Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-24649 | ||
Entity Registrant Name | REPUBLIC BANCORP, INC. | ||
Entity Incorporation, State or Country Code | KY | ||
Entity Tax Identification Number | 61-0862051 | ||
Entity Address, Address Line One | 601 West Market Street | ||
Entity Address, City or Town | Louisville | ||
Entity Address, State or Province | KY | ||
Entity Address, Postal Zip Code | 40202 | ||
City Area Code | 502 | ||
Local Phone Number | 584-3600 | ||
Title of 12(b) Security | Class A Common | ||
Trading Symbol | RBCAA | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Public Float | $ 362,785,740 | ||
Auditor Name | Crowe LLP | ||
Auditor Firm ID | 173 | ||
Auditor Location | Louisville, Kentucky | ||
Entity Central Index Key | 0000921557 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 17,252,179 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,150,669 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 316,567 | $ 313,689 |
Available-for-sale debt securities, at fair value (amortized cost of $618,525 in 2023 and $663,003 in 2022, allowance for credit losses of $0 in 2023 and 2022) | 591,313 | 620,365 |
Held-to-maturity debt securities (fair value of $76,167 in 2023 and $87,357 in 2022, allowance for credit losses of $10 in 2023 and $10 in 2022) | 76,387 | 87,386 |
Equity securities with readily determinable fair value | 174 | 111 |
Mortgage loans held for sale, at fair value | 3,227 | 1,302 |
Consumer loans held for sale, at fair value | 7,914 | 4,706 |
Consumer loans held for sale, at the lower of cost or fair value | 16,094 | 13,169 |
Loans | 5,239,861 | 4,515,802 |
Allowance for credit losses | (82,130) | (70,413) |
Total loans, net | 5,157,731 | 4,445,389 |
Federal Home Loan Bank stock, at cost | 23,770 | 9,146 |
Premises and equipment, net | 33,411 | 31,978 |
Right-of-use assets | 34,691 | 37,017 |
Goodwill | 40,516 | 16,300 |
Other real estate owned | 1,370 | 1,581 |
Bank owned life insurance | 103,916 | 101,687 |
Low-income housing tax credit investments | 75,055 | 75,324 |
Other assets and accrued interest receivable | 112,755 | 76,393 |
Total assets | 6,594,891 | 5,835,543 |
Deposits: | ||
Noninterest-bearing | 1,676,998 | 1,908,768 |
Interest-bearing | 3,376,165 | 2,629,077 |
Total deposits | 5,053,163 | 4,537,845 |
Securities sold under agreements to repurchase and other short-term borrowings | 97,618 | 216,956 |
Operating lease liabilities | 35,539 | 37,809 |
Federal Home Loan Bank advances | 380,000 | 95,000 |
Low-income housing tax credit obligations | 58,619 | 43,609 |
Other liabilities and accrued interest payable | 57,196 | 47,711 |
Total liabilities | 5,682,135 | 4,978,930 |
Commitments and contingent liabilities (Footnote 12) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value | ||
Class A Common Stock, no par value, 30,000,000 shares authorized, 17,203,355 shares (2023) and 17,584,928 shares (2022) issued and outstanding; Class B Common Stock, no par value, 5,000,000 shares authorized, 2,154,562 shares (2023) and 2,159,495 shares (2022) issued and outstanding | 4,553 | 4,648 |
Additional paid in capital | 142,124 | 141,694 |
Retained earnings | 786,487 | 742,250 |
Accumulated other comprehensive (loss) income | (20,408) | (31,979) |
Total stockholders' equity | 912,756 | 856,613 |
Total liabilities and stockholders' equity | $ 6,594,891 | $ 5,835,543 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities | $ 618,525 | $ 663,003 |
Available-for-sale debt securities, allowance for credit losses | 0 | 0 |
Held-to-maturity debt securities | 76,167 | 87,357 |
Held-to-maturity debt securities, allowance for credit losses | 10 | 10 |
Loans held for investment fair value | $ 0 | $ 2 |
Preferred stock, no par value | $ 0 | $ 0 |
Class A Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, issued | 17,203,355 | 17,584,928 |
Common Stock, outstanding | 17,203,355 | 17,584,928 |
Class B Common Stock | ||
Common Stock, no par value | $ 0 | $ 0 |
Common Stock, shares authorized | 5,000,000 | 5,000,000 |
Common Stock, issued | 2,154,562 | 2,159,495 |
Common Stock, outstanding | 2,154,562 | 2,159,495 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST INCOME: | |||
Loans, including fees | $ 325,148 | $ 221,075 | $ 219,592 |
Taxable investment securities | 19,260 | 11,384 | 7,450 |
Federal Home Loan Bank stock and other | 11,655 | 11,725 | 1,364 |
Total interest income | 356,063 | 244,184 | 228,406 |
INTEREST EXPENSE: | |||
Deposits | 51,481 | 6,757 | 5,039 |
Securities sold under agreements to repurchase and other short-term borrowings | 574 | 397 | 63 |
Federal Home Loan Bank advances | 15,230 | 339 | 57 |
Subordinated note | 507 | ||
Total interest expense | 67,285 | 7,493 | 5,666 |
NET INTEREST INCOME | 288,778 | 236,691 | 222,740 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 47,624 | 22,348 | 14,808 |
NET INTEREST INCOME AFTER PROVISION | 241,154 | 214,343 | 207,932 |
NONINTEREST INCOME: | |||
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Program fees | 15,582 | 16,172 | 14,237 |
Increase in cash surrender value of bank owned life insurance | 2,719 | 2,526 | 2,242 |
Death benefits in excess of cash surrender value of life insurance | 1,728 | 979 | |
Total noninterest income | 71,457 | 89,810 | 86,575 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 115,869 | 111,240 | 110,088 |
Technology, equipment, and communication | 29,107 | 28,954 | 29,351 |
Occupancy | 13,967 | 13,014 | 13,193 |
Marketing and development | 8,446 | 6,875 | 4,390 |
FDIC insurance expense | 2,728 | 1,668 | 1,591 |
Interchange related expense | 5,965 | 4,773 | 4,960 |
Legal and professional fees | 3,204 | 4,024 | 4,924 |
Merger expense | 2,160 | ||
Other | 17,952 | 16,760 | 14,568 |
Total noninterest expense | 199,398 | 187,308 | 183,065 |
INCOME BEFORE INCOME TAX EXPENSE | 113,213 | 116,845 | 111,442 |
INCOME TAX EXPENSE | 22,839 | 25,739 | 23,831 |
Net income | 90,374 | 91,106 | 87,611 |
Service charges on deposit accounts | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 13,855 | 13,426 | 12,553 |
Net refund transfer fees | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 15,748 | 17,080 | 20,248 |
Interchange fee income | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 13,057 | 13,125 | 13,062 |
Net losses on other real estate owned | |||
NONINTEREST INCOME: | |||
Revenue under 606 | (211) | (211) | (160) |
Contract termination fee | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 5,000 | ||
Legal settlement | |||
NONINTEREST INCOME: | |||
Revenue under 606 | 13,000 | ||
Other | |||
NONINTEREST INCOME: | |||
Revenue under 606 | $ 5,437 | $ 3,496 | $ 3,420 |
Class A Common Stock | |||
BASIC EARNINGS PER SHARE: | |||
Basic earnings per share (in dollars per share) | $ 4.64 | $ 4.60 | $ 4.29 |
DILUTED EARNINGS PER SHARE: | |||
Diluted earnings per share (in dollars per share) | 4.62 | 4.59 | 4.28 |
Class B Common Stock | |||
BASIC EARNINGS PER SHARE: | |||
Basic earnings per share (in dollars per share) | 4.21 | 4.19 | 3.90 |
DILUTED EARNINGS PER SHARE: | |||
Diluted earnings per share (in dollars per share) | $ 4.20 | $ 4.17 | $ 3.89 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 90,374 | $ 91,106 | $ 87,611 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Unrealized gain (loss) on AFS debt securities | 15,380 | (45,109) | (8,908) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | 46 | (29) | 63 |
Total other comprehensive income (loss) before income tax | 15,426 | (45,138) | (8,845) |
Income tax benefit (expense) related to items of other comprehensive income | (3,855) | 11,285 | 2,210 |
Total other comprehensive income (loss), net of tax | 11,571 | (33,853) | (6,635) |
Comprehensive income | $ 101,945 | $ 57,253 | $ 80,976 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Common Stock | Additional Paid In Capital | Retained Earnings Class A Common Stock | Retained Earnings Class B Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Class A Common Stock | Class B Common Stock | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 4,899 | $ 143,637 | $ 666,278 | $ 8,509 | $ 823,323 | ||||||
Balance (in shares) at Dec. 31, 2020 | 18,697 | 2,199 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | 87,611 | 87,611 | |||||||||
Net change in accumulated other comprehensive income (loss) | (6,635) | (6,635) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (22,451) | $ (2,435) | $ (22,451) | $ (2,435) | |||||||
Stock options exercised, net of shares withheld | 13 | (155) | (142) | ||||||||
Stock options exercised, net of shares withheld (in shares) | 28 | ||||||||||
Conversion of Class B to Class A Common Shares (in shares) | 34 | (34) | |||||||||
Repurchase of Class A Common Stock | (216) | (6,831) | (40,481) | (47,528) | |||||||
Repurchase of Class A Common Stock (in shares) | (980) | ||||||||||
Net change in notes receivable on Class A Common Stock | 151 | 151 | |||||||||
Deferred director compensation expense - Class A Common Stock | 417 | 417 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 4 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 607 | 607 | |||||||||
Employee stock purchase plan - Class A Common Stock | 4 | 691 | 695 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 15 | ||||||||||
Stock-based awards, Performance stock units | 129 | 129 | |||||||||
Stock-based awards, Restricted stock | 2 | 736 | 738 | ||||||||
Stock-based awards, Restricted stock (in shares) | 18 | ||||||||||
Stock options | 574 | 574 | |||||||||
Balance at end of period at Dec. 31, 2021 | 4,702 | 139,956 | 688,522 | 1,874 | 835,054 | ||||||
Balance (in shares) at Dec. 31, 2021 | 17,816 | 2,165 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | 91,106 | 91,106 | |||||||||
Net change in accumulated other comprehensive income (loss) | (33,853) | (33,853) | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | (24,122) | (2,679) | (24,122) | (2,679) | |||||||
Stock options exercised, net of shares withheld | 2 | 50 | 52 | ||||||||
Stock options exercised, net of shares withheld (in shares) | 3 | ||||||||||
Conversion of Class B to Class A Common Shares (in shares) | 5 | (5) | |||||||||
Repurchase of Class A Common Stock | (60) | (1,940) | (10,577) | (12,577) | |||||||
Repurchase of Class A Common Stock (in shares) | (273) | ||||||||||
Net change in notes receivable on Class A Common Stock | 61 | 61 | |||||||||
Deferred director compensation expense - Class A Common Stock | 503 | 503 | |||||||||
Deferred director compensation expense - Class A Common Stock (in shares) | 6 | ||||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 725 | 725 | |||||||||
Employee stock purchase plan - Class A Common Stock | 4 | 690 | 694 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 16 | ||||||||||
Stock-based awards, Performance stock units | 152 | 152 | |||||||||
Stock-based awards, Restricted stock | 937 | 937 | |||||||||
Stock-based awards, Restricted stock (in shares) | 12 | ||||||||||
Stock options | 560 | 560 | |||||||||
Balance at end of period at Dec. 31, 2022 | 4,648 | 141,694 | 742,250 | (31,979) | 856,613 | ||||||
Balance (in shares) at Dec. 31, 2022 | 17,585 | 2,160 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net Income (Loss) | 90,374 | 90,374 | |||||||||
Net change in accumulated other comprehensive income (loss) | 11,571 | 11,571 | |||||||||
Dividends declared on Common Stock: | |||||||||||
Dividends declared on Common Stock | $ (26,002) | $ (2,933) | $ (26,002) | $ (2,933) | |||||||
Stock options exercised, net of shares withheld | 1 | 340 | (343) | (2) | |||||||
Stock options exercised, net of shares withheld (in shares) | 1 | ||||||||||
Conversion of Class B to Class A Common Shares (in shares) | 5 | (5) | |||||||||
Repurchase of Class A Common Stock | (100) | (3,319) | (16,860) | (20,279) | |||||||
Repurchase of Class A Common Stock (in shares) | (456) | ||||||||||
Net change in notes receivable on Class A Common Stock | 49 | 49 | |||||||||
Deferred director compensation expense - Class A Common Stock | 2 | 767 | 769 | ||||||||
Deferred designed key employee compensation expense - Class A Common Stock | 671 | 671 | |||||||||
Deferred designed key employee compensation expense - Class A Common Stock (In shares) | 7 | ||||||||||
Employee stock purchase plan - Class A Common Stock | 3 | 735 | 738 | ||||||||
Employee stock purchase plan - Class A Common Stock (in shares) | 16 | ||||||||||
Stock-based awards, Performance stock units | (281) | (281) | |||||||||
Stock-based awards, Restricted stock | (1) | 694 | 1 | 694 | |||||||
Stock-based awards, Restricted stock (in shares) | 45 | ||||||||||
Stock options | 774 | 774 | |||||||||
Balance at end of period at Dec. 31, 2023 | $ 4,553 | $ 142,124 | $ 786,487 | $ (20,408) | $ 912,756 | ||||||
Balance (in shares) at Dec. 31, 2023 | 17,203 | 2,155 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Common Stock | |||
Dividend declared common stock, per share (in dollars per share) | $ 1.496 | $ 1.364 | $ 1.232 |
Class B Common Stock | |||
Dividend declared common stock, per share (in dollars per share) | $ 1.360 | $ 1.240 | $ 1.120 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES: | |||
Net income | $ 90,374 | $ 91,106 | $ 87,611 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization on investment securities and low-income housing investments | 4,947 | 4,798 | 4,414 |
Net accretion and amortization on loans | (3,576) | (3,760) | (13,973) |
Unrealized and realized losses on equity securities with readily determinable fair value | (63) | 263 | 463 |
Depreciation of premises and equipment | 7,063 | 7,598 | 8,986 |
Amortization of mortgage servicing rights | 1,881 | 2,264 | 3,453 |
(Recovery) loss of mortgage servicing rights | (500) | ||
Provision for on-balance sheet exposures | 47,624 | 22,348 | 14,808 |
Provision for off-balance sheet exposures | 90 | 198 | 63 |
Net gain on sale of mortgage loans held for sale | (2,053) | (4,942) | (19,659) |
Origination of mortgage loans held for sale | (77,800) | (205,365) | (680,714) |
Proceeds from sale of mortgage loans held for sale | 77,928 | 238,398 | 717,847 |
Net gain on sale of consumer loans held for sale | (12,753) | (13,277) | (11,298) |
Origination of consumer loans held for sale | (1,056,995) | (1,045,715) | (882,180) |
Proceeds from sale of consumer loans held for sale | 1,063,615 | 1,063,801 | 875,570 |
Net gain realized on sale of other real estate owned | (51) | ||
Writedowns of other real estate owned | 211 | 211 | 211 |
Deferred compensation expense - Class A Common Stock | 1,440 | 1,228 | 1,024 |
Stock-based awards and ESPP expense - Class A Common Stock | 1,298 | 1,753 | 1,545 |
Amortization of right-of-use assets | 6,062 | 8,190 | 5,874 |
Accretion of operating lease liabilities | (6,023) | (8,223) | (6,022) |
Net gain on sale of bank premises and equipment | (399) | ||
Increase in cash surrender value of bank owned life insurance | (2,719) | (2,526) | (2,242) |
Gain from death benefits in excess of cash surrender value of BOLI | (1,728) | (979) | |
Net change in other assets and liabilities: | |||
Accrued interest receivable | (4,875) | (3,695) | 3,048 |
Accrued interest payable | 3,834 | 80 | (183) |
Other assets | (24,763) | (3,863) | (792) |
Other liabilities | (4,488) | 3,919 | (5,672) |
Net cash provided by operating activities | 108,531 | 154,789 | 100,253 |
INVESTING ACTIVITIES: | |||
Net cash proceeds paid in acquisition | (40,970) | ||
Purchases of available-for-sale debt securities | (45,000) | (329,820) | (211,545) |
Purchases of held-to-maturity debt securities | (25,000) | (75,000) | |
Proceeds from calls, maturities and paydowns of equity and available-for-sale debt securities | 106,123 | 161,561 | 230,457 |
Proceeds from calls, maturities and paydowns of held-to-maturity debt securities | 35,999 | 31,945 | 9,139 |
Proceeds from sales of available-for-sale debt securities | 0 | 0 | 0 |
Net change in outstanding warehouse lines of credit | 64,837 | 446,990 | 112,246 |
Purchase of correspondent loans, including premiums paid | (110,620) | (30) | (54) |
Net change in other loans | (493,163) | (478,928) | 207,169 |
Proceeds from redemption of Federal Home Loan Bank stock | 1,165 | 7,086 | |
Net purchases of Federal Home Loan Bank stock | (14,624) | ||
Proceeds from sales of other real estate owned | 611 | ||
Proceeds from sale of bank premises and equipment | 637 | ||
Purchase of bank owned life insurance, net of death benefits paid | (28,901) | ||
Investments in low-income housing tax partnerships | 10,145 | (8,889) | (14,507) |
Net purchases of premises and equipment | (6,896) | (3,503) | (5,785) |
Proceeds of principal and earnings from bank-owned life insurance | 2,218 | ||
Net cash used in investing activities | (516,951) | (254,509) | 306,553 |
FINANCING ACTIVITIES: | |||
Net change in deposits | 293,640 | (301,471) | 106,415 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | (119,338) | (74,011) | 79,941 |
Payments of Federal Home Loan Bank advances | (733,000) | (25,000) | (235,000) |
Proceeds from Federal Home Loan Bank advances | 1,018,000 | 95,000 | 25,000 |
Payoff of subordinated note, net of common security interest | (40,000) | ||
Repurchase of Class A Common Stock | (20,279) | (12,577) | (47,528) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 627 | 590 | 591 |
Net proceeds from Common Stock options exercised and equity awards vested | (2) | 52 | (142) |
Cash dividends paid | (28,350) | (26,145) | (24,699) |
Net cash (used in) provided by financing activities | 411,298 | (343,562) | (135,422) |
Net change in cash and cash equivalents | 2,878 | (443,282) | 271,384 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 313,689 | 756,971 | 485,587 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 316,567 | 313,689 | 756,971 |
Cash paid during the period for: | |||
Interest | 63,451 | 7,413 | 5,849 |
Income taxes | 21,487 | 21,637 | 20,069 |
SUPPLEMENTAL NONCASH DISCLOSURES: | |||
Mortgage servicing rights capitalized | 522 | 1,838 | 5,054 |
Transfers from loans to real estate acquired in settlement of loans | 64 | ||
New unfunded obligations in low-income-housing investments | 30,300 | 29,115 | 10,000 |
Right-of-use assets recorded | 3,736 | 6,382 | 1,354 |
Operating Lease Liabilities Recorded | $ 3,753 | $ 6,360 | $ 1,354 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of 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 six 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 U.S. During the fourth quarter of 2023, the Company dissolved its Captive, a Nevada-based, wholly owned insurance subsidiary of the Company. The Captive provided property and casualty insurance coverage to the Company and the Bank, as well as a group of unrelated third-party insurance captives. As of December 31, 2023, the Company was divided into six reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, RPS and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last three segments collectively constitute RPG operations. Core Bank Traditional Banking segment — ● Kentucky — 29 ● Metropolitan Louisville — 19 ● Central Kentucky — 6 ● Georgetown — 1 ● Lexington — 5 ● Northern Kentucky (Metropolitan Cincinnati) — 4 ● ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Indiana — 3 ● Southern Indiana (Metropolitan Louisville) — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Florida — 7 ● Metropolitan Tampa — 7 ● Ohio — 4 ● Metropolitan Cincinnati — 4 ● Tennessee — 4 ● Metropolitan Nashville — 4 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, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of: salaries and employee benefits; technology, equipment, and communication; occupancy; interchange related expense; marketing and development; FDIC insurance 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. Warehouse Lending segment — Mortgage Banking segment — Republic Processing Group Tax Refund Solutions 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 U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”). The majority of all the business generated by the TRS business occurs during the first half of each year. During the second half of each year, TRS generates limited revenue and incurs costs preparing for the next year’s tax filing 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 RA credit product is a loan made in conjunction with the filing of a taxpayer’s final federal tax return, which allows the taxpayer to borrow funds as an advance of a portion of their tax refund. The RA product had the following features during the first quarters of 2023 and 2022: ● Offered only during the first two months of each year; ● The taxpayer had the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $ 6,250 ; ● No requirement that the taxpayer pay for another bank product, such as an RT; ● Multiple disbursement methods available with most Tax Providers, including direct deposit, prepaid card, or check, based on the taxpayer-customer’s election; ● Repayment of the RA to the Bank deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the RA: o no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. Since its introduction in December of 2022, the ERA credit product has been structured similarly to the RA with the primary differences being the timing of when the ERAs are originated and the documentation available to underwrite the ERA credits. The ERA is originated prior to the taxpayer receiving their fiscal year taxable income documentation, e.g. , W-2, and the filing of the taxpayer’s final federal tax return. As such, the Company generally uses paystub information to underwrite the ERA. The repayment of the ERA is incumbent upon the taxpayer client returning to the Bank’s Tax Provider for the filing of their final federal tax return in order for the tax refund to potentially be received by the Bank from the federal government to pay off the advance. The ERA product had the following features during the 2023 and 2024 tax filing seasons: ● Only offered during December and the following January in connection with the upcoming first quarter tax business for each period; ● The taxpayer had the option to choose from multiple loan tiers, subject to underwriting, up to a maximum advance amount of $ 1,000 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple disbursement methods available with most Tax Providers, including direct deposit or prepaid card, based on the taxpayer-customer’s election; ● Repayment of the ERA to the Bank deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the ERA, including the failure to file a final federal tax return through a Republic Tax Provider: o no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. The Company reports fees paid for RAs, including ERAs, as interest income on loans. RAs originated related to the first quarter 2023 tax filing season were repaid, on average, within 32 days after the taxpayer’s tax return was submitted to the applicable taxing authority. RAs and ERAs do not have a contractual due date but the Company considered an RA, related to the first quarter 2023 tax filing season, delinquent if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. The number of days for delinquency eligibility is based on management’s annual analysis of tax return processing times. Provisions on RAs are estimated when advances are made. Unpaid RAs, including ERAs, related to the first quarter tax filing season of a given year are charged-off by June 30 th Related to the overall credit losses on RAs and ERAs, 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 RA and ERA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the RA and ERA 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. Settlement of Lawsuit Against Green Dot — On June 3, 2022, the Bank and Green Dot entered into the Settlement Agreement to fully resolve the Lawsuit that the Bank filed against Green Dot in the Delaware Court of Chancery on October 5, 2021. As previously disclosed in the Company’s prior SEC filings, the Lawsuit arose from Green Dot’s inability to consummate the Sale Transaction contemplated in the TRS Purchase Agreement through which Green Dot would purchase all of the assets and operations of the Bank’s Tax Refund Solutions business. In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13 million to the Bank, which was in addition to a $5 million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase Agreement. On June 6, 2022, the Bank and Green Dot filed a stipulation of dismissal of the Lawsuit with the Delaware Court of Chancery, which was effective to dismiss the Lawsuit when filed. Republic Payment Solutions segment - Issuing Solutions: The RPS division offers prepaid and debit solutions primarily marketed to the consumer industry. Prepaid solutions include the issuing of payroll and general purpose reloadable (“GPR”) cards. Characteristics of these cards include the following: ● Similar to a traditional debit card with features including traditional point of sale purchasing, ATM withdrawals and direct deposit; ● Funds associated with these products typically held in pooled accounts at the Bank with the Bank maintaining records of individual balances within these pooled accounts; and ● Payroll cards facilitate the loading of an employer’s payroll onto a card via direct deposit with GPR cards generally distributed through retail locations and reloadable through participating retail load networks. Debit solutions include the issuing of demand deposit accounts, savings accounts and/or debit cards. In addition to offering traditional point of sale purchasing, ATM withdrawals, and direct deposit options, these accounts may include overdraft protection. Money Movement: The Bank participates in traditional money movement solutions including ACH transactions, wire transfer, check processing, and the Mastercard RPPS. These capabilities are complementary to issuing within RPS, as well as, generally facilitating the movement of money for the TRS and RCS Divisions. The Company reports its share of client-related charges and fees for RPS programs under RPS 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 — ● RCS line-of-credit products – Using separate third-party service providers, the Bank originates two line-of-credit products to generally subprime borrowers in multiple states. The first of these two products (the “LOC I”) has been originated by the Bank since 2014. The second (the “LOC II”) was introduced in January 2021. o RCS’s LOC I represented the substantial majority of RCS activity during 2021 and 2022. Elastic Marketing, LLC and Elevate Decision Sciences, LLC, are third-party service providers for the product and are subject to the Bank’s oversight and supervision. Together, these companies provide the Bank with certain marketing, servicing, technology, and support services, while a separate third party provides customer support, servicing, and other services on the Bank’s behalf. The Bank is the lender for this product and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the product. The Bank sells participation interests in this product. These participation interests are a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three o In January 2021, RCS began originating balances through its LOC II. One of RCS’s existing third-party service providers, subject to the Bank’s oversight and supervision, provides the Bank with marketing services and loan servicing for the LOC II product. The Bank is the lender for this product and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this product. The Bank sells participation interests in this product. These participation interests are a 95% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three ● RCS installment loan product – Through RCS, the Bank offers installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. The same third-party service provider for RCS’s LOC II is the third-party provider for the installment loans. This third-party provider is subject to the Bank’s oversight and supervision and provides the Bank with marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment loans and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to a third-party, who is an affiliate of the Bank’s third-party service provider, generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. ● RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through three different third-party service providers. o For two of the programs, the Bank retains 100% of the receivables, with recourse in the event of default. o For the remaining program, in some instances the Bank retains 100% of the receivables originated, with recourse in the event of default, and in other instances, the Bank sells 100% of the receivables within one month of origination. Loan balances held for sale through this program are carried at the lower of cost or fair value. For the RCS line of credit and healthcare receivable products, the Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any net gains or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “RCS Program fees.” The Company has elected fair value accounting for its RCS installment loan product that it sells after an initial holding period. As a result, interest income on loans, loan origination fees, net gains or losses on sale, and mark-to-market adjustments for the RCS installment product are reported as noninterest income under “RCS Program fees.” Use of Estimates Concentration of Credit Risk The Bank’s warehouse lines of credit are secured by single family, first-lien residential real estate loans originated by the Bank’s mortgage clients across the United States. As of December 31, 2023, 31% of collateral securing warehouse lines was located in California. Earnings Concentration 12%, the RPS segment accounted for 5%, 2% and 1%, while the RCS segment accounting for 14%, 13% and 11% of total Company net revenues. For 2023, 2022, and 2021, approximately 3%, 4% and 8% of total Company net revenues (net interest income plus noninterest income) were derived from the Company’s Warehouse segment. Cash Flows Interest-Bearing Deposits in Other Financial Institutions Debt Securities Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Equity Securities — Allowance for Credit Losses on Available-for-Sale Securities — For the Company’s AFS corporate bond, the Company uses third-party PD and LGD data to estimate an ACLS, which is limited by the amount that the bond’s fair value is less than its amortized cost basis. For all other AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For other AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACLS is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACLS is recognized in other comprehensive income. Changes in ACLS are recorded as a charge or credit to the Provision. Losses are charged against the ACLS when management believes the lack of collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on AFS debt securities totaled $2 million and $2 million as of December 31, 2023 and 2022 and is excluded from the ACLS. Accrued interest on AFS debt securities is presented as a component of other assets on the Company’s balance sheet. Allowance for Credit Losses on Held-to-Maturity Securities — The Company measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities totaled $92,000 as of December 31, 2023 and 2022 and is excluded from the ACLS. Accrued interest on HTM debt securities is presented as a component of other assets on the Company’s balance sheet. The estimate of ACLS on HTM debt securities considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company classifies its HTM portfolio into the following major security types: MBS, corporate bonds, and municipal bonds. MBS securities include CMOs. Nearly all of the MBS portfolio is issued by U.S. government entities or government sponsored entities. These securities are highly rated by major rating agencies and have a long history of no credit losses. The MBS portfolio also carries ratings no lower than investment grade. The Company uses PD and LGD estimates provided by a third-party to estimate an ACLS for its corporate and municipal bond portfolios. These PD and LGD estimates are updated at least quarterly by the Company, with these estimates incorporating the most recent market expectations and forecasted information. Loans Held for Sale - Mortgage Banking Activities Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans or the purchase of TBA securities are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the future delivery of mortgage loans or the purchase of TBA securities when interest rate lock commitments are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. Mortgage loans held for sale are generally sold with the MSRs retained. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded as a component of Mortgage Banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into Mortgage Banking income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the underlying loans. MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance is recorded as an increase to income. Changes in valuation allowances are reported within Mortgage Banking income on the income statement. The fair value of the MSR portfolios is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates. A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates the fair value of MSRs generally will increase, as prepayments on the underlying loans would be expected to decline. See Footnote 15 “Mortgage Banking Activities” in this section of the filing for management’s determination of MSR impairment. Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. Loan servicing income totaled $3.4 million, $3.5 million and $3.3 million for the years ended December 31, 2023, 2022, and 2021. Late fees and ancillary fees related to loan servicing are considered nominal. Consumer Loans Held for Sale, at Fair Value Consumer Loans Held for Sale, at Lower of Cost or Fair Value Loans — Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Premiums on loans held for investment are amortized into interest income on the level-yield method over the expected life of the loan. Lease financing receivables, which are generally direct financing leases, are reported at their principal balance outstanding, including any lease residual amount, net of any unearned income, deferred loan fees and costs, and applicable ACLL. Leasing income is recognized on a basis that achieves a constant periodic rate of return on the outstanding lease financing balances over the lease terms. Interest income on mortgage and commercial loans is typically discontinued at the time the loan is 80 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan, which may define past due status by the number of days or the number of payments past due. In most cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 80 days still on accrual include smaller balance, homogeneous loans that are evaluated collectively or individually for loss. Interest accrued but not received for all classes of loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, typically a minimum of six Purchased Credit Deteriorated Loans — ● Non-accretable discount assigned by the Bank; ● Classified by either the acquired bank or the Bank as Special Mention or Substandard; ● Nonaccrual status when purchased; ● Past due 30 days or more when purchased; ● Loans that have been at least one time over 30 days past due; ● Past maturity date when purchased; ● Select loans that are cross collateralized with any loans identified above; PCD loans are recorded at the amount paid. An ACLL is determined using the same methodology as other loans held for investment. The initial ACLL determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACLL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACLL are recorded through the Provision. Allowance for Credit Losses on Loans — The ACLL is measured on a collective or pooled basis when similar risk characteristics exist. The first table of Footnote 4 illustrates the Company’s loan portfolio by ACLL risk pool. This pooling method is primarily based on the pool’s collateral type or the pool’s purpose and generally follows the Bank’s loan segmentation for regulatory reporting. For each of its loan pools, the Company uses a “static-pool” method, which analyzes historical closed pools of similar loans over their expected lives to attain a loss rate. This loss rate is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in property values or other relevant factors. A one-year forecast adjustment to the historical loss rate is based on a forecast of the U.S. national unemployment rate, which has shown a relatively strong historical correlation to the Bank’s loan losses. For its CRE loan pool, the Company uses a one-year forecast of general CRE values. Subsequent to one-year forecasts, loss rates are assumed to immediately revert back to long-term historical averages. Loans that do not share risk characteristics are evaluated on an individual basis, with the Company choosing to individually evaluate all loan modifications (formerly TDRs). Loans evaluated individually are not included in the pooled evaluation but are instead evaluated under a discounted cash flow or collateral-dependent method. A collateral dependent method is used when foreclosure is probable, with expected credit losses based on the fair value of the collateral at the reporting date, adjusted for selling costs if appropriate. Determining Expected Loan Lives: Expected credit losses are estimated over the contractual loan term, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a Loan Modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. See Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing for additional discussion regarding the Company’s ACLL. Loan Modifications — A loan modification 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. The Company measures the ACLL for loan modifications individually using the collateral method. Transfers of Financial Assets — Other Real Estate Owned 10- 13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or broker price opinions. Operating costs after acquisition are expensed. Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g., residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of similar class. Premises and Equipment, Net — three three Right of Use Assets and Operating Lease Liabilities — Regarding lease terms, the Company’s assumes the remaining lease term includes the fixed noncancelable term, plus all periods for which failure to renew the lease imposes a penalty on the Company, plus all periods for which the Company is reasonably certain to exercise a lease renewal option, plus all periods for which the Company is reasonably certain not to exercise a lease termination option. In determining whether it is reasonably certain to exercise a lease renewal or termination option, the Company considers its overall strategic plan and all economic and environmental circumstances connected to the leased property. To discount its operating lease payments and guarantees, the Compan |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES Available-for-Sale Debt Securities The following tables summarize the amortized cost, fair value, and ACLS of AFS debt securities and the corresponding amounts of related gross unrealized gains and losses recognized in AOCI: Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2023 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 421,576 $ — $ (14,543) $ — $ 407,033 Private label mortgage-backed security 443 1,330 — — 1,773 Mortgage-backed securities - residential 167,996 176 (13,462) — 154,710 Collateralized mortgage obligations 22,698 36 (1,075) — 21,659 Corporate bonds 2,012 8 — — 2,020 Trust preferred security 3,800 318 — — 4,118 Total available-for-sale debt securities $ 618,525 $ 1,868 $ (29,080) $ — $ 591,313 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2022 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 436,333 $ 1 $ (25,193) $ — $ 411,141 Private label mortgage-backed security 843 1,284 — — 2,127 Mortgage-backed securities - residential 189,312 16 (17,455) — 171,873 Collateralized mortgage obligations 22,774 21 (1,427) — 21,368 Corporate bonds 10,000 1 — — 10,001 Trust preferred security 3,741 114 — — 3,855 Total available-for-sale debt securities $ 663,003 $ 1,437 $ (44,075) $ — $ 620,365 Held-to-Maturity Debt Securities The following tables summarize the amortized cost, fair value, and ACLS of HTM debt securities and the corresponding amounts of related gross unrecognized gains and losses: Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2023 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 65,000 $ — $ (163) $ 64,837 $ — Mortgage-backed securities - residential 25 — — 25 — Collateralized mortgage obligations 6,386 48 (121) 6,313 — Corporate bonds 4,986 6 — 4,992 (10) Obligations of state and political subdivisions — — — — — Total held-to-maturity debt securities $ 76,397 $ 54 $ (284) $ 76,167 $ (10) Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2022 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 75,000 $ 106 $ — $ 75,106 $ — Mortgage-backed securities - residential 27 — (1) 26 — Collateralized mortgage obligations 7,270 54 (148) 7,176 — Corporate bonds 4,974 — (49) 4,925 (10) Obligations of state and political subdivisions 125 — (1) 124 — Total held-to-maturity debt securities $ 87,396 $ 160 $ (199) $ 87,357 $ (10) Sales and Calls of Available-for-Sale Debt Securities During 2023, 2022, and 2021 there were no material sales of AFS debt securities. The Company had AFS debt securities called during 2023, with an amortized cost of $65 million. The Company had no AFS debt securities called during 2022. The Company had AFS debt securities called during 2021, with an amortized cost of $90 million. Debt Securities by Contractual Maturity The following table presents the amortized cost and fair value of debt securities by contractual maturity as of December 31, 2023. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or early termination penalties. Securities not due at a single maturity date are detailed separately. Available-for-Sale Held-to-Maturity Debt Securities Debt Securities Amortized Fair Amortized Fair December 31, 2023 (in thousands) Cost Value Cost Value Due in one year or less $ 189,872 $ 187,479 $ 50,000 $ 49,876 Due from one year to five years 233,716 221,574 19,986 19,953 Due from five years to ten years — — — — Due beyond ten years 3,800 4,118 — — Private label mortgage-backed security 443 1,773 — — Mortgage-backed securities - residential 167,996 154,710 25 25 Collateralized mortgage obligations 22,698 21,659 6,386 6,313 Total debt securities $ 618,525 $ 591,313 $ 76,397 $ 76,167 Unrealized-Loss Analysis on Debt Securities The following tables summarize AFS debt securities in an unrealized loss position for which an ACLS had not been recorded as of December 31, 2023 and 2022, aggregated by investment category and length of time in a continuous unrealized loss position: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2023 (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 $ 26,707 $ (84) $ 380,326 $ (14,459) $ 407,033 $ (14,543) Mortgage-backed securities - residential 1,911 (23) 136,180 (13,439) 138,091 (13,462) Collateralized mortgage obligations 1,668 (52) 17,239 (1,023) 18,907 (1,075) Trust preferred security — — — — — — Total available-for-sale debt securities $ 30,286 $ (159) $ 533,745 $ (28,921) $ 564,031 $ (29,080) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2022 (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 $ 229,372 $ (7,139) $ 171,676 $ (18,054) $ 401,048 $ (25,193) Mortgage-backed securities - residential 105,274 (7,434) 65,520 (10,021) 170,794 (17,455) Collateralized mortgage obligations 20,418 (1,426) 6 (1) 20,424 (1,427) Total available-for-sale debt securities $ 355,064 $ (15,999) $ 237,202 $ (28,076) $ 592,266 $ (44,075) As of December 31, 2023, the Bank’s portfolio consisted of 191 securities, 144 of which were in an unrealized loss position. As of December 31, 2022, the Bank’s portfolio consisted of 179 securities, 163 of which were in an unrealized loss position. As of December 31, 2023 and 2022, 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. Mortgage-Backed Securities and Collateralized Mortgage Obligations As of December 31, 2023, with the exception of the $1.8 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. As of December 31, 2023 and 2022, there were gross unrealized losses of $14.5 million and $18.9 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 The Parent Company owns a floating rate trust preferred security with a $5 million par value. The coupon on this security is based on the 3-month Term SOFR rate plus 159 basis points. The Company performs an ongoing analysis of the credit risk of the underlying borrower in relation to its TRUP. Private Label Mortgage-Backed Security The Bank owns one private label mortgage-backed security with a total carrying value of $1.8 million as of December 31, 2023. 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. See additional discussion regarding the Bank’s private label mortgage-backed security in this section of the filing under Footnote 14 “Fair Value.” The following table presents a rollforward of the Bank’s private label mortgage-backed security credit losses recognized in earnings: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 1,462 $ 1,462 $ 1,462 Recovery of losses previously recorded — — — Balance, end of period $ 1,462 $ 1,462 $ 1,462 Further deterioration in economic conditions could cause the Bank to record an additional impairment charge related to credit losses of up to $443,000, which is the current gross amortized cost of the Bank’s remaining private label mortgage-backed security. Rollforward of the Allowance for Credit Losses on Debt Securities The tables below present a rollforward for 2023 and 2022 of the ACLS on AFS and HTM debt securities: ACLS Roll-forward Years Ended December 31, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 47 (37) — — 10 Total $ 10 $ — $ — $ — $ 10 $ 47 $ (37) $ — $ — $ 10 The ACLS on the Company’s HTM corporate bonds remained unchanged during 2023 based on no change to the PD and LGD estimates on these bonds. PD and LGD estimates for these bonds were elevated during 2020 due to pandemic-driven economic concerns. There were no HTM debt securities in nonaccrual status or past due 90 days or more as of December 31, 2023 and 2022. All of the Company’s HTM corporate bonds were rated investment grade as of December 31, 2023 and 2022. There were no HTM debt securities considered collateral dependent as of December 31, 2023 and 2022. Pledged Debt Securities Debt securities pledged to secure public deposits, securities sold under agreements to repurchase, and securities held for other purposes, as required or permitted by law are as follows: Years Ended December 31, (in thousands) 2023 2022 Amortized cost $ 106,169 $ 236,047 Fair value 99,530 217,562 Carrying amount 99,530 217,562 Equity Securities There were no material sales of equity securities in 2023. During 2022, the Company sold an equity security for $2.2 million and realized a loss of $55,000. There were no material sales of equity securities in 2021. The following tables present the carrying value, gross unrealized gains and losses, and fair value of equity securities with readily determinable fair values: Gross Gross Amortized Unrealized Unrealized Fair December 31, 2023 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 174 $ — $ 174 Total equity securities with readily determinable fair values $ — $ 174 $ — $ 174 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair values $ — $ 111 $ — $ 111 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 Year Ended December 31, 2023 Year Ended December 31, 2022 Years Ended December 31, (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 63 $ 63 $ — $ (59) $ (59) Community Reinvestment Act mutual fund — — — (204) — (204) Total equity securities with readily determinable fair value $ — $ 63 $ 63 $ (204) $ (59) $ (263) |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2023 | |
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. Mortgage Loans Held for Sale, at Fair Value See additional detail regarding mortgage loans originated for sale, at fair value under Footnote 15 “Mortgage Banking Activities” of this section of the filing. Consumer Loans Held for Sale, at Fair Value The Bank offers RCS installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. Balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intent to sell generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. Activity for consumer loans held for sale and carried at fair value was as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 4,706 $ 19,747 $ 3,298 Origination of consumer loans held for sale 130,185 311,704 271,430 Proceeds from the sale of consumer loans held for sale (130,772) (333,438) (260,730) Net gain on sale of consumer loans held for sale 3,795 6,693 5,749 Balance, end of period $ 7,914 $ 4,706 $ 19,747 Consumer Loans Held for Sale, at Lower of Cost or Fair Value RCS originates for sale 90% of the balances from its line-of-credit product and a portion of its healthcare receivables product. Ordinary gains or losses on the sale of these 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: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 13,169 $ 2,937 $ 1,478 Origination of consumer loans held for sale 926,810 734,011 610,750 Proceeds from the sale of consumer loans held for sale (932,843) (730,363) (614,840) Net gain on sale of consumer loans held for sale 8,958 6,584 5,549 Balance, end of period $ 16,094 $ 13,169 $ 2,937 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio follows: December 31, (in thousands) 2023 2022 Traditional Banking: Residential real estate: Owner-occupied $ 1,144,684 $ 911,427 Nonowner-occupied 345,965 321,358 Commercial real estate (1) 1,785,289 1,599,510 Construction & land development 217,338 153,875 Commercial & industrial 464,078 413,387 Lease financing receivables 88,591 10,505 Aircraft 250,051 179,785 Home equity 295,133 241,739 Consumer: Credit cards 16,654 15,473 Overdrafts 694 726 Automobile loans 2,664 6,731 Other consumer 7,428 626 Total Traditional Banking 4,618,569 3,855,142 Warehouse lines of credit* 339,723 403,560 Total Core Banking 4,958,292 4,258,702 Republic Processing Group*: Tax Refund Solutions: Refund Advances 103,115 97,505 Other TRS commercial & industrial loans 46,092 51,767 Republic Credit Solutions 132,362 107,828 Total Republic Processing Group 281,569 257,100 Total loans** 5,239,861 4,515,802 Allowance for credit losses (82,130) (70,413) Total loans, net $ 5,157,731 $ 4,445,389 * 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. (1) The approximate percentage of Nonowner-occupied CRE loans to total CRE loans was 63% , 61,% , and 61% for 2023, 2022, and 2021. The approximate percentage of Owner-occupied CRE loans to total CRE loans was 37% , 39% , and 39% for 2023, 2022, and 2021. The following table reconciles the contractually receivable and carrying amounts of loans as of December 31, 2023 and 2022: December 31, (in thousands) 2023 2022 Contractually receivable $ 5,246,621 $ 4,519,136 Unearned income (2,556) (835) Unamortized premiums 1,060 99 Unaccreted discounts (2,533) (479) Other net unamortized deferred origination (fees) and costs (2,731) (2,119) Carrying value of loans $ 5,239,861 $ 4,515,802 Credit Quality Indicators Bank procedures for assessing and maintaining credit gradings are the same whether a new or renewed loan is being underwritten, or whether an existing loan is being re-evaluated for potential credit quality concerns. The latter usually occurs upon receipt of updated financial information, or other pertinent data, which triggers a review in the loan grade. Specific Bank procedures follow: ● For new and renewed C&I, CRE, and C&D loans, the Bank’s CCAD scores and assigns the credit quality grade to the loan. ● Commercial loan officers are responsible for monitoring their respective loan portfolios and reporting any adverse material changes to senior management. When circumstances warrant a review and possible change in the credit quality grade, loan officers are required to notify the Bank’s CCAD or Special Asset division (under certain deteriorating circumstances). ● The Special Asset area of the Bank monitors throughout the month the status of all past due loans and classified loans with the respective commercial officers. These meetings are designed to give loan officers an opportunity to identify other existing loans that should be downgraded as well. ● Monthly, members of Executive Management along with managers of Commercial Lending, CCAD, Accounting, Special Assets, and Retail Collections attend a Special Asset Committee meeting. The SAC reviews all loans for the Bank graded Special Mention or worse or loans potentially subject to downgrade into these classifications and discusses the relative trends and current status of these assets. In addition, the SAC reviews all classified and potentially classified residential real estate and home equity loans. SAC also reviews the actions taken by management regarding credit-quality grades, foreclosure mitigation, loan extensions, deferrals, or forbearance, loan modifications, and collateral repossessions. Based on the information reviewed in this meeting, the SAC approves all specific loan loss allocations to be recognized by the Bank within the ACLL analysis. ● All new and renewed warehouse lines of credit are approved by the Executive Loan Committee. The credit area of the Warehouse Lending division initially recommends the credit quality grade for warehouse facilities to ELC, of which ELC may approve or amend. The Bank’s internal loan review department is the final authority on a loan’s grade and reviews all approved loan grades, which they may approve or amend based on their independent review. Monthly, the CLO reviews warehouse lending activity including data associated with the underlying collateral to the warehouse facilities, i.e., the mortgage loans associated with the balances drawn. Key performance indicators monitored include average days outstanding for each draw, average FICO credit report score for the underlying collateral, average LTV for the underlying collateral and other factors deemed relevant. On at least an annual basis, the Bank’s internal loan review department analyzes all individual loans with outstanding balances greater than $1 million that are internally classified as “Special Mention,” “ Substandard Doubtful The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating. The Bank uses the following definitions for risk ratings: Risk Grade 1 — Excellent (Pass): Risk Grade 2 — Good (Pass): Risk Grade 3 — Satisfactory (Pass): Risk Grade 4 — Satisfactory/Monitored (Pass): Risk Grade 5 — Special Mention: Purchased with Credit Deterioration Loans — Group 1: Purchased with Credit Deterioration Loans — Substandard: Risk Grade 6 — Substandard: ● Loans that possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. ● Loans are inadequately protected by the current net worth and paying capacity of the obligor. ● The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. ● Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. ● Unusual courses of action are needed to maintain a high probability of repayment. ● The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. ● The Bank is forced into a subordinated or unsecured position due to flaws in documentation. ● The Bank is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. ● There is significant deterioration in market conditions to which the borrower is highly vulnerable. Risk Grade 7 — Doubtful: ● Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. ● The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. ● The possibility of loss is high but because of certain important pending factors, which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. Risk Grade 8 — Loss: For all real estate and consumer loans, including small-dollar RPG loans, which do not meet the scope above, the Bank uses a grading system based on delinquency and nonaccrual status. Loans that are 80 days or more past due or on nonaccrual are graded Substandard. Occasionally, a real estate loan below scope may be graded as “Special Mention” or “Substandard” if the loan is cross collateralized with a classified C&I or CRE loan. Purchased loans are accounted for as any other Bank-originated loan, potentially becoming nonaccrual, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the ACLL once day-one fair values are final. Management separately monitors PCD, formerly PCI, loans and no less than quarterly reviews them against the factors and assumptions used in determining day-one fair values. In addition to its quarterly evaluation, a PCD loan is typically reviewed when it is modified or extended, or when information becomes available to the Bank that provides additional insight regarding the loan’s performance, the status of the borrower, or the quality or value of the underlying collateral. If a loan modification is performed on a PCD loan, the loan is transferred out of the PCD population. The loan may require an additional Provision if its restructured cash flows are less than management’s initial day-one expectations. PCD loans for which the Bank simply chooses to extend the maturity date are generally not considered loan modifications and remain in the PCD population. The following tables include loans by segment, risk category, and, for non-revolving loans, origination year. Regarding origination year, loan extensions and renewals are generally considered originated in the year extended or renewed unless the loan is classified as Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Residential real estate owner-occupied: Risk Rating Pass or not rated $ 346,195 $ 200,715 $ 175,030 $ 167,493 $ 230,384 $ — $ 2,474 $ 1,122,291 Special Mention 41 — — — 6,309 — — 6,350 Substandard — 2,526 1,885 1,226 10,406 — — 16,043 Doubtful — — — — — — — — Total $ 346,236 $ 203,241 $ 176,915 $ 168,719 $ 247,099 $ — $ 2,474 $ 1,144,684 YTD Gross Charge-offs $ — $ 10 $ 16 $ — $ — $ — $ — $ 26 Residential real estate nonowner-occupied: Risk Rating Pass or not rated $ 63,405 $ 69,827 $ 82,814 $ 47,395 $ 72,696 $ — $ 7,597 $ 343,734 Special Mention 170 1,971 — — 26 — — 2,167 Substandard — — 16 — 48 — — 64 Doubtful — — — — — — — — Total $ 63,575 $ 71,798 $ 82,830 $ 47,395 $ 72,770 $ — $ 7,597 $ 345,965 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 342,658 $ 439,643 $ 351,600 $ 174,093 $ 264,306 $ 32,491 $ 143,670 $ 1,748,461 Special Mention 23,852 1,020 374 — 8,998 1,716 — 35,960 Substandard — — — — 868 — — 868 Doubtful — — — — — — — — Total $ 366,510 $ 440,663 $ 351,974 $ 174,093 $ 274,172 $ 34,207 $ 143,670 $ 1,785,289 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development: Risk Rating Pass or not rated $ 107,827 $ 89,106 $ 16,936 $ 297 $ 250 $ 225 $ 2,697 $ 217,338 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,827 $ 89,106 $ 16,936 $ 297 $ 250 $ 225 $ 2,697 $ 217,338 YTD Gross Charge-offs — — — — — — — — Commercial and industrial: Risk Rating Pass or not rated $ 140,753 $ 87,497 $ 70,149 $ 13,150 $ 20,957 $ 120,069 $ 3,968 $ 456,543 Special Mention 349 423 3,473 — 1,476 542 — 6,263 Substandard 49 36 3 — 339 25 820 1,272 Doubtful — — — — — — — — Total $ 141,151 $ 87,956 $ 73,625 $ 13,150 $ 22,772 $ 120,636 $ 4,788 $ 464,078 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 45,824 $ 23,956 $ 10,265 $ 4,571 $ 2,889 $ — $ — $ 87,505 Special Mention 429 30 162 183 115 — — 919 Substandard — 102 — — 65 — — 167 Doubtful — — — — — — — — Total $ 46,253 $ 24,088 $ 10,427 $ 4,754 $ 3,069 $ — $ — $ 88,591 YTD Gross Charge-offs $ 20 $ 113 $ — $ — $ 8 $ — $ — $ 141 Aircraft: Risk Rating Pass or not rated $ 97,761 $ 55,896 $ 44,721 $ 30,628 $ 21,045 $ — $ — $ 250,051 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 97,761 $ 55,896 $ 44,721 $ 30,628 $ 21,045 $ — $ — $ 250,051 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 292,890 $ — $ 292,890 Special Mention — — — — — 235 — 235 Substandard — — — — — 2,008 — 2,008 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 295,133 $ — $ 295,133 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 2 $ — $ 2 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 3,947 $ 1,194 $ 181 $ 74 $ 3,420 $ 18,611 $ — $ 27,427 Special Mention — — — — — — — — Substandard — — — — 13 — — 13 Doubtful — — — — — — — — Total $ 3,947 $ 1,194 $ 181 $ 74 $ 3,433 $ 18,611 $ — $ 27,440 YTD Gross Charge-offs $ 9 $ 11 $ 8 $ — $ 7 $ 1,147 $ — $ 1,182 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 339,723 $ — $ 339,723 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 339,723 $ — $ 339,723 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149,207 $ — $ 149,207 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149,207 $ — $ 149,207 YTD Gross Charge-offs $ 126 $ — $ — $ — $ — $ 25,825 $ — $ 25,951 RCS: Risk Rating Pass or not rated $ 30,607 $ 7,203 $ 579 $ 454 $ 37,368 $ 54,634 $ — $ 130,845 Special Mention — — — — — — — — Substandard — — — — — 1,517 — 1,517 Doubtful — — — — — — — — Total $ 30,607 $ 7,203 $ 579 $ 454 $ 37,368 $ 56,151 $ — $ 132,362 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 13,912 $ — $ 13,912 Grand Total: Risk Rating Pass or not rated $ 1,178,977 $ 975,037 $ 752,275 $ 438,155 $ 653,315 $ 1,007,850 $ 160,406 $ 5,166,015 Special Mention 24,841 3,444 4,009 183 16,924 2,493 — 51,894 Substandard 49 2,664 1,904 1,226 11,739 3,550 820 21,952 Doubtful — — — — — — — — Grand Total $ 1,203,867 $ 981,145 $ 758,188 $ 439,564 $ 681,978 $ 1,013,893 $ 161,226 $ 5,239,861 YTD Gross Charge-offs $ 155 $ 134 $ 24 $ — $ 15 $ 40,886 $ — $ 41,214 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate owner-occupied: Risk Rating Pass or not rated $ 231,638 $ 189,495 $ 188,004 $ 71,306 $ 208,296 $ — $ — $ 888,739 Special Mention — 160 — — 7,240 — — 7,400 Substandard 1,230 1,103 1,501 1,460 9,994 — — 15,288 Doubtful — — — — — — — — Total $ 232,868 $ 190,758 $ 189,505 $ 72,766 $ 225,530 $ — $ — $ 911,427 YTD Gross Charge-offs $ 21 $ — $ — $ — $ — $ — $ — $ 21 Residential real estate nonowner-occupied: Risk Rating Pass or not rated $ 78,337 $ 91,778 $ 55,058 $ 32,803 $ 57,053 $ — $ 6,147 $ 321,176 Special Mention — — — — 32 — — 32 Substandard — 30 — — 120 — — 150 Doubtful — — — — — — — — Total $ 78,337 $ 91,808 $ 55,058 $ 32,803 $ 57,205 $ — $ 6,147 $ 321,358 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 451,327 $ 394,317 $ 210,055 $ 117,928 $ 253,213 $ 25,499 $ 99,791 $ 1,552,130 Special Mention 3,124 11,870 — 21,296 9,967 318 — 46,575 Substandard — — — — 805 — — 805 Doubtful — — — — — — — — Total $ 454,451 $ 406,187 $ 210,055 $ 139,224 $ 263,985 $ 25,817 $ 99,791 $ 1,599,510 YTD Gross Charge-offs $ — $ 9 $ — $ — $ — $ — $ — $ 9 Construction and land development: Risk Rating Pass or not rated $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial: Risk Rating Pass or not rated $ 116,483 $ 82,431 $ 17,944 $ 36,254 $ 36,367 $ 103,257 $ 4,865 $ 397,601 Special Mention 536 13,239 — — 1,756 255 — 15,786 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 117,019 $ 95,670 $ 17,944 $ 36,254 $ 38,123 $ 103,512 $ 4,865 $ 413,387 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,454 $ — $ — $ 179,575 Special Mention — — — — — — — — Substandard — — — — 210 — — 210 Doubtful — — — — — — — — Total $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,664 $ — $ — $ 179,785 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 240,704 $ — $ 240,704 Special Mention — — — — — 171 — 171 Substandard — — — — — 864 — 864 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 241,739 $ — $ 241,739 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk Rating Pass or not rated $ 415 $ 499 $ 168 $ 2,531 $ 4,328 $ 15,573 $ — $ 23,514 Special Mention — — — — — — — — Substandard — — — 9 33 — — 42 Doubtful — — — — — — — — Total $ 415 $ 499 $ 168 $ 2,540 $ 4,361 $ 15,573 $ — $ 23,556 YTD Gross Charge-offs $ — $ 5 $ — $ 11 $ — $ 1,274 $ — $ 1,290 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,659 $ — $ 11,659 RCS: Risk Rating Pass or not rated $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 50,589 $ — $ 106,679 Special Mention — — — — — — — — Substandard — — — — — 1,149 — 1,149 Doubtful — — — — — — — — Total $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 51,738 $ — $ 107,828 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,390 $ — $ 11,390 Grand Total: Risk Rating Pass or not rated $ 1,078,578 $ 860,795 $ 508,758 $ 280,501 $ 597,660 $ 990,235 $ 110,803 $ 4,427,330 Special Mention 3,660 25,269 — 21,296 18,995 744 — 69,964 Substandard 1,230 1,133 1,501 1,469 11,162 2,013 — 18,508 Doubtful — — — — — — — — Grand Total $ 1,083,468 $ 887,197 $ 510,259 $ 303,266 $ 627,817 $ 992,992 $ 110,803 $ 4,515,802 YTD Gross Charge-offs $ 21 $ 14 $ — $ 11 $ — $ 24,323 $ — $ 24,369 Subprime Lending Both the Traditional Banking segment and the RCS segment of the Company have certain classes of loans that are considered to be “subprime” strictly due to the credit score of the borrower at the time of origination. Traditional Bank loans considered subprime totaled approximately $58 million and $49 million as of December 31, 2023 and 2022. Approximately $37 million and $30 million of the outstanding Traditional Bank subprime loan portfolio as of December 31, 2023 and 2022 were originated for CRA purposes. Management does not consider these loans to possess significantly higher credit risk due to other underwriting qualifications. The RCS segment originates two short-term line-of-credit products, with the second product introduced in January 2021. The Bank sells 90% or 95% of the balances maintained through these products within three Allowance for Credit Losses The following tables present the activity in the ACLL by portfolio class for the years ended December 31, 2023, 2022, and 2021: ACLL Roll-forward Years Ended December 31, 2023 2022 Beginning CBank Charge- Ending Beginning Charge- Ending (in thousands) Balance Adjustment* Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner-occupied $ 8,909 $ — $ 1,303 $ (26) $ 151 $ 10,337 $ 8,647 $ 181 $ (21) $ 102 $ 8,909 Nonowner-occupied 2,831 — 213 — 3 3,047 2,700 129 — 2 2,831 Commercial real estate 23,739 — 1,997 — 94 25,830 23,769 (308) (9) 287 23,739 Construction & land development 4,123 — 1,937 — — 6,060 4,128 (5) — — 4,123 Commercial & industrial 3,976 — 137 — 123 4,236 3,487 218 — 271 3,976 Lease financing receivables 110 216 866 (141) 10 1,061 91 19 — — 110 Aircraft 449 — 176 — — 625 357 92 — — 449 Home equity 4,628 — 872 (2) 3 5,501 4,111 396 — 121 4,628 Consumer: Credit cards 996 — 176 (162) 64 1,074 934 140 (155) 77 996 Overdrafts 726 — 667 (896) 197 694 683 866 (1,038) 215 726 Automobile loans 87 — (32) (37) 14 32 186 (111) (3) 15 87 Other consumer 135 — 386 (87) 67 501 314 (151) (94) 66 135 Total Traditional Banking 50,709 216 8,698 (1,351) 726 58,998 49,407 1,466 (1,320) 1,156 50,709 Warehouse lines of credit 1,009 — (162) — — 847 2,126 (1,117) — — 1,009 Total Core Banking 51,718 216 8,536 (1,351) 726 59,845 51,533 349 (1,320) 1,156 51,718 Republic Processing Group: Tax Refund Solutions: Refund Advances 3,797 — 22,492 (25,823) 3,463 3,929 — 10,471 (11,505) 4,831 3,797 Other TRS commercial & industrial loans 91 — 67 (128) 31 61 96 (516) (154) 665 91 Republic Credit Solutions 14,807 — 16,529 (13,912) 871 18,295 12,948 12,081 (11,390) 1,168 14,807 Total Republic Processing Group 18,695 — 39,088 (39,863) 4,365 22,285 13,044 22,036 (23,049) 6,664 18,695 Total $ 70,413 $ 216 $ 47,624 $ (41,214) $ 5,091 $ 82,130 $ 64,577 $ 22,385 $ (24,369) $ 7,820 $ 70,413 * The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans. ACLL Roll-forward Year Ended December 31, 2021 Beginning Provision Charge- Ending (in thousands) Balance for Credit Loss offs Recoveries Balance Traditional Banking: Residential real estate: Owner-occupied $ 9,715 $ (1,461) $ — $ 393 $ 8,647 Nono |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | 5. PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation of premises and equipment follows: December 31, (in thousands) 2023 2022 Land $ 4,578 $ 3,818 Buildings and improvements 33,606 32,780 Furniture, fixtures and equipment 55,023 51,652 Leasehold improvements 24,893 21,755 Construction in progress 34 547 Total premises and equipment 118,134 110,552 Less: Accumulated depreciation and amortization 84,723 78,574 Premises and equipment, net $ 33,411 $ 31,978 Depreciation expense related to premises and equipment follows: Years Ended December 31, (in thousands) 2023 2022 2021 Depreciation expense $ 7,063 $ 7,598 $ 8,986 |
RIGHT-OF-USE ASSETS AND OPERATI
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | 6. RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES The Company records 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. As of December 31, 2023, the Company was under 50 separate and distinct operating lease contracts to lease the land and/or buildings for 37 of its offices, with 12 such operating leases contracted with a related party of the Company. As of December 31, 2023, payments on 26 of the Company’s operating leases were considered variable because such payments were adjustable based on periodic changes in the Consumer Price Index. The Company recorded three third-party lease renewals during 2023 with a total right-of-use asset value of $1.7 million and recorded five new third-party leases during 2023 with a total right-of-use asset value of $2.0 million. The Company recorded two new third-party office leases, renewed one of its existing related-party leases, and extended six of its third-party leases during 2022, with a related total right-of-use asset value of $6 million connected to this 2022 activity. 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 years ended December 31, 2023, 2022, and 2021: Years Ended December 31, (in thousands) 2023 2022 2021 Operating lease expense: Related Party: Variable lease expense $ 4,688 $ 4,831 $ 4,921 Fixed lease expense 233 207 137 Third-Party: Variable lease expense 1,464 1,001 787 Fixed lease expense 1,566 1,526 1,372 Total operating lease expense $ 7,951 $ 7,565 $ 7,217 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 6,901 $ 6,847 $ 7,286 Cash paid for variable rent payments not included in measurement of operating lease liabilities 603 603 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 December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Weighted average remaining term in years 7.61 8.44 Weighted average discount rate 2.30 % 2.10 % 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 December 31, 2023: Year (in thousands) Related Party Third-Party Total 2024 $ 3,726 $ 2,883 $ 6,609 2025 3,569 2,302 5,871 2026 3,640 1,982 5,622 2027 3,680 1,661 5,341 2028 3,541 952 4,493 Thereafter 8,210 3,790 12,000 Total undiscounted cash flows $ 26,366 $ 13,570 $ 39,936 Discount applied to cash flows (2,742) (1,655) (4,397) Total discounted cash flows reported as operating lease liabilities $ 23,624 $ 11,915 $ 35,539 |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 7. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS A progression of the balance for goodwill follows: Years Ended December 31, (in thousands) 2023 2022 2021 Beginning of period $ 16,300 $ 16,300 $ 16,300 Acquired goodwill 24,216 — — Impairment — — — End of period $ 40,516 $ 16,300 $ 16,300 The goodwill balance relates entirely to the Company’s Traditional Banking segment and Core Banking operations. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. As of December 31, 2023 and 2022, the Company’s Core Banking reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more-likely-than-not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was not more-likely-than-not that the carrying value of the reporting unit exceeded its fair value. The Company recorded a $3 million CDI asset in association with its March 15, 2023 CBank acquisition. For the years ending December 31, 2023, 2022, and 2021, aggregate CDI amortization expense follows: Years Ended December 31, (in thousands) 2023 2022 2021 Core deposit amortization expense $ 405 $ — $ 189 |
INTEREST RATE SWAPS
INTEREST RATE SWAPS | 12 Months Ended |
Dec. 31, 2023 | |
INTEREST RATE SWAPS | |
INTEREST RATE SWAPS | 8. INTEREST RATE SWAPS 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 counter party 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 has no credit risk. A summary of the Bank’s interest rate swaps related to clients as of December 31, 2023 and 2022 is included in the following table: 2023 2022 Notional Notional December 31, (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 120,442 $ 4,066 $ 40,032 $ 1,386 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 95,820 (4,867) 91,636 (6,742) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 216,262 $ (801) $ 131,668 $ (5,356) Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 95,820 4,867 91,636 6,742 Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 120,442 (4,066) 40,032 (1,386) Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 216,262 $ 801 $ 131,668 $ 5,356 Total $ 432,524 $ — $ 263,336 $ — The Bank and its counterparties are required to pledge securities or cash as collateral when either party is in a net loss position exceeding $250,000 with the other party. As of December 31, 2023 and 2022, the Bank’s counterparties had cash of $1.9 million and $3.6 million pledged to the Bank, which were included in Interest-bearing deposits on the Company’s Balance Sheet. Conversely, the Bank had . |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS | |
DEPOSITS | 9. DEPOSITS The composition of the deposit portfolio follows: December 31, (in thousands) 2023 2022 Core Bank: Demand $ 1,158,051 $ 1,336,082 Money market accounts 1,007,356 707,272 Savings 263,238 323,015 Reciprocal money market 188,078 28,635 Individual retirement accounts (1) 33,793 38,640 Time deposits, $250 and over (1) 101,787 54,855 Other certificates of deposit (1) 225,614 129,324 Reciprocal time deposits (1) 90,857 7,405 Wholesale brokered deposits (1) 88,767 — Total Core Bank interest-bearing deposits 3,157,541 2,625,228 Total Core Bank noninterest-bearing deposits 1,239,466 1,464,493 Total Core Bank deposits 4,397,007 4,089,721 Republic Processing Group: Wholesale brokered deposits (1) 199,960 — Money market accounts 18,664 3,849 Total RPG interest-bearing deposits 218,624 3,849 Noninterest-bearing prepaid card deposits 318,769 328,655 Other noninterest-bearing deposits 118,763 115,620 Total RPG noninterest-bearing deposits 437,532 444,275 Total RPG deposits 656,156 448,124 Total deposits $ 5,053,163 $ 4,537,845 (1) Represents time deposits. As of December 31, 2023, the scheduled maturities and weighted average rate of all time deposits, including brokered and reciprocal certificates of deposit, were as follows: Weighted Average Years (dollars in thousands) Principal Rate 2024 $ 601,695 4.56 % 2025 21,843 2.02 2026 93,070 5.07 2027 7,324 1.62 2028 16,846 4.01 Thereafter — — Total $ 740,778 4.51 |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 10. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE 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. As of December 31, 2023 and 2022, all securities sold under agreements to repurchase had overnight maturities. Additional information regarding securities sold under agreements to repurchase follows: December 31, (dollars in thousands) 2023 2022 Outstanding balance at end of period $ 97,618 $ 216,956 Weighted average interest rate at end of period 0.50 % 0.41 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 99,530 $ 254,296 Total securities pledged $ 99,530 $ 254,296 Additional information regarding securities sold under agreements to repurchase for the years ended December 31, 2023, 2022, and 2021 follows: Years Ended December 31, (in thousands) 2023 2022 2021 Average outstanding balance during the period $ 134,632 $ 265,188 $ 231,430 Weighted average interest rate during the period 0.43 % 0.15 % 0.03 % Maximum outstanding at any month end during the period $ 311,035 $ 303,315 $ 432,047 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Dec. 31, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 11. FEDERAL HOME LOAN BANK ADVANCES As of December 31, 2023 and 2022, FHLB advances were as follows: December 31, (in thousands) 2023 2022 Overnight advances $ 110,000 $ 75,000 Fixed interest rate advances 270,000 20,000 Total FHLB advances $ 380,000 $ 95,000 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. As of December 31, 2023 and 2022, Republic had available borrowing capacity of $730 million and $899 million, respectively, from the FHLB. In addition to its borrowing capacity with the FHLB, Republic also had unsecured lines of credit totaling $100 million and $125 million, respectively, available through various other financial institutions as of December 31, 2023 and 2022. 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 2024 $ 110,000 5.38 % 2025 — — 2026 30,000 4.82 2027 80,000 4.01 2028 160,000 4.39 Total $ 380,000 4.63 % Information regarding overnight FHLB advances follows: December 31, (dollars in thousands) 2023 2022 Outstanding balance at end of period $ 110,000 $ 75,000 Weighted average interest rate at end of period 5.38 % 4.36 % Years Ended December 31, (dollars in thousands) 2023 2022 2021 Average outstanding balance during the period $ 197,185 $ 4,630 $ 28,767 Weighted average interest rate during the period 5.06 % 0.53 % 0.15 % Maximum outstanding at any month end during the period $ 485,000 $ 75,000 $ 25,000 The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: December 31, (in thousands) 2023 2022 First-lien, single family residential real estate $ 1,345,752 $ 1,106,287 Home equity lines of credit 266,389 219,644 Multi-family commercial real estate 133,565 — |
OFF BALANCE SHEET RISKS, COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 12. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES Commitments to Extend Credit 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. 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 year ended: December 31, (in thousands) 2023 2022 Unused warehouse lines of credit $ 623,277 $ 733,940 Unused home equity lines of credit 446,006 410,057 Unused loan commitments - other 1,159,284 951,021 Standby letters of credit 11,012 9,735 FHLB letter of credit — 643 Total commitments $ 2,239,579 $ 2,105,396 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. The following tables present a rollforward of the ACLC for years ended December 31, 2023 and 2022: ACLC Roll-forward Years Ended December 31, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 190 $ (74) $ — $ — $ 116 $ 154 $ 36 $ — $ — $ 190 Unused home equity lines of credit 332 (277) — — 55 247 85 — — 332 Unused construction lines of credit 384 436 — — 820 383 1 — — 384 Unused loan commitments - other 344 5 — — 349 268 76 — — 344 Total $ 1,250 $ 90 $ — $ — $ 1,340 $ 1,052 $ 198 $ — $ — $ 1,250 The Company increased its ACLC $90 million during 2023 primarily due to an increase in unused construction lines, which was partially offset by a decrease in home equity lines. |
STOCKHOLDERS' EQUITY AND REGULA
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | 13. STOCKHOLDERS’ EQUITY AND REGULATORY CAPITAL MATTERS Common Stock — Dividend Restrictions Regulatory Capital Requirements Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2023 and 2022, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. For prompt corrective action, the regulations in accordance with Basel III define “well capitalized” as a 10.0% Total Risk-Based Capital ratio, a 6.5% Common Equity Tier 1 Risk-Based Capital ratio, an 8.0% Tier 1 Risk-Based Capital ratio, and a 5.0% Tier 1 Leverage ratio. Additionally, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, the Company and Bank must hold a capital conservation buffer of 2.5% composed of Common Equity Tier 1 Risk-Based Capital above their minimum risk-based capital requirements. Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 968,844 16.10 % $ 481,522 8.00 % NA NA Republic Bank & Trust Company 931,923 15.50 481,147 8.00 $ 601,433 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 893,658 14.85 270,856 4.50 NA NA Republic Bank & Trust Company 856,744 14.25 270,645 4.50 390,932 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 893,658 14.85 361,141 6.00 NA NA Republic Bank & Trust Company 856,744 14.25 360,860 6.00 481,147 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 893,658 13.89 257,442 4.00 NA NA Republic Bank & Trust Company 856,744 13.25 258,697 4.00 323,371 5.00 Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 941,865 17.92 % $ 420,514 8.00 % NA NA Republic Bank & Trust Company 904,592 17.23 420,040 8.00 $ 525,050 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 877,735 16.70 236,539 4.50 NA NA Republic Bank & Trust Company 840,462 16.01 236,273 4.50 341,283 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 877,735 16.70 315,386 6.00 NA NA Republic Bank & Trust Company 840,462 16.01 315,030 6.00 420,040 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 877,735 14.81 237,106 4.00 NA NA Republic Bank & Trust Company 840,462 14.09 238,578 4.00 298,222 5.00 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE | |
FAIR VALUE | 14. 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: Level 2: Level 3: 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: The Bank’s U.S. Treasury securities are based on quoted market prices (Level 1 inputs) and considered highly liquid. 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 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 as of December 31, 2023. 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: 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: Consumer loans held for sale, at fair value: Consumer loans held for investment, at fair value: Mortgage Banking derivatives Interest rate swap agreements: Collateral-dependent loans: Other real estate owned: Appraisals for collateral-dependent loans, impaired premises and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g., residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of similar class. Mortgage servicing rights: Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements at December 31, 2023 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 $ 177,784 $ 229,249 $ — $ 407,033 Private label mortgage-backed security — — 1,773 1,773 Mortgage-backed securities - residential — 154,710 — 154,710 Collateralized mortgage obligations — 21,659 — 21,659 Corporate bonds — 2,020 — 2,020 Trust preferred security — — 4,118 4,118 Total available-for-sale debt securities $ 177,784 $ 407,638 $ 5,891 $ 591,313 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 174 $ — $ 174 Community Reinvestment Act mutual fund — — — — Total equity securities with readily determinable fair value $ — $ 174 $ — $ 174 Mortgage loans held for sale $ — $ 3,227 $ — $ 3,227 Consumer loans held for sale — — 7,914 7,914 Rate lock commitments — 243 — 243 Interest rate swap agreements — 8,933 — 8,933 Financial liabilities: Mandatory forward contracts $ — $ 61 $ — $ 61 Interest rate swap agreements — 8,933 — 8,933 Fair Value Measurements at December 31, 2022 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 $ 193,385 $ 217,756 $ — $ 411,141 Private label mortgage-backed security — — 2,127 2,127 Mortgage-backed securities - residential — 171,873 — 171,873 Collateralized mortgage obligations — 21,368 — 21,368 Corporate bonds — 10,001 — 10,001 Trust preferred security — — 3,855 3,855 Total available-for-sale debt securities $ 193,385 $ 420,998 $ 5,982 $ 620,365 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair value $ — $ 111 $ — $ 111 Mortgage loans held for sale $ — $ 1,302 $ — $ 1,302 Consumer loans held for sale — — 4,706 4,706 Consumer loans held for investment — — 2 2 Rate lock commitments — 2 — 2 Interest rate swap agreements — 8,127 — 8,127 Financial liabilities: Mandatory forward contracts $ — $ 67 $ — $ 67 Interest rate swap agreements — 8,127 — 8,127 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 years ended December 31, 2023 and 2022. 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): Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 2,127 $ 2,731 $ 2,957 Total gains or losses included in earnings: Net change in unrealized gain (loss) 46 (29) 63 Principal paydowns (400) (575) (289) Balance, end of period $ 1,773 $ 2,127 $ 2,731 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. The following tables present quantitative information about recurring Level 3 fair value measurements as of December 31, 2023 and 2022: Fair Valuation December 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 1,773 Discounted cash flow (1) Constant prepayment rate 3.9% - 4.5% (2) Probability of default 1.8% - 9.4% (3) Loss severity 25% - 35% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,127 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 25% - 35% Trust Preferred Security The Company invested in its TRUP in November 2015. 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) for the years ending December 31, 2023, 2022, and 2021: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 3,855 $ 3,847 $ 3,800 Total gains or losses included in earnings: Discount accretion 59 57 53 Net change in unrealized gain (loss) 204 (49) (6) Balance, end of period $ 4,118 $ 3,855 $ 3,847 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 loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more nor on nonaccrual as of December 31, 2023 and 2022. As of December 31, 2023 and 2022, the aggregate fair value, contractual balance (including accrued interest), and unrealized gain was as follows: December 31, (in thousands) 2023 2022 Aggregate fair value $ 3,227 $ 1,302 Contractual balance 3,168 1,265 Unrealized gain 59 37 The total amount of gains and losses from changes in fair value of mortgage loans held for sale included in earnings for 2023, 2022, and 2021 are presented in the following table: Years Ended December 31, (in thousands) 2023 2022 2021 Interest income $ 282 $ 519 $ 1,081 Change in fair value 22 (688) (1,361) Total included in earnings $ 304 $ (169) $ (280) Consumer Loans Held for Sale 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 December 31, 2023 and 2022. The significant unobservable inputs in the fair value measurement of the Bank’s short-term installment loans are the net contractual premiums and level of loans sold at a discount price. Significant fluctuations in any of those 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 December 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 7,914 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 4,706 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% The aggregate fair value, contractual balance, and unrealized gain on consumer loans held for sale, at fair value, were as follows: December 31, (in thousands) 2023 2022 Aggregate fair value $ 7,914 $ 4,706 Contractual balance 7,964 4,734 Unrealized loss (50) (28) The total amount of net gains from changes in fair value included in earnings for consumer loans held for sale, at fair value, are presented in the following table: Years Ended December 31, (in thousands) 2023 2022 2021 Interest income $ 4,242 $ 9,970 $ 7,708 Change in fair value (22) (142) 100 Total included in earnings $ 4,220 $ 9,828 $ 7,808 Assets measured at fair value on a non-recurring basis Fair Value Measurements at December 31, 2023 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 Collateral-dependent loans: Residential real estate: Owner-occupied $ — $ — $ 1,580 $ 1,580 Commercial real estate — — 795 795 Home equity — — 104 104 Total collateral-dependent loans* $ — $ — $ 2,479 $ 2,479 Other real estate owned: Commercial real estate $ — $ — $ 1,370 $ 1,370 Total other real estate owned $ — $ — $ 1,370 $ 1,370 Fair Value Measurements at December 31, 2022 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 Collateral-dependent loans: Residential real estate: Owner-occupied $ — $ — $ 1,456 $ 1,456 Commercial real estate — — 906 906 Total collateral-dependent loans* $ — $ — $ 2,362 $ 2,362 Other real estate owned: Residential real estate $ — $ — $ 1,581 $ 1,581 Total other real estate owned $ — $ — $ 1,581 $ 1,581 * The difference between the carrying value and the fair value of collateral dependent or 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 December 31, 2023 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner-occupied $ 1,580 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 27% ( 4% ) Collateral-dependent loans - commercial real estate $ 795 Sales comparison approach Adjustments determined for differences between comparable sales 11% ( 11% ) Collateral-dependent loans - home equity $ 104 Sales comparison approach Adjustments determined for differences between comparable sales 5% ( 5% ) Other real estate owned - commercial real estate $ 1,370 Sales comparison approach Adjustments determined for differences between comparable sales 39% (39%) Range Fair Valuation Unobservable (Weighted December 31, 2022 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner-occupied $ 1,456 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 41% (11%) Collateral-dependent loans - commercial real estate $ 906 Sales comparison approach Adjustments determined for differences between comparable sales 16% (16%) Other real estate owned - commercial real estate $ 1,581 Sales comparison approach Adjustments determined for differences between comparable sales 39% Collateral Dependent Loans Collateral-dependent loans are generally measured for loss 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 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 loss 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 review generally results in a partial charge-off of the loan if fair value, less selling costs, is below the loan’s carrying value. Collateral-dependent loans are valued within Level 3 of the fair value hierarchy. Years Ended December 31, (in thousands) 2023 2022 2021 Provision on collateral-dependent loans $ (4) $ 7 $ 960 Other Real Estate Owned Other real estate owned, which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value at the reporting date. Fair value is determined from external appraisals or BPOs using judgments and estimates of external professionals. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3. Details of other real estate owned carrying value and write downs follow: December 31, (in thousands) 2023 2022 2021 Other real estate owned carried at fair value $ 1,370 $ 1,581 $ 1,792 Other real estate owned carried at cost — — — Total carrying value of other real estate owned $ 1,370 $ 1,581 $ 1,792 Other real estate owned write-downs during the years ended $ 211 $ 211 $ 211 Financial Instruments The carrying amounts and estimated exit price fair values of financial instruments, as of December 31, 2023 and 2022 follow: Fair Value Measurements at December 31, 2023: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 316,567 $ 316,567 $ — $ — $ 316,567 Available-for-sale debt securities 591,313 177,784 407,638 5,891 591,313 Held-to-maturity debt securities 76,387 — 76,167 — 76,167 Equity securities with readily determinable fair values 174 — 174 — 174 Mortgage loans held for sale, at fair value 3,227 — 3,227 — 3,227 Consumer loans held for sale, at fair value 7,914 — — 7,914 7,914 Consumer loans held for sale, at the lower of cost or fair value 16,094 — — 16,094 16,094 Loans, net 5,157,731 — — 4,874,974 4,874,974 Federal Home Loan Bank stock 23,770 — — — NA Accrued interest receivable 18,447 — 4,097 14,350 18,447 Mortgage servicing rights 7,411 — 16,054 — 16,054 Rate lock commitments 243 — 243 — 243 Interest rate swap agreements 8,933 — 8,933 — 8,933 Liabilities: Noninterest-bearing deposits $ 1,676,998 $ — $ 1,676,998 $ — $ 1,676,998 Transaction deposits 2,924,114 — 2,924,114 — 2,924,114 Time deposits 452,051 — 446,218 — 446,218 Securities sold under agreements to repurchase and other short-term borrowings 99,530 — 99,530 — 99,530 Federal Home Loan Bank advances 380,000 — 382,062 — 382,062 Accrued interest payable 4,073 — 4,073 — 4,073 Rate lock commitments 243 — 243 — 243 Mandatory forward contracts 61 — 61 — 61 Interest rate swap agreements 8,933 — 8,933 — 8,933 NA - Not applicable Fair Value Measurements at December 31, 2022: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 313,689 $ 313,689 $ — $ — $ 313,689 Available-for-sale debt securities 620,365 193,385 420,998 5,982 620,365 Held-to-maturity debt securities 87,386 — 87,357 — 87,357 Equity securities with readily determinable fair values 111 — 111 — 111 Mortgage loans held for sale, at fair value 1,302 — 1,302 — 1,302 Consumer loans held for sale, at fair value 4,706 — — 4,706 4,706 Consumer loans held for sale, at the lower of cost or fair value 13,169 — — 13,169 13,169 Loans, net 4,445,389 — — 4,276,423 4,276,423 Federal Home Loan Bank stock 9,146 — — — NA Accrued interest receivable 13,572 — 2,462 11,110 13,572 Mortgage servicing rights 8,769 — 17,592 — 17,592 Rate lock commitments 2 — 2 — 2 Interest rate swap agreements 8,127 — 8,127 — 8,127 Liabilities: Noninterest-bearing deposits $ 1,908,768 $ — $ 1,908,768 $ — $ 1,908,768 Transaction deposits 2,398,853 — 2,398,853 — 2,398,853 Time deposits 230,224 — 223,912 — 223,912 Securities sold under agreements to repurchase and other short-term borrowings 216,956 — 216,956 — 216,956 Federal Home Loan Bank advances 95,000 — 93,044 — 93,044 Accrued interest payable 239 — 239 — 239 Mandatory forward contracts 67 — 67 — 67 Interest rate swap agreements 8,127 — 8,127 — 8,127 NA - Not applicable |
MORTGAGE BANKING ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
MORTGAGE BANKING ACTIVITIES | |
MORTGAGE BANKING ACTIVITIES | 15. MORTGAGE BANKING ACTIVITIES Mortgage Banking activities primarily include residential mortgage originations and servicing. Activity for mortgage loans held for sale was as follows: December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 1,302 $ 29,393 $ 46,867 Origination of mortgage loans held for sale 77,800 205,365 680,714 Proceeds from the sale of mortgage loans held for sale (77,928) (238,398) (717,847) Net gain on sale of mortgage loans held for sale 2,053 4,942 19,659 Balance, end of period $ 3,227 $ 1,302 $ 29,393 Mortgage loans serviced for others are not reported as assets. The following table provides information for loans serviced by the Bank for the FHLMC and FNMA as of December 31, 2023 and 2022: December 31, (in thousands) 2023 2022 FHLMC $ 899,444 $ 966,677 FNMA 417,475 420,637 Total $ 1,316,919 $ 1,387,314 Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and processing foreclosures. Custodial escrow account balances maintained in connection with serviced loans were approximately $8 million and $11 million as of December 31, 2023 and 2022. The following table presents the components of Mortgage Banking income: Years Ended December 31, (in thousands) 2023 2022 2021 Net gain realized on sale of mortgage loans held for sale $ 1,784 $ 7,164 $ 23,114 Net change in fair value recognized on loans held for sale 22 (688) (1,361) Net change in fair value recognized on rate lock loan commitments 242 (1,402) (3,136) Net change in fair value recognized on forward contracts 5 (132) 1,042 Net gain recognized 2,053 4,942 19,659 Loan servicing income 3,370 3,518 3,288 Amortization of mortgage servicing rights (1,881) (2,264) (3,453) Change in mortgage servicing rights valuation allowance — — 500 Net servicing income recognized 1,489 1,254 335 Total Mortgage Banking income $ 3,542 $ 6,196 $ 19,994 Activity for capitalized mortgage servicing rights was as follows: (in thousands) 2023 2022 2021 Balance, beginning of period $ 8,770 $ 9,196 $ 7,095 Additions 522 1,838 5,054 Amortized to expense (1,881) (2,264) (3,453) Change in valuation allowance — — 500 Balance, end of period $ 7,411 $ 8,770 $ 9,196 Activity in the valuation allowance for capitalized mortgage servicing rights follows: Years Ended December 31, (in thousands) 2023 2022 2021 Beginning valuation allowance $ — $ — $ 500 Charge during the period — — (500) Ending valuation allowance $ — $ — $ — Other information relating to mortgage servicing rights follows: December 31, (in thousands) 2023 2022 Fair value of mortgage servicing rights portfolio $ 16,054 $ 17,145 Monthly weighted average prepayment rate of unpaid principal balance* 128 % 127 % Discount rate 10.26 % 10.21 % Weighted average foreclosure rate 0.16 % 0.10 % Weighted average life in years 7.52 7.54 * Rates are applied to individual tranches with similar characteristics. Estimated future amortization expense of the MSR portfolio (net of any applicable impairment charge) follows; however, actual amortization expense will be impacted by loan payoffs and changes in estimated lives that occur during each respective year: Year (in thousands) 2024 $ 1,007 2025 999 2026 996 2027 939 2028 843 2029 717 Thereafter 1,910 Total $ 7,411 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 or to purchase TBA securities 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 or purchase TBA securities. 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: 2023 2022 Notional Notional December 31, (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 3,168 $ 3,227 $ 1,265 $ 1,302 Included in other assets: Rate lock loan commitments $ 9,275 $ 243 $ 4,118 $ 2 Mandatory forward contracts — — — — Included in other liabilities: Mandatory forward contracts $ 9,092 $ 61 $ 4,009 $ 67 |
STOCK PLANS AND STOCK BASED COM
STOCK PLANS AND STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
STOCK PLANS AND STOCK BASED COMPENSATION | 16. STOCK PLANS AND STOCK BASED COMPENSATION In January 2015, the Company’s Board of Directors adopted the Republic Bancorp, Inc. 2015 Stock Incentive Plan (the “2015 Plan”), which replaced the 2005 Stock Incentive Plan. The number of authorized shares under the 2015 Plan is fixed at 3,000,000, with such number subject to adjustment in the event of certain events, such as stock dividends, stock splits, or the like. There is a minimum three-year vesting period for awards granted to employees under the 2015 Plan that vest based solely on the completion of a specified period of service, with options generally exercisable three All shares issued under the 2015 Plan were from authorized and reserved unissued shares. The Company has a sufficient number of authorized and reserved unissued shares to satisfy all anticipated option exercises. There are no Class B stock options outstanding or available for exercise under the Company’s plans. Stock Options The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes based stock option valuation model. This model requires the input of subjective assumptions that will usually have a significant impact on the fair value estimate. Expected volatilities are based on historical volatility of Republic’s stock and other factors. Expected dividends are based on dividend trends and the market price of Republic’s stock price at grant. Republic uses historical data to estimate option exercises and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. All share-based payments to employees, including grants of employee stock options, are recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values. The fair value of stock options granted was determined using the following weighted average assumptions as of grant date: Years Ended December 31, 2023 2022 2021 Risk-free interest rate 3.86 % 1.35 % 0.20 % Expected dividend yield 3.19 2.50 3.18 Expected stock price volatility 33.14 32.12 31.71 Expected life of options (in years) 4 4 4 Estimated fair value per share $ 9.65 $ 10.41 $ 6.26 The following table summarizes stock option activity from January 1, 2022 through December 31, 2023: Weighted Weighted Average Options Average Remaining Aggregate Class A Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding, January 1, 2022 460,502 $ 37.54 Granted 54,281 50.34 Exercised (5,250) 34.17 Forfeited or expired (44,500) 40.32 Outstanding, December 31, 2022 465,033 $ 38.81 2.25 $ 2,322,635 Outstanding, January 1, 2023 465,033 $ 38.81 Granted 69,617 42.74 Exercised (10,000) 46.08 Forfeited or expired (64,000) 45.09 Outstanding, December 31, 2023 460,650 $ 38.37 1.87 $ 7,734,879 Unvested 287,148 $ 38.76 2.42 $ 4,708,333 Exercisable (vested) at December 31, 2023 173,502 $ 37.72 0.96 $ 3,026,546 Information related to the stock options during each year follows: Years Ended December 31, (in thousands, except per share data) 2023 2022 2021 Total intrinsic value of options exercised $ 58 $ 57 $ 1,335 Total cash received from options exercised, net of shares redeemed (2) 52 (142) Total tax benefit of options exercised 1 6 223 Loan balances of employees that were originated solely to fund stock option exercises were as follows: December 31, (in thousands) 2023 2022 Outstanding loans $ 129 $ 178 Restricted Stock Awards Restricted stock awards generally vest within three The following table summarizes all restricted stock activity from January 1, 2022 through December 31, 2023: Restricted Weighted-Average Weighted-Average Stock Awards Grant Date Remaining Contractual Class A Shares Fair Value Term (years) Outstanding, January 1, 2022 56,059 $ 39.12 Granted 12,174 46.05 Forfeited — — Earned and issued (3,500) 37.74 Outstanding, December 31, 2022 64,733 $ 40.49 2.25 Outstanding, January 1, 2023 64,733 $ 40.49 Granted 55,157 43.60 Forfeited (1,470) 49.08 Earned and issued (31,354) 37.56 Outstanding, December 31, 2023 87,066 $ 43.37 1.98 Unvested 87,066 $ 43.37 1.98 The fair value of the restricted stock awards is based on the closing stock price on the date of grant with the associated expense amortized to compensation expense over the vesting period, generally three . The total fair value of restricted shares that vested during 2023, 2022, and 2021 was approximately Performance Stock Units Performance stock units are earned within one year of issuance and vest within three years of issuance, with accelerated vesting due to “change in control” or “death or disability of a participant” as defined and outlined in the 2015 Plan. The following table summarizes all PSU activity from January 1, 2022 through December 31, 2023: Performance Stock Units Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2022 — $ — Granted 8,874 51.39 Forfeited (8,874) 51.39 Earned and issued — — Outstanding, December 31, 2022 — $ — Outstanding, January 1, 2023 — $ — Granted 10,999 42.74 Forfeited (10,999) 42.74 Earned and issued — — Outstanding, December 31, 2023 — $ — Expense Related to Stock Incentive Plans The Company recorded expense related to stock incentive plans for the years ended December 31, 2023, 2022, and 2021 as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Stock option expense $ 774 $ 560 $ 574 Restricted stock award expense 829 937 738 Performance stock unit expense (281) 152 129 Total expense $ 1,322 $ 1,649 $ 1,441 Unrecognized expenses related to unvested awards under stock incentive plans are estimated as follows: Stock Restricted Year (in thousands) Options Stock Awards Total 2024 $ 489 $ 1,052 $ 1,541 2025 263 844 1,107 2026 18 539 557 2027 5 8 13 2028 — — — Total $ 775 $ 2,443 $ 3,218 Deferred Compensation On April 19, 2018, the shareholders of Republic approved an amendment and restatement of the Non-Employee Director and Key Employee Deferred Compensation Plan (the “Plan”). Prior to the Plan’s 2018 amendment and restatement, only directors participated in the plan, with the 2018 amendment and restatement initiating key-employee participation. The Plan provides non-employee directors and designated key employees the ability to defer compensation and have those deferred amounts paid later in the form of Company Class A Common shares based on the shares that could have been acquired as the deferrals were made. The Company maintains a bookkeeping account for each director or key-employee participant, and at the end of each fiscal quarter, deferred compensation is converted to “stock units” equal to the amount of compensation deferred during the quarter divided by the quarter-end fair market value of the Company’s Class A Common stock. Stock units for each participant’s account are also credited with an amount equal to the cash dividends that would have been paid on the number of stock units in the account if the stock units were deemed to be outstanding shares of stock. Any dividends credited are converted into additional stock units at the end of the fiscal quarter in which the dividends were paid. DIRECTORS Members of the Board of Directors may defer board and committee fees from two The following table presents information on director deferred compensation under the Plan for the periods presented: Outstanding Weighted-Average Stock Market Price Units at Date of Deferral Outstanding, January 1, 2022 86,800 $ 29.98 Deferred fees and dividend equivalents converted to stock units 18,241 46.58 Stock units converted to Class A Common Shares (5,814) 49.51 Outstanding, December 31, 2022 99,227 $ 31.43 Outstanding, January 1, 2023 99,227 $ 31.43 Deferred fees and dividend equivalents converted to stock units 17,811 43.14 Stock units converted to Class A Common Shares (3,635) 33.29 Outstanding, December 31, 2023 113,403 $ 35.65 Vested 113,403 $ 35.65 Director deferred compensation has been expensed as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Director deferred compensation expense $ 777 $ 503 $ 417 KEY EMPLOYEES Designated key employees may defer a portion of their base salaries on a pre-tax basis under the Plan, with the Company matching employee deferrals up to a prescribed limit. With limited exception, the Company match amount remains unvested until December 31 st The following table presents information on key-employee deferred compensation under the Plan for the periods presented: Outstanding Weighted-Average Weighted-Average Stock Market Price Remaining Contractual Units at Date of Deferral Term (years) Outstanding, January 1, 2022 65,318 $ 40.57 Deferred base salaries and dividend equivalents converted to stock units 9,389 43.08 Matching stock units credited 9,315 43.08 Matching stock units forfeited (1,151) 48.25 Stock units converted to Class A Common Shares — — Outstanding, December 31, 2022 82,871 $ 41.03 3.13 Outstanding, January 1, 2023 82,871 $ 41.03 Deferred base salaries and dividend equivalents converted to stock units 10,646 45.03 Matching stock units credited 10,578 44.90 Matching stock units forfeited (2,753) 41.09 Stock units converted to Class A Common Shares (5,084) 43.01 Outstanding, December 31, 2023 96,258 $ 42.17 2.84 Vested 59,626 $ 42.60 3.11 Unvested 36,632 $ 41.48 2.40 The following presents key-employee deferred compensation expense for the period presented: Years Ended December 31, (in thousands) 2023 2022 2021 Key-employee - base salary $ 484 $ 408 $ 429 Key-employee - employer match 250 317 178 Total $ 734 $ 725 $ 607 Employee Stock Purchase Plan On April 19, 2018, the shareholders of Republic approved the ESPP. Under the ESPP, participating employees may purchase shares of the Company Class A Common Stock through payroll withholdings at a purchase price that cannot be less than 85% of the lower of the fair market value of the Company’s Class A Common Stock on the first trading day of each offering period, or on the last trading day of each offering period. Participating employees were able purchase the Company’s Class A Common Stock through the ESPP at: ● 85% of fair market value on the last day of the three-month offering periods ended March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021, March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023, and December 31, 2023. The following presents expense under the ESPP for the period presented: Years Ended December 31, (in thousands) 2023 2022 2021 ESPP expense $ 111 $ 104 $ 104 |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
BENEFIT PLANS | |
BENEFIT PLANS | 17. BENEFIT PLANS 401(k) Plan Republic maintains a 401(k) plan for eligible employees. All eligible employees are automatically enrolled at 6% of their eligible compensation within 30 days of their date of hire unless the eligible employee elects to enroll sooner. Participants in the plan have the option to contribute from 1% to 75% of their annual eligible compensation, up to the maximum allowed by the IRS. The Company matches 100% of participant contributions up to 1% and an additional 75% for participant contributions between 2% and 5% of each participant’s annual eligible compensation. Participants are fully vested after two years of employment. Republic may also contribute discretionary matching contributions in addition to the matching contributions if the Company achieves certain operating goals. Normal and discretionary contributions for each of the periods ended were as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Employer matching contributions $ 3,136 $ 3,096 $ 3,373 Discretionary employer bonus matching contributions — — — Supplemental Executive Retirement Plan In association with its May 17, 2016 Cornerstone acquisition, the Company inherited a SERP. The SERP requires the Company to pay monthly benefits following retirement of the SERP’s four participants. The Company accrues the present value of such benefits monthly. The SERP liability was approximately $2 million as of December 31, 2023 and 2022. Expense under the SERP was $0, $0, and $232,000 for the years ended December 31, 2023, 2022, and 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES Allocation of federal and state income tax between current and deferred portion is as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Current expense: Federal $ 22,015 $ 24,537 $ 19,348 State 5,237 5,939 4,169 Deferred expense: Federal (3,329) (4,273) (246) State (1,084) (464) 560 Total $ 22,839 $ 25,739 $ 23,831 Effective tax rates differ from federal statutory rate applied to income before income taxes due to the following: Years Ended December 31, 2023 2022 2021 Federal corporate tax rate 21.00 % 21.00 % 21.00 % Effect of: State taxes, net of federal benefit 2.90 3.70 3.32 Low-income housing and R&D tax credits (2.67) (1.88) (1.76) Nontaxable income (1.38) (1.00) (1.06) Tax benefit of vesting employee benefits (0.06) (0.01) (0.20) Other, net 0.38 0.22 0.08 Effective tax rate 20.17 22.03 21.38 Year-end DTAs and DTLs were due to the following: December 31, (in thousands) 2023 2022 Deferred tax assets: Allowance for credit losses $ 20,654 $ 17,427 Operating lease liabilities 8,940 9,362 Accrued expenses 6,285 5,901 Net operating loss carryforward(1) 1,191 1,371 Acquisition fair value adjustments 55 101 Other-than-temporary impairment 582 567 R&D Capitalization 4,492 2,271 Unrealized investment security losses 6,803 10,657 Other 2,337 2,248 Total deferred tax assets 51,339 49,905 Deferred tax liabilities: Right of use assets - operating leases (8,726) (9,166) Depreciation and amortization (2,805) (2,835) Federal Home Loan Bank dividends (757) (745) Deferred loan costs (2,732) (2,153) Lease Financing Receivables (3,058) (1,996) Mortgage servicing rights (1,864) (2,172) Unrealized investment securities gains — — Total deferred tax liabilities (19,942) (19,067) Less: Valuation allowance — — Net deferred tax asset $ 31,397 $ 30,838 (1) The Company has federal and state net operating loss carryforwards (acquired in its 2016 Cornerstone acquisition) of $5.1 million (federal) and $2.6 million (state). These carryforwards begin to expire in 2030 for both federal and state purposes. The use of these federal and state carryforwards is each limited under IRC Section 382 to $722,000 annually for federal and $634,000 annually for state. Finally, the Company has state AMT credit carryforwards of $15,000 with no expiration date. Unrecognized Tax Benefits The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 2,866 $ 2,191 $ 1,941 Additions based on tax related to the current period 280 950 433 Additions for tax positions of prior periods 36 — 253 Reductions due to the statute of limitations (320) (275) (436) Balance, end of period $ 2,862 $ 2,866 $ 2,191 Of the 2023 total, $2.4 million represented the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. It is the Company’s policy to recognize interest and penalties as a component of income tax expense related to its unrecognized tax benefits. Amounts related to interest and penalties recorded in the income statements for the years ended December 31, 2023, 2022, and 2021, and accrued on the balance sheets as of December 31, 2023, 2022, and 2021 are presented below: Years Ended December 31, (in thousands) 2023 2022 2021 Interest and penalties recorded in the income statement as a component of income tax expense $ 314 $ 72 $ 267 Interest and penalties accrued on balance sheet 1,163 849 777 The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by taxing authorities for all years prior to and including 2019. With a few exceptions, which are immaterial in the aggregate, the Company is no longer subject to state income tax examinations for all years prior to and including 2018. Low-Income Housing Tax Credits Investments and Obligations The Company is a limited partner in several low-income housing partnerships whose purpose is to invest in qualified affordable housing. The Company expects to recover its remaining investments in these partnerships through the use of tax credits that are generated by the investments. The following table summarizes information related to the Company’s qualified low-income housing investments and obligations: December 31, (in thousands) 2023 2022 Unfunded Unfunded Investment Accounting Method Investments Obligations Investments Obligations Low-income housing tax credit - Gross Proportional amortization $ 57,596 $ 58,619 $ 42,306 $ 43,609 Life-to-date amortization (15,904) NA (10,591) NA Low-income housing tax credit - Net $ 41,692 $ 58,619 $ 31,715 $ 43,609 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 19. 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. See Footnote 13, “Stockholders’ Equity and Regulatory Capital Matters” of this section of the filing. 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: Years Ended December 31, (in thousands, except per share data) 2023 2022 2021 Net income $ 90,374 $ 91,106 $ 87,611 Dividends declared on Common Stock: Class A Shares (26,002) (24,122) (22,451) Class B Shares (2,933) (2,679) (2,435) Undistributed net income for basic earnings per share 61,439 64,305 62,725 Weighted average potential dividends on Class A shares upon exercise of dilutive options (92) (87) (100) Undistributed net income for diluted earnings per share $ 61,347 $ 64,218 $ 62,625 Weighted average shares outstanding: Class A Shares 17,634 17,876 18,497 Class B Shares 2,158 2,161 2,178 Effect of dilutive securities on Class A Shares outstanding 61 64 82 Weighted average shares outstanding including dilutive securities 19,853 20,101 20,757 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 1.50 $ 1.36 $ 1.23 Undistributed earnings per share* 3.14 3.24 3.06 Total basic earnings per share - Class A Common Stock $ 4.64 $ 4.60 $ 4.29 Class B Common Stock: Per share dividends distributed $ 1.36 $ 1.240 $ 1.12 Undistributed earnings per share* 2.85 2.95 2.78 Total basic earnings per share - Class B Common Stock $ 4.21 $ 4.19 $ 3.90 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 1.50 $ 1.36 $ 1.23 Undistributed earnings per share* 3.12 3.23 3.05 Total diluted earnings per share - Class A Common Stock $ 4.62 $ 4.59 $ 4.28 Class B Common Stock: Per share dividends distributed $ 1.36 $ 1.240 $ 1.12 Undistributed earnings per share* 2.84 2.93 2.77 Total diluted earnings per share - Class B Common Stock $ 4.20 $ 4.17 $ 3.89 *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: Years Ended December 31, 2023 2022 2021 Antidilutive stock options 149,169 178,000 144,000 Average antidilutive stock options 145,809 128,000 142,625 |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | 12 Months Ended |
Dec. 31, 2023 | |
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | |
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | 20. TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES Republic leases office facilities under operating leases from limited liability companies in which Republic’s Executive Chair/Chief Executive Officer and Vice Chair are partners. Rent expense and obligations under these leases are presented in Footnote 6 in this section of the filing. Loans made to executive officers and directors of Republic and their related interests during 2023 were as follows: (in thousands) Beginning balance $ 6,827 Effect of changes in composition of related parties 2,861 New loans 3,944 Repayments (2,687) Ending balance $ 10,945 Deposits from executive officers, directors, and their affiliates totaled $117 million and $126 million as of December 31, 2023 and 2022. By an agreement dated December 14, 1989, as amended August 8, 1994, the Company entered into a split-dollar insurance agreement with a trust established by the Company’s deceased former Chair, Bernard M. Trager. Pursuant to the agreement, from 1989 through 2002 the Company paid $690,000 in total annual premiums on the insurance policies held in the trust. The policies are joint-life policies payable upon the death of Mrs. Jean Trager, as the survivor of her husband Bernard M. Trager. The cash surrender value of the policies was approximately $2 million as of December 31, 2023 and 2022. Pursuant to the terms of the trust, the beneficiaries of the trust will each receive the proceeds of the policies after the repayment of any unreimbursed portion of the $690,000 annual premiums paid by the Company. The unreimbursed portion constitutes indebtedness from the trust to the Company and is secured by a collateral assignment of the policies. As of December 31, 2023 and 2022, the unreimbursed portion was $140,000 and $240,000, and the net death benefit under the policies was approximately $5 million. Upon the termination of the agreement, whether by the death of Mrs. Trager or earlier cancellation, the Company is entitled to be repaid by the trust the amount of indebtedness outstanding at that time. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2023 | |
OTHER COMPREHENSIVE INCOME | |
OTHER COMPREHENSIVE INCOME | 21. OTHER COMPREHENSIVE INCOME OCI components and related tax effects were as follows: Years Ended December 31, (in thousands) 2023 2022 2021 Available-for-Sale Debt Securities: Unrealized gain (loss) on AFS debt securities $ 15,380 $ (45,109) $ (8,908) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 46 (29) 63 Net gains (losses) 15,426 (45,138) (8,845) Income tax benefit (expense) related to items of other comprehensive income (3,855) 11,285 2,210 Net of tax 11,571 (33,853) (6,635) There were no amounts reclassified out of each component of accumulated OCI for the years ended December 31, 2023, 2022, and 2021. The following is a summary of the accumulated OCI balances, net of tax: 2023 (in thousands) December 31, 2022 Change December 31, 2023 Unrealized gain (loss) on AFS debt securities $ (32,934) $ 11,525 $ (21,409) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 955 46 1,001 Total unrealized gain (loss) $ (31,979) $ 11,571 $ (20,408) 2022 (in thousands) December 31, 2021 Change December 31, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (33,824) $ (32,934) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 (29) 955 Total unrealized gain (loss) $ 1,874 $ (33,853) $ (31,979) |
PARENT COMPANY CONDENSED FINANC
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 22. PARENT COMPANY CONDENSED FINANCIAL INFORMATION BALANCE SHEETS December 31, (in thousands) 2023 2022 Assets: Cash and cash equivalents $ 37,778 $ 36,436 Securities available for sale 5,872 3,855 Investment in bank subsidiary 875,503 819,144 Investment in non-bank subsidiaries — 2,773 Other assets 2,598 2,465 Total assets $ 921,751 $ 864,673 Liabilities and Stockholders’ Equity: Other liabilities 8,995 8,060 Stockholders’ equity 912,756 856,613 Total liabilities and stockholders’ equity $ 921,751 $ 864,673 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (in thousands) 2023 2022 2021 Income and expenses: Dividends from subsidiary $ 48,000 $ 59,460 $ 28,300 Interest income 429 229 143 Other income (37) 54 53 Less: Interest expense — — 507 Less: Other expenses 1,097 819 760 Income before income tax benefit 47,295 58,924 27,229 Income tax benefit 166 124 245 Income before equity in undistributed net income of subsidiaries 47,461 59,048 27,474 Equity in undistributed net income of subsidiaries 42,913 32,058 60,137 Net income $ 90,374 $ 91,106 $ 87,611 Comprehensive income $ 101,945 $ 57,253 $ 80,976 STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2023 2022 2021 Operating activities: Net income $ 90,374 $ 91,106 $ 87,611 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of investment securities (59) (56) (53) Equity in undistributed net income of subsidiaries (42,913) (32,058) (60,137) Director deferred compensation 769 427 347 Change in other assets (1,639) 4,571 (736) Change in other liabilities 3,973 (5,428) 1,694 Net cash provided by operating activities 50,505 58,562 28,726 Investing activities: Investment in venture capital fund (532) (337) — Investment in subsidiary bank (627) (590) (591) Net cash used in investing activities (1,159) (927) (591) Financing activities: Common Stock repurchases (20,279) (12,577) (47,528) Net proceeds from Class A Common Stock purchased through employee stock purchase plan 627 590 591 Net proceeds from Common Stock options exercised and equity awards (2) 52 (142) Payoff of subordinated note, net of common security interest — — (40,000) Cash dividends paid (28,350) (26,145) (24,699) Net cash used in financing activities (48,004) (38,080) (111,778) Net change in cash and cash equivalents 1,342 19,555 (83,643) Cash and cash equivalents at beginning of period 36,436 16,881 100,524 Cash and cash equivalents at end of period $ 37,778 $ 36,436 $ 16,881 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 23. REVENUE FROM CONTRACTS WITH CUSTOMERS The following tables present the Company’s net revenue by reportable segment for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, 2023 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income (1) $ 194,516 $ 9,447 $ 282 $ 204,245 $ 29,557 $ 15,729 $ 39,247 $ 84,533 $ 288,778 Noninterest income: Service charges on deposit accounts 13,810 44 — 13,854 — — 1 1 13,855 Net refund transfer fees — — — — 15,748 — — 15,748 15,748 Mortgage banking income (1) — — 3,542 3,542 — — — — 3,542 Interchange fee income 12,926 — — 12,926 126 4 1 131 13,057 Program fees (1) — — — — — 2,827 12,755 15,582 15,582 Increase in cash surrender value of BOLI (1) 2,719 — — 2,719 — — — — 2,719 Death benefits in excess of cash surrender value of life insurance (1) 1,728 — — 1,728 — — — — 1,728 Net losses on OREO (211) — — (211) — — — — (211) Other 4,913 — 74 4,987 215 154 81 450 5,437 Total noninterest income 35,885 44 3,616 39,545 16,089 2,985 12,838 31,912 71,457 Total net revenue $ 230,401 $ 9,491 $ 3,898 $ 243,790 $ 45,646 $ 18,714 $ 52,085 $ 116,445 $ 360,235 Net-revenue concentration (2) 64 % 3 % 1 % 68 % 13 % 5 % 14 % 32 % 100 % (1) This revenue is not subject to ASC 606. (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. Years Ended December 31, 2022 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income (1) $ 171,543 $ 13,729 $ 519 $ 185,791 $ 16,896 $ 4,819 $ 29,185 $ 50,900 $ 236,691 Noninterest income: Service charges on deposit accounts 13,388 50 — 13,438 (12) — — (12) 13,426 Net refund transfer fees — — — — 17,080 — — 17,080 17,080 Mortgage banking income (1) — — 6,196 6,196 — — — — 6,196 Interchange fee income 12,943 — — 12,943 176 6 — 182 13,125 Program fees (1) — — — — — 2,872 13,300 16,172 16,172 Increase in cash surrender value of BOLI (1) 2,526 — — 2,526 — — — — 2,526 Net losses on OREO (211) — — (211) — — — — (211) Contract termination fee — — — — 5,000 — — 5,000 5,000 Legal settlement — — — — 13,000 — — 13,000 13,000 Other 3,002 — 136 3,138 260 98 — 358 3,496 Total noninterest income 31,648 50 6,332 38,030 35,504 2,976 13,300 51,780 89,810 Total net revenue $ 203,191 $ 13,779 $ 6,851 $ 223,821 $ 52,400 $ 7,795 $ 42,485 $ 102,680 $ 326,501 Net-revenue concentration (2) 63 % 4 % 2 % 69 % 16 % 2 % 13 % 31 % 100 % (1) This revenue is not subject to ASC 606. (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. Year Ended December 31, 2021 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income (1) $ 157,249 $ 25,218 $ 1,081 $ 183,548 $ 14,999 $ 838 $ 23,355 $ 39,192 $ 222,740 Noninterest income: Service charges on deposit accounts 12,506 57 — 12,563 (10) — — (10) 12,553 Net refund transfer fees — — — — 20,248 — — 20,248 20,248 Mortgage banking income (1) — — 19,994 19,994 — — — — 19,994 Interchange fee income 12,777 — — 12,777 277 8 — 285 13,062 Program fees (1) — — — — — 3,171 11,066 14,237 14,237 Increase in cash surrender value of BOLI (1) 2,242 — — 2,242 — — — — 2,242 Net losses on OREO (160) — — (160) — — — — (160) Other 4,127 — 191 4,318 81 — — 81 4,399 Total noninterest income 31,492 57 20,185 51,734 20,596 3,179 11,066 34,841 86,575 Total net revenue $ 188,741 $ 25,275 $ 21,266 $ 235,282 $ 35,595 $ 4,017 $ 34,421 $ 74,033 $ 309,315 Net-revenue concentration (2) 61 % 8 % 7 % 76 % 12 % 1 % 11 % 24 % 100 % (1) This revenue is not subject to ASC 606. (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 deposit accounts Net refund transfer fees The Company executes contracts with individual Tax Providers to offer RTs to their taxpayer customers. RT revenue is recognized by the Bank immediately after the taxpayer’s refund is disbursed in accordance with the RT contract with the taxpayer customer. 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 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 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 write-downs 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 24. 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 December 31, 2023, the Company was divided into six reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, RPS, and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last three segments collectively constitute RPG operations. The nature of segment operations and the primary drivers of net revenues 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 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. TRS products are primarily provided to clients outside of the Bank’s market footprint. Loans and refund transfers Republic Payment Solutions RPS offers general-purpose reloadable cards. RPS products are primarily provided to clients outside of the Bank’s market footprint. 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. 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 for the years ended December 31, 2023, 2022, and 2021 is as follows: Year Ended December 31, 2023 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income $ 194,516 $ 9,447 $ 282 $ 204,245 $ 29,557 $ 15,729 $ 39,247 $ 84,533 $ 288,778 Provision for expected credit loss expense 8,698 (162) — 8,536 22,559 — 16,529 39,088 47,624 Net refund transfer fees — — — — 15,748 — — 15,748 15,748 Mortgage banking income — — 3,542 3,542 — — — — 3,542 Program fees — — — — — 2,827 12,755 15,582 15,582 Contract termination fee — — — — — — — — — Legal settlement — — — — — — — — — Other noninterest income 35,885 44 74 36,003 341 158 83 582 36,585 Total noninterest income 35,885 44 3,616 39,545 16,089 2,985 12,838 31,912 71,457 Total noninterest expense 160,101 3,547 8,019 171,667 12,035 3,710 11,986 27,731 199,398 Income (loss) before income tax expense 61,602 6,106 (4,121) 63,587 11,052 15,004 23,570 49,626 113,213 Income tax expense (benefit) 11,673 1,365 (907) 12,131 2,196 3,307 5,205 10,708 22,839 Net income (loss) $ 49,929 $ 4,741 $ (3,214) $ 51,456 $ 8,856 $ 11,697 $ 18,365 $ 38,918 $ 90,374 Period-end assets $ 5,504,886 $ 340,224 $ 14,746 $ 5,859,856 $ 228,738 $ 366,117 $ 140,180 $ 735,035 $ 6,594,891 Net interest margin 3.69 % 2.38 % 4.19 % 3.61 % NM 4.59 % NM NM 4.91 % Net-revenue concentration* 64 % 3 % 1 % 68 % 13 5 % 14 % 32 % 100 % Year Ended December 31, 2022 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income $ 171,543 $ 13,729 $ 519 $ 185,791 $ 16,896 $ 4,819 $ 29,185 $ 50,900 $ 236,691 Provision for expected credit loss expense 1,429 (1,117) — 312 9,955 — 12,081 22,036 22,348 Net refund transfer fees — — — — 17,080 — — 17,080 17,080 Mortgage banking income — — 6,196 6,196 — — — — 6,196 Program fees — — — — — 2,872 13,300 16,172 16,172 Contract termination fee — — — — 5,000 — — 5,000 5,000 Legal settlement — — — — 13,000 — — 13,000 13,000 Other noninterest income 31,648 50 136 31,834 424 104 — 528 32,362 Total noninterest income 31,648 50 6,332 38,030 35,504 2,976 13,300 51,780 89,810 Total noninterest expense 149,681 3,604 9,912 163,197 12,377 3,340 8,394 24,111 187,308 Income before income tax expense 52,081 11,292 (3,061) 60,312 30,068 4,455 22,010 56,533 116,845 Income tax expense 11,104 2,539 (673) 12,970 6,905 942 4,922 12,769 25,739 Net income $ 40,977 $ 8,753 $ (2,388) $ 47,342 $ 23,163 $ 3,513 $ 17,088 $ 43,764 $ 91,106 Period-end assets $ 4,894,773 $ 405,052 $ 13,938 $ 5,313,763 $ 46,192 $ 363,067 $ 112,521 $ 521,780 $ 5,835,543 Net interest margin 3.38 % 2.69 % 4.01 % 3.32 % NM 1.37 % NM NM 4.12 % Net-revenue concentration* 63 % 4 % 2 % 69 % 16 2 % 13 % 31 % 100 % Year Ended December 31, 2021 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income $ 157,249 $ 25,218 $ 1,081 $ 183,548 $ 14,999 $ 838 $ 23,355 $ 39,192 $ 222,740 Provision for expected credit loss expense (38) (281) — (319) 6,683 — 8,444 15,127 14,808 Net refund transfer fees — — — — 20,248 — — 20,248 20,248 Mortgage banking income — — 19,994 19,994 — — — — 19,994 Program fees — — — — — 3,171 11,066 14,237 14,237 Gain on branch divestiture — — — — — — — — — Other noninterest income 31,492 57 191 31,740 348 8 — 356 32,096 Total noninterest income 31,492 57 20,185 51,734 20,596 3,179 11,066 34,841 86,575 Total noninterest expense 145,376 4,210 12,356 161,942 13,611 2,733 4,779 21,123 183,065 Income before income tax expense 21,467 20,981 22,552 73,659 15,301 1,284 22,591 39,176 111,442 Income tax expense 7,685 4,962 1,960 14,607 3,685 279 5,260 9,224 23,831 Net income $ 13,782 $ 16,019 $ 20,592 $ 59,052 $ 11,616 $ 1,005 $ 17,331 $ 29,952 $ 87,611 Period-end assets $ 4,717,836 $ 850,703 $ 43,929 $ 5,775,552 $ 371,647 $ 371,647 $ 109,517 $ 392,773 $ 6,168,325 Net interest margin 3.18 % 3.37 % NM 3.39 % NM NM NM NM 4.10 % Net-revenue concentration* 61 % 8 % 7 % 76 % 12 1 % 11 % 24 % 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. NM - Not Meaningful |
ACQUISITION OF CBANK
ACQUISITION OF CBANK | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITION OF CBANK | |
ACQUISITION OF CBANK | 25. ACQUISITION OF CBANK OVERVIEW On March 15, 2023, the Company completed its acquisition of CBank (“CBank”), and its wholly owned bank subsidiary Commercial Industrial Finance, Inc. (“CIF”), for approximately $51 million in cash. The primary reason for the acquisition of CBank was to expand the Company’s footprint in the Cincinnati, Ohio metropolitan statistical area. ACQUISITION SUMMARY The table on the following page provides a summary of the assets acquired and liabilities assumed as recorded by CBank, the previously reported preliminary fair value adjustments necessary to adjust those acquired assets and assumed liabilities to fair value, final recast adjustments to those previously reported preliminary fair values, and the expected fair values of those assets and liabilities as recorded by the Company. Effective September 30, 2023, management has finalized the fair values of the acquired assets and assumed liabilities. March 15, 2023 As Previously Reported As Recasted As Recorded Fair Value Recast As Recorded Years Ended December 31, (in thousands) by CBank Adjustments Adjustments by Republic Assets acquired: Cash and cash equivalents $ 10,030 $ — $ — $ 10,030 Investment securities 16,463 (4) a (65) a 16,394 Loans 221,707 (4,219) b (150) b 217,338 Allowance for loan and lease losses (2,953) 1,353 c 1,391 c, j (209) Loans, net 218,754 (2,866) 1,241 217,129 Goodwill 954 (954) d — — Core deposit intangible — 2,844 e — 2,844 Premises and equipment, net 162 35 f (24) f 173 Other assets and accrued interest receivable 7,067 (320) g — 6,747 Total assets acquired $ 253,430 $ (1,265) $ 1,152 $ 253,317 Liabilities assumed: Deposits: Noninterest-bearing $ 42,160 $ — $ — $ 42,160 Interest-bearing 179,487 31 h — 179,518 Total deposits 221,647 31 — 221,678 Other liabilities and accrued interest payable 4,709 96 i 50 i 4,855 Total liabilities assumed 226,356 127 50 226,533 Net assets acquired $ 27,074 $ (1,392) $ 1,102 26,784 Cash consideration paid (51,000) Goodwill $ 24,216 Explanation of fair value and recast adjustments: a. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the investment securities. b. Adjustments to loans to reflect estimated fair value adjustments based on the Company’s evaluation of the acquired loan portfolio. c. Adjustments to the Allowance reflect the fair value adjustment to eliminate the acquiree’s recorded allowance for loan losses and other fair value adjustments based on the Company’s evaluation of the acquired loan portfolio. d. Adjustment reflects the fair value adjustment to eliminate the recorded goodwill. e. Adjustment reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. f. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment, net. g. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other assets and accrued interest receivable. h. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the assumed time deposits. i. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other liabilities and accrued interest payable. j. Adjustment reflects a change in estimated fair value based upon further evaluation of PCD loans, including cash payments received subsequent to the date of acquisition. Goodwill of approximately $24 million, which is the excess of the merger consideration over the fair value of net assets acquired, was recorded in the CBank acquisition and is the result of expected operational synergies and other factors. This goodwill is all attributable to the Company’s Traditional Banking segment and is expected to be deductible for tax purposes. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of 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 six 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 U.S. During the fourth quarter of 2023, the Company dissolved its Captive, a Nevada-based, wholly owned insurance subsidiary of the Company. The Captive provided property and casualty insurance coverage to the Company and the Bank, as well as a group of unrelated third-party insurance captives. As of December 31, 2023, the Company was divided into six reportable segments: Traditional Banking, Warehouse, Mortgage Banking, TRS, RPS and RCS. Management considers the first three segments to collectively constitute “Core Bank” or “Core Banking” operations, while the last three segments collectively constitute RPG operations. Core Bank Traditional Banking segment — ● Kentucky — 29 ● Metropolitan Louisville — 19 ● Central Kentucky — 6 ● Georgetown — 1 ● Lexington — 5 ● Northern Kentucky (Metropolitan Cincinnati) — 4 ● ● Covington — 1 ● Crestview Hills — 1 ● Florence — 1 ● Indiana — 3 ● Southern Indiana (Metropolitan Louisville) — 3 ● Floyds Knobs — 1 ● Jeffersonville — 1 ● New Albany — 1 ● Florida — 7 ● Metropolitan Tampa — 7 ● Ohio — 4 ● Metropolitan Cincinnati — 4 ● Tennessee — 4 ● Metropolitan Nashville — 4 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, and increases in the cash surrender value of BOLI. Traditional Banking operating expenses consist primarily of: salaries and employee benefits; technology, equipment, and communication; occupancy; interchange related expense; marketing and development; FDIC insurance 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. Warehouse Lending segment — Mortgage Banking segment — Republic Processing Group Tax Refund Solutions 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 U.S., as well as tax-preparation software providers (collectively, the “Tax Providers”). The majority of all the business generated by the TRS business occurs during the first half of each year. During the second half of each year, TRS generates limited revenue and incurs costs preparing for the next year’s tax filing 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 RA credit product is a loan made in conjunction with the filing of a taxpayer’s final federal tax return, which allows the taxpayer to borrow funds as an advance of a portion of their tax refund. The RA product had the following features during the first quarters of 2023 and 2022: ● Offered only during the first two months of each year; ● The taxpayer had the option to choose from multiple loan-amount tiers, subject to underwriting, up to a maximum advance amount of $ 6,250 ; ● No requirement that the taxpayer pay for another bank product, such as an RT; ● Multiple disbursement methods available with most Tax Providers, including direct deposit, prepaid card, or check, based on the taxpayer-customer’s election; ● Repayment of the RA to the Bank deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the RA: o no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. Since its introduction in December of 2022, the ERA credit product has been structured similarly to the RA with the primary differences being the timing of when the ERAs are originated and the documentation available to underwrite the ERA credits. The ERA is originated prior to the taxpayer receiving their fiscal year taxable income documentation, e.g. , W-2, and the filing of the taxpayer’s final federal tax return. As such, the Company generally uses paystub information to underwrite the ERA. The repayment of the ERA is incumbent upon the taxpayer client returning to the Bank’s Tax Provider for the filing of their final federal tax return in order for the tax refund to potentially be received by the Bank from the federal government to pay off the advance. The ERA product had the following features during the 2023 and 2024 tax filing seasons: ● Only offered during December and the following January in connection with the upcoming first quarter tax business for each period; ● The taxpayer had the option to choose from multiple loan tiers, subject to underwriting, up to a maximum advance amount of $ 1,000 ; ● No requirement that the taxpayer pays for another bank product, such as an RT; ● Multiple disbursement methods available with most Tax Providers, including direct deposit or prepaid card, based on the taxpayer-customer’s election; ● Repayment of the ERA to the Bank deducted from the taxpayer’s tax refund proceeds; and ● If an insufficient refund to repay the ERA, including the failure to file a final federal tax return through a Republic Tax Provider: o no recourse to the taxpayer, o no negative credit reporting on the taxpayer, and o no collection efforts against the taxpayer. The Company reports fees paid for RAs, including ERAs, as interest income on loans. RAs originated related to the first quarter 2023 tax filing season were repaid, on average, within 32 days after the taxpayer’s tax return was submitted to the applicable taxing authority. RAs and ERAs do not have a contractual due date but the Company considered an RA, related to the first quarter 2023 tax filing season, delinquent if it remained unpaid 35 days after the taxpayer’s tax return was submitted to the applicable taxing authority. The number of days for delinquency eligibility is based on management’s annual analysis of tax return processing times. Provisions on RAs are estimated when advances are made. Unpaid RAs, including ERAs, related to the first quarter tax filing season of a given year are charged-off by June 30 th Related to the overall credit losses on RAs and ERAs, 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 RA and ERA approval model is based primarily on the prior-year’s tax refund payment patterns. Because the substantial majority of the RA and ERA 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. Settlement of Lawsuit Against Green Dot — On June 3, 2022, the Bank and Green Dot entered into the Settlement Agreement to fully resolve the Lawsuit that the Bank filed against Green Dot in the Delaware Court of Chancery on October 5, 2021. As previously disclosed in the Company’s prior SEC filings, the Lawsuit arose from Green Dot’s inability to consummate the Sale Transaction contemplated in the TRS Purchase Agreement through which Green Dot would purchase all of the assets and operations of the Bank’s Tax Refund Solutions business. In accordance with the Settlement Agreement, on June 6, 2022, Green Dot paid $13 million to the Bank, which was in addition to a $5 million termination fee that Green Dot paid to the Bank during the first quarter of 2022 under the terms of the TRS Purchase Agreement. On June 6, 2022, the Bank and Green Dot filed a stipulation of dismissal of the Lawsuit with the Delaware Court of Chancery, which was effective to dismiss the Lawsuit when filed. Republic Payment Solutions segment - Issuing Solutions: The RPS division offers prepaid and debit solutions primarily marketed to the consumer industry. Prepaid solutions include the issuing of payroll and general purpose reloadable (“GPR”) cards. Characteristics of these cards include the following: ● Similar to a traditional debit card with features including traditional point of sale purchasing, ATM withdrawals and direct deposit; ● Funds associated with these products typically held in pooled accounts at the Bank with the Bank maintaining records of individual balances within these pooled accounts; and ● Payroll cards facilitate the loading of an employer’s payroll onto a card via direct deposit with GPR cards generally distributed through retail locations and reloadable through participating retail load networks. Debit solutions include the issuing of demand deposit accounts, savings accounts and/or debit cards. In addition to offering traditional point of sale purchasing, ATM withdrawals, and direct deposit options, these accounts may include overdraft protection. Money Movement: The Bank participates in traditional money movement solutions including ACH transactions, wire transfer, check processing, and the Mastercard RPPS. These capabilities are complementary to issuing within RPS, as well as, generally facilitating the movement of money for the TRS and RCS Divisions. The Company reports its share of client-related charges and fees for RPS programs under RPS 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 — ● RCS line-of-credit products – Using separate third-party service providers, the Bank originates two line-of-credit products to generally subprime borrowers in multiple states. The first of these two products (the “LOC I”) has been originated by the Bank since 2014. The second (the “LOC II”) was introduced in January 2021. o RCS’s LOC I represented the substantial majority of RCS activity during 2021 and 2022. Elastic Marketing, LLC and Elevate Decision Sciences, LLC, are third-party service providers for the product and are subject to the Bank’s oversight and supervision. Together, these companies provide the Bank with certain marketing, servicing, technology, and support services, while a separate third party provides customer support, servicing, and other services on the Bank’s behalf. The Bank is the lender for this product and is marketed as such. Further, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of the product. The Bank sells participation interests in this product. These participation interests are a 90% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three o In January 2021, RCS began originating balances through its LOC II. One of RCS’s existing third-party service providers, subject to the Bank’s oversight and supervision, provides the Bank with marketing services and loan servicing for the LOC II product. The Bank is the lender for this product and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this product. The Bank sells participation interests in this product. These participation interests are a 95% interest in advances made to borrowers under the borrower’s line-of-credit account, and the participation interests are generally sold three ● RCS installment loan product – Through RCS, the Bank offers installment loans with terms ranging from 12 to 60 months to borrowers in multiple states. The same third-party service provider for RCS’s LOC II is the third-party provider for the installment loans. This third-party provider is subject to the Bank’s oversight and supervision and provides the Bank with marketing services and loan servicing for these RCS installment loans. The Bank is the lender for these RCS installment loans and is marketed as such. Furthermore, the Bank controls the loan terms and underwriting guidelines, and the Bank exercises consumer compliance oversight of this RCS installment loan product. Currently, all loan balances originated under this RCS installment loan program are carried as “held for sale” on the Bank’s balance sheet, with the intention to sell these loans to a third-party, who is an affiliate of the Bank’s third-party service provider, generally within sixteen days following the Bank’s origination of the loans. Loans originated under this RCS installment loan program are carried at fair value under a fair-value option, with the portfolio marked to market monthly. ● RCS healthcare receivables products – The Bank originates healthcare-receivables products across the U.S. through three different third-party service providers. o For two of the programs, the Bank retains 100% of the receivables, with recourse in the event of default. o For the remaining program, in some instances the Bank retains 100% of the receivables originated, with recourse in the event of default, and in other instances, the Bank sells 100% of the receivables within one month of origination. Loan balances held for sale through this program are carried at the lower of cost or fair value. For the RCS line of credit and healthcare receivable products, the Company reports interest income and loan origination fees earned on RCS loans under “Loans, including fees,” while any net gains or losses on sale and mark-to-market adjustments of RCS loans are reported as noninterest income under “RCS Program fees.” The Company has elected fair value accounting for its RCS installment loan product that it sells after an initial holding period. As a result, interest income on loans, loan origination fees, net gains or losses on sale, and mark-to-market adjustments for the RCS installment product are reported as noninterest income under “RCS Program fees.” |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk The Bank’s warehouse lines of credit are secured by single family, first-lien residential real estate loans originated by the Bank’s mortgage clients across the United States. As of December 31, 2023, 31% of collateral securing warehouse lines was located in California. |
Earnings Concentration | Earnings Concentration 12%, the RPS segment accounted for 5%, 2% and 1%, while the RCS segment accounting for 14%, 13% and 11% of total Company net revenues. For 2023, 2022, and 2021, approximately 3%, 4% and 8% of total Company net revenues (net interest income plus noninterest income) were derived from the Company’s Warehouse segment. |
Cash Flows | Cash Flows |
Interest-Bearing Deposits in Other Financial Institutions | Interest-Bearing Deposits in Other Financial Institutions |
Debt Securities | Debt Securities Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to the earliest call date. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. Equity Securities — Allowance for Credit Losses on Available-for-Sale Securities — For the Company’s AFS corporate bond, the Company uses third-party PD and LGD data to estimate an ACLS, which is limited by the amount that the bond’s fair value is less than its amortized cost basis. For all other AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For other AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACLS is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACLS is recognized in other comprehensive income. Changes in ACLS are recorded as a charge or credit to the Provision. Losses are charged against the ACLS when management believes the lack of collectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest on AFS debt securities totaled $2 million and $2 million as of December 31, 2023 and 2022 and is excluded from the ACLS. Accrued interest on AFS debt securities is presented as a component of other assets on the Company’s balance sheet. Allowance for Credit Losses on Held-to-Maturity Securities — The Company measures expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities totaled $92,000 as of December 31, 2023 and 2022 and is excluded from the ACLS. Accrued interest on HTM debt securities is presented as a component of other assets on the Company’s balance sheet. The estimate of ACLS on HTM debt securities considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company classifies its HTM portfolio into the following major security types: MBS, corporate bonds, and municipal bonds. MBS securities include CMOs. Nearly all of the MBS portfolio is issued by U.S. government entities or government sponsored entities. These securities are highly rated by major rating agencies and have a long history of no credit losses. The MBS portfolio also carries ratings no lower than investment grade. The Company uses PD and LGD estimates provided by a third-party to estimate an ACLS for its corporate and municipal bond portfolios. These PD and LGD estimates are updated at least quarterly by the Company, with these estimates incorporating the most recent market expectations and forecasted information. |
Loans Held for Sale | Loans Held for Sale - Mortgage Banking Activities Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans or the purchase of TBA securities are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the future delivery of mortgage loans or the purchase of TBA securities when interest rate lock commitments are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. Mortgage loans held for sale are generally sold with the MSRs retained. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded as a component of Mortgage Banking income. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into Mortgage Banking income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the underlying loans. MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance is recorded as an increase to income. Changes in valuation allowances are reported within Mortgage Banking income on the income statement. The fair value of the MSR portfolios is subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates. A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates the fair value of MSRs generally will increase, as prepayments on the underlying loans would be expected to decline. See Footnote 15 “Mortgage Banking Activities” in this section of the filing for management’s determination of MSR impairment. Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. Loan servicing income totaled $3.4 million, $3.5 million and $3.3 million for the years ended December 31, 2023, 2022, and 2021. Late fees and ancillary fees related to loan servicing are considered nominal. Consumer Loans Held for Sale, at Fair Value Consumer Loans Held for Sale, at Lower of Cost or Fair Value |
Loans | Loans — Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method. Premiums on loans held for investment are amortized into interest income on the level-yield method over the expected life of the loan. Lease financing receivables, which are generally direct financing leases, are reported at their principal balance outstanding, including any lease residual amount, net of any unearned income, deferred loan fees and costs, and applicable ACLL. Leasing income is recognized on a basis that achieves a constant periodic rate of return on the outstanding lease financing balances over the lease terms. Interest income on mortgage and commercial loans is typically discontinued at the time the loan is 80 days delinquent unless the loan is well secured and in process of collection. Past due status is based on the contractual terms of the loan, which may define past due status by the number of days or the number of payments past due. In most cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 80 days still on accrual include smaller balance, homogeneous loans that are evaluated collectively or individually for loss. Interest accrued but not received for all classes of loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, typically a minimum of six |
Purchased Credit Deteriorated Loans | Purchased Credit Deteriorated Loans — ● Non-accretable discount assigned by the Bank; ● Classified by either the acquired bank or the Bank as Special Mention or Substandard; ● Nonaccrual status when purchased; ● Past due 30 days or more when purchased; ● Loans that have been at least one time over 30 days past due; ● Past maturity date when purchased; ● Select loans that are cross collateralized with any loans identified above; PCD loans are recorded at the amount paid. An ACLL is determined using the same methodology as other loans held for investment. The initial ACLL determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACLL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACLL are recorded through the Provision. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans — The ACLL is measured on a collective or pooled basis when similar risk characteristics exist. The first table of Footnote 4 illustrates the Company’s loan portfolio by ACLL risk pool. This pooling method is primarily based on the pool’s collateral type or the pool’s purpose and generally follows the Bank’s loan segmentation for regulatory reporting. For each of its loan pools, the Company uses a “static-pool” method, which analyzes historical closed pools of similar loans over their expected lives to attain a loss rate. This loss rate is then adjusted for current conditions and reasonable and supportable forecasts prior to being applied to the current balance of the analyzed pools. Adjustments to the historical loss rate for current conditions include differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, such as changes in property values or other relevant factors. A one-year forecast adjustment to the historical loss rate is based on a forecast of the U.S. national unemployment rate, which has shown a relatively strong historical correlation to the Bank’s loan losses. For its CRE loan pool, the Company uses a one-year forecast of general CRE values. Subsequent to one-year forecasts, loss rates are assumed to immediately revert back to long-term historical averages. Loans that do not share risk characteristics are evaluated on an individual basis, with the Company choosing to individually evaluate all loan modifications (formerly TDRs). Loans evaluated individually are not included in the pooled evaluation but are instead evaluated under a discounted cash flow or collateral-dependent method. A collateral dependent method is used when foreclosure is probable, with expected credit losses based on the fair value of the collateral at the reporting date, adjusted for selling costs if appropriate. Determining Expected Loan Lives: Expected credit losses are estimated over the contractual loan term, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a Loan Modification will be executed with an individual borrower, or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. See Footnote 4 “Loans and Allowance for Credit Losses” in this section of the filing for additional discussion regarding the Company’s ACLL. |
Loan Modifications | Loan Modifications — A loan modification 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. The Company measures the ACLL for loan modifications individually using the collateral method. |
Transfers of Financial Assets | Transfers of Financial Assets — |
Other Real Estate Owned | Other Real Estate Owned 10- 13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or broker price opinions. Operating costs after acquisition are expensed. Appraisals for both collateral-dependent loans and OREO are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Once the appraisal is received, a member of the Bank’s CCAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On at least an annual basis, the Bank performs a back test of collateral appraisals by comparing actual selling prices on recent collateral sales to the most recent appraisal of such collateral. Back tests are performed for each collateral class, e.g., residential real estate or commercial real estate, and may lead to additional adjustments to the value of unliquidated collateral of similar class. |
Premises and Equipment, Net | Premises and Equipment, Net — three three |
Right of Use Asset and Operating Lease Liabilities | Right of Use Assets and Operating Lease Liabilities — Regarding lease terms, the Company’s assumes the remaining lease term includes the fixed noncancelable term, plus all periods for which failure to renew the lease imposes a penalty on the Company, plus all periods for which the Company is reasonably certain to exercise a lease renewal option, plus all periods for which the Company is reasonably certain not to exercise a lease termination option. In determining whether it is reasonably certain to exercise a lease renewal or termination option, the Company considers its overall strategic plan and all economic and environmental circumstances connected to the leased property. To discount its operating lease payments and guarantees, the Company employs the interest rate curve published by the FHLB of Cincinnati for the FHLB’s collateralized term borrowings, matching expected lease term to borrowing term. The Company does not place short-term leases on its balance sheet. Short-term leases have a lease term of 12 months or less and do not include a purchase option that the Company is reasonably certain to exercise. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock |
Bank Owned Life Insurance | Bank Owned Life Insurance — |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company has selected September 30 th All goodwill is attributable to the Company’s Traditional Banking segment and is not expected to be deductible for tax purposes. Based on its assessment, the Company believes its goodwill of $41 million as of December 31, 2022 and $16 million as of December 31, 2021 was not impaired and is properly recorded in the consolidated financial. |
Off Balance Sheet Financial Instruments | Off Balance Sheet Financial Instruments |
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Allowance for Credit Losses on Off-Balance Sheet Credit Exposures — The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The likelihood that funding will occur is based on the historical usage rate of such commitments. For a listing of off-balance sheet credit exposures the Company generally considers for an ACLC, see Footnote 12 “Off Balance Sheet Risks, Commitments And Contingent Liabilities” in this section of the filing. The ACLC is recorded as a component of other liabilities on the Company’s balance sheet. Any provision for the ACLC is recorded on the Company’s income statement as a component of other noninterest expense. |
Derivatives | Derivatives The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a 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 other comprehensive income (loss). For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Net cash settlements on interest rate swaps are recorded in interest expense and cash flows related to the swaps are classified in the cash flow statement the same as the interest expense and cash flows from the liabilities being hedged. The Bank formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet. The Bank also formally assesses, both at the hedge’s inception and on an ongoing basis, whether a swap is highly effective in offsetting changes in cash flows of the hedged items. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods that the hedged transactions will affect earnings. 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 with dealer counterparties in order to minimize the Bank’s interest rate risk. These swaps are derivatives but are not designated as hedging instruments; 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 does not have credit risk. |
Stock Based Compensation | Stock Based Compensation |
Income Taxes | Income Taxes A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Retirement Plans | Retirement Plans |
Earnings Per Common Share | Earnings Per Common Share |
Comprehensive Income | Comprehensive Income |
Loss Contingencies | Loss Contingencies |
Restrictions on Cash and Cash Equivalents | Restrictions on Cash and Cash Equivalents The Company’s Captive maintained cash reserves to cover insurable claims. Reserves totaled $4 million as of December 31, 2022. There were no reserves as of December 31, 2023 as the Captive was dissolved during the fourth quarter of 2023. |
Equity | Equity |
Dividend Restrictions | Dividend Restrictions |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value” |
Revenue from contracts with Customers | Revenue from Contracts with Customers - Revenue from Contracts with Customers |
Segment Information | Segment Information |
Reclassifications | Reclassifications |
Recently Accounting Standards Adoption and Updates | Recently Adopted Accounting Standards The following ASUs were adopted by the Company during the year ended December 31, 2023: Method of Financial ASU. No. Topic Nature of Update Date Adopted Adoption Statement Impact 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This ASU eliminates the TDR recognition and measurement guidance and, instead, requires the Company to evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. This ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 Prospectively Disclosures have been updated to reflect adoption. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 This ASU extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. January 1, 2023 Prospectively Immaterial. The Company ceased making new loans and renewing loans indexed to LIBOR on January 1, 2022. Accounting Standards Updates The following not-yet-effective ASUs were issued since the Company’s most recently filed Form 10-K 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 filings, that ASU will not be subsequently redisclosed. Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. January 1, 2024 Prospectively Immaterial 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, these amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). January 1, 2025 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in the ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. January 1, 2024 Retrospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification™. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Prospectively Immaterial 2023-03 Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) This ASU amends the FASB Accounting Standards Codification™ for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. Upon addition to the FASB Codification. Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-01 Leases (Topic 842): Common Control Arrangements This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedules of Accounting Standards Updates | The following ASUs were adopted by the Company during the year ended December 31, 2023: Method of Financial ASU. No. Topic Nature of Update Date Adopted Adoption Statement Impact 2022-02 Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures This ASU eliminates the TDR recognition and measurement guidance and, instead, requires the Company to evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. This ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. January 1, 2023 Prospectively Disclosures have been updated to reflect adoption. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 This ASU extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. January 1, 2023 Prospectively Immaterial. The Company ceased making new loans and renewing loans indexed to LIBOR on January 1, 2022. The following not-yet-effective ASUs were issued since the Company’s most recently filed Form 10-K 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 filings, that ASU will not be subsequently redisclosed. Date Adoption Adoption Expected ASU. No. Topic Nature of Update Required Method Financial Impact 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to This ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. January 1, 2024 Prospectively Immaterial 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, these amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income [or loss] by the applicable statutory income tax rate). January 1, 2025 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in the ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. January 1, 2024 Retrospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-06 Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification™. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. The date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. Prospectively Immaterial 2023-03 Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock (SEC Update) This ASU amends the FASB Accounting Standards Codification™ for SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. Upon addition to the FASB Codification. Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. 2023-01 Leases (Topic 842): Common Control Arrangements This ASU requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with a related party (on the basis of legally enforceable terms and conditions). January 1, 2024 Prospectively The Company is currently analyzing the impact of this ASU on its financial statements. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 Allowance Amortized Unrealized Unrealized for Fair December 31, 2023 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 421,576 $ — $ (14,543) $ — $ 407,033 Private label mortgage-backed security 443 1,330 — — 1,773 Mortgage-backed securities - residential 167,996 176 (13,462) — 154,710 Collateralized mortgage obligations 22,698 36 (1,075) — 21,659 Corporate bonds 2,012 8 — — 2,020 Trust preferred security 3,800 318 — — 4,118 Total available-for-sale debt securities $ 618,525 $ 1,868 $ (29,080) $ — $ 591,313 Gross Gross Allowance Amortized Unrealized Unrealized for Fair December 31, 2022 (in thousands) Cost Gains Losses Credit Losses Value U.S. Treasury securities and U.S. Government agencies $ 436,333 $ 1 $ (25,193) $ — $ 411,141 Private label mortgage-backed security 843 1,284 — — 2,127 Mortgage-backed securities - residential 189,312 16 (17,455) — 171,873 Collateralized mortgage obligations 22,774 21 (1,427) — 21,368 Corporate bonds 10,000 1 — — 10,001 Trust preferred security 3,741 114 — — 3,855 Total available-for-sale debt securities $ 663,003 $ 1,437 $ (44,075) $ — $ 620,365 |
Schedule of carrying value, gross unrecognized gains and losses, and fair value of held-to-maturity debt securities | Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2023 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 65,000 $ — $ (163) $ 64,837 $ — Mortgage-backed securities - residential 25 — — 25 — Collateralized mortgage obligations 6,386 48 (121) 6,313 — Corporate bonds 4,986 6 — 4,992 (10) Obligations of state and political subdivisions — — — — — Total held-to-maturity debt securities $ 76,397 $ 54 $ (284) $ 76,167 $ (10) Gross Gross Allowance Amortized Unrecognized Unrecognized Fair for December 31, 2022 (in thousands) Cost Gains Losses Value Credit Losses U.S. Treasury securities and U.S. Government agencies $ 75,000 $ 106 $ — $ 75,106 $ — Mortgage-backed securities - residential 27 — (1) 26 — Collateralized mortgage obligations 7,270 54 (148) 7,176 — Corporate bonds 4,974 — (49) 4,925 (10) Obligations of state and political subdivisions 125 — (1) 124 — Total held-to-maturity debt securities $ 87,396 $ 160 $ (199) $ 87,357 $ (10) |
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 Amortized Fair December 31, 2023 (in thousands) Cost Value Cost Value Due in one year or less $ 189,872 $ 187,479 $ 50,000 $ 49,876 Due from one year to five years 233,716 221,574 19,986 19,953 Due from five years to ten years — — — — Due beyond ten years 3,800 4,118 — — Private label mortgage-backed security 443 1,773 — — Mortgage-backed securities - residential 167,996 154,710 25 25 Collateralized mortgage obligations 22,698 21,659 6,386 6,313 Total debt securities $ 618,525 $ 591,313 $ 76,397 $ 76,167 |
Schedule of debt securities with unrealized losses | Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2023 (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 $ 26,707 $ (84) $ 380,326 $ (14,459) $ 407,033 $ (14,543) Mortgage-backed securities - residential 1,911 (23) 136,180 (13,439) 138,091 (13,462) Collateralized mortgage obligations 1,668 (52) 17,239 (1,023) 18,907 (1,075) Trust preferred security — — — — — — Total available-for-sale debt securities $ 30,286 $ (159) $ 533,745 $ (28,921) $ 564,031 $ (29,080) Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized December 31, 2022 (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 $ 229,372 $ (7,139) $ 171,676 $ (18,054) $ 401,048 $ (25,193) Mortgage-backed securities - residential 105,274 (7,434) 65,520 (10,021) 170,794 (17,455) Collateralized mortgage obligations 20,418 (1,426) 6 (1) 20,424 (1,427) Total available-for-sale debt securities $ 355,064 $ (15,999) $ 237,202 $ (28,076) $ 592,266 $ (44,075) |
Rollforward of the private label mortgage backed security credit losses | Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 1,462 $ 1,462 $ 1,462 Recovery of losses previously recorded — — — Balance, end of period $ 1,462 $ 1,462 $ 1,462 |
Schedule of allowance for credit losses on investment | ACLS Roll-forward Years Ended December 31, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Available-for-Sale Securities: Corporate Bonds $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Held-to-Maturity Securities: Corporate Bonds 10 — — — 10 47 (37) — — 10 Total $ 10 $ — $ — $ — $ 10 $ 47 $ (37) $ — $ — $ 10 |
Schedule of pledged investment securities | Years Ended December 31, (in thousands) 2023 2022 Amortized cost $ 106,169 $ 236,047 Fair value 99,530 217,562 Carrying amount 99,530 217,562 |
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 December 31, 2023 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 174 $ — $ 174 Total equity securities with readily determinable fair values $ — $ 174 $ — $ 174 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2022 (in thousands) Cost Gains Losses Value Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair values $ — $ 111 $ — $ 111 |
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 Year Ended December 31, 2023 Year Ended December 31, 2022 Years Ended December 31, (in thousands) Realized Unrealized Total Realized Unrealized Total Freddie Mac preferred stock $ — $ 63 $ 63 $ — $ (59) $ (59) Community Reinvestment Act mutual fund — — — (204) — (204) Total equity securities with readily determinable fair value $ — $ 63 $ 63 $ (204) $ (59) $ (263) |
LOANS HELD FOR SALE (Tables)
LOANS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS HELD FOR SALE | |
Schedule of activity of consumer loans held for sale and carried at fair value | Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 4,706 $ 19,747 $ 3,298 Origination of consumer loans held for sale 130,185 311,704 271,430 Proceeds from the sale of consumer loans held for sale (130,772) (333,438) (260,730) Net gain on sale of consumer loans held for sale 3,795 6,693 5,749 Balance, end of period $ 7,914 $ 4,706 $ 19,747 |
Schedule of activity of consumer loans held for sale and carried at lower of cost or fair value | Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 13,169 $ 2,937 $ 1,478 Origination of consumer loans held for sale 926,810 734,011 610,750 Proceeds from the sale of consumer loans held for sale (932,843) (730,363) (614,840) Net gain on sale of consumer loans held for sale 8,958 6,584 5,549 Balance, end of period $ 16,094 $ 13,169 $ 2,937 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Schedule of composition of loan portfolio | December 31, (in thousands) 2023 2022 Traditional Banking: Residential real estate: Owner-occupied $ 1,144,684 $ 911,427 Nonowner-occupied 345,965 321,358 Commercial real estate (1) 1,785,289 1,599,510 Construction & land development 217,338 153,875 Commercial & industrial 464,078 413,387 Lease financing receivables 88,591 10,505 Aircraft 250,051 179,785 Home equity 295,133 241,739 Consumer: Credit cards 16,654 15,473 Overdrafts 694 726 Automobile loans 2,664 6,731 Other consumer 7,428 626 Total Traditional Banking 4,618,569 3,855,142 Warehouse lines of credit* 339,723 403,560 Total Core Banking 4,958,292 4,258,702 Republic Processing Group*: Tax Refund Solutions: Refund Advances 103,115 97,505 Other TRS commercial & industrial loans 46,092 51,767 Republic Credit Solutions 132,362 107,828 Total Republic Processing Group 281,569 257,100 Total loans** 5,239,861 4,515,802 Allowance for credit losses (82,130) (70,413) Total loans, net $ 5,157,731 $ 4,445,389 * 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 | December 31, (in thousands) 2023 2022 Contractually receivable $ 5,246,621 $ 4,519,136 Unearned income (2,556) (835) Unamortized premiums 1,060 99 Unaccreted discounts (2,533) (479) Other net unamortized deferred origination (fees) and costs (2,731) (2,119) Carrying value of loans $ 5,239,861 $ 4,515,802 |
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed | Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Residential real estate owner-occupied: Risk Rating Pass or not rated $ 346,195 $ 200,715 $ 175,030 $ 167,493 $ 230,384 $ — $ 2,474 $ 1,122,291 Special Mention 41 — — — 6,309 — — 6,350 Substandard — 2,526 1,885 1,226 10,406 — — 16,043 Doubtful — — — — — — — — Total $ 346,236 $ 203,241 $ 176,915 $ 168,719 $ 247,099 $ — $ 2,474 $ 1,144,684 YTD Gross Charge-offs $ — $ 10 $ 16 $ — $ — $ — $ — $ 26 Residential real estate nonowner-occupied: Risk Rating Pass or not rated $ 63,405 $ 69,827 $ 82,814 $ 47,395 $ 72,696 $ — $ 7,597 $ 343,734 Special Mention 170 1,971 — — 26 — — 2,167 Substandard — — 16 — 48 — — 64 Doubtful — — — — — — — — Total $ 63,575 $ 71,798 $ 82,830 $ 47,395 $ 72,770 $ — $ 7,597 $ 345,965 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 342,658 $ 439,643 $ 351,600 $ 174,093 $ 264,306 $ 32,491 $ 143,670 $ 1,748,461 Special Mention 23,852 1,020 374 — 8,998 1,716 — 35,960 Substandard — — — — 868 — — 868 Doubtful — — — — — — — — Total $ 366,510 $ 440,663 $ 351,974 $ 174,093 $ 274,172 $ 34,207 $ 143,670 $ 1,785,289 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Construction and land development: Risk Rating Pass or not rated $ 107,827 $ 89,106 $ 16,936 $ 297 $ 250 $ 225 $ 2,697 $ 217,338 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,827 $ 89,106 $ 16,936 $ 297 $ 250 $ 225 $ 2,697 $ 217,338 YTD Gross Charge-offs — — — — — — — — Commercial and industrial: Risk Rating Pass or not rated $ 140,753 $ 87,497 $ 70,149 $ 13,150 $ 20,957 $ 120,069 $ 3,968 $ 456,543 Special Mention 349 423 3,473 — 1,476 542 — 6,263 Substandard 49 36 3 — 339 25 820 1,272 Doubtful — — — — — — — — Total $ 141,151 $ 87,956 $ 73,625 $ 13,150 $ 22,772 $ 120,636 $ 4,788 $ 464,078 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 45,824 $ 23,956 $ 10,265 $ 4,571 $ 2,889 $ — $ — $ 87,505 Special Mention 429 30 162 183 115 — — 919 Substandard — 102 — — 65 — — 167 Doubtful — — — — — — — — Total $ 46,253 $ 24,088 $ 10,427 $ 4,754 $ 3,069 $ — $ — $ 88,591 YTD Gross Charge-offs $ 20 $ 113 $ — $ — $ 8 $ — $ — $ 141 Aircraft: Risk Rating Pass or not rated $ 97,761 $ 55,896 $ 44,721 $ 30,628 $ 21,045 $ — $ — $ 250,051 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 97,761 $ 55,896 $ 44,721 $ 30,628 $ 21,045 $ — $ — $ 250,051 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 292,890 $ — $ 292,890 Special Mention — — — — — 235 — 235 Substandard — — — — — 2,008 — 2,008 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 295,133 $ — $ 295,133 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 2 $ — $ 2 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2023 2023 2022 2021 2020 Prior Cost Basis to Term Total Consumer: Risk Rating Pass or not rated $ 3,947 $ 1,194 $ 181 $ 74 $ 3,420 $ 18,611 $ — $ 27,427 Special Mention — — — — — — — — Substandard — — — — 13 — — 13 Doubtful — — — — — — — — Total $ 3,947 $ 1,194 $ 181 $ 74 $ 3,433 $ 18,611 $ — $ 27,440 YTD Gross Charge-offs $ 9 $ 11 $ 8 $ — $ 7 $ 1,147 $ — $ 1,182 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 339,723 $ — $ 339,723 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 339,723 $ — $ 339,723 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149,207 $ — $ 149,207 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149,207 $ — $ 149,207 YTD Gross Charge-offs $ 126 $ — $ — $ — $ — $ 25,825 $ — $ 25,951 RCS: Risk Rating Pass or not rated $ 30,607 $ 7,203 $ 579 $ 454 $ 37,368 $ 54,634 $ — $ 130,845 Special Mention — — — — — — — — Substandard — — — — — 1,517 — 1,517 Doubtful — — — — — — — — Total $ 30,607 $ 7,203 $ 579 $ 454 $ 37,368 $ 56,151 $ — $ 132,362 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 13,912 $ — $ 13,912 Grand Total: Risk Rating Pass or not rated $ 1,178,977 $ 975,037 $ 752,275 $ 438,155 $ 653,315 $ 1,007,850 $ 160,406 $ 5,166,015 Special Mention 24,841 3,444 4,009 183 16,924 2,493 — 51,894 Substandard 49 2,664 1,904 1,226 11,739 3,550 820 21,952 Doubtful — — — — — — — — Grand Total $ 1,203,867 $ 981,145 $ 758,188 $ 439,564 $ 681,978 $ 1,013,893 $ 161,226 $ 5,239,861 YTD Gross Charge-offs $ 155 $ 134 $ 24 $ — $ 15 $ 40,886 $ — $ 41,214 Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Residential real estate owner-occupied: Risk Rating Pass or not rated $ 231,638 $ 189,495 $ 188,004 $ 71,306 $ 208,296 $ — $ — $ 888,739 Special Mention — 160 — — 7,240 — — 7,400 Substandard 1,230 1,103 1,501 1,460 9,994 — — 15,288 Doubtful — — — — — — — — Total $ 232,868 $ 190,758 $ 189,505 $ 72,766 $ 225,530 $ — $ — $ 911,427 YTD Gross Charge-offs $ 21 $ — $ — $ — $ — $ — $ — $ 21 Residential real estate nonowner-occupied: Risk Rating Pass or not rated $ 78,337 $ 91,778 $ 55,058 $ 32,803 $ 57,053 $ — $ 6,147 $ 321,176 Special Mention — — — — 32 — — 32 Substandard — 30 — — 120 — — 150 Doubtful — — — — — — — — Total $ 78,337 $ 91,808 $ 55,058 $ 32,803 $ 57,205 $ — $ 6,147 $ 321,358 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Risk Rating Pass or not rated $ 451,327 $ 394,317 $ 210,055 $ 117,928 $ 253,213 $ 25,499 $ 99,791 $ 1,552,130 Special Mention 3,124 11,870 — 21,296 9,967 318 — 46,575 Substandard — — — — 805 — — 805 Doubtful — — — — — — — — Total $ 454,451 $ 406,187 $ 210,055 $ 139,224 $ 263,985 $ 25,817 $ 99,791 $ 1,599,510 YTD Gross Charge-offs $ — $ 9 $ — $ — $ — $ — $ — $ 9 Construction and land development: Risk Rating Pass or not rated $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 107,153 $ 43,289 $ 638 $ 641 $ 373 $ 1,781 $ — $ 153,875 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Revolving Loans Revolving Loans (in thousands) Term Loans Amortized Cost Basis by Origination Year (Continued) Amortized Converted As of December 31, 2022 2022 2021 2020 2019 Prior Cost Basis to Term Total Commercial and industrial: Risk Rating Pass or not rated $ 116,483 $ 82,431 $ 17,944 $ 36,254 $ 36,367 $ 103,257 $ 4,865 $ 397,601 Special Mention 536 13,239 — — 1,756 255 — 15,786 Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 117,019 $ 95,670 $ 17,944 $ 36,254 $ 38,123 $ 103,512 $ 4,865 $ 413,387 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Lease financing receivables: Risk Rating Pass or not rated $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ 5,469 $ 1,964 $ 542 $ 1,548 $ 982 $ — $ — $ 10,505 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Aircraft: Risk Rating Pass or not rated $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,454 $ — $ — $ 179,575 Special Mention — — — — — — — — Substandard — — — — 210 — — 210 Doubtful — — — — — — — — Total $ 65,399 $ 54,749 $ 35,085 $ 16,888 $ 7,664 $ — $ — $ 179,785 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Home equity: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 240,704 $ — $ 240,704 Special Mention — — — — — 171 — 171 Substandard — — — — — 864 — 864 Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 241,739 $ — $ 241,739 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Risk Rating Pass or not rated $ 415 $ 499 $ 168 $ 2,531 $ 4,328 $ 15,573 $ — $ 23,514 Special Mention — — — — — — — — Substandard — — — 9 33 — — 42 Doubtful — — — — — — — — Total $ 415 $ 499 $ 168 $ 2,540 $ 4,361 $ 15,573 $ — $ 23,556 YTD Gross Charge-offs $ — $ 5 $ — $ 11 $ — $ 1,274 $ — $ 1,290 Warehouse: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 403,560 $ — $ 403,560 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — TRS: Risk Rating Pass or not rated $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total $ — $ — $ — $ — $ — $ 149,272 $ — $ 149,272 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,659 $ — $ 11,659 RCS: Risk Rating Pass or not rated $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 50,589 $ — $ 106,679 Special Mention — — — — — — — — Substandard — — — — — 1,149 — 1,149 Doubtful — — — — — — — — Total $ 22,357 $ 2,273 $ 1,264 $ 602 $ 29,594 $ 51,738 $ — $ 107,828 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ 11,390 $ — $ 11,390 Grand Total: Risk Rating Pass or not rated $ 1,078,578 $ 860,795 $ 508,758 $ 280,501 $ 597,660 $ 990,235 $ 110,803 $ 4,427,330 Special Mention 3,660 25,269 — 21,296 18,995 744 — 69,964 Substandard 1,230 1,133 1,501 1,469 11,162 2,013 — 18,508 Doubtful — — — — — — — — Grand Total $ 1,083,468 $ 887,197 $ 510,259 $ 303,266 $ 627,817 $ 992,992 $ 110,803 $ 4,515,802 YTD Gross Charge-offs $ 21 $ 14 $ — $ 11 $ — $ 24,323 $ — $ 24,369 |
Schedule of activity in the ACLL for loan and lease losses | ACLL Roll-forward Years Ended December 31, 2023 2022 Beginning CBank Charge- Ending Beginning Charge- Ending (in thousands) Balance Adjustment* Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Traditional Banking: Residential real estate: Owner-occupied $ 8,909 $ — $ 1,303 $ (26) $ 151 $ 10,337 $ 8,647 $ 181 $ (21) $ 102 $ 8,909 Nonowner-occupied 2,831 — 213 — 3 3,047 2,700 129 — 2 2,831 Commercial real estate 23,739 — 1,997 — 94 25,830 23,769 (308) (9) 287 23,739 Construction & land development 4,123 — 1,937 — — 6,060 4,128 (5) — — 4,123 Commercial & industrial 3,976 — 137 — 123 4,236 3,487 218 — 271 3,976 Lease financing receivables 110 216 866 (141) 10 1,061 91 19 — — 110 Aircraft 449 — 176 — — 625 357 92 — — 449 Home equity 4,628 — 872 (2) 3 5,501 4,111 396 — 121 4,628 Consumer: Credit cards 996 — 176 (162) 64 1,074 934 140 (155) 77 996 Overdrafts 726 — 667 (896) 197 694 683 866 (1,038) 215 726 Automobile loans 87 — (32) (37) 14 32 186 (111) (3) 15 87 Other consumer 135 — 386 (87) 67 501 314 (151) (94) 66 135 Total Traditional Banking 50,709 216 8,698 (1,351) 726 58,998 49,407 1,466 (1,320) 1,156 50,709 Warehouse lines of credit 1,009 — (162) — — 847 2,126 (1,117) — — 1,009 Total Core Banking 51,718 216 8,536 (1,351) 726 59,845 51,533 349 (1,320) 1,156 51,718 Republic Processing Group: Tax Refund Solutions: Refund Advances 3,797 — 22,492 (25,823) 3,463 3,929 — 10,471 (11,505) 4,831 3,797 Other TRS commercial & industrial loans 91 — 67 (128) 31 61 96 (516) (154) 665 91 Republic Credit Solutions 14,807 — 16,529 (13,912) 871 18,295 12,948 12,081 (11,390) 1,168 14,807 Total Republic Processing Group 18,695 — 39,088 (39,863) 4,365 22,285 13,044 22,036 (23,049) 6,664 18,695 Total $ 70,413 $ 216 $ 47,624 $ (41,214) $ 5,091 $ 82,130 $ 64,577 $ 22,385 $ (24,369) $ 7,820 $ 70,413 * The net fair value adjustment to ACLL includes an estimate of lifetime credit losses for Purchased Credit Deteriorated loans. ACLL Roll-forward Year Ended December 31, 2021 Beginning Provision Charge- Ending (in thousands) Balance for Credit Loss offs Recoveries Balance Traditional Banking: Residential real estate: Owner-occupied $ 9,715 $ (1,461) $ — $ 393 $ 8,647 Nonowner-occupied 2,466 231 — 3 2,700 Commercial real estate 23,606 509 (428) 82 23,769 Construction & land development 3,274 854 — — 4,128 Commercial & industrial 2,797 700 (86) 76 3,487 Lease financing receivables 106 (15) — — 91 Aircraft 253 104 — — 357 Home equity 4,990 (874) (51) 46 4,111 Consumer: Credit cards 929 107 (163) 61 934 Overdrafts 587 425 (641) 312 683 Automobile loans 399 (233) (19) 39 186 Other consumer 577 (254) (72) 63 314 Total Traditional Banking 49,699 93 (1,460) 1,075 49,407 Warehouse lines of credit 2,407 (281) — — 2,126 Total Core Banking 52,106 (188) (1,460) 1,075 51,533 Republic Processing Group: Tax Refund Solutions: Refund Advances — 6,723 (10,256) 3,533 — Other TRS commercial & industrial loans 158 (40) (51) 29 96 Republic Credit Solutions 8,803 8,444 (4,707) 408 12,948 Total Republic Processing Group 8,961 15,127 (15,014) 3,970 13,044 Total $ 61,067 $ 14,939 $ (16,474) $ 5,045 $ 64,577 |
Schedule of non-performing loans and non-performing assets and select credit quality ratios | December 31, (in thousands) 2023 2022 Loans on nonaccrual status* $ 19,150 $ 15,562 Loans past due 90-days-or-more and still on accrual** 1,468 756 Total nonperforming loans 20,618 16,318 Other real estate owned 1,370 1,581 Total nonperforming assets $ 21,988 $ 17,899 Credit Quality Ratios - Total Company: Nonperforming loans to total loans 0.39 % 0.36 % Nonperforming assets to total loans (including OREO) 0.42 0.40 Nonperforming assets to total assets 0.33 0.31 Credit Quality Ratios - Core Bank: Nonperforming loans to total loans 0.39 % 0.37 % Nonperforming assets to total loans (including OREO) 0.41 0.40 Nonperforming assets to total assets 0.35 0.32 *Loans on nonaccrual status include collateral-dependent 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 | Past Due 90-Days-or-More Nonaccrual and Still Accruing Interest* December 31, (in thousands) 2023 2022 2023 2022 Traditional Banking: Residential real estate: Owner-occupied $ 15,056 $ 13,388 $ — $ — Nonowner-occupied 64 117 — — Commercial real estate 850 1,001 — — Construction & land development — — — — Commercial & industrial 1,221 — — — Lease financing receivables — — — — Aircraft — — — Home equity 1,948 815 — — Consumer: Credit cards — — — — Overdrafts — — — — Automobile loans 10 31 — — Other consumer 1 210 — — Total Traditional Banking 19,150 15,562 — — Warehouse lines of credit — — — — Total Core Banking 19,150 15,562 — — Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — Other TRS commercial & industrial loans — — — — Republic Credit Solutions — — 1,468 756 Total Republic Processing Group — — 1,468 756 Total $ 19,150 $ 15,562 $ 1,468 $ 756 * Loans past due 90-days-or-more and still accruing consist of smaller balance consumer loans. Year Ended As of December 31, 2023 December 31, 2023 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner-occupied $ 376 $ 14,680 $ 15,056 $ 954 Nonowner-occupied 20 44 64 15 Commercial real estate 850 — 850 191 Construction & land development — — — — Commercial & industrial 1,221 — 1,221 26 Lease financing receivables — — — — Aircraft — — — — Home equity — 1,948 1,948 184 Consumer 8 3 11 6 Total $ 2,475 $ 16,675 $ 19,150 $ 1,376 * Includes interest income for loans on nonaccrual loans as of the beginning of the period that were paid off during the period. Year Ended As of December 31, 2022 December 31, 2022 Nonaccrual Nonaccrual Total Interest Income Loans with Loans without Nonaccrual Recognized (in thousands) ACLL ACLL Loans on Nonaccrual Loans* Residential real estate: Owner-occupied $ 2,252 $ 11,136 $ 13,388 $ 1,000 Nonowner-occupied 56 61 117 1 Commercial real estate 1,001 — 1,001 1,384 Construction & land development — — — — Commercial & industrial — — — — Lease financing receivables — — — — Aircraft — — — — Home equity — 815 815 263 Consumer 15 226 241 16 Total $ 3,324 $ 12,238 $ 15,562 $ 2,664 * Includes interest income for loans on nonaccrual as of the beginning of the period that were paid off during the period. |
Schedule of aging of the recorded investment in loans by class of loans | 30 - 59 60 - 89 90 or More December 31, 2023 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner-occupied $ 3,396 $ 769 $ 1,638 $ 5,803 $ 1,138,881 $ 1,144,684 Nonowner-occupied — — — — 345,965 345,965 Commercial real estate — — — — 1,785,289 1,785,289 Construction & land development — — — — 217,338 217,338 Commercial & industrial 140 36 1,184 1,360 462,718 464,078 Lease financing receivables 18 — — 18 88,573 88,591 Aircraft — — — — 250,051 250,051 Home equity 417 96 254 767 294,366 295,133 Consumer: Credit cards 31 4 — 35 16,619 16,654 Overdrafts 129 1 1 131 563 694 Automobile loans — — 2 2 2,662 2,664 Other consumer 53 7 — 60 7,368 7,428 Total Traditional Banking 4,184 913 3,079 8,176 4,610,393 4,618,569 Warehouse lines of credit — — — — 339,723 339,723 Total Core Banking 4,184 913 3,079 8,176 4,950,116 4,958,292 Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — 103,115 103,115 Other TRS commercial & industrial loans — — — — 46,092 46,092 Republic Credit Solutions 9,387 3,061 1,468 13,916 118,446 132,362 Total Republic Processing Group 9,387 3,061 1,468 13,916 267,653 281,569 Total $ 13,571 $ 3,974 $ 4,547 $ 22,092 $ 5,217,769 $ 5,239,861 Delinquency ratio*** 0.25 % 0.08 % 0.09 % 0.42 % * 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, 2022 Days Days Days Total Total (dollars in thousands) Delinquent Delinquent Delinquent* Delinquent** Current Total Traditional Banking: Residential real estate: Owner-occupied $ 2,382 $ 1,185 $ 1,267 $ 4,834 $ 906,593 $ 911,427 Nonowner-occupied — — — — 321,358 321,358 Commercial real estate 604 — — 604 1,598,906 1,599,510 Construction & land development — — — — 153,875 153,875 Commercial & industrial 177 — — 177 413,210 413,387 Lease financing receivables — — — — 10,505 10,505 Aircraft — — — — 179,785 179,785 Home equity 56 93 26 175 241,564 241,739 Consumer: Credit cards 50 5 — 55 15,418 15,473 Overdrafts 158 1 1 160 566 726 Automobile loans 8 — 3 11 6,720 6,731 Other consumer 43 1 — 44 582 626 Total Traditional Banking 3,478 1,285 1,297 6,060 3,849,082 3,855,142 Warehouse lines of credit — — — — 403,560 403,560 Total Core Banking 3,478 1,285 1,297 6,060 4,252,642 4,258,702 Republic Processing Group: Tax Refund Solutions: Refund Advances — — — — 97,505 97,505 Other TRS commercial & industrial loans — — — — 51,767 51,767 Republic Credit Solutions 6,488 1,956 756 9,200 98,628 107,828 Total Republic Processing Group 6,488 1,956 756 9,200 247,900 257,100 Total $ 9,966 $ 3,241 $ 2,053 $ 15,260 $ 4,500,542 $ 4,515,802 Delinquency ratio*** 0.22 % 0.07 % 0.05 % 0.34 % *All loans past due 90 days-or-more, excluding small-dollar 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 divided by total loans. |
Schedule of amortized cost basis of collateral-dependent loans | December 31, 2023 December 31, 2022 December 31, 2021 Secured Secured Secured Secured Secured Secured by Real by Personal by Real by Personal by Real by Personal (in thousands) Estate Property Estate Property Estate Property Traditional Banking: Residential real estate: Owner-occupied $ 18,602 $ — $ 18,057 $ — $ 14,798 $ — Nonowner-occupied 64 — 150 — 95 — Commercial real estate 870 — 1,041 — 6,736 — Construction & land development — — — — — — Commercial & industrial 1,273 — — — — 192 Lease financing receivables — 108 — — — — Aircraft — — — 210 — — Home equity 2,008 — 967 — 1,976 — Consumer — 13 — 26 — 274 Total Traditional Banking $ 22,817 $ 121 $ 20,215 $ 236 $ 23,605 $ 466 |
Schedule of financing receivable, experiencing financial difficulty and modified | Amortized Cost Basis of Modified Financing Receivables Years Ended December 31, 2023 (in thousands) Loans (#) Rate Reduction ($) Loans (#) Term Extension ($) Loans (#) Principal Deferral ($) Residential real estate: Owner-occupied — $ — 1 $ 158 14 $ 975 Nonowner-occupied — — — — — — Home equity — — — — 9 709 Republic Processing Group — — — — 199 48 Total Loan Modifications — $ — 1 $ 158 222 $ 1,732 |
Schedule of financing receivable, loan modification | Total Loan Modification by Type Accruing Nonaccruing Years Ended December 31, 2023 (in thousands) Loans (#) Recorded investment ($) Loans (#) Recorded investment ($) Term extension — $ — 1 $ 158 Principal deferral 199 48 23 1,684 Total Loan Modifications 199 $ 48 24 $ 1,842 |
Schedule of percentage of the amortized cost of loans and leases that were modified | Accruing Loan Modifications Years Ended December 31, 2023 % of Total Amortized of Financing (dollars in thousands) Loans Cost Basis Receivable Republic Processing Group 199 $ 48 0.02 % Total Accruing Loan Modifications 199 $ 48 0.00 Nonaccruing Loan Modifications Years Ended December 31, 2023 % of Total Amortized of Financing (dollars in thousands) Loans Cost Basis Receivable Residential real estate: Owner-occupied 15 $ 1,133 0.10 % Home equity 9 709 0.24 Total Nonaccruing Loan Modifications 24 $ 1,842 0.04 |
Schedule of financing receivable modified past due | Accruing Loan Modifications Years Ended December 31, 2023 30-89 Days 90+ Days (in thousands) Current Past Due Past Due Republic Processing Group $ 48 $ — $ — Total Accruing Loan Modifications $ 48 $ — $ — Nonaccruing Loan Modifications Years Ended December 31, 2023 30-89 Days 90+ Days (in thousands) Current Past Due Past Due Residential real estate: Owner-occupied $ 856 $ — $ 277 Home equity 650 34 25 Total Nonaccruing Loan Modifications $ 1,506 $ 34 $ 302 |
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 December 31, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate 66 $ 3,427 84 $ 7,345 150 $ 10,772 Commercial real estate — — 1 847 1 847 Commercial & industrial — — 1 1 1 1 Consumer 1 9 2,322 397 2,323 406 Total troubled debt restructurings 67 $ 3,436 2,408 $ 8,590 2,475 $ 12,026 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, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 67 $ 6,305 3 $ 242 70 $ 6,547 Principal deferral 7 699 — — 7 699 Legal modification 67 3,149 6 377 73 3,526 Total residential TDRs 141 10,153 9 619 150 10,772 Commercial related and construction/land development loans: Rate reduction 1 847 — — 1 847 Principal deferral 1 1 — — 1 1 Total commercial TDRs 2 848 — — 2 848 Consumer loans: Principal deferral 2,320 393 — — 2,320 393 Legal modification 3 13 — — 3 13 Total consumer TDRs 2,323 406 — — 2,323 406 Total troubled debt restructurings 2,466 $ 11,407 9 $ 619 2,475 $ 12,026 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, 2022 (dollars in thousands) Loans Investment Loans Investment Loans Investment Residential real estate loans (including home equity loans): Rate reduction 1 $ 192 — $ — 1 $ 192 Legal modification 30 1,607 3 297 33 1,904 Total residential TDRs 31 1,799 3 297 34 2,096 Consumer loans: Principal deferral 1,042 145 — — 1,042 145 Total consumer TDRs 1,042 145 — — 1,042 145 Total troubled debt restructurings 1,073 $ 1,944 3 $ 297 1,076 $ 2,241 |
Schedule of carrying amount of foreclosed properties held | December 31, (in thousands) 2023 2022 Commercial real estate $ 1,370 $ 1,581 Total other real estate owned $ 1,370 $ 1,581 |
Schedule of recorded investment in consumer mortgage loans secured by residential real estate properties | December 31, (in thousands) 2023 2022 Recorded investment in consumer residential real estate mortgage loans in the process of foreclosure $ 1,556 $ 909 |
Schedule of Refund Advances | Years Ended December 31, (dollars in thousands) 2023 2022 2021 Refund Advances originated $ 840,162 $ 408,712 $ 250,045 Net charge to the Provision for RAs, including ERAs 22,492 10,471 6,723 Provision as a percentage of RAs, including ERAs, originated 2.68 % 2.56 % 2.69 % Refund Advances net charge-offs (recoveries) $ 22,360 $ 6,674 $ 6,723 Refund Advances net charge-offs (recoveries) to total Refund Advances originated 2.66 % 1.63 % 2.69 % |
Schedule of early season refund advances | Years Ended December 31, (dollars in thousands) 2023 2022 2021 Early Season Refund Advances outstanding $ 103,115 $ 97,505 $ — Net charge to the Provision for outstanding Early Season Refund Advances 3,931 3,797 — Provision to total Early Season Refund Advances outstanding 3.81 % 3.89 % — % |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREMISES AND EQUIPMENT | |
Summary of the cost and accumulated depreciation of premises and equipment | December 31, (in thousands) 2023 2022 Land $ 4,578 $ 3,818 Buildings and improvements 33,606 32,780 Furniture, fixtures and equipment 55,023 51,652 Leasehold improvements 24,893 21,755 Construction in progress 34 547 Total premises and equipment 118,134 110,552 Less: Accumulated depreciation and amortization 84,723 78,574 Premises and equipment, net $ 33,411 $ 31,978 |
Schedule of depreciation expense related to premises and equipment | Years Ended December 31, (in thousands) 2023 2022 2021 Depreciation expense $ 7,063 $ 7,598 $ 8,986 |
RIGHT-OF-USE ASSETS AND OPERA_2
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | |
Summary of operating lease expense | Years Ended December 31, (in thousands) 2023 2022 2021 Operating lease expense: Related Party: Variable lease expense $ 4,688 $ 4,831 $ 4,921 Fixed lease expense 233 207 137 Third-Party: Variable lease expense 1,464 1,001 787 Fixed lease expense 1,566 1,526 1,372 Total operating lease expense $ 7,951 $ 7,565 $ 7,217 Other information concerning operating leases: Cash paid for amounts included in the measurement of operating lease liabilities $ 6,901 $ 6,847 $ 7,286 Cash paid for variable rent payments not included in measurement of operating lease liabilities 603 603 |
Schedule of weighted average remaining term and weighted average discount rate for operating leases | December 31, (dollars in thousands) 2023 2022 Weighted average remaining term in years 7.61 8.44 Weighted average discount rate 2.30 % 2.10 % |
Schedule of operating lease liabilities | Year (in thousands) Related Party Third-Party Total 2024 $ 3,726 $ 2,883 $ 6,609 2025 3,569 2,302 5,871 2026 3,640 1,982 5,622 2027 3,680 1,661 5,341 2028 3,541 952 4,493 Thereafter 8,210 3,790 12,000 Total undiscounted cash flows $ 26,366 $ 13,570 $ 39,936 Discount applied to cash flows (2,742) (1,655) (4,397) Total discounted cash flows reported as operating lease liabilities $ 23,624 $ 11,915 $ 35,539 |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | |
Schedule of progression of the balance for goodwill | Years Ended December 31, (in thousands) 2023 2022 2021 Beginning of period $ 16,300 $ 16,300 $ 16,300 Acquired goodwill 24,216 — — Impairment — — — End of period $ 40,516 $ 16,300 $ 16,300 |
Schedule of aggregate core deposit intangible amortization expense | Years Ended December 31, (in thousands) 2023 2022 2021 Core deposit amortization expense $ 405 $ — $ 189 |
INTEREST RATE SWAPS (Tables)
INTEREST RATE SWAPS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTEREST RATE SWAPS | |
Summary of interest rate swaps related to clients | 2023 2022 Notional Notional December 31, (in thousands) Bank Position Amount Fair Value Amount Fair Value Interest rate swaps with Bank clients - Assets Pay variable/receive fixed $ 120,442 $ 4,066 $ 40,032 $ 1,386 Interest rate swaps with Bank clients - Liabilities Pay variable/receive fixed 95,820 (4,867) 91,636 (6,742) Interest rate swaps with Bank clients - Total Pay variable/receive fixed $ 216,262 $ (801) $ 131,668 $ (5,356) Offsetting interest rate swaps with institutional swap dealer - Assets Pay fixed/receive variable 95,820 4,867 91,636 6,742 Offsetting interest rate swaps with institutional swap dealer - Liabilities Pay fixed/receive variable 120,442 (4,066) 40,032 (1,386) Offsetting interest rate swaps with institutional swap dealer - Total Pay fixed/receive variable $ 216,262 $ 801 $ 131,668 $ 5,356 Total $ 432,524 $ — $ 263,336 $ — |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DEPOSITS | |
Composition of deposit portfolio | December 31, (in thousands) 2023 2022 Core Bank: Demand $ 1,158,051 $ 1,336,082 Money market accounts 1,007,356 707,272 Savings 263,238 323,015 Reciprocal money market 188,078 28,635 Individual retirement accounts (1) 33,793 38,640 Time deposits, $250 and over (1) 101,787 54,855 Other certificates of deposit (1) 225,614 129,324 Reciprocal time deposits (1) 90,857 7,405 Wholesale brokered deposits (1) 88,767 — Total Core Bank interest-bearing deposits 3,157,541 2,625,228 Total Core Bank noninterest-bearing deposits 1,239,466 1,464,493 Total Core Bank deposits 4,397,007 4,089,721 Republic Processing Group: Wholesale brokered deposits (1) 199,960 — Money market accounts 18,664 3,849 Total RPG interest-bearing deposits 218,624 3,849 Noninterest-bearing prepaid card deposits 318,769 328,655 Other noninterest-bearing deposits 118,763 115,620 Total RPG noninterest-bearing deposits 437,532 444,275 Total RPG deposits 656,156 448,124 Total deposits $ 5,053,163 $ 4,537,845 (1) Represents time deposits. |
Schedule of maturities of all time deposits, including brokered certificates of deposit | Weighted Average Years (dollars in thousands) Principal Rate 2024 $ 601,695 4.56 % 2025 21,843 2.02 2026 93,070 5.07 2027 7,324 1.62 2028 16,846 4.01 Thereafter — — Total $ 740,778 4.51 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
Schedule of securities sold under agreements to repurchase | December 31, (dollars in thousands) 2023 2022 Outstanding balance at end of period $ 97,618 $ 216,956 Weighted average interest rate at end of period 0.50 % 0.41 % Fair value of securities pledged: U.S. Treasury securities and U.S. Government agencies $ 99,530 $ 254,296 Total securities pledged $ 99,530 $ 254,296 Years Ended December 31, (in thousands) 2023 2022 2021 Average outstanding balance during the period $ 134,632 $ 265,188 $ 231,430 Weighted average interest rate during the period 0.43 % 0.15 % 0.03 % Maximum outstanding at any month end during the period $ 311,035 $ 303,315 $ 432,047 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Federal Home Loan Bank Advances | December 31, (in thousands) 2023 2022 Overnight advances $ 110,000 $ 75,000 Fixed interest rate advances 270,000 20,000 Total FHLB advances $ 380,000 $ 95,000 |
Aggregate Future Principal Payments on FHLB Advances | Weighted Average Year (dollars in thousands) Principal Rate 2024 $ 110,000 5.38 % 2025 — — 2026 30,000 4.82 2027 80,000 4.01 2028 160,000 4.39 Total $ 380,000 4.63 % |
Information Regarding Overnight FHLB Advances | December 31, (dollars in thousands) 2023 2022 Outstanding balance at end of period $ 110,000 $ 75,000 Weighted average interest rate at end of period 5.38 % 4.36 % Years Ended December 31, (dollars in thousands) 2023 2022 2021 Average outstanding balance during the period $ 197,185 $ 4,630 $ 28,767 Weighted average interest rate during the period 5.06 % 0.53 % 0.15 % Maximum outstanding at any month end during the period $ 485,000 $ 75,000 $ 25,000 |
Real Estate Loans Pledged | December 31, (in thousands) 2023 2022 First-lien, single family residential real estate $ 1,345,752 $ 1,106,287 Home equity lines of credit 266,389 219,644 Multi-family commercial real estate 133,565 — |
OFF BALANCE SHEET RISKS, COMM_2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | |
Commitments Exclusive of Mortgage Bank Loan Commitments | December 31, (in thousands) 2023 2022 Unused warehouse lines of credit $ 623,277 $ 733,940 Unused home equity lines of credit 446,006 410,057 Unused loan commitments - other 1,159,284 951,021 Standby letters of credit 11,012 9,735 FHLB letter of credit — 643 Total commitments $ 2,239,579 $ 2,105,396 |
Schedule of roll-forward of the ACLC | ACLC Roll-forward Years Ended December 31, 2023 2022 Beginning Charge- Ending Beginning Charge- Ending (in thousands) Balance Provision offs Recoveries Balance Balance Provision offs Recoveries Balance Loan Commitments Unused warehouse lines of credit $ 190 $ (74) $ — $ — $ 116 $ 154 $ 36 $ — $ — $ 190 Unused home equity lines of credit 332 (277) — — 55 247 85 — — 332 Unused construction lines of credit 384 436 — — 820 383 1 — — 384 Unused loan commitments - other 344 5 — — 349 268 76 — — 344 Total $ 1,250 $ 90 $ — $ — $ 1,340 $ 1,052 $ 198 $ — $ — $ 1,250 |
STOCKHOLDERS' EQUITY AND REGU_2
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | |
Schedule of compliance with regulatory capital requirements | Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 968,844 16.10 % $ 481,522 8.00 % NA NA Republic Bank & Trust Company 931,923 15.50 481,147 8.00 $ 601,433 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 893,658 14.85 270,856 4.50 NA NA Republic Bank & Trust Company 856,744 14.25 270,645 4.50 390,932 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 893,658 14.85 361,141 6.00 NA NA Republic Bank & Trust Company 856,744 14.25 360,860 6.00 481,147 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 893,658 13.89 257,442 4.00 NA NA Republic Bank & Trust Company 856,744 13.25 258,697 4.00 323,371 5.00 Minimum Requirement to be Well Capitalized Minimum Requirement Under Prompt for Capital Adequacy Corrective Action Actual Purposes Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total capital to risk-weighted assets Republic Bancorp, Inc. $ 941,865 17.92 % $ 420,514 8.00 % NA NA Republic Bank & Trust Company 904,592 17.23 420,040 8.00 $ 525,050 10.00 % Common equity tier 1 capital to risk-weighted assets Republic Bancorp, Inc. 877,735 16.70 236,539 4.50 NA NA Republic Bank & Trust Company 840,462 16.01 236,273 4.50 341,283 6.50 Tier 1 (core) capital to risk-weighted assets Republic Bancorp, Inc. 877,735 16.70 315,386 6.00 NA NA Republic Bank & Trust Company 840,462 16.01 315,030 6.00 420,040 8.00 Tier 1 leverage capital to average assets Republic Bancorp, Inc. 877,735 14.81 237,106 4.00 NA NA Republic Bank & Trust Company 840,462 14.09 238,578 4.00 298,222 5.00 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at December 31, 2023 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 $ 177,784 $ 229,249 $ — $ 407,033 Private label mortgage-backed security — — 1,773 1,773 Mortgage-backed securities - residential — 154,710 — 154,710 Collateralized mortgage obligations — 21,659 — 21,659 Corporate bonds — 2,020 — 2,020 Trust preferred security — — 4,118 4,118 Total available-for-sale debt securities $ 177,784 $ 407,638 $ 5,891 $ 591,313 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 174 $ — $ 174 Community Reinvestment Act mutual fund — — — — Total equity securities with readily determinable fair value $ — $ 174 $ — $ 174 Mortgage loans held for sale $ — $ 3,227 $ — $ 3,227 Consumer loans held for sale — — 7,914 7,914 Rate lock commitments — 243 — 243 Interest rate swap agreements — 8,933 — 8,933 Financial liabilities: Mandatory forward contracts $ — $ 61 $ — $ 61 Interest rate swap agreements — 8,933 — 8,933 Fair Value Measurements at December 31, 2022 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 $ 193,385 $ 217,756 $ — $ 411,141 Private label mortgage-backed security — — 2,127 2,127 Mortgage-backed securities - residential — 171,873 — 171,873 Collateralized mortgage obligations — 21,368 — 21,368 Corporate bonds — 10,001 — 10,001 Trust preferred security — — 3,855 3,855 Total available-for-sale debt securities $ 193,385 $ 420,998 $ 5,982 $ 620,365 Equity securities with readily determinable fair value: Freddie Mac preferred stock $ — $ 111 $ — $ 111 Total equity securities with readily determinable fair value $ — $ 111 $ — $ 111 Mortgage loans held for sale $ — $ 1,302 $ — $ 1,302 Consumer loans held for sale — — 4,706 4,706 Consumer loans held for investment — — 2 2 Rate lock commitments — 2 — 2 Interest rate swap agreements — 8,127 — 8,127 Financial liabilities: Mandatory forward contracts $ — $ 67 $ — $ 67 Interest rate swap agreements — 8,127 — 8,127 |
Assets Measured at Fair Value on a Non-Recurring Basis | Fair Value Measurements at December 31, 2023 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 Collateral-dependent loans: Residential real estate: Owner-occupied $ — $ — $ 1,580 $ 1,580 Commercial real estate — — 795 795 Home equity — — 104 104 Total collateral-dependent loans* $ — $ — $ 2,479 $ 2,479 Other real estate owned: Commercial real estate $ — $ — $ 1,370 $ 1,370 Total other real estate owned $ — $ — $ 1,370 $ 1,370 Fair Value Measurements at December 31, 2022 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 Collateral-dependent loans: Residential real estate: Owner-occupied $ — $ — $ 1,456 $ 1,456 Commercial real estate — — 906 906 Total collateral-dependent loans* $ — $ — $ 2,362 $ 2,362 Other real estate owned: Residential real estate $ — $ — $ 1,581 $ 1,581 Total other real estate owned $ — $ — $ 1,581 $ 1,581 * The difference between the carrying value and the fair value of collateral dependent or impaired loans measured at fair value is reconciled in a subsequent table of this Footnote. |
Provisions for collateral dependent impaired loans | Years Ended December 31, (in thousands) 2023 2022 2021 Provision on collateral-dependent loans $ (4) $ 7 $ 960 |
Other Real Estate Owned | December 31, (in thousands) 2023 2022 2021 Other real estate owned carried at fair value $ 1,370 $ 1,581 $ 1,792 Other real estate owned carried at cost — — — Total carrying value of other real estate owned $ 1,370 $ 1,581 $ 1,792 Other real estate owned write-downs during the years ended $ 211 $ 211 $ 211 |
Carrying amount and estimated fair values of financial instruments | Fair Value Measurements at December 31, 2023: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 316,567 $ 316,567 $ — $ — $ 316,567 Available-for-sale debt securities 591,313 177,784 407,638 5,891 591,313 Held-to-maturity debt securities 76,387 — 76,167 — 76,167 Equity securities with readily determinable fair values 174 — 174 — 174 Mortgage loans held for sale, at fair value 3,227 — 3,227 — 3,227 Consumer loans held for sale, at fair value 7,914 — — 7,914 7,914 Consumer loans held for sale, at the lower of cost or fair value 16,094 — — 16,094 16,094 Loans, net 5,157,731 — — 4,874,974 4,874,974 Federal Home Loan Bank stock 23,770 — — — NA Accrued interest receivable 18,447 — 4,097 14,350 18,447 Mortgage servicing rights 7,411 — 16,054 — 16,054 Rate lock commitments 243 — 243 — 243 Interest rate swap agreements 8,933 — 8,933 — 8,933 Liabilities: Noninterest-bearing deposits $ 1,676,998 $ — $ 1,676,998 $ — $ 1,676,998 Transaction deposits 2,924,114 — 2,924,114 — 2,924,114 Time deposits 452,051 — 446,218 — 446,218 Securities sold under agreements to repurchase and other short-term borrowings 99,530 — 99,530 — 99,530 Federal Home Loan Bank advances 380,000 — 382,062 — 382,062 Accrued interest payable 4,073 — 4,073 — 4,073 Rate lock commitments 243 — 243 — 243 Mandatory forward contracts 61 — 61 — 61 Interest rate swap agreements 8,933 — 8,933 — 8,933 NA - Not applicable Fair Value Measurements at December 31, 2022: Total Carrying Fair (in thousands) Value Level 1 Level 2 Level 3 Value Assets: Cash and cash equivalents $ 313,689 $ 313,689 $ — $ — $ 313,689 Available-for-sale debt securities 620,365 193,385 420,998 5,982 620,365 Held-to-maturity debt securities 87,386 — 87,357 — 87,357 Equity securities with readily determinable fair values 111 — 111 — 111 Mortgage loans held for sale, at fair value 1,302 — 1,302 — 1,302 Consumer loans held for sale, at fair value 4,706 — — 4,706 4,706 Consumer loans held for sale, at the lower of cost or fair value 13,169 — — 13,169 13,169 Loans, net 4,445,389 — — 4,276,423 4,276,423 Federal Home Loan Bank stock 9,146 — — — NA Accrued interest receivable 13,572 — 2,462 11,110 13,572 Mortgage servicing rights 8,769 — 17,592 — 17,592 Rate lock commitments 2 — 2 — 2 Interest rate swap agreements 8,127 — 8,127 — 8,127 Liabilities: Noninterest-bearing deposits $ 1,908,768 $ — $ 1,908,768 $ — $ 1,908,768 Transaction deposits 2,398,853 — 2,398,853 — 2,398,853 Time deposits 230,224 — 223,912 — 223,912 Securities sold under agreements to repurchase and other short-term borrowings 216,956 — 216,956 — 216,956 Federal Home Loan Bank advances 95,000 — 93,044 — 93,044 Accrued interest payable 239 — 239 — 239 Mandatory forward contracts 67 — 67 — 67 Interest rate swap agreements 8,127 — 8,127 — 8,127 NA - Not applicable |
Nonrecurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Range Fair Valuation Unobservable (Weighted December 31, 2023 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner-occupied $ 1,580 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 27% ( 4% ) Collateral-dependent loans - commercial real estate $ 795 Sales comparison approach Adjustments determined for differences between comparable sales 11% ( 11% ) Collateral-dependent loans - home equity $ 104 Sales comparison approach Adjustments determined for differences between comparable sales 5% ( 5% ) Other real estate owned - commercial real estate $ 1,370 Sales comparison approach Adjustments determined for differences between comparable sales 39% (39%) Range Fair Valuation Unobservable (Weighted December 31, 2022 (dollars in thousands) Value Technique Inputs Average) Collateral-dependent loans - residential real estate owner-occupied $ 1,456 Sales comparison approach Adjustments determined for differences between comparable sales 0% - 41% (11%) Collateral-dependent loans - commercial real estate $ 906 Sales comparison approach Adjustments determined for differences between comparable sales 16% (16%) Other real estate owned - commercial real estate $ 1,581 Sales comparison approach Adjustments determined for differences between comparable sales 39% |
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 | Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 2,127 $ 2,731 $ 2,957 Total gains or losses included in earnings: Net change in unrealized gain (loss) 46 (29) 63 Principal paydowns (400) (575) (289) Balance, end of period $ 1,773 $ 2,127 $ 2,731 |
Private label mortgage backed security | Recurring basis | |
Fair Value Disclosures | |
Fair value inputs quantitative information | Fair Valuation December 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 1,773 Discounted cash flow (1) Constant prepayment rate 3.9% - 4.5% (2) Probability of default 1.8% - 9.4% (3) Loss severity 25% - 35% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Range Private label mortgage-backed security $ 2,127 Discounted cash flow (1) Constant prepayment rate 4.5% - 4.7% (2) Probability of default 1.8% - 9.3% (3) Loss severity 25% - 35% |
Trust Preferred Securities | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 3,855 $ 3,847 $ 3,800 Total gains or losses included in earnings: Discount accretion 59 57 53 Net change in unrealized gain (loss) 204 (49) (6) Balance, end of period $ 4,118 $ 3,855 $ 3,847 |
Mortgage Loans Held for Sale | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | December 31, (in thousands) 2023 2022 Aggregate fair value $ 3,227 $ 1,302 Contractual balance 3,168 1,265 Unrealized gain 59 37 |
Schedule of gains and losses from changes in fair value included in earnings | Years Ended December 31, (in thousands) 2023 2022 2021 Interest income $ 282 $ 519 $ 1,081 Change in fair value 22 (688) (1,361) Total included in earnings $ 304 $ (169) $ (280) |
Consumer loans | |
Fair Value Disclosures | |
Schedule of aggregate fair value, contractual balance and unrealized gain | December 31, (in thousands) 2023 2022 Aggregate fair value $ 7,914 $ 4,706 Contractual balance 7,964 4,734 Unrealized loss (50) (28) |
Schedule of gains and losses from changes in fair value included in earnings | Years Ended December 31, (in thousands) 2023 2022 2021 Interest income $ 4,242 $ 9,970 $ 7,708 Change in fair value (22) (142) 100 Total included in earnings $ 4,220 $ 9,828 $ 7,808 |
Consumer loans | Nonrecurring basis | |
Fair Value Disclosures | |
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs | Fair Valuation December 31, 2023 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 7,914 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% Fair Valuation December 31, 2022 (dollars in thousands) Value Technique Unobservable Inputs Rate Consumer loans held for sale $ 4,706 Contract Terms (1) Net Premium 0.15% (2) Discounted Sales 10.00% |
MORTGAGE BANKING ACTIVITIES (Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
MORTGAGE BANKING ACTIVITIES | |
Activity for Mortgage Loans Held for Sale, at fair value | December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 1,302 $ 29,393 $ 46,867 Origination of mortgage loans held for sale 77,800 205,365 680,714 Proceeds from the sale of mortgage loans held for sale (77,928) (238,398) (717,847) Net gain on sale of mortgage loans held for sale 2,053 4,942 19,659 Balance, end of period $ 3,227 $ 1,302 $ 29,393 |
Loans Serviced by Bank | December 31, (in thousands) 2023 2022 FHLMC $ 899,444 $ 966,677 FNMA 417,475 420,637 Total $ 1,316,919 $ 1,387,314 |
Components of Mortgage Banking Income | Years Ended December 31, (in thousands) 2023 2022 2021 Net gain realized on sale of mortgage loans held for sale $ 1,784 $ 7,164 $ 23,114 Net change in fair value recognized on loans held for sale 22 (688) (1,361) Net change in fair value recognized on rate lock loan commitments 242 (1,402) (3,136) Net change in fair value recognized on forward contracts 5 (132) 1,042 Net gain recognized 2,053 4,942 19,659 Loan servicing income 3,370 3,518 3,288 Amortization of mortgage servicing rights (1,881) (2,264) (3,453) Change in mortgage servicing rights valuation allowance — — 500 Net servicing income recognized 1,489 1,254 335 Total Mortgage Banking income $ 3,542 $ 6,196 $ 19,994 |
Activity for capitalized mortgage servicing rights | (in thousands) 2023 2022 2021 Balance, beginning of period $ 8,770 $ 9,196 $ 7,095 Additions 522 1,838 5,054 Amortized to expense (1,881) (2,264) (3,453) Change in valuation allowance — — 500 Balance, end of period $ 7,411 $ 8,770 $ 9,196 |
Schedule of activity in the valuation allowance for capitalized mortgage servicing rights | Years Ended December 31, (in thousands) 2023 2022 2021 Beginning valuation allowance $ — $ — $ 500 Charge during the period — — (500) Ending valuation allowance $ — $ — $ — |
Other information relating to mortgage servicing rights | December 31, (in thousands) 2023 2022 Fair value of mortgage servicing rights portfolio $ 16,054 $ 17,145 Monthly weighted average prepayment rate of unpaid principal balance* 128 % 127 % Discount rate 10.26 % 10.21 % Weighted average foreclosure rate 0.16 % 0.10 % Weighted average life in years 7.52 7.54 * Rates are applied to individual tranches with similar characteristics. |
Schedule of estimated future amortization expense of the MSR portfolio (net of the impairment charge) | Year (in thousands) 2024 $ 1,007 2025 999 2026 996 2027 939 2028 843 2029 717 Thereafter 1,910 Total $ 7,411 |
Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives | 2023 2022 Notional Notional December 31, (in thousands) Amount Fair Value Amount Fair Value Included in Mortgage loans held for sale: Mortgage loans held for sale, at fair value $ 3,168 $ 3,227 $ 1,265 $ 1,302 Included in other assets: Rate lock loan commitments $ 9,275 $ 243 $ 4,118 $ 2 Mandatory forward contracts — — — — Included in other liabilities: Mandatory forward contracts $ 9,092 $ 61 $ 4,009 $ 67 |
STOCK PLANS AND STOCK BASED C_2
STOCK PLANS AND STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Schedule of weighted average assumptions used to determine the fair value of stock options granted | Years Ended December 31, 2023 2022 2021 Risk-free interest rate 3.86 % 1.35 % 0.20 % Expected dividend yield 3.19 2.50 3.18 Expected stock price volatility 33.14 32.12 31.71 Expected life of options (in years) 4 4 4 Estimated fair value per share $ 9.65 $ 10.41 $ 6.26 |
Summary of stock option activity | Weighted Weighted Average Options Average Remaining Aggregate Class A Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding, January 1, 2022 460,502 $ 37.54 Granted 54,281 50.34 Exercised (5,250) 34.17 Forfeited or expired (44,500) 40.32 Outstanding, December 31, 2022 465,033 $ 38.81 2.25 $ 2,322,635 Outstanding, January 1, 2023 465,033 $ 38.81 Granted 69,617 42.74 Exercised (10,000) 46.08 Forfeited or expired (64,000) 45.09 Outstanding, December 31, 2023 460,650 $ 38.37 1.87 $ 7,734,879 Unvested 287,148 $ 38.76 2.42 $ 4,708,333 Exercisable (vested) at December 31, 2023 173,502 $ 37.72 0.96 $ 3,026,546 |
Schedule of intrinsic value and cash received from options exercised and weighted average fair value of options granted | Years Ended December 31, (in thousands, except per share data) 2023 2022 2021 Total intrinsic value of options exercised $ 58 $ 57 $ 1,335 Total cash received from options exercised, net of shares redeemed (2) 52 (142) Total tax benefit of options exercised 1 6 223 |
Schedule of loan balances of employees that were originated to fund stock option exercises | December 31, (in thousands) 2023 2022 Outstanding loans $ 129 $ 178 |
Summary of activity for non-vested restricted stock awards | Restricted Weighted-Average Weighted-Average Stock Awards Grant Date Remaining Contractual Class A Shares Fair Value Term (years) Outstanding, January 1, 2022 56,059 $ 39.12 Granted 12,174 46.05 Forfeited — — Earned and issued (3,500) 37.74 Outstanding, December 31, 2022 64,733 $ 40.49 2.25 Outstanding, January 1, 2023 64,733 $ 40.49 Granted 55,157 43.60 Forfeited (1,470) 49.08 Earned and issued (31,354) 37.56 Outstanding, December 31, 2023 87,066 $ 43.37 1.98 Unvested 87,066 $ 43.37 1.98 |
Summary of PSU activity | Performance Stock Units Weighted-Average Class A Shares Grant Date Fair Value Outstanding, January 1, 2022 — $ — Granted 8,874 51.39 Forfeited (8,874) 51.39 Earned and issued — — Outstanding, December 31, 2022 — $ — Outstanding, January 1, 2023 — $ — Granted 10,999 42.74 Forfeited (10,999) 42.74 Earned and issued — — Outstanding, December 31, 2023 — $ — |
Schedule of expenses recorded related to stock options and restricted stock awards | Years Ended December 31, (in thousands) 2023 2022 2021 Stock option expense $ 774 $ 560 $ 574 Restricted stock award expense 829 937 738 Performance stock unit expense (281) 152 129 Total expense $ 1,322 $ 1,649 $ 1,441 |
Schedule of estimated unrecognized stock option and restricted stock award expense related to unvested options and awards | Stock Restricted Year (in thousands) Options Stock Awards Total 2024 $ 489 $ 1,052 $ 1,541 2025 263 844 1,107 2026 18 539 557 2027 5 8 13 2028 — — — Total $ 775 $ 2,443 $ 3,218 |
Schedule of employee stock purchase plan | Years Ended December 31, (in thousands) 2023 2022 2021 ESPP expense $ 111 $ 104 $ 104 |
Director | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Schedule of information on deferred compensation | Outstanding Weighted-Average Stock Market Price Units at Date of Deferral Outstanding, January 1, 2022 86,800 $ 29.98 Deferred fees and dividend equivalents converted to stock units 18,241 46.58 Stock units converted to Class A Common Shares (5,814) 49.51 Outstanding, December 31, 2022 99,227 $ 31.43 Outstanding, January 1, 2023 99,227 $ 31.43 Deferred fees and dividend equivalents converted to stock units 17,811 43.14 Stock units converted to Class A Common Shares (3,635) 33.29 Outstanding, December 31, 2023 113,403 $ 35.65 Vested 113,403 $ 35.65 |
Schedule of deferred compensation expenses | Years Ended December 31, (in thousands) 2023 2022 2021 Director deferred compensation expense $ 777 $ 503 $ 417 |
Key Employees | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Schedule of information on deferred compensation | Outstanding Weighted-Average Weighted-Average Stock Market Price Remaining Contractual Units at Date of Deferral Term (years) Outstanding, January 1, 2022 65,318 $ 40.57 Deferred base salaries and dividend equivalents converted to stock units 9,389 43.08 Matching stock units credited 9,315 43.08 Matching stock units forfeited (1,151) 48.25 Stock units converted to Class A Common Shares — — Outstanding, December 31, 2022 82,871 $ 41.03 3.13 Outstanding, January 1, 2023 82,871 $ 41.03 Deferred base salaries and dividend equivalents converted to stock units 10,646 45.03 Matching stock units credited 10,578 44.90 Matching stock units forfeited (2,753) 41.09 Stock units converted to Class A Common Shares (5,084) 43.01 Outstanding, December 31, 2023 96,258 $ 42.17 2.84 Vested 59,626 $ 42.60 3.11 Unvested 36,632 $ 41.48 2.40 |
Schedule of deferred compensation expenses | Years Ended December 31, (in thousands) 2023 2022 2021 Key-employee - base salary $ 484 $ 408 $ 429 Key-employee - employer match 250 317 178 Total $ 734 $ 725 $ 607 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BENEFIT PLANS | |
Schedule of normal and bonus contributions | Years Ended December 31, (in thousands) 2023 2022 2021 Employer matching contributions $ 3,136 $ 3,096 $ 3,373 Discretionary employer bonus matching contributions — — — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of allocation of federal and state income tax between current and deferred portion | Years Ended December 31, (in thousands) 2023 2022 2021 Current expense: Federal $ 22,015 $ 24,537 $ 19,348 State 5,237 5,939 4,169 Deferred expense: Federal (3,329) (4,273) (246) State (1,084) (464) 560 Total $ 22,839 $ 25,739 $ 23,831 |
Schedule of effective tax rate that differs from that computed at the federal statutory rate | Years Ended December 31, 2023 2022 2021 Federal corporate tax rate 21.00 % 21.00 % 21.00 % Effect of: State taxes, net of federal benefit 2.90 3.70 3.32 Low-income housing and R&D tax credits (2.67) (1.88) (1.76) Nontaxable income (1.38) (1.00) (1.06) Tax benefit of vesting employee benefits (0.06) (0.01) (0.20) Other, net 0.38 0.22 0.08 Effective tax rate 20.17 22.03 21.38 |
Schedule of deferred tax assets and liabilities | December 31, (in thousands) 2023 2022 Deferred tax assets: Allowance for credit losses $ 20,654 $ 17,427 Operating lease liabilities 8,940 9,362 Accrued expenses 6,285 5,901 Net operating loss carryforward(1) 1,191 1,371 Acquisition fair value adjustments 55 101 Other-than-temporary impairment 582 567 R&D Capitalization 4,492 2,271 Unrealized investment security losses 6,803 10,657 Other 2,337 2,248 Total deferred tax assets 51,339 49,905 Deferred tax liabilities: Right of use assets - operating leases (8,726) (9,166) Depreciation and amortization (2,805) (2,835) Federal Home Loan Bank dividends (757) (745) Deferred loan costs (2,732) (2,153) Lease Financing Receivables (3,058) (1,996) Mortgage servicing rights (1,864) (2,172) Unrealized investment securities gains — — Total deferred tax liabilities (19,942) (19,067) Less: Valuation allowance — — Net deferred tax asset $ 31,397 $ 30,838 (1) The Company has federal and state net operating loss carryforwards (acquired in its 2016 Cornerstone acquisition) of $5.1 million (federal) and $2.6 million (state). These carryforwards begin to expire in 2030 for both federal and state purposes. The use of these federal and state carryforwards is each limited under IRC Section 382 to $722,000 annually for federal and $634,000 annually for state. Finally, the Company has state AMT credit carryforwards of $15,000 with no expiration date. |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | Years Ended December 31, (in thousands) 2023 2022 2021 Balance, beginning of period $ 2,866 $ 2,191 $ 1,941 Additions based on tax related to the current period 280 950 433 Additions for tax positions of prior periods 36 — 253 Reductions due to the statute of limitations (320) (275) (436) Balance, end of period $ 2,862 $ 2,866 $ 2,191 |
Schedule of amount of interest and penalties | Years Ended December 31, (in thousands) 2023 2022 2021 Interest and penalties recorded in the income statement as a component of income tax expense $ 314 $ 72 $ 267 Interest and penalties accrued on balance sheet 1,163 849 777 |
Schedule of low income housing tax investments and obligations | December 31, (in thousands) 2023 2022 Unfunded Unfunded Investment Accounting Method Investments Obligations Investments Obligations Low-income housing tax credit - Gross Proportional amortization $ 57,596 $ 58,619 $ 42,306 $ 43,609 Life-to-date amortization (15,904) NA (10,591) NA Low-income housing tax credit - Net $ 41,692 $ 58,619 $ 31,715 $ 43,609 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EARNINGS PER SHARE | |
Earnings per share and diluted earnings per share | Years Ended December 31, (in thousands, except per share data) 2023 2022 2021 Net income $ 90,374 $ 91,106 $ 87,611 Dividends declared on Common Stock: Class A Shares (26,002) (24,122) (22,451) Class B Shares (2,933) (2,679) (2,435) Undistributed net income for basic earnings per share 61,439 64,305 62,725 Weighted average potential dividends on Class A shares upon exercise of dilutive options (92) (87) (100) Undistributed net income for diluted earnings per share $ 61,347 $ 64,218 $ 62,625 Weighted average shares outstanding: Class A Shares 17,634 17,876 18,497 Class B Shares 2,158 2,161 2,178 Effect of dilutive securities on Class A Shares outstanding 61 64 82 Weighted average shares outstanding including dilutive securities 19,853 20,101 20,757 Basic earnings per share: Class A Common Stock: Per share dividends distributed $ 1.50 $ 1.36 $ 1.23 Undistributed earnings per share* 3.14 3.24 3.06 Total basic earnings per share - Class A Common Stock $ 4.64 $ 4.60 $ 4.29 Class B Common Stock: Per share dividends distributed $ 1.36 $ 1.240 $ 1.12 Undistributed earnings per share* 2.85 2.95 2.78 Total basic earnings per share - Class B Common Stock $ 4.21 $ 4.19 $ 3.90 Diluted earnings per share: Class A Common Stock: Per share dividends distributed $ 1.50 $ 1.36 $ 1.23 Undistributed earnings per share* 3.12 3.23 3.05 Total diluted earnings per share - Class A Common Stock $ 4.62 $ 4.59 $ 4.28 Class B Common Stock: Per share dividends distributed $ 1.36 $ 1.240 $ 1.12 Undistributed earnings per share* 2.84 2.93 2.77 Total diluted earnings per share - Class B Common Stock $ 4.20 $ 4.17 $ 3.89 *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 | Years Ended December 31, 2023 2022 2021 Antidilutive stock options 149,169 178,000 144,000 Average antidilutive stock options 145,809 128,000 142,625 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | |
Schedule of loans made to executive officers and directors of the company and their related interests | (in thousands) Beginning balance $ 6,827 Effect of changes in composition of related parties 2,861 New loans 3,944 Repayments (2,687) Ending balance $ 10,945 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER COMPREHENSIVE INCOME | |
Summary of OCI components and related tax effects | Years Ended December 31, (in thousands) 2023 2022 2021 Available-for-Sale Debt Securities: Unrealized gain (loss) on AFS debt securities $ 15,380 $ (45,109) $ (8,908) Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings 46 (29) 63 Net gains (losses) 15,426 (45,138) (8,845) Income tax benefit (expense) related to items of other comprehensive income (3,855) 11,285 2,210 Net of tax 11,571 (33,853) (6,635) |
Summary of the AOCI balances, net of tax | 2023 (in thousands) December 31, 2022 Change December 31, 2023 Unrealized gain (loss) on AFS debt securities $ (32,934) $ 11,525 $ (21,409) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 955 46 1,001 Total unrealized gain (loss) $ (31,979) $ 11,571 $ (20,408) 2022 (in thousands) December 31, 2021 Change December 31, 2022 Unrealized gain (loss) on AFS debt securities $ 890 $ (33,824) $ (32,934) Unrealized gain on AFS debt security for which a portion of OTTI has been recognized in earnings 984 (29) 955 Total unrealized gain (loss) $ 1,874 $ (33,853) $ (31,979) |
PARENT COMPANY CONDENSED FINA_2
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
Schedule of balance sheets | December 31, (in thousands) 2023 2022 Assets: Cash and cash equivalents $ 37,778 $ 36,436 Securities available for sale 5,872 3,855 Investment in bank subsidiary 875,503 819,144 Investment in non-bank subsidiaries — 2,773 Other assets 2,598 2,465 Total assets $ 921,751 $ 864,673 Liabilities and Stockholders’ Equity: Other liabilities 8,995 8,060 Stockholders’ equity 912,756 856,613 Total liabilities and stockholders’ equity $ 921,751 $ 864,673 |
Schedule of statements of income | Years Ended December 31, (in thousands) 2023 2022 2021 Income and expenses: Dividends from subsidiary $ 48,000 $ 59,460 $ 28,300 Interest income 429 229 143 Other income (37) 54 53 Less: Interest expense — — 507 Less: Other expenses 1,097 819 760 Income before income tax benefit 47,295 58,924 27,229 Income tax benefit 166 124 245 Income before equity in undistributed net income of subsidiaries 47,461 59,048 27,474 Equity in undistributed net income of subsidiaries 42,913 32,058 60,137 Net income $ 90,374 $ 91,106 $ 87,611 Comprehensive income $ 101,945 $ 57,253 $ 80,976 |
Schedule of statements of cash flows | Years Ended December 31, (in thousands) 2023 2022 2021 Operating activities: Net income $ 90,374 $ 91,106 $ 87,611 Adjustments to reconcile net income to net cash provided by operating activities: Accretion of investment securities (59) (56) (53) Equity in undistributed net income of subsidiaries (42,913) (32,058) (60,137) Director deferred compensation 769 427 347 Change in other assets (1,639) 4,571 (736) Change in other liabilities 3,973 (5,428) 1,694 Net cash provided by operating activities 50,505 58,562 28,726 Investing activities: Investment in venture capital fund (532) (337) — Investment in subsidiary bank (627) (590) (591) Net cash used in investing activities (1,159) (927) (591) Financing activities: Common Stock repurchases (20,279) (12,577) (47,528) Net proceeds from Class A Common Stock purchased through employee stock purchase plan 627 590 591 Net proceeds from Common Stock options exercised and equity awards (2) 52 (142) Payoff of subordinated note, net of common security interest — — (40,000) Cash dividends paid (28,350) (26,145) (24,699) Net cash used in financing activities (48,004) (38,080) (111,778) Net change in cash and cash equivalents 1,342 19,555 (83,643) Cash and cash equivalents at beginning of period 36,436 16,881 100,524 Cash and cash equivalents at end of period $ 37,778 $ 36,436 $ 16,881 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of net revenues by reportable segments | Year Ended December 31, 2023 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income (1) $ 194,516 $ 9,447 $ 282 $ 204,245 $ 29,557 $ 15,729 $ 39,247 $ 84,533 $ 288,778 Noninterest income: Service charges on deposit accounts 13,810 44 — 13,854 — — 1 1 13,855 Net refund transfer fees — — — — 15,748 — — 15,748 15,748 Mortgage banking income (1) — — 3,542 3,542 — — — — 3,542 Interchange fee income 12,926 — — 12,926 126 4 1 131 13,057 Program fees (1) — — — — — 2,827 12,755 15,582 15,582 Increase in cash surrender value of BOLI (1) 2,719 — — 2,719 — — — — 2,719 Death benefits in excess of cash surrender value of life insurance (1) 1,728 — — 1,728 — — — — 1,728 Net losses on OREO (211) — — (211) — — — — (211) Other 4,913 — 74 4,987 215 154 81 450 5,437 Total noninterest income 35,885 44 3,616 39,545 16,089 2,985 12,838 31,912 71,457 Total net revenue $ 230,401 $ 9,491 $ 3,898 $ 243,790 $ 45,646 $ 18,714 $ 52,085 $ 116,445 $ 360,235 Net-revenue concentration (2) 64 % 3 % 1 % 68 % 13 % 5 % 14 % 32 % 100 % (1) This revenue is not subject to ASC 606. (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. Years Ended December 31, 2022 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income (1) $ 171,543 $ 13,729 $ 519 $ 185,791 $ 16,896 $ 4,819 $ 29,185 $ 50,900 $ 236,691 Noninterest income: Service charges on deposit accounts 13,388 50 — 13,438 (12) — — (12) 13,426 Net refund transfer fees — — — — 17,080 — — 17,080 17,080 Mortgage banking income (1) — — 6,196 6,196 — — — — 6,196 Interchange fee income 12,943 — — 12,943 176 6 — 182 13,125 Program fees (1) — — — — — 2,872 13,300 16,172 16,172 Increase in cash surrender value of BOLI (1) 2,526 — — 2,526 — — — — 2,526 Net losses on OREO (211) — — (211) — — — — (211) Contract termination fee — — — — 5,000 — — 5,000 5,000 Legal settlement — — — — 13,000 — — 13,000 13,000 Other 3,002 — 136 3,138 260 98 — 358 3,496 Total noninterest income 31,648 50 6,332 38,030 35,504 2,976 13,300 51,780 89,810 Total net revenue $ 203,191 $ 13,779 $ 6,851 $ 223,821 $ 52,400 $ 7,795 $ 42,485 $ 102,680 $ 326,501 Net-revenue concentration (2) 63 % 4 % 2 % 69 % 16 % 2 % 13 % 31 % 100 % (1) This revenue is not subject to ASC 606. (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. Year Ended December 31, 2021 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income (1) $ 157,249 $ 25,218 $ 1,081 $ 183,548 $ 14,999 $ 838 $ 23,355 $ 39,192 $ 222,740 Noninterest income: Service charges on deposit accounts 12,506 57 — 12,563 (10) — — (10) 12,553 Net refund transfer fees — — — — 20,248 — — 20,248 20,248 Mortgage banking income (1) — — 19,994 19,994 — — — — 19,994 Interchange fee income 12,777 — — 12,777 277 8 — 285 13,062 Program fees (1) — — — — — 3,171 11,066 14,237 14,237 Increase in cash surrender value of BOLI (1) 2,242 — — 2,242 — — — — 2,242 Net losses on OREO (160) — — (160) — — — — (160) Other 4,127 — 191 4,318 81 — — 81 4,399 Total noninterest income 31,492 57 20,185 51,734 20,596 3,179 11,066 34,841 86,575 Total net revenue $ 188,741 $ 25,275 $ 21,266 $ 235,282 $ 35,595 $ 4,017 $ 34,421 $ 74,033 $ 309,315 Net-revenue concentration (2) 61 % 8 % 7 % 76 % 12 % 1 % 11 % 24 % 100 % (1) This revenue is not subject to ASC 606. (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) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
Schedule of segment information | Year Ended December 31, 2023 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income $ 194,516 $ 9,447 $ 282 $ 204,245 $ 29,557 $ 15,729 $ 39,247 $ 84,533 $ 288,778 Provision for expected credit loss expense 8,698 (162) — 8,536 22,559 — 16,529 39,088 47,624 Net refund transfer fees — — — — 15,748 — — 15,748 15,748 Mortgage banking income — — 3,542 3,542 — — — — 3,542 Program fees — — — — — 2,827 12,755 15,582 15,582 Contract termination fee — — — — — — — — — Legal settlement — — — — — — — — — Other noninterest income 35,885 44 74 36,003 341 158 83 582 36,585 Total noninterest income 35,885 44 3,616 39,545 16,089 2,985 12,838 31,912 71,457 Total noninterest expense 160,101 3,547 8,019 171,667 12,035 3,710 11,986 27,731 199,398 Income (loss) before income tax expense 61,602 6,106 (4,121) 63,587 11,052 15,004 23,570 49,626 113,213 Income tax expense (benefit) 11,673 1,365 (907) 12,131 2,196 3,307 5,205 10,708 22,839 Net income (loss) $ 49,929 $ 4,741 $ (3,214) $ 51,456 $ 8,856 $ 11,697 $ 18,365 $ 38,918 $ 90,374 Period-end assets $ 5,504,886 $ 340,224 $ 14,746 $ 5,859,856 $ 228,738 $ 366,117 $ 140,180 $ 735,035 $ 6,594,891 Net interest margin 3.69 % 2.38 % 4.19 % 3.61 % NM 4.59 % NM NM 4.91 % Net-revenue concentration* 64 % 3 % 1 % 68 % 13 5 % 14 % 32 % 100 % Year Ended December 31, 2022 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income $ 171,543 $ 13,729 $ 519 $ 185,791 $ 16,896 $ 4,819 $ 29,185 $ 50,900 $ 236,691 Provision for expected credit loss expense 1,429 (1,117) — 312 9,955 — 12,081 22,036 22,348 Net refund transfer fees — — — — 17,080 — — 17,080 17,080 Mortgage banking income — — 6,196 6,196 — — — — 6,196 Program fees — — — — — 2,872 13,300 16,172 16,172 Contract termination fee — — — — 5,000 — — 5,000 5,000 Legal settlement — — — — 13,000 — — 13,000 13,000 Other noninterest income 31,648 50 136 31,834 424 104 — 528 32,362 Total noninterest income 31,648 50 6,332 38,030 35,504 2,976 13,300 51,780 89,810 Total noninterest expense 149,681 3,604 9,912 163,197 12,377 3,340 8,394 24,111 187,308 Income before income tax expense 52,081 11,292 (3,061) 60,312 30,068 4,455 22,010 56,533 116,845 Income tax expense 11,104 2,539 (673) 12,970 6,905 942 4,922 12,769 25,739 Net income $ 40,977 $ 8,753 $ (2,388) $ 47,342 $ 23,163 $ 3,513 $ 17,088 $ 43,764 $ 91,106 Period-end assets $ 4,894,773 $ 405,052 $ 13,938 $ 5,313,763 $ 46,192 $ 363,067 $ 112,521 $ 521,780 $ 5,835,543 Net interest margin 3.38 % 2.69 % 4.01 % 3.32 % NM 1.37 % NM NM 4.12 % Net-revenue concentration* 63 % 4 % 2 % 69 % 16 2 % 13 % 31 % 100 % Year Ended December 31, 2021 Core Banking Republic Processing Group Total Tax Republic Republic Traditional Warehouse Mortgage Core Refund Payment Credit Total Total (dollars in thousands) Banking Lending Banking Banking Solutions Solutions Solutions RPG Company Net interest income $ 157,249 $ 25,218 $ 1,081 $ 183,548 $ 14,999 $ 838 $ 23,355 $ 39,192 $ 222,740 Provision for expected credit loss expense (38) (281) — (319) 6,683 — 8,444 15,127 14,808 Net refund transfer fees — — — — 20,248 — — 20,248 20,248 Mortgage banking income — — 19,994 19,994 — — — — 19,994 Program fees — — — — — 3,171 11,066 14,237 14,237 Gain on branch divestiture — — — — — — — — — Other noninterest income 31,492 57 191 31,740 348 8 — 356 32,096 Total noninterest income 31,492 57 20,185 51,734 20,596 3,179 11,066 34,841 86,575 Total noninterest expense 145,376 4,210 12,356 161,942 13,611 2,733 4,779 21,123 183,065 Income before income tax expense 21,467 20,981 22,552 73,659 15,301 1,284 22,591 39,176 111,442 Income tax expense 7,685 4,962 1,960 14,607 3,685 279 5,260 9,224 23,831 Net income $ 13,782 $ 16,019 $ 20,592 $ 59,052 $ 11,616 $ 1,005 $ 17,331 $ 29,952 $ 87,611 Period-end assets $ 4,717,836 $ 850,703 $ 43,929 $ 5,775,552 $ 371,647 $ 371,647 $ 109,517 $ 392,773 $ 6,168,325 Net interest margin 3.18 % 3.37 % NM 3.39 % NM NM NM NM 4.10 % Net-revenue concentration* 61 % 8 % 7 % 76 % 12 1 % 11 % 24 % 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. |
ACQUISITION OF CBANK (Tables)
ACQUISITION OF CBANK (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITION OF CBANK | |
Summary of Assets Acquired and Liabilities Assumed | March 15, 2023 As Previously Reported As Recasted As Recorded Fair Value Recast As Recorded Years Ended December 31, (in thousands) by CBank Adjustments Adjustments by Republic Assets acquired: Cash and cash equivalents $ 10,030 $ — $ — $ 10,030 Investment securities 16,463 (4) a (65) a 16,394 Loans 221,707 (4,219) b (150) b 217,338 Allowance for loan and lease losses (2,953) 1,353 c 1,391 c, j (209) Loans, net 218,754 (2,866) 1,241 217,129 Goodwill 954 (954) d — — Core deposit intangible — 2,844 e — 2,844 Premises and equipment, net 162 35 f (24) f 173 Other assets and accrued interest receivable 7,067 (320) g — 6,747 Total assets acquired $ 253,430 $ (1,265) $ 1,152 $ 253,317 Liabilities assumed: Deposits: Noninterest-bearing $ 42,160 $ — $ — $ 42,160 Interest-bearing 179,487 31 h — 179,518 Total deposits 221,647 31 — 221,678 Other liabilities and accrued interest payable 4,709 96 i 50 i 4,855 Total liabilities assumed 226,356 127 50 226,533 Net assets acquired $ 27,074 $ (1,392) $ 1,102 26,784 Cash consideration paid (51,000) Goodwill $ 24,216 Explanation of fair value and recast adjustments: a. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the investment securities. b. Adjustments to loans to reflect estimated fair value adjustments based on the Company’s evaluation of the acquired loan portfolio. c. Adjustments to the Allowance reflect the fair value adjustment to eliminate the acquiree’s recorded allowance for loan losses and other fair value adjustments based on the Company’s evaluation of the acquired loan portfolio. d. Adjustment reflects the fair value adjustment to eliminate the recorded goodwill. e. Adjustment reflects the fair value adjustment for the core deposit intangible asset recorded as a result of the acquisition. f. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the premises and equipment, net. g. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other assets and accrued interest receivable. h. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the assumed time deposits. i. Adjustment reflects the fair value adjustment based on the Company’s evaluation of the other liabilities and accrued interest payable. j. Adjustment reflects a change in estimated fair value based upon further evaluation of PCD loans, including cash payments received subsequent to the date of acquisition. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2023 segment item | |
Basis of Presentation | |
Number of reportable segments | segment | 6 |
Number of banking centers | 47 |
Kentucky | |
Basis of Presentation | |
Number of banking centers | 29 |
Metropolitan Louisville | |
Basis of Presentation | |
Number of banking centers | 19 |
Central Kentucky | |
Basis of Presentation | |
Number of banking centers | 6 |
Georgetown | |
Basis of Presentation | |
Number of banking centers | 1 |
Lexington | |
Basis of Presentation | |
Number of banking centers | 5 |
Northern Kentucky | |
Basis of Presentation | |
Number of banking centers | 4 |
Bellevue | |
Basis of Presentation | |
Number of banking centers | 1 |
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 | 7 |
Metropolitan Cincinnati, Ohio | |
Basis of Presentation | |
Number of banking centers | 4 |
Metropolitan Nashville, Tennessee | |
Basis of Presentation | |
Number of banking centers | 4 |
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 | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SEGMENTS (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jun. 06, 2022 USD ($) | Jan. 31, 2021 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Contract termination fee | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | $ 5,000,000 | |||||||||
Contract termination fee | Green Dot | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | $ 5,000,000 | |||||||||
Legal settlement | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | 13,000,000 | |||||||||
Legal settlement | Green Dot | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | $ 13,000,000 | |||||||||
Republic Processing Group | Contract termination fee | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | 5,000,000 | |||||||||
Republic Processing Group | Legal settlement | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | 13,000,000 | |||||||||
Republic Credit Solutions | Line of credit | ||||||||||
Basis of Presentation | ||||||||||
Number of service products | item | 2 | |||||||||
Republic Credit Solutions | LOC 1 | ||||||||||
Basis of Presentation | ||||||||||
Percentage of loan receivable held for sale (as a percent) | 90% | |||||||||
Percentage of ownership maintained with each borrower (as percentage) | 100% | |||||||||
Interest retained (as a percent) | 10% | |||||||||
Loan held-for-sale term | 3 days | |||||||||
Republic Credit Solutions | LOC II | ||||||||||
Basis of Presentation | ||||||||||
Percentage of loan receivable held for sale (as a percent) | 95% | |||||||||
Percentage of ownership maintained with each borrower (as percentage) | 100% | |||||||||
Interest retained (as a percent) | 5% | |||||||||
Loan held-for-sale term | 3 days | |||||||||
Republic Credit Solutions | Installment loan | ||||||||||
Basis of Presentation | ||||||||||
Term for intent to sell loans | 16 days | |||||||||
Republic Credit Solutions | Installment loan | Minimum | ||||||||||
Basis of Presentation | ||||||||||
Loan held-for-sale term | 12 months | |||||||||
Republic Credit Solutions | Installment loan | Maximum | ||||||||||
Basis of Presentation | ||||||||||
Loan held-for-sale term | 60 months | |||||||||
Republic Credit Solutions | Healthcare receivables | ||||||||||
Basis of Presentation | ||||||||||
Number of third party relationship | item | 3 | |||||||||
Interest retained - Third party relationship one (as a percent) | 100% | |||||||||
Interest retained - Third party relationship two (as a percent) | 100% | |||||||||
Percentage of loan receivable held for sale - Third party relationship two (as a percent) | 100% | |||||||||
Tax Refund Solutions | Easy Advances Member | ||||||||||
Basis of Presentation | ||||||||||
Advance amount per customer | $ 1,000 | $ 1,000 | ||||||||
EA's repayment term | 32 days | |||||||||
Maximum repayment period before Easy Advances considered delinquent | 35 days | |||||||||
Tax Refund Solutions | Refund Advances | ||||||||||
Basis of Presentation | ||||||||||
Advance amount per customer | $ 6,250 | $ 6,250 | ||||||||
Period Refund Advance tax credit product offered | 2 months | 2 months | 2 months | |||||||
Amount of credit risk associated with refund transfers | $ 0 | |||||||||
Tax Refund Solutions | Contract termination fee | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | 5,000,000 | |||||||||
Tax Refund Solutions | Legal settlement | ||||||||||
Basis of Presentation | ||||||||||
Revenue recognized | $ 13,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONCENTRATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Banking Activities | |||
Initial amortization period of MSRs | 7 years | ||
Loan servicing income | $ 3,370,000 | $ 3,518,000 | $ 3,288,000 |
Other Assets. | |||
Mortgage Banking Activities | |||
Accrued interest on AFS debt securities excluded from ACLS | 2,000,000 | 2,000,000 | |
Accrued interest on HTM debt securities excluded from ACLS | 384,000 | 92,000 | |
Accrued interest on loans | $ 16,000,000 | $ 11,000,000 | |
Installment loan | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Term for intent to sell loans | 16 days | ||
Line of Credit and Healthcare Receivables | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Percentage of loan receivable held for sale (as a percent) | 90% | ||
Minimum | Installment loan | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Loan held-for-sale term | 12 months | ||
Minimum | Line of Credit and Healthcare Receivables | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Percentage of loan receivable held for sale (as a percent) | 90% | ||
Maximum | Installment loan | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Loan held-for-sale term | 60 months | ||
Maximum | Line of Credit and Healthcare Receivables | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Percentage of loan receivable held for sale (as a percent) | 95% | ||
Warehouse lines of credit. | Geographic concentration risk | California | |||
Mortgage Banking Activities | |||
Percentage of concentration risk | 31% | ||
Net Revenue | Geographic concentration risk | Republic Processing Group | |||
Mortgage Banking Activities | |||
Percentage of concentration risk | 32% | 31% | 24% |
Net Revenue | Geographic concentration risk | Tax Refund Solutions | |||
Mortgage Banking Activities | |||
Percentage of concentration risk | 13% | 16% | 12% |
Net Revenue | Geographic concentration risk | Republic Payment Solutions | |||
Mortgage Banking Activities | |||
Percentage of concentration risk | 5% | 2% | 1% |
Net Revenue | Geographic concentration risk | Republic Credit Solutions | |||
Mortgage Banking Activities | |||
Percentage of concentration risk | 14% | 13% | 11% |
Net Revenue | Geographic concentration risk | Warehouse Lending | |||
Mortgage Banking Activities | |||
Percentage of concentration risk | 3% | 4% | 8% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - LOANS (Details) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Delinquency period for interest income on mortgage and commercial loans to be discontinued | 80 days |
Period for non-accrual loans and loans past due still on accrual evaluated for impairment | 80 days |
Minimum performance period for loans to be returned to accrual status | 6 months |
Period for past due loans for updating collateral values | 120 days |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CREDIT SOLUTIONS AND OREO (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Minimum | |
Other Real Estate Owned | |
Selling cost for OREO expressed as a percentage of each property's fair value | 10% |
Maximum | |
Other Real Estate Owned | |
Selling cost for OREO expressed as a percentage of each property's fair value | 13% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PREMISES AND EQUIPMENT (Details) | Dec. 31, 2023 |
Buildings and improvements | Minimum | |
Premises and equipment, net | |
Estimated useful lives | 25 years |
Buildings and improvements | Maximum | |
Premises and equipment, net | |
Estimated useful lives | 39 years |
Furniture, fixtures and equipment | Minimum | |
Premises and equipment, net | |
Estimated useful lives | 3 years |
Furniture, fixtures and equipment | Maximum | |
Premises and equipment, net | |
Estimated useful lives | 10 years |
Leasehold improvements | Minimum | |
Premises and equipment, net | |
Estimated useful lives | 3 years |
Leasehold improvements | Maximum | |
Premises and equipment, net | |
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INTANGIBLES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Goodwill | $ 40,516 | $ 16,300 | $ 16,300 | $ 16,300 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL DISCLOSURES (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Restrictions on Cash and Cash Equivalents | ||
Required reserve balances by the Federal Reserve Bank | $ 0 | $ 0 |
Cash reserve to cover insurable claims | $ 0 | $ 4 |
Equity | ||
Percentage of stock dividend in excess of which are reported by transferring the par value of the stock issued from retained earnings to common stock | 20% | |
Minimum percentage of stock dividend which are reported by transferring the par value of the stock issued from retained earnings to common stock and additional paid in capital | 20% | |
Segment Information | ||
Number of reportable segments | segment | 6 | |
Revenue, Practical Expedient | ||
Practical expedient allows incremental costs of obtaining contract when amortization period less than one year | true |
INVESTMENT SECURITIES - AFS (De
INVESTMENT SECURITIES - AFS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 618,525 | $ 663,003 |
Gross Unrealized Gains | 1,868 | 1,437 |
Gross Unrealized Losses | (29,080) | (44,075) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 591,313 | 620,365 |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 421,576 | 436,333 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (14,543) | (25,193) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 407,033 | 411,141 |
Private label mortgage backed security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 443 | 843 |
Gross Unrealized Gains | 1,330 | 1,284 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 1,773 | 2,127 |
Mortgage-backed securities - residential | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 167,996 | 189,312 |
Gross Unrealized Gains | 176 | 16 |
Gross Unrealized Losses | (13,462) | (17,455) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 154,710 | 171,873 |
Collateralized mortgage obligations | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 22,698 | 22,774 |
Gross Unrealized Gains | 36 | 21 |
Gross Unrealized Losses | (1,075) | (1,427) |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 21,659 | 21,368 |
Corporate bonds | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 2,012 | 10,000 |
Gross Unrealized Gains | 8 | 1 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | 2,020 | 10,001 |
Trust preferred security | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 3,800 | 3,741 |
Gross Unrealized Gains | 318 | 114 |
Allowance for Credit Losses | 0 | 0 |
Total available-for-sale debt securities | $ 4,118 | $ 3,855 |
INVESTMENT SECURITIES - HTM (De
INVESTMENT SECURITIES - HTM (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Held-to-Maturity Debt Securities | |||
Amortized Cost | $ 76,397 | $ 87,396 | |
Gross Unrecognized Gains | 54 | 160 | |
Gross Unrecognized Losses | (284) | (199) | |
Fair Value | 76,167 | 87,357 | |
Allowance for credit losses | (10) | (10) | |
U.S. Treasury securities and U.S. Government agencies | |||
Held-to-Maturity Debt Securities | |||
Amortized Cost | 65,000 | 75,000 | |
Gross Unrecognized Gains | 106 | ||
Gross Unrecognized Losses | (163) | ||
Fair Value | 64,837 | 75,106 | |
Mortgage-backed securities - residential | |||
Held-to-Maturity Debt Securities | |||
Amortized Cost | 25 | 27 | |
Gross Unrecognized Losses | (1) | ||
Fair Value | 25 | 26 | |
Collateralized mortgage obligations | |||
Held-to-Maturity Debt Securities | |||
Amortized Cost | 6,386 | 7,270 | |
Gross Unrecognized Gains | 48 | 54 | |
Gross Unrecognized Losses | (121) | (148) | |
Fair Value | 6,313 | 7,176 | |
Corporate bonds | |||
Held-to-Maturity Debt Securities | |||
Amortized Cost | 4,986 | 4,974 | |
Gross Unrecognized Gains | 6 | ||
Gross Unrecognized Losses | (49) | ||
Fair Value | 4,992 | 4,925 | |
Allowance for credit losses | $ (10) | (10) | $ (47) |
Obligations of state and political subdivisions | |||
Held-to-Maturity Debt Securities | |||
Amortized Cost | 125 | ||
Gross Unrecognized Losses | (1) | ||
Fair Value | $ 124 |
INVESTMENT SECURITIES - SALES A
INVESTMENT SECURITIES - SALES AND CALLS OF AFS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INVESTMENT SECURITIES | |||
Sales of available for sale securities | $ 0 | $ 0 | $ 0 |
Calls of available for sale securities | $ 65 | $ 0 | $ 90 |
INVESTMENT SECURITIES - AMORTIZ
INVESTMENT SECURITIES - AMORTIZED COST AND FV (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Securities available for Sale - Amortized Cost | ||
Due in one year or less | $ 189,872 | |
Due from one year to five years | 233,716 | |
Due beyond ten years | 3,800 | |
Amortized Cost | 618,525 | $ 663,003 |
Securities available for Sale - Fair Value | ||
Due in one year or less | 187,479 | |
Due from one year to five years | 221,574 | |
Due beyond ten years | 4,118 | |
Total securities | 591,313 | 620,365 |
Securities held to maturity - Amortized Cost | ||
Due in one year or less | 50,000 | |
Due from one year to five years | 19,986 | |
Total securities | 76,397 | 87,396 |
Securities held to maturity - Fair Value | ||
Due in one year or less | 49,876 | |
Due from one year to five years | 19,953 | |
Fair Value | 76,167 | 87,357 |
Private label mortgage backed security | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 443 | |
Amortized Cost | 443 | 843 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 1,773 | |
Total securities | 1,773 | 2,127 |
Mortgage-backed securities - residential | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 167,996 | |
Amortized Cost | 167,996 | 189,312 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 154,710 | |
Total securities | 154,710 | 171,873 |
Securities held to maturity - Amortized Cost | ||
Securities not due at a single maturity date | 25 | |
Total securities | 25 | 27 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 25 | |
Fair Value | 25 | 26 |
Collateralized mortgage obligations | ||
Securities available for Sale - Amortized Cost | ||
Securities not due at a single maturity date | 22,698 | |
Amortized Cost | 22,698 | 22,774 |
Securities available for Sale - Fair Value | ||
Securities not due at a single maturity date | 21,659 | |
Total securities | 21,659 | 21,368 |
Securities held to maturity - Amortized Cost | ||
Securities not due at a single maturity date | 6,386 | |
Total securities | 6,386 | 7,270 |
Securities held to maturity - Fair Value | ||
Securities not due at a single maturity date | 6,313 | |
Fair Value | $ 6,313 | $ 7,176 |
INVESTMENT SECURITIES - INVESTM
INVESTMENT SECURITIES - INVESTMENT CATEGORY (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 30,286 | $ 355,064 |
Less than 12 months Unrealized Losses | (159) | (15,999) |
12 months or more Fair Value | 533,745 | 237,202 |
12 months or more Unrealized Losses | (28,921) | (28,076) |
Total Fair Value | 564,031 | 592,266 |
Total Unrealized Losses | $ (29,080) | $ (44,075) |
Number of securities held | 191 | 179 |
Number of securities held in an unrealized loss position | 144 | 163 |
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies | 10% | |
U.S. Treasury securities and U.S. Government agencies | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | $ 26,707 | $ 229,372 |
Less than 12 months Unrealized Losses | (84) | (7,139) |
12 months or more Fair Value | 380,326 | 171,676 |
12 months or more Unrealized Losses | (14,459) | (18,054) |
Total Fair Value | 407,033 | 401,048 |
Total Unrealized Losses | (14,543) | (25,193) |
Mortgage backed securities - residential | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 1,911 | 105,274 |
Less than 12 months Unrealized Losses | (23) | (7,434) |
12 months or more Fair Value | 136,180 | 65,520 |
12 months or more Unrealized Losses | (13,439) | (10,021) |
Total Fair Value | 138,091 | 170,794 |
Total Unrealized Losses | (13,462) | (17,455) |
Collateralized mortgage obligations | ||
Available-for-sale debt securities | ||
Less than 12 months Fair Value | 1,668 | 20,418 |
Less than 12 months Unrealized Losses | (52) | (1,426) |
12 months or more Fair Value | 17,239 | 6 |
12 months or more Unrealized Losses | (1,023) | (1) |
Total Fair Value | 18,907 | 20,424 |
Total Unrealized Losses | $ (1,075) | $ (1,427) |
INVESTMENT SECURITIES - CORPORA
INVESTMENT SECURITIES - CORPORATE BONDS AND MORTGAGE BACKED SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Private label mortgage backed security | ||
Marketable Securities [Line Items] | ||
Securities | $ 1,773 | |
Mortgage backed securities and CMOs | ||
Marketable Securities [Line Items] | ||
Gross unrealized losses on available for sale securities | $ 14,500 | $ 18,900 |
INVESTMENT SECURITIES - TRUST P
INVESTMENT SECURITIES - TRUST PREFERRED SECURITY (Details) - Trust Preferred Securities $ in Millions | 12 Months Ended |
Dec. 31, 2015 USD ($) | |
Marketable Securities [Line Items] | |
Par value of trust preferred security | $ 5 |
3-month Term SOFR rate plus | |
Marketable Securities [Line Items] | |
Interest rate - basis spread | 1.59% |
INVESTMENT SECURITIES - PRIVATE
INVESTMENT SECURITIES - PRIVATE LABEL MORTGAGE-BACKED SECURITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | |||
Number of securities held | 191 | 179 | |
Private label mortgage backed security | |||
Marketable Securities [Line Items] | |||
Number of securities held | 1 | ||
Securities | $ 1,773,000 | ||
Additional impairment charge that may be recognized | 443,000 | ||
Balance, beginning of period | 1,462,000 | $ 1,462,000 | $ 1,462,000 |
Recovery of losses previously recorded | 0 | 0 | 0 |
Balance, end of period | $ 1,462,000 | $ 1,462,000 | $ 1,462,000 |
INVESTMENT SECURITIES - ACLS RO
INVESTMENT SECURITIES - ACLS ROLLFORWARD (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | ||
Beginning Balance - AFS | $ 0 | |
Beginning Balance - HTM | 10 | |
Balance - Total | 10 | $ 47 |
Provision - Total | 0 | (37) |
Charge-offs - Total | 0 | 0 |
Recoveries - Total | 0 | 0 |
Ending Balance - AFS | 0 | 0 |
Ending Balance - HTM | 10 | 10 |
Balance - Total | 10 | 10 |
Debt Securities, Held-to-maturity, Nonaccrual | 0 | 0 |
Debt Securities, Held To Maturity, Collateral Dependent | 0 | 0 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Beginning Balance - AFS | 0 | |
Beginning Balance - HTM | 10 | 47 |
Provision - HTM | (37) | |
Ending Balance - AFS | 0 | 0 |
Ending Balance - HTM | $ 10 | $ 10 |
INVESTMENT SECURITIES - PLEDGED
INVESTMENT SECURITIES - PLEDGED DEBT SECURITIES (Details) - Asset Pledged as Collateral - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 106,169 | $ 236,047 |
Carrying Value | ||
Marketable Securities [Line Items] | ||
Fair value | 99,530 | 217,562 |
Total Fair Value | ||
Marketable Securities [Line Items] | ||
Fair value | $ 99,530 | $ 217,562 |
INVESTMENT SECURITIES - EQUITY
INVESTMENT SECURITIES - EQUITY SECURITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Equity securities | ||
Gross Unrealized Gains | $ 174,000 | $ 111,000 |
Fair Value | 174,000 | 111,000 |
Gains (Losses) Recognized on Equity securities, Realized | (204,000) | |
Gains (Losses) Recognized on Equity securities, Unrealized | 63,000 | (59,000) |
Gains (Losses) Recognized on Equity securities, Total | 63,000 | (263,000) |
Proceeds from sale of equity security | 2,200,000 | |
Realized loss | 55,000 | |
Freddie Mac preferred stock | ||
Equity securities | ||
Gross Unrealized Gains | 174,000 | 111,000 |
Fair Value | 174,000 | 111,000 |
Gains (Losses) Recognized on Equity securities, Unrealized | 63,000 | (59,000) |
Gains (Losses) Recognized on Equity securities, Total | $ 63,000 | (59,000) |
Mutual fund | ||
Equity securities | ||
Gains (Losses) Recognized on Equity securities, Realized | (204,000) | |
Gains (Losses) Recognized on Equity securities, Total | $ (204,000) |
LOANS HELD FOR SALE - CONSUMER
LOANS HELD FOR SALE - CONSUMER LOANS - HELD FOR SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consumer Loans Held For Sale At Fair Value [RollForward] | |||
Balance, beginning of period | $ 4,706 | $ 19,747 | $ 3,298 |
Origination of consumer loans held for sale | 130,185 | 311,704 | 271,430 |
Proceeds from the sale of consumer loans held for sale | (130,772) | (333,438) | (260,730) |
Net gain on sale of consumer loans held for sale | 3,795 | 6,693 | 5,749 |
Balance, end of period | $ 7,914 | $ 4,706 | $ 19,747 |
LOANS HELD FOR SALE - CONSUME_2
LOANS HELD FOR SALE - CONSUMER LOANS - LOWER COST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Carried at lower of cost or fair value | |||
Balance, beginning of period | $ 13,169 | $ 2,937 | $ 1,478 |
Origination of consumer loans held for sale | 926,810 | 734,011 | 610,750 |
Proceeds from the sale of consumer loans held for sale | (932,843) | (730,363) | (614,840) |
Net gain on sale of consumer loans held for sale | 8,958 | 6,584 | 5,549 |
Balance, end of period | $ 16,094 | $ 13,169 | $ 2,937 |
Republic Credit Solutions | Line of Credit and Healthcare Receivables | |||
Loans held for sale | |||
Percentage of loan receivable held for sale (as a percent) | 90% | ||
Republic Credit Solutions | Line of Credit and Healthcare Receivables | Minimum | |||
Loans held for sale | |||
Percentage of loan receivable held for sale (as a percent) | 90% | ||
Republic Credit Solutions | Line of Credit and Healthcare Receivables | Maximum | |||
Loans held for sale | |||
Percentage of loan receivable held for sale (as a percent) | 95% | ||
Republic Credit Solutions | Installment loan | |||
Loans held for sale | |||
Term for intent to sell loans | 16 days | ||
Republic Credit Solutions | Installment loan | Minimum | |||
Loans held for sale | |||
Loan held-for-sale term | 12 months | ||
Republic Credit Solutions | Installment loan | Maximum | |||
Loans held for sale | |||
Loan held-for-sale term | 60 months |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COMPOSITION OF LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans disclosures | ||||
Lease financing receivables | $ 88,591 | $ 10,505 | ||
Total loans | 5,239,861 | 4,515,802 | ||
Allowance for credit losses | (82,130) | (70,413) | $ (64,577) | $ (61,067) |
Total loans, net | 5,157,731 | 4,445,389 | ||
Core Banking Activities | ||||
Loans disclosures | ||||
Total loans | 4,958,292 | 4,258,702 | ||
Allowance for credit losses | (59,845) | (51,718) | (51,533) | (52,106) |
Traditional Banking | ||||
Loans disclosures | ||||
Lease financing receivables | 88,591 | 10,505 | ||
Total loans | 4,618,569 | 3,855,142 | ||
Allowance for credit losses | (58,998) | (50,709) | $ (49,407) | $ (49,699) |
Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 281,569 | 257,100 | ||
Residential real estate | Residential Real Estate - Owner Occupied | ||||
Loans disclosures | ||||
Total loans | 1,144,684 | 911,427 | ||
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 1,144,684 | 911,427 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | ||||
Loans disclosures | ||||
Total loans | 345,965 | 321,358 | ||
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 345,965 | 321,358 | ||
Residential real estate | Home Equity | ||||
Loans disclosures | ||||
Total loans | 295,133 | 241,739 | ||
Residential real estate | Home Equity | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 295,133 | 241,739 | ||
Commercial real estate | ||||
Loans disclosures | ||||
Total loans | $ 1,785,289 | $ 1,599,510 | ||
Percentage of Nonowner-occupied CRE loans | 63% | 61% | 61% | |
Percentage of Owner-occupied CRE loans | 37% | 39% | 39% | |
Commercial real estate | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | $ 1,785,289 | $ 1,599,510 | ||
Construction & land development | ||||
Loans disclosures | ||||
Total loans | 217,338 | 153,875 | ||
Construction & land development | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 217,338 | 153,875 | ||
Commercial & industrial | Commercial and Industrial | ||||
Loans disclosures | ||||
Total loans | 464,078 | 413,387 | ||
Commercial & industrial | Commercial and Industrial | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 464,078 | 413,387 | ||
Aircraft | ||||
Loans disclosures | ||||
Total loans | 250,051 | 179,785 | ||
Aircraft | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 250,051 | 179,785 | ||
Consumer | ||||
Loans disclosures | ||||
Total loans | 27,440 | 23,556 | ||
Consumer | Credit Card | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 16,654 | 15,473 | ||
Consumer | Overdrafts | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 694 | 726 | ||
Consumer | Automobile loans | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 2,664 | 6,731 | ||
Consumer | Other Consumer | Traditional Banking | ||||
Loans disclosures | ||||
Total loans | 7,428 | 626 | ||
Warehouse lines of credit | ||||
Loans disclosures | ||||
Total loans | 339,723 | 403,560 | ||
Warehouse lines of credit | Warehouse Lending | ||||
Loans disclosures | ||||
Total loans | 339,723 | 403,560 | ||
Tax Refund Solution | ||||
Loans disclosures | ||||
Total loans | 149,207 | 149,272 | ||
Tax Refund Solution | Refund Advances | Tax Refund Solutions | ||||
Loans disclosures | ||||
Total loans | 103,115 | 97,505 | ||
Tax Refund Solution | Other TRS commercial and industrial loans | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | 46,092 | 51,767 | ||
Republic Credit Solution | ||||
Loans disclosures | ||||
Total loans | 132,362 | 107,828 | ||
Republic Credit Solution | Republic Processing Group | ||||
Loans disclosures | ||||
Total loans | $ 132,362 | $ 107,828 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RECONCILIATION OF LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | ||
Contractually receivable | $ 5,246,621 | $ 4,519,136 |
Unearned income | (2,556) | (835) |
Unamortized premiums | 1,060 | 99 |
Unaccreted discounts | (2,533) | (479) |
Other net unamortized deferred origination (fees) and costs | (2,731) | (2,119) |
Carrying value of loans | $ 5,239,861 | $ 4,515,802 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - RISK CATEGORY (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loans | |||
Revolving Loans Amortized Cost Basis | $ 1,013,893 | $ 992,992 | |
Revolving Loans Converted To Term Loans | 161,226 | 110,803 | |
Loans, Gross Charge-offs | |||
Revolving Loans Amortized Cost Basis | 40,886 | 24,323 | |
Lease | |||
Year One | 46,253 | 5,469 | |
Year Two | 24,088 | 1,964 | |
Year Three | 10,427 | 542 | |
Year Four | 4,754 | 1,548 | |
Prior | 3,069 | 982 | |
Total Loans | 88,591 | 10,505 | |
Lease, Gross Charge-offs | |||
Year One | 20 | ||
Year Two | 113 | ||
Prior | 8 | ||
Total | 141 | ||
Loans and Lease | |||
Year One | 1,203,867 | 1,083,468 | |
Year Two | 981,145 | 887,197 | |
Year Three | 758,188 | 510,259 | |
Year Four | 439,564 | 303,266 | |
Prior | 681,978 | 627,817 | |
Total loans | 5,239,861 | 4,515,802 | |
Loans and Lease, Gross Charge-offs | |||
Year One | 155 | 21 | |
Year Two | 134 | 14 | |
Year Three | 24 | ||
Year Four | 11 | ||
Prior | 15 | ||
Total, YTD Gross Charge-offs | $ 41,214 | 24,369 | $ 16,474 |
Maximum number of days past due for loans to be non rated | 80 days | ||
Loans held for investment fair value | $ 0 | 2 | |
Pass or not rated | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 1,007,850 | 990,235 | |
Revolving Loans Converted To Term Loans | 160,406 | 110,803 | |
Lease | |||
Year One | 45,824 | 5,469 | |
Year Two | 23,956 | 1,964 | |
Year Three | 10,265 | 542 | |
Year Four | 4,571 | 1,548 | |
Prior | 2,889 | 982 | |
Total Loans | 87,505 | 10,505 | |
Loans and Lease | |||
Year One | 1,178,977 | 1,078,578 | |
Year Two | 975,037 | 860,795 | |
Year Three | 752,275 | 508,758 | |
Year Four | 438,155 | 280,501 | |
Prior | 653,315 | 597,660 | |
Total loans | 5,166,015 | 4,427,330 | |
Special Mention | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 2,493 | 744 | |
Lease | |||
Year One | 429 | ||
Year Two | 30 | ||
Year Three | 162 | ||
Year Four | 183 | ||
Prior | 115 | ||
Total Loans | 919 | ||
Loans and Lease | |||
Year One | 24,841 | 3,660 | |
Year Two | 3,444 | 25,269 | |
Year Three | 4,009 | ||
Year Four | 183 | 21,296 | |
Prior | 16,924 | 18,995 | |
Total loans | 51,894 | 69,964 | |
Loans and Lease, Gross Charge-offs | |||
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000 | ||
Substandard | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 3,550 | 2,013 | |
Revolving Loans Converted To Term Loans | 820 | ||
Lease | |||
Year Two | 102 | ||
Prior | 65 | ||
Total Loans | 167 | ||
Loans and Lease | |||
Year One | 49 | 1,230 | |
Year Two | 2,664 | 1,133 | |
Year Three | 1,904 | 1,501 | |
Year Four | 1,226 | 1,469 | |
Prior | 11,739 | 11,162 | |
Total loans | 21,952 | 18,508 | |
Loans and Lease, Gross Charge-offs | |||
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000 | ||
Doubtful | |||
Loans and Lease, Gross Charge-offs | |||
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000 | ||
Traditional Banking | |||
Lease | |||
Total Loans | 88,591 | 10,505 | |
Lease, Gross Charge-offs | |||
Total | 141 | ||
Loans and Lease | |||
Total loans | 4,618,569 | 3,855,142 | |
Loans and Lease, Gross Charge-offs | |||
Total, YTD Gross Charge-offs | 1,351 | 1,320 | 1,460 |
Traditional Banking | Subprime | |||
Loans | |||
Loans | 58,000 | 49,000 | |
Loans and Lease, Gross Charge-offs | |||
Loans originated for Community Reinvestment Act ("CRA") purposes | $ 37,000 | 30,000 | |
Republic Credit Solutions | Line of credit and credit card | |||
Loans and Lease, Gross Charge-offs | |||
Number of consumer loans held for sale products | item | 2 | ||
Consumer loans held for sale period | 3 days | ||
Loans held for investment fair value | $ 36,000 | 29,000 | |
Residential real estate | Residential Real Estate - Owner Occupied | |||
Loans | |||
Year One | 346,236 | 232,868 | |
Year Two | 203,241 | 190,758 | |
Year Three | 176,915 | 189,505 | |
Year Four | 168,719 | 72,766 | |
Prior | 247,099 | 225,530 | |
Revolving Loans Converted To Term Loans | 2,474 | ||
Loans | 1,144,684 | 911,427 | |
Loans, Gross Charge-offs | |||
Year One | 21 | ||
Year Two | 10 | ||
Year Three | 16 | ||
Total | 26 | 21 | |
Residential real estate | Residential Real Estate - Owner Occupied | Pass or not rated | |||
Loans | |||
Year One | 346,195 | 231,638 | |
Year Two | 200,715 | 189,495 | |
Year Three | 175,030 | 188,004 | |
Year Four | 167,493 | 71,306 | |
Prior | 230,384 | 208,296 | |
Revolving Loans Converted To Term Loans | 2,474 | ||
Loans | 1,122,291 | 888,739 | |
Residential real estate | Residential Real Estate - Owner Occupied | Special Mention | |||
Loans | |||
Year One | 41 | ||
Year Two | 160 | ||
Prior | 6,309 | 7,240 | |
Loans | 6,350 | 7,400 | |
Residential real estate | Residential Real Estate - Owner Occupied | Substandard | |||
Loans | |||
Year One | 1,230 | ||
Year Two | 2,526 | 1,103 | |
Year Three | 1,885 | 1,501 | |
Year Four | 1,226 | 1,460 | |
Prior | 10,406 | 9,994 | |
Loans | 16,043 | 15,288 | |
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||
Loans | |||
Loans | 1,144,684 | 911,427 | |
Loans, Gross Charge-offs | |||
Total | 26 | 21 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | |||
Loans | |||
Year One | 63,575 | 78,337 | |
Year Two | 71,798 | 91,808 | |
Year Three | 82,830 | 55,058 | |
Year Four | 47,395 | 32,803 | |
Prior | 72,770 | 57,205 | |
Revolving Loans Converted To Term Loans | 7,597 | 6,147 | |
Loans | 345,965 | 321,358 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | Pass or not rated | |||
Loans | |||
Year One | 63,405 | 78,337 | |
Year Two | 69,827 | 91,778 | |
Year Three | 82,814 | 55,058 | |
Year Four | 47,395 | 32,803 | |
Prior | 72,696 | 57,053 | |
Revolving Loans Converted To Term Loans | 7,597 | 6,147 | |
Loans | 343,734 | 321,176 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | Special Mention | |||
Loans | |||
Year One | 170 | ||
Year Two | 1,971 | ||
Prior | 26 | 32 | |
Loans | 2,167 | 32 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | Substandard | |||
Loans | |||
Year Two | 30 | ||
Year Three | 16 | ||
Prior | 48 | 120 | |
Loans | 64 | 150 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||
Loans | |||
Loans | 345,965 | 321,358 | |
Residential real estate | Home equity | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 295,133 | 241,739 | |
Loans | 295,133 | 241,739 | |
Loans, Gross Charge-offs | |||
Revolving Loans Amortized Cost Basis | 2 | ||
Total | 2 | ||
Residential real estate | Home equity | Pass or not rated | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 292,890 | 240,704 | |
Loans | 292,890 | 240,704 | |
Residential real estate | Home equity | Special Mention | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 235 | 171 | |
Loans | 235 | 171 | |
Residential real estate | Home equity | Substandard | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 2,008 | 864 | |
Loans | 2,008 | 864 | |
Residential real estate | Home equity | Traditional Banking | |||
Loans | |||
Loans | 295,133 | 241,739 | |
Loans, Gross Charge-offs | |||
Total | 2 | 51 | |
Commercial real estate | |||
Loans | |||
Year One | 366,510 | 454,451 | |
Year Two | 440,663 | 406,187 | |
Year Three | 351,974 | 210,055 | |
Year Four | 174,093 | 139,224 | |
Prior | 274,172 | 263,985 | |
Revolving Loans Amortized Cost Basis | 34,207 | 25,817 | |
Revolving Loans Converted To Term Loans | 143,670 | 99,791 | |
Loans | 1,785,289 | 1,599,510 | |
Loans, Gross Charge-offs | |||
Year Two | 9 | ||
Total | 9 | ||
Commercial real estate | Pass or not rated | |||
Loans | |||
Year One | 342,658 | 451,327 | |
Year Two | 439,643 | 394,317 | |
Year Three | 351,600 | 210,055 | |
Year Four | 174,093 | 117,928 | |
Prior | 264,306 | 253,213 | |
Revolving Loans Amortized Cost Basis | 32,491 | 25,499 | |
Revolving Loans Converted To Term Loans | 143,670 | 99,791 | |
Loans | 1,748,461 | 1,552,130 | |
Commercial real estate | Special Mention | |||
Loans | |||
Year One | 23,852 | 3,124 | |
Year Two | 1,020 | 11,870 | |
Year Three | 374 | ||
Year Four | 21,296 | ||
Prior | 8,998 | 9,967 | |
Revolving Loans Amortized Cost Basis | 1,716 | 318 | |
Loans | 35,960 | 46,575 | |
Commercial real estate | Substandard | |||
Loans | |||
Prior | 868 | 805 | |
Loans | 868 | 805 | |
Commercial real estate | Traditional Banking | |||
Loans | |||
Loans | 1,785,289 | 1,599,510 | |
Loans, Gross Charge-offs | |||
Total | 9 | 428 | |
Construction & land development | |||
Loans | |||
Year One | 107,827 | 107,153 | |
Year Two | 89,106 | 43,289 | |
Year Three | 16,936 | 638 | |
Year Four | 297 | 641 | |
Prior | 250 | 373 | |
Revolving Loans Amortized Cost Basis | 225 | 1,781 | |
Revolving Loans Converted To Term Loans | 2,697 | ||
Loans | 217,338 | 153,875 | |
Construction & land development | Pass or not rated | |||
Loans | |||
Year One | 107,827 | 107,153 | |
Year Two | 89,106 | 43,289 | |
Year Three | 16,936 | 638 | |
Year Four | 297 | 641 | |
Prior | 250 | 373 | |
Revolving Loans Amortized Cost Basis | 225 | 1,781 | |
Revolving Loans Converted To Term Loans | 2,697 | ||
Loans | 217,338 | 153,875 | |
Construction & land development | Traditional Banking | |||
Loans | |||
Loans | 217,338 | 153,875 | |
Commercial | Commercial and Industrial | |||
Loans | |||
Year One | 141,151 | 117,019 | |
Year Two | 87,956 | 95,670 | |
Year Three | 73,625 | 17,944 | |
Year Four | 13,150 | 36,254 | |
Prior | 22,772 | 38,123 | |
Revolving Loans Amortized Cost Basis | 120,636 | 103,512 | |
Revolving Loans Converted To Term Loans | 4,788 | 4,865 | |
Loans | 464,078 | 413,387 | |
Commercial | Commercial and Industrial | Pass or not rated | |||
Loans | |||
Year One | 140,753 | 116,483 | |
Year Two | 87,497 | 82,431 | |
Year Three | 70,149 | 17,944 | |
Year Four | 13,150 | 36,254 | |
Prior | 20,957 | 36,367 | |
Revolving Loans Amortized Cost Basis | 120,069 | 103,257 | |
Revolving Loans Converted To Term Loans | 3,968 | 4,865 | |
Loans | 456,543 | 397,601 | |
Commercial | Commercial and Industrial | Special Mention | |||
Loans | |||
Year One | 349 | 536 | |
Year Two | 423 | 13,239 | |
Year Three | 3,473 | ||
Prior | 1,476 | 1,756 | |
Revolving Loans Amortized Cost Basis | 542 | 255 | |
Loans | 6,263 | 15,786 | |
Commercial | Commercial and Industrial | Substandard | |||
Loans | |||
Year One | 49 | ||
Year Two | 36 | ||
Year Three | 3 | ||
Prior | 339 | ||
Revolving Loans Amortized Cost Basis | 25 | ||
Revolving Loans Converted To Term Loans | 820 | ||
Loans | 1,272 | ||
Commercial | Commercial and Industrial | Traditional Banking | |||
Loans | |||
Loans | 464,078 | 413,387 | |
Loans, Gross Charge-offs | |||
Total | 86 | ||
Aircraft | |||
Loans | |||
Year One | 97,761 | 65,399 | |
Year Two | 55,896 | 54,749 | |
Year Three | 44,721 | 35,085 | |
Year Four | 30,628 | 16,888 | |
Prior | 21,045 | 7,664 | |
Loans | 250,051 | 179,785 | |
Aircraft | Pass or not rated | |||
Loans | |||
Year One | 97,761 | 65,399 | |
Year Two | 55,896 | 54,749 | |
Year Three | 44,721 | 35,085 | |
Year Four | 30,628 | 16,888 | |
Prior | 21,045 | 7,454 | |
Loans | 250,051 | 179,575 | |
Aircraft | Substandard | |||
Loans | |||
Prior | 210 | ||
Loans | 210 | ||
Aircraft | Traditional Banking | |||
Loans | |||
Loans | 250,051 | 179,785 | |
Consumer | |||
Loans | |||
Year One | 3,947 | 415 | |
Year Two | 1,194 | 499 | |
Year Three | 181 | 168 | |
Year Four | 74 | 2,540 | |
Prior | 3,433 | 4,361 | |
Revolving Loans Amortized Cost Basis | 18,611 | 15,573 | |
Loans | 27,440 | 23,556 | |
Loans, Gross Charge-offs | |||
Year One | 9 | ||
Year Two | 11 | 5 | |
Year Three | 8 | ||
Year Four | 11 | ||
Prior | 7 | ||
Revolving Loans Amortized Cost Basis | 1,147 | 1,274 | |
Total | 1,182 | 1,290 | |
Consumer | Pass or not rated | |||
Loans | |||
Year One | 3,947 | 415 | |
Year Two | 1,194 | 499 | |
Year Three | 181 | 168 | |
Year Four | 74 | 2,531 | |
Prior | 3,420 | 4,328 | |
Revolving Loans Amortized Cost Basis | 18,611 | 15,573 | |
Loans | 27,427 | 23,514 | |
Consumer | Substandard | |||
Loans | |||
Year Four | 9 | ||
Prior | 13 | 33 | |
Loans | 13 | 42 | |
Consumer | Credit cards | Traditional Banking | |||
Loans | |||
Loans | 16,654 | 15,473 | |
Loans, Gross Charge-offs | |||
Total | 162 | 155 | 163 |
Consumer | Overdrafts | Traditional Banking | |||
Loans | |||
Loans | 694 | 726 | |
Loans, Gross Charge-offs | |||
Total | 896 | 1,038 | 641 |
Consumer | Automobile loans | Traditional Banking | |||
Loans | |||
Loans | 2,664 | 6,731 | |
Loans, Gross Charge-offs | |||
Total | 37 | 3 | 19 |
Consumer | Other consumer | Traditional Banking | |||
Loans | |||
Loans | 7,428 | 626 | |
Loans, Gross Charge-offs | |||
Total | 87 | 94 | $ 72 |
Warehouse lines of credit | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 339,723 | 403,560 | |
Loans | 339,723 | 403,560 | |
Warehouse lines of credit | Pass or not rated | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 339,723 | 403,560 | |
Loans | 339,723 | 403,560 | |
Tax Refund Solution | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 149,207 | 149,272 | |
Loans | 149,207 | 149,272 | |
Loans, Gross Charge-offs | |||
Year One | 126 | ||
Revolving Loans Amortized Cost Basis | 25,825 | 11,659 | |
Total | 25,951 | 11,659 | |
Tax Refund Solution | Pass or not rated | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 149,207 | 149,272 | |
Loans | 149,207 | 149,272 | |
Republic Credit Solution | |||
Loans | |||
Year One | 30,607 | 22,357 | |
Year Two | 7,203 | 2,273 | |
Year Three | 579 | 1,264 | |
Year Four | 454 | 602 | |
Prior | 37,368 | 29,594 | |
Revolving Loans Amortized Cost Basis | 56,151 | 51,738 | |
Loans | 132,362 | 107,828 | |
Loans, Gross Charge-offs | |||
Revolving Loans Amortized Cost Basis | 13,912 | 11,390 | |
Total | 13,912 | 11,390 | |
Republic Credit Solution | Pass or not rated | |||
Loans | |||
Year One | 30,607 | 22,357 | |
Year Two | 7,203 | 2,273 | |
Year Three | 579 | 1,264 | |
Year Four | 454 | 602 | |
Prior | 37,368 | 29,594 | |
Revolving Loans Amortized Cost Basis | 54,634 | 50,589 | |
Loans | 130,845 | 106,679 | |
Republic Credit Solution | Substandard | |||
Loans | |||
Revolving Loans Amortized Cost Basis | 1,517 | 1,149 | |
Loans | $ 1,517 | $ 1,149 | |
Republic Credit Solution | Line of credit and credit card | Minimum | |||
Loans and Lease, Gross Charge-offs | |||
Percentage of loan receivable held for sale (as a percent) | 90% | ||
Interest retained (as a percent) | 5% | ||
Republic Credit Solution | Line of credit and credit card | Maximum | |||
Loans and Lease, Gross Charge-offs | |||
Percentage of loan receivable held for sale (as a percent) | 95% | ||
Interest retained (as a percent) | 10% |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - ALLOWANCE ACTIVITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 70,413 | $ 64,577 | $ 61,067 |
Provision | 47,624 | 22,385 | 14,939 |
Charge-offs | (141) | ||
Charge-offs | (41,214) | (24,369) | (16,474) |
Recoveries | 5,091 | 7,820 | (5,045) |
Ending Balance | 82,130 | 70,413 | 64,577 |
Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 216 | ||
Ending Balance | 216 | ||
Core Banking Activities | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 51,718 | 51,533 | 52,106 |
Provision | 8,536 | 349 | (188) |
Charge-offs | (1,351) | (1,320) | (1,460) |
Recoveries | 726 | 1,156 | (1,075) |
Ending Balance | 59,845 | 51,718 | 51,533 |
Core Banking Activities | Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 216 | ||
Ending Balance | 216 | ||
Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 110 | 91 | 106 |
Beginning Balance | 50,709 | 49,407 | 49,699 |
Provision | 866 | 19 | (15) |
Provision | 8,698 | 1,466 | 93 |
Charge-offs | (141) | ||
Charge-offs | (1,351) | (1,320) | (1,460) |
Recoveries | 10 | ||
Recoveries | 726 | 1,156 | (1,075) |
Ending balance | 1,061 | 110 | 91 |
Ending Balance | 58,998 | 50,709 | 49,407 |
Traditional Banking | Adjustment | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 216 | ||
Beginning Balance | 216 | ||
Ending balance | 216 | ||
Ending Balance | 216 | ||
Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 18,695 | 13,044 | 8,961 |
Provision | 39,088 | 22,036 | 15,127 |
Charge-offs | (39,863) | (23,049) | (15,014) |
Recoveries | 4,365 | 6,664 | (3,970) |
Ending balance | 22,285 | 18,695 | 13,044 |
Warehouse line of credit | Warehouse Lending | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,407 | ||
Beginning Balance | 2,126 | ||
Provision | (281) | ||
Ending Balance | 2,126 | ||
Residential real estate | Residential Real Estate - Owner Occupied | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (26) | (21) | |
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 8,909 | 8,647 | 9,715 |
Provision | 1,303 | 181 | (1,461) |
Charge-offs | (26) | (21) | |
Recoveries | 151 | 102 | (393) |
Ending balance | 10,337 | 8,909 | 8,647 |
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 2,831 | 2,700 | 2,466 |
Provision | 213 | 129 | 231 |
Recoveries | 3 | 2 | (3) |
Ending balance | 3,047 | 2,831 | 2,700 |
Residential real estate | Home equity | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (2) | ||
Residential real estate | Home equity | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,628 | 4,111 | 4,990 |
Provision | 872 | 396 | (874) |
Charge-offs | (2) | (51) | |
Recoveries | 3 | 121 | (46) |
Ending balance | 5,501 | 4,628 | 4,111 |
Commercial real estate | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (9) | ||
Commercial real estate | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 23,739 | 23,769 | 23,606 |
Provision | 1,997 | (308) | 509 |
Charge-offs | (9) | (428) | |
Recoveries | 94 | 287 | (82) |
Ending balance | 25,830 | 23,739 | 23,769 |
Construction & land development | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,123 | 4,128 | 3,274 |
Provision | 1,937 | (5) | 854 |
Ending balance | 6,060 | 4,123 | 4,128 |
Commercial | Commercial and Industrial | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,976 | 3,487 | 2,797 |
Provision | 137 | 218 | 700 |
Charge-offs | (86) | ||
Recoveries | 123 | 271 | (76) |
Ending balance | 4,236 | 3,976 | 3,487 |
Aircraft | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 449 | 357 | 253 |
Provision | 176 | 92 | 104 |
Ending balance | 625 | 449 | 357 |
Consumer | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (1,182) | (1,290) | |
Consumer | Credit cards | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 996 | 934 | 929 |
Provision | 176 | 140 | 107 |
Charge-offs | (162) | (155) | (163) |
Recoveries | 64 | 77 | (61) |
Ending balance | 1,074 | 996 | 934 |
Consumer | Overdrafts | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 726 | 683 | 587 |
Provision | 667 | 866 | 425 |
Charge-offs | (896) | (1,038) | (641) |
Recoveries | 197 | 215 | (312) |
Ending balance | 694 | 726 | 683 |
Consumer | Automobile loans | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 87 | 186 | 399 |
Provision | (32) | (111) | (233) |
Charge-offs | (37) | (3) | (19) |
Recoveries | 14 | 15 | (39) |
Ending balance | 32 | 87 | 186 |
Consumer | Other consumer | Traditional Banking | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 135 | 314 | 577 |
Provision | 386 | (151) | (254) |
Charge-offs | (87) | (94) | (72) |
Recoveries | 67 | 66 | (63) |
Ending balance | 501 | 135 | 314 |
Warehouse lines of credit | Warehouse Lending | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 1,009 | 2,126 | |
Provision | (162) | (1,117) | |
Ending balance | 847 | 1,009 | 2,126 |
Tax Refund Solution | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (25,951) | (11,659) | |
Tax Refund Solution | Refund Advances | Tax Refund Solutions | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 3,797 | ||
Provision | 22,492 | 10,471 | 6,723 |
Charge-offs | (25,823) | (11,505) | (10,256) |
Recoveries | 3,463 | 4,831 | (3,533) |
Ending balance | 3,929 | 3,797 | |
Tax Refund Solution | Other TRS commercial and industrial loans | Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 91 | 96 | 158 |
Provision | 67 | (516) | (40) |
Charge-offs | (128) | (154) | (51) |
Recoveries | 31 | 665 | (29) |
Ending balance | 61 | 91 | 96 |
Republic Credit Solution | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Charge-offs | (13,912) | (11,390) | |
Republic Credit Solution | Republic Processing Group | |||
Financing Receivable And Net Investment In Lease, Excluding Interest Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 14,807 | 12,948 | 8,803 |
Provision | 16,529 | 12,081 | 8,444 |
Charge-offs | (13,912) | (11,390) | (4,707) |
Recoveries | 871 | 1,168 | (408) |
Ending balance | $ 18,295 | $ 14,807 | $ 12,948 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NON-PERFORMING LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 19,150 | $ 15,562 |
Loans past due 90 days or more and still on accrual | 1,468 | 756 |
Total nonperforming loans | 20,618 | 16,318 |
Other real estate owned | 1,370 | 1,581 |
Total nonperforming assets | $ 21,988 | $ 17,899 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.39% | 0.36% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.42% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.33% | 0.31% |
Core Banking Activities | ||
Non-performing loans and non-performing assets disclosures | ||
Loans on nonaccrual status | $ 19,150 | $ 15,562 |
Credit Quality Ratios - Total Company: | ||
Nonperforming loans to total loans (as percent) | 0.39% | 0.37% |
Nonperforming assets to total loans (including OREO) (as percent) | 0.41% | 0.40% |
Nonperforming assets to total assets (as percent) | 0.35% | 0.32% |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - NONACCRUAL (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | $ 2,475 | $ 3,324 |
Nonaccrual with no ACLL | 16,675 | 12,238 |
Nonaccrual | 19,150 | 15,562 |
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1,468 | 756 |
Interest Income Recognized on Nonaccrual Loans | $ 1,376 | 2,664 |
Number of consecutive months payments received before non-accrual loans returned to accrual status (in months) | item | 6 | |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Nonaccrual | $ 19,150 | 15,562 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 19,150 | 15,562 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 1,468 | 756 |
Residential real estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 376 | 2,252 |
Nonaccrual with no ACLL | 14,680 | 11,136 |
Nonaccrual | 15,056 | 13,388 |
Interest Income Recognized on Nonaccrual Loans | 954 | 1,000 |
Residential real estate | Residential Real Estate - Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 15,056 | 13,388 |
Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 20 | 56 |
Nonaccrual with no ACLL | 44 | 61 |
Nonaccrual | 64 | 117 |
Interest Income Recognized on Nonaccrual Loans | 15 | 1 |
Residential real estate | Residential Real Estate - Non Owner Occupied | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 64 | 117 |
Residential real estate | Home equity | ||
Aging or recorded investments in loans | ||
Nonaccrual with no ACLL | 1,948 | 815 |
Nonaccrual | 1,948 | 815 |
Interest Income Recognized on Nonaccrual Loans | 184 | 263 |
Residential real estate | Home equity | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 1,948 | 815 |
Commercial real estate | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 850 | 1,001 |
Nonaccrual | 850 | 1,001 |
Interest Income Recognized on Nonaccrual Loans | 191 | 1,384 |
Commercial real estate | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 850 | 1,001 |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 1,221 | |
Nonaccrual | 1,221 | |
Interest Income Recognized on Nonaccrual Loans | 26 | |
Commercial | Commercial and Industrial | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 1,221 | |
Consumer | ||
Aging or recorded investments in loans | ||
Nonaccrual with ACLL | 8 | 15 |
Nonaccrual with no ACLL | 3 | 226 |
Nonaccrual | 11 | 241 |
Interest Income Recognized on Nonaccrual Loans | 6 | 16 |
Consumer | Automobile loans | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 10 | 31 |
Consumer | Other consumer | Traditional Banking | ||
Aging or recorded investments in loans | ||
Nonaccrual | 1 | 210 |
Republic Credit Solution | Republic Processing Group | ||
Aging or recorded investments in loans | ||
Financing Receivable, 90 Days or More Past Due, Still Accruing | $ 1,468 | $ 756 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - DELINQUENT LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Aging or recorded investments in loans | ||
Lease financing receivables | $ 88,591 | $ 10,505 |
Total loans | 5,239,861 | 4,515,802 |
30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total loans | $ 13,571 | $ 9,966 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.25% | 0.22% |
60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total loans | $ 3,974 | $ 3,241 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.08% | 0.07% |
90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total loans | $ 4,547 | $ 2,053 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.09% | 0.05% |
Past Due | ||
Aging or recorded investments in loans | ||
Total loans | $ 22,092 | $ 15,260 |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.42% | 0.34% |
Current | ||
Aging or recorded investments in loans | ||
Total loans | $ 5,217,769 | $ 4,500,542 |
Residential real estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,144,684 | 911,427 |
Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 345,965 | 321,358 |
Residential real estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 295,133 | 241,739 |
Commercial real estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,785,289 | 1,599,510 |
Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 217,338 | 153,875 |
Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 464,078 | 413,387 |
Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 250,051 | 179,785 |
Consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 27,440 | 23,556 |
Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 339,723 | 403,560 |
Tax Refund Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 149,207 | 149,272 |
Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 132,362 | 107,828 |
Core Banking Activities | ||
Aging or recorded investments in loans | ||
Total loans | 4,958,292 | 4,258,702 |
Core Banking Activities | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total loans | 4,184 | 3,478 |
Core Banking Activities | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Total loans | 913 | 1,285 |
Core Banking Activities | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Total loans | 3,079 | 1,297 |
Core Banking Activities | Past Due | ||
Aging or recorded investments in loans | ||
Total loans | 8,176 | 6,060 |
Core Banking Activities | Current | ||
Aging or recorded investments in loans | ||
Total loans | 4,950,116 | 4,252,642 |
Traditional Banking | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 88,591 | 10,505 |
Total loans | 4,618,569 | 3,855,142 |
Traditional Banking | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4,184 | 3,478 |
Lease financing receivables | 18 | |
Traditional Banking | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 913 | 1,285 |
Traditional Banking | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,079 | 1,297 |
Traditional Banking | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8,176 | 6,060 |
Lease financing receivables | 18 | |
Traditional Banking | Current | ||
Aging or recorded investments in loans | ||
Lease financing receivables | 88,573 | 10,505 |
Total loans | 4,610,393 | 3,849,082 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,144,684 | 911,427 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,396 | 2,382 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 769 | 1,185 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,638 | 1,267 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 5,803 | 4,834 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,138,881 | 906,593 |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 345,965 | 321,358 |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 345,965 | 321,358 |
Traditional Banking | Residential real estate | Home equity | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 295,133 | 241,739 |
Traditional Banking | Residential real estate | Home equity | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 417 | 56 |
Traditional Banking | Residential real estate | Home equity | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 96 | 93 |
Traditional Banking | Residential real estate | Home equity | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 254 | 26 |
Traditional Banking | Residential real estate | Home equity | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 767 | 175 |
Traditional Banking | Residential real estate | Home equity | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 294,366 | 241,564 |
Traditional Banking | Commercial real estate | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,785,289 | 1,599,510 |
Traditional Banking | Commercial real estate | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 604 | |
Traditional Banking | Commercial real estate | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 604 | |
Traditional Banking | Commercial real estate | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,785,289 | 1,598,906 |
Traditional Banking | Construction & land development | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 217,338 | 153,875 |
Traditional Banking | Construction & land development | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 217,338 | 153,875 |
Traditional Banking | Commercial | Commercial and Industrial | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 464,078 | 413,387 |
Traditional Banking | Commercial | Commercial and Industrial | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 140 | 177 |
Traditional Banking | Commercial | Commercial and Industrial | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 36 | |
Traditional Banking | Commercial | Commercial and Industrial | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,184 | |
Traditional Banking | Commercial | Commercial and Industrial | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,360 | 177 |
Traditional Banking | Commercial | Commercial and Industrial | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 462,718 | 413,210 |
Traditional Banking | Aircraft | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 250,051 | 179,785 |
Traditional Banking | Aircraft | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 250,051 | 179,785 |
Traditional Banking | Consumer | Credit cards | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16,654 | 15,473 |
Traditional Banking | Consumer | Credit cards | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 31 | 50 |
Traditional Banking | Consumer | Credit cards | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 4 | 5 |
Traditional Banking | Consumer | Credit cards | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 35 | 55 |
Traditional Banking | Consumer | Credit cards | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 16,619 | 15,418 |
Traditional Banking | Consumer | Overdrafts | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 694 | 726 |
Traditional Banking | Consumer | Overdrafts | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 129 | 158 |
Traditional Banking | Consumer | Overdrafts | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 1 |
Traditional Banking | Consumer | Overdrafts | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1 | 1 |
Traditional Banking | Consumer | Overdrafts | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 131 | 160 |
Traditional Banking | Consumer | Overdrafts | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 563 | 566 |
Traditional Banking | Consumer | Automobile loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,664 | 6,731 |
Traditional Banking | Consumer | Automobile loans | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 8 | |
Traditional Banking | Consumer | Automobile loans | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2 | 3 |
Traditional Banking | Consumer | Automobile loans | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2 | 11 |
Traditional Banking | Consumer | Automobile loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 2,662 | 6,720 |
Traditional Banking | Consumer | Other consumer | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7,428 | 626 |
Traditional Banking | Consumer | Other consumer | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 53 | 43 |
Traditional Banking | Consumer | Other consumer | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7 | 1 |
Traditional Banking | Consumer | Other consumer | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 60 | 44 |
Traditional Banking | Consumer | Other consumer | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 7,368 | 582 |
Warehouse Lending | Warehouse line of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 339,723 | 403,560 |
Warehouse Lending | Warehouse line of credit | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 339,723 | 403,560 |
Warehouse Lending | Warehouse lines of credit | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 339,723 | 403,560 |
Republic Processing Group | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 281,569 | 257,100 |
Republic Processing Group | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,387 | 6,488 |
Republic Processing Group | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,061 | 1,956 |
Republic Processing Group | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,468 | 756 |
Republic Processing Group | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 13,916 | 9,200 |
Republic Processing Group | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 267,653 | 247,900 |
Republic Processing Group | Tax Refund Solution | Other TRS commercial and industrial loans | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 46,092 | 51,767 |
Republic Processing Group | Tax Refund Solution | Other TRS commercial and industrial loans | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 46,092 | 51,767 |
Republic Processing Group | Republic Credit Solution | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 132,362 | 107,828 |
Republic Processing Group | Republic Credit Solution | 30 - 59 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 9,387 | 6,488 |
Republic Processing Group | Republic Credit Solution | 60 - 89 Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 3,061 | 1,956 |
Republic Processing Group | Republic Credit Solution | 90 + Days Delinquent | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 1,468 | 756 |
Republic Processing Group | Republic Credit Solution | Past Due | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 13,916 | 9,200 |
Republic Processing Group | Republic Credit Solution | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 118,446 | 98,628 |
Tax Refund Solutions | Tax Refund Solution | Refund Advances | ||
Aging or recorded investments in loans | ||
Carrying value of loans | 103,115 | 97,505 |
Tax Refund Solutions | Tax Refund Solution | Refund Advances | Current | ||
Aging or recorded investments in loans | ||
Carrying value of loans | $ 103,115 | $ 97,505 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - COLLATERAL DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 88,591 | $ 10,505 | |
Total loans | $ 5,239,861 | 4,515,802 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of selling cost on collateral | 10% | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of selling cost on collateral | 13% | ||
Residential real estate | Residential Real Estate - Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,144,684 | 911,427 | |
Residential real estate | Residential Real Estate - Non Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 345,965 | 321,358 | |
Residential real estate | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 295,133 | 241,739 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,785,289 | 1,599,510 | |
Construction & land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 217,338 | 153,875 | |
Commercial | Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 464,078 | 413,387 | |
Aircraft | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 250,051 | 179,785 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 27,440 | 23,556 | |
Traditional Banking | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 88,591 | 10,505 | |
Total loans | 4,618,569 | 3,855,142 | |
Traditional Banking | Real Estate | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 22,817 | 20,215 | $ 23,605 |
Traditional Banking | Personal Property | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 108 | ||
Total loans | 121 | 236 | 466 |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,144,684 | 911,427 | |
Traditional Banking | Residential real estate | Residential Real Estate - Owner Occupied | Real Estate | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,602 | 18,057 | 14,798 |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 345,965 | 321,358 | |
Traditional Banking | Residential real estate | Residential Real Estate - Non Owner Occupied | Real Estate | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 64 | 150 | 95 |
Traditional Banking | Residential real estate | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 295,133 | 241,739 | |
Traditional Banking | Residential real estate | Home equity | Real Estate | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,008 | 967 | 1,976 |
Traditional Banking | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,785,289 | 1,599,510 | |
Traditional Banking | Commercial real estate | Real Estate | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 870 | 1,041 | 6,736 |
Traditional Banking | Construction & land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 217,338 | 153,875 | |
Traditional Banking | Commercial | Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 464,078 | 413,387 | |
Traditional Banking | Commercial | Commercial and Industrial | Real Estate | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,273 | ||
Traditional Banking | Commercial | Commercial and Industrial | Personal Property | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 192 | ||
Traditional Banking | Aircraft | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 250,051 | 179,785 | |
Traditional Banking | Aircraft | Personal Property | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 210 | ||
Traditional Banking | Consumer | Personal Property | Asset Pledged as Collateral | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 13 | $ 26 | $ 274 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - AMORTIZED COST OF LOANS AND LEASES (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Modifications [Line Items] | ||
Accruing number of contracts | loan | 199 | |
Accruing recorded investments | $ 48 | |
Nonaccruing number of contracts | loan | 24 | |
Nonaccruing recorded investments | $ 1,842 | |
Accruing percentage of total financing receivables | 0% | |
Nonaccruing percentage of total financing receivables | 0.04% | |
Number of Loans | loan | 2,475 | |
Recorded Investment | $ 12,026 | |
Current | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing recorded investments | $ 48 | |
Nonaccruing recorded investments | 1,506 | |
30-89 Days Past Due | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | 34 | |
90 + Days Delinquent | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 302 | |
Republic Processing Group | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing number of contracts | loan | 199 | |
Accruing recorded investments | $ 48 | |
Accruing percentage of total financing receivables | 0.02% | |
Republic Processing Group | Current | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing recorded investments | $ 48 | |
Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 150 | |
Recorded Investment | $ 10,772 | |
Residential real estate | Residential Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing number of contracts | loan | 15 | |
Nonaccruing recorded investments | $ 1,133 | |
Nonaccruing percentage of total financing receivables | 0.10% | |
Residential real estate | Residential Real Estate - Owner Occupied | Current | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 856 | |
Residential real estate | Residential Real Estate - Owner Occupied | 90 + Days Delinquent | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 277 | |
Residential real estate | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing number of contracts | loan | 9 | |
Nonaccruing recorded investments | $ 709 | |
Nonaccruing percentage of total financing receivables | 0.24% | |
Residential real estate | Home equity | Current | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 650 | |
Residential real estate | Home equity | 30-89 Days Past Due | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | 34 | |
Residential real estate | Home equity | 90 + Days Delinquent | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing recorded investments | $ 25 | |
Rate reduction | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 70 | |
Recorded Investment | $ 6,547 | |
Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccruing number of contracts | loan | 1 | |
Nonaccruing recorded investments | $ 158 | |
Number of Loans | loan | 1 | |
Recorded Investment | $ 158 | |
Term Extension | Residential real estate | Residential Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ 158 | |
Principal deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing number of contracts | loan | 199 | |
Accruing recorded investments | $ 48 | |
Nonaccruing number of contracts | loan | 23 | |
Nonaccruing recorded investments | $ 1,684 | |
Number of Loans | loan | 222 | |
Recorded Investment | $ 1,732 | |
Principal deferral | Republic Processing Group | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 199 | |
Recorded Investment | $ 48 | |
Principal deferral | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 7 | |
Recorded Investment | $ 699 | |
Principal deferral | Residential real estate | Residential Real Estate - Owner Occupied | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 14 | |
Recorded Investment | $ 975 | |
Principal deferral | Residential real estate | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 9 | |
Recorded Investment | $ 709 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - MODIFICATIONS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,475 | |
Recorded Investment | $ | $ 12,026 | |
Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 67 | |
Recorded Investment | $ | $ 3,436 | |
Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,408 | |
Recorded Investment | $ | $ 8,590 | |
Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 222 | |
Recorded Investment | $ | $ 1,732 | |
Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1,076 | |
Recorded Investment | $ | $ 2,241 | |
Performing Financing Receivable | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,466 | |
Recorded Investment | $ | $ 11,407 | |
Performing Financing Receivable | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1,073 | |
Recorded Investment | $ | $ 1,944 | |
Nonperforming Financing Receivable | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 9 | |
Recorded Investment | $ | $ 619 | |
Nonperforming Financing Receivable | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 297 | |
Commercial & industrial | Commercial and Industrial | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 1 | |
Commercial & industrial | Commercial and Industrial | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 1 | |
Residential real estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 150 | |
Recorded Investment | $ | $ 10,772 | |
Residential real estate | Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 66 | |
Recorded Investment | $ | $ 3,427 | |
Residential real estate | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 84 | |
Recorded Investment | $ | $ 7,345 | |
Residential real estate | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 70 | |
Recorded Investment | $ | $ 6,547 | |
Residential real estate | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 7 | |
Recorded Investment | $ | $ 699 | |
Residential real estate | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 73 | |
Recorded Investment | $ | $ 3,526 | |
Residential real estate | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 34 | |
Recorded Investment | $ | $ 2,096 | |
Residential real estate | Modified During The Period | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 192 | |
Residential real estate | Modified During The Period | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 33 | |
Recorded Investment | $ | $ 1,904 | |
Residential real estate | Performing Financing Receivable | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 141 | |
Recorded Investment | $ | $ 10,153 | |
Residential real estate | Performing Financing Receivable | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 67 | |
Recorded Investment | $ | $ 6,305 | |
Residential real estate | Performing Financing Receivable | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 7 | |
Recorded Investment | $ | $ 699 | |
Residential real estate | Performing Financing Receivable | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 67 | |
Recorded Investment | $ | $ 3,149 | |
Residential real estate | Performing Financing Receivable | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 31 | |
Recorded Investment | $ | $ 1,799 | |
Residential real estate | Performing Financing Receivable | Modified During The Period | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 192 | |
Residential real estate | Performing Financing Receivable | Modified During The Period | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 30 | |
Recorded Investment | $ | $ 1,607 | |
Residential real estate | Nonperforming Financing Receivable | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 9 | |
Recorded Investment | $ | $ 619 | |
Residential real estate | Nonperforming Financing Receivable | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 242 | |
Residential real estate | Nonperforming Financing Receivable | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 6 | |
Recorded Investment | $ | $ 377 | |
Residential real estate | Nonperforming Financing Receivable | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 297 | |
Residential real estate | Nonperforming Financing Receivable | Modified During The Period | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 297 | |
Commercial real estate | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 847 | |
Commercial real estate | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 847 | |
Commercial related and construction/land development | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | |
Recorded Investment | $ | $ 848 | |
Commercial related and construction/land development | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 847 | |
Commercial related and construction/land development | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 1 | |
Commercial related and construction/land development | Performing Financing Receivable | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2 | |
Recorded Investment | $ | $ 848 | |
Commercial related and construction/land development | Performing Financing Receivable | Rate reduction | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 847 | |
Commercial related and construction/land development | Performing Financing Receivable | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 1 | |
Consumer | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,323 | |
Recorded Investment | $ | $ 406 | |
Consumer | Loans on non-accrual status | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ | $ 9 | |
Consumer | Accrual Loans | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,322 | |
Recorded Investment | $ | $ 397 | |
Consumer | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,320 | |
Recorded Investment | $ | $ 393 | |
Consumer | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 13 | |
Consumer | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1,042 | |
Recorded Investment | $ | $ 145 | |
Consumer | Modified During The Period | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1,042 | |
Recorded Investment | $ | $ 145 | |
Consumer | Performing Financing Receivable | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,323 | |
Recorded Investment | $ | $ 406 | |
Consumer | Performing Financing Receivable | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 2,320 | |
Recorded Investment | $ | $ 393 | |
Consumer | Performing Financing Receivable | Legal Modification | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 3 | |
Recorded Investment | $ | $ 13 | |
Consumer | Performing Financing Receivable | Modified During The Period | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1,042 | |
Recorded Investment | $ | $ 145 | |
Consumer | Performing Financing Receivable | Modified During The Period | Principal deferral | ||
Troubled Debt Restructurings disclosures | ||
Number of Loans | loan | 1,042 | |
Recorded Investment | $ | $ 145 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - MODIFIED CLASS (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) loan | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | |
Number of Loans with payment default | loan | 9 |
Recorded Investment with payment default | $ | $ 752,000 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSED PROPERTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,370 | $ 1,581 |
Commercial real estate | ||
Troubled Debt Restructurings disclosures | ||
Carrying amount of foreclosed properties | $ 1,370 | $ 1,581 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - FORECLOSURE RECORDED INVESTMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Residential real estate | Foreclosure Proceedings In Process | ||
Recorded investment in residential and consumer loans based on payment activity | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 1,556 | $ 909 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - REFUND ADVANCES (Details) - Tax Refund Solutions - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Refund Advances | ||||||
Period Refund Advance tax credit product offered | 2 months | 2 months | 2 months | |||
Refund Advances originated | $ 840,162 | $ 408,712 | $ 250,045 | |||
Net charge to the Provision for RAs, including ERAs | $ 22,492 | $ 10,471 | $ 6,723 | |||
Provision as a percentage of RAs, including ERAs | 2.68% | 2.56% | 2.69% | |||
Refund Advances net charge-offs (recoveries) | $ 22,360 | $ 6,674 | $ 6,723 | |||
Refund Advances net charge-offs (recoveries) to total Refund Advances originated | 2.66% | 1.63% | 2.69% | |||
Early Season Refund Advances | ||||||
Early Season Refund Advances outstanding | $ 103,115 | $ 97,505 | ||||
Net charge to the Provision for outstanding Early Season Refund Advances | $ 3,931 | $ 3,797 | ||||
Provision to total Early Season Refund Advances outstanding | 3.81% | 3.89% |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PREMISES AND EQUIPMENT | |||
Total premises and equipment | $ 118,134 | $ 110,552 | |
Less: Accumulated depreciation and amortization | 84,723 | 78,574 | |
Premises and equipment, net | 33,411 | 31,978 | |
Depreciation expense | 7,063 | 7,598 | $ 8,986 |
Land | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 4,578 | 3,818 | |
Buildings and improvements | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 33,606 | 32,780 | |
Furniture, fixtures and equipment | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 55,023 | 51,652 | |
Leasehold improvements | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | 24,893 | 21,755 | |
Construction in progress | |||
PREMISES AND EQUIPMENT | |||
Total premises and equipment | $ 34 | $ 547 |
RIGHT-OF-USE ASSETS AND OPERA_3
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) item contract | Dec. 31, 2022 USD ($) lease | |
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
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 | 37 | |
Number of operating leases contracted with a related party of the Company | contract | 12 | |
Number of operating leases considered variable | item | 26 | |
Related party lease right-of-use asset upon commencement of lease | $ 6,000 | |
Right-of-use assets | $ 34,691 | $ 37,017 |
Third party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of third party lease extensions | 3 | 6 |
Right-of-use assets | $ 1,700 | |
New third party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of new operating leases executed | lease | 2 | |
Number of third party lease extensions | item | 5 | |
Right-of-use assets | $ 2,000 | |
Related party | ||
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES | ||
Number of related party leases renewed | lease | 1 |
RIGHT-OF-USE ASSETS AND OPERA_4
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating lease expense: | |||
Total operating lease expense | $ 7,951 | $ 7,565 | $ 7,217 |
Cash paid for amounts included in the measurement of operating lease liabilities | 6,901 | 6,847 | 7,286 |
Cash paid for variable rent payments not included in measurement of operating lease liabilities | $ 603 | $ 603 | |
Weighted average remaining term in years | 7 years 7 months 9 days | 8 years 5 months 8 days | |
Weighted average discount rate | 2.30% | 2.10% | |
Related party | |||
Operating lease expense: | |||
Variable lease expense | $ 4,688 | $ 4,831 | 4,921 |
Fixed lease expense | 233 | 207 | 137 |
Third party | |||
Operating lease expense: | |||
Variable lease expense | 1,464 | 1,001 | 787 |
Fixed lease expense | $ 1,566 | $ 1,526 | $ 1,372 |
RIGHT-OF-USE ASSETS AND OPERA_5
RIGHT-OF-USE ASSETS AND OPERATING LEASE LIABILITIES - OPERATING LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating lease liabilities | ||
2024 | $ 6,609 | |
2025 | 5,871 | |
2026 | 5,622 | |
2027 | 5,341 | |
2028 | 4,493 | |
Thereafter | 12,000 | |
Total undiscounted cash flows | 39,936 | |
Discount applied to cash flows | (4,397) | |
Total discounted cash flows reported as operating lease liabilities | 35,539 | $ 37,809 |
Related party | ||
Operating lease liabilities | ||
2024 | 3,726 | |
2025 | 3,569 | |
2026 | 3,640 | |
2027 | 3,680 | |
2028 | 3,541 | |
Thereafter | 8,210 | |
Total undiscounted cash flows | 26,366 | |
Discount applied to cash flows | (2,742) | |
Total discounted cash flows reported as operating lease liabilities | 23,624 | |
Third party | ||
Operating lease liabilities | ||
2024 | 2,883 | |
2025 | 2,302 | |
2026 | 1,982 | |
2027 | 1,661 | |
2028 | 952 | |
Thereafter | 3,790 | |
Total undiscounted cash flows | 13,570 | |
Discount applied to cash flows | (1,655) | |
Total discounted cash flows reported as operating lease liabilities | $ 11,915 |
GOODWILL AND CORE DEPOSIT INT_3
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - GOODWILL (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 15, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance for goodwill | ||||
Beginning of period | $ 16,300 | $ 16,300 | $ 16,300 | |
Acquired goodwill | 24,216 | 0 | 0 | |
Impairment | 0 | 0 | 0 | |
End of period | 40,516 | $ 16,300 | 16,300 | |
Amortization of core deposit intangible asset | $ 405 | $ 189 | ||
CBank | ||||
Balance for goodwill | ||||
End of period | $ 24,216 | |||
Amount of intangibles initially recorded | $ 3,000 |
INTEREST RATE SWAPS - NON-HEDGE
INTEREST RATE SWAPS - NON-HEDGE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Information about derivatives and swaps | ||
Interest-bearing | $ 3,376,165,000 | $ 2,629,077,000 |
Cash and cash equivalents | 316,567,000 | 313,689,000 |
Interest rate swap | Non-Hedge | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Total, Notional Amount | 432,524,000 | 263,336,000 |
Net loss position exceeding with the other party | 250,000 | |
Interest rate swap | Non-Hedge | Asset Pledged as Collateral | Interest rate swap | ||
Information about derivatives and swaps | ||
Interest-bearing | 1,900,000 | 3,600,000 |
Cash and cash equivalents | 1,000,000 | 901,000 |
Interest rate swap | Non-Hedge | Bank Clients | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 120,442,000 | 40,032,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 95,820,000 | 91,636,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 216,262,000 | 131,668,000 |
Interest rate swaps with Bank clients - Assets | 4,066,000 | 1,386,000 |
Interest rate swaps with Bank clients - Liabilities | (4,867,000) | (6,742,000) |
Interest rate swaps with Bank clients - Total, Fair Value | (801,000) | (5,356,000) |
Interest rate swap | Non-Hedge | Counterparty | ||
Information about derivatives and swaps | ||
Interest rate swaps with Bank clients - Assets, Notional Amount | 95,820,000 | 91,636,000 |
Interest rate swaps with Bank clients - Liabilities, Notional Amount | 120,442,000 | 40,032,000 |
Interest rate swaps with Bank clients - Total, Notional Amount | 216,262,000 | 131,668,000 |
Offsetting interest rate swaps with institutional swap dealer - Assets, Fair Value | 4,867,000 | 6,742,000 |
Offsetting interest rate swaps with institutional swap dealer - Liabilities, Fair Value | (4,066,000) | (1,386,000) |
Offsetting interest rate swaps with institutional swap dealer - Total, Fair Value | $ 801,000 | $ 5,356,000 |
DEPOSITS - Balances (Details)
DEPOSITS - Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposit Liabilities | ||
Total interest-bearing deposits | $ 3,376,165 | $ 2,629,077 |
Total non interest-bearing deposits | 1,676,998 | 1,908,768 |
Total deposits | 5,053,163 | 4,537,845 |
Core Banking Activities | ||
Deposit Liabilities | ||
Demand | 1,158,051 | 1,336,082 |
Money market accounts | 1,007,356 | 707,272 |
Savings | 263,238 | 323,015 |
Reciprocal money market | 188,078 | 28,635 |
Individual retirement accounts | 33,793 | 38,640 |
Time deposits, $250 and over | 101,787 | 54,855 |
Other certificates of deposit | 225,614 | 129,324 |
Reciprocal time deposits | 90,857 | 7,405 |
Wholesale brokered deposits | 88,767 | |
Total interest-bearing deposits | 3,157,541 | 2,625,228 |
Total non interest-bearing deposits | 1,239,466 | 1,464,493 |
Total deposits | 4,397,007 | 4,089,721 |
Republic Processing Group | ||
Deposit Liabilities | ||
Money market accounts | 18,664 | 3,849 |
Wholesale brokered deposits | 199,960 | |
Total interest-bearing deposits | 218,624 | 3,849 |
Non-interest Bearing Prepaid Card Deposits | 318,769 | 328,655 |
Other noninterest-bearing deposits | 118,763 | 115,620 |
Total non interest-bearing deposits | 437,532 | 444,275 |
Total deposits | $ 656,156 | $ 448,124 |
DEPOSITS - Maturities (Details)
DEPOSITS - Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Scheduled maturities of all time deposits, including brokered certificates of deposit | |
2024 | $ 601,695 |
2025 | 21,843 |
2026 | 93,070 |
2027 | 7,324 |
2028 | 16,846 |
Time Deposits, Total | $ 740,778 |
Weighted Average Rate | |
2024 | 4.56% |
2025 | 2.02% |
2026 | 5.07% |
2027 | 1.62% |
2028 | 4.01% |
Total | 4.51% |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Securities sold under agreements to repurchase | |||
Outstanding balance at end of period | $ 97,618 | $ 216,956 | |
Securities sold under agreements to repurchase | |||
Securities sold under agreements to repurchase | |||
Securities pledged more than repurchase agreements (as a percent) | 2% | ||
Outstanding balance at end of period | $ 97,618 | $ 216,956 | |
Weighted average interest rate at end of period (as a percent) | 0.50% | 0.41% | |
Total securities pledged | $ 99,530 | $ 254,296 | |
Average outstanding balance during the period | $ 134,632 | $ 265,188 | $ 231,430 |
Weighted average interest rate during the period (as a percent) | 0.43% | 0.15% | 0.03% |
Maximum outstanding at any month end during the period | $ 311,035 | $ 303,315 | $ 432,047 |
Securities sold under agreements to repurchase | U.S. Treasury securities and U.S. Government agencies | |||
Securities sold under agreements to repurchase | |||
Total securities pledged | $ 99,530 | $ 254,296 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES - FHLB ADVANCES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FHLB advances | ||
Total FHLB advances | $ 380,000 | $ 95,000 |
Additional collateralized advances available | 730,000 | 899,000 |
Overnight advances | ||
FHLB advances | ||
Total FHLB advances | 110,000 | 75,000 |
Fixed interest rate advances | ||
FHLB advances | ||
Total FHLB advances | 270,000 | 20,000 |
Various other unsecured lines of credit | ||
FHLB advances | ||
Unsecured lines of credit | $ 100,000 | $ 125,000 |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - MATURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FEDERAL HOME LOAN BANK ADVANCES | ||
2024 | $ 110,000 | |
2026 | 30,000 | |
2027 | 80,000 | |
2028 | 160,000 | |
Total | $ 380,000 | $ 95,000 |
Weighted Average Rate | ||
2024 | 5.38% | |
2026 | 4.82% | |
2027 | 4.01% | |
2028 | 4.39% | |
Total | 4.63% |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES - SHORT-TERM FHLB ADVANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
FHLB advances | |||
Federal Home Loan Bank advances | $ 380,000 | $ 95,000 | |
Interest rate (as percent) | 4.63% | ||
Federal Home Loan Bank advances. | |||
FHLB advances | |||
Federal Home Loan Bank advances | $ 110,000 | 75,000 | |
Average outstanding balance during the period | $ 197,185 | $ 4,630 | $ 28,767 |
Weighted average interest rate during the period (as percent) | 5.06% | 0.53% | 0.15% |
Maximum outstanding at any month end during the period | $ 485,000 | $ 75,000 | $ 25,000 |
Federal Home Loan Bank advances. | Weighted Average | |||
FHLB advances | |||
Interest rate (as percent) | 5.38% | 4.36% |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES - LOANS PLEDGED (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
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 | $ 1,345,752 | $ 1,106,287 |
Home equity | ||
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 | 266,389 | $ 219,644 |
Multi-Family Commercial 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 | $ 133,565 |
OFF BALANCE SHEET RISKS, COMM_3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and letters of credit | |||
Loan commitment, line credit | $ 2,239,579 | $ 2,105,396 | |
Increase in unused commitments | 90,000 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 1,250 | 1,052 | |
Provision | 90 | 198 | $ 63 |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 1,340 | 1,250 | 1,052 |
Unused warehouse lines of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 623,277 | 733,940 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 190 | 154 | |
Provision | (74) | 36 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 116 | 190 | 154 |
Unused home equity lines of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 446,006 | 410,057 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 332 | 247 | |
Provision | (277) | 85 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 55 | 332 | 247 |
Unused construction lines of credit | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 384 | 383 | |
Provision | 436 | 1 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 820 | 384 | 383 |
Unused loan commitments - other | |||
Commitments and letters of credit | |||
Loan commitment, line credit | 1,159,284 | 951,021 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | 344 | 268 | |
Provision | 5 | 76 | |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 349 | 344 | $ 268 |
Standby letters of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | $ 11,012 | 9,735 | |
FHLB letters of credit | |||
Commitments and letters of credit | |||
Loan commitment, line credit | $ 643 |
STOCKHOLDERS' EQUITY AND REGU_3
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS - EQUITY (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) item | |
Dividend Restrictions | |
Number of previous years retained profit considered for dividend payment | 2 years |
Amount of dividend that can be declared without prior approval | $ | $ 133 |
Class A Common Stock | |
Common Stock | |
Dividends common stock cash as percentage of cash dividend paid on Class B common stock | 110% |
Number of votes per share | 1 |
Class B Common Stock | |
Common Stock | |
Number of votes per share | 10 |
STOCKHOLDERS' EQUITY AND REGU_4
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS - REGULATORY (Details) $ in Thousands | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) |
REGULATORY CAPITAL MATTERS | ||
Number of classifications | item | 5 | |
Republic Bancorp, Inc. | ||
Actual Amount | ||
Total capital to risk weighted assets | $ 968,844 | $ 941,865 |
Common equity tier 1 capital to risk weighted assets | 893,658 | 877,735 |
Tier 1 (core) capital to risk weighted assets | 893,658 | 877,735 |
Tier 1 leverage capital to average assets | $ 893,658 | $ 877,735 |
Actual Ratio | ||
Total capital to risk weighted assets ratio | 0.1610 | 0.1792 |
Common equity tier 1 capital to risk weighted assets ratio | 0.1485 | 0.1670 |
Tier 1 (core) capital to risk weighted assets ratio | 0.1485 | 0.1670 |
Tier 1 leverage capital to average assets ratio | 0.1389 | 0.1481 |
Minimum Requirement for Capital Adequacy Purposes Amount | ||
Total capital to risk weighted assets | $ 481,522 | $ 420,514 |
Common equity Tier 1 capital to risk weighted assets | 270,856 | 236,539 |
Tier 1 (core) capital to risk weighted assets | 361,141 | 315,386 |
Tier 1 leverage capital to average assets | $ 257,442 | $ 237,106 |
Minimum Requirement for Capital Adequacy Purposes Ratio | ||
Total capital to risk weighted assets ratio | 0.0800 | 0.0800 |
Common equity tier 1 capital to risk weighted assets ratio | 0.0450 | 0.0450 |
Tier 1 (core) capital to risk weighted assets ratio | 0.0600 | 0.0600 |
Tier 1 leverage capital to average assets ratio | 0.0400 | 0.0400 |
Republic Bank & Trust Co. | ||
Actual Amount | ||
Total capital to risk weighted assets | $ 931,923 | $ 904,592 |
Common equity tier 1 capital to risk weighted assets | 856,744 | 840,462 |
Tier 1 (core) capital to risk weighted assets | 856,744 | 840,462 |
Tier 1 leverage capital to average assets | $ 856,744 | $ 840,462 |
Actual Ratio | ||
Total capital to risk weighted assets ratio | 0.1550 | 0.1723 |
Common equity tier 1 capital to risk weighted assets ratio | 0.1425 | 0.1601 |
Tier 1 (core) capital to risk weighted assets ratio | 0.1425 | 0.1601 |
Tier 1 leverage capital to average assets ratio | 0.1325 | 0.1409 |
Minimum Requirement for Capital Adequacy Purposes Amount | ||
Total capital to risk weighted assets | $ 481,147 | $ 420,040 |
Common equity Tier 1 capital to risk weighted assets | 270,645 | 236,273 |
Tier 1 (core) capital to risk weighted assets | 360,860 | 315,030 |
Tier 1 leverage capital to average assets | $ 258,697 | $ 238,578 |
Minimum Requirement for Capital Adequacy Purposes Ratio | ||
Total capital to risk weighted assets ratio | 0.0800 | 0.0800 |
Common equity tier 1 capital to risk weighted assets ratio | 0.0450 | 0.0450 |
Tier 1 (core) capital to risk weighted assets ratio | 0.0600 | 0.0600 |
Tier 1 leverage capital to average assets ratio | 0.0400 | 0.0400 |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Total capital to risk weighted assets | $ 601,433 | $ 525,050 |
Common equity Tier 1 capital to risk weighted assets | 390,932 | 341,283 |
Tier 1 (core) capital to risk weighted assets | 481,147 | 420,040 |
Tier 1 leverage capital to average assets | $ 323,371 | $ 298,222 |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Total capital to risk weighted assets ratio | 0.1000 | 0.1000 |
Common equity tier 1 capital to risk weighted assets ratio | 0.0650 | 0.0650 |
Tier 1 (core) capital to risk weighted assets ratio | 0.0800 | 0.0800 |
Tier 1 leverage capital to average assets ratio | 0.0500 | 0.0500 |
Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | ||
REGULATORY CAPITAL MATTERS | ||
Capital Conversion Buffer | 0.025 | |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Total capital to risk weighted assets ratio | 0.100 | |
Common equity tier 1 capital to risk weighted assets ratio | 0.065 | |
Tier 1 (core) capital to risk weighted assets ratio | 0.080 | |
Tier 1 leverage capital to average assets ratio | 0.050 |
FAIR VALUE - RECURRING BASIS (D
FAIR VALUE - RECURRING BASIS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets: | ||||
Total available-for-sale debt securities | $ 591,313 | $ 620,365 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | $ 29,393 | $ 46,867 |
Consumer loans held for sale | 7,914 | 4,706 | $ 19,747 | $ 3,298 |
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 174 | 111 | ||
U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 407,033 | 411,141 | ||
Private label mortgage backed security | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 1,773 | 2,127 | ||
Mortgage backed securities - residential | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 154,710 | 171,873 | ||
Collateralized mortgage obligations | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 21,659 | 21,368 | ||
Corporate bonds | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 2,020 | 10,001 | ||
Trust Preferred Securities | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 4,118 | 3,855 | ||
Freddie Mac preferred stock | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 174 | 111 | ||
Recurring basis | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 591,313 | 620,365 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | ||
Consumer loans held for sale | 7,914 | 4,706 | ||
Consumer loans held for investment | 2 | |||
Rate lock commitments | 243 | 2 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 174 | 111 | ||
Financial Liabilities: | ||||
Mandatory forward contracts | 61 | 67 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Transfers between Level 1, 2 or 3 | 0 | 0 | ||
Recurring basis | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 407,033 | 411,141 | ||
Recurring basis | Private label mortgage backed security | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 1,773 | 2,127 | ||
Recurring basis | Mortgage backed securities - residential | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 154,710 | 171,873 | ||
Recurring basis | Collateralized mortgage obligations | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 21,659 | 21,368 | ||
Recurring basis | Corporate bonds | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 2,020 | 10,001 | ||
Recurring basis | Trust Preferred Securities | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 4,118 | 3,855 | ||
Recurring basis | Freddie Mac preferred stock | ||||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 174 | 111 | ||
Recurring basis | Fair Value, Inputs, Level 1 | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 177,784 | 193,385 | ||
Recurring basis | Fair Value, Inputs, Level 1 | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 177,784 | 193,385 | ||
Recurring basis | Fair Value, Inputs, Level 2 | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 407,638 | 420,998 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | ||
Rate lock commitments | 243 | 2 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Equity securities with readily determinable fair value: | ||||
Equity securities with readily determinable fair value | 174 | 111 | ||
Financial Liabilities: | ||||
Mandatory forward contracts | 61 | 67 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 229,249 | 217,756 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 154,710 | 171,873 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 21,659 | 21,368 | ||
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 2,020 | 10,001 | ||
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 | 174 | 111 | ||
Recurring basis | Fair Value, Inputs, Level 3 | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 5,891 | 5,982 | ||
Consumer loans held for sale | 7,914 | 4,706 | ||
Consumer loans held for investment | 2 | |||
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ||||
Financial assets: | ||||
Total available-for-sale debt securities | 1,773 | 2,127 | ||
Recurring basis | Fair Value, Inputs, Level 3 | Trust Preferred Securities | ||||
Financial assets: | ||||
Total available-for-sale debt securities | $ 4,118 | $ 3,855 |
FAIR VALUE - RECONCILIATION USI
FAIR VALUE - RECONCILIATION USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Private label mortgage backed security | |||
Assets measured on recurring basis, unobservable input reconciliation | |||
Balance, beginning of period | $ 2,127 | $ 2,731 | $ 2,957 |
Net change in unrealized gain (loss) | 46 | (29) | 63 |
Principal paydowns | (400) | (575) | (289) |
Balance, end of period | 1,773 | 2,127 | 2,731 |
Trust Preferred Securities | |||
Assets measured on recurring basis, unobservable input reconciliation | |||
Balance, beginning of period | 3,855 | 3,847 | 3,800 |
Discount accretion | 59 | 57 | 53 |
Net change in unrealized gain (loss) | 204 | (49) | (6) |
Balance, end of period | $ 4,118 | $ 3,855 | $ 3,847 |
FAIR VALUE - RECURRING LEVEL 3
FAIR VALUE - RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Private label mortgage backed security | Recurring basis | ||
Fair value inputs quantitative information | ||
Mortgage backed security fair value | $ 1,773 | $ 2,127 |
Debt Securities - Valuation technique | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Private label mortgage backed security | Minimum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.039 | 0.045 |
Private label mortgage backed security | Minimum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.018 | 0.018 |
Private label mortgage backed security | Minimum | Recurring basis | Loss Severity | ||
Fair value inputs quantitative information | ||
Measurable input | 0.25 | 0.25 |
Private label mortgage backed security | Maximum | Recurring basis | Constant Prepayment Rate | ||
Fair value inputs quantitative information | ||
Measurable input | 0.045 | 0.047 |
Private label mortgage backed security | Maximum | Recurring basis | Probability of default | ||
Fair value inputs quantitative information | ||
Measurable input | 0.094 | 0.093 |
Private label mortgage backed security | Maximum | Recurring basis | Loss Severity | ||
Fair value inputs quantitative information | ||
Measurable input | 0.35 | 0.35 |
Consumer Loans Held For Sale | Nonrecurring basis | ||
Fair value inputs quantitative information | ||
Consumer Loans Held for Sale Fair Value | $ 7,914 | $ 4,706 |
Consumer Loans Held For Sale | Nonrecurring basis | Net Premium | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.0015 | 0.0015 |
Consumer Loans Held For Sale | Nonrecurring basis | Discount sales | ||
Fair value inputs quantitative information | ||
Loans Held-for-sale, Measurement Input | 0.1000 | 0.1000 |
FAIR VALUE - GAINS AND LOSSES (
FAIR VALUE - GAINS AND LOSSES (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Fair Value, Option | ||||
Aggregate fair value | $ 3,227 | $ 1,302 | $ 29,393 | $ 46,867 |
Contractual balance | $ 5,246,621 | $ 4,519,136 | ||
Mortgage loans held for sale | ||||
Fair Value, Option | ||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | ||
Aggregate fair value | $ 3,227 | $ 1,302 | ||
Contractual balance | 3,168 | 1,265 | ||
Unrealized (loss) gain | 59 | 37 | ||
Total included in earnings | 304 | (169) | (280) | |
Mortgage loans held for sale | Interest Income | ||||
Fair Value, Option | ||||
Total included in earnings | 282 | 519 | 1,081 | |
Mortgage loans held for sale | Change In Fair Value | ||||
Fair Value, Option | ||||
Total included in earnings | $ 22 | $ (688) | (1,361) | |
Consumer Loans Held For Sale | ||||
Fair Value, Option | ||||
Number of loans past due 90 days or more or on nonaccrual | loan | 0 | 0 | ||
Aggregate fair value | $ 7,914 | $ 4,706 | ||
Contractual balance | 7,964 | 4,734 | ||
Unrealized (loss) gain | (50) | (28) | ||
Total included in earnings | 4,220 | 9,828 | 7,808 | |
Consumer Loans Held For Sale | Interest Income | ||||
Fair Value, Option | ||||
Total included in earnings | 4,242 | 9,970 | 7,708 | |
Consumer Loans Held For Sale | Change In Fair Value | ||||
Fair Value, Option | ||||
Total included in earnings | $ (22) | $ (142) | $ 100 |
FAIR VALUE - ASSETS MEASURED ON
FAIR VALUE - ASSETS MEASURED ON NON-RECURRING BASIS (Details) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | $ 2,479 | $ 2,362 |
Other real estate owned | 1,370 | 1,581 |
Residential real estate | ||
Fair Value Disclosures | ||
Other real estate owned | 1,581 | |
Residential real estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,580 | 1,456 |
Residential real estate | Home equity | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 104 | |
Commercial real estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 795 | 906 |
Other real estate owned | 1,370 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 2,479 | 2,362 |
Other real estate owned | 1,370 | 1,581 |
Fair Value, Inputs, Level 3 | Residential real estate | ||
Fair Value Disclosures | ||
Other real estate owned | 1,581 | |
Fair Value, Inputs, Level 3 | Residential real estate | Residential Real Estate - Owner Occupied | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 1,580 | 1,456 |
Fair Value, Inputs, Level 3 | Residential real estate | Home equity | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 104 | |
Fair Value, Inputs, Level 3 | Commercial real estate | ||
Fair Value Disclosures | ||
Impaired loan on non-recurring basis | 795 | $ 906 |
Other real estate owned | $ 1,370 |
FAIR VALUE - NON-RECURRING LEVE
FAIR VALUE - NON-RECURRING LEVEL 3 MEASUREMENTS (Details) - Fair Value, Inputs, Level 3 - Nonrecurring basis - Sale comparison approach $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Collateral Dependent Loans | Residential real estate | Residential Real Estate - Owner Occupied | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,580 | $ 1,456 |
Collateral Dependent Loans | Residential real estate | Residential Real Estate - Owner Occupied | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0 | 0 |
Collateral Dependent Loans | Residential real estate | Residential Real Estate - Owner Occupied | Comparability Adjustment | Maximum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.27 | 0.41 |
Collateral Dependent Loans | Residential real estate | Residential Real Estate - Owner Occupied | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.04 | 0.11 |
Collateral Dependent Loans | Residential real estate | Home equity | ||
Fair value inputs quantitative information | ||
Fair Value | $ 104 | |
Collateral Dependent Loans | Residential real estate | Home equity | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 5 | |
Collateral Dependent Loans | Residential real estate | Home equity | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 5 | |
Collateral Dependent Loans | Commercial real estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 795 | $ 906 |
Collateral Dependent Loans | Commercial real estate | Comparability Adjustment | Minimum | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.11 | 0.16 |
Collateral Dependent Loans | Commercial real estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.11 | 0.16 |
Other Real Estate Owned | Commercial real estate | ||
Fair value inputs quantitative information | ||
Fair Value | $ 1,370 | $ 1,581 |
Other Real Estate Owned | Commercial real estate | Comparability Adjustment | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.39 | 0.39 |
Other Real Estate Owned | Commercial real estate | Comparability Adjustment | Weighted Average | ||
Fair value inputs quantitative information | ||
Adjustments determined by management for difference percentage | 0.39 | 0.39 |
FAIR VALUE - COLLATERAL-DEPENDE
FAIR VALUE - COLLATERAL-DEPENDENT LOANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Inputs, Level 3 | Nonrecurring basis | |||
Provision for impairment on loan, lease and other losses | |||
Provisions for collateral-dependent loans | $ (4) | $ 7 | $ 960 |
FAIR VALUE - OTHER REAL ESTATE
FAIR VALUE - OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures | |||
Total Carrying value of other real estate owned | $ 1,370 | $ 1,581 | |
Other real estate owned write-downs during the period | 211 | 211 | $ 211 |
Nonrecurring basis | Fair Value, Inputs, Level 3 | Other Real Estate Owned | |||
Fair Value Disclosures | |||
Other real estate owned carried at fair value | 1,370 | 1,581 | 1,792 |
Total Carrying value of other real estate owned | 1,370 | 1,581 | 1,792 |
Other real estate owned write-downs during the period | $ 211 | $ 211 | $ 211 |
FAIR VALUE - CARRYING AMOUNTS A
FAIR VALUE - CARRYING AMOUNTS AND FV OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Available-for-sale debt securities | $ 591,313 | $ 620,365 | ||
Held-to-maturity debt securities | 76,167 | 87,357 | ||
Equity securities with readily determinable fair value | 174 | 111 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | $ 29,393 | $ 46,867 |
Consumer loans held for sale, at fair value | 7,914 | 4,706 | 19,747 | 3,298 |
Consumer loans held for sale, at the lower of cost or fair value | 16,094 | 13,169 | $ 2,937 | $ 1,478 |
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 316,567 | 313,689 | ||
Available-for-sale debt securities | 591,313 | 620,365 | ||
Held-to-maturity debt securities | 76,387 | 87,386 | ||
Equity securities with readily determinable fair value | 174 | 111 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | ||
Consumer loans held for sale, at fair value | 7,914 | 4,706 | ||
Consumer loans held for sale, at the lower of cost or fair value | 16,094 | 13,169 | ||
Loans, net | 5,157,731 | 4,445,389 | ||
Federal Home Loan Bank stock | 23,770 | 9,146 | ||
Accrued interest receivable | 18,447 | 13,572 | ||
Mortgage servicing rights | 7,411 | 8,769 | ||
Rate lock commitments | 243 | 2 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 99,530 | 216,956 | ||
Federal Home Loan Bank advances | 380,000 | 95,000 | ||
Accrued interest payable | 4,073 | 239 | ||
Rate lock loan commitments | 243 | |||
Mandatory forward contracts | 61 | 67 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Carrying Value | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 1,676,998 | 1,908,768 | ||
Carrying Value | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,924,114 | 2,398,853 | ||
Carrying Value | Time deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 452,051 | 230,224 | ||
Total Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 316,567 | 313,689 | ||
Available-for-sale debt securities | 591,313 | 620,365 | ||
Held-to-maturity debt securities | 76,167 | 87,357 | ||
Equity securities with readily determinable fair value | 174 | 111 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | ||
Consumer loans held for sale, at fair value | 7,914 | 4,706 | ||
Consumer loans held for sale, at the lower of cost or fair value | 16,094 | 13,169 | ||
Loans, net | 4,874,974 | 4,276,423 | ||
Accrued interest receivable | 18,447 | 13,572 | ||
Mortgage servicing rights | 16,054 | 17,592 | ||
Rate lock commitments | 243 | 2 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 99,530 | 216,956 | ||
Federal Home Loan Bank advances | 382,062 | 93,044 | ||
Accrued interest payable | 4,073 | 239 | ||
Rate lock loan commitments | 243 | |||
Mandatory forward contracts | 61 | 67 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Total Fair Value | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 1,676,998 | 1,908,768 | ||
Total Fair Value | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,924,114 | 2,398,853 | ||
Total Fair Value | Time deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 446,218 | 223,912 | ||
Total Fair Value | Fair Value, Inputs, Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 316,567 | 313,689 | ||
Available-for-sale debt securities | 177,784 | 193,385 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Available-for-sale debt securities | 407,638 | 420,998 | ||
Held-to-maturity debt securities | 76,167 | 87,357 | ||
Equity securities with readily determinable fair value | 174 | 111 | ||
Mortgage loans held for sale, at fair value | 3,227 | 1,302 | ||
Accrued interest receivable | 4,097 | 2,462 | ||
Mortgage servicing rights | 16,054 | 17,592 | ||
Rate lock commitments | 243 | 2 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Liabilities: | ||||
Securities sold under agreements to repurchase and other short-term borrowings | 99,530 | 216,956 | ||
Federal Home Loan Bank advances | 382,062 | 93,044 | ||
Accrued interest payable | 4,073 | 239 | ||
Rate lock loan commitments | 243 | |||
Mandatory forward contracts | 61 | 67 | ||
Interest rate swap agreements | 8,933 | 8,127 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 1,676,998 | 1,908,768 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Transaction deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 2,924,114 | 2,398,853 | ||
Total Fair Value | Fair Value, Inputs, Level 2 | Time deposits | ||||
Liabilities: | ||||
Deposit liabilities, fair value | 446,218 | 223,912 | ||
Total Fair Value | Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Available-for-sale debt securities | 5,891 | 5,982 | ||
Consumer loans held for sale, at fair value | 7,914 | 4,706 | ||
Consumer loans held for sale, at the lower of cost or fair value | 16,094 | 13,169 | ||
Loans, net | 4,874,974 | 4,276,423 | ||
Accrued interest receivable | $ 14,350 | $ 11,110 |
MORTGAGE BANKING ACTIVITIES - M
MORTGAGE BANKING ACTIVITIES - MORTGAGE LOANS HELD FOR SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
MORTGAGE BANKING ACTIVITIES | |||
Balance, beginning of period | $ 1,302 | $ 29,393 | $ 46,867 |
Origination of mortgage loans held for sale | 77,800 | 205,365 | 680,714 |
Proceeds from the sale of mortgage loans held for sale | (77,928) | (238,398) | (717,847) |
Net gain on sale of mortgage loans held for sale | 2,053 | 4,942 | 19,659 |
Balance, end of period | $ 3,227 | $ 1,302 | $ 29,393 |
MORTGAGE BANKING ACTIVITIES - L
MORTGAGE BANKING ACTIVITIES - LOANS SERVICED BY BANK (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Mortgage Loans Held-for-sale [Line Items] | ||
Bank serviced loans | $ 1,316,919 | $ 1,387,314 |
FHLMC | ||
Mortgage Loans Held-for-sale [Line Items] | ||
Bank serviced loans | 899,444 | 966,677 |
Custodial escrow account balances maintained in connection with serviced loans | 8,000 | 11,000 |
FNMA | ||
Mortgage Loans Held-for-sale [Line Items] | ||
Bank serviced loans | $ 417,475 | $ 420,637 |
MORTGAGE BANKING ACTIVITIES - C
MORTGAGE BANKING ACTIVITIES - COMPONENTS OF INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage servicing rights | |||
Net gain realized on sale of mortgage loans held for sale | $ 1,784 | $ 7,164 | $ 23,114 |
Net gain recognized | 2,053 | 4,942 | 19,659 |
Loan servicing income | 3,370 | 3,518 | 3,288 |
Amortization of mortgage servicing rights | (1,881) | (2,264) | (3,453) |
Change in mortgage servicing rights valuation allowance | 500 | ||
Net servicing income recognized | 1,489 | 1,254 | 335 |
Total Mortgage Banking income | 3,542 | 6,196 | 19,994 |
Mortgage Loans Held for Sale | |||
Mortgage servicing rights | |||
Net change in fair value | 22 | (688) | (1,361) |
Rate lock loan commitments | |||
Mortgage servicing rights | |||
Net change in fair value | 242 | (1,402) | (3,136) |
Mandatory forward contracts | |||
Mortgage servicing rights | |||
Net change in fair value | $ 5 | $ (132) | $ 1,042 |
MORTGAGE BANKING ACTIVITIES -_2
MORTGAGE BANKING ACTIVITIES - CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
MORTGAGE BANKING ACTIVITIES | |||
Balance, beginning of period | $ 8,770 | $ 9,196 | $ 7,095 |
Additions | 522 | 1,838 | 5,054 |
Amortized to expense | (1,881) | (2,264) | (3,453) |
Change in valuation allowance | 500 | ||
Balance, end of period | $ 7,411 | $ 8,770 | $ 9,196 |
MORTGAGE BANKING ACTIVITIES - V
MORTGAGE BANKING ACTIVITIES - VALUATION OF CAPITALIZED MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |
Beginning valuation allowance | $ 500 |
Charge during the period | (500) |
Ending valuation allowance | $ 0 |
MORTGAGE BANKING ACTIVITIES - O
MORTGAGE BANKING ACTIVITIES - OTHER INFORMATION RELATING TO MSRS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
MORTGAGE BANKING ACTIVITIES | ||
Fair value of mortgage servicing rights portfolio | $ 16,054 | $ 17,145 |
Monthly weighted average prepayment rate of unpaid principal balance (as percent) | 128% | 127% |
Discount rate (as percent) | 10.26% | 10.21% |
Weighted average foreclosure rate | 0.16% | 0.10% |
Weighted average life in years | 7 years 6 months 7 days | 7 years 6 months 14 days |
MORTGAGE BANKING ACTIVITIES - A
MORTGAGE BANKING ACTIVITIES - AMORTIZATION EXPENSE OF MSR PORTFOLIO (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Estimated future amortization expense of the MSR portfolio (net of the impairment charge) | |
2024 | $ 1,007 |
2025 | 999 |
2026 | 996 |
2027 | 939 |
2028 | 843 |
2029 | 717 |
Thereafter | 1,910 |
Total | $ 7,411 |
MORTGAGE BANKING ACTIVITIES - N
MORTGAGE BANKING ACTIVITIES - NOTIONAL AMOUNTS AND FV (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Mortgage servicing rights | ||
Derivative instruments expiration period | 90 days | |
Mortgage loans held for sale | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | $ 3,168 | $ 1,265 |
Fair Value, Assets | 3,227 | 1,302 |
Rate lock loan commitments | ||
Information about derivatives and swaps | ||
Derivative Assets, Notional Amount | 9,275 | 4,118 |
Fair Value, Assets | 243 | 2 |
Mandatory forward contracts | ||
Information about derivatives and swaps | ||
Derivative Liabilities, Notional Amount | 9,092 | 4,009 |
Fair Value, Liabilities | $ 61 | $ 67 |
STOCK PLANS AND STOCK BASED C_3
STOCK PLANS AND STOCK BASED COMPENSATION - NARRATIVE (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Number of shares available for grant permitted by plan | 3,000,000 |
Minimum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Vesting period | 3 years |
Employee Stock Option [Member] | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Outstanding or available for exercise | 173,502 |
Employee Stock Option [Member] | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Exercisable period | 1 year |
Employee Stock Option [Member] | 2015 Plan | Class B Common Stock | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Outstanding or available for exercise | 0 |
Employee Stock Option [Member] | Minimum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Exercisable period | 3 years |
Employee Stock Option [Member] | Maximum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Exercisable period | 6 years |
Restricted Stock Awards | Minimum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Vesting period | 3 years |
Restricted Stock Awards | Maximum | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Vesting period | 6 years |
Performance Stock Units | 2015 Plan | |
STOCK PLANS AND STOCK BASED COMPENSATION | |
Vesting period | 3 years |
Exercisable period | 1 year |
STOCK PLANS AND STOCK BASED C_4
STOCK PLANS AND STOCK BASED COMPENSATION - ACTIVITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Information related to the stock option plan | |||
Total cash received from options exercised, net of shares redeemed | $ (2,000) | $ 52,000 | $ (142,000) |
Information related to stock option and restricted stock awards granted | |||
Expenses | 1,322,000 | $ 1,649,000 | $ 1,441,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | |||
2024 | 1,541,000 | ||
2025 | 1,107,000 | ||
2026 | 557,000 | ||
2027 | 13,000 | ||
Total | $ 3,218,000 | ||
Employee Stock Option [Member] | |||
Weighted average assumptions used to determined fair value of stock options granted | |||
Risk-free interest rate (as a percent) | 3.86% | 1.35% | 0.20% |
Expected dividend yield (as a percent) | 3.19% | 2.50% | 3.18% |
Expected stock price volatility (as a percent) | 33.14% | 32.12% | 31.71% |
Expected life of options (in years) | 4 years | 4 years | 4 years |
Estimated fair value per share of options granted (in dollars per share) | $ 9.65 | $ 10.41 | $ 6.26 |
Options | |||
Outstanding, beginning of year (in shares) | 465,033 | 460,502 | |
Granted (in shares) | 69,617 | 54,281 | |
Exercised (in shares) | (10,000) | (5,250) | |
Forfeited or expired (in shares) | (64,000) | (44,500) | |
Outstanding, end of year (in shares) | 460,650 | 465,033 | 460,502 |
Unvested (in shares) | 287,148 | ||
Exercisable (vested) at end of year (in shares) | 173,502 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of year (in dollars per share) | $ 38.81 | $ 37.54 | |
Granted (in dollars per share) | 42.74 | 50.34 | |
Exercised (in dollars per share) | 46.08 | 34.17 | |
Forfeited or expired (in dollars per share) | 45.09 | 40.32 | |
Outstanding, end of year (in dollars per share) | 38.37 | $ 38.81 | $ 37.54 |
Unvested (in dollars per share) | 38.76 | ||
Exercisable (vested) at end of year (in dollars per share) | $ 37.72 | ||
Weighted Average Remaining Contractual Term (years) | |||
Outstanding, end of year | 1 year 10 months 13 days | 2 years 3 months | |
Unvested | 2 years 5 months 1 day | ||
Exercisable (vested) at end of year | 11 months 15 days | ||
Aggregate Intrinsic Value | |||
Outstanding, end of year | $ 7,734,879 | $ 2,322,635 | |
Unvested | 4,708,333 | ||
Exercisable (vested) at end of year | 3,026,546 | ||
Information related to the stock option plan | |||
Total intrinsic value of options exercised | 58,000 | 57,000 | $ 1,335,000 |
Total cash received from options exercised, net of shares redeemed | (2,000) | 52,000 | (142,000) |
Total tax benefit of options exercised | 1,000 | 6,000 | 223,000 |
Information related to stock option and restricted stock awards granted | |||
Expenses | 774,000 | 560,000 | $ 574,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | |||
2024 | 489,000 | ||
2025 | 263,000 | ||
2026 | 18,000 | ||
2027 | 5,000 | ||
Total | 775,000 | ||
Employee Stock Option [Member] | Non-executive officer employees | Related Party [Member] | |||
Information related to the stock option plan | |||
Outstanding loans | $ 129,000 | $ 178,000 | |
Restricted Stock Awards | |||
Shares | |||
Outstanding, beginning of year (in shares) | 64,733 | 56,059 | |
Granted (in shares) | 55,157 | 12,174 | |
Forfeited (in shares) | (1,470) | ||
Earned and issued (in shares) | (31,354) | (3,500) | |
Outstanding, end of year (in shares) | 87,066 | 64,733 | 56,059 |
Unvested and Expected to vest (in shares) | 87,066 | ||
Weighted-average grant date fair value | |||
Outstanding, beginning of year (in dollars per share) | $ 40.49 | $ 39.12 | |
Granted (in dollars per share) | 43.60 | 46.05 | |
Forfeited (in dollars per share) | 49.08 | ||
Earned and issued (in dollars per share) | 37.56 | 37.74 | |
Outstanding, end of year (in dollars per share) | 43.37 | $ 40.49 | $ 39.12 |
Unvested and Expected to vest (in dollars per share) | $ 43.37 | ||
Other than option, Weighted-Average Remaining Contractual Term (years) | |||
Outstanding, end of year | 1 year 11 months 23 days | 2 years 3 months | |
Information related to stock option and restricted stock awards granted | |||
Total fair value of shares vested | $ 1,500,000 | $ 186,000 | $ 50,000 |
Expenses | 829,000 | $ 937,000 | 738,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | |||
2024 | 1,052,000 | ||
2025 | 844,000 | ||
2026 | 539,000 | ||
2027 | 8,000 | ||
Total | $ 2,443,000 | ||
Restricted Stock Awards | Minimum | |||
Shares | |||
Unrecognized compensation expense recognition period | 3 years | ||
Restricted Stock Awards | Maximum | |||
Shares | |||
Unrecognized compensation expense recognition period | 6 years | ||
Performance Stock Units | |||
Shares | |||
Granted (in shares) | 10,999 | 8,874 | |
Forfeited (in shares) | (10,999) | (8,874) | |
Weighted-average grant date fair value | |||
Granted (in dollars per share) | $ 42.74 | $ 51.39 | |
Forfeited (in dollars per share) | $ 42.74 | $ 51.39 | |
Information related to stock option and restricted stock awards granted | |||
Expenses | $ (281,000) | $ 152,000 | $ 129,000 |
STOCK PLANS AND STOCK BASED C_5
STOCK PLANS AND STOCK BASED COMPENSATION - DEFERRED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Director | |||
Shares Deferred | |||
Outstanding, beginning of period (in shares) | 99,227 | 86,800 | |
Deferred base salaries and dividend equivalents converted to stock units | 17,811 | 18,241 | |
Stock units converted to Class A Common Shares | (3,635) | (5,814) | |
Outstanding, end of period (in shares) | 113,403 | 99,227 | 86,800 |
Vested (in shares) | 113,403 | ||
Weighted Average Market Price at Date of Deferral | |||
Outstanding, beginning of period (in dollars per share) | $ 31.43 | $ 29.98 | |
Deferred base salaries and dividend equivalents converted to stock units (in dollars per share) | 43.14 | 46.58 | |
Stock units converted to Class A Common Shares (in dollars per share) | 33.29 | 49.51 | |
Outstanding, end of period (in dollars per share) | 35.65 | $ 31.43 | $ 29.98 |
Vested (in dollars per share) | $ 35.65 | ||
Weighted-Average Remaining Contractual Term (years) | |||
Deferred compensation expense | $ 777 | $ 503 | $ 417 |
Director | Minimum | |||
Deferred Compensation | |||
Specified period during which board and committee fees may be deferred by participants | 2 years | ||
Director | Maximum | |||
Deferred Compensation | |||
Specified period during which board and committee fees may be deferred by participants | 5 years | ||
Key Employees | |||
Deferred Compensation | |||
Vesting period after Company match | 5 years | ||
Shares Deferred | |||
Outstanding, beginning of period (in shares) | 82,871 | 65,318 | |
Deferred base salaries and dividend equivalents converted to stock units | 10,646 | 9,389 | |
Matching stock units credited (in shares) | 10,578 | 9,315 | |
Matching stock units forfeited (in shares) | (2,753) | (1,151) | |
Stock units converted to Class A Common Shares | (5,084) | ||
Outstanding, end of period (in shares) | 96,258 | 82,871 | 65,318 |
Vested (in shares) | 59,626 | ||
Unvested (in shares) | 36,632 | ||
Weighted Average Market Price at Date of Deferral | |||
Outstanding, beginning of period (in dollars per share) | $ 41.03 | $ 40.57 | |
Deferred base salaries and dividend equivalents converted to stock units (in dollars per share) | 45.03 | 43.08 | |
Matching stock units credited (in dollars per share) | 44.90 | 43.08 | |
Matching stock units forfeited (in dollar per share) | 41.09 | 48.25 | |
Stock units converted to Class A Common Shares (in dollars per share) | 43.01 | ||
Outstanding, end of period (in dollars per share) | 42.17 | $ 41.03 | $ 40.57 |
Vested (in dollars per share) | 42.60 | ||
Unvested (in dollars per share) | $ 41.48 | ||
Weighted-Average Remaining Contractual Term (years) | |||
Outstanding, end of period | 2 years 10 months 2 days | 3 years 1 month 17 days | |
Vested (years) | 3 years 1 month 9 days | ||
Unvested (years) | 2 years 4 months 24 days | ||
Deferred compensation expense | $ 484 | $ 408 | $ 429 |
STOCK PLANS AND STOCK BASED C_6
STOCK PLANS AND STOCK BASED COMPENSATION - KEY- EMPLOYEE DEFERRED COMPENSATION EXPENSE (Details) - Key Employees - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation | |||
Key-employee - base salary | $ 484 | $ 408 | $ 429 |
Key-employee - employer match | 250 | 317 | 178 |
Total | $ 734 | $ 725 | $ 607 |
STOCK PLANS AND STOCK BASED C_7
STOCK PLANS AND STOCK BASED COMPENSATION - EMPLOYEE STOCK PURCHASE PLAN (Details) - ESPP - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Apr. 19, 2018 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ESPP expense | $ 111 | $ 104 | $ 104 | |||||||||||||
Class A Common Stock | ||||||||||||||||
Employee Stock purchase price | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | 85% | ||||
Minimum | Class A Common Stock | ||||||||||||||||
Employee Stock purchase price | 85% |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
401 (k) Plan | |||
BENEFIT PLANS | |||
Eligible compensation enrolled within 30-days of their date of hire | 6% | ||
Period within which all the eligible employees are automatically enrolled for compensation | 30 days | ||
Minimum percentage of annual eligible compensation by the participants | 1% | ||
Maximum percentage of annual eligible compensation by the participants | 75% | ||
Percentage of employers matching contribution for participant contributions up to 1% | 100% | ||
Percentage of additional employers matching contribution | 75% | ||
Vesting period | 2 years | ||
Supplemental Executive Retirement Plan | |||
Employer matching contributions | $ 3,136,000 | $ 3,096,000 | $ 3,373,000 |
Supplemental Employee Retirement Plan | |||
Supplemental Executive Retirement Plan | |||
Number of participants under SERP | employee | 4 | ||
SERP liability incurred | $ 2,000,000 | 2,000,000 | |
Employer matching contributions | $ 0 | $ 0 | $ 232,000 |
Minimum | 401 (k) Plan | |||
BENEFIT PLANS | |||
Percentage of participant contributions up to which employer matches additional 75% contribution | 2% | ||
Maximum | 401 (k) Plan | |||
BENEFIT PLANS | |||
Percentage of participant contributions up to which employer matches 100% contribution | 1% | ||
Percentage of participant contributions up to which employer matches additional 75% contribution | 5% |
INCOME TAXES - RECONCILIATION (
INCOME TAXES - RECONCILIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current expense: | |||
Federal | $ 22,015 | $ 24,537 | $ 19,348 |
State | 5,237 | 5,939 | 4,169 |
Deferred expense: | |||
Federal | (3,329) | (4,273) | (246) |
State | (1,084) | (464) | 560 |
Total income tax expense | $ 22,839 | $ 25,739 | $ 23,831 |
Effective tax rate that differs from that computed at the federal statutory rate | |||
Federal corporate tax rate | 21% | 21% | 21% |
Effect of: | |||
State taxes, net of federal benefit (as a percent) | 2.90% | 3.70% | 3.32% |
Low-income housing and R&D tax credits | (2.67%) | (1.88%) | (1.76%) |
Nontaxable income (as a percent) | (1.38%) | (1.00%) | (1.06%) |
Tax benefit of vesting employee benefits (as a percent) | (0.06%) | (0.01%) | (0.20%) |
Other, net (as a percent) | 0.38% | 0.22% | 0.08% |
Effective tax rate (as a percent) | 20.17% | 22.03% | 21.38% |
INCOME TAXES - DEFERRED TAXES A
INCOME TAXES - DEFERRED TAXES AND OPERATING LOSS CARRYFORWARD (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Allowance for credit losses | $ 20,654,000 | $ 17,427,000 |
Operating lease liabilities | 8,940,000 | 9,362,000 |
Accrued expenses | 6,285,000 | 5,901,000 |
Net operating loss carryforward | 1,191,000 | 1,371,000 |
Acquisition fair value adjustments | 55,000 | 101,000 |
Other-than-temporary impairment | 582,000 | 567,000 |
R&D Capitalization | 4,492,000 | 2,271,000 |
Unrealized investment security losses | 6,803,000 | 10,657,000 |
Other | 2,337,000 | 2,248,000 |
Total deferred tax assets | 51,339,000 | 49,905,000 |
Deferred tax liabilities: | ||
Right of use assets - operating leases | (8,726,000) | (9,166,000) |
Depreciation and amortization | (2,805,000) | (2,835,000) |
Federal Home Loan Bank dividends | (757,000) | (745,000) |
Deferred loan costs | (2,732,000) | (2,153,000) |
Lease Financing Receivables | (3,058,000) | (1,996,000) |
Mortgage servicing rights | (1,864,000) | (2,172,000) |
Total deferred tax liabilities | (19,942,000) | (19,067,000) |
Net deferred tax asset | 31,397,000 | $ 30,838,000 |
Domestic | ||
Net operating loss carry forward | ||
Net operating loss carry forward, amount | 5,100,000 | |
Annual limit of use of operating loss carryforward | 722,000 | |
State | ||
Net operating loss carry forward | ||
Net operating loss carry forward, amount | 2,600,000 | |
Annual limit of use of operating loss carryforward | 634,000 | |
AMT credit carryforwards | $ 15,000 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance, beginning of period | $ 2,866 | $ 2,191 | $ 1,941 |
Additions based on tax related to the current period | 280 | 950 | 433 |
Additions for tax positions of prior periods | 36 | 253 | |
Reductions due to the statute of limitations | (320) | (275) | (436) |
Balance, end of period | 2,862 | 2,866 | 2,191 |
Amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods | 2,400 | ||
Amount of interest and penalties | |||
Interest and penalties recorded in the income statement as a component of income tax expense | 314 | 72 | 267 |
Interest and penalties accrued on balance sheet | $ 1,163 | $ 849 | $ 777 |
INCOME TAXES - LOW INCOME HOUSI
INCOME TAXES - LOW INCOME HOUSING TAX INVESTMENTS AND OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investment | ||
Low income housing tax credit - Gross | $ 57,596 | $ 42,306 |
Life-to-date amortization | (15,904) | (10,591) |
Low income housing tax credit - Net | 41,692 | 31,715 |
Unfunded Obligations | ||
Low income housing tax credit - Gross | 58,619 | 43,609 |
Low income housing tax credit - Net | $ 58,619 | $ 43,609 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EARNINGS PER SHARE | |||
Net Income (Loss) | $ 90,374 | $ 91,106 | $ 87,611 |
Dividends declared on Common Stock: | |||
Undistributed net income for basic earnings per share | 61,439 | 64,305 | 62,725 |
Weighted average potential dividends on Class A shares upon exercise of dilutive options | (92) | (87) | (100) |
Undistributed net income for diluted earnings per share | $ 61,347 | $ 64,218 | $ 62,625 |
Weighted average shares outstanding: | |||
Effect of dilutive securities on Class A Shares outstanding | 61,000 | 64,000 | 82,000 |
Weighted average shares outstanding including dilutive securities | 19,853,000 | 20,101,000 | 20,757,000 |
Employee Stock Option [Member] | |||
Diluted earnings per share: | |||
Antidilutive stock options (in shares) | 149,169 | 178,000 | 144,000 |
Employee Stock Option [Member] | Weighted Average | |||
Diluted earnings per share: | |||
Antidilutive stock options (in shares) | 145,809 | 128,000 | 142,625 |
Class A Common Stock | |||
EARNINGS PER SHARE | |||
Cash dividend premium per share (as a percent) | 10% | ||
Dividends declared on Common Stock: | |||
Dividends declared on Common Stock | $ (26,002) | $ (24,122) | $ (22,451) |
Weighted average shares outstanding: | |||
Weighted average shares outstanding | 17,634,000 | 17,876,000 | 18,497,000 |
Basic earnings per share: | |||
Per share dividends distributed | $ 1.50 | $ 1.36 | $ 1.23 |
Undistributed earnings per share | 3.14 | 3.24 | 3.06 |
Total basic earnings per share | 4.64 | 4.60 | 4.29 |
Diluted earnings per share: | |||
Per share dividends distributed | 1.50 | 1.36 | 1.23 |
Undistributed earnings per share | 3.12 | 3.23 | 3.05 |
Total diluted earnings per share | $ 4.62 | $ 4.59 | $ 4.28 |
Class B Common Stock | |||
Dividends declared on Common Stock: | |||
Dividends declared on Common Stock | $ (2,933) | $ (2,679) | $ (2,435) |
Weighted average shares outstanding: | |||
Weighted average shares outstanding | 2,158,000 | 2,161,000 | 2,178,000 |
Basic earnings per share: | |||
Per share dividends distributed | $ 1.36 | $ 1.240 | $ 1.12 |
Undistributed earnings per share | 2.85 | 2.95 | 2.78 |
Total basic earnings per share | 4.21 | 4.19 | 3.90 |
Diluted earnings per share: | |||
Per share dividends distributed | 1.36 | 1.240 | 1.12 |
Undistributed earnings per share | 2.84 | 2.93 | 2.77 |
Total diluted earnings per share | $ 4.20 | $ 4.17 | $ 3.89 |
TRANSACTIONS WITH RELATED PAR_3
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES (Details) - Related Party [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans made to executive officers and directors of Republic and their related interests | ||
Beginning balance | $ 6,827,000 | |
Effect of changes in composition of related parties | 2,861,000 | |
New loans | 3,944,000 | |
Repayments | (2,687,000) | |
Ending balance | 10,945,000 | |
Executive officers, directors and affiliates | ||
Loans made to executive officers and directors of Republic and their related interests | ||
Deposits from executive officers, directors, and their affiliates | 117,000,000 | $ 126,000,000 |
RB&T | Bernard M. Trager | ||
Loans made to executive officers and directors of Republic and their related interests | ||
Total aggregate annual premiums paid to date on the insurance policies held in the trust | 690,000 | |
Cash surrender value of the policies | 2,000,000 | 2,000,000 |
Repayments of indebtedness due from beneficiaries, per terms of trust | 140,000 | $ 240,000 |
Net death benefit | $ 5,000,000 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Available-for-Sale Debt Securities: | |||
Unrealized gain (loss) on AFS debt securities | $ 15,380 | $ (45,109) | $ (8,908) |
Unrealized gain (loss) on AFS debt security for which a portion of OTTI has been recognized in earnings | 46 | (29) | 63 |
Total other comprehensive income (loss) before income tax | 15,426 | (45,138) | (8,845) |
Income tax benefit (expense) related to items of other comprehensive income | (3,855) | 11,285 | 2,210 |
Total other comprehensive income (loss), net of tax | $ 11,571 | $ (33,853) | $ (6,635) |
OTHER COMPREHENSIVE INCOME - RE
OTHER COMPREHENSIVE INCOME - RECLASSIFICATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant amounts reclassified out of each component of AOCI | |||
Net Income (Loss) | $ 90,374 | $ 91,106 | $ 87,611 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Significant amounts reclassified out of each component of AOCI | |||
Net Income (Loss) | $ 0 | $ 0 | $ 0 |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of the AOCI balances, net of tax | |||
Balance at beginning of period | $ 856,613 | $ 835,054 | $ 823,323 |
Current Year Change | 11,571 | (33,853) | (6,635) |
Balance at end of period | 912,756 | 856,613 | 835,054 |
Accumulated Other Comprehensive Income | |||
Summary of the AOCI balances, net of tax | |||
Balance at beginning of period | (31,979) | 1,874 | 8,509 |
Current Year Change | 11,571 | (33,853) | |
Balance at end of period | (20,408) | (31,979) | 1,874 |
Unrealized gain (loss) on AFS debt securities | |||
Summary of the AOCI balances, net of tax | |||
Balance at beginning of period | (32,934) | 890 | |
Current Year Change | 11,525 | (33,824) | |
Balance at end of period | (21,409) | (32,934) | 890 |
Unrealized gain 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 | 955 | 984 | |
Current Year Change | 46 | (29) | |
Balance at end of period | $ 1,001 | $ 955 | $ 984 |
PARENT COMPANY CONDENSED FINA_3
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Cash and cash equivalents | $ 316,567 | $ 313,689 | ||
Securities available for sale | 591,313 | 620,365 | ||
Total assets | 6,594,891 | 5,835,543 | $ 6,168,325 | |
Liabilities and Stockholders' Equity: | ||||
Other liabilities | 57,196 | 47,711 | ||
Total stockholders' equity | 912,756 | 856,613 | $ 835,054 | $ 823,323 |
Total liabilities and stockholders' equity | 6,594,891 | 5,835,543 | ||
Reportable Legal Entities | Parent | ||||
Assets: | ||||
Cash and cash equivalents | 37,778 | 36,436 | ||
Securities available for sale | 5,872 | 3,855 | ||
Investment in bank subsidiary | 875,503 | 819,144 | ||
Investment in non-bank subsidiaries | 2,773 | |||
Other assets | 2,598 | 2,465 | ||
Total assets | 921,751 | 864,673 | ||
Liabilities and Stockholders' Equity: | ||||
Other liabilities | 8,995 | 8,060 | ||
Total stockholders' equity | 912,756 | 856,613 | ||
Total liabilities and stockholders' equity | $ 921,751 | $ 864,673 |
PARENT COMPANY CONDENSED FINA_4
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income and expenses: | |||
Interest Income | $ 356,063 | $ 244,184 | $ 228,406 |
Less: Interest expense | 67,285 | 7,493 | 5,666 |
Less: Other expenses | 17,952 | 16,760 | 14,568 |
Income tax benefit | (22,839) | (25,739) | (23,831) |
Net income | 90,374 | 91,106 | 87,611 |
Comprehensive income | 101,945 | 57,253 | 80,976 |
Reportable Legal Entities | Parent | |||
Income and expenses: | |||
Dividends from subsidiary | 48,000 | 59,460 | 28,300 |
Interest Income | 429 | 229 | 143 |
Other income | (37) | 54 | 53 |
Less: Interest expense | 507 | ||
Less: Other expenses | 1,097 | 819 | 760 |
Income before income tax benefit | 47,295 | 58,924 | 27,229 |
Income tax benefit | 166 | 124 | 245 |
Income before equity in undistributed net income of subsidiaries | 47,461 | 59,048 | 27,474 |
Equity in undistributed net income of subsidiaries | 42,913 | 32,058 | 60,137 |
Net income | 90,374 | 91,106 | 87,611 |
Comprehensive income | $ 101,945 | $ 57,253 | $ 80,976 |
PARENT COMPANY CONDENSED FINA_5
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STATEMENTS OF CASH FLOWS | |||
Net income | $ 90,374 | $ 91,106 | $ 87,611 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of investment securities | 4,947 | 4,798 | 4,414 |
Change in other assets | (24,763) | (3,863) | (792) |
Change in other liabilities | (4,488) | 3,919 | (5,672) |
Net cash provided by operating activities | 108,531 | 154,789 | 100,253 |
Investing activities: | |||
Net cash used in investing activities | (516,951) | (254,509) | 306,553 |
Financing activities: | |||
Common Stock repurchases | (20,279) | (12,577) | (47,528) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 627 | 590 | 591 |
Net proceeds from Common Stock options exercised and equity awards vested | (2) | 52 | (142) |
Payoff of subordinated note, net of common security interest | (40,000) | ||
Cash dividends paid | (28,350) | (26,145) | (24,699) |
Net cash (used in) provided by financing activities | 411,298 | (343,562) | (135,422) |
Net change in cash and cash equivalents | 2,878 | (443,282) | 271,384 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 313,689 | 756,971 | 485,587 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 316,567 | 313,689 | 756,971 |
Reportable Legal Entities | Parent | |||
STATEMENTS OF CASH FLOWS | |||
Net income | 90,374 | 91,106 | 87,611 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of investment securities | (59) | (56) | (53) |
Equity in undistributed net income of subsidiaries | (42,913) | (32,058) | (60,137) |
Director deferred compensation | 769 | 427 | 347 |
Change in other assets | (1,639) | 4,571 | (736) |
Change in other liabilities | 3,973 | (5,428) | 1,694 |
Net cash provided by operating activities | 50,505 | 58,562 | 28,726 |
Investing activities: | |||
Investment in venture capital fund | (532) | (337) | |
Investment in subsidiary bank | (627) | (590) | (591) |
Net cash used in investing activities | (1,159) | (927) | (591) |
Financing activities: | |||
Common Stock repurchases | (20,279) | (12,577) | (47,528) |
Net proceeds from Class A Common Stock purchased through employee stock purchase plan | 627 | 590 | 591 |
Net proceeds from Common Stock options exercised and equity awards vested | (2) | 52 | (142) |
Payoff of subordinated note, net of common security interest | (40,000) | ||
Cash dividends paid | (28,350) | (26,145) | (24,699) |
Net cash (used in) provided by financing activities | (48,004) | (38,080) | (111,778) |
Net change in cash and cash equivalents | 1,342 | 19,555 | (83,643) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 36,436 | 16,881 | 100,524 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 37,778 | $ 36,436 | $ 16,881 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue recognition | |||
Net interest income | $ 288,778 | $ 236,691 | $ 222,740 |
Noninterest income: | |||
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Program fees | 15,582 | 16,172 | 14,237 |
Increase in cash surrender value of BOLI | 2,719 | 2,526 | 2,242 |
Death benefits in excess of cash surrender value of life insurance | 1,728 | 979 | |
Total noninterest income | 71,457 | 89,810 | 86,575 |
Total net revenue | $ 360,235 | $ 326,501 | $ 309,315 |
Net-revenue concentration (as percent) | 100% | 100% | 100% |
Writedowns during entity's holding of property (as a percent) | 10% | ||
Core Banking Activities | |||
Revenue recognition | |||
Net interest income | $ 204,245 | $ 185,791 | $ 183,548 |
Noninterest income: | |||
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Increase in cash surrender value of BOLI | 2,719 | 2,526 | 2,242 |
Death benefits in excess of cash surrender value of life insurance | 1,728 | ||
Total noninterest income | 39,545 | 38,030 | 51,734 |
Total net revenue | $ 243,790 | $ 223,821 | $ 235,282 |
Net-revenue concentration (as percent) | 68% | 69% | 76% |
Traditional Banking | |||
Revenue recognition | |||
Net interest income | $ 194,516 | $ 171,543 | $ 157,249 |
Noninterest income: | |||
Increase in cash surrender value of BOLI | 2,719 | 2,526 | 2,242 |
Death benefits in excess of cash surrender value of life insurance | 1,728 | ||
Total noninterest income | 35,885 | 31,648 | 31,492 |
Total net revenue | $ 230,401 | $ 203,191 | $ 188,741 |
Net-revenue concentration (as percent) | 64% | 63% | 61% |
Warehouse Lending | |||
Revenue recognition | |||
Net interest income | $ 9,447 | $ 13,729 | $ 25,218 |
Noninterest income: | |||
Total noninterest income | 44 | 50 | 57 |
Total net revenue | $ 9,491 | $ 13,779 | $ 25,275 |
Net-revenue concentration (as percent) | 3% | 4% | 8% |
Mortgage Banking | |||
Revenue recognition | |||
Net interest income | $ 282 | $ 519 | $ 1,081 |
Noninterest income: | |||
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Total noninterest income | 3,616 | 6,332 | 20,185 |
Total net revenue | $ 3,898 | $ 6,851 | $ 21,266 |
Net-revenue concentration (as percent) | 1% | 2% | 7% |
Republic Processing Group | |||
Revenue recognition | |||
Net interest income | $ 84,533 | $ 50,900 | $ 39,192 |
Noninterest income: | |||
Program fees | 15,582 | 16,172 | 14,237 |
Total noninterest income | 31,912 | 51,780 | 34,841 |
Total net revenue | $ 116,445 | $ 102,680 | $ 74,033 |
Net-revenue concentration (as percent) | 32% | 31% | 24% |
Tax Refund Solutions | |||
Revenue recognition | |||
Net interest income | $ 29,557 | $ 16,896 | $ 14,999 |
Noninterest income: | |||
Total noninterest income | 16,089 | 35,504 | 20,596 |
Total net revenue | $ 45,646 | $ 52,400 | $ 35,595 |
Net-revenue concentration (as percent) | 13% | 16% | 12% |
Republic Payment Solutions | |||
Revenue recognition | |||
Net interest income | $ 15,729 | $ 4,819 | $ 838 |
Noninterest income: | |||
Program fees | 2,827 | 2,872 | 3,171 |
Total noninterest income | 2,985 | 2,976 | 3,179 |
Total net revenue | $ 18,714 | $ 7,795 | $ 4,017 |
Net-revenue concentration (as percent) | 5% | 2% | 1% |
Republic Credit Solutions | |||
Revenue recognition | |||
Net interest income | $ 39,247 | $ 29,185 | $ 23,355 |
Noninterest income: | |||
Program fees | 12,755 | 13,300 | 11,066 |
Total noninterest income | 12,838 | 13,300 | 11,066 |
Total net revenue | $ 52,085 | $ 42,485 | $ 34,421 |
Net-revenue concentration (as percent) | 14% | 13% | 11% |
Service charges on deposit accounts | |||
Noninterest income: | |||
Revenue under 606 | $ 13,855 | $ 13,426 | $ 12,553 |
Service charges on deposit accounts | Core Banking Activities | |||
Noninterest income: | |||
Revenue under 606 | 13,854 | 13,438 | 12,563 |
Service charges on deposit accounts | Traditional Banking | |||
Noninterest income: | |||
Revenue under 606 | 13,810 | 13,388 | 12,506 |
Service charges on deposit accounts | Warehouse Lending | |||
Noninterest income: | |||
Revenue under 606 | 44 | 50 | 57 |
Service charges on deposit accounts | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 1 | (12) | (10) |
Service charges on deposit accounts | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | (12) | (10) | |
Service charges on deposit accounts | Republic Credit Solutions | |||
Noninterest income: | |||
Revenue under 606 | 1 | ||
Net refund transfer fees | |||
Noninterest income: | |||
Revenue under 606 | 15,748 | 17,080 | 20,248 |
Net refund transfer fees | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 15,748 | 17,080 | 20,248 |
Net refund transfer fees | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | 15,748 | 17,080 | 20,248 |
Interchange fee income | |||
Noninterest income: | |||
Revenue under 606 | 13,057 | 13,125 | 13,062 |
Interchange fee income | Core Banking Activities | |||
Noninterest income: | |||
Revenue under 606 | 12,926 | 12,943 | 12,777 |
Interchange fee income | Traditional Banking | |||
Noninterest income: | |||
Revenue under 606 | 12,926 | 12,943 | 12,777 |
Interchange fee income | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 131 | 182 | 285 |
Interchange fee income | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | 126 | 176 | 277 |
Interchange fee income | Republic Payment Solutions | |||
Noninterest income: | |||
Revenue under 606 | 4 | 6 | 8 |
Interchange fee income | Republic Credit Solutions | |||
Noninterest income: | |||
Revenue under 606 | 1 | ||
Net losses on other real estate owned | |||
Noninterest income: | |||
Revenue under 606 | (211) | (211) | (160) |
Net losses on other real estate owned | Core Banking Activities | |||
Noninterest income: | |||
Revenue under 606 | (211) | (211) | (160) |
Net losses on other real estate owned | Traditional Banking | |||
Noninterest income: | |||
Revenue under 606 | (211) | (211) | (160) |
Contract termination fee | |||
Noninterest income: | |||
Revenue under 606 | 5,000 | ||
Contract termination fee | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 5,000 | ||
Contract termination fee | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | 5,000 | ||
Legal settlement | |||
Noninterest income: | |||
Revenue under 606 | 13,000 | ||
Legal settlement | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 13,000 | ||
Legal settlement | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | 13,000 | ||
Other | |||
Noninterest income: | |||
Revenue under 606 | 5,437 | 3,496 | 3,420 |
Other | Core Banking Activities | |||
Noninterest income: | |||
Revenue under 606 | 4,987 | 3,138 | |
Other | Traditional Banking | |||
Noninterest income: | |||
Revenue under 606 | 4,913 | 3,002 | |
Other | Mortgage Banking | |||
Noninterest income: | |||
Revenue under 606 | 74 | 136 | |
Other | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 450 | 358 | |
Other | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | 215 | 260 | |
Other | Republic Payment Solutions | |||
Noninterest income: | |||
Revenue under 606 | 154 | $ 98 | |
Other | Republic Credit Solutions | |||
Noninterest income: | |||
Revenue under 606 | $ 81 | ||
Other | |||
Noninterest income: | |||
Revenue under 606 | 4,399 | ||
Other | Core Banking Activities | |||
Noninterest income: | |||
Revenue under 606 | 4,318 | ||
Other | Traditional Banking | |||
Noninterest income: | |||
Revenue under 606 | 4,127 | ||
Other | Mortgage Banking | |||
Noninterest income: | |||
Revenue under 606 | 191 | ||
Other | Republic Processing Group | |||
Noninterest income: | |||
Revenue under 606 | 81 | ||
Other | Tax Refund Solutions | |||
Noninterest income: | |||
Revenue under 606 | $ 81 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Disclosure information | |||
Number of reportable segments | segment | 6 | ||
Segment information | |||
Net interest income | $ 288,778 | $ 236,691 | $ 222,740 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 47,624 | 22,348 | 14,808 |
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Program fees | 15,582 | 16,172 | 14,237 |
Other noninterest income | 36,585 | 32,362 | 32,096 |
Total noninterest income | 71,457 | 89,810 | 86,575 |
Total noninterest expense | 199,398 | 187,308 | 183,065 |
INCOME BEFORE INCOME TAX EXPENSE | 113,213 | 116,845 | 111,442 |
Income tax expense (benefit) | 22,839 | 25,739 | 23,831 |
Net income | 90,374 | 91,106 | 87,611 |
Period-end assets | $ 6,594,891 | $ 5,835,543 | $ 6,168,325 |
Net interest margin (as percent) | 4.91% | 4.12% | 4.10% |
Net-revenue concentration (as percent) | 100% | 100% | 100% |
Core Banking Activities | |||
Segment Disclosure information | |||
Number of reportable segments | segment | 3 | ||
Segment information | |||
Net interest income | $ 204,245 | $ 185,791 | $ 183,548 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 8,536 | 312 | (319) |
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Other noninterest income | 36,003 | 31,834 | 31,740 |
Total noninterest income | 39,545 | 38,030 | 51,734 |
Total noninterest expense | 171,667 | 163,197 | 161,942 |
INCOME BEFORE INCOME TAX EXPENSE | 63,587 | 60,312 | 73,659 |
Income tax expense (benefit) | 12,131 | 12,970 | 14,607 |
Net income | 51,456 | 47,342 | 59,052 |
Period-end assets | $ 5,859,856 | $ 5,313,763 | $ 5,775,552 |
Net interest margin (as percent) | 3.61% | 3.32% | 3.39% |
Net-revenue concentration (as percent) | 68% | 69% | 76% |
Traditional Banking | |||
Segment information | |||
Net interest income | $ 194,516 | $ 171,543 | $ 157,249 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 8,698 | 1,429 | (38) |
Other noninterest income | 35,885 | 31,648 | 31,492 |
Total noninterest income | 35,885 | 31,648 | 31,492 |
Total noninterest expense | 160,101 | 149,681 | 145,376 |
INCOME BEFORE INCOME TAX EXPENSE | 61,602 | 52,081 | 21,467 |
Income tax expense (benefit) | 11,673 | 11,104 | 7,685 |
Net income | 49,929 | 40,977 | 13,782 |
Period-end assets | $ 5,504,886 | $ 4,894,773 | $ 4,717,836 |
Net interest margin (as percent) | 3.69% | 3.38% | 3.18% |
Net-revenue concentration (as percent) | 64% | 63% | 61% |
Warehouse Lending | |||
Segment information | |||
Net interest income | $ 9,447 | $ 13,729 | $ 25,218 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | (162) | (1,117) | (281) |
Other noninterest income | 44 | 50 | 57 |
Total noninterest income | 44 | 50 | 57 |
Total noninterest expense | 3,547 | 3,604 | 4,210 |
INCOME BEFORE INCOME TAX EXPENSE | 6,106 | 11,292 | 20,981 |
Income tax expense (benefit) | 1,365 | 2,539 | 4,962 |
Net income | 4,741 | 8,753 | 16,019 |
Period-end assets | $ 340,224 | $ 405,052 | $ 850,703 |
Net interest margin (as percent) | 2.38% | 2.69% | 3.37% |
Net-revenue concentration (as percent) | 3% | 4% | 8% |
Mortgage Banking | |||
Segment information | |||
Net interest income | $ 282 | $ 519 | $ 1,081 |
Mortgage banking income | 3,542 | 6,196 | 19,994 |
Other noninterest income | 74 | 136 | 191 |
Total noninterest income | 3,616 | 6,332 | 20,185 |
Total noninterest expense | 8,019 | 9,912 | 12,356 |
INCOME BEFORE INCOME TAX EXPENSE | (4,121) | (3,061) | 22,552 |
Income tax expense (benefit) | (907) | (673) | 1,960 |
Net income | (3,214) | (2,388) | 20,592 |
Period-end assets | $ 14,746 | $ 13,938 | $ 43,929 |
Net interest margin (as percent) | 4.19% | 4.01% | |
Net-revenue concentration (as percent) | 1% | 2% | 7% |
Republic Processing Group | |||
Segment Disclosure information | |||
Number of reportable segments | segment | 3 | ||
Segment information | |||
Net interest income | $ 84,533 | $ 50,900 | $ 39,192 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 39,088 | 22,036 | 15,127 |
Program fees | 15,582 | 16,172 | 14,237 |
Other noninterest income | 582 | 528 | 356 |
Total noninterest income | 31,912 | 51,780 | 34,841 |
Total noninterest expense | 27,731 | 24,111 | 21,123 |
INCOME BEFORE INCOME TAX EXPENSE | 49,626 | 56,533 | 39,176 |
Income tax expense (benefit) | 10,708 | 12,769 | 9,224 |
Net income | 38,918 | 43,764 | 29,952 |
Period-end assets | $ 735,035 | $ 521,780 | $ 392,773 |
Net-revenue concentration (as percent) | 32% | 31% | 24% |
Tax Refund Solutions | |||
Segment information | |||
Net interest income | $ 29,557 | $ 16,896 | $ 14,999 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 22,559 | 9,955 | 6,683 |
Other noninterest income | 341 | 424 | 348 |
Total noninterest income | 16,089 | 35,504 | 20,596 |
Total noninterest expense | 12,035 | 12,377 | 13,611 |
INCOME BEFORE INCOME TAX EXPENSE | 11,052 | 30,068 | 15,301 |
Income tax expense (benefit) | 2,196 | 6,905 | 3,685 |
Net income | 8,856 | 23,163 | 11,616 |
Period-end assets | $ 228,738 | $ 46,192 | $ 371,647 |
Net-revenue concentration (as percent) | 13% | 16% | 12% |
Republic Payment Solutions | |||
Segment information | |||
Net interest income | $ 15,729 | $ 4,819 | $ 838 |
Program fees | 2,827 | 2,872 | 3,171 |
Other noninterest income | 158 | 104 | 8 |
Total noninterest income | 2,985 | 2,976 | 3,179 |
Total noninterest expense | 3,710 | 3,340 | 2,733 |
INCOME BEFORE INCOME TAX EXPENSE | 15,004 | 4,455 | 1,284 |
Income tax expense (benefit) | 3,307 | 942 | 279 |
Net income | 11,697 | 3,513 | 1,005 |
Period-end assets | $ 366,117 | $ 363,067 | $ 371,647 |
Net interest margin (as percent) | 4.59% | 1.37% | |
Net-revenue concentration (as percent) | 5% | 2% | 1% |
Republic Credit Solutions | |||
Segment information | |||
Net interest income | $ 39,247 | $ 29,185 | $ 23,355 |
Provision for expected credit loss expense for on-balance sheet exposures (loans and investment securities) | 16,529 | 12,081 | 8,444 |
Program fees | 12,755 | 13,300 | 11,066 |
Other noninterest income | 83 | ||
Total noninterest income | 12,838 | 13,300 | 11,066 |
Total noninterest expense | 11,986 | 8,394 | 4,779 |
INCOME BEFORE INCOME TAX EXPENSE | 23,570 | 22,010 | 22,591 |
Income tax expense (benefit) | 5,205 | 4,922 | 5,260 |
Net income | 18,365 | 17,088 | 17,331 |
Period-end assets | $ 140,180 | $ 112,521 | $ 109,517 |
Net-revenue concentration (as percent) | 14% | 13% | 11% |
Net refund transfer fees | |||
Segment information | |||
Revenue under 606 | $ 15,748 | $ 17,080 | $ 20,248 |
Net refund transfer fees | Republic Processing Group | |||
Segment information | |||
Revenue under 606 | 15,748 | 17,080 | 20,248 |
Net refund transfer fees | Tax Refund Solutions | |||
Segment information | |||
Revenue under 606 | $ 15,748 | 17,080 | $ 20,248 |
Contract termination fee | |||
Segment information | |||
Revenue under 606 | 5,000 | ||
Contract termination fee | Republic Processing Group | |||
Segment information | |||
Revenue under 606 | 5,000 | ||
Contract termination fee | Tax Refund Solutions | |||
Segment information | |||
Revenue under 606 | 5,000 | ||
Legal settlement | |||
Segment information | |||
Revenue under 606 | 13,000 | ||
Legal settlement | Republic Processing Group | |||
Segment information | |||
Revenue under 606 | 13,000 | ||
Legal settlement | Tax Refund Solutions | |||
Segment information | |||
Revenue under 606 | $ 13,000 |
ACQUISITION OF CBANK (Details)
ACQUISITION OF CBANK (Details) $ in Thousands | Mar. 15, 2023 USD ($) |
CBank | |
Business Acquisition [Line Items] | |
Cash payment for acquisition | $ 51,000 |
ACQUISITION OF CBANK - ASSETS A
ACQUISITION OF CBANK - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Thousands | Mar. 15, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||||
Cash and cash equivalents | $ 316,567 | $ 313,689 | |||
Loans | 5,239,861 | 4,515,802 | |||
Allowance for credit losses | (82,130) | (70,413) | $ (64,577) | $ (61,067) | |
Total loans, net | 5,157,731 | 4,445,389 | |||
Goodwill | 40,516 | 16,300 | 16,300 | 16,300 | |
Core deposit intangible | 7,411 | ||||
Premises and equipment, net | 33,411 | 31,978 | |||
Other assets and accrued interest receivable | 112,755 | 76,393 | |||
Total assets | 6,594,891 | 5,835,543 | 6,168,325 | ||
Deposits: | |||||
Noninterest-bearing | 1,676,998 | 1,908,768 | |||
Interest-bearing | 3,376,165 | 2,629,077 | |||
Total deposits | 5,053,163 | 4,537,845 | |||
Other liabilities and accrued interest payable | 57,196 | 47,711 | |||
Total liabilities | 5,682,135 | 4,978,930 | |||
Assets acquired: | |||||
Goodwill | 40,516 | 16,300 | 16,300 | 16,300 | |
Liabilities assumed: | |||||
Goodwill | $ 40,516 | $ 16,300 | $ 16,300 | $ 16,300 | |
CBank | |||||
ASSETS | |||||
Cash and cash equivalents | $ 10,030 | ||||
Investment securities | 16,463 | ||||
Loans | 221,707 | ||||
Allowance for credit losses | (2,953) | ||||
Total loans, net | 218,754 | ||||
Goodwill | 954 | ||||
Premises and equipment, net | 162 | ||||
Other assets and accrued interest receivable | 7,067 | ||||
Total assets | 253,430 | ||||
Deposits: | |||||
Noninterest-bearing | 42,160 | ||||
Interest-bearing | 179,487 | ||||
Total deposits | 221,647 | ||||
Other liabilities and accrued interest payable | 4,709 | ||||
Total liabilities | 226,356 | ||||
Net assets acquired | 27,074 | ||||
Assets acquired: | |||||
Goodwill | 954 | ||||
Liabilities assumed: | |||||
Goodwill | 954 | ||||
CBank | Fair Value Adjustments | |||||
Fair Value Adjustments | |||||
Fair value adjustments, Investment securities | (4) | ||||
Fair value adjustments, Loans | (4,219) | ||||
Fair value adjustments, Allowance for loan and lease losses | 1,353 | ||||
Fair value adjustments, Loans, net | (2,866) | ||||
Fair value adjustments, Goodwill | (954) | ||||
Fair value adjustments, Core deposit intangible | 2,844 | ||||
Fair value adjustments, Premises and equipment, net | 35 | ||||
Fair value adjustments, Other assets and accrued interest receivable | (320) | ||||
Fair value adjustments, Total assets acquired | (1,265) | ||||
Fair value adjustments, Interest-bearing | 31 | ||||
Fair value adjustments, Total deposits | 31 | ||||
Fair value adjustments, Other liabilities and accrued interest payable | 96 | ||||
Fair value adjustments, Total liabilities assumed | 127 | ||||
Fair value adjustments, Net assets acquired | (1,392) | ||||
CBank | |||||
ASSETS | |||||
Goodwill | 24,216 | ||||
Assets acquired: | |||||
Cash and cash equivalents | 10,030 | ||||
Investment securities | 16,394 | ||||
Loans | 217,338 | ||||
Allowance for loan and lease losses | (209) | ||||
Loans, net | 217,129 | ||||
Goodwill | 24,216 | ||||
Core deposit intangible | 2,844 | ||||
Premises and equipment, net | 173 | ||||
Other assets and accrued interest receivable | 6,747 | ||||
Total assets acquired | 253,317 | ||||
Liabilities assumed: | |||||
Noninterest-bearing | 42,160 | ||||
Interest-bearing | 179,518 | ||||
Total deposits | 221,678 | ||||
Other liabilities and accrued interest payable | 4,855 | ||||
Total liabilities assumed | 226,533 | ||||
Net assets acquired | 26,784 | ||||
Cash consideration paid | (51,000) | ||||
Goodwill | 24,216 | ||||
CBank | Recast Adjustments | |||||
Fair Value Adjustments | |||||
Fair value adjustments, Investment securities | (65) | ||||
Fair value adjustments, Loans | (150) | ||||
Fair value adjustments, Allowance for loan and lease losses | 1,391 | ||||
Fair value adjustments, Loans, net | 1,241 | ||||
Fair value adjustments, Premises and equipment, net | (24) | ||||
Fair value adjustments, Total assets acquired | 1,152 | ||||
Fair value adjustments, Other liabilities and accrued interest payable | 50 | ||||
Fair value adjustments, Total liabilities assumed | 50 | ||||
Fair value adjustments, Net assets acquired | $ 1,102 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 90,374 | $ 91,106 | $ 87,611 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |