer Loans Held For Sale | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 6 | |
Consumer Loans Held For Sale | Residential Real Estate - Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,249,000 | |
Impaired Loans | Residential Real Estate - Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 3,777,000 | $ 4,708,000 |
Impaired Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | 0 |
Impaired Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 62 | 67 |
Impaired Loans | Residential Real Estate - Owner Occupied | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 11 | 9 |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 511,000 | $ 1,007,000 |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 5 | 0 |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 12 | 27 |
Impaired Loans | Residential Real Estate - Non Owner Occupied | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 12 | 15 |
Impaired Loans | Commercial Real Estate | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,117,000 | $ 123,000 |
Impaired Loans | Commercial Real Estate | Income approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,132,000 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 21 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 22 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 25 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 22 | 21 |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Income approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 17 | |
Impaired Loans | Commercial Real Estate | Comparability Adjustment | Income approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 17 | |
Impaired Loans | Commercial & industrial | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 512,000 | $ 609,000 |
Impaired Loans | Commercial & industrial | Comparability Adjustment | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 3 | 3 |
Impaired Loans | Commercial & industrial | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 3 | 3 |
Impaired Loans | Home equity lines of credit | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 347,000 | $ 356,000 |
Impaired Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | 0 |
Impaired Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 2 | 22 |
Impaired Loans | Home equity lines of credit | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 2 | 8 |
Premises | Sale comparison approach | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,552,000 | $ 1,694,000 |
Premises | Comparability Adjustment | Sale comparison approach | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 33 | 27 |
Premises | Comparability Adjustment | Sale comparison approach | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 75 | 72 |
Premises | Comparability Adjustment | Sale comparison approach | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 45 | 40 |
FAIR VALUE - IMPAIRED LOANS (De
FAIR VALUE - IMPAIRED LOANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Impaired loans | |||||
Carrying amount of loans measured at fair value | $ 21,947 | $ 21,947 | $ 21,880 | ||
Valuation allowance | (3,768) | (3,768) | (3,764) | ||
Nonrecurring basis | |||||
Impaired loans | |||||
Total fair value | 6,264 | 6,264 | 7,935 | ||
Fair Value, Inputs, Level 3 | Nonrecurring basis | |||||
Impaired loans | |||||
Carrying amount of loans measured at fair value | 5,559 | 5,559 | 7,380 | ||
Estimated selling costs considered in carrying amount | 724 | 724 | 913 | ||
Valuation allowance | (19) | (19) | (358) | ||
Total fair value | 6,264 | 6,264 | $ 7,935 | ||
Provision for impairment on loan, lease and other losses | |||||
Provisions on collateral-dependent, impaired loans | $ 5 | $ 28 | $ 27 | $ 457 |
FAIR VALUE - PREMISES AND EQUIP
FAIR VALUE - PREMISES AND EQUIPMENT (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($) | Dec. 31, 2018item | |
Premises, Held for Sale | |||||
Number of former banking centers classified as held for sale | item | 3 | 3 | 3 | ||
Impairment charges on premises | $ | $ 66 | $ 126 | $ 132 | $ 230 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||||
Available-for-sale debt securities | $ 380,356 | $ 475,738 | ||||
Securities to be held to maturity | 64,433 | 64,858 | ||||
Equity securities with readily determinable fair value | 3,254 | 2,806 | ||||
Mortgage loans held for sale, at fair value | 13,883 | $ 11,313 | 8,971 | $ 12,653 | $ 4,496 | $ 5,761 |
Reverse mortgage loans held for sale, at the lower of cost or fair value | 12,457 | |||||
Consumer loans held for sale, at the lower of cost or fair value | 37,609 | $ 12,864 | 12,838 | $ 13,684 | $ 7,380 | $ 8,551 |
Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value | 111,745 | |||||
Loans, net | 1,369 | 1,922 | ||||
Right-of-use assets | 37,450 | |||||
Liabilities: | ||||||
Deposits held for assumption in connection with sale of banking centers | 152,954 | |||||
Operating lease liabilities | 38,852 | |||||
Carrying Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 473,779 | 351,474 | ||||
Available-for-sale debt securities | 380,356 | 475,738 | ||||
Securities to be held to maturity | 63,902 | 65,227 | ||||
Equity securities with readily determinable fair value | 3,254 | 2,806 | ||||
Mortgage loans held for sale, at fair value | 13,883 | 8,971 | ||||
Reverse mortgage loans held for sale, at the lower of cost or fair value | 12,457 | |||||
Consumer loans held for sale, at the lower of cost or fair value | 37,609 | 12,838 | ||||
Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value | 111,745 | |||||
Loans, net | 4,364,686 | 4,103,552 | ||||
Federal Home Loan Bank stock | 32,242 | 32,067 | ||||
Accrued interest receivable | 14,716 | 13,942 | ||||
Rate lock loan commitments | 1,222 | 356 | ||||
Interest rate swap agreements | 4,645 | 1,264 | ||||
Liabilities: | ||||||
Deposits held for assumption in connection with sale of banking centers | 152,954 | |||||
Securities sold under agreements to repurchase and other short-term borrowings | 226,002 | 182,990 | ||||
Federal Home Loan Bank advances | 915,000 | 810,000 | ||||
Subordinated note | 41,240 | 41,240 | ||||
Accrued interest payable | 1,575 | 1,084 | ||||
Mandatory forward contracts | 467 | 262 | ||||
Interest rate swap agreements | 4,778 | 1,149 | ||||
Carrying Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,003,793 | 1,003,969 | ||||
Carrying Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,959,252 | 2,035,701 | ||||
Carrying Value | Time deposits. | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 597,875 | 416,475 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Cash and cash equivalents | 473,779 | 351,474 | ||||
Available-for-sale debt securities | 380,356 | 475,738 | ||||
Securities to be held to maturity | 64,433 | 64,858 | ||||
Equity securities with readily determinable fair value | 3,254 | 2,806 | ||||
Mortgage loans held for sale, at fair value | 13,883 | 8,971 | ||||
Reverse mortgage loans held for sale, at the lower of cost or fair value | 12,457 | |||||
Consumer loans held for sale, at the lower of cost or fair value | 37,609 | 12,838 | ||||
Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value | 111,745 | |||||
Loans, net | 4,397,565 | 4,062,457 | ||||
Accrued interest receivable | 14,716 | 13,942 | ||||
Rate lock loan commitments | 1,222 | 356 | ||||
Interest rate swap agreements | 4,645 | 1,264 | ||||
Liabilities: | ||||||
Deposits held for assumption in connection with sale of banking centers | 152,954 | |||||
Securities sold under agreements to repurchase and other short-term borrowings | 226,002 | 182,990 | ||||
Federal Home Loan Bank advances | 913,453 | 804,251 | ||||
Subordinated note | 33,181 | 33,724 | ||||
Accrued interest payable | 1,575 | 1,084 | ||||
Mandatory forward contracts | 467 | 262 | ||||
Interest rate swap agreements | 4,778 | 1,149 | ||||
Total Fair Value | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,003,793 | 1,003,969 | ||||
Total Fair Value | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,959,252 | 2,035,701 | ||||
Total Fair Value | Time deposits. | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 600,352 | 412,477 | ||||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||||
Assets: | ||||||
Cash and cash equivalents | 473,779 | 351,474 | ||||
Equity securities with readily determinable fair value | 2,467 | 2,396 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 372,741 | 467,951 | ||||
Securities to be held to maturity | 64,433 | 64,858 | ||||
Equity securities with readily determinable fair value | 787 | 410 | ||||
Mortgage loans held for sale, at fair value | 13,883 | 8,971 | ||||
Reverse mortgage loans held for sale, at the lower of cost or fair value | 12,457 | |||||
Consumer loans held for sale, at the lower of cost or fair value | 37,609 | 12,838 | ||||
Loans held for sale in connection with sale of banking centers, at the lower of cost or fair value | 111,745 | |||||
Accrued interest receivable | 14,716 | 13,942 | ||||
Rate lock loan commitments | 1,222 | 356 | ||||
Interest rate swap agreements | 4,645 | 1,264 | ||||
Liabilities: | ||||||
Deposits held for assumption in connection with sale of banking centers | 152,954 | |||||
Securities sold under agreements to repurchase and other short-term borrowings | 226,002 | 182,990 | ||||
Federal Home Loan Bank advances | 913,453 | 804,251 | ||||
Subordinated note | 33,181 | 33,724 | ||||
Accrued interest payable | 1,575 | 1,084 | ||||
Mandatory forward contracts | 467 | 262 | ||||
Interest rate swap agreements | 4,778 | 1,149 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,003,793 | 1,003,969 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 1,959,252 | 2,035,701 | ||||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits. | ||||||
Liabilities: | ||||||
Deposit liabilities, fair value | 600,352 | 412,477 | ||||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||||
Assets: | ||||||
Available-for-sale debt securities | 7,615 | 7,787 | ||||
Loans, net | $ 4,397,565 | $ 4,062,457 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 11,313 | $ 4,496 | $ 8,971 | $ 5,761 |
Origination of mortgage loans held for sale | 81,982 | 54,714 | 122,696 | 84,124 |
Proceeds from the sale of mortgage loans held for sale | (81,630) | (47,642) | (121,262) | (79,094) |
Net gain on sale of mortgage loans held for sale | 2,218 | 1,085 | 3,478 | 1,862 |
Balance, end of period | $ 13,883 | $ 12,653 | $ 13,883 | $ 12,653 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Mortgage servicing rights | ||||
Net gain realized on sale of mortgage loans held for sale | $ 1,896 | $ 1,101 | $ 2,771 | $ 1,698 |
Net gain recognized | 2,218 | 1,085 | 3,478 | 1,862 |
Loan servicing income | 609 | 600 | 1,210 | 1,205 |
Amortization of mortgage servicing rights | (411) | (369) | (733) | (731) |
Net servicing income recognized | 198 | 231 | 477 | 474 |
Total Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 |
Mortgage loans held for sale | ||||
Mortgage servicing rights | ||||
Net change in fair value | 128 | 152 | 46 | 143 |
Rate lock loan commitments | ||||
Mortgage servicing rights | ||||
Net change in fair value | 379 | (11) | 866 | 122 |
Mandatory forward contracts | ||||
Mortgage servicing rights | ||||
Net change in fair value | $ (185) | $ (157) | $ (205) | $ (101) |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
MORTGAGE BANKING ACTIVITIES | ||||
Balance, beginning of period | $ 4,935 | $ 4,925 | $ 4,919 | $ 5,044 |
Additions | 634 | 359 | 972 | 602 |
Amortized to expense | (411) | (369) | (733) | (731) |
Balance, end of period | 5,158 | 4,915 | 5,158 | 4,915 |
Change in valuation allowance | $ 0 | $ 0 | $ 0 | $ 0 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 7,708 | $ 9,357 |
Monthly weighted average prepayment rate of unpaid principle balance (as percent) | 232.00% | 160.00% |
Discount rate (as percent) | 10.00% | 10.00% |
Weighted average default rate (as percent) | 0.07% | 0.14% |
Weighted average life in years | 5 years 8 months 9 days | 6 years 3 months 26 days |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Mortgage servicing rights | ||
Derivative instruments expiration period | 90 days | |
Mortgage loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 13,542 | $ 8,676 |
Fair Value, Assets | 13,883 | 8,971 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 52,789 | 14,788 |
Fair Value, Assets | 1,222 | 356 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Liabilities, Notional Amount | 55,442 | 20,063 |
Fair Value, Liabilities | $ 467 | $ 262 |
INTEREST RATE SWAPS - CASH FLOW
INTEREST RATE SWAPS - CASH FLOW HEDGES (Details) - Interest rate swap - Cash flow hedge $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013DerivativeInstrument | |
Information about derivatives and swaps | |||
Number of derivative agreements | DerivativeInstrument | 2 | ||
Summary information about interest rate swaps | |||
Notional amount | $ 20,000 | ||
Assets / (Liabilities) | (133) | $ 115 | |
Unrealized Gain (Loss) in AOCI | (104) | 90 | |
1-month LIBOR | |||
Summary information about interest rate swaps | |||
Notional amount | $ 10,000 | ||
Pay rate (as a percent) | 2.17% | ||
Assets / (Liabilities) | $ (72) | 58 | |
Unrealized Gain (Loss) in AOCI | (56) | 45 | |
3-month LIBOR | |||
Summary information about interest rate swaps | |||
Notional amount | $ 10,000 | ||
Pay rate (as a percent) | 2.33% | ||
Assets / (Liabilities) | $ (61) | 57 | |
Unrealized Gain (Loss) in AOCI | $ (48) | $ 45 |
INTEREST RATE SWAPS - INTEREST
INTEREST RATE SWAPS - INTEREST EXPENSE (Details) - Interest rate swap - Cash flow hedge - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Information about derivatives and swaps | ||||
Interest expense swap on money market deposits | $ (8) | $ 3 | $ (16) | $ 20 |
Interest expense swap on FHLB Advance | (5) | 6 | (16) | 15 |
Total interest (benefit) expense on swap transactions | $ (13) | $ 9 | $ (32) | $ 35 |
INTEREST RATE SWAPS - GAINS (LO
INTEREST RATE SWAPS - GAINS (LOSSES) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Information about derivatives and swaps | ||||
(Gains) losses recognized in OCI on derivative (effective portion) | $ (146) | $ 77 | $ (215) | $ 276 |
Interest rate swap | Cash flow hedge | ||||
Information about derivatives and swaps | ||||
(Gains) losses recognized in OCI on derivative (effective portion) | (146) | 77 | (215) | 276 |
Gains (losses) reclassified from OCI on derivative (effective portion) | 13 | (9) | 32 | (35) |
Gains (losses) recognized in income on derivative (ineffective portion) | $ 0 | $ 0 | $ 0 | $ 0 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | $ 274,652,000 | $ 240,700,000 |
Counterparty | ||
Information about derivatives and swaps | ||
Fair value of securities pledged as collateral | 4,800,000 | 0 |
Counterparty | Minimum | ||
Information about derivatives and swaps | ||
Net loss position in which pledged securities as collateral are required | 250,000 | |
Interest rate swap | Non-Hedge | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 165,254,000 | 162,232,000 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 81,453,000 | 26,398,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 1,174,000 | 54,718,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 82,627,000 | 81,116,000 |
Interest rate swaps with Bank clients - Assets, Fair Value | 4,645,000 | 1,264,000 |
Interest rate swaps with Bank clients - Liabilities, Fair Value | (6,000) | (908,000) |
Interest rate swaps with Bank clients - Total, Fair Value | 4,639,000 | 356,000 |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 82,627,000 | 81,116,000 |
Interest rate swaps with Bank clients - Total, Fair Value | $ (4,639,000) | $ (356,000) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
EARNINGS PER SHARE | ||||
Net income | $ 18,007 | $ 15,666 | $ 47,523 | $ 43,135 |
Dividends declared on Common Stock: | ||||
Undistributed net income for basic earnings per share | 12,545 | 10,661 | 36,597 | 33,119 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (32) | (35) | (68) | (64) |
Undistributed net income for diluted earnings per share | $ 12,513 | $ 10,626 | $ 36,529 | $ 33,055 |
Weighted average shares outstanding: | ||||
Effect of dilutive securities on Class A Shares outstanding | 122,000 | 144,000 | 128,000 | 133,000 |
Weighted average shares outstanding including dilutive securities | 21,138,000 | 21,331,000 | 21,125,000 | 21,072,000 |
Stock option | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 160,000 | 3,000 | 165,000 | 3,000 |
Stock option | Weighted Average | ||||
Diluted earnings per share: | ||||
Antidilutive stock options (in shares) | 156,000 | 400 | 159,000 | 200 |
Class A Common Stock | ||||
EARNINGS PER SHARE | ||||
Cash dividend premium per share (as a percent) | 10.00% | |||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (4,932) | $ (4,518) | $ (9,865) | $ (9,035) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 18,804,000 | 18,935,000 | 18,785,000 | 18,704,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.26 | $ 0.24 | $ 0.53 | $ 0.48 |
Undistributed earnings per share | 0.60 | 0.51 | 1.76 | 1.60 |
Total basic earnings per share | 0.86 | 0.75 | 2.29 | 2.08 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.26 | 0.24 | 0.53 | 0.48 |
Undistributed earnings per share | 0.60 | 0.50 | 1.75 | 1.58 |
Total diluted earnings per share | $ 0.86 | $ 0.74 | $ 2.28 | $ 2.06 |
Class B Common Stock | ||||
Dividends declared on Common Stock: | ||||
Dividends declared on Common Stock | $ (530) | $ (487) | $ (1,061) | $ (981) |
Weighted average shares outstanding: | ||||
Weighted average shares outstanding | 2,212,000 | 2,252,000 | 2,212,000 | 2,235,000 |
Basic earnings per share: | ||||
Per share dividends distributed | $ 0.24 | $ 0.22 | $ 0.48 | $ 0.44 |
Undistributed earnings per share | 0.55 | 0.46 | 1.60 | 1.45 |
Total basic earnings per share | 0.79 | 0.68 | 2.08 | 1.89 |
Diluted earnings per share: | ||||
Per share dividends distributed | 0.24 | 0.22 | 0.48 | 0.44 |
Undistributed earnings per share | 0.54 | 0.46 | 1.59 | 1.44 |
Total diluted earnings per share | $ 0.78 | $ 0.68 | $ 2.07 | $ 1.88 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Available for Sale Securities: | ||||
Change in unrealized (loss) gain on AFS debt securities | $ 2,014 | $ (546) | $ 5,673 | $ (2,663) |
Adjustment for adoption of ASU 2016-01 | (428) | |||
Change in unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings | (1) | (15) | (34) | (17) |
Net unrealized (losses) gains | 2,013 | (561) | 5,639 | (3,108) |
Tax effect | (422) | 118 | (1,186) | 652 |
Net of tax | 1,591 | (443) | 4,453 | (2,456) |
Cash Flow Hedges: | ||||
Change in fair value of derivatives used for cash flow hedges | (146) | 77 | (215) | 276 |
Reclassification amount for net derivative losses realized in income | (13) | 9 | (32) | 35 |
Net unrealized gains | (159) | 86 | (247) | 311 |
Tax effect | 33 | (19) | 53 | (64) |
Net of tax | (126) | 67 | (194) | 247 |
Total other comprehensive income (loss), net of tax | $ 1,465 | $ (376) | $ 4,259 | $ (2,209) |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Significant amounts reclassified out of each component of AOCI | ||||
Interest benefit (expense) on deposits | $ (6,903) | $ (3,934) | $ (13,651) | $ (7,294) |
Interest benefit (expense) on FHLB advances | (4,062) | (2,723) | (6,792) | (4,997) |
Total interest expense | (11,718) | (7,272) | (22,052) | (13,440) |
Income tax (benefit) expense | (3,176) | (4,150) | (10,636) | (11,591) |
NET INCOME | 18,007 | 15,666 | 47,523 | 43,135 |
Unrealized gain (loss) on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Significant amounts reclassified out of each component of AOCI | ||||
Interest benefit (expense) on deposits | 8 | (3) | 16 | (20) |
Interest benefit (expense) on FHLB advances | 5 | (6) | 16 | (15) |
Total interest expense | 13 | (9) | 32 | (35) |
Income tax (benefit) expense | (3) | 2 | (7) | 7 |
NET INCOME | $ 10 | $ (7) | $ 25 | $ (28) |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | $ 717,091 | $ 653,254 | $ 689,934 | $ 632,424 |
Current Year Change | 1,465 | (376) | 4,259 | (2,209) |
Balance at end of period | 731,428 | 664,008 | 731,428 | 664,008 |
Accumulated Other Comprehensive Income | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 1,797 | (1,417) | (997) | 416 |
Current Year Change | 4,259 | (2,209) | ||
Balance at end of period | 3,262 | (1,793) | 3,262 | (1,793) |
Unrealized gain (loss) on AFS debt securities | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | (2,165) | (604) | ||
Current Year Change | 4,480 | (2,443) | ||
Balance at end of period | 2,315 | (3,047) | 2,315 | (3,047) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 1,078 | 1,093 | ||
Current Year Change | (27) | (13) | ||
Balance at end of period | 1,051 | 1,080 | 1,051 | 1,080 |
Unrealized gain (loss) on cash flow hedges | ||||
Summary of the AOCI balances, net of tax | ||||
Balance at beginning of period | 90 | (73) | ||
Current Year Change | (194) | 247 | ||
Balance at end of period | $ (104) | $ 174 | $ (104) | $ 174 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue recognition | |||||
Practical expedient allows incremental costs of obtaining contract when amortization period less than one year | true | ||||
Net interest income | $ 53,946 | $ 51,084 | $ 126,245 | $ 118,749 | |
Noninterest income: | |||||
Service charges on deposit accounts | 3,598 | 3,574 | 6,901 | 7,129 | |
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 | |
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 | |
Interchange fee income | 3,257 | 2,891 | 6,014 | 5,558 | |
Program fees | 1,037 | 1,323 | 2,111 | 3,019 | |
Increase in cash surrender value of bank owned life insurance | 377 | 379 | 759 | 750 | |
Net gains (losses) on OREO | 90 | 320 | 220 | 452 | |
Other | 721 | 1,020 | 1,853 | 2,772 | |
Noninterest income | 15,125 | 14,296 | 42,542 | 41,841 | |
Total net revenue | $ 69,071 | $ 65,380 | $ 168,787 | $ 160,590 | |
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | 100.00% | |
Writedowns during entity's holding of property (as a percent) | 10.00% | ||||
Nonrefundable capital commitment fee | $ 1,000 | ||||
Core Banking Activities | |||||
Revenue recognition | |||||
Net interest income | $ 46,004 | $ 43,615 | $ 90,348 | $ 85,466 | |
Noninterest income: | |||||
Service charges on deposit accounts | 3,598 | 3,574 | 6,901 | 7,129 | |
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 | |
Interchange fee income | 3,168 | 2,793 | 5,794 | 5,331 | |
Increase in cash surrender value of bank owned life insurance | 377 | 379 | 759 | 750 | |
Net gains (losses) on OREO | 90 | 320 | 220 | 452 | |
Other | 689 | 719 | 1,194 | 1,171 | |
Noninterest income | 10,338 | 9,101 | 18,823 | 17,169 | |
Total net revenue | $ 56,342 | $ 52,716 | $ 109,171 | $ 102,635 | |
Net-revenue concentration (as percent) | 82.00% | 81.00% | 65.00% | 64.00% | |
Traditional Banking | |||||
Revenue recognition | |||||
Net interest income | $ 41,877 | $ 39,348 | $ 83,224 | $ 77,536 | |
Noninterest income: | |||||
Service charges on deposit accounts | 3,585 | 3,563 | 6,878 | 7,110 | |
Interchange fee income | 3,168 | 2,793 | 5,794 | 5,331 | |
Increase in cash surrender value of bank owned life insurance | 377 | 379 | 759 | 750 | |
Net gains (losses) on OREO | 90 | 320 | 220 | 452 | |
Other | 633 | 670 | 1,098 | 1,084 | |
Noninterest income | 7,853 | 7,725 | 14,749 | 14,727 | |
Total net revenue | $ 49,730 | $ 47,073 | $ 97,973 | $ 92,263 | |
Net-revenue concentration (as percent) | 72.00% | 73.00% | 58.00% | 57.00% | |
Warehouse Lending | |||||
Revenue recognition | |||||
Net interest income | $ 3,957 | $ 4,164 | $ 6,852 | $ 7,755 | |
Noninterest income: | |||||
Service charges on deposit accounts | 13 | 11 | 23 | 19 | |
Noninterest income | 13 | 11 | 23 | 19 | |
Total net revenue | $ 3,970 | $ 4,175 | $ 6,875 | $ 7,774 | |
Net-revenue concentration (as percent) | 6.00% | 6.00% | 4.00% | 5.00% | |
Mortgage Banking | |||||
Revenue recognition | |||||
Net interest income | $ 170 | $ 103 | $ 272 | $ 175 | |
Noninterest income: | |||||
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 | |
Other | 56 | 49 | 96 | 87 | |
Noninterest income | 2,472 | 1,365 | 4,051 | 2,423 | |
Total net revenue | $ 2,642 | $ 1,468 | $ 4,323 | $ 2,598 | |
Net-revenue concentration (as percent) | 4.00% | 2.00% | 3.00% | 2.00% | |
Republic Processing Group | |||||
Revenue recognition | |||||
Net interest income | $ 7,942 | $ 7,469 | $ 35,897 | $ 33,283 | |
Noninterest income: | |||||
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 | |
Interchange fee income | 89 | 98 | 220 | 227 | |
Program fees | 1,037 | 1,323 | 2,111 | 3,019 | |
Other | 32 | 301 | 659 | 1,601 | |
Noninterest income | 4,787 | 5,195 | 23,719 | 24,672 | |
Total net revenue | $ 12,729 | $ 12,664 | $ 59,616 | $ 57,955 | |
Net-revenue concentration (as percent) | 18.00% | 19.00% | 35.00% | 36.00% | |
Tax Refund Solutions | |||||
Revenue recognition | |||||
Net interest income | $ 710 | $ 328 | $ 21,148 | $ 19,014 | |
Noninterest income: | |||||
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 | |
Interchange fee income | 89 | 79 | 220 | 188 | |
Program fees | 50 | 124 | 196 | 183 | |
Other | 1 | 1,002 | |||
Noninterest income | 3,768 | 3,677 | 21,145 | 21,198 | |
Total net revenue | $ 4,478 | $ 4,005 | $ 42,293 | $ 40,212 | |
Net-revenue concentration (as percent) | 6.00% | 6.00% | 25.00% | 25.00% | |
Republic Credit Solutions | |||||
Revenue recognition | |||||
Net interest income | $ 7,232 | $ 7,141 | $ 14,749 | $ 14,269 | |
Noninterest income: | |||||
Interchange fee income | 19 | 39 | |||
Program fees | 987 | 1,199 | 1,915 | 2,836 | |
Other | 32 | 300 | 659 | 599 | |
Noninterest income | 1,019 | 1,518 | 2,574 | 3,474 | |
Total net revenue | $ 8,251 | $ 8,659 | $ 17,323 | $ 17,743 | |
Net-revenue concentration (as percent) | 12.00% | 13.00% | 10.00% | 11.00% |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Disclosure information | |||||
Number of reportable segments | segment | 5 | ||||
Segment information | |||||
Net interest income | $ 53,946 | $ 51,084 | $ 126,245 | $ 118,749 | |
Provision for loan and lease losses | 4,460 | 4,932 | 21,691 | 22,187 | |
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 | |
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 | |
Program fees | 1,037 | 1,323 | 2,111 | 3,019 | |
Other noninterest income | 8,043 | 8,184 | 15,747 | 16,661 | |
Total noninterest income | 15,125 | 14,296 | 42,542 | 41,841 | |
Total noninterest expenses | 43,428 | 40,632 | 88,937 | 83,677 | |
INCOME BEFORE INCOME TAX EXPENSE | 21,183 | 19,816 | 58,159 | 54,726 | |
INCOME TAX EXPENSE | 3,176 | 4,150 | 10,636 | 11,591 | |
Net income | 18,007 | 15,666 | 47,523 | 43,135 | |
Period-end of period assets | $ 5,723,134 | $ 5,265,945 | $ 5,723,134 | $ 5,265,945 | $ 5,240,404 |
Net interest margin (as percent) | 4.12% | 4.19% | 4.88% | 4.85% | |
Net-revenue concentration (as percent) | 100.00% | 100.00% | 100.00% | 100.00% | |
Core Banking Activities | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 3 | ||||
Segment information | |||||
Net interest income | $ 46,004 | $ 43,615 | $ 90,348 | $ 85,466 | |
Provision for loan and lease losses | 1,844 | 773 | 2,258 | 1,733 | |
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 | |
Other noninterest income | 7,922 | 7,785 | 14,868 | 14,833 | |
Total noninterest income | 10,338 | 9,101 | 18,823 | 17,169 | |
Total noninterest expenses | 39,910 | 37,441 | 77,538 | 72,876 | |
INCOME BEFORE INCOME TAX EXPENSE | 14,588 | 14,502 | 29,375 | 28,026 | |
INCOME TAX EXPENSE | 1,635 | 2,932 | 3,909 | 5,315 | |
Net income | 12,953 | 11,570 | 25,466 | 22,711 | |
Period-end of period assets | $ 5,564,317 | $ 5,153,989 | $ 5,564,317 | $ 5,153,989 | |
Net interest margin (as percent) | 3.62% | 3.64% | 3.69% | 3.60% | |
Net-revenue concentration (as percent) | 82.00% | 81.00% | 65.00% | 64.00% | |
Traditional Banking | |||||
Segment information | |||||
Net interest income | $ 41,877 | $ 39,348 | $ 83,224 | $ 77,536 | |
Provision for loan and lease losses | 1,427 | 523 | 1,616 | 1,462 | |
Other noninterest income | 7,853 | 7,725 | 14,749 | 14,727 | |
Total noninterest income | 7,853 | 7,725 | 14,749 | 14,727 | |
Total noninterest expenses | 37,764 | 35,415 | 73,314 | 68,807 | |
INCOME BEFORE INCOME TAX EXPENSE | 10,539 | 11,135 | 23,043 | 21,994 | |
INCOME TAX EXPENSE | 744 | 2,168 | 2,509 | 3,940 | |
Net income | 9,795 | 8,967 | 20,534 | 18,054 | |
Period-end of period assets | $ 4,805,449 | $ 4,501,539 | $ 4,805,449 | $ 4,501,539 | |
Net interest margin (as percent) | 3.75% | 3.71% | 3.81% | 3.65% | |
Net-revenue concentration (as percent) | 72.00% | 73.00% | 58.00% | 57.00% | |
Warehouse Lending | |||||
Segment information | |||||
Net interest income | $ 3,957 | $ 4,164 | $ 6,852 | $ 7,755 | |
Provision for loan and lease losses | 417 | 250 | 642 | 271 | |
Other noninterest income | 13 | 11 | 23 | 19 | |
Total noninterest income | 13 | 11 | 23 | 19 | |
Total noninterest expenses | 792 | 850 | 1,550 | 1,689 | |
INCOME BEFORE INCOME TAX EXPENSE | 2,761 | 3,075 | 4,683 | 5,814 | |
INCOME TAX EXPENSE | 621 | 702 | 1,054 | 1,329 | |
Net income | 2,140 | 2,373 | 3,629 | 4,485 | |
Period-end of period assets | $ 738,300 | $ 634,452 | $ 738,300 | $ 634,452 | |
Net interest margin (as percent) | 2.49% | 3.08% | 2.63% | 3.13% | |
Net-revenue concentration (as percent) | 6.00% | 6.00% | 4.00% | 5.00% | |
Mortgage Banking | |||||
Segment information | |||||
Net interest income | $ 170 | $ 103 | $ 272 | $ 175 | |
Mortgage banking income | 2,416 | 1,316 | 3,955 | 2,336 | |
Other noninterest income | 56 | 49 | 96 | 87 | |
Total noninterest income | 2,472 | 1,365 | 4,051 | 2,423 | |
Total noninterest expenses | 1,354 | 1,176 | 2,674 | 2,380 | |
INCOME BEFORE INCOME TAX EXPENSE | 1,288 | 292 | 1,649 | 218 | |
INCOME TAX EXPENSE | 270 | 62 | 346 | 46 | |
Net income | 1,018 | 230 | 1,303 | 172 | |
Period-end of period assets | $ 20,568 | $ 17,998 | $ 20,568 | $ 17,998 | |
Net-revenue concentration (as percent) | 4.00% | 2.00% | 3.00% | 2.00% | |
Republic Processing Group | |||||
Segment Disclosure information | |||||
Number of reportable segments | segment | 2 | ||||
Segment information | |||||
Net interest income | $ 7,942 | $ 7,469 | $ 35,897 | $ 33,283 | |
Provision for loan and lease losses | 2,616 | 4,159 | 19,433 | 20,454 | |
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 | |
Program fees | 1,037 | 1,323 | 2,111 | 3,019 | |
Other noninterest income | 121 | 399 | 879 | 1,828 | |
Total noninterest income | 4,787 | 5,195 | 23,719 | 24,672 | |
Total noninterest expenses | 3,518 | 3,191 | 11,399 | 10,801 | |
INCOME BEFORE INCOME TAX EXPENSE | 6,595 | 5,314 | 28,784 | 26,700 | |
INCOME TAX EXPENSE | 1,541 | 1,218 | 6,727 | 6,276 | |
Net income | 5,054 | 4,096 | 22,057 | 20,424 | |
Period-end of period assets | $ 158,817 | $ 111,956 | $ 158,817 | $ 111,956 | |
Net-revenue concentration (as percent) | 18.00% | 19.00% | 35.00% | 36.00% | |
Tax Refund Solutions | |||||
Segment information | |||||
Net interest income | $ 710 | $ 328 | $ 21,148 | $ 19,014 | |
Provision for loan and lease losses | 392 | (888) | 13,826 | 12,501 | |
Net refund transfer fees | 3,629 | 3,473 | 20,729 | 19,825 | |
Program fees | 50 | 124 | 196 | 183 | |
Other noninterest income | 89 | 80 | 220 | 1,190 | |
Total noninterest income | 3,768 | 3,677 | 21,145 | 21,198 | |
Total noninterest expenses | 2,849 | 2,273 | 9,963 | 8,798 | |
INCOME BEFORE INCOME TAX EXPENSE | 1,237 | 2,620 | 18,504 | 18,913 | |
INCOME TAX EXPENSE | 288 | 609 | 4,318 | 4,463 | |
Net income | 949 | 2,011 | 14,186 | 14,450 | |
Period-end of period assets | $ 36,834 | $ 27,192 | $ 36,834 | $ 27,192 | |
Net-revenue concentration (as percent) | 6.00% | 6.00% | 25.00% | 25.00% | |
Republic Credit Solutions | |||||
Segment information | |||||
Net interest income | $ 7,232 | $ 7,141 | $ 14,749 | $ 14,269 | |
Provision for loan and lease losses | 2,224 | 5,047 | 5,607 | 7,953 | |
Program fees | 987 | 1,199 | 1,915 | 2,836 | |
Other noninterest income | 32 | 319 | 659 | 638 | |
Total noninterest income | 1,019 | 1,518 | 2,574 | 3,474 | |
Total noninterest expenses | 669 | 918 | 1,436 | 2,003 | |
INCOME BEFORE INCOME TAX EXPENSE | 5,358 | 2,694 | 10,280 | 7,787 | |
INCOME TAX EXPENSE | 1,253 | 609 | 2,409 | 1,813 | |
Net income | 4,105 | 2,085 | 7,871 | 5,974 | |
Period-end of period assets | $ 121,983 | $ 84,764 | $ 121,983 | $ 84,764 | |
Net-revenue concentration (as percent) | 12.00% | 13.00% | 10.00% | 11.00% |
INCOME TAXES - PROVISION (Detai
INCOME TAXES - PROVISION (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Effective tax rate that differs from that computed at the federal statutory rate | ||||
Federal rate times financial statement income (as a percent) | 21.00% | 21.00% | 21.00% | 21.00% |
Effect of: | ||||
State taxes, net of federal benefit (as a percent) | (2.47%) | 0.82% | (0.51%) | 1.54% |
General business tax credits (as a percent) | (0.55%) | (0.63%) | (0.68%) | (0.31%) |
Nontaxable income (as a percent) | (1.27%) | (1.35%) | (0.89%) | (0.94%) |
Other, net (as a percent) | (1.72%) | 1.10% | (0.63%) | (0.11%) |
Effective tax rate (as a percent) | 14.99% | 20.94% | 18.29% | 21.18% |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Income taxes | |||||
Corporate income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
Traditional Banking | |||||
Income taxes | |||||
Deferred tax asset, net of the federal benefit | $ 350,000 | ||||
Reversal of valuation allowance on the deferred tax asset for losses | $ 815,000 | ||||
Percentage of income tax benefit attributed to segment | 100.00% | ||||
Income tax benefit associated with equity compensation | $ 388,000 | ||||
Kentucky | |||||
Income taxes | |||||
Corporate income tax rate | 5.00% |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Disposal Group, Disposed of by Sale - Kentucky Banking Centers $ in Millions | 1 Months Ended | |
Jul. 31, 2019item | Jun. 30, 2019USD ($) | |
SUBSEQUENT EVENT | ||
Loans, including credit cards | $ 112 | |
Deposits | 153 | |
Fixed assets | $ 1.3 | |
Subsequent event. | ||
SUBSEQUENT EVENT | ||
Number of banking centers to be sold | item | 4 | |
Blended premium of the total deposits expected (as a percent) | 6.00% | |
Period for final calculated premium | 10 days |